Universal Insurance Holdings reported net income available to common shareholders of $59.2 million in the second quarter of 2026, an increase of 69% from $35.1 million in the same period last year.
For the quarter, adjusted net income to common shareholders was $53.4 million, compared with $35.7 million in the second quarter of 2025.
Universal attributed the increase in common stockholder adjusted net income to lower net loss margin, higher net premium income and increased net investment income.
Total revenue was US$427 million, an increase of 6.7% from US$400.1 million. Core revenue was $419.4 million, an increase of 4.6% from $400.9 million.
Direct written premiums increased 4.1% to $621.3 million from $596.7 million, while direct premiums earned also increased 4.1% to $544.8 million from $523.4 million.
Net premium income increased 4.7% from US$360.2 million to US$377.3 million.
The combined ratio improved to 91.6% in 2Q26 compared to 97.8% in 2Q25. The loss ratio improved from 72.3% to 64.8%, reflecting improved performance in the current accident year, while the expense ratio increased slightly from 25.5% to 26.8%.
Net investment income totaled $20.2 million, up from $17.3 million in the same period last year, due to fixed income reinvestment yields and an increase in investment assets.
Stephen J. Donaghy, CEO of Universal Insurance Holdings, said: “We delivered a very strong annualized return on our common stock of 38.8% during the quarter, driven by solid underwriting and revenue performance.
“Notably, net loss margin improved 7.5 percentage points year over year, driven by favorable claims and litigation trends, and we expect full year non-catastrophe margins to benefit. Strong retention and new business generation led to direct premium growth of 4.1%, including growth in Florida and our interstate operations.
“The favorable claims and litigation trends in our results are a direct product of Florida’s legislative reforms. Thanks to the Governor, Legislature and OIR As a result, the Florida homeowners insurance market has stabilized and is now operating more similarly to the rest of the country. Our litigation inventory has returned to pre-Florida litigation crisis levels and the impact of our pre-reform claims practices has passed. As a result, we believe our total reserves provide meaningful margins above expected ultimate losses. Combined with more favorable conditions for reinsurance rates and our ability to underwrite premiums at a strong organic new business pipeline, we believe we are well positioned to achieve continued profitable growth.”
