Universal Insurance Holdings(UVE) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Adjusted diluted earnings per common share decreased to $0.25 from$0.43 in the prior year quarter [8] - Core revenue increased to $386.4 million, up 5.7$470.9 million, an increase of 8.8% from the prior year quarter [9] - Net combined ratio increased to 107.9%, up 4.2 percentage points compared to the prior year quarter [11] - The loss ratio was 82.3%, up 0.4 percentage points compared to the prior year quarter [12] Business Line Data and Key Metrics Changes - Direct premiums earned were $519.3 million, up 7.7$348.4 million, up 3.9% from the prior year quarter [10] - Growth in Florida was 0.8%, while other states saw a significant growth of 38.4% [9] Market Data and Key Metrics Changes - The company experienced three hurricanes in 2024, impacting claims trends [5] - The company filed a modest rate decrease in Florida, correlated with legislative changes made in December 2022 [6] Company Strategy and Development Direction - The company is focused on profitability and writing business where it makes the most sense, with a strong emphasis on rate adequacy across all markets [19] - Growth in other states is attributed to entry into new markets over the last 12 months [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the reinsurance market, noting that 92% of the first event catastrophe tower has already been placed for 2025 [22] - The company is pleased with the interest from reinsurers and the renewal of multiyear capabilities, which alleviates pressure [23] Other Important Information - The company repurchased approximately 370,000 shares at an aggregate cost of $7.7 million [13] - A quarterly cash dividend of$0.16 per common share was declared, payable on March 14, 2025 [14] Q&A Session Summary Question: Can you discuss the size of the reserve development in the quarter and the level of cat losses? - The net retention event from Hurricane Milton was $45 million, with prior year development down significantly to$45 million from $76 million [17] Question: Can you provide more details on growth efforts and reinsurance renewals? - The company is focused on profitability and has seen growth in new markets, with a positive outlook on reinsurance renewals [19][22]