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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 Q4 2025 Earnings Shine with Strong Profitability

Universal's financial performance in Q4 2025 was outstanding, with adjusted diluted earnings per common share reaching $2.17, a significant jump from $0.25 in the prior year quarter. This improvement was primarily driven by a lower net loss ratio and higher net premiums earned and net investment income. Core revenue stood at $403.6 million, up 4.4% year-over-year, reflecting the growth in net premiums earned and net investment income. The net combined ratio was 87.5%, down 20.4 points compared to the prior year quarter, due to a lower net loss ratio. The actual EPS of $2.17 exceeded estimates of $1.3, indicating a strong quarter.

Publication Date: Mar -06

📋 Highlights
  • Adjusted Return on Common Equity:: Surpassed 46%, reflecting strong profitability and capital efficiency.
  • Adjusted Diluted EPS Growth:: Rose to $2.17 from $0.25 YoY, driven by lower net loss ratio and higher premiums/investment income.
  • Core Revenue Increase:: Reached $403.6M (+4.4% YoY) due to higher net premiums earned and investment income.
  • Net Combined Ratio Improvement:: Dropped to 87.5% (−20.4 points YoY), aided by a 21-point decline in net loss ratio to 61.3%.
  • Share Repurchase Program:: Spent $6.9M to buy 210K shares and authorized a new $20M repurchase program through January 2028.

Revenue Growth and Premiums

Direct premiums written were $483.7 million, up 2.7% from the prior year quarter, with an 18.2% growth in other states partially offset by a 3.1% decrease in Florida. Direct premiums earned of $538 million were up 3.6% year-over-year, reflecting direct premiums written growth over the past 12 months. This growth in premiums earned contributed to the overall revenue increase.

Underwriting Profitability

The net loss ratio was 61.3%, down 21 points compared to the prior year quarter, reflecting better current accident year results and the inclusion of Hurricane Milton in the prior year quarter. The company's underwriting profitability improved significantly, as evidenced by the decrease in the net loss ratio.

Share Repurchase and Dividend

The company repurchased approximately 210,000 shares at an aggregate cost of $6.9 million and announced a new share repurchase program under which the company may repurchase up to $20 million of its outstanding shares of common stock through January 8, 2028. Additionally, the Board of Directors declared a regular quarterly cash dividend of $0.16 per common share payable on March 13, 2026.

Outlook and Valuation

Analysts estimate next year's revenue growth at 3.0%. With a Price-to-Book Ratio of 1.79 and a Dividend Yield of 2.18%, Universal's valuation appears reasonable. The company's strong profitability, as indicated by an ROE of 37.99%, supports its current valuation. As Steve Donaghy mentioned, "without the actions taken by the state of Florida and Governor DeSantis, the industry would not be in the position it is today," highlighting the positive impact of legislative reforms on the company's performance.

3. NewsRoom

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Universal Insurance (NYSE:UVE) CAO Kimberly Campos Sells 879 Shares

Mar -29

Source: defenseworld.net

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Why Is Universal Insurance (UVE) Up 4.6% Since Last Earnings Report?

Mar -26

Source: zacks.com

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Universal Insurance and Florida Insurance in 2026: Will the Reset Work?

Mar -25

Source: zacks.com

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Universal Insurance Valuation: Is 1.78x Book Value Too Rich?

Mar -25

Source: zacks.com

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Universal Insurance: What Florida Reforms Mean for Earnings in 2026

Mar -25

Source: zacks.com

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Financial Survey: Universal Insurance (NYSE:UVE) vs. Hagerty (NYSE:HGTY)

Mar -23

Source: defenseworld.net

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Best Value Stocks to Buy for March 2nd

Mar -02

Source: zacks.com

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New Strong Buy Stocks for March 2nd

Mar -02

Source: zacks.com

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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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.14$

Current Price

34.14$

Potential

-0.00%

Expected Cash-Flows