Universal Insurance Revenue Climbs 9.6% as Combined Ratio Improves

Universal Insurance Holdings' third-quarter revenue rose 9.6% year over year to $439.319 million as the insurer's net combined ratio improved and its policy count grew in the quarter ended Sept. 30.

Revenue increased from $400.981 million in the year-earlier quarter. Net income available to common stockholders was $52.506 million, compared with $39.827 million a year earlier.

Adjusted diluted earnings per share reached $1.93, up from $1.36. Diluted GAAP earnings per share were $1.80, compared with $1.38. Universal's adjusted EPS is a company-defined non-GAAP measure that excludes net realized and unrealized investment gains or losses.

The net combined ratio improved to 91.0% from 96.4%, a 5.4 percentage-point decline. The net loss ratio fell 5.6 points to 64.6%, while the net expense ratio edged up 0.2 points to 26.4%. Those two ratios together totaled 91.0% for the quarter.

Universal tied much of the lower ceded premium ratio to its reinsurance program, which began June 1. The ratio fell to 27.6% from 32.7%. Net premiums earned increased 12.1% to $403.196 million.

Direct premiums written rose 2.7% to $608.878 million. Outside Florida, they increased 18.5% to $194.474 million; in Florida, they declined 3.3% to $414.404 million. The figures show growth outside the company's largest stated market even as premiums there fell.

Policies in force totaled 953,611 at quarter-end, up 7.9% from 883,888 a year earlier. Chief Executive Officer Stephen J. Donaghy said, “Our net loss ratio continues to improve and new business trends are solid, including 8% growth in policies in force.”

Universal's insurance subsidiaries offer personal residential coverage, including homeowners, renters and condominium unit owners' policies.