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Universal Insurance Reports Mixed 2024 Financial Results

Universal Insurance Reports Mixed 2024 Financial Results

Universal Insurance ( (UVE) ) has released its Q4 earnings. Here is a breakdown of the information Universal Insurance presented to its investors.

Universal Insurance Holdings, Inc. is a holding company that provides property and casualty insurance and value-added insurance services, primarily focusing on personal residential homeowners lines of business in the United States, with a significant presence in Florida.

In its fourth quarter and full year 2024 earnings report, Universal Insurance Holdings announced a diluted GAAP earnings per share of $0.21 and an adjusted EPS of $0.25. The company reported direct premiums written of $470.9 million, marking an 8.8% increase from the previous year, and a book value per share of $13.28, up 12.7% year-over-year.

Key financial metrics showed a mixed performance, with total revenues increasing by 2.5% to $384.8 million for the quarter, while operating income saw a significant decline of 67.5% to $8.96 million. The net income available to common stockholders decreased by 69.9% to $6.0 million. Despite these challenges, the company achieved a growth in direct premiums written, driven by a 38.4% increase in states outside Florida, and a rise in net investment income to $15.6 million.

Universal Insurance Holdings faced higher loss and expense ratios, with a combined ratio of 107.9%, reflecting the impact of weather-related losses from hurricanes and increased policy acquisition costs. The company returned $16.2 million in capital to shareholders, including share repurchases and dividends.

Looking forward, Universal Insurance Holdings is focused on negotiating its 2025 reinsurance program and has secured significant multi-year capacity for the 2026 hurricane season. The company is optimistic about its progress in claims trends and legislative changes in Florida, which could positively impact future performance.

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