Universal Reports Fourth Quarter 2022 Results

  • Diluted GAAP earnings per common share (EPS) of $0.82; diluted adjusted* EPS of $0.72
  • Book value per share of $9.47, up 10.9% from third quarter 2022; adjusted book value per share of $12.89, up 4.5% from third quarter 2022
  • Net combined ratio of 101.4%, down from 131.4% in the prior year quarter
  • Direct premiums written of $416.1 million, up 4.2% from the prior year quarter

Universal Insurance Holdings (NYSE: UVE) (the “Company” or “Universal”) reported fourth quarter and full year 2022 results.

“It was a tough year, but I’m proud of what our team accomplished despite the circumstances,” said Stephen J. Donaghy, Chief Executive Officer. “The Florida homeowners insurance market has faced significant challenges, but we remain committed to our home state and continue to write new and renewal business. We’re grateful to state officials for passing meaningful reforms at the recent special legislative session, including elimination of one-way attorney fees and assignment-of-benefits, shortening the claims filing deadline to one year and taking steps to reduce the competitiveness of Citizens, among other measures. It will take time for the reforms to benefit results, but we believe the legislature’s actions will restore the health of the market over the long term. Given our differentiated business model, solid balance sheet and strong reinsurer relationships, we’re uniquely positioned to succeed in the dynamic Florida landscape.”

* Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables.

Summary Financial Results

 

($thousands, except per share data)

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

2022

 

2021

 

Change

 

 

2022

 

2021

 

Change

GAAP comparison

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

330,360

 

 

$

292,659

 

 

12.9

%

 

 

$

1,222,658

 

 

$

1,121,851

 

 

9.0

%

GAAP operating income (loss)

$

34,479

 

 

$

(63,907

)

 

NM

 

 

 

$

(20,638

)

 

$

29,051

 

 

NM

 

GAAP operating income (loss) margin

 

10.4

%

 

 

(21.8

) %

 

NM

 

 

 

 

(1.7

) %

 

 

2.6

%

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

25,111

 

 

$

(48,125

)

 

NM

 

 

 

$

(22,257

)

 

$

20,407

 

 

NM

 

Diluted earnings (loss) per common share

$

0.82

 

 

$

(1.54

)

 

NM

 

 

 

$

(0.72

)

 

$

0.65

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized ROCE

 

36.6

%

 

 

(41.7

) %

 

NM

 

 

 

 

(6.2

) %

 

 

4.6

%

 

NM

 

Book value per share, end of period

$

9.47

 

 

$

13.76

 

 

(31.2

) %

 

 

 

9.47

 

 

$

13.76

 

 

(31.2

) %

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP comparison1

 

 

 

 

 

 

 

 

 

 

 

 

Core revenue

$

326,352

 

 

$

293,132

 

 

11.3

%

 

 

$

1,235,455

 

 

$

1,119,991

 

 

10.3

%

Adjusted operating income (loss)

$

30,471

 

 

$

(63,434

)

 

NM

 

 

 

$

(7,841

)

 

$

27,191

 

 

NM

 

Adjusted operating income (loss) margin

 

9.3

%

 

 

(21.6

) %

 

NM

 

 

 

 

(0.6

) %

 

 

2.4

%

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (loss)

$

22,087

 

 

$

(47,761

)

 

NM

 

 

 

$

(12,618

)

 

$

18,959

 

 

NM

 

Adjusted diluted earnings (loss) per common share

$

0.72

 

 

$

(1.53

)

 

NM

 

 

 

$

(0.41

)

 

$

0.61

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized adjusted ROCE

 

23.1

%

 

 

(40.3

) %

 

NM

 

 

 

 

(3.0

) %

 

 

4.3

%

 

NM

 

Adjusted book value per share, end of period

$

12.89

 

 

$

14.26

 

 

(9.6

) %

 

 

$

12.89

 

 

$

14.26

 

 

(9.6

) %

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting Summary

 

 

 

 

 

 

 

 

 

 

 

 

Premiums:

 

 

 

 

 

 

 

 

 

 

 

 

Premiums in force

$

1,856,339

 

 

$

1,679,821

 

 

10.5

%

 

 

$

1,856,339

 

 

$

1,679,821

 

 

10.5

%

Policies in force

 

848,856

 

 

 

943,593

 

 

(10.0

) %

 

 

 

848,856

 

 

 

943,593

 

 

(10.0

) %

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums written

$

416,101

 

 

$

399,327

 

 

4.2

%

 

 

$

1,845,786

 

 

$

1,671,252

 

 

10.4

%

Direct premiums earned

$

463,843

 

 

$

417,817

 

 

11.0

%

 

 

$

1,759,701

 

 

$

1,596,618

 

 

10.2

%

Ceded premiums earned

$

(171,973

)

 

$

(146,485

)

 

17.4

%

 

 

$

(631,075

)

 

$

(561,155

)

 

12.5

%

Ceded premium ratio

 

37.1

%

 

 

35.1

%

 

2.0 pts

 

 

 

35.9

%

 

 

35.1

%

 

0.8 pts

Net premiums earned

$

291,870

 

 

$

271,332

 

 

7.6

%

 

 

$

1,128,626

 

 

$

1,035,463

 

 

9.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Loss & LAE ratio

 

76.3

%

 

 

103.3

%

 

(27.0) pts

 

 

 

83.2

%

 

 

75.3

%

 

7.9 pts

Expense ratio

 

25.1

%

 

 

28.1

%

 

(3.0) pts

 

 

 

27.0

%

 

 

30.2

%

 

(3.2) pts

Combined ratio

 

101.4

%

 

 

131.4

%

 

(30.0) pts

 

 

 

110.2

%

 

 

105.5

%

 

4.7 pts

1 Reconciliation of GAAP to non-GAAP financial measures are provided in the attached tables. Adjusted net income, adjusted diluted earnings per common share and core revenue exclude net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities. Adjusted operating income excludes the items above and interest and amortization of debt issuance costs. Adjusted book value per share excludes accumulated other comprehensive income, net of taxes. Adjusted ROCE is calculated by dividing annualized adjusted net income attributable to common stockholders by average adjusted book value per share, with the denominator further excluding current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities.

Net Income and Adjusted Net Income

Net income was $25.1 million, up from net loss of $48.1 million in the prior year quarter, and adjusted net income was $22.1 million, up from adjusted net loss of $47.8 million in the prior year quarter. The increase in adjusted net income mostly stems from lower net loss and expense ratios and higher net investment income and commission revenue.

Revenues

Overall revenue was $330.4 million, up 12.9% from the prior year quarter and core revenue was $326.4 million, up 11.3% from the prior year quarter. The increase in core revenue primarily stems from higher net premiums earned, net investment income and commission revenue.

Direct premiums written were $416.1 million, up 4.2% from the prior year quarter. The increase stems from 3.6% growth in Florida and 6.8% growth in other states. Overall growth reflects rate increases, partly offset by lower policies in force.

Direct premiums earned were $463.8 million, up 11.0% from the prior year quarter. The increase stems from rate-driven direct premiums written growth over the past twelve months.

The ceded premium ratio was 37.1%, up from 35.1%, in the prior year quarter. The increase primarily reflects reinstatement premiums associated with Hurricane Ian, higher reinsurance pricing and higher reinsurance costs associated with the increase in insured values, partly offset by direct premiums earned growth associated with primary rate increases and reinsurance savings associated with leveraging our self-insured captive to a greater degree than the prior year.

Net premiums earned were $291.9 million, up 7.6% from the prior year quarter. The increase is primarily attributable to higher direct premiums earned, partly offset by higher ceded premiums earned, as described above.

Net investment income was $10.4 million, up from $3.9 million in the prior year quarter. The increase primarily stems from higher fixed income reinvestment yields and higher yields on cash.

Commissions, policy fees and other revenue were $24.0 million, up 34.2% from the prior year quarter. The increase primarily reflects higher reinsurance brokerage commission revenue, which benefited from higher ceded premiums and the difference in our reinsurance program’s structure relative to the prior year quarter, partly offset by a decline in policy fees associated with lower policies in force.

Margins

The GAAP operating income margin was 10.4%, up from a GAAP operating loss margin of 21.8% in the prior year quarter. The adjusted operating income margin was 9.3%, up from an adjusted operating loss margin of 21.6% in the prior year quarter. The higher adjusted operating income margin primarily reflects a lower net combined ratio and higher net investment income and commission revenue, partly offset by lower policy fees.

The net loss ratio was 76.3%, down 27.0 points compared to the prior year quarter. The decrease primarily reflects a lower current accident year net loss ratio and lower adverse prior year reserve development ($17.9 million in the current year quarter, down from $36.5 million in the prior year quarter).

The net expense ratio was 25.1%, down 3.0 points from 28.1% in the prior year quarter. The reduction primarily reflects lower renewal commission rates paid to distribution partners.

The net combined ratio was 101.4%, down 30.0 points compared to the prior year quarter. The decrease reflects lower net loss and expense ratios, as described above.

Capital Deployment

During the fourth quarter, the Company repurchased approximately 186 thousand shares at an aggregate cost of $1.8 million. The Company’s current share repurchase authorization program has $6.2 million remaining as of December 31, 2022 and runs through December 15, 2024.

On February 9, 2023, the Board of Directors declared a regular quarterly cash dividend of 16 cents per share of common stock, payable March 16, 2023 to shareholders of record as of the close of business on March 9, 2023.

Conference Call and Webcast

  • Friday, February 24, 2023 at 9:30 a.m. ET
  • Investors and other interested parties may listen to the call by accessing the online, real-time webcast at universalinsuranceholdings.com/investors or by registering in advance via teleconference at https://register.vevent.com/register/BI271bba0f21b746d8aafebbe6a6c51c55. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. An online replay of the call will be available at universalinsuranceholdings.com/investors shortly after the investor call concludes.

About Universal

Universal Insurance Holdings, Inc. (NYSE: UVE) is a holding company offering property and casualty insurance and value-added insurance services. We develop, market, and write insurance products for consumers predominantly in the personal residential homeowners lines of business and perform substantially all other insurance-related services for our primary insurance entities, including risk management, claims management and distribution. We sell insurance products through both our appointed independent agents and through our direct online distribution channels in the United States across 19 states (primarily Florida). Learn more at universalinsuranceholdings.com.

Non-GAAP Financial Measures and Key Performance Indicators

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the U.S. Securities and Exchange Commission (“SEC”), including core revenue, adjusted net income attributable to common stockholders and diluted adjusted earnings (loss) per common share, which exclude the impact of net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities. Adjusted operating income and adjusted operating income margin exclude the impact of net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities and interest and amortization of debt issuance costs. Adjusted common stockholders’ equity and adjusted book value per share exclude accumulated other comprehensive income (AOCI), net of taxes. Adjusted return on common equity excludes after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities from the numerator and AOCI, net of taxes, and current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities from the denominator. A “non-GAAP financial measure” is generally defined as a numerical measure of a company’s historical or future performance that excludes or includes amounts, or is subject to adjustments, so as to be different from the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (“GAAP”). UVE management believes that these non-GAAP financial measures are meaningful, as they allow investors to evaluate underlying revenue and profitability trends and enhance comparability across periods. When considered together with the GAAP financial measures, management believes these metrics provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. UVE management also believes that these non-GAAP financial measures enhance the ability of investors to analyze UVE’s business trends and to understand UVE’s operational performance. UVE’s management utilizes these non-GAAP financial measures as guides in long-term planning. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures presented in accordance with GAAP. For more information regarding our key performance indicators, please refer to the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Key Performance Indicators” in our forthcoming Annual Report on Form 10-K for the quarter ended December 31, 2022.

Forward-Looking Statements

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,” “will,” “plan,” 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, including those risks and uncertainties described under the heading “Risk Factors” and “Liquidity and Capital Resources” in our 2022 Annual Report on Form 10-K, and supplemented in our subsequent Quarterly Reports on Form 10-Q. Future results could differ materially from those described, and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. 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 Company’s Annual Report on Form 10-K and the most recent quarterly reports on Form 10-Q.

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except per share data)

 

 

 

December 31,

 

December 31,

 

 

2022

 

2021

ASSETS

 

 

 

 

Invested Assets

 

 

 

 

Fixed maturities, at fair value

 

$

1,014,626

 

 

$

1,040,455

 

Equity securities, at fair value

 

 

85,469

 

 

 

47,334

 

Investment real estate, net

 

 

5,711

 

 

 

5,891

 

Total invested assets

 

 

1,105,806

 

 

 

1,093,680

 

Cash and cash equivalents

 

 

388,706

 

 

 

250,508

 

Restricted cash and cash equivalents

 

 

2,635

 

 

 

2,635

 

Prepaid reinsurance premiums

 

 

282,427

 

 

 

240,993

 

Reinsurance recoverable

 

 

808,850

 

 

 

185,589

 

Premiums receivable, net

 

 

69,574

 

 

 

64,923

 

Property and equipment, net

 

 

51,404

 

 

 

53,682

 

Deferred policy acquisition costs

 

 

103,654

 

 

 

108,822

 

Goodwill

 

 

2,319

 

 

 

2,319

 

Other assets

 

 

74,779

 

 

 

52,990

 

TOTAL ASSETS

 

$

2,890,154

 

 

$

2,056,141

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

LIABILITIES:

 

 

 

 

Unpaid losses and loss adjustment expenses

 

$

1,038,790

 

 

$

346,216

 

Unearned premiums

 

 

943,854

 

 

 

857,769

 

Advance premium

 

 

54,964

 

 

 

53,694

 

Reinsurance payable, net

 

 

384,504

 

 

 

188,662

 

Long-term debt, net

 

 

102,769

 

 

 

103,676

 

Other liabilities

 

 

77,377

 

 

 

76,422

 

Total liabilities

 

 

2,602,258

 

 

 

1,626,439

 

STOCKHOLDERS' EQUITY:

 

 

 

 

Cumulative convertible preferred stock ($0.01 par value)2

 

 

 

 

 

 

Common stock ($0.01 par value)3

 

 

472

 

 

 

470

 

Treasury shares, at cost - 16,790 and 15,797

 

 

(238,758

)

 

 

(227,115

)

Additional paid-in capital

 

 

112,509

 

 

 

108,202

 

Accumulated other comprehensive income (loss), net of taxes

 

 

(103,782

)

 

 

(15,568

)

Retained earnings

 

 

517,455

 

 

 

563,713

 

Total stockholders' equity

 

 

287,896

 

 

 

429,702

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

2,890,154

 

 

$

2,056,141

 

 

 

 

 

 

Notes:

 

 

 

 

2 Cumulative convertible preferred stock ($0.01 par value): Authorized - 1,000 shares; Issued - 10 and 10 shares; Outstanding - 10 and 10 shares; Minimum liquidation preference - $9.99 and $9.99 per share.

3 Common stock ($0.01 par value): Authorized - 55,000 shares; Issued - 47,179 and 47,018 shares; Outstanding - 30,389 and 31,221 shares.

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)

(in thousands)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 31,

 

 

December 31,

 

 

2022

 

2021

 

 

2022

 

2021

REVENUES

 

 

 

 

 

 

 

 

 

Net premiums earned

 

$

291,870

 

$

271,332

 

 

 

$

1,128,626

 

 

$

1,035,463

 

Net investment income

 

 

10,448

 

 

3,894

 

 

 

 

25,785

 

 

 

12,535

 

Net realized gains (losses) on sale of investments

 

 

723

 

 

535

 

 

 

 

348

 

 

 

5,892

 

Net change in unrealized gains (losses) of equity securities

 

 

3,285

 

 

(1,008

)

 

 

 

(13,145

)

 

 

(4,032

)

Commission revenue

 

 

18,011

 

 

11,245

 

 

 

 

53,168

 

 

 

41,649

 

Policy fees

 

 

4,191

 

 

4,892

 

 

 

 

20,182

 

 

 

22,713

 

Other revenue

 

 

1,832

 

 

1,769

 

 

 

 

7,694

 

 

 

7,631

 

Total revenues

 

 

330,360

 

 

292,659

 

 

 

 

1,222,658

 

 

 

1,121,851

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

222,545

 

 

280,440

 

 

 

 

938,399

 

 

 

779,205

 

Policy acquisition costs

 

 

50,827

 

 

55,880

 

 

 

 

214,259

 

 

 

226,167

 

Other operating expenses

 

 

22,509

 

 

20,246

 

 

 

 

90,638

 

 

 

87,428

 

Total operating costs and expenses

 

 

295,881

 

 

356,566

 

 

 

 

1,243,296

 

 

 

1,092,800

 

Interest and amortization of debt issuance costs

 

 

1,640

 

 

554

 

 

 

 

6,609

 

 

 

638

 

Income (loss) before income tax expense (benefit)

 

 

32,839

 

 

(64,461

)

 

 

 

(27,247

)

 

 

28,413

 

Income tax expense (benefit)

 

 

7,728

 

 

(16,336

)

 

 

 

(4,990

)

 

 

8,006

 

NET INCOME (LOSS)

 

$

25,111

 

$

(48,125

)

 

 

$

(22,257

)

 

$

20,407

 

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SHARE AND PER SHARE INFORMATION

(in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

Twelve Months Ended

 

 

December 31,

 

 

 

December 31,

 

 

2022

 

2021

 

 

 

2022

 

2021

Weighted average common shares outstanding - basic

 

 

30,434

 

 

 

31,177

 

 

 

 

 

30,751

 

 

 

31,218

 

Weighted average common shares outstanding - diluted

 

 

30,535

 

 

 

31,177

 

 

 

 

 

30,751

 

 

 

31,307

 

Shares outstanding, end of period

 

 

30,389

 

 

 

31,221

 

 

 

 

 

30,389

 

 

 

31,221

 

Basic earnings (loss) per common share

 

$

0.83

 

 

$

(1.54

)

 

 

 

$

(0.72

)

 

$

0.65

 

Diluted earnings (loss) per common share

 

$

0.82

 

 

$

(1.54

)

 

 

 

$

(0.72

)

 

$

0.65

 

Cash dividend declared per common share

 

$

0.29

 

 

$

0.29

 

 

 

 

$

0.77

 

 

$

0.77

 

Book value per share, end of period

 

$

9.47

 

 

$

13.76

 

 

 

 

$

9.47

 

 

$

13.76

 

Annualized return on average common equity (ROCE)

 

 

36.6

%

 

 

(41.7

)%

 

 

 

 

(6.2

)%

 

 

4.6

%

 

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SUPPLEMENTARY INFORMATION

(in thousands, except for Policies In-Force data)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

December 31,

 

 

December 31,

 

 

2022

 

2021

 

 

2022

 

2021

Premiums

 

 

 

 

 

 

 

 

 

Direct premiums written - Florida

 

$

337,950

 

 

$

326,138

 

 

 

$

1,538,143

 

 

$

1,388,318

 

Direct premiums written - Other States

 

 

78,151

 

 

 

73,189

 

 

 

 

307,643

 

 

 

282,934

 

Direct premiums written - Total

 

$

416,101

 

 

$

399,327

 

 

 

$

1,845,786

 

 

$

1,671,252

 

Direct premiums earned

 

$

463,843

 

 

$

417,817

 

 

 

$

1,759,701

 

 

$

1,596,618

 

Net premiums earned

 

$

291,870

 

 

$

271,332

 

 

 

$

1,128,626

 

 

$

1,035,463

 

 

 

 

 

 

 

 

 

 

 

Underwriting Ratios - Net

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expense ratio

 

 

76.3

%

 

 

103.3

%

 

 

 

83.2

%

 

 

75.3

%

General and administrative expense ratio

 

 

25.1

%

 

 

28.1

%

 

 

 

27.0

%

 

 

30.2

%

Policy acquisition cost ratio

 

 

17.4

%

 

 

20.6

%

 

 

 

19.0

%

 

 

21.8

%

Other operating expense ratio

 

 

7.7

%

 

 

7.5

%

 

 

 

8.0

%

 

 

8.4

%

Combined ratio

 

 

101.4

%

 

 

131.4

%

 

 

 

110.2

%

 

 

105.5

%

 

 

 

 

 

 

 

 

 

 

Other Items

 

 

 

 

 

 

 

 

 

(Favorable)/Unfavorable prior year reserve

development

 

$

17,900

 

 

$

36,467

 

 

 

$

24,980

 

 

$

54,450

 

Net loss & LAE ratio impact

 

6.1 pts

 

13.4 pts

 

 

2.2 pts

 

5.3 pts

 

 

As of

 

 

December 31,

 

 

2022

 

2021

Policies in force

 

 

 

 

Florida

 

 

615,796

 

 

695,533

Other States

 

 

233,060

 

 

248,060

Total

 

 

848,856

 

 

943,593

 

 

 

 

 

Premiums in force

 

 

 

 

Florida

 

$

1,547,383

 

$

1,395,476

Other States

 

 

308,956

 

 

284,345

Total

 

 

1,856,339

 

 

1,679,821

 

 

 

 

 

Total Insured Value

 

 

 

 

Florida

 

$

201,237,145

 

$

203,062,948

Other States

 

 

121,005,995

 

 

117,835,486

Total

 

 

322,243,140

 

 

320,898,434

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except for per share data)

GAAP revenue to core revenue

 

Three Months Ended

 

 

Twelve Months Ended

 

December 31,

 

 

December 31,

 

2022

 

2021

 

 

2022

 

2021

GAAP revenue

$

330,360

 

$

292,659

 

 

 

$

1,222,658

 

 

$

1,121,851

 

less: Net realized gains (losses) on investments

 

723

 

 

535

 

 

 

 

348

 

 

 

5,892

 

less: Net change in unrealized gains (losses) of equity securities

 

3,285

 

 

(1,008

)

 

 

 

(13,145

)

 

 

(4,032

)

Core revenue

$

326,352

 

$

293,132

 

 

 

$

1,235,455

 

 

$

1,119,991

 

GAAP operating income (loss) to adjusted operating income (loss)

 

Three Months Ended

 

 

Twelve Months Ended

 

December 31,

 

 

December 31,

 

2022

 

2021

 

 

2022

 

2021

GAAP income (loss) before income tax expense (benefit)

$

32,839

 

$

(64,461

)

 

 

$

(27,247

)

 

$

28,413

 

add: Interest and amortization of debt issuance costs

 

1,640

 

 

554

 

 

 

 

6,609

 

 

 

638

 

GAAP operating income (loss)

 

34,479

 

 

(63,907

)

 

 

 

(20,638

)

 

 

29,051

 

less: Net realized gains (losses) on investments

 

723

 

 

535

 

 

 

 

348

 

 

 

5,892

 

less: Net change in unrealized gains (losses) of equity securities

 

3,285

 

 

(1,008

)

 

 

 

(13,145

)

 

 

(4,032

)

Adjusted operating income (loss)

$

30,471

 

$

(63,434

)

 

 

$

(7,841

)

 

$

27,191

 

GAAP operating income (loss) margin to adjusted operating income (loss) margin

 

Three Months Ended

 

 

Twelve Months Ended

 

December 31,

 

 

December 31,

 

2022

 

2021

 

 

2022

 

2021

GAAP operating income (loss) (a)

$

34,479

 

 

$

(63,907

)

 

 

$

(20,638

)

 

$

29,051

 

GAAP revenue (b)

 

330,360

 

 

 

292,659

 

 

 

 

1,222,658

 

 

 

1,121,851

 

GAAP operating income (loss) margin (a÷b)

 

10.4

%

 

 

(21.8

)%

 

 

 

(1.7

)%

 

 

2.6

%

Adjusted operating income (loss) (c)

 

30,471

 

 

 

(63,434

)

 

 

 

(7,841

)

 

 

27,191

 

Core revenue (d)

 

326,352

 

 

 

293,132

 

 

 

 

1,235,455

 

 

 

1,119,991

 

Adjusted operating income (loss) margin (c÷d)

 

9.3

%

 

 

(21.6

)%

 

 

 

(0.6

)%

 

 

2.4

%

GAAP net income (loss) (NI) to adjusted NI (loss) available to common stockholders

 

Three Months Ended

 

 

Twelve Months Ended

 

December 31,

 

 

December 31,

 

2022

 

2021

 

 

2022

 

2021

GAAP NI (loss)

$

25,111

 

$

(48,125

)

 

 

$

(22,257

)

 

$

20,407

 

less: Preferred dividends

 

2

 

 

2

 

 

 

 

10

 

 

 

10

 

GAAP NI (loss) available to common stockholders (e)

 

25,109

 

 

(48,127

)

 

 

 

(22,267

)

 

 

20,397

 

less: Net realized gains (losses) on investments

 

723

 

 

535

 

 

 

 

348

 

 

 

5,892

 

less: Net change in unrealized gains (losses) of equity securities

 

3,285

 

 

(1,008

)

 

 

 

(13,145

)

 

 

(4,032

)

add: Income tax effect on above adjustments

 

986

 

 

(107

)

 

 

 

(3,148

)

 

 

422

 

Adjusted NI (loss) available to common stockholders (f)

$

22,087

 

$

(47,761

)

 

 

$

(12,618

)

 

$

18,959

 

 

 

 

 

 

 

 

 

 

Weighted average diluted common shares outstanding (g)

 

30,535

 

 

31,177

 

 

 

 

30,751

 

 

 

31,307

 

Diluted earnings (loss) per common share (e÷g)

$

0.82

 

$

(1.54

)

 

 

$

(0.72

)

 

$

0.65

 

Diluted adjusted earnings (loss) per common share (f÷g)

$

0.72

 

$

(1.53

)

 

 

$

(0.41

)

 

$

0.61

 

GAAP stockholders’ equity to adjusted common stockholders’ equity

 

As of

 

December 31,

 

 

December 31,

 

 

December 31,

 

2022

 

 

2021

 

 

2020

GAAP stockholders’ equity

$

287,896

 

 

 

$

429,702

 

 

 

$

449,262

less: Preferred equity

 

100

 

 

 

 

100

 

 

 

 

100

Common stockholders’ equity (h)

 

287,796

 

 

 

 

429,602

 

 

 

 

449,162

less: Accumulated other comprehensive (loss), net of taxes

 

(103,782

)

 

 

 

(15,568

)

 

 

 

3,343

Adjusted common stockholders’ equity (i)

$

391,578

 

 

 

$

445,170

 

 

 

$

445,819

 

 

 

 

 

 

 

 

Common shares outstanding (j)

 

30,389

 

 

 

 

31,221

 

 

 

 

31,137

Book value per common share (h÷j)

$

9.47

 

 

 

$

13.76

 

 

 

$

14.43

Adjusted book value per common share (i÷j)

$

12.89

 

 

 

$

14.26

 

 

 

$

14.32

GAAP return on common equity (ROCE) to adjusted ROCE

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

December 31,

 

 

December 31,

 

2022

 

2021

 

 

2022

 

2021

 

2020

Actual or Annualized NI (loss) attributable to common stockholders (k)

$

100,436

 

 

$

(192,508

)

 

 

$

(22,267

)

 

$

20,397

 

 

$

19,095

 

Average common stockholders’ equity (l)

 

274,167

 

 

 

461,889

 

 

 

 

358,699

 

 

 

439,382

 

 

 

471,482

 

ROCE (k÷l)

 

36.6

%

 

 

(41.7

)%

 

 

 

(6.2

)%

 

 

4.6

%

 

 

4.0

%

Annualized adjusted NI (loss) attributable to common stockholders (m)

$

88,348

 

 

$

(191,044

)

 

 

$

(12,618

)

 

$

18,959

 

 

$

(29,008

)

 

 

 

 

 

 

 

 

 

 

 

Adjusted average common stockholders’ equity4 (n)

 

382,379

 

 

 

473,555

 

 

 

 

423,199

 

 

 

444,776

 

 

 

435,577

 

Adjusted ROCE (m÷n)

 

23.1

%

 

 

(40.3

)%

 

 

 

(3.0

)%

 

 

4.3

%

 

 

(6.7

)%

 

 

 

 

 

 

 

 

 

 

 

4 Adjusted average common stockholders’ equity excludes current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) of equity securities.

 

Given our differentiated business model, solid balance sheet and strong reinsurer relationships, we’re uniquely positioned to succeed in the dynamic Florida landscape.

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