Overview

• Insurance provider's Q4 revenue rose 6% yr/yr

• Adjusted EPS for Q4 increased significantly compared to last year

• Company announced new $20 mln share repurchase program in January

Outlook

• Universal is negotiating its 2026 reinsurance program with 90% of catastrophe tower placed

• Company has secured multi-year capacity for 2027 hurricane season

Result Drivers

• REVENUE GROWTH - Higher net premiums earned and net investment income contributed to a 6% increase in total revenue

• PREMIUMS INCREASE - Direct premiums written rose 2.7% due to 18.2% growth in other states, offsetting a 3.1% decline in Florida

• LOSS RATIO IMPROVEMENT - Net loss ratio decreased by 21 points, reflecting better current accident year results and absence of Hurricane Milton

Company press release: ID:nBw482VQPa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Beat	$407.93 mln	$372.99 mln (1 Analyst)
Q4 Core Revenue		$403.57 mln
Q4 Adjusted Net Income		$63.30 mln
Q4 Net Income		$66.59 mln

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the property & casualty insurance peer group is "buy"

• Wall Street's median 12-month price target for Universal Insurance Holdings Inc is $40.00, about 32.3% above its February 23 closing price of $30.23

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

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