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Universal Insurance Holdings, Inc. (UVE)

NYSE - NYSE Delayed Price. Currency in USD
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13.22+0.07 (+0.53%)
At close: 4:00PM EDT
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  • D
    Where is the dividend announcement. This company is not managed properly. Even the earning announcement date is missing
  • j
    The legislation passed in Florida will do just about nothing. Litigators probably have seminars and zoom meetings on how to get around it. The only solution in Florida to stop is dont allow attorneys to suggestive advertise. Just name phone and address. A good attorney does not need to advertise anyway.
  • s
    scooby doo
    5.3 times forward earnings. that is some wild stuff in this market.
  • A
    Can someone enlighten me? Is this UVE?

    In consent orders signed by Florida Insurance Commissioner David Altmaier, Universal Insurance Co. of North America (UICNA) was approved to drop 13,294 personal residential policies and Gulfstream Property & Casualty was approved to cancel about 20,311 personal residential policies. Both insurers will remove the policies over the next 45 days.

    Southern Fidelity Insurance Co. was approved to nonrenew approximately 19,600 personal residential policies over the next 14 months, with approximately 2,300 receiving less than the required statutory written notice of nonrenewal.

    The early cancellation and nonrenewals of policies is “an extraordinary statutory remedy reserved to address insurers which are or may be in hazardous financial condition,” the Florida Office of Insurance Regulation stated in the orders, which also require the insurers to take other steps to stay solvent.

    The regulator’s actions are the most recent indicators of Florida’s stressed insurance marketplace that has been described as “spiraling towards collapse.” Altmaier and others have previously warned of problems for Florida’s domestic companies thanks to spiking litigation, dishonest contracting practices, catastrophe events and high reinsurance costs. Florida insurers were reported to have lost a combined $1.7 billion in 2020.

    “OIR remains focused on the protection of consumers and fostering stability in Florida’s insurance marketplace,” OIR said in a statement to Insurance Journal. “Allowing for the early cancellation or nonrenewal of policies is not a decision made lightly, and requires a finding that such action is necessary to protect the best interests of the public or policyholders.”

    The respective orders outline what “hazardous” financial conditions led to the approval of the policy cancellations and nonrenewals:

    Universal Insurance Co. of North America (UICNA)
    UICNA’s cancellation of 13,294 of its 57,000 Florida policies will occur as part of a financial restructuring plan that includes a merger with and into Universal North America Insurance Co., a Texas domestic company.

    UICNA reported net losses of $4.1 million in 2019 and $22.5 million in 2020, and had decreased its surplus by more than $9 million as of Dec. 31, 2020, OIR stated in the order approving the policy cancellations. UICNA’s surplus deterioration came despite the company receiving capital contributions of $13.5 million, without which it would have been considered an impaired insurer as it would have fallen below Florida’s minimum required surplus of $10 million.

    OIR said UICNA provided financial projections that show without the cancellation of the approximately 9,341 homeowners policies and 3,953 dwelling policies, the company’s financial condition would further deteriorate to an unsustainable level by the end of 2021.

    Given UICNA’s catastrophe loss experience, higher reinsurance costs, and significantly increased litigation, the identified policies for cancellation would “provide an immediate impact to the company’s financial position and facilitate the completion of a financial restructuring plan to protect its policyholders and the public,” the order says.

    The policy cancellations are also a condition of the company’s merger plan, OIR said, which is still subject to approval by the Texas regulator. If the merger plan is not approved, or if Universal North America Insurance Co. is unsuccessful in becoming licensed in Florida, “UICNA agrees it will consent to immediate administrative supervision, for the purpose of conserving assets while UICNA develops a fully funded plan,” the OIR order states.

    UICNA must file its plan of merger with OIR and the Texas Department of Insurance no later than May 14, 2021, and must provide at least 45 days’ notice of cancellation to the affected policyholders. UICNA must also continue to file monthly financial statements with OIR until further notice and submit an updated business plan to the regulator by Aug. 1, 2021 for the period of July 1, 2021 through Dec. 31, 2024. The plan must include the company’s ability to generate “successful operation results by the implementation of underwriting changes, rate adjustments, operational savings, capital management, and other significant modifications to its current business model.”
  • B
    Here's the problem with UVE and any other insurer.. Weather is the variable. The last couple of years it hasn't been good. UVE comes out with guidance that excludes most events.. So in a perfect year they can hit their number $.. But perfect years may not happen.. If this is a $3 annual earning stock it should be trading in the $30's at least.. But it doesn't. Good luck
  • D
    +++Universal Insurance Hldgs Q1 Adj. EPS $0.84 Beats $0.69 Estimate
    +++Universal Insurance Reaffirms FY21 Guidance: Adj. EPS $2.75-$3 vs $2.20 Estimate
  • E
    Despite a long tradition of stockpicking in the US I am amazed that so few seem to follow UVE. The new legislation (passed Friday, 3 days ago) and its hopefully positive effects on Florida's insurerers seem to be below the radar for most investors. However, one of the cornerstones to achieve a healthy Floridian home insurance market is now in place (unless litigation lawyers find new ways to parasite on the market).
  • s
    scooby doo
    5.5x forward earnings. that is like finding a unicorn in this market. bought few times this afternoon. price dropped every time after a purchase. unless there is a big seller or a large short seller cannot make out the price action. adding more if the market keeps dropping it.
  • E
    I estimate 20-80% upside within the next year at the current market price of $27. Considering Sean Downes' recent comments about the second quarter being good, I estimate that current book value is around $16.35 per share, or 5% above Q1 book value (in line with their historical growth rates for BVPS). The normal trading range for the stock is 2-3X book value, which puts us in a range of $33 to $49. If it's a light hurricane season, I expect to see high ROE's and trading up around 3X book value. If it's a bad season, I'd expect it to be closer to 2X BV. Either way, the current price is a steal. Time to buy another 500 shares.
  • M
    what happened to the quarterly dividend? they usually announce it by this time of the year. thoughts?
  • E
    Fednat had another unfavorable reserve adjustment from prior year claims. Does this mean we'll see the same thing on UVE's Q4 results? NO. But it's certainly possible and it's clearly what the analysts think with negative estimates. This is creating fear in the sector. We have a setup here for an absolutely massive rally if the Q4 results are good. If it's another negative Q4 we may see the price drop into the high teens with stock trading right around book value.
  • g
    Looks like a 13 cent special dividend 29 total same as last year
  • U
    Fabulous results! The stock is way to cheap. I will keep buying. Multi year upward trend will commence.
  • M
    We are in the middle of hurricane season and that will keep the share price down even though the reinsurance strategy proved extremely effective last year. The stock will be back in the $35-$40 range for those patient enough to wait it out. As an investor I could care less what the traders are doing
  • B
    Florida Insurance market general condition may appear not to be so good in recent past, but that is behind us

    The state is a wonderful place with a lot of people moving into the state.

    This is a required business and every home owner is required to have insurance. there was abuse in the market which has been corrected by legislation and market shall improve.

    This is a wonderful time to buy this share. Load up the share
  • A
    Management compensation is too high for a company like UVE. They need to get their act straight so that they don't miss like this. Very bad results. Hopefully they will hit 4.50 eps this year.
  • L
    In some ways, as a long term investor in UVE, it was nice of the bear raiders to allow me to load up on more shares after the crash. Thanks sleazeball bear raiders.
  • A
    Man o man! These are extremely strong financials.
    UVE today reports net income and EPS of $36.4 million which is $1.03 per share for Q4 2017. This is far better than prior quarter or prior years quarter and far better than analysts’ estimates.
    Beautiful financials. I would not be surprised to see UVE head over $40 per share.
  • p
    The 6% drop in ore market should have been the worst of it today. Not sure who brought it down so low but thanks. Picked quite a fee up at around 31. Will recover most of the loss.