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Dec 31, 2022
Universal Insurance Q4 2022 Earnings Report
Universal Insurance reported mixed results for Q4 2022, with increased revenues but a high combined ratio.
Key Takeaways
Universal Insurance Holdings reported a net income of $25.1 million for Q4 2022, compared to a net loss of $48.1 million in the prior year quarter. Total revenues increased by 12.9% to $330.4 million. The net combined ratio was 101.4%, down from 131.4% in the prior year quarter.
Diluted GAAP EPS was $0.82, while adjusted EPS was $0.72.
Book value per share increased to $9.47, up 10.9% from Q3 2022.
Net combined ratio improved to 101.4%, a decrease from 131.4% in the prior year quarter.
Direct premiums written rose to $416.1 million, a 4.2% increase year-over-year.
Revenue by Geographic Location
Forward Guidance
The company did not provide specific forward guidance in this earnings report. However, the CEO expressed confidence that the legislative reforms would restore the health of the market over the long term.
Positive Outlook
- Meaningful reforms passed at the recent special legislative session.
- Elimination of one-way attorney fees and assignment-of-benefits.
- Shortening the claims filing deadline to one year.
- Taking steps to reduce the competitiveness of Citizens.
- Differentiated business model, solid balance sheet and strong reinsurer relationships.
Challenges Ahead
- Florida homeowners insurance market has faced significant challenges.
- It will take time for the reforms to benefit results.
- Higher reinsurance pricing.
- Higher reinsurance costs associated with the increase in insured values.
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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