Universal Insurance (UVE) investor relations material

Executive summary

• Achieved a 38.5% annualized adjusted return on common equity in Q1 2026, with diluted GAAP EPS of $1.88 and adjusted EPS of $2.00, reflecting a strong start to the year.

• Book value per share increased 39.9% year-over-year to $20.95; adjusted book value per share rose 32.2% to $22.19.

• Direct premiums written rose 8.5% to $506.5 million, with growth in both Florida (4.9%) and other states (18.3%).

• Completed 2026-2027 reinsurance renewal, securing full program support and $352 million in additional multi-year coverage through 2027-2028.

• Net income available to common stockholders rose to $54.3 million from $41.4 million year-over-year; adjusted net income was $57.8 million, up from $41.4 million.

Financial highlights

• Adjusted diluted EPS was $2.00, up from $1.44 in the prior year quarter, driven by a lower net loss ratio and higher net investment income.

• Core revenue reached $398.2 million, up 0.8% year-over-year.

• Net premiums earned were $356.9 million, up 0.3% year-over-year.

• Net investment income increased to $19.5 million from $16.1 million year-over-year.

• Operating income margin improved to 18.6% from 14.5%; adjusted operating income margin rose to 19.6% from 14.5%.

Key financial ratios and metrics

• Net combined ratio was 89.7%, down 5.3 points from the prior year quarter.

• Net loss ratio improved to 63.9%, down 6.6 points year-over-year.

• Net expense ratio increased to 25.8%, up 1.3 points, mainly due to higher ceded premium ratio and policy acquisition costs outside Florida.

• Ceded premium ratio decreased to 31.8% in FY25, indicating more risk retained.

• Net investment income for FY25 was $70.6 million, with a portfolio focused on capital preservation and liquidity.