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It’s already June and we’re entering hurricane season. And you live in Florida. Ooooooh, I’m so scared the big bad hurricane is going to get me. Well, the fact of the matter is, there’s no need to be scared, because you can always buy insurance for your house in the event it gets smashed by a hurricane. Now losing your house is no laughing matter but if you have insurance you can eventually get over it when the insurance guy gives you all of his quatloops to rebuild your home.
Now wait a minute, insurance companies don’t exist to lose money. They are going to get their taste first. So you pay a healthy insurance premium so that the insurance company will fix your house if the hurricane ever comes. That’s the $64,000 question. IF the hurricane comes. What if the hurricane doesn’t come? Does the insurance company give you your premiums back? Ha ha ha – don’t make me laugh. When your lottery ticket doesn’t win, do you get your dollar back? The insurance company KEEPS your premium and its shareholders make money. It’s that simple. Did I tell you I took an Insurance class when I was at Wharton?
United Insurance Holdings Corp. operates as a property and casualty insurance holding company that sources, writes, and services residential property and casualty insurance policies in Florida, Massachusetts, New Jersey, North Carolina, Rhode Island, South Carolina, and Texas. It offers homeowners policies and related coverage accounts; coverage options for standard single-family homeowners, tenants, and condominium unit owners; and flood policies. The company markets and distributes its products through a network of agents. United Insurance Holdings Corp. is based in St. Petersburg, Florida.
United Insurance Holdings Corp (UIHC) is a Florida domiciled homeowner insurance company selling at a significant discount on both an absolute and relative basis. UIHC is growing premiums at a rapid rate in Florida and other coastal states while seeing a large decrease in reinsurance rates. The company is now able to write more business and take on less risk.
Today I bought stock in United Insurance Holdings Corp (UIHC) at 17.80. I will sell it in 4 to 6 weeks at 20.52. Here’s why I like UIHC:
Look at this ridiculous chart. The stock price just keeps going up and up and up and up!
That’s right, it’s going to keep going up because this company is making a ridiculous amount of money off of the high insurance premiums that all of the other insurance companies have banded together to keep pornographically high. New insurance companies aren’t coming in because they are too small, get boxed out of reinsurance, and they are all afraid a hurricane is going to hit Florida and they’ll get crushed on claims.
Florida has over $1.8 trillion in insured residential property exposure and it is estimated that a 1 in 100 year storm would have a probable maximum loss of more than $60 billion. This makes it the largest reinsurance market in the world. In the aftermath of Hurricane Andrew, which was only a 1 in 67 year storm, 11 insurance companies went bankrupt and many more got out of dodge and headed for the hills. This exodus created opportunity and less competition for companies like UIHC.
What is this all about? It’s like being a Titan at the craps table and you have black chips on all of the numbers and Hat Man is rolling numbers for like 45 minutes. Every time he rolls the dice you get numbers and the dealer passes chips down to you. You don’t even ever think that a seven is going to come up. You have the Titans, Clay Henry and Scud all saying “Go Hat Man Go…and the black chips are getting stacked in front of you as you calmly sip your Johnny Walker Blue. That’s what’s going on with these hurricanes.
So let’s not avoid the issue. If I am right about this stock, I’ll hit my target in 4 to 6 weeks based on its current momentum. The stock is up 183% in the last 12 months, so that’s 15% per month. Well, what would derail this price climb? A hurricane would.
Hurricane season in the Atlantic is from June 1 to Nov. 30.
There is a 72 percent probability that a major hurricane will hit the US in 2014. The East Coast has a 48 percent chance of seeing a land-falling Category 3 or greater storm this season, and the probability that landfall would occur in Florida is 34 percent. Since hurricane season is 6 months, the odds that a hurricane will hit Florida in the next 2 months is 1/3 of 34% or only about 11%. So when you think about it, the only way this stock could hit a speedbump is the 11% chance that a hurricane hits Florida in the next 2 months. Meanwhile they keep collecting your premiums. Keep rolling the dice, Hatman.
United Insurance Holdings is one of the best insurance companies today because they are actually growing and should generate a really nice ROE over the next few years. Return on average equity was up nearly 21% from the 16% for the prior two years. The company is really not followed too closely by sell side ANAL-ysts. Like I said, the catastrophe risk is overstated. The company is led by management and a board that own a significant number of shares, and they have priced risk well in the past, and are now diversifying risk by moving into other states. Five insiders purchased the stock within one month. The stock was sold by no insiders in the month of intensive purchasing. Three of these five insiders increased their holdings by more than 10%.
As more and more states are added, UIHC will reduce their single event risk and their political risk. The company is also able to write premiums at better terms due to the current soft market that exists in property reinsurance.
Over the next three years I expect book value to grow between 30%-100% depending on numerous factors. Investors today are protected by the low relative price to book ratio and strong historical performance.
This historical stock performance by itself indicates that UIHC stock performance should lead to above average price performance in the next one to three months. Historical price action of a company's stock is an especially helpful measure used to identify intermediate and short term performance potential. Long term historical performance is a good predictor of future price performance.
It looks to me like UIHC will be added to the Russell 2000 index later this month, judging by its market cap. This should help with institutional investors falling in love with this stock.. This company is growing The share price shot up when UIHC recently reported $.45 for the Mar quarter. Incoming additional policies at the ultra high premiums will make revenues much greater for UIH, all of which should increase the valuation. If you add the most recent quarter's earnings to the 2nd and 3rd quarter's estimates, you come up with $1.29 in earnings or 11 cents less than the full year's estimates. Are you kidding me? The 4th quarter is usually their best quarter. These full year estimates should be much greater than $2.00 for the year, At the existing multiples, you’ll see conservatively a $20 stock price and possibly $30 if things go right by the end of the year.
I can't believe how cheap this stock is after two killer quarters. It's selling for at least 50% below its value. This is a no brainer. The P/E (10.7 is so low right now. United Insurance is trading below the peer-average P/E ratio of 12.7. Not to say that it is impossible for it to go down, however, it is very undervalued in comparison to its growth in both revenue and earnings, and its competitors. This means that UIHC is least likely to take a bullet even if a hurricane comes. Having said that, you have Jim Cantore and the Weather Channel. If Jim Cantore doesn’t buy a plane ticket to Florida, you have nothing to worry about. Just watch the Weather Channel. You’ll have plenty of time to sell your stock if the hurricane is actually coming. Jim Cantore used to lift weights…but now he’s all small.
After the recent very strong first quarter profit, the company is growing much quicker than historically and now I see a $50 million profit for 2014 which means doubling the EPS fully diluted. A stock price of $21 to $25 is realistic for 2014 and $50 a share before 2016 starts. ANAL-ysts were expecting $63.6 million in revenue for the quarter. UIHC posted total revenue of $67.5 million. That is good, but the earnings results are astoundingly good. ANAL-yst consensus was for $0.32 per share, which is $5.4 million in net income. The latest reported quarterly profit was actually $11.4 million or $0.68 per share. Huge! UIHC beat estimates by $0.36 per share. They beat estimates by +113%. This is indeed huge. The company also pays a 0.90% dividend. Not bad.
For the year beginning June 1, 2014 and ending on May 31, 2015, United entered into excess-of-loss reinsurance agreements with several private reinsurers and with the Florida State Board of Administration (SBA), which administers the Florida Hurricane Catastrophe Fund (FHCF). The private agreements provide coverage against severe weather events such as hurricanes, tropical storms and tornadoes. The agreement with the FHCF only provides coverage in Florida against storms that the National Hurricane Center designates as hurricanes. Ha Ha Ha…they are hedged! You have big hedge funds and pension funds also buying this reinsurance to juice up their returns. So, at the end of the day, this reinsurance can’t be too expensive if the Wall Street tycoons are throwing their money at it. Simply put, the flood of capital into the sector suppresses rates that insurance companies like UIHC need to pay for reinsurance.
For the 2014 hurricane season, UIHC purchased catastrophe excess of loss reinsurance protection of $1.1 billion excess $25 million providing sufficient protection for approximately a one-in-185 year hurricane event. For a single hurricane catastrophe, UIHC will pay, or "retain", the first 70% of losses up to $25 million ($17.5 million) and an affiliated reinsurer will pay the remaining 30% of losses up to $25 million ($7.5 million). The catastrophe excess of loss reinsurance program provides 100% coverage for all losses in excess of $25 million up to $1.1 billion. And all this for an 11% chance event.
The industry itself is seeing solid estimate revisions as of late, substantiating the story that a rising tide lifts all boats. Investors in UIHC are able to purchase a well-run insurer trading at a 25% premium to book value. The rapid growth in policies and the extended period of lower reinsurance rates will allow UIHC to compound book value at about 25% per year, as they rollout into other coastal states. Downside is protected by book value and future growth that should occur outside of Florida.
UIHC is different than other insurers though and is actively looking to expand into other states. So far UIHC has managed to stay out of the spotlight by focusing on sourcing policies in northern and western parts of Florida (diversifying coverage to less riskier parts of the state) and expanding into other states. Right now UIHC is writing policies in South Carolina, Rhode Island, Massachusetts and North Carolina. There are 17 states that they could enter into.
UIHC is aggressively pricing their product in a bid to take up market share and their policies are very easy to sell. Typically policies are priced at a 10-25% discount to other insurers. Despite these discounts, the company is still covering its risk well.
Right now the big insurance companies are de-risking so companies like UIHC who price aggressively will take market share. This isn’t the Costco of insurance companies. They are selling at a discount on premiums that are already ridiculously overpriced. If UIHC can keep hiring handsome agents with good inside sales tequniques, the success that they have already had in existing states should be duplicated in states that they enter. It should be obvious that UIHC will grow their book value by at least 15% per year.
The proof is in the pudding, or more specifically their recent earnings.
Net income for the quarter was $11.4 million, or $0.65 per diluted share, compared to $4.4 million, or $0.27 per diluted share in the first quarter in 2013. The increase in net income was primarily due to lower ceded reinsurance premium percentage for the quarter compared to the prior period and gross earned premium growth in all states in 2014.
The Company's direct gross written premiums increased by $17.0 million, or 22.9%, primarily due to the organic growth in new and renewal business generated in the states in which the Company currently writes.
UPC Insurance's cash and investment holdings totaled $395.0 million at March 31, 2014, compared to $323.8 million at December 31, 2013. UPC Insurance's cash and investment holdings consist primarily of investments in high-quality money market instruments, U.S. Government and agency securities and high-quality corporate debt.
Book value per share increased 25.5% from $6.64 at December 31, 2013, to $8.33 at March 31, 2014. The increase in the Company's book value per share was primarily driven by the $54.0 million of capital raised during the first quarter and due to the Company’s growth in net income.
The board of directors of United Insurance Holdings Corp. (UIHC) approved a 33.3% increase in its annual cash dividend. The property and casualty insurer will now pay a quarterly dividend of 4 cents per share, up from 3 cents per share distributed in the previous quarter. The dividend hike of United Insurance was primarily supported by its consolidated financial position and sturdy bottom-line growth, which resulted from a surge in the top line. Moreover, strong retained earnings also cushion the dividend payout. Retained earnings at the end of 2013 stood at $80.1 million, increasing 29.8% year over year.
Some other reasons why I love this stock:
· PEG ratio of 0.54 vs industry average of 1.79
· Price/Cash Flow TTM of 11.43 vs industry average of 13.51
· EPS Growth (TTM vs. Prior TTM) of 121.62% vs industry average of 101.02%
· Gross Margin (TTM) of 26.48% vs. industry average of 18.86%
· Return on Equity (TTM) of 22.86% vs. industry average of 11.61%
· Long Term Debt/Equity (TTM)of 12.16% vs industry average of 39.58%
Fuggedabouddit!
At the end of the day it’s all about the earnings. ANAL-ysts are projecting earnings of $1.67 on revenues of 274 million. That’s really quite comical considering that they already made $0.65/share in the first quarter alone.
$$$MR. MARKET$$$ projects no hurricanes and earnings of $2.89/share on revenues of $313 million. Keeping the PE of 10, that projects to a share price of $2.89 x 10 = $28.90/share which is well past my selling target.
Here’s what the boss has to say about his company:
“At the beginning of the year we had 117,000 policies in Florida at the end of the year we had a 163,000 policies in Florida. Okay, so that was 39% growth rate. Outside Florida at the beginning of the year we had 18,000 policies, at the end of the year we had 39,000 policies, so 117% growth rate. So that took us from roughly 85:15 Florida, non-Florida to about 80:20 at the end of the year even with that substantial growth rate outside of Florida our installed base in Florida is so much bigger than it just chips away at that ratio doesn’t dramatically transform it but we’re making progress towards our goal of being much more balanced inside Florida and outside of Florida.”
“This was record quarter for UPC Insurance," said John Forney, President and CEO of UPC Insurance. "We produced more net earned premiums and more net income than in any quarter since the Company became publicly traded in 2008. From a strategic perspective, we continued our expansion outside Florida, with over 57% of our total new policies for the quarter coming from other states. I'm proud of the results we produced this quarter but even more excited about our future opportunities."
“2013 was a year with a lot of milestones for UPC insurance. We passed the 200,000 policies in force mark in the fourth quarter of 2013. We passed the $100 million in shareholder equity mark in the third quarter of 2013, and we passed the $200 million in market capitalization threshold also in the fourth quarter of 2013. More importantly, we continue to add to the team of talented professionals at UPC, they were assembling to help us achieve our goal of becoming the premier provider of property insurance in catastrophe exposed areas.”
Keep rolling Hat Man! My next trip to Florida will be a Titan outing at the Hard Rock where I’ll be smoking Partegas cigars as long as my arm while I count all my quatloops from this investment!
I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
Now wait a minute, insurance companies don’t exist to lose money. They are going to get their taste first. So you pay a healthy insurance premium so that the insurance company will fix your house if the hurricane ever comes. That’s the $64,000 question. IF the hurricane comes. What if the hurricane doesn’t come? Does the insurance company give you your premiums back? Ha ha ha – don’t make me laugh. When your lottery ticket doesn’t win, do you get your dollar back? The insurance company KEEPS your premium and its shareholders make money. It’s that simple. Did I tell you I took an Insurance class when I was at Wharton?
United Insurance Holdings Corp. operates as a property and casualty insurance holding company that sources, writes, and services residential property and casualty insurance policies in Florida, Massachusetts, New Jersey, North Carolina, Rhode Island, South Carolina, and Texas. It offers homeowners policies and related coverage accounts; coverage options for standard single-family homeowners, tenants, and condominium unit owners; and flood policies. The company markets and distributes its products through a network of agents. United Insurance Holdings Corp. is based in St. Petersburg, Florida.
United Insurance Holdings Corp (UIHC) is a Florida domiciled homeowner insurance company selling at a significant discount on both an absolute and relative basis. UIHC is growing premiums at a rapid rate in Florida and other coastal states while seeing a large decrease in reinsurance rates. The company is now able to write more business and take on less risk.
Today I bought stock in United Insurance Holdings Corp (UIHC) at 17.80. I will sell it in 4 to 6 weeks at 20.52. Here’s why I like UIHC:
Look at this ridiculous chart. The stock price just keeps going up and up and up and up!
That’s right, it’s going to keep going up because this company is making a ridiculous amount of money off of the high insurance premiums that all of the other insurance companies have banded together to keep pornographically high. New insurance companies aren’t coming in because they are too small, get boxed out of reinsurance, and they are all afraid a hurricane is going to hit Florida and they’ll get crushed on claims.
Florida has over $1.8 trillion in insured residential property exposure and it is estimated that a 1 in 100 year storm would have a probable maximum loss of more than $60 billion. This makes it the largest reinsurance market in the world. In the aftermath of Hurricane Andrew, which was only a 1 in 67 year storm, 11 insurance companies went bankrupt and many more got out of dodge and headed for the hills. This exodus created opportunity and less competition for companies like UIHC.
What is this all about? It’s like being a Titan at the craps table and you have black chips on all of the numbers and Hat Man is rolling numbers for like 45 minutes. Every time he rolls the dice you get numbers and the dealer passes chips down to you. You don’t even ever think that a seven is going to come up. You have the Titans, Clay Henry and Scud all saying “Go Hat Man Go…and the black chips are getting stacked in front of you as you calmly sip your Johnny Walker Blue. That’s what’s going on with these hurricanes.
So let’s not avoid the issue. If I am right about this stock, I’ll hit my target in 4 to 6 weeks based on its current momentum. The stock is up 183% in the last 12 months, so that’s 15% per month. Well, what would derail this price climb? A hurricane would.
Hurricane season in the Atlantic is from June 1 to Nov. 30.
There is a 72 percent probability that a major hurricane will hit the US in 2014. The East Coast has a 48 percent chance of seeing a land-falling Category 3 or greater storm this season, and the probability that landfall would occur in Florida is 34 percent. Since hurricane season is 6 months, the odds that a hurricane will hit Florida in the next 2 months is 1/3 of 34% or only about 11%. So when you think about it, the only way this stock could hit a speedbump is the 11% chance that a hurricane hits Florida in the next 2 months. Meanwhile they keep collecting your premiums. Keep rolling the dice, Hatman.
United Insurance Holdings is one of the best insurance companies today because they are actually growing and should generate a really nice ROE over the next few years. Return on average equity was up nearly 21% from the 16% for the prior two years. The company is really not followed too closely by sell side ANAL-ysts. Like I said, the catastrophe risk is overstated. The company is led by management and a board that own a significant number of shares, and they have priced risk well in the past, and are now diversifying risk by moving into other states. Five insiders purchased the stock within one month. The stock was sold by no insiders in the month of intensive purchasing. Three of these five insiders increased their holdings by more than 10%.
As more and more states are added, UIHC will reduce their single event risk and their political risk. The company is also able to write premiums at better terms due to the current soft market that exists in property reinsurance.
Over the next three years I expect book value to grow between 30%-100% depending on numerous factors. Investors today are protected by the low relative price to book ratio and strong historical performance.
This historical stock performance by itself indicates that UIHC stock performance should lead to above average price performance in the next one to three months. Historical price action of a company's stock is an especially helpful measure used to identify intermediate and short term performance potential. Long term historical performance is a good predictor of future price performance.
It looks to me like UIHC will be added to the Russell 2000 index later this month, judging by its market cap. This should help with institutional investors falling in love with this stock.. This company is growing The share price shot up when UIHC recently reported $.45 for the Mar quarter. Incoming additional policies at the ultra high premiums will make revenues much greater for UIH, all of which should increase the valuation. If you add the most recent quarter's earnings to the 2nd and 3rd quarter's estimates, you come up with $1.29 in earnings or 11 cents less than the full year's estimates. Are you kidding me? The 4th quarter is usually their best quarter. These full year estimates should be much greater than $2.00 for the year, At the existing multiples, you’ll see conservatively a $20 stock price and possibly $30 if things go right by the end of the year.
I can't believe how cheap this stock is after two killer quarters. It's selling for at least 50% below its value. This is a no brainer. The P/E (10.7 is so low right now. United Insurance is trading below the peer-average P/E ratio of 12.7. Not to say that it is impossible for it to go down, however, it is very undervalued in comparison to its growth in both revenue and earnings, and its competitors. This means that UIHC is least likely to take a bullet even if a hurricane comes. Having said that, you have Jim Cantore and the Weather Channel. If Jim Cantore doesn’t buy a plane ticket to Florida, you have nothing to worry about. Just watch the Weather Channel. You’ll have plenty of time to sell your stock if the hurricane is actually coming. Jim Cantore used to lift weights…but now he’s all small.
After the recent very strong first quarter profit, the company is growing much quicker than historically and now I see a $50 million profit for 2014 which means doubling the EPS fully diluted. A stock price of $21 to $25 is realistic for 2014 and $50 a share before 2016 starts. ANAL-ysts were expecting $63.6 million in revenue for the quarter. UIHC posted total revenue of $67.5 million. That is good, but the earnings results are astoundingly good. ANAL-yst consensus was for $0.32 per share, which is $5.4 million in net income. The latest reported quarterly profit was actually $11.4 million or $0.68 per share. Huge! UIHC beat estimates by $0.36 per share. They beat estimates by +113%. This is indeed huge. The company also pays a 0.90% dividend. Not bad.
For the year beginning June 1, 2014 and ending on May 31, 2015, United entered into excess-of-loss reinsurance agreements with several private reinsurers and with the Florida State Board of Administration (SBA), which administers the Florida Hurricane Catastrophe Fund (FHCF). The private agreements provide coverage against severe weather events such as hurricanes, tropical storms and tornadoes. The agreement with the FHCF only provides coverage in Florida against storms that the National Hurricane Center designates as hurricanes. Ha Ha Ha…they are hedged! You have big hedge funds and pension funds also buying this reinsurance to juice up their returns. So, at the end of the day, this reinsurance can’t be too expensive if the Wall Street tycoons are throwing their money at it. Simply put, the flood of capital into the sector suppresses rates that insurance companies like UIHC need to pay for reinsurance.
For the 2014 hurricane season, UIHC purchased catastrophe excess of loss reinsurance protection of $1.1 billion excess $25 million providing sufficient protection for approximately a one-in-185 year hurricane event. For a single hurricane catastrophe, UIHC will pay, or "retain", the first 70% of losses up to $25 million ($17.5 million) and an affiliated reinsurer will pay the remaining 30% of losses up to $25 million ($7.5 million). The catastrophe excess of loss reinsurance program provides 100% coverage for all losses in excess of $25 million up to $1.1 billion. And all this for an 11% chance event.
The industry itself is seeing solid estimate revisions as of late, substantiating the story that a rising tide lifts all boats. Investors in UIHC are able to purchase a well-run insurer trading at a 25% premium to book value. The rapid growth in policies and the extended period of lower reinsurance rates will allow UIHC to compound book value at about 25% per year, as they rollout into other coastal states. Downside is protected by book value and future growth that should occur outside of Florida.
UIHC is different than other insurers though and is actively looking to expand into other states. So far UIHC has managed to stay out of the spotlight by focusing on sourcing policies in northern and western parts of Florida (diversifying coverage to less riskier parts of the state) and expanding into other states. Right now UIHC is writing policies in South Carolina, Rhode Island, Massachusetts and North Carolina. There are 17 states that they could enter into.
UIHC is aggressively pricing their product in a bid to take up market share and their policies are very easy to sell. Typically policies are priced at a 10-25% discount to other insurers. Despite these discounts, the company is still covering its risk well.
Right now the big insurance companies are de-risking so companies like UIHC who price aggressively will take market share. This isn’t the Costco of insurance companies. They are selling at a discount on premiums that are already ridiculously overpriced. If UIHC can keep hiring handsome agents with good inside sales tequniques, the success that they have already had in existing states should be duplicated in states that they enter. It should be obvious that UIHC will grow their book value by at least 15% per year.
The proof is in the pudding, or more specifically their recent earnings.
Net income for the quarter was $11.4 million, or $0.65 per diluted share, compared to $4.4 million, or $0.27 per diluted share in the first quarter in 2013. The increase in net income was primarily due to lower ceded reinsurance premium percentage for the quarter compared to the prior period and gross earned premium growth in all states in 2014.
The Company's direct gross written premiums increased by $17.0 million, or 22.9%, primarily due to the organic growth in new and renewal business generated in the states in which the Company currently writes.
UPC Insurance's cash and investment holdings totaled $395.0 million at March 31, 2014, compared to $323.8 million at December 31, 2013. UPC Insurance's cash and investment holdings consist primarily of investments in high-quality money market instruments, U.S. Government and agency securities and high-quality corporate debt.
Book value per share increased 25.5% from $6.64 at December 31, 2013, to $8.33 at March 31, 2014. The increase in the Company's book value per share was primarily driven by the $54.0 million of capital raised during the first quarter and due to the Company’s growth in net income.
The board of directors of United Insurance Holdings Corp. (UIHC) approved a 33.3% increase in its annual cash dividend. The property and casualty insurer will now pay a quarterly dividend of 4 cents per share, up from 3 cents per share distributed in the previous quarter. The dividend hike of United Insurance was primarily supported by its consolidated financial position and sturdy bottom-line growth, which resulted from a surge in the top line. Moreover, strong retained earnings also cushion the dividend payout. Retained earnings at the end of 2013 stood at $80.1 million, increasing 29.8% year over year.
Some other reasons why I love this stock:
· PEG ratio of 0.54 vs industry average of 1.79
· Price/Cash Flow TTM of 11.43 vs industry average of 13.51
· EPS Growth (TTM vs. Prior TTM) of 121.62% vs industry average of 101.02%
· Gross Margin (TTM) of 26.48% vs. industry average of 18.86%
· Return on Equity (TTM) of 22.86% vs. industry average of 11.61%
· Long Term Debt/Equity (TTM)of 12.16% vs industry average of 39.58%
Fuggedabouddit!
At the end of the day it’s all about the earnings. ANAL-ysts are projecting earnings of $1.67 on revenues of 274 million. That’s really quite comical considering that they already made $0.65/share in the first quarter alone.
$$$MR. MARKET$$$ projects no hurricanes and earnings of $2.89/share on revenues of $313 million. Keeping the PE of 10, that projects to a share price of $2.89 x 10 = $28.90/share which is well past my selling target.
Here’s what the boss has to say about his company:
“At the beginning of the year we had 117,000 policies in Florida at the end of the year we had a 163,000 policies in Florida. Okay, so that was 39% growth rate. Outside Florida at the beginning of the year we had 18,000 policies, at the end of the year we had 39,000 policies, so 117% growth rate. So that took us from roughly 85:15 Florida, non-Florida to about 80:20 at the end of the year even with that substantial growth rate outside of Florida our installed base in Florida is so much bigger than it just chips away at that ratio doesn’t dramatically transform it but we’re making progress towards our goal of being much more balanced inside Florida and outside of Florida.”
“This was record quarter for UPC Insurance," said John Forney, President and CEO of UPC Insurance. "We produced more net earned premiums and more net income than in any quarter since the Company became publicly traded in 2008. From a strategic perspective, we continued our expansion outside Florida, with over 57% of our total new policies for the quarter coming from other states. I'm proud of the results we produced this quarter but even more excited about our future opportunities."
“2013 was a year with a lot of milestones for UPC insurance. We passed the 200,000 policies in force mark in the fourth quarter of 2013. We passed the $100 million in shareholder equity mark in the third quarter of 2013, and we passed the $200 million in market capitalization threshold also in the fourth quarter of 2013. More importantly, we continue to add to the team of talented professionals at UPC, they were assembling to help us achieve our goal of becoming the premier provider of property insurance in catastrophe exposed areas.”
Keep rolling Hat Man! My next trip to Florida will be a Titan outing at the Hard Rock where I’ll be smoking Partegas cigars as long as my arm while I count all my quatloops from this investment!
I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
and I hope you do well with the stock's new backing!
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