Universal Ins Hldgs Inc Stock Price, News & Analysis

Universal Insurance Holdings (NYSE: UVE) has appointed Arash Soleimani as Chief Strategy Officer and promoted Rob Luther to Chief Investment Officer, along with Gary Ropiecki as Principal Accounting Officer. Soleimani will lead strategy and investor relations, while Luther will manage the $1B+ investment portfolio. Ropiecki will oversee enterprise-wide accounting functions. CEO Steve Donaghy emphasized the importance of these appointments for the company's strategic objectives and long-term success.

Universal Insurance Holdings (NYSE: UVE) reported a significant increase in direct premiums for 4Q21, up 11.5%, and FY21, up 14.4%, primarily due to rate increases. However, 4Q21 GAAP diluted EPS was $(1.54), reflecting inflationary pressures. The company achieved approximately $1.7 billion in premiums in force and a return on average equity of 4.6%. Clovered.com, a subsidiary, surpassed $40 million in placed premiums in 2021. The company has initiated guidance for FY22 with projected EPS between $1.80 and $2.20.

Universal Insurance Holdings (UVE) will release its fourth-quarter results on February 24, 2022, after NYSE trading ends. A conference call will follow on February 25, 2022, at 9:00 a.m. ET, to discuss financial results. Investors can dial in or listen via a webcast at UniversalInsuranceHoldings.com. A replay will be available until March 12, 2022. UVE primarily offers property and casualty insurance services across 19 states, focusing on personal residential homeowners' lines.

Universal Insurance Holdings (NYSE: UVE) has declared a quarterly cash dividend of 16 cents per share, payable on March 17, 2022, to shareholders of record by March 10, 2022. The company faced inflationary pressures, leading to a conservative reserve strategy that included an estimated $30.7 million strengthening of reserves for the 2021 accident year. Overall, the fourth quarter is expected to impact net income by approximately $80.1 million after-tax, impacting the full-year combined ratio significantly.

Universal Insurance Holdings (NYSE: UVE) has joined the U.S. Environmental Protection Agency’s Green Power Partnership, committing to use 652,000 kilowatt-hours of green power annually, equating to 25% of its electricity consumption. This initiative aims to advance the green power market while reducing air pollution and greenhouse gas emissions. CEO Stephen Donaghy emphasized the importance of green power as an affordable choice for organizations. The EPA praised UVE's leadership, acknowledging its green power usage reduces emissions equivalent to 1,161,251 vehicle miles or 510,708 pounds of coal burned.

Universal Insurance Holdings (NYSE: UVE) announced the successful completion of a $100 million private placement of 5.625% senior unsecured notes due 2026. The offering was upsized and oversubscribed, reflecting strong demand from institutional investors. The proceeds will support general corporate purposes and growth capital, particularly as rate increases continue to benefit the company's business. Notable financial partners included Piper Sandler & Co. as placement agent. The Notes are not registered under the Securities Act, limiting their resale without registration.

Universal Insurance Holdings, Inc. (NYSE: UVE) has declared a quarterly cash dividend totaling 29 cents per share, which includes a regular dividend of 16 cents and a special dividend of 13 cents. This dividend will be payable on December 17, 2021, to shareholders on record as of December 10, 2021. This announcement marks over 10 years of consistently declaring a special dividend in the fourth quarter. The total dividends declared for 2021 amount to 77 cents per share.

Universal Insurance Holdings (NYSE: UVE) reported Q3 2021 diluted GAAP EPS of $0.64 and non-GAAP adjusted EPS of $0.63, with direct premiums earned increasing by 15.0% to $410.6 million. The annualized return on average equity was 16.4%, driven by primary rate increases in Florida. However, total revenue declined by 7.8% due to reduced investment gains. The combined ratio improved significantly to 98.6% from 134.7%, aided by better expense management and fewer adverse weather events. The company maintains its 2021 EPS guidance of $2.75 to $3.00.

Universal Insurance Holdings (NYSE: UVE) is set to release its third-quarter results after the market closes on October 27, 2021. A conference call will follow on October 28, 2021, at 9:00 a.m. ET, to discuss financial outcomes. UVE specializes in property and casualty insurance, primarily focused on personal residential homeowners lines, and operates in 19 states, mainly in Florida. Investors can access the live call via telephone or through a webcast on their website.