United Insurance(ACIC) - 2024 Q2 - Quarterly Report

Financial Performance - Gross premiums written for Q2 2024 were $229.449 million, a decrease from$236.822 million in Q2 2023, representing a decline of 5.8%[150] - Net premiums earned for Q2 2024 were $63.381 million, down from$78.014 million in Q2 2023, reflecting a decrease of 18.8%[150] - Total revenues for Q2 2024 were $68.656 million, compared to$73.542 million in Q2 2023, indicating a decline of 6.4%[150] - Income from continuing operations for Q2 2024 was $19.073 million, down from$21.244 million in Q2 2023, a decrease of 10.2%[150] - Consolidated net income for Q2 2024 was $19.054 million, compared to$17.779 million in Q2 2023, an increase of 7.2%[150] - Core income for Q2 2024 was $19.611 million, down from$27.073 million in Q2 2023, a decrease of 27.6%[150] - Total revenue for the three months ended June 30, 2024, was $68,656,000, down from$73,542,000 in the prior year, representing a decline of about 12.7%[152] - Net income from continuing operations for the three months ended June 30, 2024, was $19,073,000, compared to$21,244,000 in the same period of 2023, a decline of about 10.2%[152] - Net income for the three months ended June 30, 2024 increased by $1,275,000, or 7.2$19,054,000 from $17,779,000 for the same period in 2023[199] Policy and Operations - Policies in-force decreased by 5.4$572,580,000 at June 30, 2024, an increase from $311,874,000 at December 31, 2023[162] - As of June 30, 2024, total investments amounted to$310,991 million, representing 54.3% of total assets, compared to $154,874 million or 49.5$155,733 million, or 27.2% of total investments as of June 30, 2024, up from $26,002 million or 8.3$264,446 million, representing 46.2% of total assets, compared to $138,387 million or 44.2$15,429,000[227] Reinsurance and Loss Ratios - The loss ratio, net for the three months ended June 30, 2024, was 24.1%, compared to 20.8% for the same period in 2023[152] - The combined ratio for the three months ended June 30, 2024, was 64.9%, compared to 63.1% in the prior year[152] - The underlying combined ratio for the three months ended June 30, 2024, was 66.4%, compared to 62.0% for the same period in 2023[152] - Reinsurance costs as a percentage of gross earned premium for the three months ended June 30, 2024, totaled 59.3%, compared to 47.9% in the same period of 2023[172] - The total ceding ratio for the six months ended June 30, 2024, was 60.1%, up from 43.6% in 2023, indicating increased reliance on reinsurance[172] Cash Flow and Financing - During the six months ended June 30, 2024, cash inflows from operating activities totaled $250,886,000, compared to cash outflows of$232,823,000 in the same period of 2023[223] - Cash provided by financing activities in the first half of 2024 amounted to $11,458,000, attributed to proceeds from the issuance of common stock[225] - The company made capital contributions of$1,265,000 to its reinsurance subsidiary, UPC Re, during the six months ended June 30, 2024[218] Expenses and Cost Management - Total expenses for the three months ended June 30, 2024, were $44,580,000, compared to$51,950,000 for the same period in 2023, a decrease of approximately 14.2%[152] - Expenses attributable to IIC for the three months ended June 30, 2024, increased by $1,210,000, or 17.1$8,296,000 from $7,086,000 for the same period in 2023[187] - General and administrative expenses increased by$3,788,000, or 25.2%, to $18,813,000 for the six months ended June 30, 2024 from$15,025,000 for the same period in 2023[215] - Policy acquisition costs attributable to IIC increased by $357,000, or 9.3$4,182,000 for the six months ended June 30, 2024 from $3,825,000 for the same period in 2023[197] Market Risks - The company is exposed to market risks, including interest rate risk, credit risk, and equity price risk, as disclosed in its Annual Report[227] - The commission for the equity distribution agreement is set at 3.0% of the gross proceeds from the sales of the shares[219]