United Insurance Holdings Corporation (UIHC) has reported 57.65 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $3.42 million, or $0.16 a share in the quarter, compared with $8.08 million, or $0.38 a share for the same period last year. Revenue during the quarter surged 41.64 percent to $127.20 million from $89.81 million in the previous year period. Net premium earned for the quarter jumped 43.12 percent or $36.22 million to $120.22 million.
Total expenses increase substantiallyBenefits, losses and expenses for the quarter were at $122.17 million, or 101.62 percent of premium earned from $76.93 million or 91.58 percent of premium earned in the last year period. Operating income for the quarter was $5.03 million, compared with $12.88 million in the previous year period. Net investment income was at $2.66 million for the quarter, up 10.36 percent or $0.25 million from year-ago period. The company has recorded a gain on investments of $0.11 million in the quarter compared with a gain of $0.32 million for the previous year period.
"We had a terrific top line and strong organic growth during the third quarter," said John Forney, President chief executive officer of UPC Insurance. "However, it was a difficult quarter for us on the loss side. Although Hurricane Hermine and the Louisiana storms certainly affected the quarter, the bulk of our loss ratio deterioration was caused by spikes in fire and hail losses in Florida and our Northeast region."
Liabilities outpace assets growthTotal assets increased 24.82 percent or $193.74 million to $974.42 million on Sep. 30, 2016. On the other hand, total liabilities were at $714.94 million as on Sep. 30, 2016, up 29.17 percent or $161.44 million from year-ago. Return on assets stood at 0.37 percent in the quarter, down 0.67 from 1.05 percent in the last year period. At the same time, return on equity was at 1.32 percent in the quarter, down 2.24 from 3.56 percent in the last year period.
Investments move upInvestments stood at $526.11 million as on Sep. 30, 2016, up 18.03 percent or $80.37 million from year-ago. Meanwhile, yield on investments went down 4 basis points to 0.51 percent in the quarter. Meanwhile, reinsurance recoverables moved down 85.92 percent or $106.07 million over the year to $17.39 million on Sep. 30, 2016.
Total debt was at $25.13 million as on Sep. 30, 2016, up 98.73 percent or $12.49 million from year-ago. Shareholders equity stood at $259.48 million as on Sep. 30, 2016, up 14.21 percent or $32.29 million from year-ago. As a result, debt to equity ratio went up 4 basis points to 0.10 percent in the quarter from 0.06 percent in the last year period.
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