Highlights

  • Universal shows 89.54% basic EPS growth, a P/E of 6.09 and PEG of 0.00.
  • Third quarter net income to common was $52,506 thousand; diluted EPS was $1.80 against $1.38.
  • Net combined ratio was 91.0% against 96.4%; policies in force reached 953,611.
  • Universal repurchased about 174 thousand shares for $7.4 million; $1.1 million of authorization remains.

Basic earnings per share growth of 89.54% over one year, a trailing twelve-month P/E of 6.09 and a PEG of 0.00 on an expected basis define Universal Insurance Holdings (NYSE:UVE) as an undervalued growth stock, with shares trading at USD 46.85 on October 28, 2026, down 0.76%. In its latest disclosures, the homeowners insurance holding company said its new reinsurance program incepted on June 1, declared a quarterly dividend of 16 cents per share on July 8, and reported third quarter 2026 net income available to common stockholders of $52,506 thousand on October 22.

Universal Insurance Holdings is based in Fort Lauderdale, Florida, and incorporated in Delaware. It describes itself as a holding company providing property and casualty insurance and value-added insurance services. The company develops, markets and writes insurance products in the personal residential homeowners lines of business and performs substantially all other insurance-related services for its primary insurance entities, including risk management, claims management and distribution. It sells through appointed independent agents and direct online channels.

Growth: Third Quarter Earnings, Premiums and Policies

Net income available to common stockholders was $52,506 thousand in the third quarter against $39,827 thousand a year earlier, and $165,980 thousand for the nine months against $116,354 thousand. Basic earnings per common share were $1.90 against $1.43, and diluted earnings per common share were $1.80 against $1.38. Nine-month basic earnings per share were $6.03 against $4.16, and diluted were $5.73 against $4.03. Adjusted diluted earnings per share, a non-GAAP measure, were $1.93 against $1.36.

Total revenues were $439,319 thousand, up 9.6%. Net premiums earned were $403.2 million, up 12.1%, and net investment income was $21.5 million against $18.3 million.

Direct premiums written were $608.9 million, up 2.7%, with 18.5% growth in other states and a 3.3% decrease in Florida. Policies in force were 953,611 against 883,888. The net combined ratio was 91.0% against 96.4%, with a net loss ratio of 64.6% against 70.2%.

Valuation: P/E of 6.09, PEG of 0.00 and Return on Equity

The P/E ratio of 6.09 is measured on trailing twelve-month earnings, and the PEG ratio of 0.00 on an expected basis. Annualized return on average common equity was 32.7% for the third quarter against 33.4%, and 37.0% for the nine months against 35.7%.

Book value per share was $23.37 against $17.65 a year earlier. Adjusted book value per share, a non-GAAP measure, was $25.90 against $18.74. On the third quarter call, Chief Executive Officer Stephen Donaghy attributed the return on common equity to underwriting and revenue performance.

Capital Returns, Reinsurance and Balance Sheet

Universal repurchased approximately 174 thousand shares at an aggregate cost of $7.4 million in the third quarter, and approximately $1.1 million remained under the current repurchase authorization. Chief Financial Officer Frank Wilcox said the repurchase plan will go to the board for discussion. The quarterly dividend of 16 cents per share was payable on August 7, 2026 to shareholders as of July 31, 2026, and dividends declared were $0.48 per share for the nine months.

Wilcox said the first priority in capital management is ensuring the insurance entities are adequately capitalized for policyholder protection. Stockholders' equity was $646,036 thousand at September 30, 2026 against $551,035 thousand at December 31, 2025, and cash and cash equivalents were $569,461 thousand against $408,868 thousand. Debt, net of issuance costs, was $97,336 thousand. The ceded premium ratio was 27.6% against 32.7%, which the company attributed primarily to its new reinsurance program.

Disclosed Risks and Outlook after Hurricane Isaias

Florida direct premiums written were $414,404 thousand against $428,635 thousand. The net expense ratio was 26.4% against 26.2%, which the company attributed to higher policy acquisition costs from growth outside Florida and higher other operating costs. Commissions, policy fees and other revenue were $19.6 million, down 10.8%.

Donaghy said Hurricane Isaias made landfall near Destin in the western Florida Panhandle as a Category 2 hurricane after quarter end, and that the company views the storm as manageable based on claims activity to date. The company listed exposure to catastrophic events and severe weather among the factors that could cause results to differ.

The release and call did not state numeric financial guidance. Management said it feels confident about its organic growth model. The company said its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 is forthcoming.