Universal Insurance Holdings IncNYSE: UVE

Universal Reports Third Quarter 2026 Results

· Issued by Universal Insurance Holdings Inc via Business Wire

On 6ix: 6ix.com/news/universal-reports-third-quarter-2026-results

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FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Universal Insurance Holdings (NYSE: UVE) (“Universal” or the “Company”) reported third quarter 2026 results.

*Reconciliations of non-GAAP to GAAP financial measures are provided in the attached tables.

“In the quarter, we delivered a very strong 32.7% annualized return on common equity, driven by solid underwriting and revenue performance,” said Stephen J. Donaghy, Chief Executive Officer. “Our net loss ratio continues to improve and new business trends are solid, including 8% growth in policies in force.”

"Subsequent to quarter end, Hurricane Isaias made landfall near Destin in the western Florida Panhandle as a Category 2 hurricane before quickly weakening as it moved inland. Our claims team responded immediately, deploying field adjusters to affected communities and working directly with policyholders to expedite inspections and claims payments. Our priority remains helping our customers recover and return to normal as quickly as possible. While we recognize the challenges this storm has created for those impacted, claims activity to date has been less significant than initially anticipated."

Summary Financial Results

($ in thousands, except per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

Change

2026

2025

Change

GAAP comparison

Total revenues

$

439,319

$

400,981

9.6

%

$

1,259,917

$

1,195,989

5.3

%

Operating income

$

72,229

$

54,380

32.8

%

$

227,126

$

159,442

42.5

%

Operating income margin

16.4

%

13.6

%

2.8 pts

18.0

%

13.3

%

4.7 pts

Net income available to common stockholders

$

52,506

$

39,827

31.8

%

$

165,980

$

116,354

42.7

%

Diluted earnings per common share

$

1.80

$

1.38

30.4

%

$

5.73

$

4.03

42.2

%

Annualized ROCE

32.7

%

33.4

%

(0.7) pts

37.0

%

35.7

%

1.3 pts

Book value per share, end of period

$

23.37

$

17.65

32.4

%

$

23.37

$

17.65

32.4

%

Non-GAAP comparison1

Core revenue

$

444,310

$

400,030

11.1

%

$

1,261,848

$

1,195,823

5.5

%

Adjusted operating income

$

77,220

$

53,429

44.5

%

$

229,057

$

159,276

43.8

%

Adjusted operating income margin

17.4

%

13.4

%

4.0 pts

18.2

%

13.3

%

4.9 pts

Adjusted net income available to common stockholders

$

56,269

$

39,110

43.9

%

$

167,436

$

116,229

44.1

%

Adjusted diluted earnings per common share

$

1.93

$

1.36

41.9

%

$

5.78

$

4.02

43.8

%

Annualized adjusted ROCE

32.3

%

30.6

%

1.7 pts

34.5

%

32.2

%

2.3 pts

Adjusted book value per share, end of period

$

25.90

$

18.74

38.2

%

$

25.90

$

18.74

38.2

%

Underwriting Summary

Premiums:

Premiums in force

$

2,228,923

$

2,135,237

4.4

%

$

2,228,923

$

2,135,237

4.4

%

Policies in force

953,611

883,888

7.9

%

953,611

883,888

7.9

%

Direct premiums written

$

608,878

$

592,774

2.7

%

$

1,736,739

$

1,656,572

4.8

%

Direct premiums earned

$

556,724

$

534,106

4.2

%

$

1,632,951

$

1,570,788

4.0

%

Ceded premiums earned

$

(153,528

)

$

(174,430

)

(12.0

)%

$

(495,580

)

$

(495,198

)

0.1

%

Ceded premium ratio

27.6

%

32.7

%

(5.1) pts

30.3

%

31.5

%

(1.2) pts

Net premiums earned

$

403,196

$

359,676

12.1

%

$

1,137,371

$

1,075,590

5.7

%

Net ratios:

Loss ratio

64.6

%

70.2

%

(5.6) pts

64.5

%

71.0

%

(6.5) pts

Expense ratio

26.4

%

26.2

%

0.2 pts

26.3

%

25.4

%

0.9 pts

Combined ratio

91.0

%

96.4

%

(5.4) pts

90.8

%

96.4

%

(5.6) pts

1 Reconciliation of non-GAAP to GAAP financial measures are provided in the attached tables. Adjusted net income (loss) available to common stockholders, adjusted diluted earnings (loss) per common share and core revenue exclude net realized gains (losses) on investments and net change in unrealized gains (losses) on investments. Adjusted operating income (loss) excludes the items above and interest and amortization of debt issuance costs. Adjusted book value per share excludes accumulated other comprehensive income (loss), net of taxes. Adjusted ROCE is calculated by dividing annualized adjusted net income (loss) available to common stockholders by average adjusted common stockholders’ equity, with the denominator further excluding current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments.

Net Income and Adjusted Net Income

Net income available to common stockholders was $52.5 million, compared to net income of $39.8 million in the prior year quarter, and adjusted net income available to common stockholders was $56.3 million, compared to adjusted net income of $39.1 million in the prior year quarter. The higher adjusted net income available to common stockholders mostly stems from higher underwriting and net investment income.

Revenues

Revenue was $439.3 million, up 9.6% from the prior year quarter and core revenue was $444.3 million, up 11.1% from the prior year quarter. The increase in core revenue primarily stems from higher net premiums earned and net investment income.

Direct premiums written were $608.9 million, up 2.7% from the prior year quarter. The increase stems from 18.5% growth in other states, partly offset by a 3.3% decrease in Florida. Overall growth mostly reflects higher policies in force across our multi-state footprint.

Direct premiums earned were $556.7 million, up 4.2% from the prior year quarter. The increase stems from direct premiums written growth over the past twelve months.

The ceded premium ratio was 27.6%, down from 32.7%, in the prior year quarter. The decrease primarily reflects Universal’s new reinsurance program, which incepted on June 1, 2026.

Net premiums earned were $403.2 million, up 12.1% from the prior year quarter. The increase is primarily attributable to higher direct premiums earned and a lower ceded premium ratio, as described above.

Net investment income was $21.5 million, up from $18.3 million in the prior year quarter. The increase stems from higher invested assets and fixed income reinvestment yields.

Commissions, policy fees and other revenue were $19.6 million, down 10.8% from the prior year quarter. The decrease primarily reflects Universal’s new reinsurance program.

Margins

The operating income margin was 16.4%, compared to an operating income margin of 13.6% in the prior year quarter. The adjusted operating income margin was 17.4%, compared to an adjusted operating income margin of 13.4% in the prior year quarter. The higher adjusted operating income margin primarily stems from a lower net combined ratio.

The net loss ratio was 64.6%, down 5.6 points compared to the prior year quarter. The decrease primarily reflects a lower ceded premium ratio.

The net expense ratio was 26.4%, up 0.2 points from 26.2% in the prior year quarter. The increase was driven by higher policy acquisition costs associated with growth outside Florida and higher other operating costs and expenses, partly offset by a lower ceded premium ratio.

The net combined ratio was 91.0%, down 5.4 points compared to the prior year quarter. The decrease reflects a lower net loss ratio, partly offset by a higher net expense ratio, as described above.

Capital Deployment

During the third quarter, the Company repurchased approximately 174 thousand shares at an aggregate cost of $7.4 million. The Company’s current share repurchase authorization program has approximately $1.1 million remaining.

On July 8, 2026, the Board of Directors declared a quarterly cash dividend of 16 cents per share of common stock, payable on August 7, 2026, to shareholders of record as of the close of business on July 31, 2026.

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About Universal

Universal Insurance Holdings, Inc. (NYSE: UVE) is a holding company providing property and casualty insurance and value-added insurance services. We develop, market, and write insurance products in the personal residential homeowners lines of business and perform substantially all other insurance-related services for our primary insurance entities, including risk management, claims management and distribution. We provide insurance products in the United States through both our appointed independent agents and our direct online distribution channels. Learn more at universalinsuranceholdings.com or get an insurance quote at Clovered.com.

Non-GAAP Financial Measures and Key Performance Indicators

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the U.S. Securities and Exchange Commission (“SEC”), including core revenue, adjusted net income (loss) available to common stockholders and diluted adjusted earnings (loss) per common share, which exclude the impact of net realized gains (losses) on investments and net change in unrealized gains (losses) on investments. Adjusted operating income (loss) and adjusted operating income (loss) margin exclude the impact of net realized gains (losses) on investments and net change in unrealized gains (losses) on investments and interest and amortization of debt issuance costs. Adjusted common stockholders’ equity and adjusted book value per share exclude accumulated other comprehensive income (loss) (AOCI), net of taxes. Adjusted return on common equity excludes after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments from the numerator and AOCI, net of taxes, and current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments from the denominator. A “non-GAAP financial measure” is generally defined as a numerical measure of a company’s historical or future performance that excludes or includes amounts, or is subject to adjustments, so as to be different from the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (“GAAP”). UVE management believes that these non-GAAP financial measures are meaningful, as they allow investors to evaluate underlying revenue and profitability trends and enhance comparability across periods. When considered together with the GAAP financial measures, management believes these metrics provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. UVE management also believes that these non-GAAP financial measures enhance the ability of investors to analyze UVE’s business trends and to understand UVE’s operational performance. UVE’s management utilizes these non-GAAP financial measures as guides in long-term planning. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures presented in accordance with GAAP. For more information regarding our key performance indicators, please refer to the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Key Performance Indicators” in our forthcoming Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “will,” “plan,” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include commentary on plans, products and lines of business, marketing arrangements, reinsurance programs, other business developments, projections, and estimates, and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Important factors that could cause our actual results or performance to differ materially from those contained in or implied by our forward-looking statements include, but are not limited to, the following:

  • we may face significant losses, and our financial results may vary from period to period, due to exposure to catastrophic events and severe weather conditions, the frequency and severity of which could be affected by climate change;
  • if we fail to adequately price the risks we underwrite and/or the estimates we make, or if emerging trends outpace our ability to adjust prices timely, or if we lose desirable exposures to competitors by overpricing our risks, we may experience underwriting losses depleting surplus at our risk-bearing insurance subsidiaries and capital at the holding company;
  • unanticipated increases in the severity or frequency of claims adversely affect our profitability and financial condition;
  • the failure of the risk mitigation strategies we utilize could have a material adverse effect on our financial condition or results of operations; and
  • the risks and uncertainties, as they may be amended from time to time, set forth in our filings with the U.S. Securities and Exchange Commission, including under the heading “Risk Factors” and “Liquidity and Capital Resources” in our most recent Annual Report on Form 10-K, and supplemented in our subsequent Quarterly Reports on Form 10-Q.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information regarding risk factors that could affect the Company’s operations and future results, refer to the Company’s reports filed with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K and the most recent quarterly reports on Form 10-Q.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

September 30,

December 31,

2026

2025

(unaudited)

ASSETS:

Invested Assets

Fixed maturities, at fair value, net

$

1,474,856

$

1,431,028

Equity securities, at fair value

117,710

85,420

Other investments, at fair value

8,099

10,693

Investment real estate, net

5,316

5,463

Total invested assets

1,605,981

1,532,604

Cash and cash equivalents

569,461

408,868

Restricted cash and cash equivalents

68,635

68,970

Prepaid reinsurance premiums

409,251

291,031

Reinsurance recoverables

157,038

232,918

Premiums receivable, net

98,155

75,721

Property and equipment, net

47,876

49,349

Deferred policy acquisition costs

144,706

128,564

Income taxes recoverable

15,009

—

Deferred income tax asset, net

35,340

27,658

Goodwill

2,319

2,319

Other assets

29,799

21,693

TOTAL ASSETS

$

3,183,570

$

2,839,695

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES:

Unpaid losses and loss adjustment expenses

$

616,079

$

680,712

Unearned premiums

1,195,747

1,091,959

Advance premium

80,422

61,847

Income taxes payable

—

28,554

Reinsurance payable, net

453,650

257,242

Commission payable

37,041

26,307

Debt, net of issuance costs

97,336

100,481

Other liabilities and accrued expenses

57,259

41,558

Total liabilities

2,537,534

2,288,660

STOCKHOLDERS' EQUITY:

Cumulative convertible preferred stock2

—

—

Common stock3

483

482

Treasury shares, at cost - 20,731 and 20,226, respectively

(324,243

)

(305,064

)

Additional paid-in capital

130,188

124,319

Accumulated other comprehensive income (loss), net of taxes

(69,938

)

(26,151

)

Retained earnings

909,546

757,449

Total stockholders' equity

646,036

551,035

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

3,183,570

$

2,839,695

Notes:

2 Cumulative convertible preferred stock ($0.01 par value): Authorized - 1,000 shares; 10 issued and 10 outstanding; Minimum liquidation preference - $9.99 and $9.99 per share.

3 Common stock ($0.01 par value): Authorized - 55,000 shares; 48,372 and 48,234 issued; 27,641 and 28,008 outstanding, respectively.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands)

 

Three Months Ended

Nine Months Ended

September 30,

September 30,

2026

2025

2026

2025

REVENUES

Net premiums earned

$

403,196

$

359,676

$

1,137,371

$

1,075,590

Net investment income

21,478

18,337

61,178

51,655

Net realized gains (losses) on investments

973

(345

)

2,964

4,921

Net change in unrealized gains (losses) on investments

(5,964

)

1,296

(4,895

)

(4,755

)

Commission revenue

11,841

14,598

40,352

46,727

Policy fees

5,634

5,389

16,655

15,485

Other revenue

2,161

2,030

6,292

6,366

Total revenues

439,319

400,981

1,259,917

1,195,989

EXPENSES

Losses and loss adjustment expenses

260,488

252,279

733,146

763,139

Policy acquisition costs

71,486

63,594

204,026

186,046

Other operating costs and expenses

35,116

30,728

95,619

87,362

Total operating costs and expenses

367,090

346,601

1,032,791

1,036,547

Interest and amortization of debt issuance costs

2,081

1,603

5,671

4,823

Income before income tax expense

70,148

52,777

221,455

154,619

Income tax expense

17,639

12,947

55,467

38,257

NET INCOME

$

52,509

$

39,830

$

165,988

$

116,362

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SHARE AND PER SHARE INFORMATION

(in thousands, except per share data)

 

Three Months Ended

Nine Months Ended

September 30,

September 30,

2026

2025

2026

2025

Weighted average common shares outstanding - basic

27,607

27,851

27,546

27,971

Weighted average common shares outstanding - diluted

29,185

28,808

28,968

28,903

Shares outstanding, end of period

27,641

28,048

27,641

28,048

Basic earnings per common share

$

1.90

$

1.43

$

6.03

$

4.16

Diluted earnings per common share

$

1.80

$

1.38

$

5.73

$

4.03

Cash dividend declared per common share

$

0.16

$

0.16

$

0.48

$

0.48

Book value per share, end of period

$

23.37

$

17.65

$

23.37

$

17.65

Annualized return on average common equity (ROCE)

32.7

%

33.4

%

37.0

%

35.7

%

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

SUPPLEMENTARY INFORMATION

(in thousands, except for Policies In Force data)

 

Three Months Ended

Nine Months Ended

September 30,

September 30,

2026

2025

2026

2025

Premiums

Direct premiums written - Florida

$

414,404

$

428,635

$

1,228,514

$

1,222,395

Direct premiums written - Other States

194,474

164,139

508,225

434,177

Direct premiums written - Total

$

608,878

$

592,774

$

1,736,739

$

1,656,572

Direct premiums earned

$

556,724

$

534,106

$

1,632,951

$

1,570,788

Net premiums earned

$

403,196

$

359,676

$

1,137,371

$

1,075,590

Underwriting Ratios - Net

Loss ratio

64.6

%

70.2

%

64.5

%

71.0

%

Expense ratio

26.4

%

26.2

%

26.3

%

25.4

%

Policy acquisition cost ratio

17.7

%

17.7

%

17.9

%

17.3

%

Other operating costs and expenses ratio

8.7

%

8.5

%

8.4

%

8.1

%

Combined ratio

91.0

%

96.4

%

90.8

%

96.4

%

As of

September 30,

2026

2025

Policies in force

Florida

598,104

561,546

Other States

355,507

322,342

Total

953,611

883,888

Premiums in force

Florida

$

1,567,671

$

1,572,199

Other States

661,252

563,038

Total

$

2,228,923

$

2,135,237

Total Insured Value

Florida

$

198,396,329

$

184,971,114

Other States

231,171,948

200,031,575

Total

$

429,568,277

$

385,002,689

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except for per share data)

 

GAAP revenue to core revenue

Three Months Ended

Nine Months Ended

September 30,

September 30,

2026

2025

2026

2025

GAAP revenue

$

439,319

$

400,981

$

1,259,917

$

1,195,989

less: Net realized gains (losses) on investments

973

(345

)

2,964

4,921

less: Net change in unrealized gains (losses) on investments

(5,964

)

1,296

(4,895

)

(4,755

)

Core revenue

$

444,310

$

400,030

$

1,261,848

$

1,195,823

GAAP operating income to adjusted operating income

Three Months Ended

Nine Months Ended

September 30,

September 30,

2026

2025

2026

2025

GAAP income before income tax expense

$

70,148

$

52,777

$

221,455

$

154,619

add: Interest and amortization of debt issuance costs

2,081

1,603

5,671

4,823

GAAP operating income

72,229

54,380

227,126

159,442

less: Net realized gains (losses) on investments

973

(345

)

2,964

4,921

less: Net change in unrealized gains (losses) on investments

(5,964

)

1,296

(4,895

)

(4,755

)

Adjusted operating income

$

77,220

$

53,429

$

229,057

$

159,276

GAAP operating income margin to adjusted operating income margin

Three Months Ended

Nine Months Ended

September 30,

September 30,

2026

2025

2026

2025

GAAP operating income (a)

$

72,229

$

54,380

$

227,126

$

159,442

GAAP revenue (b)

439,319

400,981

1,259,917

1,195,989

GAAP operating income margin (a÷b)

16.4

%

13.6

%

18.0

%

13.3

%

Adjusted operating income (c)

77,220

53,429

229,057

159,276

Core revenue (d)

444,310

400,030

1,261,848

1,195,823

Adjusted operating income margin (c÷d)

17.4

%

13.4

%

18.2

%

13.3

%

GAAP net income (NI) to adjusted NI available to common stockholders

Three Months Ended

Nine Months Ended

September 30,

September 30,

2026

2025

2026

2025

GAAP NI

$

52,509

$

39,830

$

165,988

$

116,362

less: Preferred dividends

3

3

8

8

GAAP NI available to common stockholders (e)

52,506

39,827

165,980

116,354

less: Net realized gains (losses) on investments

973

(345

)

2,964

4,921

less: Net change in unrealized gains (losses) on investments

(5,964

)

1,296

(4,895

)

(4,755

)

add: Income tax effect on above adjustments

(1,228

)

234

(475

)

41

Adjusted NI available to common stockholders (f)

$

56,269

$

39,110

$

167,436

$

116,229

Weighted average diluted common shares outstanding (g)

29,185

28,808

28,968

28,903

Diluted earnings per common share (e÷g)

$

1.80

$

1.38

$

5.73

$

4.03

Diluted adjusted earnings per common share (f÷g)

$

1.93

$

1.36

$

5.78

$

4.02

GAAP stockholders’ equity to adjusted common stockholders’ equity

As of

September 30,

December 31,

2026

2025

2025

GAAP stockholders’ equity

$

646,036

$

495,043

$

551,035

less: Preferred equity

100

100

100

Common stockholders’ equity (h)

645,936

494,943

550,935

less: Accumulated other comprehensive income (loss), net of taxes

(69,938

)

(30,755

)

(26,151

)

Adjusted common stockholders’ equity (i)

$

715,874

$

525,698

$

577,086

Common shares outstanding (j)

27,641

28,048

28,008

Book value per common share (h÷j)

$

23.37

$

17.65

$

19.67

Adjusted book value per common share (i÷j)

$

25.90

$

18.74

$

20.60

GAAP return on common equity (ROCE) to adjusted ROCE

Three Months Ended

Nine Months Ended

Year Ended

September 30,

September 30,

December 31,

2026

2025

2026

2025

2025

Actual or Annualized NI available to common stockholders (k)

$

210,024

$

159,308

$

221,307

$

155,139

$

182,941

Average common stockholders’ equity (l)

641,496

476,326

598,436

434,047

462,043

Actual or Annualized ROCE (k÷l)

32.7

%

33.4

%

37.0

%

35.7

%

39.6

%

Annualized adjusted NI available to common stockholders (m)

$

225,076

$

156,440

$

223,248

$

154,972

$

179,532

Adjusted average common stockholders’ equity4 (n)

696,106

511,736

647,208

480,945

504,997

Actual or Annualized Adjusted ROCE (m÷n)

32.3

%

30.6

%

34.5

%

32.2

%

35.6

%

4 Adjusted average common stockholders’ equity excludes current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments.

View original source (Business Wire)Universal Insurance Holdings Inc on 6ix

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