United Insurance Holdings Corp. (UIHC) stock plummeted 9.96% in the after-hours trading session at the price of $4.52 despite no fundamental reason. The last published news was its financial results for the third quarter of 2021.
UIHC is an insurance holding firm that provides services to individual and commercial residential property. It also offers casualty insurance services using its wholly-owned insurance subsidiaries through various distribution channels.
UIHC Third Quarter 2021 Earnings Report
On 11th November 2021, UIHC published its financial results for the third quarter, ended 30th September 2021, and provided business updates.
Financial Highlights
For the third quarter of 2021, net loss attributable to UIHC totaled $14.3 million, or per diluted share of $0.33. Net loss attributable to the company was $74.1 million, or per diluted share of $1.73, for the third quarter of 2020. For the third quarter of 2021, policy acquisition expenses declined by 20.1%, or $11.8 million, to $46.9 million. Policy acquisition expenses were $58.7 million for the third quarter ended 30th September 2020.
For the third quarter of 2021, a total gross written premium of UIHC was reduced by 11.8%, or $43.3 million, to $322.5 million. The gross written premium was roughly $365.8 million in the third quarter of the previous year. Loss and LAE totaled $102.8 million for the third quarter ended 30th September 2021. It represents a drop of 53.0%, or $115.9 million, compared to $218.7 million in the last year third quarter.
For the third quarter of 2021, operating expenses were reduced by 6.2%, or $0.9 million, to $15.4 million. Operating expenses totaled $14.5 million in the same quarter of 2020. For the third quarter of 2021, UIHC reported general and administrative costs of $13.9 million. A drop of 27.6%, or $5.3 million, compared to $19.2 million in the third quarter of the prior year. The cash, restricted cash, and investment totaled $1.2 billion on 30th September 2021. Cash, restricted cash, and investment were $1.3 billion on 31st December 2020.
Management Comments
Chief executive officer of UIHC, Dan Peed, remarked that their third quarter of 2021 ended with a relatively lower loss compared to the last year. The earnings were in accordance with their expectations for this ongoing year. They continue to take further steps to improve underlying profitability; he added.
