Universal Insurance Holdings Inc (UVE)
NYSE:UVE
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Universal Insurance Holdings
(NYSE:UVE)
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Rating:82Outperform
Price Target:
$41.00
▲(18.60% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by the sharp improvement in financial performance and cash generation in 2025, supported by a very low P/E valuation and constructive technical trend signals. The latest earnings call reinforces improved underwriting and capital positioning, while the main limiter is historical volatility in results and indications that some recent improvement reflects favorable prior-year catastrophe comparisons.
Positive Factors
Underwriting improvement
The sharp reduction in combined and loss ratios indicates durable underwriting and claims management improvements. Sustained lower loss costs and tighter pricing discipline support margin sustainability, reduce capital strain from claims volatility, and materially enhance long‑term underwriting profitability.
Negative Factors
Earnings & cash‑flow volatility
Historic swings in profitability and cash flow highlight cyclical risk in underwriting outcomes. Such volatility can force reactive capital measures, constrain long‑term investment or expansion plans, and complicate reserve forecasting, increasing the probability of capital or pricing adjustments in stressed years.
Read all positive and negative factors
Positive Factors
Negative Factors
Underwriting improvement
The sharp reduction in combined and loss ratios indicates durable underwriting and claims management improvements. Sustained lower loss costs and tighter pricing discipline support margin sustainability, reduce capital strain from claims volatility, and materially enhance long‑term underwriting profitability.
Read all positive factors
Universal Insurance Holdings (UVE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$968.24M
Dividend Yield2.18%
Average Volume (3M)212.93K
Price to Earnings (P/E)5.1
Beta (1Y)0.32
Revenue Growth4.61%
EPS Growth73.40%
CountryUS
Employees1,068
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)2.17
Shares Outstanding28,008,188
10 Day Avg. Volume157,228
30 Day Avg. Volume212,931
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 Cap0.61
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit1.38
Enterprise Value/Ebitda2.31
Forecast
1Y Price Target
$40.00Price Target Upside15.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4
Revenue Forecast (FY)$2.21B
Universal Insurance Holdings Business Overview & Revenue Model
Company Description
Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States. The company develops, markets, and underwrites insurance products for personal residential insurance, suc...
How the Company Makes Money
Universal Insurance Holdings generates revenue primarily through the underwriting of insurance policies. The company earns premiums from policyholders, which serve as the main revenue stream. These premiums are collected in exchange for providing ...
Universal Insurance Holdings Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call emphasized strong profitability and improving underwriting metrics (adjusted ROE >46%, adjusted EPS up materially, lower combined and loss ratios), robust capital and reinsurance positioning, and geographic growth outside Florida. Offsetting items include a modest decline in Florida premiums, a slight rise in the expense ratio, and the fact some improvement is aided by favorable prior-year comparables (Hurricane Milton). Management portrayed a favorable competitive position and high retention but acknowledged industry-wide competition and regulatory risks. Overall, positives materially outweigh the negatives.Positive Updates
Very Strong Adjusted Return on Equity
Adjusted return on common equity exceeded 46%, reflecting high profitability for the quarter.
Negative Updates
Florida Direct Premiums Declined
Direct premiums written in Florida decreased by 3.1% in the quarter, partially offsetting growth in other states.
Read all updates
Q4-2025 Updates
Positive
Negative
Very Strong Adjusted Return on Equity
Adjusted return on common equity exceeded 46%, reflecting high profitability for the quarter.
Read all positive updates
Company Guidance
Management's guidance focused on continued balance-sheet and capital actions and disciplined pricing: they reported that placement of the 2026 reinsurance program is well underway with a substantial portion of the first-event catastrophe tower already placed and meaningful multiyear capacity secured for 2027, will kick off the 2026 actuarial rate study at the end of March, and characterized their capital position as robust with reserves “the strongest in our history.” They also announced a new share repurchase program of up to $20.0 million through January 8, 2028 (after repurchasing ~210,000 shares for $6.9 million in Q4) and a regular quarterly cash dividend of $0.16 per common share payable March 13, 2026. Underlying the guidance were strong operating metrics: adjusted ROE >46%, adjusted diluted EPS $2.17 (vs. $0.25 prior year), core revenue $403.6M (+4.4% YoY), direct premiums written $483.7M (+2.7%), direct premiums earned $538.0M (+3.6%), net premiums earned $363.4M (+4.3%), net combined ratio 87.5% (down 20.4 pts), net loss ratio 61.3% (down 21 pts) and net expense ratio 26.2% (up 0.6 pts).Universal Insurance Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.60B | 1.52B | 1.39B | 1.22B | 1.12B |
| Gross Profit | 609.72M | 199.73M | 190.94M | 70.00M | 116.48M |
| EBITDA | 256.56M | 96.50M | 101.48M | -14.04M | 35.91M |
| Net Income | 182.95M | 58.93M | 66.82M | -22.26M | 20.41M |
Balance Sheet | |||||
| Total Assets | 2.35B | 2.84B | 2.32B | 2.89B | 2.06B |
| Cash, Cash Equivalents and Short-Term Investments | 477.84M | 419.43M | 1.46B | 388.71M | 250.51M |
| Total Debt | 100.48M | 101.24M | 116.60M | 102.77M | 130.44M |
| Total Liabilities | 1.80B | 2.47B | 1.98B | 2.60B | 1.63B |
| Stockholders Equity | 551.03M | 373.25M | 341.30M | 287.90M | 429.70M |
Cash Flow | |||||
| Free Cash Flow | 377.06M | 129.99M | 66.95M | 319.62M | 227.15M |
| Operating Cash Flow | 381.49M | 137.36M | 70.97M | 324.51M | 234.38M |
| Investing Cash Flow | -113.61M | -228.09M | -15.25M | -148.86M | -229.40M |
| Financing Cash Flow | -52.12M | -47.13M | -47.12M | -37.46M | 68.30M |
Universal Insurance Holdings Technical Analysis
Positive
34.57
Price Trends
32.90
Positive
32.49
Positive
29.30
Positive
Market Momentum
0.19
Positive
56.13
Neutral
71.25
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 34.57 is above the 20-day moving average (MA) of 33.87, above the 50-day MA of 32.90, and above the 200-day MA of 29.30, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 71.25 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 3 New Risks
1.
Our ability to implement or adjust to technological changes, especially regarding AI, may be limited, or we could introduce technology containing errors, which may trigger regulatory issues and put us at a competitive disadvantage. Q4, 2025
2.
Failure to maintain or enhance our brand or damage to our reputation could adversely impact our business. Q4, 2025
3.
An overall decline in the housing market or general economic conditions could have a material adverse effect on the financial condition and results of operations of our business. Q4, 2025
Universal Insurance Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $968.24M | 5.15 | 37.99% | 2.18% | 4.61% | 73.40% | |
80 Outperform | $993.83M | 6.27 | 13.50% | 1.73% | 12.22% | 120.73% | |
79 Outperform | $817.79M | 4.62 | 47.28% | ― | 5.92% | 93.02% | |
70 Outperform | $558.57M | 5.73 | 35.67% | ― | 16.34% | -1.26% | |
69 Neutral | $653.74M | 7.74 | 12.91% | 3.51% | 0.93% | 224.95% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $401.82M | 15.90 | 3.63% | 5.01% | -0.04% | -33.45% |
* Financial Sector Average
UVE
Universal Insurance Holdings
34.57
12.78
58.65%
DGICA
Donegal Group
17.45
-0.09
-0.51%
GBLI
Global Indemnity
28.00
-1.18
-4.03%
UFCS
United Fire Group
38.94
12.85
49.28%
ACIC
American Coastal Insurance
11.48
1.35
13.33%
HRTG
Heritage Insurance Holdings
26.62
11.46
75.59%
Universal Insurance Holdings Corporate Events
Dividends
Universal Insurance Declares Regular Quarterly Cash Dividend
Positive
Feb 4, 2026
On February 4, 2026, Universal Insurance Holdings, Inc. announced that its Board of Directors declared a regular quarterly cash dividend of $0.16 per share on its common stock, payable on March 13, 2026 to shareholders of record as of March 6, 202...
Business Operations and StrategyStock Buyback
Universal Insurance Launches $20 Million Share Repurchase Program
Positive
Jan 7, 2026
On January 7, 2026, Universal Insurance Holdings, Inc. announced that its Board of Directors had authorized a new share repurchase program allowing the company to buy back up to $20 million of its outstanding common stock through January 8, 2028, ...
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.