- Universal Insurance ( NYSE: UVE ) reported 12.4% Y/Y growth in Q2 direct premiums written to $532.5M led by 13.2% growth in Florida and 8.3% growth in other states.
- Direct premiums earned increased 9.2% to $428.8M led by direct premiums written growth over the past twelve months.
- Total revenue increased 4.6% to $292M led by higher net premiums earned, net investment income and commission revenue which was mainly pushed higher by rate increases, partly offset by lower policies in force.
- The ceded premium ratio was 35.4%, up from 34.7% in the prior year quarter led by higher reinsurance pricing and higher reinsurance costs associated with the increase in insured values.
- The net combined ratio was 100.9%, up 3.6 points compared to the prior year quarter.
- Net premiums earned rose 8.2% to $277.1M; net investment income rose to $5.2M from $2.9M in prior year quarter.
- The income before income taxes margin was 3.7%, down 7.1 points from the prior year quarter and the adjusted operating margin was 7.3%, down from 10.2% in the prior year.
- During Q2, the company repurchased ~283K shares at total price of $3.5; current share repurchase authorization program has $10.4M remaining as of June 30, 2022 and runs through Nov.3, 2022.
- Outlook: The company maintained its 2022 guidance with adj. EPS in a range of $1.80 - $2.20 and annualized adjusted ROCE in a range of 12.5% - 15.0%.
- Analysts consensus estimates for FY22 EPS is seen at $1.2.
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Universal Insurance sees growth in Q2 direct premiums, maintains 2022 guidance