Universal Insurance Holdings Stock Earnings Reports

Universal reported a strong quarter driven by improved underwriting and higher core revenue. Key financials: adjusted ROE of 30.6%; adjusted diluted EPS of $1.36 (versus a prior-year adjusted loss per share of $0.73); core revenue of $400 million (up 4.9% YoY); direct premiums written of $592.8 million (up 3.2% YoY) and net premiums earned of $359.7 million (up 4.0% YoY). The net combined ratio improved materially to 96.4% (down 20.5 points YoY) driven by a lower net loss ratio (70.2%, down 21.5 points) reflecting no hurricane activity this quarter versus the prior-year quarter. The net expense ratio increased modestly to 26.2% due to higher ceded premium and acquisition costs from growth outside Florida. Management highlighted a more conservative reserving posture and an early actuarial review that showed encouraging results, with prior-year catastrophe development of about $3.9 million booked this quarter. Capital actions: repurchased ~347,000 shares for $8.1 million (about $7.1 million of buyback authorization remains) and declared a quarterly cash dividend of $0.16 per share. Management emphasized disciplined pricing, selective growth (particularly outside Florida), confidence in balance sheet resilience, and continued willingness to repurchase shares when appropriate.