Universal Insurance Holdings Inc (UVE) has reported a 23.68 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $31.20 million, or $0.86 a share in the quarter, compared with $25.23 million, or $0.71 a share for the same period last year. Revenue during the quarter grew 6.34 percent to $174.87 million from $164.45 million in the previous year period. Net premium earned for the quarter increased 5.98 percent or $9.11 million to $161.56 million.
Total expenses move up marginally
Benefits, losses and expenses for the quarter were at $127.50 million, or 78.92 percent of premium earned from $123.35 million or 80.91 percent of premium earned in the last year period. Operating income for the quarter was $47.37 million, compared with $41.10 million in the previous year period. Net investment income was at $2.70 million for the quarter, up 68.47 percent or $1.10 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 8.97 percent or $0.37 million to $4.48 million. The company has booked a loss on investments of $0.06 million in the quarter compared with a gain of $0.67 million for the previous year period.
Universal Insurance Holdings, Inc. chairman and chief executive officer Sean P. Downes commented: “During the first quarter, Universal reported excellent top line growth and substantial underwriting profit, leading to a strong bottom line result and a 31.4% return on average equity. Although the quarter included losses from weather events beyond plan, our claims handling organization performed up to our high expectations, and these events had a minimal impact on our quarterly earnings. We remain focused on producing profitable and rate-adequate organic growth within Florida and through our Other State expansion efforts, further enhancing our unique direct-to-consumer platform, Universal DirectSM, and continuing to leverage our vertically integrated structure to deliver better service to our policyholders. First quarter results were a great start to 2017, and Universal is well positioned on all fronts to deliver outstanding value to our shareholders going forward.”
Assets grow, liabilities fall
Total assets increased 3.06 percent or $31.44 million to $1,060.44 million on Mar. 31, 2017. On the other hand, total liabilities were at $661.67 million as on Mar. 31, 2017, down 7.42 percent or $53.02 million from year-ago. Return on assets stood at 2.95 percent in the quarter, up 0.48 from 2.47 percent in the last year period. At the same time, return on equity was at 7.82 percent in the quarter, down 0.20 from 8.03 percent in the last year period.
Investments move up
Investments stood at $666.07 million as on Mar. 31, 2017, up 23.10 percent or $124.97 million from year-ago. Meanwhile, yield on investments went up 11 basis points to 0.41 percent in the quarter. Meanwhile, reinsurance recoverables moved down 99.56 percent or $136.67 million over the year to $0.60 million on Mar. 31, 2017.
Total debt was at $13.97 million as on Mar. 31, 2017, down 39.46 percent or $9.11 million from year-ago. Shareholders equity stood at $398.76 million as on Mar. 31, 2017, up 26.88 percent or $84.47 million from year-ago. As a result, debt to equity ratio went down 4 basis points to 0.04 percent in the quarter from 0.07 percent in the last year period.
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