Universal Insurance (UVE)
NYSE:UVE
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Universal Insurance Holdings
(NYSE:UVE)
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Rating:74Outperform
Price Target:
$40.00
▲(12.42% Upside)
Action:Reiterated
Date:06/06/26
The score is driven primarily by strong financial performance (rebounding profitability, very strong ROE, and robust free cash flow) and attractive valuation (low P/E with a dividend). These positives are tempered by weak technical momentum (oversold and below key short-term averages) and some near-term business signals of slowing revenue/top-line growth.
Positive Factors
High Return on Equity
A ~37.5% trailing ROE signals durable capital efficiency from underwriting and investment results. Sustained high ROE allows the insurer to retain earnings, support dividends and repurchases, and better absorb underwriting volatility, strengthening long-term shareholder returns and capital flexibility.
Negative Factors
Sharp Revenue Decline (TTM)
A ~21% TTM revenue decline and margin compression signal weakening top-line scale and possible adverse mix or ceded premium effects. Persistent revenue contraction can erode underwriting leverage, limit investment income growth and make sustaining margins harder without consistent rate increases or product repricing.
Read all positive and negative factors
Positive Factors
Negative Factors
High Return on Equity
A ~37.5% trailing ROE signals durable capital efficiency from underwriting and investment results. Sustained high ROE allows the insurer to retain earnings, support dividends and repurchases, and better absorb underwriting volatility, strengthening long-term shareholder returns and capital flexibility.
Read all positive factors
Universal Insurance Holdings (UVE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.06B
Dividend Yield2.18%
Average Volume (3M)195.81K
Price to Earnings (P/E)5.4
Beta (1Y)0.35
Revenue Growth3.57%
EPS Growth198.87%
CountryUS
Employees1,068
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)7.02
Shares Outstanding27,911,118
10 Day Avg. Volume177,639
30 Day Avg. Volume195,815
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.71
Price to Sales (P/S)0.59
P/FCF Ratio2.50
Enterprise Value/Market Cap0.51
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit1.06
Enterprise Value/Ebitda1.97
Forecast
1Y Price Target
$40.00Price Target Upside12.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.63
Revenue Forecast (FY)$2.20B
Universal Insurance Holdings Business Overview & Revenue Model
Company Description
Universal Insurance Holdings, Inc., along with its subsidiaries, operates as a comprehensive integrated insurance holding company across the United States. The firm is responsible for crafting, promoting, and evaluating a diverse array of personal...
How the Company Makes Money
UVE generates earnings primarily from its insurance operations by (1) collecting premiums on property and casualty policies and (2) investing the premium “float” (funds held between premium collection and claim payment) in an investment portfolio....
Universal Insurance Holdings Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed strong profitability and capital management positives: very high adjusted ROE (38.5%), a ~38.9% increase in adjusted diluted EPS, improved combined and loss ratios, expanded multiyear reinsurance protection, share repurchases and a dividend. Offsetting items were modest top-line growth (core revenue +0.8%, net premiums earned +0.3%), a higher net expense ratio (+1.3 points) and some competitive and disclosure uncertainties. On balance, the positive operational and capital outcomes outweigh the limited growth and expense pressures.Positive Updates
Exceptional Return on Equity
Universal reported a 38.5% annualized adjusted return on common equity for the quarter, indicating very strong profitability and capital efficiency.
Negative Updates
Minimal Net Premiums Earned Growth
Net premiums earned were $356.9 million, up only 0.3% year-over-year. The modest increase was primarily due to a higher ceded premium ratio offsetting direct premium growth.
Read all updates
Q1-2026 Updates
Positive
Negative
Exceptional Return on Equity
Universal reported a 38.5% annualized adjusted return on common equity for the quarter, indicating very strong profitability and capital efficiency.
Read all positive updates
Company Guidance
Management's guidance focused on capital and reinsurance stability and measured rate actions: the company completed its 2026–2027 reinsurance renewal (program fully supported), securing an additional $352 million of multiyear coverage through the 2027–28 treaty period, and confirmed retentions will remain $45 million with the captive covering the $66 million layer above $45 million for the first event; they said they will prioritize supporting the insurance entities while returning shareholder value (repurchased ~210,000 shares for $7.1 million this quarter with ~$13.1 million of repurchase authorization remaining, and declared a $0.16 quarterly dividend payable May 15, record May 8). Management has not yet begun rate filings and will analyze the past 12 months before making rate adjustments, and reiterated strong recent results including a 38.5% annualized adjusted ROE, adjusted diluted EPS of $2 (vs. $1.44 prior), core revenue $398.2M (+0.8% YoY), direct premiums written $506.5M (+8.5% YoY; Florida +4.9%, other states +18.3%), direct premiums earned $531.4M (+3.5% YoY), net premiums earned $356.9M (+0.3% YoY), net combined ratio 89.7% (down 5.3 pts), net loss ratio 63.9% (down 6.6 pts) and net expense ratio 25.8% (up 1.3 pts).Universal Insurance Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.60B | 1.60B | 1.52B | 1.39B | 1.22B | 1.12B |
| Gross Profit | 509.71M | 609.72M | 199.73M | 190.94M | 70.00M | 116.48M |
| EBITDA | 272.42M | 256.56M | 96.50M | 101.48M | -14.04M | 35.91M |
| Net Income | 195.80M | 182.95M | 58.93M | 66.82M | -22.26M | 20.41M |
Balance Sheet | ||||||
| Total Assets | 2.77B | 2.84B | 2.84B | 2.32B | 2.89B | 2.06B |
| Cash, Cash Equivalents and Short-Term Investments | 740.55M | 571.79M | 419.43M | 1.46B | 1.40B | 1.29B |
| Total Debt | 100.29M | 100.48M | 101.24M | 116.60M | 102.77M | 130.44M |
| Total Liabilities | 2.18B | 2.29B | 2.47B | 1.98B | 2.60B | 1.63B |
| Stockholders Equity | 584.74M | 551.03M | 373.25M | 341.30M | 287.90M | 429.70M |
Cash Flow | ||||||
| Free Cash Flow | 344.75M | 377.06M | 129.99M | 66.95M | 319.62M | 227.15M |
| Operating Cash Flow | 349.55M | 381.49M | 137.36M | 70.97M | 324.51M | 234.38M |
| Investing Cash Flow | -92.18M | -113.61M | -228.09M | -15.25M | -148.86M | -229.40M |
| Financing Cash Flow | -59.78M | -52.12M | -47.13M | -47.12M | -37.46M | 68.30M |
Universal Insurance Holdings Technical Analysis
Positive
35.58
Price Trends
37.14
Positive
34.69
Positive
32.13
Positive
Market Momentum
-0.27
Positive
52.03
Neutral
55.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UVE, the sentiment is Positive. The current price of 35.58 is below the 20-day moving average (MA) of 37.93, below the 50-day MA of 37.14, and above the 200-day MA of 32.13, indicating a neutral trend. The MACD of -0.27 indicates Positive momentum. The RSI at 52.03 is Neutral, neither overbought nor oversold. The STOCH value of 55.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UVE.
Universal Insurance Holdings Risk Analysis
Universal Insurance Holdings disclosed 32 risk factors in its most recent earnings report. Universal Insurance Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Universal Insurance Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.22B | 9.34 | 14.36% | 1.73% | 10.58% | 96.22% | |
75 Outperform | $677.41M | 3.40 | 43.68% | ― | 1.25% | 157.31% | |
74 Outperform | $1.06B | 5.42 | 37.50% | 2.18% | 3.57% | 198.87% | |
71 Outperform | $651.44M | 9.70 | 10.41% | 3.51% | -2.46% | -11.49% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $505.96M | 4.84 | 33.02% | ― | 10.65% | 39.18% | |
54 Neutral | $377.35M | 11.04 | 3.63% | 5.01% | 2.99% | 14.96% |
* Financial Sector Average
UVE
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Universal Insurance Holdings Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Universal Insurance Updates Note Indenture for Redemption Flexibility
Positive
Jun 5, 2026
On June 3, 2026, Universal Insurance Holdings, Inc. amended the indenture governing its 5.625% Senior Unsecured Notes due 2026 through a First Supplemental Indenture with UMB Bank National Association, after obtaining consent from holders of a maj...
Business Operations and Strategy
Universal Insurance Finalizes 2026–2027 Catastrophe Reinsurance Program
Positive
May 28, 2026
Universal Insurance Holdings said its subsidiaries Universal Property Casualty Insurance Company and American Platinum Property and Casualty Insurance Company have completed their combined 2026-2027 catastrophe reinsurance program, effective June...
DividendsFinancial Disclosures
Universal Insurance Declares Dividend, Sets Q1 Earnings Date
Positive
Apr 10, 2026
Universal Insurance Holdings, Inc., a U.S. property and casualty insurer specializing in personal residential homeowners policies and related insurance services, operates through both independent agents and digital platforms. Its business centers ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.