NYSE$UVE

Universal Insurance Holdings Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Universal Insurance Holdings reported its fourth quarter 2024 results, with a decrease in net income and EPS compared to the prior year quarter, primarily due to lower underwriting income.

Universal Insurance Holdings reported a decrease in net income and diluted GAAP EPS for the fourth quarter of 2024, with net income available to common stockholders at $6.0 million and diluted GAAP EPS at $0.21. Total revenues increased by 2.5% to $384.8 million, driven by higher net premiums earned and investment income, while the combined ratio increased to 107.9%.

  • Diluted GAAP earnings per common share (EPS) were $0.21, a decrease from $0.68 in the prior year quarter.
  • Total revenues increased by 2.5% to $384.8 million, compared to $375.5 million in the prior year quarter.
  • Direct premiums written grew by 8.8% to $470.9 million, with growth in both Florida and other states.
  • The net combined ratio increased to 107.9%, up from 103.7% in the prior year quarter, driven by higher net loss and expense ratios.

Headline financials

Total Revenue

$385M

Previous: $375M+2.5%
EPS (adj)

$0.25

Previous: $0.43-41.9%
Direct Premiums Written

$471M

Previous: $433M+8.8%
Net Expense Ratio

25.6%

Previous: 21.8%+17.4%
Net Loss Ratio

82.3%

Previous: 81.9%+0.5%
Combined Ratio

107.9%

Previous: 103.7%+4.1%
Net Premiums Earned

$348M

Previous: $335M+3.9%
Net Investment Income

$15.6M

Previous: $13.7M+13.5%
Annualized ROCE

6.2%

Previous: 24.9%-75.1%
Book Value Per Share

$13.28

Previous: $11.78+12.7%
Policies in Force

855.5K

Previous: 809.9K+5.6%
Premiums in Force

$2.08B

Previous: $1.93B+7.5%
Total Insured Value

$359B

Previous: $323B+10.8%
Capital Expenditures

-$891K

Previous: $1.15M-177.5%
Net Income

$6.02M

Previous: $20M-69.9%
Operating Income

$8.96M

Previous: $27.5M-67.5%

Revenue & EPS history

Universal Insurance · Revenue · Quarterly

$385M

Q4 2024+2.5%vs Q4 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Universal Insurance · $16.1M total across 3 segments · Q2 2020

  • Commission Revenue
    $7.76M
  • Policy Fees
    $6.55M
  • Other Revenue
    $1.81M

Forward guidance

The company is actively working on its 2025 reinsurance program, with a significant portion already placed, and has secured additional multi-year capacity for the 2026 hurricane season. They also noted progress in claims trends and a modest rate decrease filing in Florida.

Tailwinds

  • 92% of the first event catastrophe tower for the 2025 reinsurance program is already placed.
  • Significant additional multi-year capacity secured for the 2026 hurricane season.
  • Continued progress observed in claims trends within the Florida book.
  • Filed a modest rate decrease in Florida, correlated with December 2022 legislative changes.
  • Commitment to helping customers restore their lives after hurricanes.

Headwinds

  • Experienced three hurricanes in 2024 (Debbie, Helene, and Milton).
  • Lower underwriting income contributed to the decrease in adjusted net income.
  • Higher net combined ratio primarily reflects higher weather losses, partly from Hurricane Milton.
  • Increased net expense ratio driven by higher policy acquisition costs and other operating costs.
  • The company did not provide specific financial guidance for future periods in this report.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.5%

Avg return

Earnings day

+3.4%

Avg return

5 days after

+4.4%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+22.0%

Q4 2023

Best reaction

-21.4%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.0%-5.3%-10.3%
Q4 2025+2.8%+13.9%+5.5%
Q3 2025+11.3%+9.8%+16.5%
Q2 2025-3.1%+0.5%+4.2%
Q1 2025+1.0%+3.6%+12.4%
Q4 2024+9.3%+8.5%+13.8%
Q3 2024-2.0%+2.4%+16.6%
Q2 2024-1.6%+4.0%+8.4%
Q1 2024-3.6%-3.7%-3.4%
Q4 2023+22.0%+18.6%+14.2%
Q3 2023-0.7%+10.3%+18.5%
Q2 2023-5.2%-2.8%-18.7%
Q1 2023-17.0%-13.1%-19.0%
Q4 2022+21.5%+56.1%+47.4%
Q3 2022+1.9%+5.4%+12.8%
Q2 2022+6.8%+6.5%+7.1%
Q1 2022+4.1%+4.2%+5.7%
Q4 2021-3.1%-25.8%-29.0%
Q3 2021+7.6%+8.5%+13.4%
Q2 2021+5.7%+4.9%+9.4%
Q1 2021+2.1%+6.3%+3.8%
Q4 2020+5.2%+3.7%+6.0%
Q3 2020-21.4%-11.6%+4.4%
Q2 2020+2.8%+3.2%+9.9%
Q1 2020+4.4%+1.3%+6.8%
Q4 2019-0.7%+8.3%-22.6%
Q3 2019-7.3%-5.8%-0.5%
Q2 2019-0.4%+5.3%-0.6%
Q1 2019+0.0%-1.1%-5.8%
Q4 2018-15.4%-18.7%-20.0%
Q3 2018-8.3%-8.6%-7.3%
Q2 2018+11.4%+17.5%+20.3%
Q1 2018+3.5%+2.0%+10.3%
Q4 2017+6.9%+3.4%+8.6%
Q3 2017+7.9%+8.5%+10.9%
Q2 2017+0.6%+2.8%-4.2%
Q1 2017+13.8%+13.8%+8.7%
Q4 2016+4.8%+4.2%-8.6%
Q3 2016-5.0%-7.2%+15.6%
Q2 2016+5.4%+3.3%+15.9%
Q1 2016-1.4%
Q4 2015+5.9%
Q3 2015-12.0%
Q2 2015+8.5%
Q1 2015+3.9%
Q4 2014+11.5%
Q3 2014+13.5%
Q2 2014+4.4%
Q1 2014-14.4%
Q4 2013+5.4%
Q3 2013+0.5%
Q2 2013+6.3%
Q1 2013+4.4%
Q4 2012+4.0%
Q3 2012+3.4%
Q2 2012+1.5%
Q1 2011-0.3%
Q1 2012+2.1%
Q4 2011-11.9%
Q4 2009-11.9%
Q3 2010-10.9%
Q3 2011-10.9%
Q2 2010-10.2%
Q4 2010-10.2%
Q2 2011-10.2%

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