Universal Insurance Holdings, Inc. (UVE) has reported a 53.16 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $13.66 million, or $0.38 a share in the quarter, compared with $29.15 million, or $0.82 a share for the same period last year.
Revenue during the quarter grew 10.18 percent to $178.60 million from $162.10 million in the previous year period. Net premium earned for the quarter increased 8.88 percent or $13.38 million to $163.97 million. During the quarter, the company has written premium worth $238.66 million on net basis, up 8.21 percent or $18.11 million.
Total expenses increase substantially
Benefits, losses and expenses for the quarter were at $155.88 million, or 95.06 percent of premium earned from $114.22 million or 75.84 percent of premium earned in the last year period. Operating income for the quarter was $22.73 million, compared with $47.88 million in the previous year period. Net investment income was at $3.49 million for the quarter, up 96.12 percent or $1.71 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 13.83 percent or $1.04 million to $8.59 million. The company has recorded a gain on investments of $0.95 million in the quarter compared with a gain of $0.77 million for the previous year period.
Universal Insurance Holdings, Inc. chairman and chief executive officer Sean P. Downes commented: "During the fourth quarter, Universal reported strong top line growth and meaningful underwriting profit despite the impact of Hurricane Matthew. This result is a testament to the fundamental strength of our business model, including the benefits which our vertically integrated structure afford us, our focus on maintaining high underwriting standards, our superior claims handling abilities, and our exceptional catastrophe response team. Our efforts to produce profitable and rate-adequate organic growth continue to produce results both within Florida and in our thirteen other states. Our unique direct-to-consumer platform, Universal DirectSM, is now online in all of our active states and will contribute incrementally to this growth going forward, as will our Commercial Residential product, which saw its first policy written during the fourth quarter. Universal enters 2017 extremely well positioned on all fronts, and we remain confident in our ability to deliver outstanding value to our shareholders."
Assets grow, liabilities fall
Total assets increased 6.69 percent or $66.46 million to $1,060.01 million on Dec. 31, 2016. On the other hand, total liabilities were at $688.82 million as on Dec. 31, 2016, down 1.66 percent or $11.64 million from year-ago. Return on assets stood at 1.29 percent in the quarter, down 1.75 from 3.03 percent in the last year period. At the same time, return on equity was at 3.68 percent in the quarter, down 6.27 from 9.95 percent in the last year period.
Investments increase substantiallyInvestments stood at $651.60 million as on Dec. 31, 2016, up 33.13 percent or $162.17 million from year-ago. Meanwhile, yield on investments went up 17 basis points to 0.54 percent in the quarter. Meanwhile, reinsurance recoverables moved down 5.40 percent or $10.18 million over the year to $178.32 million on Dec. 31, 2016.
Total debt was at $15.03 million as on Dec. 31, 2016, down 37.51 percent or $9.02 million from year-ago. Shareholders equity stood at $371.19 million as on Dec. 31, 2016, up 26.65 percent or $78.10 million from year-ago. As a result, debt to equity ratio went down 4 basis points to 0.04 percent in the quarter from 0.08 percent in the last year period.
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