Financial Performance - Gross premiums written increased by 9.7% year-over-year to $140,739,000 in Q4 2024, while total revenue rose by 54.7% to $79,267,000[4]. - Net premiums earned surged by 49.6% to $73,492,000 in Q4 2024, contributing to a total of $273,990,000 for the year, a 4.6% increase from 2023[4]. - The company reported a consolidated net income of $4,946,000 for Q4 2024, a decrease of 65.4% compared to $14,284,000 in Q4 2023[4]. - Net income for Q4 2024 was $4.9 million, or $0.10 per diluted share, down from $14.3 million, or $0.31 per diluted share in Q4 2023[16]. - Total revenues for the year ended December 31, 2024, reached $296.657 million, an increase of 12.2% from $264.400 million in 2023[51]. - Total comprehensive income for the year ended December 31, 2024, was $79.197 million, down from $322.717 million in 2023, a decrease of 75.7%[51]. Ratios and Efficiency - The combined ratio for Q4 2024 was 91.9%, reflecting a significant increase from 59.9% in Q4 2023, with a full-year combined ratio of 67.5%[6][10]. - The return on equity based on GAAP net income was 8.7% for Q4 2024, down from 81.0% in Q4 2023[8]. - The loss ratio for Q4 2024 was 40.5%, up from 13.7% in Q4 2023, while the expense ratio increased to 51.4% from 46.2%[10]. Expenses - Policy acquisition costs rose by $13.4 million, or 102.3%, to $26.5 million in Q4 2024, primarily due to a decrease in reinsurance commission income[19]. - General and administrative expenses increased by $1.7 million, or 17.7%, to $11.3 million in Q4 2024, driven by higher overhead costs[20]. - General and administrative expenses increased by $7.2 million, or 19.1%, to $44.8 million for the year ended December 31, 2024, driven by increased overhead costs[26]. Assets and Liabilities - Total assets increased to $1,216.112 million as of December 31, 2024, compared to $1,062.378 million in 2023, indicating a growth of 14.5%[53]. - Total liabilities rose to $980.452 million in 2024, up from $893.613 million in 2023, representing an increase of 9.7%[53]. Shareholder Information - Book value per share increased by 35.5% to $4.89 compared to $3.61 in the previous year[4]. - The total shares outstanding increased from 46,777,006 in 2023 to 48,204,962 in 2024, impacting the book value calculations[33]. - The company declared a dividend of $0.50 per share in Q4 2024, consistent with the previous year[51]. Investment and Cash Flow - The company's cash, restricted cash, and investment holdings increased from $311.9 million at December 31, 2023, to $540.8 million at December 31, 2024, driven by positive cash flows from operations[30]. - Fixed maturities represented approximately 82.3% of total investments at December 31, 2024, down from 89.4% at December 31, 2023, indicating a shift in investment strategy[30]. - The company's investment portfolio had a modified duration of 2.2 years at December 31, 2024, compared to 3.4 years at December 31, 2023, reflecting changes in interest rate sensitivity[30]. Operational Developments - The company launched an apartment program in December 2024, receiving hundreds of high-quality submissions, indicating strong demand for its products[7]. - The company plans to reduce its quota share reinsurance coverage from 40% to 20% effective June 1, 2024, which will lower the overall ceding ratio[28]. - The company entered into a Sale Agreement to sell its subsidiary, IIC, to Forza Insurance Holdings, with the transaction expected to close on April 1, 2025[46].
United Insurance(ACIC) - 2024 Q4 - Annual Results