United Insurance Holdings Corp. (NASDAQ:UIHC) Q3 2019 Earnings Conference Call - Final Transcript

Oct 31, 2019 • 09:00 am ET


United Insurance Holdings Corp. (NASDAQ:UIHC) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings. Welcome to the United Insurance Holdings Corporation Third Quarter 2019 Conference Call. [Operator Instructions]

I would now turn the conference over to your host Adam Prior of Equity Group. You may begin sir.

Adam Prior

Thank you very much and good morning 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. In addition the company has made an accompanying presentation available on its website. You're also welcome to contact our office at 212 836-9606 and we'd be happy to send you a copy. In addition UPC Insurance has made this broadcast available on its website as well. Before we get started I'd 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 federal securities laws including statements relating to trends in the company's operations and financial results and the business and the product of the company and its subsidiary.

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 U.S. Securities and Exchange Commission. UPC specifically disclaims any obligation to update or revise any forward-looking statements whether as a result of new information future developments or otherwise.

With that I'd 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 your taking time to join us on the call. As Adam said we are now publishing an investor presentation in conjunction with our earnings release. You can find it on our website and I encourage you to review it. While we will not be going slide by slide through that presentation we will refer from time to time to some of the data and analytics included therein. $1.05 per share in after-tax cat losses obviously ruined our quarter and understandably that's the headline. But for us the storyline is: a more conservative cat-reserving posture; continued strong organic growth in both personal and commercial lines; and improvement in underlying results as the cumulative effect of rate increases claims handling and underwriting initiatives takes hold in our book.

On the reserving side we're just putting a lot more IBNR on cat events given the development powers we've seen the past couple of years. We've been in the cat business for 20 years. And on the nonhurricane cat events we're seeing development patterns that have no precedent in the historical record. We are pricing and reserving for that as if it will continue and working hard on the claims handling side to try to mitigate it. On the growth front both personal lines and commercial lines continue to show