Business Wire | Oct 27, 2020 04:17PM EDT

Universal Insurance Holdings Reports Third Quarter 2020 Results

Oct. 27, 2020

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Oct. 27, 2020--Universal Insurance Holdings (NYSE: UVE) (the "Company") reported 2020 third quarter diluted EPS of $(0.10) on a GAAP basis and $(1.43) non-GAAP adjusted EPS1. Total revenue was up 35.7% from the year ago quarter to $311.7 million. Year-to-date annualized return on average equity was 10.0%.

^1 Excludes net realized and unrealized gains and losses on investments as wellas extraordinary reinstatement premiums and associated commissions ("non-GAAPadjusted EPS"). Reconciliations of GAAP to non-GAAP financial measures areprovided in the attached tables.

"We continued to see headwinds in the third quarter as we dealt with elevated industry-wide weather events year-to-date. As previously announced, we were affected by full retention events from Hurricanes Isaias and Sally, in addition to other PCS events year-to-date. Furthermore, we saw an increase in prior year's companion claims in the run up to the expiration of the statute of limitations for Hurricane Irma, which contributed to prior year's reserve development," said Stephen J. Donaghy, Chief Executive Officer.

"Our primary rate increases continue to flow through our book as evidenced by our strong direct premiums written growth of 19.4% in the quarter. We continue to selectively write new business in our existing states, including Florida. Specifically in Florida, we have seen a 9.5% year-over-year policy count growth, with 97% of this growth coming from outside of the tri-county area."

Summary Financial Results

($thousands,except per Three Months Ended September 30, Nine Months Ended September 30,share data)

2020 2019 Change 2020 2019 Change

(GAAP comparison)

Total $ 311,665 $ 229,641 35.7 % $ 799,644 $ 699,949 14.2 %revenue

Income(loss) (3,792 ) 27,896 NM 51,230 132,570 (61.4 )%beforeincome taxes

Income(loss) ) )before (1.2 % 12.1 % NM 6.4 % 18.9 % (12.5 ptsincome taxesmargin

Diluted EPS $ (0.10 ) $ 0.59 NM $ 1.14 $ 2.82 (59.6 )%



Annualizedreturn on (2.5 ) 14.0 % NM 10.0 % 23.9 % (13.9 )average % ptsequity (ROE)

Book valueper share, $ 15.15 $ 17.13 (11.6 ) $ 15.15 $ 17.13 (11.6 )%end of %period



(Non-GAAPcomparison)^ 2

Adjustedoperating (59,594 ) 28,476 NM (817 ) 125,520 NM income

Adjusted EPS $ (1.43 ) $ 0.61 NM $ (0.08 ) $ 2.67 NM



^2 Reconciliation of GAAP to non-GAAP financial measures are provided in theattached tables. Adjusted operating income excludes net realized and unrealizedgains and losses on investments, interest expense, and extraordinaryreinstatement premiums and associated commissions. Non-GAAP adjusted EPSexcludes net realized and unrealized gains and losses on investments, as wellas extraordinary reinstatement premiums and associated commissions.

Total revenue grew double digits for the quarter driven primarily by realized gains on investments, growth in net premiums earned (organic new business growth and primary rate increases) and services revenue. GAAP diluted EPS and non-GAAP adjusted EPS results for the quarter were driven by increased loss and loss adjustment expense ("LAE") from elevated industry-wide weather events and prior year's reserve development. Despite elevated activity year-to-date, the Company produced an annualized year-to-date return on average equity of 10.0%.

Underwriting

($thousands,except Three Months Ended September 30, Nine Months Ended September 30,policies inforce)

2020 2019 Change 2020 2019 Change

Policies inforce (as of 965,462 872,603 10.6 % 965,462 872,603 10.6 %end ofperiod)

Premiums inforce (as of $ 1,459,971 $ 1,267,681 15.2 % $ 1,459,971 $ 1,267,681 15.2 %end ofperiod)



Directpremiums $ 409,418 $ 342,872 19.4 % $ 1,148,656 $ 990,066 16.0 %written

Directpremiums 357,208 313,065 14.1 % 1,020,798 911,550 12.0 %earned

Net premiums 234,191 206,599 13.4 % 681,390 626,683 8.7 %earned



Expense 32.9 % 33.5 % (60.0 ) 32.8 % 33.2 % (40.0 )ratio^3 bps bps

Loss & LAE 101.8 % 64.3 % 37.5 pts 77.0 % 57.3 % 19.7 ptsratio

Combined 134.7 % 97.8 % 36.9 pts 109.8 % 90.5 % 19.3 ptsratio



^3 Expense ratio excludes interest expense.

Direct premiums written were up double digits for the quarter, led by strong direct premium growth of 18.8% in Other States (non-Florida), and 19.6% in Florida. The quarter's growth benefited from organic new business growth, and primary rate increases continuing to flow through the book.

On the expense side, the combined ratio increased 36.9 points for the quarter. The increase was driven primarily by increased weather events, accruing reserves at a higher core loss ratio, prior year's reserve development, and the impact of higher reinsurance costs, partially offset by a benefit from our claims adjusting business and a reduction in the expense ratio as set forth below.

* The expense ratio improved by 60 basis points for the quarter, primarily related to an 80 basis point improvement in the other operating expense ratio due in large part to economies of scale and lower stock based compensation, partially offset by the effect of increased cost of reinsurance on the expense ratio. * The net loss and LAE ratio increased 37.5 points for the quarter. Quarterly drivers include: Weather events in excess of plan of $68.0 million, or 29.0 points, for the quarter ($15.0 million in 3Q19) were primarily related to the previously announced hurricanes (Isaias and Sally), in addition to other PCS events that exceeded the plan year-to-date. Prior year's reserve development of $30.1 million, or 12.9 points, for the quarter ($3.2 million in 3Q19) was partially related to increased prior year's companion claims being filed during the run up to the expiration of the 3-year catastrophe statute of limitations in September. Core losses of $140.4 million, or 59.9 points, for the quarter ($114.4 million in 3Q19) were primarily related to accruing incremental reserves for the current accident year loss costs and diversified growth.

Services

($thousands) Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 Change 2020 2019 Change

Commission $ 8,997 $ 7,380 21.9 % $ 23,770 $ 18,933 25.5 %revenue

Policy fees 6,167 5,569 10.7 % 18,253 16,587 10.0 %

Other revenue 1,935 1,929 0.3 % 6,529 5,369 21.6 %

Total $ 17,099 $ 14,878 14.9 % $ 48,552 $ 40,889 18.7 %

Total services revenue increased 14.9% for the quarter. The increase was driven by commission revenue earned on ceded premiums and an increase in policy fees.

Investments

($thousands) Three Months Ended September Nine Months Ended September 30, 30,

2020 2019 Change 2020 2019 Change

Net ) )investment $ 4,557 $ 7,613 (40.1 % $ 17,570 $ 23,165 (24.2 %income

Realizedgains 53,827 (22 ) NM 54,294 (13,152 ) NM (losses)

Unrealizedgains 1,991 573 247.5 % (2,162 ) 22,364 NM (losses)

NM = Not Meaningful

Net investment income decreased 40.1% for the quarter, driven by lower yields on cash and fixed-income investments during 2020 when compared to 2019. Realized gains for the quarter resulted from taking advantage of increased market prices on our available-for-sale debt investment portfolio. Cash and cash equivalents increased 122.5% to $405.1 million when compared to the end of 2019 as a result of the actions taken to realize investment gains, leading to higher investment cash flows. As a result of the sales and reinvestment, future portfolio investment income will reflect current market rates.

Capital Deployment

During the third quarter, the Company repurchased approximately 534 thousand shares at an aggregate cost of $9.9 million. Year-to-date, the Company repurchased approximately 1.4 million shares at an aggregate cost of $26.5 million.

On July 6, 2020, the Board of Directors declared a quarterly cash dividend of 16 cents per share of common stock, which was paid on August 7, 2020, to shareholders of record as of the close of business on July 31, 2020.

Guidance

The Company is updating its guidance for 2020 to reflect increased top line revenue, offset by elevated third quarter loss and LAE (assuming no further extraordinary weather events and no realized or unrealized gains in 4Q20):

* GAAP EPS in a range of $1.80 - $2.10 (reduced from previous range of $2.31 - $2.61) * Non-GAAP Adjusted EPS in a range of $0.55 - $0.85 (reduced from previous range of $2.40 - $2.70) * Annualized return on average equity (derived from GAAP measures) in a range of 11.1% - 14.1% (reduced from previous range of 13.5% - 16.5%)

Conference Call and Webcast

* Wednesday, October 28, 2020 at 9:00 a.m. ET * U.S. Dial-in Number: (855) 752-6647 * International: (503) 343-6667 * Participant code: 5317328 * Listen to live webcast and view presentation: UniversalInsuranceHoldings.com * Replay of the call will be available on the UVE website and by phone at (855) 859-2056 or internationally at (404) 537-3406 using the participant code: 5317328 through November 12, 2020

About Universal Insurance Holdings, Inc.

Universal Insurance Holdings, Inc. ("UVE") is a holding company offering property and casualty insurance and value-added insurance services. We develop, market, and write insurance products for consumers predominantly in the personal residential homeowners lines of business and perform substantially all other insurance-related services for our primary insurance entities, including risk management, claims management and distribution. We sell insurance products through both our appointed independent agents and through our direct online distribution channels in the United States across 18 states (primarily Florida). Learn more at UniversalInsuranceHoldings.com.

Non-GAAP Financial Measures and Key Performance Indicators

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the U.S. Securities and Exchange Commission ("SEC"), including adjusted earnings per diluted share, which excludes the impact of the net realized and unrealized gains and losses on investments as well as extraordinary reinstatement premiums and associated commissions. Extraordinary reinstatement premiums are not covered by reinstatement premium protection and attach just below the Florida Hurricane Catastrophe Fund ("FHCF") reinsurance layer. Adjusted operating income excludes the impact of the net realized and unrealized gains and losses on investments, as well as interest expense and extraordinary reinstatement premiums and associated commissions. A "non-GAAP financial measure" is generally defined as a numerical measure of a company's historical or future performance that excludes or includes amounts, or is subject to adjustments, so as to be different from the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles ("GAAP"). UVE management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. UVE management also believes that these non-GAAP financial measures enhance the ability of investors to analyze UVE's business trends and to understand UVE's performance. UVE's management utilizes these non-GAAP financial measures as guides in long-term planning. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures presented in accordance with GAAP. For more information regarding our key performance indicators, please refer to the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations - Key Performance Indicators" in our forthcoming Quarterly Report on Form 10-Q for the quarter ended September 30, 2020.

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "will," "plan," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include commentary on plans, products and lines of business, marketing arrangements, reinsurance programs and other business developments and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, including those risks and uncertainties described under the heading "Risk Factors" and "Liquidity and Capital Resources" in our 2019 Annual Report on Form 10-K, and supplemented in our subsequent Quarterly Reports on Form 10-Q. Future results could differ materially from those described, and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information regarding risk factors that could affect the Company's operations and future results, refer to the Company's reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K and the most recent quarterly reports on Form 10-Q.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except per share data)

September 30, December 31,

2020 2019

ASSETS:

Invested Assets

Fixed maturities, at fair value $ 842,574 $ 855,284

Equity securities, at fair value 52,700 43,717

Investment real estate, net 15,280 15,585

Total invested assets 910,554 914,586

Cash and cash equivalents 405,132 182,109

Restricted cash and cash equivalents 21,115 2,635

Prepaid reinsurance premiums 333,062 175,208

Reinsurance recoverable 95,078 193,236

Premiums receivable, net 76,800 63,883

Property and equipment, net 52,300 41,351

Deferred policy acquisition costs 111,295 91,882

Goodwill 2,319 2,319

Other assets 42,529 52,643

TOTAL ASSETS $ 2,050,184 $ 1,719,852



LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES:

Unpaid losses and loss adjustment expenses $ 202,720 $ 267,760

Unearned premiums 789,137 661,279

Advance premium 55,334 30,975

Reinsurance payable, net 351,255 122,581

Long-term debt 8,823 9,926

Other liabilities 168,152 133,430

Total liabilities 1,575,421 1,225,951

STOCKHOLDERS' EQUITY:

Cumulative convertible preferred stock ($0.01 par - - value) ^4

Common stock ($0.01 par value) ^5 468 467

Treasury shares, at cost - 15,487 and 14,069 (223,086 ) (196,585 )

Additional paid-in capital 101,438 96,036

Accumulated other comprehensive income (loss), 1,662 20,364 net of taxes

Retained earnings 594,281 573,619

Total stockholders' equity 474,763 493,901

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,050,184 $ 1,719,852



Notes:

^4 Cumulative convertible preferred stock ($0.01 par value): Authorized - 1,000shares; Issued - 10 and 10 shares; Outstanding - 10 and 10 shares; Minimumliquidation preference - $9.99 and $9.99 per share.

^5 Common stock ($0.01 par value): Authorized - 55,000 shares; Issued - 46,821and 46,707 shares; Outstanding 31,334 and 32,638 shares.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands)

Three Months Ended Nine Months Ended

September 30, September 30,

2020 2019 2020 2019

REVENUES

Net premiums earned $ 234,191 $ 206,599 $ 681,390 $ 626,683

Net investment income 4,557 7,613 17,570 23,165

Net realized gains/(losses) on 53,827 (22 ) 54,294 (13,152 )investments

Net change inunrealized gains/ 1,991 573 (2,162 ) 22,364 (losses) of equitysecurities

Commission revenue 8,997 7,380 23,770 18,933

Policy fees 6,167 5,569 18,253 16,587

Other revenue 1,935 1,929 6,529 5,369

Total revenues 311,665 229,641 799,644 699,949



EXPENSES

Losses and loss 238,477 132,571 524,870 358,961 adjustment expenses

Policy acquisition 51,594 45,131 146,982 132,863 costs

Other operating 25,370 23,986 76,477 75,352 expenses

Interest expense 16 57 85 203

Total expenses 315,457 201,745 748,414 567,379



Income (loss) before (3,792 ) 27,896 51,230 132,570 income tax expense

Income tax expense (623 ) 7,750 14,450 34,983 (benefit)

NET INCOME (LOSS) $ (3,169 ) $ 20,146 $ 36,780 $ 97,587

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SHARE AND PER SHARE INFORMATION

(in thousands, except per share data)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2020

2019

2020

2019

Weighted average common shares outstanding - basic

31,659

33,649

32,116

34,230

Weighted average common shares outstanding - diluted

31,659

33,930

32,202

34,565

Shares outstanding, end of period

31,334

33,211

31,334

33,211

Basic earnings (loss) per common share

$

(0.10

)

$

0.60

$

1.14

$

2.85

Diluted earnings (loss) per common share

$

(0.10

)

$

0.59

$

1.14

$

2.82

Cash dividend declared per common share

$

0.16

$

0.16

$

0.48

$

0.48

Book value per share, end of period

$

15.15

$

17.13

$

15.15

$

17.13

Annualized return on average equity (ROE)

(2.5

)%

14.0

%

10.0

%

23.9

%

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SHARE AND PER SHARE INFORMATION

(in thousands, except per share data)

Three Months Ended Nine Months Ended

September 30, September 30,

2020 2019 2020 2019

Weighted average common 31,659 33,649 32,116 34,230 shares outstanding - basic

Weighted average common 31,659 33,930 32,202 34,565 shares outstanding - diluted

Shares outstanding, end of 31,334 33,211 31,334 33,211 period

Basic earnings (loss) per $ (0.10 ) $ 0.60 $ 1.14 $ 2.85 common share

Diluted earnings (loss) per $ (0.10 ) $ 0.59 $ 1.14 $ 2.82 common share

Cash dividend declared per $ 0.16 $ 0.16 $ 0.48 $ 0.48 common share

Book value per share, end of $ 15.15 $ 17.13 $ 15.15 $ 17.13 period

Annualized return on average (2.5 ) 14.0 % 10.0 % 23.9 %equity (ROE) %

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SUPPLEMENTARY INFORMATION

(in thousands, except for Policies In Force data)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2020

2019

2020

2019

Premiums

Direct premiums written - Florida

$

334,916

$

280,141

$

948,196

$

819,185

Direct premiums written - Other States

74,502

62,731

200,460

170,881

Direct premiums written - Total

$

409,418

$

342,872

$

1,148,656

$

990,066

Direct premiums earned

$

357,208

$

313,065

$

1,020,798

$

911,550

Net premiums earned

$

234,191

$

206,599

$

681,390

$

626,683

Underwriting Ratios - Net

Loss and loss adjustment expense ratio

101.8

%

64.3

%

77.0

%

57.3

%

Policy acquisition cost ratio

22.1

%

21.8

%

21.6

%

21.2

%

Other operating expense ratio6

10.8

%

11.6

%

11.2

%

12.0

%

General and administrative expense ratio6

32.9

%

33.5

%

32.8

%

33.2

%

Combined ratio

134.7

%

97.8

%

109.8

%

90.5

%

Other Items

(Favorable)/Unfavorable prior year's reserve development

$

30,085

$

3,218

$

34,904

$

3,703

Points on the loss and loss adjustment expense ratio

12.9

pts

1.6

pts

5.1

pts

59

bps

6 Expense ratio excludes interest expense.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SUPPLEMENTARY INFORMATION

(in thousands, except for Policies In Force data)

Three Months Ended Nine Months Ended

September 30, September 30,

2020 2019 2020 2019

Premiums

Directpremiums $ 334,916 $ 280,141 $ 948,196 $ 819,185 written -Florida

Directpremiums 74,502 62,731 200,460 170,881 written -Other States

Directpremiums $ 409,418 $ 342,872 $ 1,148,656 $ 990,066 written -Total

Directpremiums $ 357,208 $ 313,065 $ 1,020,798 $ 911,550 earned

Net premiums $ 234,191 $ 206,599 $ 681,390 $ 626,683 earned



Underwriting Ratios - Net

Loss and lossadjustment 101.8 % 64.3 % 77.0 % 57.3 %expense ratio

Policyacquisition 22.1 % 21.8 % 21.6 % 21.2 %cost ratio

Otheroperating 10.8 % 11.6 % 11.2 % 12.0 %expense ratio^6

General andadministrative 32.9 % 33.5 % 32.8 % 33.2 %expense ratio^6

Combined ratio 134.7 % 97.8 % 109.8 % 90.5 %



Other Items

(Favorable)/Unfavorableprior year's $ 30,085 $ 3,218 $ 34,904 $ 3,703 reservedevelopment

Points on theloss and loss 12.9 pts 1.6 pts 5.1 pts 59 bpsadjustmentexpense ratio



^6 Expense ratio excludes interest expense.

As of

September 30,

2020

2019

Policies in force

Florida

715,130

653,202

Other States

250,332

219,401

Total

965,462

872,603

Premiums in force

Florida

$

1,202,318

$

1,051,030

Other States

257,653

216,651

Total

$

1,459,971

$

1,267,681

Total Insured Value

Florida

$

185,382,817

$

161,761,450

Other States

105,432,408

87,516,672

Total

$

290,815,225

$

249,278,122

As of

September 30,

2020 2019

Policies in force

Florida 715,130 653,202

Other States 250,332 219,401

Total 965,462 872,603



Premiums in force

Florida $ 1,202,318 $ 1,051,030

Other States 257,653 216,651

Total $ 1,459,971 $ 1,267,681



Total Insured Value

Florida $ 185,382,817 $ 161,761,450

Other States 105,432,408 87,516,672

Total $ 290,815,225 $ 249,278,122

Three Months Ended September 30, 2020

Direct

Loss

Ceded

Loss

Net

Loss

Premiums earned

$

357,208

$

123,017

$

234,191

Loss and loss adjustment expenses:

Core losses

$

140,470

39.3

%

$

78

0.1

%

$

140,392

59.9

%

Weather events7

70,000

19.6

%

2,000

1.6

%

68,000

29.0

%

Prior year's reserve development

136,737

38.3

%

106,652

86.7

%

30,085

12.9

%

Total losses and loss adjustment expenses

$

347,207

97.2

%

$

108,730

88.4

%

$

238,477

101.8

%

7Includes only current year weather events beyond those expected.

Three Months Ended September 30, 2020

Direct Loss Ceded Loss Net Loss

Premiums $ 357,208 $ 123,017 $ 234,191 earned



Loss and lossadjustment expenses:

Core losses $ 140,470 39.3 % $ 78 0.1 % $ 140,392 59.9 %

Weather 70,000 19.6 % 2,000 1.6 % 68,000 29.0 %events^7

Prior year'sreserve 136,737 38.3 % 106,652 86.7 % 30,085 12.9 %development

Total lossesand loss $ 347,207 97.2 % $ 108,730 88.4 % $ 238,477 101.8 %adjustmentexpenses



^7Includes only current year weather events beyond those expected.

Nine Months Ended September 30, 2020

Direct

Loss

Ceded

Loss

Net

Loss

Premiums earned

$

1,020,798

$

339,408

$

681,390

Loss and loss adjustment expenses:

Core losses

$

404,092

39.6

%

$

126

-

%

$

403,966

59.3

%

Weather events7

88,000

8.6

%

2,000

0.6

%

86,000

12.6

%

Prior year's reserve development

190,804

18.7

%

155,900

46.0

%

34,904

5.1

%

Total losses and loss adjustment expenses

$

682,896

66.9

%

$

158,026

46.6

%

$

524,870

77.0

%

7Includes only current year weather events beyond those expected.

Nine Months Ended September 30, 2020

Direct Loss Ceded Loss Net Loss

Premiums $ 1,020,798 $ 339,408 $ 681,390 earned



Loss and lossadjustment expenses:

Core losses $ 404,092 39.6 % $ 126 - % $ 403,966 59.3 %

Weather 88,000 8.6 % 2,000 0.6 % 86,000 12.6 %events^7

Prior year'sreserve 190,804 18.7 % 155,900 46.0 % 34,904 5.1 %development

Total lossesand loss $ 682,896 66.9 % $ 158,026 46.6 % $ 524,870 77.0 %adjustmentexpenses



^7Includes only current year weather events beyond those expected.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except for per share data)

Three Months Ended

Nine Months Ended

Guidance

September 30,

September 30,

Full Year 2020E

2020

2019

2020

2019

Income (Loss) Before Income Taxes

$

(3,792

)

$

27,896

$

51,230

$

132,570

Adjustments:

Reinstatement premium, net of commissions8

-

1,074

-

1,959

Net unrealized (gains)/losses on equity securities

(1,991

)

(573

)

2,162

(22,364

)

Net realized (gains)/losses on investments

(53,827

)

22

(54,294

)

13,152

Interest Expense

16

57

85

203

Total Adjustments

(55,802

)

580

(52,047

)

(7,050

)

Non-GAAP Adjusted Operating Income

$

(59,594

)

$

28,476

$

(817

)

$

125,520

GAAP Diluted EPS

$

(0.10

)

$

0.59

$

1.14

$

2.82

$ 1.80 - 2.10

Adjustments:

Reinstatement premium, net of commissions8

-

0.03

-

0.06

-

Net unrealized (gains)/losses on equity securities

(0.06

)

(0.01

)

0.07

(0.64

)

0.07

Net realized (gains)/losses on investments

(1.70

)

-

(1.69

)

0.38

(1.69

)

Total Pre-Tax Adjustments

(1.76

)

0.02

(1.62

)

(0.20

)

(1.62

)

Income Tax on Above Adjustments

0.43

-

0.40

0.05

0.40

Total Adjustments

(1.33

)

0.02

(1.22

)

(0.15

)

(1.22

)

Non-GAAP Adjusted EPS

$

(1.43

)

$

0.61

$

(0.08

)

$

2.67

$ 0.55 - 0.85

8 Includes reinstatement premiums not covered by reinstatement premium protection and related commissions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201027006150/en/

CONTACT: Investor Relations Contact: Rob Luther, 954-958-1200 ext. 6750 VP, Corporate Development, Strategy & IR rluther@universalproperty.com

CONTACT: Media Relations Contact: Andy Brimmer / Mahmoud Siddig, 212-355-4449 Joele Frank, Wilkinson Brimmer Katcher