United Insurance Holdings Corporation (UIHC) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $10.52 million, or $ 0.49 a share in the quarter, against a net profit of $13.80 million, or $0.64 a share in the last year period. Revenue during the quarter surged 31.40 percent to $131.43 million from $100.03 million in the previous year period. Net premium earned for the quarter increased 29.65 percent or $27.71 million to $121.16 million.
Total expenses increase substantiallyBenefits, losses and expenses for the quarter were at $149.03 million, or 123 percent of premium earned from $79.68 million or 85.26 percent of premium earned in the last year period. Operating loss for the quarter was $17.60 million, compared with an operating income of $20.35 million in the previous year period. Net investment income was at $2.89 million for the quarter, up 16.32 percent or $0.41 million from year-ago period. The company has recorded a gain on investments of $0.07 million in the quarter compared with a gain of $0.52 million for the previous year period.
"2016 was a year of accomplishment and challenge for us," said John Forney, president chief executive officer of UPC Insurance. "Continued robust organic growth, the strengthening of our claims team, and the pending merger with American Coastal all positioned us for a very bright future. However, catastrophe losses from Hurricane Matthew and many other smaller events, coupled with a very difficult noncat loss environment in Florida, hurt our bottom line results for Q4 and the full year. Nonetheless, I am proud of the efforts of our team, which is working hard every day so that our stakeholders can reap the benefits of what we are building at UPC."
Liabilities outpace assets growth
Total assets increased 34.36 percent or $254.26 million to $994.28 million on Dec. 31, 2016. On the other hand, total liabilities were at $752.96 million as on Dec. 31, 2016, up 50.35 percent or $252.15 million from year-ago. Return on assets was negative at 1.02 percent in the quarter against a positive 1.88 percent in the last year period. Return on equity was negative at 4.36 percent in the quarter against a positive 5.77 percent in the last year period.
Investments move up
Investments stood at $528.65 million as on Dec. 31, 2016, up 16.77 percent or $75.93 million from year-ago. Meanwhile, yield on investments was almost stable at 0.55 percent in the quarter, when compared with the last year period. Meanwhile, reinsurance recoverables moved up 711.48 percent or $21.07 million over the year to $24.03 million on Dec. 31, 2016.
Total debt was at $54.18 million as on Dec. 31, 2016, up 338.56 percent or $41.82 million from year-ago. Shareholders equity stood at $241.33 million as on Dec. 31, 2016, up 0.88 percent or $2.12 million from year-ago. As a result, debt to equity ratio went up 17 basis points to 0.22 percent in the quarter from 0.05 percent in the last year period.
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