Universal Insurance lifts Q1 earnings on underwriting gains

Universal Insurance Holdings reported higher first-quarter 2026 earnings, supported by stronger underwriting performance, higher net investment income and continued growth in direct written premiums, even as total revenue edged lower from a year earlier.

For the three months ended 31 March 2026, net income available to common stockholders rose 31.0% to $54.3 million, up from $41.4 million in the prior-year period. Diluted earnings per common share increased 30.6% to $1.88, while adjusted diluted earnings per share rose 38.9% to $2.00.

The company also reported annualized return on average common equity of 38.2%, compared with 41.7% a year earlier, while annualized adjusted ROCE improved to 38.5% from 36.4%.

Profitability boost from underwriting gains

Universal said direct premiums written increased 8.5% year over year to $506.5 million. That included 4.9% growth in Florida and 18.3% growth in other states, reflecting higher numbers of policies in force across its multi-state footprint, as well as inflation-related adjustments. Net premiums earned rose slightly to $356.9 million from $355.7 million.

Total revenue, however, slipped 0.3% to $393.6 million. Core revenue rose 0.8% to $398.2 million, helped by higher net investment income and net premiums earned. Net investment income climbed to $19.5 million from $16.1 million, driven by higher fixed income reinvestment yields and larger invested assets. Commission and policy fees and other revenue fell 5.7% to $21.8 million, mainly due to lower commissions earned on reinstatements in the prior-year quarter.

The company’s underwriting results improved materially. The net loss ratio fell to 63.9% from 70.5%, while the combined ratio improved to 89.7% from 95.0%. Universal said the better result reflected lower current accident year losses. The net expense ratio rose to 25.8% from 24.5%, partly due to a higher ceded premium ratio and higher policy acquisition costs linked to growth outside Florida.

Book value per share increased 39.9% year over year to $20.95, while adjusted book value per share rose 32.2% to $22.19. Universal said the quarter’s performance benefited from a lower net loss ratio and stronger investment income, helping lift both reported and adjusted profitability.