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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 Insurance Holdings Surges with 38.5% ROE: A Robust Start to 2026

Universal Insurance Holdings delivered a headline‑making first quarter of 2026, posting a 38.5% annualized adjusted return on common equity and an adjusted diluted EPS of $2—well above the consensus estimate of $1.39. Core revenue edged up 0.8% to $398.2 million, driven by modest premium growth and a significant boost in net investment income.

Publication Date: Apr -27

📋 Highlights
  • 38.5% Annualized Return on Equity:: Strong 2026 start with 38.5% annualized adjusted return on common equity.
  • Direct Premiums Growth:: Direct premiums written rose 8.5% to $506.5 million, with 18.3% growth in non-Florida states.
  • Reinsurance Renewal:: Secured $352 million in multiyear coverage through 2027-2028, strengthening risk management.
  • Adjusted EPS Increase:: Earnings per share jumped to $2 from $1.44, driven by a 6.6-point drop in net loss ratio.
  • Net Combined Ratio Improvement:: Declined 5.3 points to 89.7%, reflecting lower net loss ratio (63.9%) and higher investment income.

Financial Performance

The company’s adjusted diluted earnings per share rose from $1.44 to $2, reflecting a 6.6‑point drop in the net loss ratio to 63.9% and a net combined ratio of 89.7%. Net investment income climbed, offsetting a modest increase in direct premiums written of 8.5% to $506.5 million. The 2026‑2027 reinsurance renewal secured an additional $352 million of multiyear coverage, strengthening the balance sheet for the 2027‑2028 treaty period.

Revenue Growth

Core revenue grew 0.8% year‑over‑year, with Florida contributing 4.9% and other states delivering 18.3% growth. Direct premiums written expanded by 8.5%, underscoring the firm’s ability to capture new business while maintaining underwriting discipline across its multistate footprint.

Underwriting & Loss Ratio

The net loss ratio fell 6.6 points to 63.9%, a testament to disciplined underwriting and effective loss control. Combined with a 5.3‑point improvement in the net combined ratio, Universal’s underwriting profitability remains robust, positioning it well ahead of peers in the insurance sector. (Staff, 2026)

Share Repurchase & Dividend

Universal repurchased roughly 210,000 shares for $7.1 million, leaving $13.1 million under its share repurchase authorization. The quarterly cash dividend of $0.16 per share—payable May 15—provides a dividend yield of 1.95%, reinforcing the company’s commitment to returning value to shareholders.

Valuation & Outlook

At a P/B ratio of 1.88 and a dividend yield of 1.95%, Universal trades at a modest premium to book value, reflecting confidence in its strong ROE of 37.5% and ROIC of 27.09%. Analysts project a 3.0% revenue growth for 2027, suggesting continued upside potential as the firm leverages its expanded reinsurance coverage and solid underwriting performance.

3. NewsRoom

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Universal Insurance Holdings, Inc. (UVE) Q1 2026 Earnings Call Transcript

Apr -24

Source: seekingalpha.com

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Universal Insurance Holdings (UVE) Surpasses Q1 Earnings and Revenue Estimates

Apr -23

Source: zacks.com

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Universal Reports First Quarter 2026 Results

Apr -23

Source: businesswire.com

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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

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

39.18$

Current Price

39.18$

Potential

-0.00%

Expected Cash-Flows