Universal Insurance Holdings, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $35.1 million, slightly down from $35.4 million in the same period last year. The diluted earnings per share remained stable at $1.21. The company experienced a 3.2% increase in direct premiums written, totaling $596.7 million, driven by a significant 25.4% rise in premiums from states outside Florida, although premiums in Florida decreased by 2.5%. The net investment income rose by 17.7% to $17.3 million, attributed to higher portfolio reinvestment rates and an increase in income-earning assets.

In comparison to the previous fiscal period, Universal Insurance's total revenues for the quarter increased by 5.2% to $400.1 million, supported by growth in commission revenue, which surged by 35.7% to $15.9 million. However, the combined ratio, a key measure of underwriting profitability, increased to 97.8% from 95.9% year-over-year, indicating a slight decline in operational efficiency. The company also reported a decrease in unpaid losses and loss adjustment expenses, which fell to $765.9 million from $959.3 million at the end of 2024, primarily due to the settlement of claims from Hurricane Ian and other prior events.

Strategically, Universal Insurance has continued to expand its operations, now offering homeowners insurance in 19 states, with Florida representing 74.6% of its direct premiums written. The company has also successfully secured a catastrophe reinsurance program for 2025-2026, increasing its coverage to $2.526 billion, which reflects a $110 million increase over the previous year. Additionally, the company entered into a new $50 million unsecured revolving credit line with JP Morgan Chase Bank, enhancing its liquidity position.

Operationally, the company reported a total of 872,343 policies in force as of June 30, 2025, marking a 4.7% increase from the previous year. The increase in policies is indicative of the company's successful risk management and marketing strategies. However, the net loss ratio increased to 72.3% from 70.6%, reflecting higher reinsurance costs and increased claims. The company continues to monitor the impacts of legislative reforms in Florida, which are expected to improve the claims environment over time.

Looking ahead, Universal Insurance Holdings remains cautiously optimistic about its growth trajectory, focusing on risk selection and improving diversification. The company anticipates that the benefits of recent legislative reforms in Florida will gradually enhance its competitive position. However, it acknowledges the potential for market volatility and the need to adapt to changing economic conditions, particularly regarding inflation and interest rates, which could impact its operational and financial performance.

About UNIVERSAL INSURANCE HOLDINGS, INC.

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