Universal Insurance Holdings Inc (UVE) 2024 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Universal's third quarter 2024 earnings conference call. As a reminder, this conference call is being recorded.

早安，女士們、先生們，歡迎參加環球影業 2024 年第三季財報電話會議。謹此提醒，本次電話會議正在錄音中。

I would now like to turn the conference over to Arash Soleimani, Chief Strategy Officer.

我現在想將會議交給首席策略長阿拉什·蘇萊馬尼 (Arash Soleimani)。

Good morning. Thank you for joining us today. Welcome to our quarterly earnings call. On the call with me today are Steve Donaghy, Chief Executive Officer; and Frank Wilcox, Chief Financial Officer.

早安.感謝您今天加入我們。歡迎參加我們的季度財報電話會議。今天與我通話的是執行長 Steve Donaghy；和首席財務官弗蘭克·威爾科克斯。

Before we begin, please note today's discussion may contain forward-looking statements and non-GAAP financial measures. Forward-looking statements involve assumptions, risks and uncertainties and that could cause actual results to differ materially from those statements. For more information, please see the press release and Universal's SEC filings, all of which are available on the Investors section of our website at universalinsuranceholdings.com and on the SEC's website.

在開始之前，請注意今天的討論可能包含前瞻性陳述和非公認會計準則財務指標。前瞻性陳述涉及假設、風險和不確定性，可能導致實際結果與這些陳述有重大差異。欲了解更多信息，請參閱新聞稿和環球向 SEC 提交的文件，所有這些文件均可在我們網站的投資者部分（universalinsuranceholdings.com）和 SEC 網站上獲取。

A reconciliation of non-GAAP financial measures to comparable GAAP measures is included in the quarterly press release and can also be found on Universal's website at universalinsuranceholdings.com.

非公認會計原則財務指標與可比較公認會計原則指標的調節表包含在季度新聞稿中，也可以在環球公司的網站universalinsuranceholdings.com上找到。

With that, I'll turn the call over to Steve.

這樣，我就把電話轉給史蒂夫。

Thanks, Arash. Good morning, everyone. Our hearts and thoughts go out to those impacted by recent disasters, including Hurricanes Debbie and Helene in the third quarter and Hurricane Milton in the fourth quarter. We've been through many hurricanes in our nearly three decade history, arming us with the requisite experience to quickly and efficiently get policyholders back on their feet.

謝謝，阿拉什。大家早安。我們的心和思想與最近遭受災難影響的人們同在，包括第三季度的颶風黛比和海倫以及第四季的颶風米爾頓。在近三十年的歷史中，我們經歷了許多颶風，這為我們提供了必要的經驗，可以快速有效地讓保單持有人重新站起來。

Our substantial reinsurance protection and the strong reinsurance relationships that we've built over many years provide us with the financial resilience to weather both high frequency and high severity storm seasons. As we've previously disclosed, our consolidated retention drops for subsequent events and we expect a smaller financial impact from weather in the fourth quarter, inclusive of Hurricane Milton.

我們多年來建立的大量再保險保障和牢固的再保險關係為我們提供了抵禦高頻率和高嚴重風暴季節的財務彈性。正如我們之前所揭露的，我們的後續事件的綜合保留率會下降，我們預計第四季度天氣（包括颶風米爾頓）對財務的影響較小。

Non-catastrophe underwriting trends continue to improve and we're highly encouraged as we look ahead. On a separate note, we opened for business in Wisconsin at the beginning of the month, our 19 state. We're excited to offer our insurance products there as we continue to expand to new markets, diversifying our book of business and growing our addressable market.

非巨災承保趨勢持續改善，展望未來，我們深受鼓舞。另外，我們於本月初在我們的第 19 個州威斯康辛州開業。我們很高興能夠在那裡提供我們的保險產品，因為我們不斷擴展到新市場，使我們的業務多元化並擴大我們的目標市場。

I'll turn it over to Frank to walk through our financial results. Frank?

我將把它交給弗蘭克來詳細介紹我們的財務表現。坦率？

Thanks, Steve. Good morning. Adjusted loss per common share was $0.73, compared to an adjusted loss per common share of $0.16 in the prior year quarter. The higher adjusted net loss available to common stockholders mostly stems from lower underwriting income, partially offset by higher net investment income and commission revenue.

謝謝，史蒂夫。早安.調整後每股普通股虧損為 0.73 美元，而去年同期調整後每股普通股虧損為 0.16 美元。普通股股東可獲得的調整後淨虧損較高，主要是由於承保收入減少，但部分被淨投資收入和佣金收入增加所抵銷。

Core revenue of $381.4 million was up 5.4% year-over-year with growth primarily stemming from higher net premiums earned, net investment income and commission revenue. Direct premiums written were $574.4 million, up 8% from the prior year quarter, including 2.1% growth in Florida and 32.9% growth in other states. Overall, growth mostly reflects higher policies in force, higher rates and inflation adjustments.

核心收入為 3.814 億美元，年增 5.4%，成長主要源自於淨保費收入、淨投資收入和佣金收入的增加。直接承保保費為 5.744 億美元，比去年同期成長 8%，其中佛羅裡達州成長 2.1%，其他州成長 32.9%。整體而言，成長主要反映了現行政策的提高、利率的提高和通膨調整。

Direct premiums earned were $507.7 million, up 7% from the prior year quarter, reflecting direct premiums written growth over the past 12-months. Net premiums earned with $345.7 million, up 4.4% from the prior year quarter. The increase is primarily attributable to higher direct premiums earned, partially offset by a higher ceded premium ratio.

所賺取的直接保費為 5.077 億美元，比去年同期增長 7%，反映了過去 12 個月的直接保費承保增長。淨保費收入為 3.457 億美元，比去年同期成長 4.4%。這一增長主要歸因於所賺取的直接保費增加，部分被較高的分出保費比率所抵消。

The net combined ratio was 116.9%, up 6.2 points compared to the prior year quarter. The increase reflects higher net loss and expense ratios. The 91.7% net loss ratio was up 4.7 points compared to the prior year quarter, with the increase primarily attributable to higher weather losses mostly from Hurricane Helene, partially offset by more favorable prior year reserve development.

淨綜合成本率為116.9%，較去年同期上升6.2個百分點。這一增長反映出淨虧損和費用率的上升。91.7% 的淨損失率比去年同期上升了 4.7 個百分點，這一增長主要歸因於颶風海倫造成的天氣損失增加，但部分被去年更有利的儲備發展所抵消。

The net expense ratio was 25.2%, up 1.5 points compared to the prior year quarter, with the increase primarily attributable to higher policy acquisition costs associated with growth outside Florida and higher operating costs.

淨費用率為 25.2%，比去年同期上升 1.5 個百分點，成長的主要原因是佛羅裡達州以外的成長帶來的保單取得成本上升以及營運成本上升。

During the quarter, the company repurchased 226,000 shares at an aggregate cost of $4.4 million. The company's current share repurchase authorization program has approximately $10.3 million remaining. On July 11, 2024, and -- the Board of Directors declared a quarterly cash dividend of $0.16 per share of common stock payable on August 9, 2024, to shareholders of record as of the close of business on August 2, 2024.

本季度，該公司回購了 226,000 股股票，總成本為 440 萬美元。該公司目前的股票回購授權計畫還剩約1,030萬美元。2024 年 7 月 11 日，以及－董事會宣佈於 2024 年 8 月 9 日向截至 2024 年 8 月 2 日收盤時登記在冊的股東派發每股普通股 0.16 美元的季度現金股息。

With that, I'd like to ask the operator to open the line for questions.

說到這裡，我想請接線生開通提問線。

(Operator Instructions).

（操作員說明）。

Paul Newsome, Piper Sandler.

保羅‧紐瑟姆，派珀‧桑德勒。

Good morning. Thanks for the call. And always appreciate the help. Can we talk about the reserve development to start with, just give us some ideas about what the sources of the development was?

早安.感謝您的來電。並始終感謝您的幫助。我們能否從儲備金開發開始，給我們一些關於開發來源的想法？

Paul, it's Frank. We actually had favorable development this quarter of just around $2.2 million from prior year cats.

保羅，是法蘭克。實際上，本季我們從去年的貓身上獲得了約 220 萬美元的良好發展。

Great. Any particular source of just cats or all property?

偉大的。僅貓或所有財產有什麼特定來源嗎？

Well, a lot of the names that you recognize, Irma, Ian, Matthew, Michael, some of which were minor, other which a little bit more significant.

嗯，有很多你認識的名字，艾爾瑪、伊恩、馬修、邁克爾，其中一些是次要的，有些則更重要。

Any additional detail you can give us on the cat losses in the quarter between Helene and other as well? As -- is there anything in those cat losses that are unusual or different than what you typically see after a large storm? I mean I think flood versus -- versus wind mix may be a little different with some around, but that's just a conjecture on my part.

您能否向我們提供有關海倫和其他人之間本季貓損失的任何其他詳細資訊？至於——這些貓的損失是否與你在大風暴後通常看到的情況不同尋常或不同？我的意思是，我認為洪水與風的混合可能與周圍的一些人有所不同，但這只是我的猜測。

Yeah. Paul, Steve Donaghy. Yes, I think from a loss perspective, as we look at the three hurricanes now between Debbie, Helene, and Milton, we're looking at a range for all three storms, somewhere between $600 million and $900 million to the company. Our net retention on those Debbie is small, it's probably somewhere under $20 million. And Helene will be a full retention loss to the company, along with our Isosceles. So roughly $111 million to the company, and the rest will be picked up by our reinsurance partners. .

是的。保羅，史蒂夫‧多納吉。是的，我認為從損失的角度來看，當我們考慮黛比、海倫和米爾頓之間的三場颶風時，我們正在考慮所有三場風暴的範圍，即給公司帶來的損失在6 億美元到9 億美元之間。我們對黛比的淨留存量很小，可能不到 2000 萬美元。海倫和我們的等腰三角形將成為公司的全部保留損失。因此，大約 1.11 億美元歸公司所有，其餘部分將由我們的再保險合作夥伴承擔。。

And then Milton will be, as you know, is a lower -- our second tower has a lower retention of $45 million. So we expect that to be incurred in Q4. And thanks to our claims operation, which is heavily deployed and trying to assist all of our policyholders in the various areas impacted, which is a pretty serious geography for all the carriers.

然後，如您所知，米爾頓將是一個較低的——我們的第二座塔樓的保留率較低，為 4500 萬美元。因此，我們預計這將在第四季度發生。感謝我們的理賠業務，該業務得到了大量部署，並試圖在受影響的各個地區為我們的所有保單持有人提供幫助，這對所有承運人來說都是一個相當嚴峻的地區。

They are now handling the storm and we're trying to handle as many of the claims internally as possible because we feel we do it better, and we also kind of understand how to adjust. Our teams really experience between the flood and the wind and what the impacts of those two are. So we're being very careful how we do it.

他們現在正在應對這場風暴，我們正在努力在內部處理盡可能多的索賠，因為我們覺得我們做得更好，而且我們也了解如何進行調整。我們的團隊真正體驗了洪水和風之間的關係以及這兩者的影響。所以我們非常小心我們的做法。

I think from a claims incoming perspective, while every storm has some nuance. The claim counts have been coming in at a steady flow. So I think people were listening to the messaging to be safe and get out of the impacted areas. I think that's a new -- it's a very good dynamic for the state.

我認為從索賠的角度來看，每場風暴都有一些細微差別。索賠數量一直在穩定增長。所以我認為人們聽取訊息是為了安全並離開受影響的地區。我認為這是一個新的——對國家來說這是一個非常好的動力。

And I think that it's good that insurers are listening to their -- the folks that are trying to help them. So we've seen a steady flow rather than a real big peak, so to say. So we feel good about where we're at, and we're hoping to recover as much of those retentions in Q4 with our operating staff. So if you have any other questions, happy to answer, but that's kind of an overview.

我認為保險公司傾聽那些試圖幫助他們的人的意見是件好事。因此，我們看到的是穩定的流量，而不是真正的大峰值，可以這麼說。因此，我們對目前的狀況感到滿意，我們希望在第四季度與我們的營運人員一起恢復盡可能多的保留。因此，如果您還有任何其他問題，我們很樂意回答，但這只是一個概述。

Do you think most of the recovery of revenue for claims management, et cetera, will happen for both storms in the fourth quarter? Or do you think we might see something perhaps per Milton all the way to first?

您認為理賠管理等方面的大部分收入恢復會在第四季度發生在這兩場風暴中嗎？或者你認為我們可能會看到米爾頓一直到第一個的東西？

It's a great question. yes, great question, Paul. We don't -- as we sit here today, we're not 100% sure that we'd recover all those expenses, especially in Q4. I think you'll see some of that tail into 2025.

這是一個很好的問題。是的，很好的問題，保羅。我們不知道——當我們今天坐在這裡時，我們不能 100% 確定我們會收回所有這些費用，特別是在第四季度。我認為到 2025 年你會看到一些這樣的尾巴。

So hard to tell exactly what we're going to recover as we sit here now. We'll have a better idea of that as we get into Q4. But the most important thing for us is to get out, see the insurers, make sure we're doing the right things and getting them back on their feet at their moment of need. So that's the paramount goal for us as we're entering Q4 right now.

當我們坐在這裡時，很難確切地說出我們將要恢復什麼。當我們進入第四季度時，我們會對這一點有更好的了解。但對我們來說，最重要的是走出去，見見保險公司，確保我們做正確的事情，並在他們需要的時候讓他們重新站起來。因此，這是我們現在進入第四季的首要目標。

Maybe just one last big picture question. The weather obviously makes it more complicated to figure out kind of what's going on, on a normalized basis. Could you give us your most recent thoughts maybe year-to-date or so. about what you think is happening on kind of that normalized underwriting basis because you've got a lot of stuff going on with pricing and to reform and other factors? Do you think you're still making improvements in the underwriting results into next year because of those factors?

也許只是最後一個大問題。天氣顯然使在正常化的基礎上弄清楚正在發生的事情變得更加複雜。您能否給我們您最近的想法，也許是今年迄今為止的想法。關於您認為在標準化承保基礎上正在發生的事情，因為您在定價、改革和其他因素方面有很多事情正在進行？您認為由於這些因素，您明年的核保績效是否仍會有所改善？

Yes, Paul, we changed our kind of tone from cautiously optimistic to optimistic sometime this year. And we see very favorable underwriting results coming in the door. I think our agency relationships continue to generate business where we are open. And I think outside the state of Florida, our relationships as they grow in our newer states people develop a comfort level with us about how we operate, how we respond to their questions and needs and how we treat their clients or are insured, so to say.

是的，保羅，今年某個時候我們的語氣從謹慎樂觀轉變為樂觀。我們看到非常有利的承保結果即將到來。我認為我們的代理關係將繼續在我們開放的地方創造業務。我認為在佛羅裡達州之外，隨著我們在新州的關係不斷發展，人們對我們的運作方式、我們如何回應他們的問題和需求以及我們如何對待他們的客戶或投保都產生了一定的舒適度，因此說。

I think as we looked at the legislative reforms, and we looked at our rates, we adjusted some models in a positive manner to Floridians. So we ended up in a scenario where we had a small reduction in premium at our most recent filings, which I think when you think of the typical insured in Florida after getting increases of somewhere between 10% and 15% over the last several years, a flat or a reduction is a really good impact to the people that own homes in Florida.

我認為，當我們研究立法改革和費率時，我們以對佛羅裡達人積極的方式調整了一些模型。因此，我們最終遇到了這樣的情況：在最近提交的文件中，我們的保費略有下降，我認為當你想到佛羅裡達州的典型被保險人在過去幾年中保費增加了10% 到15% 之間時，公寓或減價對於在佛羅裡達州擁有房屋的人來說確實是一個很好的影響。

So -- and we're being very cautious about where we're open and continuing to work on our spread of business within the state of Florida. I think you would say that as we continue to grow and mature, we're trying to be as smart as possible with the experience we've gained over; for me, 20 years and for others in the company over the last 30 years. in the state of Florida. So good -- we feel good about the future. Very good.

因此，我們對營業地點非常謹慎，並繼續努力在佛羅裡達州開展業務。我想你會說，隨著我們不斷成長和成熟，我們正在努力利用我們所獲得的經驗盡可能變得聰明；對我來說是 20 年，對公司其他人來說是過去 30 年。在佛羅裡達州。太好了——我們對未來感覺很好。非常好。

Appreciate the help as always.

一如既往地感謝幫助。

Thanks Paul. Thank you

謝謝保羅。謝謝

Nick Iacoviello, Dowling & Partners.

Nick Iacoviello，Dowling & Partners。

Alright, thanks. And sorry, if you had already answered this question. But can we be considering any additional reinstatement premiums that flow through following Milton?

好的，謝謝。抱歉，如果您已經回答了這個問題。但我們是否可以考慮在米爾頓之後流經任何額外的恢復保費？

Well, a lot of the layers, especially at the lower end of the tower, and I don't have it in front of me are covered by a reinstatement premium protection., So although layers would have to be replenished, many would not trigger a reinstatement premium for us that would drop to the bottom line. Depending on how far it goes into the tower, the possibility exists. But as I said, I don't have it in front of me to say when that would occur.

嗯，很多層，特別是在塔的下端，我面前沒有它，它們都被恢復高級保護所覆蓋。可能性是否存在，取決於它進入塔內的距離。但正如我所說，我無法確定這種情況何時會發生。

And Nick, if it helps for your models, I wouldn't see any of that occurring in Q4 due to the nature and pace of claims coming in.

尼克，如果這對您的模型有幫助，那麼由於索賠的性質和速度，我不會看到第四季度發生任何這種情況。

Okay. That's helpful. That was the only question I had.

好的。這很有幫助。這是我唯一的問題。

All right, Nick, thanks. Have a good day

好的，尼克，謝謝。祝你有美好的一天

And I am showing no further questions. I would now like to turn the call back over to Steve Donaghy, Chief Executive Officer.

我沒有提出任何進一步的問題。我現在想將電話轉回執行長史蒂夫·多納吉 (Steve Donaghy)。

Thank you. Good morning. I'd like to thank all of our associates, consumers, our agency force and our stakeholders for their continued support of Universal. I wish you all a great day.

謝謝。早安.我要感謝我們所有的員工、消費者、我們的代理商和利害關係人對環球影業的持續支持。祝大家有個愉快的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。