Financial Performance - Gross premiums written increased by $13.3 million, or 7.2%, to $197.9 million for the quarter ended March 31, 2025, compared to $184.6 million for the same period in 2024[14]. - Net premiums earned rose by $5.6 million, or 9.0%, to $68.3 million for the quarter ended March 31, 2025, from $62.6 million in the prior year[4]. - Total revenue increased by $5.6 million, or 8.4%, to $72.2 million for the first quarter of 2025, compared to $66.6 million for the same quarter in 2024[4]. - Consolidated net income decreased by $2.3 million, or 9.5%, to $21.3 million for the quarter ended March 31, 2025, down from $23.6 million in the previous year[4]. - Core income decreased by $3.7 million, or 15.3%, to $20.7 million for the quarter ended March 31, 2025, compared to $24.4 million for the same period in 2024[4]. - Total expenses increased to $47,078,000 for the quarter, compared to $36,040,000 in the same period of 2024, reflecting a rise of 30.6%[39]. - Net income for the quarter ended March 31, 2025, was $21,348,000, compared to $23,599,000 for the same period in 2024, reflecting a decrease of 9.5%[39]. Ratios and Metrics - The combined ratio for the first quarter of 2025 was 65.0%, an increase of 11.8 percentage points from 53.2% in the same quarter of 2024[9]. - The return on equity based on GAAP net income was 35.4% for the first quarter of 2025, down from 67.7% in the same quarter of 2024[7]. - Book value per common share increased by 10.4% from $4.89 at December 31, 2024, to $5.40 at March 31, 2025[21]. - Underlying book value per common share rose by 8.8% from $5.21 at December 31, 2024, to $5.67 at March 31, 2025[22]. - The weighted average shares outstanding increased to 48,135,231 for the quarter, compared to 47,323,356 in the same quarter of 2024[39]. Expenses and Costs - Policy acquisition costs surged by $13.9 million, or 144.8%, to $23.5 million for the quarter ended March 31, 2025, primarily due to a decrease in ceding commission income[16]. - General and administrative expenses decreased by $1.8 million, or 15.9%, to $9.5 million for the quarter ended March 31, 2025, from $11.3 million in the prior year[17]. Cash and Investments - The company's cash and investment holdings increased from $540.8 million at December 31, 2024, to $568.8 million at March 31, 2025, driven by positive cash flows from operations[20]. - Cash and cash equivalents rose from $137,036 million to $167,155 million, an increase of about 22%[41]. - Total investments decreased from $341,418 million to $335,787 million, a decline of about 1.8%[41]. Assets and Liabilities - Total assets decreased from $1,216,112 million to $1,159,646 million, a decline of approximately 4.7%[41]. - Total liabilities decreased from $980,452 million to $898,766 million, a reduction of about 8.3%[41]. - Stockholders' equity increased from $235,660 million to $260,880 million, reflecting an increase of approximately 10.7%[41]. - Premiums receivable, net increased from $46,564 million to $61,749 million, a growth of approximately 32.5%[41]. - Reinsurance recoverable on paid and unpaid losses decreased from $263,419 million to $202,391 million, a decline of about 23.2%[41]. - Unearned premiums increased from $285,354 million to $321,105 million, an increase of approximately 12.5%[41]. - Accumulated other comprehensive loss improved from $(15,666) million to $(12,836) million, a reduction of about 18.1%[41]. - Retained earnings deficit improved from $(184,772) million to $(163,424) million, reflecting a reduction of approximately 11.6%[41]. Ratings and Financial Stability - The company maintains a Financial Stability Rating of "A", "Exceptional" from Demotech, and an "A-" insurance financial strength rating with a Stable outlook by Kroll[25].
United Insurance(ACIC) - 2025 Q1 - Quarterly Results