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Sep 30, 2020
Universal Insurance Q3 2020 Earnings Report
Reported third quarter diluted EPS of $(0.10) on a GAAP basis and $(1.43) non-GAAP adjusted EPS1.
Key Takeaways
Universal Insurance Holdings reported a 35.7% increase in total revenue to $311.7 million compared to the year-ago quarter. However, the company experienced a GAAP diluted EPS of $(0.10) and a non-GAAP adjusted EPS of $(1.43) due to elevated industry-wide weather events and prior year's reserve development. Despite these challenges, the company achieved a year-to-date annualized return on average equity of 10.0%.
Total revenue increased by 35.7% to $311.7 million in 3Q20.
Direct premiums written grew by 19.4% in 3Q20.
GAAP diluted earnings per share (EPS) was $(0.10), while non-GAAP adjusted EPS was $(1.43).
Book value per share increased 0.1% since the end of 2019 to $15.15.
Revenue by Geographic Location
Forward Guidance
The Company is updating its guidance for 2020 to reflect increased top line revenue, offset by elevated third quarter loss and LAE (assuming no further extraordinary weather events and no realized or unrealized gains in 4Q20)
Positive Outlook
- GAAP EPS in a range of $1.80 - $2.10 (reduced from previous range of $2.31 - $2.61)
- Non-GAAP Adjusted EPS in a range of $0.55 - $0.85 (reduced from previous range of $2.40 - $2.70)
- Annualized return on average equity (derived from GAAP measures) in a range of 11.1% - 14.1% (reduced from previous range of 13.5% - 16.5%)
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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