Universal Insurance Reports Q4 EPS of $2.17 and 87.5% Combined Ratio
Universal Insurance reported Q4 adjusted EPS of $2.17 from $0.25 a year earlier, achieving a net combined ratio of 87.5% and 4.3% growth in net premiums earned to $363.4M. Management highlighted strongest-ever reserves, secured 2026 reinsurance and 2027 capacity, repurchased 210K shares for $6.9M, approved $20M buyback, declared $0.16 dividend.
1. Strong Q4 Financial Results
Universal Insurance delivered adjusted diluted EPS of $2.17 in Q4 2025 versus $0.25 a year earlier, driven by lower net loss ratio and higher net premiums earned of $363.4M, while achieving a net combined ratio of 87.5% on core revenue of $403.6M.
2. Underwriting Performance and Reserves
The net loss ratio improved to 61.3% (down 21 points) and net expense ratio rose slightly to 26.2%, while management described reserves as the strongest in company history, citing Florida legislative reforms as a key stabilizing factor.
3. Reinsurance Placement for 2026 and 2027
The company is well underway with its 2026 reinsurance program, placing substantial first-event catastrophe coverage and securing meaningful multiyear capacity for the 2027 hurricane season to mitigate risk exposure.
4. Capital Return Initiatives
Universal repurchased approximately 210,000 shares for $6.9M in Q4, received board approval for a new $20M buyback program through January 2028, and declared a quarterly dividend of $0.16 per share payable March 13, 2026.