Universal Insurance reports Q3 adjusted EPS $1.36 vs. (73c) last year

Reports Q3 revenue $401M vs. $387.6M last year. Annualized return on average common equity of 33.4%, annualized adjusted ROCE of 30.6%; Direct premiums written of $592.8 million, up 3.2% from the prior year quarter; Book value per share of $17.65, up 24.7% year-over-year; adjusted book value per share of $18.74, up 18.9% year-over-year. “It was a solid quarter, with a 30.6% adjusted return on common equity,” said Stephen J. Donaghy, CEO. “Our unique, organic business model allows us to consistently generate deep double digit ROEs, making us particularly well positioned to succeed in the much improved FL market. Additionally, we commenced our annual actuarial review process considerably earlier this year and our findings are very encouraging. As we’ve discussed in recent periods, our reserving process has become more conservative, with a focus on protecting and increasing the resilience of our balance sheet. When we look at our current and prior accident year reserves in the aggregate, we believe we’re in a very strong position, further increasing our optimism as we turn a new chapter in the revamped FL market.”