Does your significant research suggest criminal backgrounds of UIHC executives and severe undercapitalization of risk? Oh yeah, thanks for your first post to this board - you appear to be astute.
I read the transcript this weekend. The highlights of UIC’s great third quarter include gross premium written of $156 million, representing 48% growth year-over-year; gross premiums earned of $129 million, 28% growth year-over-year; net income of $8.1 million, or $0.38 a share; and underlying combined ratio of 88.3%; and our book value per share increased to $10.55 per share, up 15% from the same period a year ago.
The $500 million premium in force threshold that we hit this month was significant for our company. There are speaking of building a $1 billion business, facing coastal states from Texas to Maine. They're now half way.
Note that there was also 3 cents/share of non-recurring legal expense. They spoke of a South Carolina rain matter - not sure how much that will cost, but it didn't appear to be troubling. Systems expense reduction will start in the 2nd half of 2016, with the new system up and running in 2017 (which will save 2 points of expense).
I think that the Company is doing well and we need to continue to hold shares and continue to buy on dips.
Sentiment: Strong Buy
3. Company has missed estimates in the past two quarters by a growing amount. That does not bode well for the coming earnings announcement next week. I see a similar selloff coming after announcement as last two quarters.
What do you mean by "free shares"? Those are option exercises where contrary to most executives, these UIHC executives KEEP their shares, rather than immediately dumping the shares. This is real management support.
Insider buying is not a show - it shows management support when it is outside money (versus option exercises and immediate selling) We will see on earnings.
As someone mentioned, insider buying has been substantial, including in the current quarter. I'd think that this should be telling as to the direction of the company. We'll soon see how earnings are - but also very important is the forecast for the year and next year. I'm expecting earnings of at least 30 cents for the quarter, so quite an improvement due to no (surprise) catastrophes. Cat suggests that earnings come around October 28th, so still a few weeks away.
Cat - Oh really companies do acquisitions for financial engineering purposes? you smoking some crack? You must be dumber than dirt.
I think that 40 cents or higher is out of the question for the quarter. UIHC pointed to a higher expense load for the balance of this year as the company moves existing business to its own internal systems. Until that happens UIHC will bear higher outsourcing costs, which are pulling up the expense ratio. Good for the longer run, but immediate costs during the next couple of quarters. So I'm looking for around 30 to 40 cents.