Universal Insurance Holdings Q2 2024 10-Q Filed

Ticker: UVE · Form: 10-Q · Filed: Jul 30, 2024 · CIK: 891166

Sentiment: neutral

Topics: 10-Q, insurance, financials

TL;DR

**Universal Insurance Holdings Q2 2024 10-Q is in. Check financials.**

AI Summary

Universal Insurance Holdings, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial figures and business activities are presented, reflecting the company's status in the fire, marine, and casualty insurance sector.

Why It Matters

This filing provides investors and stakeholders with the latest financial health and operational performance of Universal Insurance Holdings, Inc. as of the second quarter of 2024.

Risk Assessment

Risk Level: medium — As an insurance company, Universal Insurance Holdings is subject to regulatory changes, market volatility, and claims fluctuations, which can impact financial performance.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of Universal Insurance Holdings, Inc.?

Universal Insurance Holdings, Inc. operates in the FIRE, MARINE & CASUALTY INSURANCE sector, as indicated by its SIC code [6331].

What period does this 10-Q filing cover?

This 10-Q filing covers the period ending on June 30, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed on July 30, 2024.

What is the company's principal business address?

The company's business address is 1110 W. COMMERCIAL BLVD., SUITE 100, FORT LAUDERDALE, FL 33309.

What is the company's fiscal year end?

The company's fiscal year ends on December 31.

Filing Stats: 4,753 words · 19 min read · ~16 pages · Grade level 15.7 · Accepted 2024-07-30 16:17:23

Key Financial Figures

Filing Documents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Page No. Item 1.

Financial Statements

Financial Statements: 4 Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 (unaudited) 4 Condensed Consolidated Statements of Income for the three and six -month periods ended June 30, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Comprehensive Income fo r the three and six -month periods ended June 30, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Stockholders' Equity for the three and six -month periods ended June 30, 2024 and 2023 (unaudited) 6 Condensed Consolidated Statements of Cash Flows for the six -month periods ended June 30, 2024 and 2023 (unaudited) 8 Notes to Condensed Consolidated Financial Statements (unaudited) 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 62 Item 4.

Controls and Procedures

Controls and Procedures 63

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 63 Item 1A.

Risk Factors

Risk Factors 63 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 63 Item 5 . Other Information 65 Item 6. Exhibits 66

Signatures

Signatures 67 2 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Universal Insurance Holdings, Inc. Fort Lauderdale, Florida RESULTS OF REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS We have reviewed the accompanying condensed consolidated balance sheet of Universal Insurance Holdings, Inc. and its wholly-owned subsidiaries (the "Company") as of June 30, 2024 and the related condensed consolidated statements of income, comprehensive income, and stockholders' equity for the three-month and six-month periods ended June 30, 2024 and 2023 and the related condensed consolidated statement of cash flows for the six-month periods ended June 30, 2024 and 2023. Based on our review, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America. We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) ("PCAOB"), the consolidated balance sheet of Universal Insurance Holdings, Inc. as of December 31, 2023 and the related consolidated statements of income, comprehensive income, stockholders' equity and cash flows for the year then ended (not presented herein) and we expressed an unqualified audit opinion on those consolidated financial statements in our report dated February 28, 2024. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2023, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. BASIS FOR REVIEW RESULTS These interim financial statements are the responsibility of the Company's management. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principal

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except per share data) As of June 30, December 31, 2024 2023 ASSETS Available-for-sale debt securities, at fair value, net of allowance for credit loss of $ 716 and $ 566 (amortized cost: $ 1,316,419 and $ 1,162,919 ) $ 1,215,630 $ 1,064,330 Equity securities, at fair value (cost: $ 81,881 and $ 91,052 ) 75,834 80,495 Other investments, at fair value (cost: $ 4,794 and $ 4,794 ) 10,434 10,434 Investment real estate, net 5,523 5,525 Total invested assets 1,307,421 1,160,784 Cash and cash equivalents 283,264 397,306 Restricted cash and cash equivalents 68,635 2,635 Prepaid reinsurance premiums 575,620 236,254 Reinsurance recoverable 130,900 219,102 Premiums receivable, net 87,169 77,064 Property and equipment, net 49,306 47,628 Deferred policy acquisition costs 117,144 109,985 Income taxes recoverable 5,542 — Deferred income tax asset, net 24,687 43,175 Other assets 28,847 22,628 Total assets $ 2,678,535 $ 2,316,561 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES: Unpaid losses and loss adjustment expenses $ 344,648 $ 510,117 Unearned premiums 1,042,283 990,559 Advance premium 73,402 48,660 Book overdraft — 14,597 Reinsurance payable, net 648,961 191,850 Commission payable 27,087 20,989 Income taxes payable — 5,886 Other liabilities and accrued expenses 47,292 90,600 Long-term debt, net 101,625 102,006 Total liabilities 2,285,298 1,975,264 Commitments and Contingencies (Note 12) STOCKHOLDERS' EQUITY: Cumulative convertible preferred stock, $ 0.01 par value — — Authorized shares - 1,000 Issued shares - 10 and 10 Outstanding shares - 10 and 10 Minimum liquidation preference, $ 9.99 and $ 9.99 per share Common stock, $ 0.01 par value 472 472 Authorized shares - 55,000 Issued shares - 47,298 and 47,269 Outstanding shares - 28,513 and 28,966 Treasury shares, at

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