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Jun 30, 2023
Universal Insurance Q2 2023 Earnings Report
Reported solid results with a 25.3% annualized adjusted return on common equity and 85.1% adjusted diluted EPS growth year-over-year.
Key Takeaways
Universal Insurance Holdings reported solid second quarter results, driven by favorable claims and litigation trends, rate-driven premium growth, and an improving spread of risk across its geographic footprint. The company's annualized adjusted return on common equity was 25.3%, and adjusted diluted EPS grew by 85.1% year-over-year.
Diluted earnings per common share were $0.93; diluted adjusted earnings per common share were $0.87.
Annualized return on average common equity (ROCE) was 34.8%, and annualized adjusted ROCE was 25.3%.
Direct premiums written totaled $547.1 million, up 2.7% from the prior year quarter.
The net combined ratio was 99.1%, down 1.8 points from the prior year quarter.
Revenue by Geographic Location
Forward Guidance
The company is encouraged by favorable claims and litigation trends emerging from recent legislative reforms and anticipates continued benefits from rate-driven premium growth and geographic diversification.
Positive Outlook
- Favorable claims trends are beginning to emerge.
- Litigation trends are beginning to emerge.
- Recent legislative reforms are contributing to positive trends.
- Rate-driven premium growth is expected to continue.
- An improving spread of risk across the geographic footprint is anticipated.
Challenges Ahead
- The report does not contain any negative forward guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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