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Universal Insurance (UVE)

Universal Insurance Holdings (UVE) is a holding company offering property and casualty insurance and value-added insurance services. The company develops, markets, and writes insurance products for consumers predominantly in the personal residential homeowners lines of business and performs substantially all other insurance-related services for its primary insurance entities, including risk management, claims management and distribution. The company sells insurance products through both its appointed independent agents and through its direct online distribution channels in the United States across 19 states (primarily Florida).

Company profile

Ticker
UVE
Exchange
CEO
Stephen Donaghy
Employees
Incorporated
Location
Fiscal year end
Former names
UNIVERSAL HEIGHTS INC, UNIVERSAL INSURANCE HOLDINGS INC
SEC CIK
Subsidiaries
Coastal Homeowners Insurance Specialists, Inc. • Tigerquote.com Insurance Solutions of Ohio, Inc. • Tigerquote.com Insurance Solutions of Pennsylvania, Inc. • Universal Adjusting Corporation • Assurance Systems, Inc. • Universal Inspection Corporation • Protection Solutions, Inc. • Universal Property & Casualty Insurance Company • Evolution Risk Advisors, Inc. • Oak90 Capital, Inc. ...
IRS number
650231984

UVE stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

2 May 22
2 Jul 22
31 Dec 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 168.03M 168.03M 168.03M 168.03M 168.03M 168.03M
Cash burn (monthly) 28.37M (no burn) (no burn) (no burn) 9.03M (no burn)
Cash used (since last report) 86.95M n/a n/a n/a 27.67M n/a
Cash remaining 81.09M n/a n/a n/a 140.37M n/a
Runway (months of cash) 2.9 n/a n/a n/a 15.5 n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
24 Jun 22 Downes Sean P Common Stock Sell Dispose S No No 12.93 20,000 258.6K 1,401,539
14 Jun 22 Downes Sean P Common Stock Grant Acquire A No No 0 41,017 0 1,421,539
10 Jun 22 Scott P. Callahan Common Stock Grant Acquire A No No 0 5,337 0 13,873
10 Jun 22 Marlene Gordon Common Stock Grant Acquire A No No 0 5,337 0 12,337
10 Jun 22 Francis Xavier McCahill III Common Stock Grant Acquire A No No 0 5,337 0 10,337
67.4% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 134 137 -2.2%
Opened positions 21 21
Closed positions 24 12 +100.0%
Increased positions 49 46 +6.5%
Reduced positions 44 39 +12.8%
13F shares Current Prev Q Change
Total value 281.05M 1.53B -81.6%
Total shares 20.85M 20.57M +1.4%
Total puts 36.3K 59.6K -39.1%
Total calls 17.8K 41.8K -57.4%
Total put/call ratio 2.0 1.4 +43.0%
Largest owners Shares Value Change
BLK Blackrock 4.51M $60.83M -0.0%
Vanguard 2.9M $39.15M -2.7%
Dimensional Fund Advisors 1.73M $23.3M +9.0%
LSV Asset Management 1.3M $17.52M +2.3%
STT State Street 1.2M $16.21M +22.4%
IVZ Invesco 1.17M $15.83M +28.9%
Donald Smith & Co. 896.05K $12.09M +14.2%
Geode Capital Management 495.57K $6.69M +4.7%
Bridgeway Capital Management 462.08K $6.23M +241.7%
Jacobs Levy Equity Management 427.62K $5.77M +63.5%
Largest transactions Shares Bought/sold Change
Arrowstreet Capital, Limited Partnership 0 -401.25K EXIT
Bridgeway Capital Management 462.08K +326.87K +241.7%
IVZ Invesco 1.17M +263.46K +28.9%
JPM JPMorgan Chase & Co. 14.84K -248.89K -94.4%
STT State Street 1.2M +219.72K +22.4%
Hillsdale Investment Management 0 -201.83K EXIT
Jacobs Levy Equity Management 427.62K +166.13K +63.5%
Dimensional Fund Advisors 1.73M +142.19K +9.0%
Renaissance Technologies 138.9K +138.9K NEW
Healthcare Of Ontario Pension Plan Trust Fund 0 -133.1K EXIT

Financial report summary

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Risks
  • RISKS RELATING TO OUR BUSINESS AND OPERATIONS
  • As a property and casualty insurer, we face significant losses when catastrophes and severe weather events occur.
  • Actual claims incurred have exceeded, and in the future may exceed, reserves established for claims, adversely affecting our operating results and financial condition.
  • When we fail to accurately and adequately price the risks we underwrite, we may not be able to generate sufficient premiums to pay losses and expenses and we may experience other negative impacts on our profitability and financial condition, including harm to our competitive position.
  • Unanticipated increases in the severity or frequency of claims adversely affect our profitability and financial condition.
  • The failure of the risk mitigation strategies we utilize could have a material adverse effect on our financial condition or results of operations.
  • Because we rely on independent insurance agents, the loss of these independent agent relationships and the business they control or our ability to attract new independent agents could have an adverse impact on our business.
  • We rely on models as a tool to evaluate risk, and those models are inherently uncertain and may not accurately predict existing or future losses.
  • Reinsurance may be unavailable in the future at reasonable levels and prices or on reasonable terms, which may limit our ability to write new business or to adequately mitigate our exposure to loss.
  • Reinsurance subjects us to the credit risk of our reinsurers, which could have a material adverse effect on our operating results and financial condition.
  • Our financial condition and operating results are subject to the cyclical nature of the property and casualty insurance business.
  • Because we conduct the majority of our business in Florida, our financial results depend on the regulatory, economic and weather conditions in Florida.
  • Changing climate conditions may adversely affect our financial condition, profitability or cash flows.
  • We have entered new markets and expect that we will continue to do so, but there can be no assurance that our diversification and growth strategy will be effective.
  • Our success depends, in part, on our ability to attract and retain talented employees, and the loss of any one of our key personnel could adversely impact our operations.
  • We could be adversely affected if our controls designed to ensure compliance with guidelines, policies and legal and regulatory standards are not effective.
  • The failure of our claims professionals to effectively manage claims could adversely affect our insurance business and financial results.
  • Litigation or regulatory actions could result in material settlements, judgments, fines or penalties and consequently have a material adverse impact on our financial condition and reputation.
  • Our future results are dependent in part on our ability to successfully operate in a highly competitive insurance industry.
  • A downgrade in our Financial Stability Rating® may have an adverse effect on our competitive position, the marketability of our product offerings, and our liquidity, operating results and financial condition.
  • Breaches of our information systems or denial of service on our website could have an adverse impact on our business and reputation.
  • We may not be able to effectively implement or adapt to changes in technology, which may result in interruptions to our business or a competitive disadvantage.
  • Lack of effectiveness of exclusions and other loss limitation methods in the insurance policies we write or changes in laws and/or potential regulatory approaches relating to them could have a material adverse effect on our financial condition or our results of operations.
  • RISKS RELATING TO INVESTMENTS
  • We are subject to market risk, which may adversely affect investment income.
  • Our overall financial performance depends in part on the returns on our investment portfolio.
  • RISKS RELATING TO THE INSURANCE INDUSTRY
  • We are subject to extensive regulation and potential further restrictive regulation may increase our operating costs and limit our growth and profitability.
  • UVE is a holding company and, consequently, its cash flow is dependent on dividends and other permissible payments from its subsidiaries.
  • Regulations limiting rate changes and requiring us to participate in loss sharing or assessments may decrease our profitability.
  • The amount of statutory capital and surplus that each of the Insurance Entities has and the amount of statutory capital and surplus it must hold vary and are sensitive to a number of factors outside of our control, including market conditions and the regulatory environment and rules.
  • RISKS RELATING TO DEBT OBLIGATIONS
  • To service our debt, we will require a significant amount of cash. Our ability to generate cash depends on many factors.
  • Our indebtedness could adversely affect our financial results and prevent us from fulfilling our obligations under the Notes.
Management Discussion
  • •Demotech, Inc. affirmed the Financial Stability Rating® of A, Exceptional for each of the Insurance Entities
  • First quarter of fiscal 2022 results of operations comparisons are to first quarter of fiscal 2021 (unless otherwise specified).
  • Net income for the three months ended March 31, 2022, was $17.5 million compared to $26.4 million for the same period in 2021. Weighted average diluted common shares outstanding for the three months ended March 31, 2022 were lower by 0.2% to 31.2 million shares from 31.3 million shares for the same period of the prior year. Diluted EPS for the three months ended March 31, 2022 was $0.56 compared to $0.84 for the same period in 2021. Benefiting the quarter were increases in premiums earned, net, an increase in commission revenue, and an increase in net investment income, partially offset by an increase in operating costs and expenses, a decrease in realized gains and an increase in unrealized losses on equity securities. Direct premium earned and premiums earned, net were up 10.4% and 10.6%, respectively, due to premium growth in 15 of the 19 states in which we are licensed and writing during the past 12 months as a result of rate increases implemented during 2021 and 2022. The net loss and LAE ratio was 68.8% for the three months ended March 31, 2022, compared to 59.2% for the same period in 2021 reflecting higher core losses, an increase in excess weather events beyond those expected, and higher prior years’ reserve development. As a result of the above and further explained below, the combined ratio for the three months ended March 31, 2022 was 97.9% compared to 93.1% for the three months ended March 31, 2021. Also see the discussion above under “Overview—Trends.”

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