Logo of jester cap with thought bubble with words 'Fool Transcripts' below it

Image source: The Motley Fool.

United Insurance Holdings (NASDAQ:UIHC)
Q3 2018 Earnings Conference Call
Nov. 1, 2018 5:00 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Greetings, and welcome to the United Insurance Holdings Corp. third-quarter 2018 conference call. [Operator instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Adam Prior of the Equity Group.

Please go ahead, Adam.

Adam Prior -- Investor Relations, Equity Group

Thank you, Kevin, and good afternoon, everyone. Thank you for joining us. You can find copies of UPC's earnings release today at upcinsurance.com in the Investor Relations section. You're also welcome to contact our office at (212) 836-9606, and we'd be happy to send you a copy.

In addition, UPC Insurance has made this broadcast available on its website. Before we get started, I'd like to read the following statement on behalf of the company. Except with respect to historical information, statements made in this conference call constitute forward-looking statements within the meaning of the federal securities laws, including statements relating to trends in the company's operations and financial results in the business and the products of the company and its subsidiaries. Actual results from UPC may differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those described from time to time in UPC's filings with the U.S.

Securities and Exchange Commission. UPC specifically disclaims any obligation to update or revise any forward-looking statements whether as a result of new information, future developments or otherwise. With that, I'd now like to turn the call over to Mr. John Forney, UPC's chief executive officer.

Please go ahead, John.

John Forney -- Chief Executive Officer

Thanks, Adam. This is John Forney, president and CEO of UPC Insurance. With me today is Brad Martz, our chief financial officer. On behalf of everyone at UPC, we appreciate your taking time to join us on the call.

We probably should have had this call yesterday on Halloween since our quarter had both treats and tricks in it, but here we go. On the positive side, we continue to produce strong organic growth. Our earned premium was up over 13% year over year. Both personal and commercial lines have contributed to that growth.

On the personal lines side, the growth has been spread across our geographic footprint with the Northeast being particularly strong. At the end of Q3, over 60% of our personal lines policies were outside of Florida. On the commercial lines side, premium growth in the quarter was over 10% with no degradation in rate. That growth trend in commercial has been accelerating, which is testimony to the strength and perseverance of the AmRisc team that underwrites and distributes our American Coastal products.

Another positive. Our hurricane response, both operationally and financially, has been outstanding. Operationally, according to data provided to us by Verisk Analytics, our response time on Florence was 30% faster than the industry. And on Michael, it was over 50% faster than the industry.

It's no wonder that this time around, I have been seeing a stream of emails from our agents and policyholders praising the service they've received from Scott St. John and his world-class cat team, led by Tim Compton. Financially, our reinsurance program and our reinsurance partners have excelled. We buy more first event reinsurance limits than any other Florida-domiciled company, even those with far more exposure in the state than we have.

So program exhaustion is not something we worry about. We're one of the very few companies where Irma never got into a single-digit rate online reinsurance layer and since we don't buy reinstated limit, we never have to worry about surprise reinstatement premiums impacting our results. At the bottom of our program, which is where all the action has been over the past couple of years, we bought an ex-Florida retention buydown that helped limit our retained Florence losses. We appreciate the amazing support we've received from our reinsurance partners and we're committed to a long-term win-win partnership with them.

The final and most significant positive note for the quarter was our launch of Journey Insurance Company. We have been on a journey to create the premier specialized property cat insurer in the country and we're making good progress. From a $200 million Florida homeowners carrier six years ago, we have become a $1.2 billion geographically and product-diversified firm with business in 12 states. We are the 19th largest homeowners writers in the country and the No.

1 insurer of commercial habitational property in Florida. Best of all, we've achieved that growth while producing all-in cat and noncat loss ratios better than the industry average in almost all of our states. So far, we've been able to accomplish all that with just the Demotech rating. But we are already the largest Demotech carrier in the United States.

And we have long felt that we needed to have a complement of A.M. Best-rated products in our offering portfolio as we continue on our journey. The formation of Journey Insurance Company, which marks the fifth insurance company in the UPC family, achieves that goal. Journey is also significant because we formed it in partnership with Tokio Marine Kiln, a company for whom we have great respect and with whom we look forward to growing a long-term strategic partnership.

We will use Journey, which received an A- rating from A.M. Best to write both personal lines and commercial lines business. Initially, our focus will be on Florida, Texas and South Carolina, three states we know quite well and have a long track record in, but that will be just the beginning. We have already filed our first product and hope to begin writing business before the end of 2018.

At the same time, we will continue to grow our Demotech companies in their states and product areas. On the negative side of the ledger, we had unusually high noncat losses during the quarter, especially in August, and to a lesser degree, in July. While Q3 typically has higher noncat weather losses than other quarters, and that was true for our Q3, the real driver of our elevated noncat losses was the disproportionately high number of claims and large losses unrelated to weather. For example, we had 11 liability large losses in the quarter versus two in Q2 and nine in Q1.

Large loss incurred overall for the quarter was $10 million higher than last year's Q3, which had a more typical experience. We also received 19% more noncat claims in August than last year, more than double the average increase for other months this year. The good news is that these results do not appear to represent a trend. After August bad experience, September dropped back to normal levels.

And October was even better than that. It's important to note that none of the loss experience is related to adverse development as our noncat reserves were slightly redundant for the quarter. Still, we remain vigilant in our underwriting and rate actions to make sure we can stay ahead of loss cost in our portfolio. We implemented double-digit rate increases in three of our states this year, single-digit in a few others and we are continuously doing rate indications and filings as needed.

At this point I would like to turn it over to Brad for his remarks.

Brad Martz -- Chief Financial Officer

Thank you, John. And hello, this is Brad Martz, the CFO of UPC Insurance, and I'm pleased to review the financial highlights. But before we get to those, I would like to remind and encourage everyone to review our press release and Form 10-Q for more information regarding our results. Highlights of UPC's third quarter 2018 included gross premiums earned of roughly $304 million, an increase of over 13%; a GAAP net loss of $11.7 million or $0.27 a share; non-GAAP core loss of $14.9 million or $0.35 a share.

Both bottom line measures were driven by net retained cat losses of $34.6 million or $0.60 a share, which added over 20 points to the combined ratio. As John mentioned, it was certainly a difficult quarter from a loss perspective, so I'll discuss that in more detail along with our initial guidance for Hurricane Michael in a moment. Some additional insight into UPC's revenue for the quarter includes direct premiums written were a mix of 80% personal lines and 20% commercial lines. Commercial lines grew approximately 13% year over year, slightly faster than personal lines at just over 10%.

Roughly 53% of our growth in direct written premium came from Florida. And the Northeast region was our fastest-growing, up 16% year over year led by New York. Assumed commercial excess and surplus lines premiums grew nearly 80% to $17.2 million in the third quarter. Our investment income increased 41% year over year and other revenue decreased $10 million or 73% due to the change in our presentation of ceding commissions earned that we implemented and disclosed last quarter.

UPC's third-quarter losses decreased approximately 16% from $143.1 million last year to $120.6 million this year due to the full -- two full retentions incurred from Hurricanes Harvey and Irma in 2017. This produced a 39.7% gross loss ratio, down over 13 points from 53.4% last year. Net retained cat losses in the current quarter from Hurricane Florence totaled $25 million, and the remaining $9.6 million was due primarily to the increased retention under the company's aggregate reinsurance program, which was expected. UPC did see continued favorable reserve development on prior accident years and recognized roughly $2.7 million during the current calendar quarter.

Excluding the impact of net retained catastrophe losses and favorable reserve development, UPC's gross and net underlying loss ratios were up over six and 11 points, respectively, compared to a year ago. The increase in underlying noncat losses is a challenging comparison to the prior year for two primary reason reasons: first, UPC's noncat losses were abnormally low last year due to hurricanes Harvey and Irma impacting UPC's two largest states, Florida and Texas; second, we saw frequency and severity of large losses, both in personal lines and commercial lines above normal during the current quarter. Of the $27 million increase in underlying noncat losses, approximately $12 million or 44% came from personal lines, fire and liability-related losses in multiple states and the other $15 million or 56% was driven by commercial property losses in Florida. Hurricane Michael, our second hurricane event of the year, made landfall in Florida during October and is not included in our loss results for the third quarter.

UPC expects to retain between $25 million and $35 million of losses in the fourth quarter of 2018 related to Michael. We are providing a range because our net retention for Michael will depend on the gross loss for Hurricane Florence which is currently estimated at $70 million. If our ultimate gross loss from Florence is less than $70 million, UPC's Michael retained loss could be toward the higher end of the range since our retention for the second event is dependent on how much reinsurance is eroded from the first event. UPC's nonloss operating expenses increased $7.8 million or approximately 11% year over year during the current quarter, driven by a $7.7 million or 16% increase in policy acquisition costs, which were consistent with premium growth.

All other operating expenses combined were flat year over year and resulted in slight improvements in our gross and net expense ratios. On an underlying basis, operating cost increased $17.9 million year over year, excluding ceding commissions in the same period a year ago. The underlying expense ratios are not a perfect comparison between the current and prior period given the current year bifurcation of ceding commissions between policy acquisition cost and ceded earned premiums. UPC's policy acquisition cost as a percentage of gross and net earned premiums did rise year over year due to premium growth and commercial lines and personal lines outside of Florida, where our acquisition expenses are generally higher than the business overall.

On the balance sheet, UPC ended the quarter with total assets of over $2.3 billion, including nearly $1.2 billion of cash and invested assets. Unrestricted liquidity at the holding company decreased to approximately $72 million at the end of the current quarter, primarily as a result of the $40 million contribution made to form Journey Insurance Company. Noncontrolling interest is a new item for the company and represents Tokio Marine Kiln's equity investment in Journey. Shareholders' equity attributable to UIHC shareholders decreased just under $529 million with a book value per share of $12.33.

Our combined statutory surplus for the group increased to $484 million at the end of the third quarter, including Journey's statutory capital and surplus. I'd now like to reintroduce John for some closing remarks.

John Forney -- Chief Executive Officer

Thank you, Brad. One day after the end of the quarter, we welcomed Chris Griffith as our new chief information officer. Chris joined us from Safety National, and he has had a lot of relevant insurance industry experience. Chris brings great technical and leadership skills to UPC, and we look forward to his contributions as we continue to drive efforts to use technology as a competitive advantage for our company.

With that, we will conclude our prepared remarks, and we are happy to answer any questions that anyone has. 

Questions and Answers:

Operator

Thank you. [Operator instructions] Our first question today is coming from Greg Peters from Raymond James. Your line is now live.

Greg Peters -- Raymond James -- Analyst

Good afternoon. Thank you for the call. I guess, just starting off, you talked about your new entity, rated entity, Journey, and your relationship with Tokio Kilm, and I'm curious if that is affected at all by the RenRe acquisition of the reinsurance platform.

John Forney -- Chief Executive Officer

Thank you, Greg. This is John, and that's actually a very good and timely question. The answer is no. It's not impacted at all by their sale of Tokio Millennium Re to RenRe.

This is a completely separate entity that we're dealing with and that transaction has no impact whatsoever on our relationship with Tokio Marine on Journey.

Greg Peters -- Raymond James -- Analyst

Perfect. And then just I know, Brad, you talked about your guess around what the retention might be. For Michael, I know it's early days, do you have an idea on the gross loss? And then piggybacking on that, can you talk a little bit about your expectations for reinsurance pricing especially in these lower layers? It looked like they are going to get hit for the second year in a row.

Brad Martz -- Chief Financial Officer

Actually, the third year in a row. We've had five major events.

John Forney -- Chief Executive Officer

Who's counting?

Brad Martz -- Chief Financial Officer

In 25 months, it's not impressive. Grass losses over $1 billion. Net retained, almost $170 million in 25 months. Pretty remarkable run.

The modeled expected loss for Michael varies anywhere from $50 million to $120 million. We'll probably record the initial gross loss toward probably above the top of that range given some of the development we saw in the previous events in Florida just to be conservative.

Greg Peters -- Raymond James -- Analyst

And then just on the outlook, I lost count obviously of the cat losses you guys have reported. But some perspective on what your reinsurance partners are talking about in terms of price for next year. And I know it's early still, but I'm sure there's noise in the marketplace on this already.

John Forney -- Chief Executive Officer

I'll take a stab at that. Greg, it's John. Of course, there's noise in the marketplace. But noise isn't the same thing as information, and so it's hard to decipher all of that.

I'll just say we truly have partnerships with our reinsurers. We buy over $3 billion of property cat, which we've seen statistics that say that makes us one of the 10 largest buyers of U.S. property cat reinsurance in the world. And the other nine on that list are AIG and Allstate and State Farm and Liberty Mutual and all the big guys, and then there's us.

So we're very important partner to the reinsurance community and they to us obviously. So we don't -- we're not transactional. We're strategic with them. And if you look at our reinsurance panel over the last 5 years, the average return, even with the three years of cat losses that our reinsurers have earned, is between 6% and 9%, a positive depending on the reinsurer.

And so they've earned decent returns and almost all of that is collateralized so those are the kind of returns they're looking for even including all the cat losses. So we have a win-win relationship with our reinsurers. We never try to be the lowest price program out there because we know we want to be in it for the long term. So we're not -- we're going to do what makes sense for us and for them, but we're both looking at it as a long-term relationship and not, let's see if we can either on our side to try to see if we can get a few points off on the upper layers because the upper layers haven't been hit, by the way, on our program in any of those three years.

Or and I know they're not thinking what we're trying to get UPC for everything we get in the lower layer which has been hit, as Brad said, three years in a row. We'll do something fair. It's really impossible to say what that might be right now, but I'm confident we'll end up with a deal that makes sense for us and for them.

Greg Peters -- Raymond James -- Analyst

Thank you for those answers. And just the one final question on the underlying loss in LAE ratio, which is as you have pointed out is ticking up. As you're probably aware, other homeowners insurance companies have talked about some erosion in the underlying profitability of their business. And I'm curious, one, if you feel like you're getting selected against in your -- with the risk that you're taking on.

And two, are you doing anything on the right front? And that's my last surge of questions.

John Forney -- Chief Executive Officer

OK. Well, I would tell you we look very closely at our results state by state. And as I mentioned on the call, our loss ratios, direct loss ratios, including cat and noncat are below industry averages in -- of the nine states that comprise 95% of our business. For the last three years, each year, below industry averages usually significantly in seven of the nine states.

The only two states where there is slightly above industry averages are Rhode Island, which is a very small state for us, and ironically, Florida. And then the reason they're higher in Florida then the industry average is because we have the ability to retain more cat losses than many of the smaller companies in Florida, and so we do, and that's what causes our direct loss ratios in those three years to be slightly higher. Everywhere else, we're below what's happening in that state for other companies. And so we don't see any evidence of being adversely selected against.

As I mentioned in my remarks at the beginning, we have taken a lot of rate action. And I saw comments on another call recently from someone, I think it might have been the Chubb folks that said rate isn't necessarily the answer to everything. We couldn't agree with that more. We're taking rate where we need it.

But we're also using technology to help improve our underwriting. We're rolling out a new proprietary predictive analytics tool that we've been working on for one and a half years this quarter that we've been back-testing against 10 years of data that we think it's going to be quite powerful in helping us improve our underwriting results everywhere, even in states where we already have great results. And we're taking rate as needed and doing other things on a technology standpoint to make sure that we're staying on top of trends. The last thing I'll say on that is if you look at the results and we spend a lot of time looking at the results here in the last month to make the results for August were just such an outlier from any other month we've ever seen.

And certainly, if that continued into September and October, we would be concert and we would tell you there's a trend that doesn't look good. It did not happen at all if you look at the charts that we looked at, it dropped right back down to what we would expect and October was quite a good month from a [Inaudible] perspective, September was also very good. So we don't see anything like what happened in August repeating itself since then.

Greg Peters -- Raymond James -- Analyst

Thank you for your answers.

Operator

Thank you. Our next question is coming from Elyse Greenspan from Wells Fargo. Your line is now live.

Elyse Greenspan -- Wells Fargo Securities LLC -- Analyst

Hi, thanks. My first question, I guess, picking up from where we kind of left off in terms of the underlying loss ratio. So can you guys, so I guess, the point is August was that much worse because the underlying loss ratio is above where you've been in many, many years. And so can you give us a sense as to how does October look when you say that we've been kind of reverted more back to normal? Just give us a sense, would you expect all things considered that the Q4 would go back down kind of in line with the first and the second quarter?

Brad Martz -- Chief Financial Officer

Hi, Elyse, this is Brad. Yes, that's absolutely right. Everyone needs to recognize the seasonality in our business. And third quarter is always our toughest from a loss perspective.

Q4 is generally one of our better quarters, so I absolutely would expect a gross underlying loss ratio comparable to what we saw in the first and second quarter.

John Forney -- Chief Executive Officer

And I agree with that, Elyse. And it really wasn't just seasonality. As I mentioned, seasonality is one thing. But the 11 liability -- large liability losses, when we typically have zero or one in a quarter drove several million dollars of cost that we just haven't seen before, and it's not being repeated.

So there were some very strange sort of fluky things in one month, which is why you can't get overly excited or concerned about one month or one quarter. You got to look at the longer-term trends, and there's -- I'm confident that our book is better than it's ever been and our underwriting spend than it's been, and claims is better than it's been, and there's no reason to think that we're not going to go back to where we were if not better.

Elyse Greenspan -- Wells Fargo Securities LLC -- Analyst

So those 11 claims that you referenced, those all went August and they were all spread across different states? Or were they confined more to Florida?

John Forney -- Chief Executive Officer

See all 11 weren't in August. I think there was seven in August but they were spread out all over. We looked at all the crazy numbers from August and some in July to try to see if there was a common theme, and there really wasn't.

Brad Martz -- Chief Financial Officer

Yes. I would just add that we saw the highest frequency of large losses. we characterize the large losses anything over $100,000 in our history as well. So it goes to John's point, which is highly unusual, clearly not something we expect to persist and that drove a severity change if you compare our severity this quarter to the same period a year ago.

It was up 17%, completely abnormal.

Elyse Greenspan -- Wells Fargo Securities LLC -- Analyst

And so when we're thinking about what falls within and outside of your cat definition, is your cat definition tied to losses that you have from PCS events?

Brad Martz -- Chief Financial Officer

Generally, yes. But sometimes, there are non-PCS events that do trigger our threshold being greater than $1 million.

Elyse Greenspan -- Wells Fargo Securities LLC -- Analyst

OK. So the $1 million...

John Forney -- Chief Executive Officer

$1 million and multiple losses. Like one house worth $1 million or $1.5 million that burned down would not be categorized as a cat. It has to be multiple losses and more than $1 million, and almost all of them are PCS events in our catalog.

Elyse Greenspan -- Wells Fargo Securities LLC -- Analyst

OK, great. And then your G&A expenses were a bit higher than where, I guess, I had been modeling. And I think, Brad, you had pointed to kind of the expense most for the most part kind of being in line with expected but G&A did pick up sequentially. Anything there? Or is it just maybe the Q2 was just rolled for some reason?

Brad Martz -- Chief Financial Officer

In Q3, so for example, we received assessments from quasi-governmental organizations like the North Carolina JUA, FAIR Plan, that was $1 million in the quarter. We started a new contingent commission arrangements with some of our top producers. So we put out a very conservative initial accrual for that. We've had other agent incentives continued to hit growth investments in technology.

But nothing out of the ordinary. No, I mean, the only -- there's probably a couple of million dollars in nonrecurring in there from the assessments and the contingency. But overall, the run rate and the guidance on a gross expense ratio between 25 and 27 is really the range.

Elyse Greenspan -- Wells Fargo Securities LLC -- Analyst

OK, great. And then last question, I'm sorry, just going back to the underlying margin. Since it sounds like it's all kind of noncat weather in the quarter, there was no any kind of true-up for where you were setting your picks from earlier in the year in the third quarter. Correct?

Brad Martz -- Chief Financial Officer

Correct.

Elyse Greenspan -- Wells Fargo Securities LLC -- Analyst

Thank you very much. I appreciate the color.

John Forney -- Chief Executive Officer

Thank you, Elyse.

Operator

Thank you. [Operator instructions] Our next question today is coming from Christopher Campbell from KBW. Your line is now live.

Christopher Campbell -- Keefe, Bruyette & Woods -- Analyst

Yes. Hi, good evening, gentlemen.

John Forney -- Chief Executive Officer

Good evening, Chris.

Christopher Campbell -- Keefe, Bruyette & Woods -- Analyst

I guess, I'll pile on in the core loss ratio again. I think John mentioned about $10 million of abnormally large losses. And if we back out that number from the one or from this quarter's number, we still have like a 46% core loss ratio, which is still up about 600 bps year over year. So I guess, what's driving that 600 bps of, I guess, I'd call it more attritional deterioration?

John Forney -- Chief Executive Officer

As we said earlier, it was -- most of it is driven by the abnormally high level of large losses. But and I pointed out in August, we received 20% more noncat claims than we did a year ago. The average at every other month this year has been about 8% more claims. So there was some noncat weather and there was just -- we just had a one and a half month where we had a lot of claims reported in it.

As I said, that dropped right back down in September and into October. There's nothing we can point to say this is exactly the cause. We have a lot of claims for a lot of different reasons. But it seemed to be limited in its duration, and it's not happened in the last couple of months.

Christopher Campbell -- Keefe, Bruyette & Woods -- Analyst

OK, got it. And then can we get an update on your Irma gross loss numbers?

John Forney -- Chief Executive Officer

We don't have a change in our Irma gross loss number from where we were.

Christopher Campbell -- Keefe, Bruyette & Woods -- Analyst

OK, got it.

John Forney -- Chief Executive Officer

At this point. We're continuing to see modest amounts of new claims, nothing like we've seen other people report and some limited reopens. But we're starting to see some of that die off and we've been doing a very good job with -- on those claims. But we're not revisiting the number that we have out there right now.

We'll just have to see how things go in November and December.

Christopher Campbell -- Keefe, Bruyette & Woods -- Analyst

OK, that makes sense. And just kind of just a question on the. Like how much limit is remaining? And I know you guys have a collateralized piece of that. So would all the collateralized reinsurance that you would have had in place when Irma hit, would all that still be available? And just has any of that collateral been released?

Brad Martz -- Chief Financial Officer

For the 2018, 2019 program, no. I mean, we basically got almost all of our limit left for the current catastrophe excess of loss programs. Florence hit our underlying layer and our non-Florida excess of loss layer, the $35 million ex $35 million, so that's gone. But it doesn't matter because as that gets overloaded, the program cascades down to its retention of $35 million.

And depending on what the gross Michael loss is, even if it's $200 million, it's really -- it puts just a tiny dent in a $3.1 billion tower.

Christopher Campbell -- Keefe, Bruyette & Woods -- Analyst

Got it. And what about the 2017 program, the one for Irma? Would any of that collateral have been released?

Brad Martz -- Chief Financial Officer

We have released some collateral on the very upper layers, where we're highly confident that there would be no potential for recession. Yes, there has been collateral release, but the gross loss and the reinsurance recoverables we have are fully collateralized today and we have no concerns about credit risk or collateral.

Christopher Campbell -- Keefe, Bruyette & Woods -- Analyst

OK. And like how high would the gross loss have to be like in the tower for that to even be an issue for you guys? If you had to take adverse development before you got to the top?

John Forney -- Chief Executive Officer

It would have to more than double from where it is right now, OK? And number one, that still would not be an issue for us because we have provisions that enable us to fall back collateral. We've actually done that, it works quite easily within a matter of three or four days with our partners. And so it's just not -- it's not a concern and it's not an issue for us.

Christopher Campbell -- Keefe, Bruyette & Woods -- Analyst

OK. So if it creeped up, if it creeped up more than double, you would have a -- your partners would use be able to get collateral back to fill back in that tower?

John Forney -- Chief Executive Officer

Yes.

Christopher Campbell -- Keefe, Bruyette & Woods -- Analyst

OK, got it. And then just one final one. On the favorable development year over year, what was kind of driving that? I noticed that was a little bit higher.

Brad Martz -- Chief Financial Officer

Conservative reserving philosophy. That's what's driving it. We want to aim to be slightly redundant. We don't always achieve that goal.

But we see favorable trends in frequency. Frequency is relatively flat. I mean does it bounce around? Of course. But frequency has not been our challenge.

It's all been on the severity side. And the runoff of the prior accident years is the actual development is better than the expected.

Christopher Campbell -- Keefe, Bruyette & Woods -- Analyst

Got it. All right. Well, thank you for all the answers.

John Forney -- Chief Executive Officer

Thank you, Chris.

Operator

Thank you. We've reached the end of our question-and-answer session. I'd like to turn the floor back over to management for any further or closing comments.

John Forney -- Chief Executive Officer

As always, we appreciate everyone's interest in UPC and your taking time to join us on the call. We look forward to being with you again in a few months to talk about the results of Q4. So thanks, everybody.

Operator

[Operator signoff]

Duration: 36 minutes

Call Participants:

Adam Prior -- Investor Relations, Equity Group

John Forney -- Chief Executive Officer

Brad Martz -- Chief Financial Officer

Greg Peters -- Raymond James -- Analyst

Elyse Greenspan -- Wells Fargo Securities LLC -- Analyst

Christopher Campbell -- Keefe, Bruyette & Woods -- Analyst

More UIHC analysis

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

10 stocks we like better than United Insurance Holdings
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and United Insurance Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of August 6, 2018

Motley Fool Transcribing has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.