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Sep 30, 2024
Universal Insurance Q3 2024 Earnings Report
Reported third quarter results with increased direct premiums written and expansion into Wisconsin.
Key Takeaways
Universal Insurance Holdings reported a net loss of $16.2 million and an adjusted net loss of $20.8 million for Q3 2024. Direct premiums written increased by 8.0% year-over-year, driven by growth in Florida and other states. The company opened for business in Wisconsin, marking its 19th state of operation.
Loss per common share was $0.57; adjusted loss per common share was $0.73.
Direct premiums written increased by 8.0% year-over-year to $574.4 million.
Book value per share rose by 37.0% year-over-year to $14.15.
Returned $9.1 million to shareholders, including share repurchases and dividends.
Revenue by Geographic Location
Forward Guidance
The company expects a smaller financial impact from weather in the fourth quarter, inclusive of Hurricane Milton, due to lower consolidated retention for subsequent events. Non-catastrophe underwriting trends continue to improve.
Positive Outlook
- Expects smaller financial impact from weather in Q4.
- Non-catastrophe underwriting trends continue to improve.
- Opened for business in Wisconsin, diversifying the book of business.
- Expanding to new markets and growing addressable market.
- Substantial reinsurance protection provides financial resilience.
Challenges Ahead
- Recent disasters, including Hurricanes Debbie and Helene, impacted Q3 results.
- Higher adjusted net loss mostly stems from lower underwriting income.
- Higher adjusted operating loss margin primarily reflects a higher net combined ratio.
- Increase in net loss ratio primarily reflects higher weather losses.
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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