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United Insurance(ACIC) - 2023 Q4 - Annual Results
ACICUnited Insurance(ACIC)2024-02-29 21:03

Premiums and Revenues - Gross premiums written increased by 13.4% to 135.2millioninQ42023,andby17.1135.2 million in Q4 2023, and by 17.1% to 670.0 million for the full year[2]. - Net premiums earned decreased by 27.7% to 55.6millioninQ42023,butincreasedby4.755.6 million in Q4 2023, but increased by 4.7% to 281.9 million for the full year[2]. - Total revenues for Q4 2023 were 58.2million,down22.158.2 million, down 22.1% year-over-year, while full-year revenues increased by 6.2% to 286.5 million[2]. - Total gross written premium increased by 16.0million,or13.416.0 million, or 13.4%, to 135.2 million in Q4 2023 from 119.1millioninQ42022,drivenbypersonallinesandafocusonspecialtycommerciallines[17].−Totalgrosswrittenpremiumincreasedby119.1 million in Q4 2022, driven by personal lines and a focus on specialty commercial lines[17]. - Total gross written premium increased by 97.7 million, or 17.1%, to 670.0millionfortheyearendedDecember31,2023,comparedto670.0 million for the year ended December 31, 2023, compared to 572.3 million for the year ended December 31, 2022[26]. Income and Earnings - Consolidated net income attributable to ACIC was 14.3millioninQ42023,asignificantrecoveryfromalossof14.3 million in Q4 2023, a significant recovery from a loss of 296.8 million in Q4 2022[2]. - Core earnings for Q4 2023 were 17.7million,leadingtoanannualizedcorereturnonequityof100.617.7 million, leading to an annualized core return on equity of 100.6%[4]. - Core income per diluted share for the full year was 2.02, compared to a loss of 0.53inthepreviousyear[2].−Thecompany′snetincomeforQ42023was0.53 in the previous year[2]. - The company's net income for Q4 2023 was 14.3 million, or 0.31perdilutedshare,comparedtoanetlossof0.31 per diluted share, compared to a net loss of 296.8 million, or 6.89perdilutedshare,inQ42022[16].−Thecompanyreportedabasicearningspershareof6.89 per diluted share, in Q4 2022[16]. - The company reported a basic earnings per share of 0.32 for total operations, compared to a loss of 6.89in2022[54].LossRatiosandCombinedRatios−Theunderlyingcombinedratioforcommerciallineswas50.96.89 in 2022[54]. Loss Ratios and Combined Ratios - The underlying combined ratio for commercial lines was 50.9%, while the consolidated combined ratio was 67.2%[4]. - The combined ratio (CR) improved to 47.1% in Q4 2023 from 89.5% in Q4 2022, a change of (42.4) points[10]. - The loss ratio, net, decreased to 21.2% in Q4 2023 from 54.3% in Q4 2022, a reduction of (33.1) points[10]. - The underlying combined ratio was 50.9% in Q4 2023, compared to 68.4% in Q4 2022, a decrease of (17.5) points[10]. - Catastrophe losses on the combined ratio were (0.8)% in Q4 2023, compared to 25.0% in Q4 2022, a change of (25.8) points[10]. Expenses and Costs - Total expenses decreased significantly to 39,699, down 52% from 82,635in2022[54].−Policyacquisitioncostsdecreasedto82,635 in 2022[54]. - Policy acquisition costs decreased to 15.2 million in Q4 2023 from 25.4millioninQ42022,areductionof25.4 million in Q4 2022, a reduction of 10.2 million[14]. - Policy acquisition costs decreased by 12.0million,or12.612.0 million, or 12.6%, to 83.3 million for the year ended December 31, 2023, from 95.3millionfortheyearendedDecember31,2022[29].−Generalandadministrativeexpensesdecreasedby95.3 million for the year ended December 31, 2022[29]. - General and administrative expenses decreased by 12.8 million, or 30.3%, to 29.5millionfortheyearendedDecember31,2023,from29.5 million for the year ended December 31, 2023, from 42.3 million for the year ended December 31, 2022[30]. Assets and Equity - Book value per share increased to 3.61,reflectinga185.73.61, reflecting a 185.7% improvement year-over-year[2]. - Book value per common share increased 185.8% from (4.21) at December 31, 2022, to 3.61atDecember31,2023[38].−Commonstockholders′equityattributabletoACICwas3.61 at December 31, 2023[38]. - Common stockholders' equity attributable to ACIC was 168,765 thousand at December 31, 2023, compared to (182,039)thousandatDecember31,2022[39].−TheCompany′scashandinvestmentholdingsincreasedfrom(182,039) thousand at December 31, 2022[39]. - The Company's cash and investment holdings increased from 340.9 million at December 31, 2022, to 369.0millionatDecember31,2023[37].−Stockholders′equityimprovedto369.0 million at December 31, 2023[37]. - Stockholders' equity improved to 168,765 from a deficit of 182,039in2022,reflectingapositiveshiftinfinancialhealth[56].DiscontinuedOperations−Incomefromdiscontinuedoperationsimprovedsignificantly,withanetincomeof182,039 in 2022, reflecting a positive shift in financial health[56]. Discontinued Operations - Income from discontinued operations improved significantly, with a net income of 227.7 million for the full year compared to a loss of 429.9millioninthepreviousyear[2].−Thecompanyrecognizedlossesfromdiscontinuedoperationsof429.9 million in the previous year[2]. - The company recognized losses from discontinued operations of 2.8 million related to the deconsolidation of United Property & Casualty Insurance Company[16]. - The Company recorded a gain on disposal of its former subsidiary UPC totaling $238.4 million, contributing to income from discontinued operations for the year[25]. Other Notable Information - The company has an exclusive partnership for distribution of Condominium Association properties in Florida with AmRisc Group[42]. - The company earned a Financial Stability Rating of 'A, Exceptional' from Demotech[42]. - The conference call is scheduled for February 29, 2024, at 5:00 P.M. ET[41]. - The company emphasizes the importance of non-GAAP measures for understanding performance, including core income and underlying combined ratio[44][46][47].