United Insurance Holdings Corp. (UIHC) Q1 2022 Earnings Conference Call May 9, 2022 5:00 PM ET

Company Participants

Daniel Peed – Chairman & Chief Executive Officer

Bradford Martz – President & Chief Financial Officer

Karin Daly – Vice President, Equity Group

Conference Call Participants

Gregory Peters – Raymond James

Bill Donohue – Teton Capital

Operator

Hello and welcome to the United Insurance Holdings Corp. First Quarter 2022 financial results conference call and webcast. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require Operator assistance during the conference, [Operator Instructions]. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Karin Daly, Vice President with the Equity Group. Please go ahead.

Karin Daly

Thank you, Kevin. And good morning -- good afternoon, everyone. UPC Insurance has also made this broadcast available on its website at www.upcinsurance.com. A replay will be available for approximately 30 days following the call. Additionally, you can find copies of UPC's earnings release and presentation in the Investors section of the company's website. Speaking today will be Chairman of the Board and Chief Executive Officer R. Daniel Peed, and President and Chief Financial Officer Bennett Bradford Martz. On behalf of the company, I'd like to note that statements made during this call that are not historical facts are forward-looking statements. The company believes these statements are based on reasonable estimates, assumptions, and plans.

However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate, or if other risks or uncertainties arise, actual results could differ materially from those expressed in or implied by the forward-looking statements. Factors that could cause actual results to differ materially may be found in our filings with the U.S. Securities and Exchange Commission in the Risk Factors section of our most recent annual report on Form 10-K or subsequent quarterly reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and except as required by applicable law, we undertake no obligation to update or revise any forward-looking statements. With that, it's my pleasure to turn the call over to Mr. Daniel Peed. Dan.

Daniel Peed

Thanks, Karin. Hello and thanks for joining us on our first quarter earnings call. I'm Dan Peed, Chairman and CEO of UPC Insurance. I'm planning to offer an overview of some of our activities and then Brad Martz will provide some more specific numbers. The first quarter had a core loss of $29.3 million, which reflects a reduced net earned premium combined with elevated catastrophe losses from 10 PCS events and higher loss severity on both attritional and CAT claims. Revenues for the first quarter reflect our aggressive de -risking and de -leveraging activities over the last 18 months. Gross earned premium on a year-over-year basis is down by approximately 10% due in part to the sale of our Northeast renewal rights.