Exhibit 99.1
UNIVERSAL INSURANCE HOLDINGS, INC. REPORTS
FIRST-QUARTER 2013 FINANCIAL RESULTS
Fort Lauderdale, Fla., May 7, 2013 - Universal Insurance Holdings, Inc. (Company) (NYSE MKT: UVE) reported net income of $12.0 million, or $0.29 per diluted share, an increase of 20.8 percent, for the first quarter of 2013, compared to net income of $9.9 million, or $0.24 per diluted share, for the same period in 2012.
President and CEO Sean Downes commented, “Universal began 2013 with strong operating results driven by continued strengthening of underwriting margins. We are pleased to have delivered a 21 percent increase in first quarter 2013 net income versus last year. We have continued to follow our business model and if not for the first quarter 2013 investment losses, our results would have been significantly better. We believe we are well-positioned going forward as we have engaged Deutsche Bank Investment Asset Division to manage our investment portfolio.”
First-Quarter 2013 Results
Direct premiums written collectively by Universal Property & Casualty Insurance Company and American Platinum Property and Casualty Insurance Company, the Company’s wholly-owned insurance company subsidiaries, rose 7.4 percent during the first quarter of 2013. Net earned premiums grew $16.8 million, or 34.5 percent, in the first quarter of 2013 compared to the same quarter in 2012, primarily as a result of increases in premium rates over the past 24 months, and a reduction in the quota-share cession rate from 50 percent for the 2011-2012 reinsurance program to 45 percent for the 2012-2013 reinsurance program.
First-quarter 2013 operating costs increased by 8.3 percent compared to the same quarter last year, as general and administrative expenses increased $3.4 million, or 18.9 percent, while losses and loss adjustment expenses increased nominally by $0.3 million, or 1.2 percent.
At March 31, 2013, stockholders’ equity was $172.1 million compared to $163.5 million at December 31, 2012, and $156.6 million at March 31, 2012.
Cash Dividends
On February 8, 2013, the Company announced that its board of directors declared a cash dividend of $0.08 per share of common stock, which was paid on April 5, 2013 to shareholders of record on March 14, 2013.
Also, on April 18, 2013, the Company announced that its board of directors declared a cash dividend of $0.08 per share of common stock to be paid on June 17, 2013, to shareholders of record on June 3, 2013. The dividend declaration is consistent with the Company’s previously announced intention to declare a dividend of $0.08 per share in the second, third and fourth quarters of 2013. If declared and paid as intended, the annual dividend in 2013 would be $0.32 for each common share.
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About Universal Insurance Holdings, Inc.
Universal Insurance Holdings, Inc., with its wholly-owned subsidiaries, is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Universal Property & Casualty Insurance Company (UPCIC), a wholly-owned subsidiary of the Company, is one of the leading writers of homeowners insurance in Florida and is now fully licensed and has commenced its operations in North Carolina, South Carolina, Hawaii, Georgia, Massachusetts and Maryland. American Platinum Property and Casualty Insurance Company (APPCIC), also a wholly-owned subsidiary, currently writes homeowners multi-peril insurance on Florida homes valued in excess of $1 million, which are limits and coverages currently not targeted through its affiliate UPCIC. For additional information on the Company, please visit our investor relations website at www.universalinsuranceholdings.com.
Forward-Looking Statements and Risk Factors
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include commentary on plans, products and lines of business, marketing arrangements, reinsurance programs and other business developments and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future results could differ materially from those described and the Company undertakes no obligation to correct or update any forward-looking statements. For further information regarding risk factors that could affect the Company’s operations and future results, refer to the Company’s reports filed with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2012 and the Form 10-Q for the quarter ended March 31, 2013.
Investor Contact:
Philip Kranz, Dresner Corporate Services, 312-780-7240, pkranz@dresnerco.com
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UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in thousands, except per share data)
| Three Months Ended March 31, | ||||||||
| 2013 | 2012 | |||||||
| PREMIUMS EARNED AND OTHER REVENUES |
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| Direct premiums written |
$ | 204,139 | $ | 190,003 | ||||
| Ceded premiums written |
(141,317 | ) | (163,434 | ) | ||||
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| Net premiums written |
62,822 | 26,569 | ||||||
| Change in net unearned premium |
2,587 | 22,071 | ||||||
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| Premiums earned, net |
65,409 | 48,640 | ||||||
| Net investment income (expense) |
12 | (36 | ) | |||||
| Net realized gains (losses) on investments (trading) |
(16,037 | ) | (7,449 | ) | ||||
| Net change in unrealized gains (losses) on investments (trading) |
7,874 | 9,187 | ||||||
| Net foreign currency gains (losses) on investments |
— | 23 | ||||||
| Commission revenue |
4,986 | 4,541 | ||||||
| Policy fees |
3,687 | 3,901 | ||||||
| Other revenue |
1,524 | 1,440 | ||||||
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| Total premiums earned and other revenues |
67,455 | 60,247 | ||||||
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| OPERATING COSTS AND EXPENSES |
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| Losses and loss adjustment expenses |
26,483 | 26,174 | ||||||
| General and administrative expenses |
21,210 | 17,844 | ||||||
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| Total operating costs and expenses |
47,693 | 44,018 | ||||||
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| INCOME BEFORE INCOME TAXES |
19,762 | 16,229 | ||||||
| Income taxes, current |
3,947 | 774 | ||||||
| Income taxes, deferred |
3,856 | 5,582 | ||||||
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| Income taxes, net |
7,803 | 6,356 | ||||||
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| NET INCOME |
$ | 11,959 | $ | 9,873 | ||||
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| Basic earnings per common share |
$ | 0.30 | $ | 0.24 | ||||
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| Weighted average common shares outstanding - Basic |
39,917 | 39,388 | ||||||
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| Fully diluted earnings per common share |
$ | 0.29 | $ | 0.24 | ||||
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| Weighted average common shares outstanding - Diluted |
41,199 | 40,544 | ||||||
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| Cash dividend declared per common share |
$ | 0.08 | $ | 0.10 | ||||
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UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands, except per share data)
| As of | ||||||||
| ASSETS | March 31, 2013 |
December 31, 2012 |
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| Cash and cash equivalents |
$ | 482,876 | $ | 347,392 | ||||
| Restricted cash and cash equivalents |
2,653 | 33,009 | ||||||
| Fixed maturities (trading), at fair value |
— | 4,009 | ||||||
| Equity securities (trading), at fair value |
— | 85,041 | ||||||
| Fixed maturities (available for sale), at fair value |
13,968 | — | ||||||
| Prepaid reinsurance premiums |
252,479 | 239,921 | ||||||
| Reinsurance recoverable |
87,231 | 89,191 | ||||||
| Reinsurance receivable, net |
4,480 | 24,334 | ||||||
| Premiums receivable, net |
50,832 | 50,125 | ||||||
| Receivable from securities sold |
21,991 | 1,096 | ||||||
| Other receivables |
2,269 | 2,017 | ||||||
| Property and equipment, net |
9,128 | 8,968 | ||||||
| Deferred policy acquisition costs, net |
17,377 | 17,282 | ||||||
| Income taxes recoverable |
1,977 | 2,594 | ||||||
| Deferred income tax asset, net |
15,322 | 19,178 | ||||||
| Other assets |
1,540 | 1,578 | ||||||
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| Total assets |
$ | 964,123 | $ | 925,735 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| LIABILITIES: |
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| Unpaid losses and loss adjustment expenses |
$ | 182,528 | $ | 193,241 | ||||
| Unearned premiums |
398,042 | 388,071 | ||||||
| Advance premium |
27,210 | 15,022 | ||||||
| Accounts payable |
4,316 | 4,368 | ||||||
| Bank overdraft |
27,068 | 25,994 | ||||||
| Payable for securities purchased |
— | 1,275 | ||||||
| Reinsurance payable, net |
104,881 | 85,259 | ||||||
| Income taxes payable |
— | 699 | ||||||
| Dividends payable to shareholders |
3,270 | — | ||||||
| Other liabilities and accrued expenses |
24,811 | 28,071 | ||||||
| Long-term debt |
19,853 | 20,221 | ||||||
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| Total liabilities |
791,979 | 762,221 | ||||||
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| STOCKHOLDERS’ EQUITY: |
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| Cumulative convertible preferred stock, $.01 par value |
1 | 1 | ||||||
| Authorized shares - 1,000 |
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| Issued shares - 108 |
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| Outstanding shares - 108 |
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| Minimum liquidation preference, $2.66 per share |
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| Common stock, $.01 par value |
417 | 419 | ||||||
| Authorized shares - 55,000 |
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| Issued shares - 41,690 and 41,889 |
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| Outstanding shares - 40,672 and 40,871 |
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| Treasury shares, at cost - 1,018 |
(3,101 | ) | (3,101 | ) | ||||
| Additional paid-in capital |
38,631 | 38,684 | ||||||
| Retained earnings |
136,196 | 127,511 | ||||||
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| Total stockholders’ equity |
172,144 | 163,514 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 964,123 | $ | 925,735 | ||||
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