Universal Insurance Holdings Inc. (NYSE:UVE) Q1 2018 Earnings Conference Call - Preliminary Transcript
Apr 25, 2018 • 10:00 am ET
Good day, ladies and gentlemen, and welcome to UVE First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only-mode. Later, we will conduct a question-and-answer session and instruction will follow at that time. (Operator Instructions) As a reminder, today's conference is being recorded.
I would now like to introduce your host for today's conference Mr. Dean Evans, VP of Investor Relations. Sir, please go ahead.
Thank you, Michael, and good morning everyone. Welcome to the first quarter 2018 earnings conference call for Universal Insurance Holdings, Inc. My name is Dean Evans and I'm the Vice President of Investor Relations here at Universal.
With me in the room today are Chairman and Chief Executive Officer, Sean Downes; President and Chief Risk Officer, Jon Springer; and Chief Financial Officer, Frank Wilcox. Following Sean's opening remarks, Jon will provide an update on several important current topics and Frank will review financial results. The call will then be reopened for questions.
Yesterday afternoon, we issued our earnings press release, which is available under the press release's section of our website at www.universalinsurancehodlings.com. A replay of this presentation will be available on the homepage of our website until May 9, 2018.
Before we begin, please note that this presentation may contain forward-looking statements about our business and financial results. Forward-looking statements reflect our current view of future events and are typically associated with words such as believe, expect and anticipate or similar expressions.
We caution those listening, including investors, not to rely solely on forward-looking statements as they imply risks and uncertainties, some of which cannot be predicted or quantified and future results can differ materially from our expectations.
We encourage you to carefully consider the risks described in our filings with the Securities and Exchange Commission, which are available on the SEC's website or SEC filing section of our website. We do not undertake any obligation to update or correct any forward-looking statements.
With that, I would like to turn the presentation over to our Chairman and Chief Executive Officer, Sean Downes.
Thank you Dean, and thank you everyone for joining us today. As usual, I will begin by providing some highlights from the quarter and we will then review our growth initiatives and strategy. Jon will cover several important current topics and Frank will conclude by discussing financing results.
We're pleased with our results for the first quarter. Overall, we reported net income of 40.1 million and diluted EPS of $1.12 for the first quarter of 2018, which equates to an annualized ROE of 34.6% for the quarter. We reported excellent top line growth in the first quarter with 10% growth in direct premiums written including 7.2% growth within Florida and 32.7% growth in other states.
Our underwriting profitability was strong, with a 76.5% combined ratio for the quarter. The current year's quarter includes no weather losses beyond plan at a negligible reserve change, and we highlight just because we have taken a conservative approach to our underlying loss