Universal Insurance (UVE) Q4 2024 earnings summary

Executive summary

• Q4 2024 diluted GAAP EPS was $0.21 and adjusted EPS was $0.25, both down year-over-year, with annualized ROCE at 6.2% and adjusted ROCE at 6.5%.

• Direct premiums written grew 8.8% year-over-year to $470.9M, with strong growth outside Florida.

• Book value per share increased 12.7% to $13.28; adjusted book value per share rose 8.3% to $15.53.

• Total capital returned to shareholders was $16.2M, including $7.7M in share repurchases and both regular and special dividends.

• Three hurricanes, including Hurricane Milton, impacted operations and increased claims activity in 2024.

Financial highlights

• Core revenue for Q4 was $386.4M, up 5.7% year-over-year; total revenues were $384.8M, up 2.5%.

• Net premiums earned rose 3.9% to $348.4M; net investment income for FY24 was $59.1M, up from $48.4M in FY23.

• Direct premiums written for FY24 totaled ~$2.1B.

• Policies in force grew to 855,526, up 5.6% year-over-year, with operations in 19 states.

• Operating income margin declined to 2.3% from 7.3% year-over-year; adjusted margin fell to 2.7% from 4.9%.

Outlook and guidance

• Focus remains on disciplined growth, earnings stability, and maintaining a resilient balance sheet.

• Modest rate decrease filed in Florida, reflecting improved claims trends and legislative changes.

• 92% of 2025 reinsurance program's first event catastrophe tower already placed; multi-year capacity secured for 2026.

• Strategic priorities include customer service, continuous improvement, and opportunistic geographic expansion.