Universal Insurance Holdings, Inc. (NYSE:UVE) Q3 2023 Earnings Call Transcript

Paul Newsome : I think that’s very fair. I guess the actual question is, why have a higher peg if you’re pushing for I think like 20%-ish price increases? That would imply that the underlying cost inflation is even higher than that 20%. Is that just to overly simplify way look at it? Or putting aside the impact of total?

Steve Donaghy : Well, I think, again the rate reductions are always run 12 months in arrears, right? So this year we had a rate indication, which was almost double the rate that we took which reflected our optimism from the legislative changes going into the future. So we put that aside. And then I think we build conservatism into our reserves to ensure that we have plenty of funds moving forward to adjudicate our business and keep the company in the most healthy position in the future.

Paul Newsome : Appreciate the help as always guys. Thank you.

Steve Donaghy : Yes. Thanks, Paul.

Operator: Thank you. And I don’t see any further questions in the queue. I will turn the call back to Steve Donaghy for final comments.

Steve Donaghy : Thank you, Carmen. Appreciate it. I’d like to thank all of our associates, consumers, our agency force and our stakeholders for their continued support of Universal. Have a great weekend.

Operator: And with that, we thank you for your participation.