United Insurance(ACIC) - 2023 Q2 - Quarterly Report

Financial Performance - Gross premiums written for Q2 2023 were $243.885 million, up from$ 207.632 million in Q2 2022, representing an increase of 17.4%[195] - Net premiums earned for Q2 2023 were $83.169 million, compared to$ 64.532 million in Q2 2022, reflecting a growth of 28.8%[195] - Total revenues for Q2 2023 reached $79.295 million, an increase from$ 63.910 million in Q2 2022, marking a rise of 24.0%[195] - Earnings from continuing operations for Q2 2023 were $20.352 million, a significant recovery from a loss of$ 13.311 million in Q2 2022[195] - Core income for Q2 2023 was $26.192 million, compared to a loss of$ 10.693 million in Q2 2022, indicating a turnaround in financial performance[195] - Net income from continuing operations for Q2 2023 was $20.352 million, a significant recovery from a loss of$ 13.311 million in Q2 2022[196] - Net earnings attributable to American Coastal Insurance Corporation for Q2 2023 increased by $86,808,000, or 125.8%, to$ 17,779,000 from a net loss of $69,029,000 in Q2 2022[231] - Net earnings for the six months ended June 30, 2023 increased by$ 387,260,000, or 378.9%, to $285,059,000 from a net loss of$ 102,201,000 for the same period in 2022[258] Premiums and Policies - The number of policies in-force decreased by 49.0%, from 46,401 at June 30, 2022, to 23,664 at June 30, 2023, due to the receivership of the former subsidiary UPC[192] - The company is seeking a buyer for Interboro Insurance Company (IIC) to exit the personal lines business, expecting the sale price to match the book value of the entity[193] - Gross written premiums rose by $36,253,000, or 17.5%, to$ 243,885,000 in Q2 2023 compared to $207,632,000 in Q2 2022, primarily driven by an increase in commercial premiums written[232] - Direct written premium by state for Florida increased by$ 57,578,000 to $236,766,000 in Q2 2023 from$ 179,188,000 in Q2 2022[233] - Total new and renewal policies decreased by 6,942, from 12,962 in June 2022 to 6,020 in June 2023[234] - Gross written premiums for the six months ended June 30, 2023 increased by $80,962,000, or 23.1%, to$ 431,008,000 from $350,046,000 in the same period in 2022[259] Expenses and Losses - Expenses increased by$ 7,043,000, or 13.5%, to $59,036,000 for the three months ended June 30, 2023, compared to$ 51,993,000 for the same period in 2022[235] - Loss and LAE increased by $6,883,000, or 49.1%, to$ 20,915,000 for the second quarter of 2023, with a net earned premium loss ratio of 25.1%, up 3.4 points from 21.7% in 2022[236] - Catastrophe losses incurred in Q2 2023 totaled $6,540,000, impacting the combined ratio by 7.9%, compared to a loss of$ (2,113,000) and a combined ratio impact of (3.3)% in Q2 2022[223] - Unpaid losses and loss adjustment expenses (LAE) totaled $534,676,000 as of June 30, 2023, down from$ 842,958,000 as of December 31, 2022[227] - Loss and LAE for personal lines decreased by $1,168,000, or 20.0%, to$ 4,670,000 in Q2 2023 from $5,838,000 in Q2 2022[255] - Loss and LAE expenses decreased by$ 10,858,000, or 60.2%, to $7,181,000 for the six months ended June 30, 2023, compared to$ 18,039,000 for the same period in 2022[282] Investment and Cash Flow - Cash, cash equivalents, and investment portfolio totaled $241.714 million at June 30, 2023, down from$ 340.905 million at December 31, 2022[206] - The company reported net investment income of $2.692 million in Q2 2023, up from$ 1.839 million in Q2 2022, a growth of 46.5%[196] - Cash outflows from operating activities totaled $232,823,000 for the six months ended June 30, 2023, compared to cash inflows of$ 8,286,000 during the same period in 2022[292] - Net sales of investments amounted to $258,736,000 for the six months ended June 30, 2023, compared to$ 83,661,000 during the same period in 2022[293] Reinsurance and Ceding Ratios - The company entered into a quota share reinsurance agreement with TypTap Insurance Company, ceding 100% of UPC's in-force policies in Georgia, North Carolina, and South Carolina effective June 1, 2022[189] - The total ceding ratio for the three months ended June 30, 2023, was 47.4%, a decrease from 50.2% in the same period of 2022[216] - For personal lines, the total ceding ratio for the three months ended June 30, 2023, was 25.9%, compared to 19.6% in 2022[218] - Ceded premiums written for the three months ended June 30, 2023, totaled $339,004 million, up from$ 191,712 million in the same period of 2022[220] Segment Performance - Pretax earnings for the commercial lines segment increased by $6,595,000, or 35.1%, to$ 25,381,000 for the second quarter of 2023[239] - Gross written premiums for the commercial lines segment increased by $55,755,000, or 30.8%, to$ 236,822,000 for the second quarter of 2023[240] - Total expenses for the commercial lines segment increased by $12,233,000, or 38.6%, to$ 43,903,000 for the second quarter of 2023[244] - Pretax earnings for the personal lines operating segment improved by $11,839,000, or 78.5%, resulting in a pre-tax loss of$ 3,243,000 for the six months ended June 30, 2023, compared to a loss of $15,082,000 in the same period of 2022[276] - Gross written premiums for the personal lines segment decreased by$ 23,470,000, or 57.2%, to $17,545,000 for the six months ended June 30, 2023, down from$ 41,015,000 in the same period of 2022[277]