United Insurance Holdings Corp. (NASDAQ: UIHC) (UPC Insurance or the Company), a property and casualty insurance holding company, today reported its financial results for the second quarter and six months ended June 30, 2013.
|($ in thousands, except per share and ratios)||Three Months Ended||Six Months Ended|
|June 30,||June 30,|
|Gross premiums written||$||103,303||$||77,928||32.6||%||$||191,049||$||135,924||40.6||%|
|Earnings before income tax||$||7,246||$||5,238||38.3||%||$||14,330||$||12,721||12.6||%|
|Net income per diluted share||$||0.28||$||0.29||(3.4||)%||$||0.55||$||0.75||(26.7||)%|
|Book value per share||$||5.98||$||6.09||(1.8||)%|
|Return on average equity||14.7||%||26.6||%||-11.9 pts|
|Loss ratio, net 1||50.0||%||43.6||%||6.4 pts||49.3||%||39.0||%||10.3 pts|
Expense ratio, net 2
|39.8||%||43.5||%||-3.7 pts||39.4||%||44.2||%||-4.8 pts|
|Combined ratio (CR) 3||89.8||%||87.1||%||2.7 pts||88.7||%||83.2||%||5.5 pts|
|Effect of current year catastrophe losses on CR||3.9||%||3.9||%||—||4.1||%||2.0||%||-2.1 pts|
|Effect of prior year development from lines in run-off on CR||—||%||0.1||%||
|Effect of prior year development on CR||3.9||%||(5.2||)%||-9.1 pts||3.0||%||(3.1||)%||-6.1 pts|
|Underlying combined ratio 4||82.0||%||88.3||%||-6.3 pts||80.6||%||84.2||%||-3.6 pts|
|1||Loss ratio, net is losses and loss adjustment expenses relative to net premiums earned.|
Expense ratio, net is calculated as the sum of all operating expenses less interest expense relative to net premiums earned.
Combined ratio is the sum of the loss ratio, net and the expense ratio, net.
|4||Underlying combined ratio, a measure that is not based on accounting principles generally accepted in the United States of America (GAAP), is reconciled above to the combined ratio, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release is in the "Definitions of Non-GAAP Measures" section of this document.|
“Results in the second quarter were driven by continued strong premium growth of over 32% compared to the comparable period in 2012,” said John Forney, CEO of UPC Insurance. “This was the first quarter in our Company’s history where we wrote over $100 million in premium. Our growth was increasingly diversified geographically with 31% of our new policies coming from outside the State of Florida. We are now actively writing in Florida, South Carolina, North Carolina, Rhode Island and Massachusetts, have been approved to write business in Texas, New Jersey and New Hampshire, and have applications pending in Georgia, Connecticut, New York, and Maine. Our total policies in-force at the end of the quarter was 168,075.
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