April 1, 2011
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Date of report (Date of earliest event reported)
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Universal Insurance Holdings, Inc.
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(Exact name of registrant as specified in its charter)
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Delaware
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000-33251
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65-0231984
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(State or other jurisdiction
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(Commission file number)
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(IRS Employer
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of incorporation or organization)
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Identification No.)
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1110 W. Commercial Blvd. Suite 100, Fort Lauderdale, Florida 33309
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(Address of Principal Executive Offices)
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o
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Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).
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Date: April 1, 2011
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UNIVERSAL INSURANCE HOLDINGS, INC.
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/s/ George R. De Heer
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George R. De Heer
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Chief Financial Officer
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For the Three
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Months Ended December 31,
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2010
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2009
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PREMIUMS EARNED AND OTHER REVENUES
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Direct premiums written
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$ | 145,527,692 | $ | 126,060,931 | ||||||
Ceded premiums written
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(109,282,730 | ) | (99,866,092 | ) | ||||||
Net premiums written
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36,244,962 | 26,194,839 | ||||||||
Decrease in net unearned premium
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10,692,431 | 7,566,760 | ||||||||
Premiums earned, net
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46,937,393 | 33,761,599 | ||||||||
Net investment income
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615,660 | 68,592 | ||||||||
Net realized gains on investments
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15,798,303 | 10,586,364 | ||||||||
Net unrealized losses on investments
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(4,527,273 | ) | – | |||||||
Net foreign currency gains on investments
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321,613 | 651,474 | ||||||||
Commission revenue
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4,425,897 | 4,804,261 | ||||||||
Policy Fees
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3,149,121 | 2,941,100 | ||||||||
Other revenue
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1,386,871 | 1,178,547 | ||||||||
Total premiums earned and other revenues
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68,107,585 | 53,991,937 | ||||||||
OPERATING COSTS AND EXPENSES
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Losses and loss adjustment expenses
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35,498,745 | 37,437,583 | ||||||||
General and administrative expenses
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20,658,946 | 21,557,002 | ||||||||
Total operating costs and expenses
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56,157,691 | 58,994,585 | ||||||||
INCOME BEFORE INCOME TAXES
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11,949,894 | (5,002,648 | ) | |||||||
Income taxes, current
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7,838,881 | (632,980 | ) | |||||||
Income taxes, deferred
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(2,084,562 | ) | (1,566,058 | ) | ||||||
Income taxes, net
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5,754,319 | (2,199,038 | ) | |||||||
NET INCOME
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$ | 6,195,575 | $ | (2,803,610 | ) | |||||
Basic net income per common share
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$ | 0.17 | $ | (0.08 | ) | |||||
Weighted average of common shares
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outstanding - Basic
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39,229,452 | 37,667,023 | ||||||||
Fully diluted net income per share
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$ | 0.15 | $ | (0.07 | ) | |||||
Weighted average of common shares
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outstanding - Diluted
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40,232,650 | 40,762,734 | ||||||||
Cash dividend declared per common share
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$ | 0.10 | $ | 0.20 | ||||||
For the Three Months Ended
December 31, |
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2010 | 2009 | |||||||||
Comprehensive Income:
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Net income
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$ | 6,195,575 | $ | (2,803,610 | ) | |||||
Change in net unrealized gains on investments, net of tax
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(5,437 | ) | (4,052,085 | ) | ||||||
Comprehensive Income
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$ | 6,190,138 | $ | (6,855,695 | ) |
For the Years Ended December 31,
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2010
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2009
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PREMIUMS EARNED AND OTHER REVENUES
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Direct premiums written
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$ | 666,309,262 | $ | 562,671,620 | ||||||
Ceded premiums written
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(466,694,053 | ) | (428,384,278 | ) | ||||||
Net premiums written
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199,615,209 | 134,287,342 | ||||||||
(Increase) decrease in net unearned premium
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(29,172,312 | ) | 7,366,383 | |||||||
Premiums earned, net
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170,442,897 | 141,653,725 | ||||||||
Net investment income
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992,235 | 1,453,599 | ||||||||
Net realized gains on investments
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27,691,623 | 24,175,045 | ||||||||
Net unrealized gains on investments
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1,753,919 | - | ||||||||
Net foreign currency gains on investments
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1,122,603 | 6,808,419 | ||||||||
Commission revenue
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17,894,967 | 16,984,447 | ||||||||
Policy Fees
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15,149,369 | 14,174,000 | ||||||||
Other revenue
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4,875,619 | 5,392,894 | ||||||||
Total premiums earned and other revenues
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239,923,232 | 210,642,129 | ||||||||
OPERATING COSTS AND EXPENSES
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Losses and loss adjustment expenses
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113,355,475 | 106,133,135 | ||||||||
General and administrative expenses
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64,289,954 | 58,346,170 | ||||||||
Total operating costs and expenses
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177,645,429 | 164,479,305 | ||||||||
INCOME BEFORE INCOME TAXES
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62,277,803 | 46,162,824 | ||||||||
Income taxes, current
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26,854,322 | 15,494,732 | ||||||||
Income taxes, deferred
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(1,560,281 | ) | 1,880,794 | |||||||
Income taxes, net
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25,294,041 | 17,375,526 | ||||||||
NET INCOME
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$ | 36,983,762 | $ | 28,787,298 | ||||||
Basic net income per common share
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$ | 0.95 | $ | 0.76 | ||||||
Weighted average of common shares
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outstanding - Basic
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39,113,302 | 37,617,885 | ||||||||
Fully diluted net income per share
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$ | 0.92 | $ | 0.71 | ||||||
Weighted average of common shares
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outstanding - Diluted
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40,249,677 | 40,471,524 | ||||||||
Cash dividend declared per common share
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$ | 0.32 | $ | 0.54 | ||||||
For the Years Ended December 31,
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2010 | 2009 | |||||||||
Comprehensive Income:
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Net income
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$ | 36,983,762 | $ | 28,787,298 | ||||||
Change in net unrealized gains on investments, net of tax
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(563,654 | ) | 538,820 | |||||||
Comprehensive Income
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$ | 36,420,108 | $ | 29,326,118 | ||||||
December 31,
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December 31,
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ASSETS
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2010
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2009
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Cash and cash equivalents
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$ | 147,585,464 | $ | 192,924,291 | ||||||
Investment securities:
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Trading securities, at fair value (amortized cost - $222,519,390 in 2010 and $0 in 2009)
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224,532,404 | - | ||||||||
Available-for-sale securities, at fair value (amortized cost - $0 in 2010 and $113,832,760 in 2009)
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- | 114,797,010 | ||||||||
Prepaid reinsurance premiums
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221,085,933 | 200,294,241 | ||||||||
Reinsurance recoverables
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79,551,875 | 91,816,433 | ||||||||
Premiums receivable, net
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43,622,606 | 37,363,110 | ||||||||
Receivable from securities
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17,555,961 | 6,259,973 | ||||||||
Other receivables
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2,863,757 | 5,068,367 | ||||||||
Income taxes recoverable
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- | 3,211,874 | ||||||||
Property and equipment, net
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5,406,766 | 4,535,751 | ||||||||
Deferred policy acquisition costs, net
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9,445,679 | 9,464,624 | ||||||||
Deferred income taxes
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13,447,953 | 11,894,289 | ||||||||
Other assets
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1,131,842 | 617,337 | ||||||||
Total assets
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$ | 766,230,240 | $ | 678,247,300 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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LIABILITIES:
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Unpaid losses and loss adjustment expenses
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$ | 158,928,837 | $ | 127,197,753 | ||||||
Unearned premiums
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328,334,547 | 278,370,544 | ||||||||
Advance premium
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19,839,740 | 17,078,558 | ||||||||
Accounts payable
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3,767,293 | 3,172,626 | ||||||||
Bank overdraft
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23,030,315 | 20,297,061 | ||||||||
Reinsurance payable, net
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37,946,484 | 73,104,595 | ||||||||
Income taxes payable
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8,282,030 | 368,968 | ||||||||
Other accrued expenses
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23,149,602 | 20,750,385 | ||||||||
Long-term debt
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23,161,764 | 24,632,353 | ||||||||
Total liabilities
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626,440,612 | 564,972,843 | ||||||||
Commitments and Contigencies (Note 16)
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STOCKHOLDERS' EQUITY:
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Cumulative convertible preferred stock, $.01 par value
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1,077 | 1,087 | ||||||||
Authorized shares - 1,000,000
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Issued shares - 107,690 and 108,640
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Outstanding shares - 107,690 and 108,640
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Minimum liquidation preference - $287,240 and $288,190
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Common stock, $.01 par value
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404,069 | 402,146 | ||||||||
Authorized shares - 55,000,000
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Issued shares - 40,406,751 and 40,214,884
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Outstanding shares - 39,387,998 and 37,774,765
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Treasury shares, at cost - 1,018,753 and 1,809,119 shares
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(3,109,255 | ) | (7,948,606 | ) | ||||||
Common stock held in trust, at cost - 0 and 631,000 shares
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- | (511,110 | ) | |||||||
Additional paid-in capital
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33,674,697 | 36,666,914 | ||||||||
Accumulated other comprehensive income, net of taxes
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- | 563,654 | ||||||||
Retained earnings
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108,819,040 | 84,100,372 | ||||||||
Total stockholders' equity
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139,789,628 | 113,274,457 | ||||||||
Total liabilities and stockholders' equity
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$ | 766,230,240 | $ | 678,247,300 | ||||||
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