Universal’s Q3’25 profit surges on lower losses, stronger Florida market

Universal Insurance Holdings has disclosed a Q3 2025 net income available to common stockholders of $39.8 million, a sharp turnaround from a net loss of $16.2 million in Q3 2024, driven by a lower net loss ratio, higher net premiums earned, and increased net investment income.

With lower losses in Q3 2025, Universal’s net combined ratio was 96.4%, down a massive 20.5 points compared to Q3 2024.

The firm said that the decrease reflects a lower net loss ratio, partly offset by a higher net expense ratio, which was up 1 point from 25.2% in Q3 2024 due to a higher ceded premium ratio and higher policy acquisition costs associated with growth outside Florida.

Universal’s Q3 2025 revenue stood at $401.0 million, up 3.5% from the same period of 2024.

Meanwhile, direct premiums written were $592.8 million in Q3 2025, up 3.2% from the prior year quarter.

The firm explained that the increase in direct premiums written stemmed from a 22.2% growth in other states, partly offset by a 2.6% decrease in Florida.

“Overall growth mostly reflects higher policies in force, higher rates and inflation adjustments across our multi-state footprint,” Universal added.

The firm’s net investment income in Q3 2025 was $18.3 million, up from $15.4 million in Q3 2024, thanks to higher fixed income reinvestment yields and higher invested assets.

Stephen J. Donaghy, Chief Executive Officer of Universal, commented, “It was a solid quarter, with a 30.6% adjusted return on common equity. Our unique, organic business model allows us to consistently generate deep double-digit ROEs, making us particularly well-positioned to succeed in the much-improved FL market.

“Additionally, we commenced our annual actuarial review process considerably earlier this year, and our findings are very encouraging. As we’ve discussed in recent periods, our reserving process has become more conservative, with a focus on protecting and increasing the resilience of our balance sheet.

“When we look at our current and prior accident year reserves in the aggregate, we believe we’re in a very strong position, further increasing our optimism as we turn a new chapter in the revamped FL market.”