UVE · Universal Insurance Holdings, Inc.

Universal Insurance Holdings delivered a strong second quarter, with diluted GAAP EPS surging 68.6% to $2.04, driven by a 7.5-point improvement in the net loss ratio to 64.8%. The combined ratio improved 6.2 points to 91.6%, reflecting favorable claims and litigation trends attributed to Florida's legislative reforms. Management noted that litigation inventory has returned to pre-crisis levels and reserve margins provide a buffer. Revenue grew 6.7% to $427.0 million, supported by 4.1% growth in direct premiums written and higher net investment income. The ceded premium ratio declined slightly to 30.8% due to a new reinsurance program. On a non-GAAP basis, adjusted diluted EPS was $1.84, up 49.6% year-over-year. The company continued its capital return program, repurchasing $4.5 million in shares and declaring a $0.16 quarterly dividend. Book value per share increased 39.7% to $22.89. The strong underwriting performance and capital position position the company well for sustained profitable growth.