UNIVERSAL INSURANCE HOLDINGS, INC. Q4 FY2024 earnings call

• Steve mentioned 2024 had three hurricanes and progress in Florida claims trends, with a modest rate decrease in Florida tied to 2022 legislative changes. - Already underway with 2025 reinsurance program, 92% of first event catastrophe tower placed, and significant multiyear capacity secured for 2026. - Frank walked through financial results, noting lower underwriting income but higher net investment income and commission revenue, and details on core revenue, premiums written/earned, and combined ratio.

Adjusted diluted earnings per common share was $0.25, down from $0.43 in the prior year quarter. Core revenue was $386.4 million, up 5.7% year-over-year. Direct premiums written were $470.9 million, up 8.8% from the prior year quarter, with 0.8% growth in Florida and 38.4% growth in other states. Direct premiums earned were $519.3 million, up 7.7% year-over-year. Net premiums earned were $348.4 million, up 3.9% from the prior year quarter. The net combined ratio was 107.9%, up 4.2 points, with a loss ratio of 82.3% (up 0.4 points) and a net expense ratio of 25.6% (up 3.8 points).

• Board declared a regular quarterly cash dividend of $0.16 per common share payable March 14, 2025. - The company repurchased approximately 370,000 shares at an aggregate cost of $7.7 million, with $2.6 million remaining in the share repurchase authorization program.

Forward-looking statements involve assumptions, risks, and uncertainties that could cause actual results to differ materially from those statements.

Q: Could you talk about the size of the reserve development in the quarter and the level of cat losses, including more detail?

A: Frank said Milton was a $45 million net retention event, prior year development was down significantly from $76 million last year to $45 million this quarter.

Q: Could you provide more color on growth efforts and where you're standing and where you think you're seeing the most opportunity, and thoughts on reinsurance renewals?

A: Steve said from a growth perspective, laser-focused on profitability, closed in markets not rate adequate, growth in other states from new markets entry; on reinsurance, 92% of 2025 first event catastrophe tower placed, pleased with reinsurance interest, will release full details in May press release.