Premiums and Revenues - Gross premiums written increased by 7.2% from $184,601,000 in Q1 2024 to $197,852,000 in Q1 2025[158] - Net premiums earned rose by 8.6% from $62,631,000 in Q1 2024 to $68,272,000 in Q1 2025[158] - Total revenues increased by 8.0% from $66,598,000 in Q1 2024 to $72,202,000 in Q1 2025[158] - Year-over-year revenues increased by 8.4%, driven by an increase in net premiums earned, despite increased policy acquisition costs[187] - New and renewal policies increased by 134, totaling 1,196 for the three months ended March 31, 2025, compared to 1,062 in the same period in 2024[189] Income and Expenses - Consolidated net income decreased by 9.5% from $23,599,000 in Q1 2024 to $21,348,000 in Q1 2025[158] - Core income for Q1 2025 was $20,651,000, down from $24,390,000 in Q1 2024, representing a decline of 15.0%[158] - Total expenses increased by $11,038,000, or 30.6%, to $47,078,000 for the three months ended March 31, 2025, from $36,040,000 for the same period in 2024[190] - Policy acquisition costs surged by $13,871,000, or 144.6%, to $23,466,000 for the three months ended March 31, 2025, from $9,595,000 in the same period in 2024[194] - General and administrative expenses decreased by $1,746,000, or 15.5%, to $9,506,000 for the three months ended March 31, 2025, from $11,252,000 for the same period in 2024[195] Financial Position - Cash, cash equivalents, restricted cash, and investment portfolio totaled $568,827,000 at March 31, 2025, up from $540,811,000 at December 31, 2024[169] - As of March 31, 2025, total investments amounted to $335,787 million, a decrease from $341,418 million as of December 31, 2024, representing a 1.8% decline[170] - The estimated fair value of U.S. government and agency securities was $150,739 million, accounting for 26.2% of total investments as of March 31, 2025, down from 28.7% at the end of 2024[170] - Unpaid losses and loss adjustment expenses (LAE) totaled $256,289 million as of March 31, 2025, a decrease of 20.5% from $322,087 million as of December 31, 2024[184] Ratios and Performance Metrics - The combined ratio for Q1 2025 was 65.0%, compared to 53.2% in Q1 2024, indicating a deterioration in underwriting performance[159] - The total ceding ratio for reinsurance costs as a percentage of gross earned premium was 57.9% for the three months ended March 31, 2025, compared to 61.0% for the same period in 2024[180] Catastrophe Reinsurance - The core catastrophe reinsurance program provides occurrence-based coverage up to approximately $1,260 million for a first occurrence and $1,610 million in the aggregate[173] - The new catastrophe aggregate excess of loss agreement provides $40 million of aggregate limit with a $20 million per occurrence cap, effective January 1, 2025[175] - The company’s catastrophe losses incurred from all other events totaled $0.3 million for the three months ended March 31, 2025, with no losses from named and numbered storms[182] - A reduction in expense of approximately $6,300 million was realized during the three months ended March 31, 2024, due to a commutation of a private reinsurer's share of core catastrophe reinsurance coverage[176] Cash Flow and Financing - Cash inflows from operating activities decreased to $26,443,000 for the three months ended March 31, 2025, compared to $124,484,000 for the same period in 2024[204] - Net sales of investments totaled $5,300,000 during the three months ended March 31, 2025, compared to net purchases of $2,005,000 in the same period in 2024[205] - Cash provided by financing activities totaled $309,000 for the three months ended March 31, 2025, compared to $11,398,000 for the same period in 2024[206] - As of March 31, 2025, 4,373,000 shares had been sold under the equity distribution agreement, resulting in net proceeds of approximately $38,190,000[199] - The company did not make any capital contributions to its subsidiaries during the three months ended March 31, 2025[198] Sale of Subsidiary - The company completed the sale of IIC to Forza Insurance Holdings, LLC, with the sale closing on April 1, 2025[154]
United Insurance(ACIC) - 2025 Q1 - Quarterly Report