Universal Insurance NYSE: UVE executives highlighted improving underwriting results, steady revenue growth, and a completed reinsurance renewal during the company’s first-quarter 2026 earnings call.
Management cites strong start to 2026
Chief Executive Officer Steve Donaghy said the company delivered “a fantastic start to the year,” pointing to a 38.5% annualized adjusted return on common equity. Donaghy also said top-line results were “strong with growth across our multi-state footprint, including in Florida.”
Earnings improve on lower loss ratio and higher investment income
Chief Financial Officer Frank Wilcox reported adjusted diluted earnings per common share of $2.00, up from $1.44 in the prior-year quarter. Wilcox said the increase “mostly stems from a lower net loss ratio and higher net investment income.”
Core revenue totaled $398.2 million, up 0.8% year-over-year, which Wilcox attributed primarily to higher net investment income and net premiums earned.
Premium trends were led by growth in direct written business. Direct premiums written were $506.5 million, up 8.5% from the prior-year quarter. Wilcox said the increase was driven by 4.9% growth in Florida and 18.3% growth in other states, reflecting “higher policies in force and inflation adjustments across our multi-state footprint.”
Direct premiums earned were $531.4 million, up 3.5%, reflecting written premium growth over the last 12 months. Net premiums earned were $356.9 million, up 0.3%, as higher direct premiums earned were partially offset by a higher ceded premium ratio.
Combined ratio improves as accident year results strengthen
The company’s net combined ratio improved to 89.7%, down 5.3 points from the prior-year quarter. Wilcox said the improvement reflected a lower net loss ratio, partially offset by a higher net expense ratio.
Wilcox reported a 63.9% net loss ratio, down 6.6 points year-over-year, which he said was driven by “better current accident year results.” Meanwhile, the net expense ratio rose to 25.8%, up 1.3 points, as Wilcox cited a higher ceded premium ratio and higher policy acquisition costs tied to growth outside Florida.
Reinsurance renewal completed; multi-year coverage extended
Donaghy said the company completed its 2026-2027 reinsurance renewal and that the program is “fully supported and secured.” He added that Universal also secured $352 million of additional multi-year coverage, extending protection through the 2027-2028 treaty period.
Asked for additional detail on renewal terms, Donaghy said the company would wait until May to release pricing information. “From a pricing perspective, we’re going to sit on that until we get to May and release all the details as normal,” he said, adding that management was “very pleased with the market and very pleased with our partners.”
On structure and retention, Wilcox said retentions would remain unchanged. “The retentions will remain the same for the insurance entities, $45 million,” he said. Wilcox added the company plans to continue using its captive “in the same manner for the $66 million layer above $45 million for the first event,” describing the structure as “identical to last year.”
Capital returns: share repurchases and quarterly dividend
Wilcox said the company repurchased approximately 210,000 shares during the first quarter at an aggregate cost of $7.1 million. He added that about $13.1 million remains under the current share repurchase authorization.
Universal’s board also declared a quarterly cash dividend of $0.16 per share, payable May 15, 2026, to shareholders of record as of May 8, 2026.
On capital management priorities, Wilcox said the company intends to “stay the course,” emphasizing that the top priority is supporting the insurance entities and ensuring they are “adequately capitalized,” alongside returning value to shareholders.
Competitive environment and rate posture
During the Q&A session, Piper Sandler analyst Paul Newsome asked about competition in Florida and other states and whether strong reported returns could attract new entrants. Donaghy said the company focuses on “rate adequacy more than we are chasing business,” adding that Universal feels good about its competitive position and that its “relationship with our agents has never been stronger.”
On future pricing, Donaghy said the company had not yet begun its rate analysis. He said Universal would review the prior 12 months as part of that process and would “take that all into account and continue to do the right thing.”
About Universal Insurance NYSE: UVE
Universal Insurance Holdings, Inc NYSE: UVE is a property and casualty insurance holding company headquartered in Jacksonville, Florida. The company underwrites homeowners and other residential property insurance products to protect against natural catastrophes such as hurricanes, windstorms and fires. It distributes policies primarily through a network of independent agents and brokers, offering coverage for primary residences, secondary homes, condominiums, vacant dwellings and rental properties across its service territory.
In addition to personal lines, Universal provides commercial property and casualty insurance tailored to small businesses and institutional clients.
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