Universal Insurance Q3 profit rises on improved underwriting, investment income

Universal Insurance Holdings

22/10/2026 21:21

Overview
US property insurer's Q3 revenue rose 9.6% year-over-year
Net income rises, while adjusted EPS rose 41.9%, driven by improved underwriting and investment income
Company repurchased $7.4 mln in shares during the quarter

Outlook
Company says new business trends are solid with 8% growth in policies in force
Company says claims activity from Hurricane Isaias has been less significant than anticipated

Result Drivers
UNDERWRITING AND INVESTMENT INCOME - Co said higher adjusted net income was mainly due to improved underwriting and increased net investment income
PREMIUMS AND INVESTMENT YIELDS - Co said core revenue growth was driven by higher net premiums earned and increased net investment income
REINSURANCE PROGRAM - Lower ceded premium ratio due to new reinsurance program contributed to higher net premiums earned

Company press release: ID:nBw2wS9n4a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$439.32 mln
$386.13 mln (1 Analyst)
Q3 Core Revenue
 
$444.31 mln
 
Q3 Adjusted Net Income
 
$56.27 mln
 
Q3 Net Income
 
$52.51 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "hold"
Wall Street's median 12-month price target for Universal Insurance Holdings Inc is $31.90, about 33.2% below its October 21 closing price of $47.73
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Oct 20 - Insurance firm Chubb Q3 net income rises 
Oct 19 - RLI Q3 revenue beats estimates on underwriting performance 
Oct 22 - Insurer Old Republic's Q3 net premiums rise, helped by acquisition

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)