United Insurance Holdings Corp., the property and casualty insurance holding company, has released its financial results for Q1 2023. The company reported a combined ratio of 70.5% for Q1 2023 as compared to a ratio of 191.7% for Q1 2023.
It reported a net income of $260.9 million for Q1 2023. The reported net loss was $33.2 million for Q1 2022 showing an increase in the net income.
The drivers of the net income from continuing operations during Q1 2023 include increased gross premiums earned, decreased loss and LAE driven by decreased non-catastrophe losses, and decreases across policy acquisition costs, operating and underwriting expenses and general and administrative expenses.
The Company’s total gross written premium increased by $44.7 million, or 31.4%, to $187.1 million for Q1 2023, from $142.4 million for Q1 2022. The reason for this increase is driven primarily by an increase in commercial premiums written, as the company’s focus is on transitioning towards a specialty commercial lines underwriter.
Net premiums earned by the company were $87.3 million in Q1 2023 as compared to $57.7 million in Q1 2022.
The company’s operating and underwriting expenses decreased by $4.9 million, to $5.7 million for Q1 2023, from $10.6 million for Q1 2022. This primarily is due to decreased investments in technology and decreased underwriting expenses as the result of the decrease in personal lines premiums.
The company’s loss and LAE decreased by $13.4 million. It stands at $19.1 million for Q1 2023, from $32.5 million for Q1 2022. Loss and LAE expense as a percentage of net earned premiums decreased 34.4 points to 21.9% for Q1 2023, compared to 56.3% for Q1 2022.
Excluding catastrophe losses and reserve development, the Company’s gross underlying loss and LAE ratio for the first quarter of 2023 would have been 13.3%, a decrease of 10.4 points from 23.7% during the first quarter of 2022.
Dan Peed, Chief Executive Officer (CEO), commented: “Our commercial lines portfolio written in our subsidiary American Coastal Insurance Company continued to perform very well, which is reflected within the Net Income from Continuing Operations for the current period ended March 31, 2023.
“We believe these results are sustainable in the near and intermediate terms given the hard market conditions in Florida and reflect our transition to a commercial specialty insurer.”
