Insurance co slashes CEO pay by $8.7 million, raises President’s compensation

Listed firm reported that it made an underwriting profit in Q4 of the last year despite adverse conditions

Insurance co slashes CEO pay by $8.7 million, raises President’s compensation

Insurance News

By Allie Sanchez

The head honcho of Universal Insurance Holdings took a 53% pay cut proportional to a drop in net income in the last quarter of 2016.

However, the company beat analyst expectations as it reported an underwriting profit in the final three months of last year.

Quoting a filing by the company with the Securities and Exchange Commission (SEC), Reuters reported that chairman and chief executive Sean P. Downes took a hit on his pay check, which was cut to $16.3 million in 2016 from $25 million in 2015.

However, president and chief risk officer John W. Springer’s efforts for the year were rewarded by an increase in his compensation in 2016, which rose to $8.7 million from $7.9 million in 2015.

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The Sun Sentinel also said that the firm “exceeded analysts’ expectations” by posting an underwriting profit in quarter four of the past year.

Net income may have dived by 53% to $15.5 million in the pertinent period, but other indicators reflected the company’s overall health, the report said.

Revenues rose by $16.5 million to nearly $180 million in the same period, and net premiums grew by 8.9%, or $13.4 million, to $164 million.

The upbeat results will likely place the company as one of a handful of publicly traded Florida carriers to report a profit in the said period, the report also noted.

Furthermore, Arash Soleimani analyst at financial services firm Keefe, Bruyette & Woods observed in the same report that the company’s showing is “impressive given the combination of Hurricane Matthew losses and industry-wide pressure from assignment of benefits and litigation.”

Related stories:
Insurers’ shares plunge as Matthew approaches
First Florida hurricane in 12 years lets carriers off lightly

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