Universal Insurance Holdings Files Q3 2024 10-Q

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

Sentiment: neutral

Topics: 10-Q, insurance, financials, quarterly-report

TL;DR

**UNI Q3 10-Q filed. Financials and equity changes detailed. Check for performance trends.**

AI Summary

Universal Insurance Holdings, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter and the first nine months of the year. Key financial figures and changes in equity accounts are presented, reflecting the company's ongoing business activities.

Why It Matters

This filing provides investors and analysts with the latest financial health and performance data for Universal Insurance Holdings, Inc., crucial for understanding its current market position and future prospects.

Risk Assessment

Risk Level: medium — As a publicly traded insurance company, Universal Insurance Holdings, Inc. is subject to market, regulatory, and economic risks inherent in the financial services sector.

Key Numbers

Key Players & Entities

FAQ

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

Universal Insurance Holdings, Inc. is primarily involved in the FIRE, MARINE & CASUALTY INSURANCE industry, as indicated by its SIC code [6331].

For what period is this 10-Q filing?

This 10-Q filing is for the period ending September 30, 2024.

When was this 10-Q report filed with the SEC?

The report was filed on October 30, 2024.

What is the company's principal place of business?

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

What are the key financial periods covered by the data presented in the filing?

The filing covers the third quarter of 2024 (July 1 to September 30, 2024), the year-to-date period of 2024 (January 1 to September 30, 2024), and comparative periods from 2023.

Filing Stats: 4,837 words · 19 min read · ~16 pages · Grade level 15.6 · Accepted 2024-10-30 16:16:28

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 September 30, 2024 and December 31, 2023 (unaudited) 4 Condensed Consolidated Statements of Income for the three and nine -month periods ended September 30, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Comprehensive Income fo r the three and nine -month periods ended September 30, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Stockholders' Equity for the three and nine -month periods ended September 30, 2024 and 2023 (unaudited) 6 Condensed Consolidated Statements of Cash Flows for the nine -month periods ended September 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 33 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 61 Item 4.

Controls and Procedures

Controls and Procedures 62

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 62 Item 1A.

Risk Factors

Risk Factors 62 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 62 Item 5. Other Information 64 Item 6. Exhibits 65

Signatures

Signatures 66 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 September 30, 2024 and the related condensed consolidated statements of income, comprehensive income, and stockholders' equity for the three-month and nine-month periods ended September 30, 2024 and 2023 and the related condensed consolidated statement of cash flows for the nine-month periods ended September 30, 2024 and 2023. Based on our reviews, 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 condensed 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 st

— 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 September 30, December 31, 2024 2023 ASSETS Available-for-sale debt securities, at fair value, net of allowance for credit loss of $ 558 and $ 566 (amortized cost: $ 1,337,397 and $ 1,162,919 ) $ 1,276,732 $ 1,064,330 Equity securities, at fair value (cost: $ 79,917 and $ 91,052 ) 79,470 80,495 Other investments, at fair value (cost: $ 4,794 and $ 4,794 ) 12,248 10,434 Investment real estate, net 5,618 5,525 Total invested assets 1,374,068 1,160,784 Cash and cash equivalents 333,678 397,306 Restricted cash and cash equivalents 68,635 2,635 Prepaid reinsurance premiums 418,834 236,254 Reinsurance recoverable 130,124 219,102 Premiums receivable, net 92,400 77,064 Property and equipment, net 49,358 47,628 Deferred policy acquisition costs 125,305 109,985 Income taxes recoverable 7,480 — Deferred income tax asset, net 23,683 43,175 Other assets 26,953 22,628 Total assets $ 2,650,518 $ 2,316,561 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES: Unpaid losses and loss adjustment expenses $ 460,437 $ 510,117 Unearned premiums 1,108,890 990,559 Advance premium 71,700 48,660 Book overdraft — 14,597 Reinsurance payable, net 420,282 191,850 Commission payable 25,763 20,989 Income taxes payable — 5,886 Other liabilities and accrued expenses 61,767 90,600 Long-term debt, net 101,434 102,006 Total liabilities 2,250,273 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 - 28,286 and 28,966 Treasury shares

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