Universal Insurance Holdings reported net income to common shareholders in the first quarter of 2026 of $54.3 million, a year-over-year increase of 31%, driven by a lower net loss rate and higher net investment income.
Universal’s underwriting performance also improved significantly in the first quarter of this year, with the net loss rate falling to 63.9%, an improvement of 6.6 percentage points from 70.5% in the same period last year.
Although the expense ratio increased slightly to 25.8% from 24.5%, this helped push the combined ratio to 89.7% in the first quarter of 2026, down from 95.0% in the same period last year.
Improved underwriting performance in the first quarter of 2026, coupled with higher net investment income, helped strengthen profitability, with operating income rising 28.4% to $73.3 million, while operating margin expanded to 18.6% from 14.5%.
Total revenue in the first quarter of this year was essentially stable at $393.6 million, compared with $394.9 million in the first quarter of 2025.
Universal also revealed that premium growth across the entire portfolio remained stable in the first quarter of 2026, with direct written premiums increasing by 8.5% to US$506.5 million, direct premium income increasing by 3.5% to US$531.4 million, effective premiums increasing by 4.0% to US$2.18 billion, and in-force policies increasing by 5.8% year-on-year.
Net premiums remained essentially unchanged at $356.9 million, while the ceded premium ratio increased from 30.7% to 32.8%, reflecting the continued use of reinsurance to manage risk.
Stephen J. Donaghy, the company’s chief executive, added: “We are off to an excellent start to the year, with an annualized return on our common stock of 38.2%. We are delivering strong top-line results and operating in multiple states, including Florida.”
“In addition, I am pleased to announce that our insurance entities have completed reinsurance renewals for 2026-2027 as our programs are now fully supported and insured. During the 2026 renewal process, we also secured $352 million in additional multi-year coverage to carry us through the 2027-2028 treaty period.”
