Universal Insurance Q3 profit rises on improved underwriting, investment income
UVE•Universal Insurance reported Q3 revenue of $439.32 million, up 9.6% year over year, and net income of $52.51 million. Adjusted EPS rose 41.9%, with the company citing improved underwriting and higher investment income.
1. Quarterly results
Universal Insurance reported Q3 revenue of $439.32 million, compared with an analyst consensus estimate of $386.13 million. Core revenue was $444.31 million, adjusted net income was $56.27 million and net income was $52.51 million. Adjusted EPS rose 41.9% year over year.
2. Growth and claims
The company said higher net premiums earned and increased net investment income drove core revenue growth. A lower ceded premium ratio under its new reinsurance program also contributed to higher net premiums earned. Policies in force grew 8%, and the company said claims activity from Hurricane Isaias had been less significant than anticipated. It repurchased $7.4 million in shares during the quarter.
