Universal Insurance Holdings, Inc. reported its financial results for the first quarter of 2026, showing a net income of $54.3 million, a 31% increase from $41.4 million in the same period last year. This translates to diluted earnings per share of $1.88, up from $1.44 in 2025. The company's total revenues for the quarter were $393.6 million, slightly down from $394.9 million in the previous year, primarily due to a decrease in commission revenue and other income, despite an increase in net investment income, which rose by 21.3% to $19.5 million.
The company experienced a significant increase in direct premiums written, which rose by $39.5 million, or 8.5%, to $506.5 million. This growth was driven by a 4.9% increase in Florida and an 18.3% increase in other states. The total number of policies in force increased by 50,489, or 5.8%, with Florida contributing 16,282 policies, reflecting the company's strategic expansion efforts and new product offerings. The combined ratio improved to 89.7%, down from 95.0% in the prior year, indicating enhanced underwriting profitability.
In terms of operational metrics, the company reported a decrease in losses and loss adjustment expenses (LAE) to $228.1 million, resulting in a net loss ratio of 63.9%, down from 70.5% in 2025. The reduction in LAE was attributed to improved claims management and the absence of catastrophic events during the quarter. The company also noted a decrease in unearned premiums, reflecting the seasonal nature of its business, while cash and cash equivalents increased significantly to $595.8 million, up 45.7% from the previous quarter.
Strategically, Universal Insurance has resumed issuing homeowners policies in Florida, reversing previous trends, and has implemented a 5.1% average rate decrease in the state while increasing rates in other markets. The company has also initiated a share repurchase program, authorizing the repurchase of up to $20 million of its common stock, with $7.1 million spent in the first quarter. Looking ahead, the company remains focused on optimizing risk selection and expanding its market presence, particularly in Florida, while navigating the evolving regulatory landscape and competitive environment.
About UNIVERSAL INSURANCE HOLDINGS, INC.
Universal Insurance Holdings, Inc. is a holding company specializing in property and casualty insurance, primarily in residential homeowners lines. It develops, markets, and underwrites policies through independent agents and digital channels, mainly in Florida and select states. The company emphasizes disciplined underwriting, risk management, and reinsurance to mitigate catastrophe risks, aiming to provide reliable coverage, excellent customer service, and strong shareholder returns in a highly competitive, regulated market.
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