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United Insurance (UIHC) Estimates Q2 Cat Loss of $31 Million
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United Insurance Holdings estimates second-quarter 2021 catastrophe loss of $40 million pre-tax or $31 million post-tax. The losses can be attributed to two tropical storms and 14 additional PCS catastrophe events. PCS or Property Claim Service unit is the internationally recognized authority on insured property losses from catastrophes in the United States, Puerto Rico, and the U.S. Virgin Islands.
The Zacks Consensus Estimate for United Insurance’s second-quarter earnings is currently pegged at 15 cents, indicating a decline of 15% from the year-ago reported figure. We expect estimates to move south once analysts start incorporating loss estimates into their numbers.
Being a property and casualty insurer, United Insurance Holdings has substantial exposure to catastrophic events, which have been inducing volatility in its underwriting results. The company’s cat loss of $24 million, net of reinsurance, in the first quarter of 2021 was lower than expected and benefited from reduced AOP cat retention in its 2021 reinsurance program. Underlying combined ratio improved 30 basis points year over year. The company targets underlying combined ratio below 80 over time.
The company believes in accelerating revenues while lowering loss and reinsurance costs through risk selection and exposure management, which should help it improve underwriting profit expand underlying margins.
United Insurance Holdings stated that its reinsurance program considerably lowers its hurricane exposure for the pool companies to about $25 million per occurrence, and $70 million in the aggregate, approximately one-third of the net incurred in the 2020 season. Per Colorado State University, this year’s hurricane season could be about 140% of average season. Thus, the reinsurance program is a strategic fit. Also, the company believes that though this planned action will escalate its reinsurance spend, it will lower earnings volatility of as well as exposure to loss of capital.
This Zacks Rank #3 (Hold) property and casualty insurer noted that 2021 is the third year of compounding rate increases. It estimates pricing improvement to continue with renewal business rate increases to even accelerate. United Insurance Holdings has filed for rate increases in Florida, Texas, South Carolina, North Carolina, Louisiana, and New York, averaging nearly 15%.
United Insurance Holdings boasts leading market share in commercial residential property insurance (commercial lines) in Florida. Thus, given its substantial exposure to Florida, the company expects to benefit from Florida legislative changes.
Shares of United Insurance Holdings have lost 2.1% year to date against the industry’s increase of 16%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the same space include Axis Capital Holdings Limited (AXS - Free Report) , Cincinnati Financial Corporation (CINF - Free Report) , and Alleghany .
Cincinnati Financial delivered an earnings surprise of 30.48% in the last reported quarter. It carries a Zacks Rank #2 (Buy).
Alleghany delivered an earnings surprise of 110.97% in the last-reported quarter. It carries a Zacks Rank #2.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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United Insurance (UIHC) Estimates Q2 Cat Loss of $31 Million
United Insurance Holdings estimates second-quarter 2021 catastrophe loss of $40 million pre-tax or $31 million post-tax. The losses can be attributed to two tropical storms and 14 additional PCS catastrophe events. PCS or Property Claim Service unit is the internationally recognized authority on insured property losses from catastrophes in the United States, Puerto Rico, and the U.S. Virgin Islands.
The Zacks Consensus Estimate for United Insurance’s second-quarter earnings is currently pegged at 15 cents, indicating a decline of 15% from the year-ago reported figure. We expect estimates to move south once analysts start incorporating loss estimates into their numbers.
Being a property and casualty insurer, United Insurance Holdings has substantial exposure to catastrophic events, which have been inducing volatility in its underwriting results. The company’s cat loss of $24 million, net of reinsurance, in the first quarter of 2021 was lower than expected and benefited from reduced AOP cat retention in its 2021 reinsurance program. Underlying combined ratio improved 30 basis points year over year. The company targets underlying combined ratio below 80 over time.
The company believes in accelerating revenues while lowering loss and reinsurance costs through risk selection and exposure management, which should help it improve underwriting profit expand underlying margins.
United Insurance Holdings stated that its reinsurance program considerably lowers its hurricane exposure for the pool companies to about $25 million per occurrence, and $70 million in the aggregate, approximately one-third of the net incurred in the 2020 season. Per Colorado State University, this year’s hurricane season could be about 140% of average season. Thus, the reinsurance program is a strategic fit. Also, the company believes that though this planned action will escalate its reinsurance spend, it will lower earnings volatility of as well as exposure to loss of capital.
This Zacks Rank #3 (Hold) property and casualty insurer noted that 2021 is the third year of compounding rate increases. It estimates pricing improvement to continue with renewal business rate increases to even accelerate. United Insurance Holdings has filed for rate increases in Florida, Texas, South Carolina, North Carolina, Louisiana, and New York, averaging nearly 15%.
United Insurance Holdings boasts leading market share in commercial residential property insurance (commercial lines) in Florida. Thus, given its substantial exposure to Florida, the company expects to benefit from Florida legislative changes.
Shares of United Insurance Holdings have lost 2.1% year to date against the industry’s increase of 16%.
Stocks to Consider
Some better-ranked stocks from the same space include Axis Capital Holdings Limited (AXS - Free Report) , Cincinnati Financial Corporation (CINF - Free Report) , and Alleghany .
Axis Capital delivered an earnings surprise of 49.23% in the last reported quarter. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cincinnati Financial delivered an earnings surprise of 30.48% in the last reported quarter. It carries a Zacks Rank #2 (Buy).
Alleghany delivered an earnings surprise of 110.97% in the last-reported quarter. It carries a Zacks Rank #2.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>