Universal Reports Third Quarter 2022 Results
Universal Insurance Holdings (NYSE: UVE) (“Universal” or the “Company”) reported third quarter 2022 results.
“Our thoughts continue to be with all impacted policyholders,” said Stephen J. Donaghy, Chief Executive Officer. “Since landfall, we’ve had boots on the ground, helping our insureds in their time of need. As we recently disclosed, our portfolio is underweight in the most impacted regions and is further cushioned by our high proportion of condo unit and renters policies, which provide interior and contents coverage. To date, claims volume from Hurricane Ian reflects approximately 50% of Irma’s volume received at this point. We maintain one of the largest claims and legal teams in the state of Florida, providing us with significant resources and capacity to efficiently close Ian-related claims. Despite our $1 billion estimated gross loss from Hurricane Ian, we have a $3 billion reinsurance tower in place for a subsequent event in the 2022 Atlantic hurricane season and our consolidated retention would be meaningfully lower, highlighting the strength and breadth of our catastrophe reinsurance program. We’ve started the planning process for the 2023 Atlantic hurricane season and are already well underway, as we have almost $400 million of pre-negotiated multi-year capacity below the Florida Hurricane Catastrophe Fund’s (FHCF) attachment point, approximately $200 million of estimated cost free coverage from the Reinsurance to Assist Policyholders (RAP) program and a projected $150 million from our catastrophe bond. Coupled with our 90% participation in the FHCF, we estimate that the vast majority of our first event 2023 catastrophe reinsurance program will be insulated from open market pricing dynamics. We value our reinsurance partner relationships and appreciate their support.”
*Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables.
Quarterly Financial Results
Summary Financial Results
($thousands, except per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
2022
2021
Change
2022
2021
Change
GAAP comparison
Total revenues
$
312,810
$
287,254
8.9
%
$
892,298
$
829,192
7.6
%
GAAP operating income (loss)$
(91,607
)
$
26,493
NM
$
(55,117
)
$
92,958
NM
GAAP operating income (loss) margin
(29.3
)%
9.2
%
NM
(6.2
)%
11.2
%
NM
Net income (loss)
$
(72,275
)
$
20,183
NM
$
(47,368
)
$
68,532
NM
Diluted earnings (loss) per common share
$
(2.36
)
$
0.64
NM
$
(1.54
)
$
2.19
NM
Annualized ROCE
NM*
16.6
%
NM
(18.3
)%
19.4
%
NM
Book value per share, end of period
$
8.54
$
15.86
(46.2
)%
8.54
$
15.86
(46.2
)%
Non-GAAP comparison1
Core revenue
$
316,668
$
286,694
10.5
%
$
909,103
$
826,859
9.9
%
Adjusted operating income (loss)
$
(87,749
)
$
25,933
NM
$
(38,312
)
$
90,625
NM
Adjusted operating income (loss) margin
(27.7
)%
9.0
%
NM
(4.2
)%
11.0
%
NM
Adjusted net income (loss)
$
(69,369
)
$
19,751
NM
$
(34,705
)
$
66,736
NM
Adjusted diluted earnings (loss) per common share
$
(2.27
)
$
0.63
NM
$
(1.12
)
$
2.13
NM
Annualized adjusted ROCE
NM*
16.0
%
NM
(11.1
)%
18.8
%
NM
Adjusted book value per share, end of period
$
12.33
$
16.09
(23.4
)%
$
12.33
$
16.09
(23.4
)%
Underwriting Summary
Premiums:
Premiums in force
$
1,833,034
$
1,649,546
11.1
%
$
1,833,034
$
1,649,546
11.1
%
Policies in force
872,926
967,821
(9.8
)%
872,926
967,821
(9.8
)%
Direct premiums written
$
500,677
$
432,984
15.6
%
$
1,429,685
$
1,271,925
12.4
%
Direct premiums earned
$
452,450
$
410,621
10.2
%
$
1,295,858
$
1,178,801
9.9
%
Ceded premiums earned
$
(161,819
)
$
(145,967
)
10.9
%
$
(459,102
)
$
(414,670
)
10.7
%
Ceded premium ratio
35.8
%
35.5
%
0.3
pts
35.4
%
35.2
%
0.2
pts
Net premiums earned
$
290,631
$
264,654
9.8
%
$
836,756
$
764,131
9.5
%
Net ratios:
Loss ratio
113.7
%
70.9
%
42.8
pts
85.5
%
65.3
%
20.2
pts
Expense ratio
25.5
%
27.6
%
(2.1
) pts
27.7
%
31.1
%
(3.4
) pts
Combined ratio
139.2
%
98.5
%
40.7
pts
113.2
%
96.4
%
16.8
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.
*Not meaningful, as it implies full first event hurricane retentions in the first two quarters of the year, which in actuality were hurricane free, and it similarly implies a full first event retention in the fourth quarter of the year, which would instead be subject to a smaller subsequent event retention on a consolidated basis.
Net Income and Adjusted Net Income
Net loss was $72.3 million, down from net income of $20.2 million in the prior year quarter, and adjusted net loss was $69.4 million, down from adjusted net income of $19.8 million in the prior year quarter. The decline in adjusted net income mostly stems from $111.0 million of retained Hurricane Ian losses, partly offset by a lower net expense ratio and higher net investment income and commission revenue.
Revenues
Overall revenue was $312.8 million, up 8.9% from the prior year quarter and core revenue was $316.7 million, up 10.5% 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 $500.7 million, up 15.6% from the prior year quarter. The increase stems from 16.3% growth in Florida and 12.7% growth in other states. Overall growth reflects rate increases, partly offset by lower policies in force.
Direct premiums earned were $452.5 million, up 10.2% 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 35.8%, up from 35.5% in the prior year quarter. The increase primarily reflects 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 $290.6 million, up 9.8% 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 $6.1 million, up from $2.8 million in the prior year quarter. The increase primarily stems from higher fixed income reinvestment yields.
Commissions, policy fees and other revenue were $20.0 million, up 3.7% 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 loss margin was 29.3%, down from a GAAP operating income margin of 9.2% in the prior year quarter and the adjusted operating loss margin was 27.7%, down from an adjusted operating income margin of 9.0% in the prior year quarter. The lower adjusted operating income margin primarily reflects a higher net combined ratio, partly offset by higher net investment income and commission revenues.
The net loss ratio was 113.7%, up 42.8 points compared to the prior year quarter. The increase primarily reflects $111.0 million of retained Hurricane Ian losses and a higher attritional initial accident year loss pick, partly offset by lower adverse prior year reserve development as a percentage of net premiums earned.
The net expense ratio was 25.5%, down 2.1 points from 27.6% in the prior year quarter. The reduction primarily reflects lower renewal commission rates paid to distribution partners.
The net combined ratio was 139.2%, up 40.7 points compared to the prior year quarter. The increase reflects a higher net loss ratio, partly offset by a lower net expense ratio, as described above.
Capital Deployment
During the third quarter, the Company repurchased approximately 203 thousand shares at an aggregate cost of $2.4 million. The Company’s current share repurchase authorization program has $8.0 million remaining as of September 30, 2022 and runs through November 3, 2022.
On July 19, 2022, the Board of Directors declared a quarterly cash dividend of 16 cents per share of common stock, payable on August 9, 2022, to shareholders of record as of the close of business on August 2, 2022.
Conference Call and Webcast
Friday, October 28, 2022 at 10:00 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/BI7c74886531b54cae98488e2125328182. 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 Quarterly Report on Form 10-Q for the quarter ended September 30, 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 2021 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)
September 30,
December 31,
2022
2021
ASSETS:
Invested Assets
Fixed maturities, at fair value
$
996,783
$
1,040,455
Equity securities, at fair value
82,387
47,334
Investment real estate, net
5,752
5,891
Total invested assets
1,084,922
1,093,680
Cash and cash equivalents
307,435
250,508
Restricted cash and cash equivalents
2,703
2,635
Prepaid reinsurance premiums
452,230
240,993
Reinsurance recoverable
935,810
185,589
Premiums receivable, net
79,621
64,923
Property and equipment, net
52,769
53,682
Deferred policy acquisition costs
111,861
108,822
Goodwill
2,319
2,319
Other assets
97,224
52,990
TOTAL ASSETS
$
3,126,894
$
2,056,141
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Unpaid losses and loss adjustment expenses
$
1,153,627
$
346,216
Unearned premiums
991,596
857,769
Advance premium
78,269
53,694
Reinsurance payable, net
458,865
188,662
Long-term debt, net
102,968
103,676
Other liabilities
80,932
76,422
Total liabilities
2,866,257
1,626,439
STOCKHOLDERS' EQUITY:
Cumulative convertible preferred stock ($0.01 par value)2
—
—
Common stock ($0.01 par value)3
471
470
Treasury shares, at cost - 16,603 and 15,797
(236,915
)
(227,115
)
Additional paid-in capital
111,397
108,202
Accumulated other comprehensive income (loss), net of taxes
(115,665
)
(15,568
)
Retained earnings
501,349
563,713
Total stockholders' equity
260,637
429,702
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
3,126,894
$
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 - 47,116 and 47,018 shares; Outstanding 30,513 and 31,221 shares.
UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
REVENUES
Net premiums earned
$
290,631
$
264,654
$
836,756
$
764,131
Net investment income
6,074
2,797
15,337
8,641
Net realized gains (losses) on investments
292
4,319
(375
)
5,357
Net change in unrealized gains (losses) of equity securities
(4,150
)
(3,759
)
(16,430
)
(3,024
)
Commission revenue
12,592
11,418
35,157
30,404
Policy fees
5,272
5,859
15,991
17,821
Other revenue
2,099
1,966
5,862
5,862
Total revenues
312,810
287,254
892,298
829,192
EXPENSES
Losses and loss adjustment expenses
330,444
187,581
715,854
498,765
Policy acquisition costs
54,609
57,062
163,432
170,287
Other operating expenses
19,364
16,118
68,129
67,182
Total operating costs and expenses
404,417
260,761
947,415
736,234
Interest and amortization of debt issuance costs
1,630
29
4,969
84
Income (loss) before income taxes
(93,237
)
26,464
(60,086
)
92,874
Income tax expense (benefit)
(20,962
)
6,281
(12,718
)
24,342
NET INCOME (LOSS)
$
(72,275
)
$
20,183
$
(47,368
)
$
68,532
UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
SHARE AND PER SHARE INFORMATION
(in thousands, except per share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
Weighted average common shares outstanding - basic
30,604
31,247
30,858
31,232
Weighted average common shares outstanding - diluted
30,604
31,337
30,858
31,302
Shares outstanding, end of period
30,513
31,167
30,513
31,167
Basic earnings (loss) per common share
$
(2.36
)
$
0.65
$
(1.54
)
$
2.19
Diluted earnings (loss) per common share
$
(2.36
)
$
0.64
$
(1.54
)
$
2.19
Cash dividend declared per common share
$
0.16
$
0.16
$
0.48
$
0.48
Book value per share, end of period
$
8.54
$
15.86
$
8.54
$
15.86
Annualized return on average common equity (ROCE)
NM*
16.6
%
(18.3
)%
19.4
%
*Not meaningful, as it implies full first event hurricane retentions in the first two quarters of the year, which in actuality were hurricane free, and it similarly implies a full first event retention in the fourth quarter of the year, which would instead be subject to a smaller subsequent event retention on a consolidated basis.
UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
SUPPLEMENTARY INFORMATION
(in thousands, except for Policies In Force data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
Premiums
Direct premiums written - Florida
$
412,588
$
354,799
$
1,200,193
$
1,062,180
Direct premiums written - Other States
88,089
78,185
229,492
209,745
Direct premiums written - Total
$
500,677
$
432,984
$
1,429,685
$
1,271,925
Direct premiums earned
$
452,450
$
410,621
$
1,295,858
$
1,178,801
Net premiums earned
$
290,631
$
264,654
$
836,756
$
764,131
Underwriting Ratios - Net
Loss and loss adjustment expense ratio
113.7
%
70.9
%
85.5
%
65.3
%
Policy acquisition cost ratio
18.8
%
21.5
%
19.5
%
22.3
%
Other operating expense ratio
6.7
%
6.1
%
8.2
%
8.8
%
Expense ratio
25.5
%
27.6
%
27.7
%
31.1
%
Combined ratio
139.2
%
98.5
%
113.2
%
96.4
%
Other Items
(Favorable)/Unfavorable prior year's reserve development
$
2,715
$
11,489
$
7,080
$
17,983
Points on the loss and loss adjustment expense ratio
0.9
pts
4.4
pts
0.8
pts
2.4
pts
As of
September 30,
2022
2021
Policies in force
Florida
636,883
716,767
Other States
236,043
251,054
Total
872,926
967,821
Premiums in force
Florida
$
1,529,632
$
1,371,760
Other States
303,402
277,786
Total
$
1,833,034
$
1,649,546
Total Insured Value
Florida
$
203,957,272
$
204,334,645
Other States
120,648,594
114,992,734
Total
$
324,605,866
$
319,327,379
Three Months Ended September 30, 2022
Direct
Loss Ratio
Ceded
Loss Ratio
Net
Loss Ratio
Premiums earned
$
452,450
$
161,819
$
290,631
Loss and loss adjustment expenses:
Core losses
$
216,784
47.9
%
$
55
—
%
$
216,729
74.6
%
Weather events4
1,026,200
226.8
%
915,200
565.6
%
111,000
38.2
%
Prior year’s reserve development
26,360
5.9
%
23,645
14.6
%
2,715
0.9
%
Total losses and loss adjustment expenses
$
1,269,344
280.6
%
$
938,900
580.2
%
$
330,444
113.7
%
4 Includes only current year weather events beyond those expected.
Three Months Ended September 30, 2021
Direct
Loss Ratio
Ceded
Loss Ratio
Net
Loss Ratio
Premiums earned
$
410,621
145,967
$
264,654
Loss and loss adjustment expenses:
Core losses
$
176,161
42.9
%
$
69
—
%
$
176,092
66.5
%
Weather events4
—
—
%
—
—
%
—
—
%
Prior year’s reserve development
87,907
21.4
%
76,418
52.4
%
11,489
4.4
%
Total losses and loss adjustment expenses
$
264,068
64.3
%
$
76,487
52.4
%
$
187,581
70.9
%
4 Includes only current year weather events beyond those expected.
Nine Months Ended September 30, 2022
Direct
Loss Ratio
Ceded
Loss Ratio
Net
Loss Ratio
Premiums earned
$
1,295,858
$
459,102
$
836,756
Loss and loss adjustment expenses:
Core losses
$
593,364
45.8
%
$
135
—
%
$
593,229
70.9
%
Weather events4
1,030,745
79.5
%
915,200
199.3
%
115,545
13.8
%
Prior year’s reserve development
100,620
7.8
%
93,540
20.4
%
7,080
0.8
%
Total losses and loss adjustment expenses
$
1,724,729
133.1
%
$
1,008,875
219.7
%
$
715,854
85.5
%
4 Includes only current year weather events beyond those expected.
Nine Months Ended September 30, 2021
Direct
Loss Ratio
Ceded
Loss Ratio
Net
Loss Ratio
Premiums earned
$
1,178,801
$
414,670
$
764,131
Loss and loss adjustment expenses:
Core losses
$
480,801
40.8
%
$
19
—
%
$
480,782
62.9
%
Weather events4
—
—
%
—
—
%
—
—
%
Prior year’s reserve development
296,867
25.2
%
278,884
67.3
%
17,983
2.4
%
Total losses and loss adjustment expenses
$
777,668
66.0
%
$
278,903
67.3
%
$
498,765
65.3
%
4 Includes only current year weather events beyond those expected.
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
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
GAAP revenue
$
312,810
$
287,254
$
892,298
$
829,192
less: Net realized gains (losses) on investments
292
4,319
(375
)
5,357
less: Net change in unrealized gains (losses) of equity securities
(4,150
)
(3,759
)
(16,430
)
(3,024
)
Core revenue
$
316,668
$
286,694
$
909,103
$
826,859
GAAP income (loss) before income taxes to adjusted operating income (loss)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
GAAP income (loss) before income taxes
$
(93,237
)
$
26,464
$
(60,086
)
$
92,874
add: Interest and amortization of debt issuance costs
1,630
29
4,969
84
GAAP operating income (loss)
(91,607
)
26,493
(55,117
)
92,958
less: Net realized gains (losses) on investments
292
4,319
(375
)
5,357
less: Net change in unrealized gains (losses) of equity securities
(4,150
)
(3,759
)
(16,430
)
(3,024
)
Adjusted operating income (loss)
$
(87,749
)
$
25,933
$
(38,312
)
$
90,625
GAAP operating income (loss) margin to adjusted operating income (loss) margin
Three Months Ended
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
GAAP operating income (loss) (a)
$
(91,607
)
$
26,493
$
(55,117
)
$
92,958
GAAP revenue (b)
312,810
287,254
892,298
829,192
GAAP operating income (loss) margin (a÷b)
(29.3
)%
9.2
%
(6.2
)%
11.2
%
Adjusted operating income (loss) (c)
(87,749
)
25,933
(38,312
)
90,625
Core revenue (d)
316,668
286,694
909,103
826,859
Adjusted operating income (loss) margin (c÷d)
(27.7
)%
9.0
%
(4.2
)%
11.0
%
GAAP net income (loss) (NI) to adjusted NI (loss) available to common stockholders
Three Months Ended
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
GAAP NI (loss)
$
(72,275
)
$
20,183
$
(47,368
)
$
68,532
less: Preferred dividends
3
3
8
8
GAAP NI (loss) available to common stockholders (e)
(72,278
)
20,180
(47,376
)
68,524
less: Net realized gains (losses) on investments
292
4,319
(375
)
5,357
less: Net change in unrealized gains (losses) of equity securities
(4,150
)
(3,759
)
(16,430
)
(3,024
)
add: Income tax effect on above adjustments
(949
)
131
(4,134
)
545
Adjusted NI (loss) available to common stockholders (f)
$
(69,369
)
$
19,751
$
(34,705
)
$
66,736
Weighted average diluted common shares outstanding (g)
30,604
31,337
30,858
31,302
Diluted earnings (loss) per common share (e÷g)
$
(2.36
)
$
0.64
$
(1.54
)
$
2.19
Diluted adjusted earnings (loss) per common share (f÷g)
$
(2.27
)
$
0.63
$
(1.12
)
$
2.13
GAAP stockholders’ equity to adjusted common stockholders’ equity
As of
September 30,
September 30,
December 31,
2022
2021
2021
GAAP stockholders’ equity
$
260,637
$
494,275
$
429,702
less: Preferred equity
100
100
100
Common stockholders’ equity (h)
260,537
494,175
429,602
less: Accumulated other comprehensive (loss), net of taxes
(115,665
)
(7,398
)
(15,568
)
Adjusted common stockholders’ equity (i)
$
376,202
$
501,573
$
445,170
Shares outstanding (j)
30,513
31,167
31,221
Book value per common share (h÷j)
$
8.54
$
15.86
$
13.76
Adjusted book value per common share (i÷j)
$
12.33
$
16.09
$
14.26
GAAP return on common equity (ROCE) to adjusted ROCE
Three Months Ended
Nine Months Ended
Year Ended
September 30,
September 30,
December 31,
2022
2021
2022
2021
2021
Annualized NI (loss) attributable to common stockholders (k)
$
(289,112
)
$
80,720
$
(63,168
)
$
91,365
$
20,397
Average common stockholders’ equity (l)
313,494
487,459
345,070
471,669
439,382
ROCE (k÷l)
NM*
16.6
%
(18.3
)%
19.4
%
4.6
%
Annualized adjusted NI (loss) attributable to common stockholders (m)
$
(277,476
)
$
79,004
$
(46,273
)
$
88,981
$
18,959
Adjusted average common stockholders’ equity5 (n)
416,848
493,729
417,022
472,802
444,775
Adjusted ROCE (m÷n)
NM*
16.0
%
(11.1
)%
18.8
%
4.3
%
5 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.
*Not meaningful, as it implies full first event hurricane retentions in the first two quarters of the year, which in actuality were hurricane free, and it similarly implies a full first event retention in the fourth quarter of the year, which would instead be subject to a smaller subsequent event retention on a consolidated basis.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221027005749/en/