United Insurance Holdings Corp. (NASDAQ:UIHC) Q1 2018 Earnings Conference Call - Final Transcript

May 08, 2018 • 05:00 pm ET


United Insurance Holdings Corp. (NASDAQ:UIHC) Q1 2018 Earnings Conference Call - Final Transcript


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Greetings and welcome to the UPC Insurance Q1 2018 Financial Results Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.

[Operator Instructions]

As a reminder, this conference is being recorded. I would now like to turn the conference over to Adam Prior of The Equity Group. Thank you. Please begin.

Adam Prior

Thank you and good afternoon, everyone. Thank you for joining us. You can find copies of UPC's earnings release today at www.upcinsurance.com in the Investor Relations section. You are also welcomed to contact our office at 212-836-9606 and we would be happy to send you a copy. In addition, UPC Insurance has made this broadcast available on its website.

Before we get started, I would like to read the following statement on behalf of the Company. Except with respect to historical information, statements made in this conference call constitute forward-looking statements within the meaning of the Federal Securities Laws, including statements relating to trends and the Company's operations and financial results and the business and the product of the Company and its subsidiaries. Actual results from UPC may differ materially from those results anticipated in these forward-looking statements as a result of risks and uncertainties, including those described from time-to-time in UPC's filings with the US Securities and Exchange Commission.

UPC specifically disclaims any obligation to update or revise any forward-looking statements whether as a result of the new information, future developments or otherwise. With that, I would now like to turn the call over to Mr. John Forney, UPC's Chief Executive Officer. Please go ahead, John.

John Forney

Thanks, Adam. This is John Forney, President and CEO of UPC Insurance. With me today is Brad Martz, our Chief Financial Officer. On behalf of everyone at UPC, we appreciate you are taking time to join us for the call. Q1 2018 saw a continuation of some very positive trends at UPC Insurance, excellent and balanced organic growth, solid and improving non-cat loss ratios and stable or increasing average premiums. Because of these and other favorable trends, we were able to produce almost $25 million of EBITDA and over 13% annualized ROE in a seasonally low quarter and despite cat losses from winter storms in both the Gulf and Northeast regions.

Just after the end of Q1, we celebrated the one year anniversary of our merger with AmCo Holdings, the parent of American Coastal Insurance Company. The merger has exceeded our expectations, providing scale, higher margins and product diversification while opening up new pathways to future growth. The team at AmRisc that underwrites and places business on behalf of American Coastal has lived up to their reputation as disciplined and skilled underwriters. Despite increasing competition, in the quarter, we grew our commercial lines premium in-force by 4.6% while increasing average premiums.

During the quarter, we also launched our 2018, 2019 cat reinsurance treaty placement process, which has since been completed. Our new internal brokerage team at Skyway reinsurance continued to impress by leading