Key Highlights

  • Diluted EPS rose 30% to USD 1.80; adjusted EPS rose 42% to USD 1.93.
  • The net combined ratio improved to 91.0% from 96.4% a year earlier.
  • Direct premiums written rose 2.7% to USD 608.9 million, with other states up 18.5%.
  • Book value per share rose 32% to USD 23.37.

Quarter Results

Universal Insurance Holdings (NYSE:UVE) reported third-quarter 2026 results on Thursday from Fort Lauderdale. Total Revenue was USD 439.3 million, up 9.6%, and core revenue was USD 444.3 million, up 11.1%. Operating Income rose 32.8% to USD 72.2 million, a Margin of 16.4% against 13.6%.

Net income available to common stockholders was USD 52.5 million, or USD 1.80 per diluted share, against USD 39.8 million, or USD 1.38. Adjusted Net Income was USD 56.3 million, or USD 1.93 per share, against USD 39.1 million, or USD 1.36. Annualized return on average common Equity was 32.7%, and the adjusted figure was 32.3%. Over nine months, diluted Earnings were USD 5.73 per share against USD 4.03, net income was USD 166.0 million against USD 116.4 million, and operating income rose 42.5% to USD 227.1 million, a margin of 18.0% against 13.3%. Nine-month annualized return on common equity was 37.0% against 35.7%.

Premiums and Reinsurance

Direct premiums written rose 2.7% to USD 608.9 million, with growth of 18.5% in states outside Florida partly offset by a 3.3% decrease in Florida. Policies in force rose 7.9% to 953,611, and premiums in force rose 4.4% to USD 2.23 billion. Direct premiums earned rose 4.2% to USD 556.7 million, and nine-month direct premiums earned rose 4.0% to USD 1.63 billion.

The ceded premium ratio fell to 27.6% from 32.7%, which the company linked to its new Reinsurance program that began on June 1, 2026. Ceded premiums earned fell 12.0% to USD 153.5 million, and net premiums earned rose 12.1% to USD 403.2 million. CEO Stephen Donaghy said new Business trends are solid, including 8% growth in policies in force.

Loss and Expense Ratios

The net loss ratio was 64.6% against 70.2%, an improvement of 5.6 points, while the expense ratio was 26.4% against 26.2%. The net combined ratio was therefore 91.0% against 96.4%. Net Investment income was USD 21.5 million against USD 18.3 million, reflecting higher invested Assets and fixed income reinvestment.

Book value per share rose 32.4% to USD 23.37, and adjusted Book Value per share rose 38.2% to USD 25.90. Over nine months, direct premiums written rose 4.8% to USD 1.74 billion, the ceded premium ratio was 30.3% against 31.5%, net premiums earned rose 5.7% to USD 1.14 billion, and the net combined ratio was 90.8% against 96.4%.

Hurricane Isaias

After the quarter ended, Hurricane Isaias made landfall near Destin in the western Florida Panhandle as a Category 2 storm before weakening as it moved inland. The company said it deployed field adjusters to affected communities and is working to speed inspections and claim payments. Donaghy said claims activity to date has been less significant than initially anticipated.

Items to Watch

Operating income grew 32.8% on revenue growth of 9.6%, with the combined ratio gap of 5.4 points doing most of the work. Reinsurance costs fell with the new program, while premium growth is concentrated outside Florida. Reference points include claims from Hurricane Isaias, policy counts outside Florida, the ceded premium ratio under the new program, and the loss ratio against the 64.6% reported.