United Insurance Holdings Corp. (NDA) (NASDAQ:UIHC) Releases Earnings, Raises Dividend

United Insurance Holdings Corp. (NDA) (NASDAQ:UIHC) released its year-end and fourth quarter earnings for 2014 and also raised its quarterly dividend. The company showed revenues for the fourth quarter period at $76.2 million. This just missed estimates of $78 million. EPS came in at 55 cents and that beat estimates by 19%. The company raised gross premiums and reduced costs to attain the positive beat. Investment income was strong also at $1.9 million which was a year-over-year change of 55%. The strong revenues were the result of consistent policy writing and a slight rise in premiums.

Does this analyst foresee a long-term upside in UIHC?

Full Year

For the full year United Insurance Holdings Corp. (NDA) (NASDAQ:UIHC) showed an EPS of $2.05 which was a 67% change to the upside when compared to the same period a year ago. Revenue for 2014 was $280 million but that just missed estimates also. The company closed 2014 with cash and investments totaling $443 million, an increase from 2013’s total of $326 million. Debt was also reduced to $13.5 million, lower than the $14.7 million total of a year ago. The year was a strong one as the company raised revenue and profits while also building a stronger cash and investment portfolio.

Dividend Increase

United Insurance Holdings Corp. (NDA) (NASDAQ:UIHC) also announced it was increasing its quarterly dividend to 5 cents per share this reporting period. The raise is the result of strong operating numbers and prudent investments. That is a 1 cent increase over the previous dividend payment. UIHC was started in 1999 and is an insurance holding company. They write policy for a variety of issues and use a network of independent agents. United Property & Casualty is the primary subsidiary of UIHC and it operates in the 15 states across the US.

Technicals

The stock recently pulled back to support at the $22.02 level and held there. Technical aspects are not too bad as the issue remains above its moving averages and momentum is neutral. It shouldn’t be difficult for the stock to make an attempt to reach its recent high.

About the Author

John is a special projects and general assignment reporter, noted for breaking several exclusive stories.

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