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1. Company Snapshot

1.a. Company Description

Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States.The company develops, markets, and underwrites insurance products for personal residential insurance, such as homeowners, renters/tenants, condo unit owners, and dwelling/fire; and offers allied lines, coverage for other structures, and personal property, liability, and personal articles coverages.It also advises on actuarial issues, oversees distribution, administers claims payments, performs policy administration and underwriting, and assists with reinsurance negotiations; places and manages reinsurance programs for the insurance entities; and operates Clovered.com, an online platform in which consumers receive side-by-side quotes from various carriers across multiple states, as well as educational materials about homeowners' insurance policies.


It offers its products through a network of independent agents, as well as Universal Direct, a direct-to-consumer online platform, which enables homeowners to directly purchase, pay for, and bind homeowners' policies.The company was formerly known as Universal Heights, Inc.and changed its name to Universal Insurance Holdings, Inc.


in January 2001.Universal Insurance Holdings, Inc.was incorporated in 1990 and is headquartered in Fort Lauderdale, Florida.

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1.b. Last Insights on UVE

Universal Insurance Holdings' recent performance was driven by strong Q1 2025 earnings and revenue beat, surpassing the Zacks Consensus Estimate. The company reported quarterly earnings of $1.44 per share, a significant increase from $1.07 per share in the same period last year. Additionally, Universal successfully concluded its claim data review, demonstrating its ability to manage and resolve claims efficiently. The company also declared a regular cash dividend, providing value to its shareholders.

1.c. Company Highlights

2. Universal's Q3 2025 Earnings: A Solid Performance

Universal reported a robust third quarter 2025, with core revenue increasing 4.9% year-over-year to $400 million, driven by higher net premiums earned, net investment income, and commission revenue. The net combined ratio improved significantly to 96.4%, down 20.5 points from the prior year quarter, with a 70.2% net loss ratio, down 21.5 points. The company's adjusted return on common equity was 30.6%, and earnings per share (EPS) came in at $1.36, beating estimates of $1.1. The strong EPS was a result of the company's unique organic business model and more conservative reserving process, as noted by Steve Donaghy, "the company's reserving process has become more conservative, with a focus on protecting and increasing the resilience of the balance sheet."

Publication Date: Oct -28

📋 Highlights
  • Adjusted Return on Common Equity:: 30.6%, driven by organic growth and conservative reserving.
  • Core Revenue Growth:: $400 million (4.9% YoY), boosted by higher premiums, investment income, and commissions.
  • Net Combined Ratio Improvement:: 96.4% (20.5 pts lower YoY), with net loss ratio at 70.2% (21.5 pts lower).
  • Reserving and Claims Efficiency:: Reduced file/claims counts and faster handling improved book resilience.
  • Capital Management:: $3.9 million in prior-year catastrophe development recognized post-annual review.

Operational Highlights

The company's operational performance was also noteworthy, with a significant reduction in file count and claims count, resulting in faster claims handling and a more positive effect on the book and reserving philosophy. This improvement in operational efficiency is likely to have a positive impact on the company's underwriting profitability, as reflected in the improved net combined ratio.

Competitive Positioning and Outlook

Regarding the competitive environment, Universal is a niche provider outside of Florida, with adequate rates in certain spots. Within Florida, the company is facing new entrants, but is focusing on rate adequacy and high service levels to insurers and profitability to shareholders. The company's management is optimistic about its prospects, with a focus on driving profitability and returning value to shareholders.

Valuation and Return to Shareholders

Universal's shares are currently trading at a Price-to-Book Ratio (P/B) of 1.8, which suggests that the market is pricing in a moderate level of profitability. The company's Dividend Yield is 2.41%, providing a relatively stable source of return for investors. With analysts estimating revenue growth of 3.0% next year, the company's prospects appear to be positive. Universal's management has also indicated that it views its shares as a positive within its capital management, and will continue to work with the investment committee to establish guidelines for share repurchases.

3. NewsRoom

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Intech Investment Management LLC Reduces Stock Holdings in Universal Insurance Holdings Inc $UVE

Dec -01

Source: defenseworld.net

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Bank of New York Mellon Corp Acquires 9,046 Shares of Universal Insurance Holdings Inc $UVE

Nov -22

Source: defenseworld.net

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Universal Insurance Holdings Inc $UVE Shares Sold by Campbell & CO Investment Adviser LLC

Nov -17

Source: defenseworld.net

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Universal Declares Regular and Special Cash Dividends

Nov -06

Source: businesswire.com

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Universal Insurance Holdings, Inc. (UVE) Q3 2025 Earnings Call Transcript

Oct -24

Source: seekingalpha.com

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Oct -24

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Insurance and Related Activities

Expected Growth: 4.0%

Universal Insurance Holdings, Inc.'s 4.0% growth in Insurance and Related Activities is driven by increasing demand for homeowners' insurance, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, improved underwriting practices, and effective risk management have contributed to its growth.

7. Detailed Products

Homeowners Insurance

Provides financial protection to homeowners against damage to their homes and personal liability

Flood Insurance

Covers damage to homes and personal belongings due to flooding

Dwelling Fire Insurance

Provides coverage for rental properties and vacant homes

Commercial Insurance

Offers liability and property coverage for businesses

Umbrella Insurance

Provides additional liability coverage beyond standard insurance policies

8. Universal Insurance Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is low for Universal Insurance Holdings, Inc. because the company operates in a highly regulated industry, making it difficult for new substitutes to enter the market.

Bargaining Power Of Customers

The bargaining power of customers is medium for Universal Insurance Holdings, Inc. because while customers have some flexibility to choose from different insurance providers, the company's strong brand reputation and customer loyalty programs help to mitigate this power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Universal Insurance Holdings, Inc. because the company is a large buyer of reinsurance and has significant negotiating power with its suppliers.

Threat Of New Entrants

The threat of new entrants is low for Universal Insurance Holdings, Inc. because the company operates in a highly regulated industry with significant barriers to entry, including high capital requirements and complex regulatory requirements.

Intensity Of Rivalry

The intensity of rivalry is high for Universal Insurance Holdings, Inc. because the company operates in a highly competitive industry with many established players, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.46%
Debt Cost 7.41%
Equity Weight 74.54%
Equity Cost 8.15%
WACC 7.96%
Leverage 34.16%

11. Quality Control: Universal Insurance Holdings, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Horace Mann Educators

A-Score: 7.3/10

Value: 7.3

Growth: 5.0

Quality: 5.7

Yield: 7.0

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

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Universal Insurance Holdings

A-Score: 6.8/10

Value: 8.3

Growth: 6.2

Quality: 6.6

Yield: 6.0

Momentum: 8.5

Volatility: 5.3

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HCI Group

A-Score: 6.6/10

Value: 5.6

Growth: 8.2

Quality: 7.8

Yield: 3.0

Momentum: 9.0

Volatility: 6.0

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Safety Insurance

A-Score: 6.3/10

Value: 7.4

Growth: 3.9

Quality: 7.1

Yield: 8.0

Momentum: 1.5

Volatility: 9.7

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Global Indemnity

A-Score: 5.3/10

Value: 6.1

Growth: 4.2

Quality: 5.9

Yield: 8.0

Momentum: 2.0

Volatility: 5.7

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Skyward Specialty Insurance

A-Score: 4.9/10

Value: 6.1

Growth: 8.3

Quality: 6.7

Yield: 0.0

Momentum: 4.5

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

31.85$

Current Price

31.85$

Potential

-0.00%

Expected Cash-Flows