Financial Data and Key Metrics Changes - The company reported an adjusted return on common equity of 29.4% for the quarter, indicating strong performance [4] - Adjusted diluted earnings per common share increased to $1.23 from $1.18 in the prior year quarter, primarily due to higher direct premiums earned, net investment income, and commission revenue [4][5] - Core revenue reached $400.9 million, up 5.7% year over year, driven by higher net premiums earned and net investment income [5] - Direct premiums written were $596.7 million, a 3.2% increase from the prior year quarter, with significant growth in other states [5] - The net combined ratio was 97.8%, up 1.9 points from the prior year quarter, reflecting higher net loss and expense ratios [6] Business Line Data and Key Metrics Changes - Direct premiums earned were $523.4 million, up 6.7% from the prior year quarter, reflecting growth in direct premiums written [6] - Net premiums earned increased to $360.2 million, a 4.4% rise year over year, primarily due to higher direct premiums earned [6] - The net loss ratio was 72.3%, up 1.7 points compared to the prior year quarter, mainly due to a higher ceded premium ratio [7] - The net expense ratio was 25.5%, up 0.2 points from the prior year quarter, driven by higher ceded premium ratio and policy acquisition costs [7] Market Data and Key Metrics Changes - The company experienced a 25.4% growth in direct premiums written in states outside Florida, while Florida saw a 2.5% decrease [5] - The competitive environment in Florida has seen an increase in competitors, but the company does not perceive it as significantly more competitive than previous quarters [14] Company Strategy and Development Direction - The company is optimistic about favorable underwriting trends in the Florida market and has opened additional territories in the state [4][14] - The management emphasizes a focus on profitability rather than competition, leveraging 25 years of experience in Florida [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the Florida market's improvement and the company's strategic positioning [4] - The company noted that the cost of the new reinsurance program is not significantly different from previous periods, indicating stability in the market [20] Other Important Information - The company repurchased approximately 287,000 shares at a cost of $7.4 million, with $15.2 million remaining in the share repurchase authorization program [8] - A quarterly cash dividend of $0.16 per common share was declared, payable on August 8, 2025 [8] Q&A Session Summary Question: Can you provide details on the reinsurance ceding change? - Management explained that the comparison involves different reinsurance programs, with changes in structure affecting costs [10][11] Question: What is the company's perspective on capital and share buybacks? - Management stated that they will continue to purchase shares when they believe they are undervalued [12] Question: Is the market more competitive than before? - Management indicated that while there are more competitors, they do not see a significant increase in competition across Florida [14] Question: Was there any net prior year development or claims handling benefits in the quarter? - Management confirmed that there were negligible prior year developments [18][19] Question: Can you discuss the cost of the new reinsurance program? - Management noted that the cost is not significantly different from previous periods, which is a positive sign for the Florida marketplace [20]

Forward-looking statements This presentation may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "will," "plan," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include commentary on plans, products and lines of business, marketing arrangements, reinsurance programs and other business developments and assumption ...

Universal Insurance Holdings (UVE) came out with quarterly earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.09 per share. This compares to earnings of $1.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +12.84%. A quarter ago, it was expected that this property and casualty insurance company would post earnings of $1.12 per share when it actually produced earnings of $1.44, delivering a surprise of +28 ...

[Second Quarter 2025 Financial Highlights](index=1&type=section&id=Universal%20Reports%20Second%20Quarter%202025%20Results) The company reported strong Q2 2025 results, with **adjusted ROCE at 29.4%**, **adjusted EPS up 4.2%**, and **book value per share increasing 18.9%** - CEO Stephen J. Donaghy highlighted a strong **29.4% adjusted return on common equity** and noted favorable underwriting trends, expressing optimism for the future as the Florida market improves[3](index=3&type=chunk) Q2 2025 Key Performance Indicators | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Diluted GAAP EPS | $1.21 | 0.0% | | Diluted Adjusted EPS | $1.23 | +4.2% | | Annualized Adjusted ROCE | 29.4% | -1.1 pts | | Direct Premiums Written | $596.7 million | +3.2% | | Book Value Per Share | $16.39 | +18.9% | | Adjusted Book Value Per Share | $17.85 | +8.6% | | Total Capital Returned | $12.0 million | N/A | [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) This section analyzes the company's Q2 2025 financial results, focusing on revenue, profitability, and capital deployment strategies [Summary Financial Results](index=2&type=section&id=Summary%20Financial%20Results) For the second quarter of 2025, the company reported stable GAAP EPS at $1.21, while adjusted EPS grew 4.2% to $1.23. Total revenues increased by 5.2% year-over-year. However, underwriting profitability saw a slight decline, with the combined ratio increasing by 1.9 percentage points to 97.8% Q2 2025 vs Q2 2024 Financial Summary ($ in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **GAAP Measures** | | | | | Total Revenues | $400,141 | $380,214 | +5.2% | | Net Income | $35,091 | $35,414 | -0.9% | | Diluted EPS | $1.21 | $1.21 | 0.0% | | **Non-GAAP Measures** | | | | | Core Revenue | $400,922 | $379,170 | +5.7% | | Adjusted Net Income | $35,680 | $34,627 | +3.0% | | Adjusted Diluted EPS | $1.23 | $1.18 | +4.2% | | **Underwriting** | | | | | Direct Premiums Written | $596,720 | $578,267 | +3.2% | | Combined Ratio | 97.8% | 95.9% | +1.9 pts | [Revenue Analysis](index=3&type=section&id=Revenues) Core revenue grew 5.7% to $400.9 million in Q2 2025, driven by higher net premiums earned, a 17.7% increase in net investment income, and a 20.0% rise in commissions and other revenue. Growth in direct premiums written was led by a 25.4% increase in states outside of Florida, which offset a 2.5% decline within Florida. The ceded premium ratio increased, primarily due to replacing state-provided reinsurance with private market coverage - Direct premiums written increased by **3.2% overall**, fueled by a significant **25.4% growth in states outside Florida**, which more than compensated for a **2.5% decrease in Florida premiums**[7](index=7&type=chunk) - The ceded premium ratio rose to **31.2% from 29.7% YoY**, mainly because the company replaced the state-provided Reinsurance to Assist Policyholders (RAP) layer with private market reinsurance[8](index=8&type=chunk) - Net investment income grew to **$17.3 million from $14.7 million** in the prior year quarter, an increase attributed to higher fixed income reinvestment yields and a larger asset base[9](index=9&type=chunk) - Commissions and other revenue increased by **20.0% to $23.5 million**, primarily due to higher reinsurance brokerage commissions from replacing the RAP layer and a catastrophe bond with traditional reinsurance[10](index=10&type=chunk) [Profitability and Margins](index=3&type=section&id=Margins) In Q2 2025, adjusted net income available to common stockholders increased to $35.7 million. However, profitability margins tightened, with the adjusted operating income margin decreasing to 12.2% from 12.8% YoY, primarily due to a higher ceded premium ratio. The net combined ratio deteriorated by 1.9 points to 97.8%, driven by increases in both the net loss ratio and the net expense ratio Net Income Comparison (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income (Common) | $35.1M | $35.4M | -0.9% | | Adjusted Net Income (Common) | $35.7M | $34.6M | +3.0% | Underwriting Ratios Comparison (Q2 2025 vs Q2 2024) | Ratio | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Loss Ratio | 72.3% | 70.6% | +1.7 pts | | Net Expense Ratio | 25.5% | 25.3% | +0.2 pts | | Net Combined Ratio | 97.8% | 95.9% | +1.9 pts | - The adjusted operating income margin declined to **12.2% from 12.8%** in the prior year quarter, primarily reflecting the higher ceded premium ratio, which was partly offset by increased net investment income and commission revenue[11](index=11&type=chunk) [Capital Deployment](index=4&type=section&id=Capital%20Deployment) During the second quarter of 2025, the company returned $12.0 million to shareholders. This included repurchasing approximately 287,000 shares for $7.4 million and declaring a quarterly cash dividend of $0.16 per share - The company executed share repurchases totaling **$7.4 million** for approximately **287,000 shares**, with **$15.2 million** remaining under the current authorization program[14](index=14&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.16 per common share**, payable on August 8, 2025[14](index=14&type=chunk) [Detailed Financial Statements](index=6&type=section&id=Detailed%20Financial%20Statements) This section presents comprehensive financial statements, including balance sheets, income statements, per share data, and geographic performance [Consolidated Balance Sheets](index=6&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS%20(UNAUDITED)) As of June 30, 2025, the company's total assets increased to $3.28 billion from $2.84 billion at year-end 2024. This was driven by growth in invested assets and prepaid reinsurance premiums. Total liabilities also rose to $2.82 billion, while total stockholders' equity grew to $457.8 million from $373.3 million over the same period Key Balance Sheet Items ($ in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Invested Assets | $1,500,006 | $1,371,276 | | Total Assets | $3,275,818 | $2,841,861 | | Total Liabilities | $2,818,010 | $2,468,611 | | Total Stockholders' Equity | $457,808 | $373,250 | [Consolidated Statements of Income](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(UNAUDITED)) For the three months ended June 30, 2025, total revenues were $400.1 million, a 5.2% increase year-over-year. Net income remained relatively flat at $35.1 million compared to $35.4 million in the prior year quarter. For the six-month period, net income grew 10.8% to $76.5 million Q2 2025 Income Statement Highlights ($ in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Premiums Earned | $360,193 | $344,958 | | Total Revenues | $400,141 | $380,214 | | Total Operating Costs and Expenses | $352,147 | $330,686 | | Income Before Income Tax | $46,386 | $47,905 | | Net Income | $35,093 | $35,416 | [Share and Per Share Information](index=8&type=section&id=SHARE%20AND%20PER%20SHARE%20INFORMATION) Diluted earnings per common share for Q2 2025 were $1.21, unchanged from the prior year quarter. The company declared a cash dividend of $0.16 per share. Book value per share saw significant growth, increasing 18.9% year-over-year to $16.39 Q2 Per Share Data Comparison | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Diluted EPS | $1.21 | $1.21 | | Cash Dividend Declared | $0.16 | $0.16 | | Book Value Per Share | $16.39 | $13.79 | [Supplementary Information](index=10&type=section&id=SUPPLEMENTARY%20INFORMATION) The supplementary data reveals a strategic geographic shift. While direct premiums written in Florida decreased by 2.5% in Q2 2025, they grew 25.4% in other states. Similarly, policies in force declined in Florida but increased significantly in other states, reflecting diversification efforts Q2 2025 Direct Premiums Written by Geography ($ in thousands) | Region | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Florida | $449,715 | $461,018 | -2.5% | | Other States | $147,005 | $117,249 | +25.4% | | **Total** | **$596,720** | **$578,267** | **+3.2%** | Policies in Force by Geography (as of June 30) | Region | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Florida | 559,171 | 572,860 | -2.4% | | Other States | 313,172 | 260,573 | +20.2% | | **Total** | **872,343** | **833,433** | **+4.7%** | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20MEASURES) This section reconciles GAAP to non-GAAP measures, including core revenue, adjusted net income, and book value, for clearer performance evaluation [Reconciliation of Revenue and Operating Income](index=11&type=section&id=Reconciliation%20of%20Revenue%20and%20Operating%20Income) For Q2 2025, GAAP revenue of $400.1 million was adjusted for net realized and unrealized investment gains/losses to arrive at core revenue of $400.9 million. Similarly, GAAP operating income of $48.0 million was adjusted to $48.8 million on a non-GAAP basis Q2 2025 Revenue and Operating Income Reconciliation ($ in thousands) | Metric | GAAP | Adjustments | Non-GAAP (Adjusted/Core) | | :--- | :--- | :--- | :--- | | Revenue | $400,141 | $781 | $400,922 | | Operating Income | $47,994 | $781 | $48,775 | [Reconciliation of Net Income and EPS](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20and%20EPS) GAAP net income available to common stockholders of $35.1 million for Q2 2025 is reconciled to adjusted net income of $35.7 million by excluding after-tax investment gains and losses. This results in a diluted adjusted EPS of $1.23, compared to the GAAP diluted EPS of $1.21 Q2 2025 Net Income and EPS Reconciliation ($ in thousands, except per share) | Metric | Value | | :--- | :--- | | GAAP NI available to common stockholders | $35,091 | | less: Net realized/unrealized investment gains (pre-tax) | ($781) | | add: Income tax effect | ($192) | | **Adjusted NI available to common stockholders** | **$35,680** | | Diluted GAAP EPS | $1.21 | | **Diluted Adjusted EPS** | **$1.23** | [Reconciliation of Stockholders' Equity and Book Value](index=12&type=section&id=Reconciliation%20of%20Stockholders%27%20Equity%20and%20Book%20Value) As of June 30, 2025, GAAP common stockholders' equity of $457.7 million is adjusted by excluding accumulated other comprehensive loss of ($40.8 million) to arrive at adjusted common stockholders' equity of $498.5 million. This leads to an adjusted book value per share of $17.85, compared to the GAAP book value of $16.39 Equity and Book Value Reconciliation (as of June 30, 2025) | Metric | Value | | :--- | :--- | | GAAP Stockholders' Equity | $457,808 thousand | | Adjusted Common Stockholders' Equity | $498,490 thousand | | Book Value Per Common Share | $16.39 | | Adjusted Book Value Per Common Share | $17.85 | [Reconciliation of ROCE](index=12&type=section&id=Reconciliation%20of%20ROCE) The company's annualized GAAP Return on Common Equity (ROCE) for Q2 2025 was 31.9%. After adjusting both net income and average common equity for investment-related items and AOCI, the annualized adjusted ROCE was 29.4% Q2 2025 ROCE Reconciliation (Annualized) | Metric | Value | | :--- | :--- | | GAAP ROCE | 31.9% | | Adjusted ROCE | 29.4% | [Company and Report Information](index=4&type=section&id=Company%20and%20Report%20Information) This section provides essential company information, including business overview, conference call details, and important financial disclosures [About Universal Insurance Holdings](index=4&type=section&id=About%20Universal) Universal Insurance Holdings, Inc. (NYSE: UVE) is a holding company that provides property and casualty insurance, focusing predominantly on personal residential homeowners lines. The company develops, markets, and writes insurance products in the United States, primarily in Florida, through independent agents and direct online channels - The company's core business is providing property and casualty insurance, with a primary focus on personal residential homeowners lines[16](index=16&type=chunk) - Distribution channels include both appointed independent agents and direct online sales, with a significant presence in Florida[16](index=16&type=chunk) [Conference Call Information](index=4&type=section&id=Conference%20Call%20and%20Webcast) The company will host a conference call and webcast on Friday, July 25, 2025, at 10:00 a.m. ET to discuss the quarterly results. Interested parties can access the webcast on the company's investor relations website - A conference call to discuss Q2 2025 results is scheduled for Friday, July 25, 2025, at 10:00 a.m. ET[18](index=18&type=chunk) [Disclosures](index=4&type=section&id=Disclosures) This report contains non-GAAP financial measures, which management believes are useful for investors to evaluate underlying profitability trends. It also includes forward-looking statements that are subject to inherent risks and uncertainties, and actual results could differ materially - The company uses non-GAAP financial measures to allow investors to evaluate underlying revenue and profitability trends and enhance comparability across periods[17](index=17&type=chunk)[19](index=19&type=chunk) - The press release contains forward-looking statements, which are subject to risks and uncertainties. The company disclaims any obligation to update these statements[20](index=20&type=chunk)

Core Viewpoint - The article focuses on the recent Federal Reserve meeting, where it was decided to maintain interest rates unchanged, primarily due to the unclear impact of Trump's tariff policies on the U.S. economy and a stable job market. The market anticipates three rate cuts of 25 basis points each by the end of the year. Additionally, it highlights three dividend-paying companies for further investor research [5]. Group 1: Tenaris SA - Tenaris SA, a Luxembourg energy company, will distribute a dividend of $1.12 per share to shareholders registered by May 20 [7]. - The company has consistently increased its dividend since 2020, indicating potential for future dividend growth [9]. - Tenaris SA has a solid financial position, supporting its ability to maintain ongoing dividend payments [11]. Group 2: Artisan Partners Asset Management - Artisan Partners Asset Management has a dividend yield of approximately 8%, with its stock price showing signs of recovery [14]. - The ex-dividend date is May 16, with the payment date on May 21, aligning with Tenaris SA [14]. - The company has a dividend payout ratio of 80.33%, with an annualized dividend amount of $3.22 per share, indicating a strong commitment to returning value to shareholders [15]. Group 3: Universal Insurance Holdings - Universal Insurance Holdings has an ex-dividend date of May 9 and will pay dividends on May 16, demonstrating a history of stable dividend payments [18]. - The company's fundamentals are strong, and valuation models suggest a fair value increase of over 20% [21]. - The stock price is projected to test $51, indicating long-term potential for investors [17].

[PART I – FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of Universal Insurance Holdings, Inc. and its subsidiaries for the periods ended March 31, 2025, and December 31, 2024, including balance sheets, income statements, comprehensive income, stockholders' equity, and cash flows, along with detailed notes explaining the nature of operations, significant accounting policies, and specific financial components [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (March 31, 2025 vs. December 31, 2024) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Total invested assets | $1,428,256 | $1,371,276 | | Cash and cash equivalents | $398,184 | $259,441 | | Total assets | $2,714,716 | $2,841,861 | | Total liabilities | $2,292,329 | $2,468,611 | | Total stockholders' equity | $422,387 | $373,250 | [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income (Three Months Ended March 31, 2025 vs. 2024) | Metric (in thousands, except per share) | 2025 | 2024 | | :------------------------------------ | :----------- | :----------- | | Direct premiums written | $467,078 | $446,179 | | Premiums earned, net | $355,721 | $334,025 | | Net investment income | $16,060 | $13,523 | | Total revenues | $394,867 | $367,959 | | Losses and loss adjustment expenses | $250,555 | $240,187 | | General and administrative expenses | $87,244 | $78,666 | | Total operating costs and expenses | $337,799 | $318,853 | | Income before income taxes | $55,456 | $47,484 | | Net income | $41,439 | $33,657 | | Basic earnings per common share | $1.48 | $1.17 | | Diluted earnings per common share | $1.44 | $1.14 | | Cash dividend declared per common share | $0.16 | $0.16 | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income (Three Months Ended March 31, 2025 vs. 2024) | Metric (in thousands) | 2025 | 2024 | | :-------------------- | :----------- | :----------- | | Net income (loss) | $41,439 | $33,657 | | Other comprehensive income (loss), net of taxes | $12,094 | $(2,542) | | Comprehensive income (loss) | $53,533 | $31,115 | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Changes in Stockholders' Equity (Three Months Ended March 31, 2025) | Metric (in thousands) | Balance, Dec 31, 2024 | Net Income (Loss) | Other Comprehensive Income (Loss) | Declaration of Dividends | Balance, Mar 31, 2025 | | :-------------------- | :-------------------- | :---------------- | :-------------------------------- | :----------------------- | :-------------------- | | Total Stockholders' Equity | $373,250 | $41,439 | $12,094 | $(4,491) | $422,387 | Changes in Stockholders' Equity (Three Months Ended March 31, 2024) | Metric (in thousands) | Balance, Dec 31, 2023 | Net Income (Loss) | Other Comprehensive Income (Loss) | Declaration of Dividends | Balance, Mar 31, 2024 | | :-------------------- | :-------------------- | :---------------- | :-------------------------------- | :----------------------- | :-------------------- | | Total Stockholders' Equity | $341,297 | $33,657 | $(2,542) | $(4,762) | $364,664 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Three Months Ended March 31, 2025 vs. 2024) | Metric (in thousands) | 2025 | 2024 | | :-------------------- | :----------- | :----------- | | Net cash provided by (used in) operating activities | $186,769 | $82,916 | | Net cash provided by (used in) investing activities | $(41,548) | $(74,381) | | Net cash provided by (used in) financing activities | $(6,478) | $(9,518) | | Net increase (decrease) during the period | $138,743 | $(983) | | Balance, end of period (Cash & Restricted Cash) | $400,819 | $398,958 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION](index=11&type=section&id=NOTE%201%20-%20NATURE%20OF%20OPERATIONS%20AND%20BASIS%20OF%20PRESENTATION) - Universal Insurance Holdings, Inc. (UVE) is a vertically integrated insurance holding company primarily engaged in property and casualty insurance, offering residential homeowners' insurance in 19 states, with Florida comprising the majority of policies in force. Revenues are generated from premiums, investment returns, brokerage commissions, and policy fees[25](index=25&type=chunk)[26](index=26&type=chunk) - The financial statements are prepared in conformity with U.S. GAAP and SEC rules for interim financial information, relying on management estimates for liabilities such as unpaid losses, loss adjustment expenses, and reinsurance recoveries[27](index=27&type=chunk)[28](index=28&type=chunk)[31](index=31&type=chunk) [NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES](index=11&type=section&id=NOTE%202%20-%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - The Company's significant accounting policies are consistent with those reported in its Annual Report on Form 10-K for the year ended December 31, 2024[32](index=32&type=chunk) [NOTE 3 - INVESTMENTS](index=12&type=section&id=NOTE%203%20-%20INVESTMENTS) Available-for-Sale Debt Securities Fair Value (March 31, 2025 vs. December 31, 2024) | Debt Securities (in thousands) | March 31, 2025 Fair Value | December 31, 2024 Fair Value | | :----------------------------- | :------------------------ | :------------------------- | | U.S. government obligations and agencies | $21,491 | $19,747 | | Corporate bonds | $901,783 | $868,948 | | Mortgage-backed and asset-backed securities | $377,522 | $357,030 | | Municipal bonds | $14,578 | $14,354 | | Redeemable preferred stock | $8,964 | $9,000 | | Total | $1,324,338 | $1,269,079 | Credit Quality of Available-for-Sale Debt Securities (March 31, 2025 vs. December 31, 2024) | Average Credit Ratings | March 31, 2025 Fair Value | % of Total | December 31, 2024 Fair Value | % of Total | | :--------------------- | :------------------------ | :--------- | :------------------------- | :--------- | | AAA | $403,447 | 30.4 % | $378,732 | 29.9 % | | AA | $145,768 | 11.0 % | $146,456 | 11.5 % | | A | $441,890 | 33.4 % | $425,503 | 33.5 % | | BBB | $328,126 | 24.8 % | $313,265 | 24.7 % | | No Rating Available | $5,107 | 0.4 % | $5,123 | 0.4 % | | Total | $1,324,338 | 100.0 % | $1,269,079 | 100.0 % | Net Investment Income Components (Three Months Ended March 31, 2025 vs. 2024) | Component (in thousands) | 2025 | 2024 | | :----------------------- | :----------- | :----------- | | Available-for-sale debt securities | $10,719 | $7,214 | | Equity securities | $796 | $894 | | Cash and cash equivalents | $5,122 | $5,823 | | Other | $166 | $177 | | Total investment income | $16,803 | $14,108 | | Less: Investment expenses | $(743) | $(585) | | Net investment income | $16,060 | $13,523 | [NOTE 4 - REINSURANCE](index=17&type=section&id=NOTE%204%20-%20REINSURANCE) - The Company uses reinsurance agreements to reduce risk from catastrophic losses, primarily through catastrophe excess of loss reinsurance. It remains responsible for retained loss amounts and losses exceeding reinsurance coverage. The Company evaluates the financial strength of reinsurers to mitigate credit risk[50](index=50&type=chunk) Reinsurance Recoverables and Prepaid Premiums (March 31, 2025 vs. December 31, 2024) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Prepaid reinsurance premiums | $105,480 | $262,716 | | Reinsurance recoverables on paid losses and LAE | $37,519 | $65,681 | | Reinsurance recoverables on unpaid losses and LAE | $433,670 | $561,936 | | Total Reinsurance recoverables | $471,189 | $627,617 | [NOTE 5 - INSURANCE OPERATIONS](index=18&type=section&id=NOTE%205%20-%20INSURANCE%20OPERATIONS) Deferred Policy Acquisition Costs (DPAC) (Three Months Ended March 31, 2025 vs. 2024) | Metric (in thousands) | 2025 | 2024 | | :-------------------- | :----------- | :----------- | | DPAC, beginning of period | $121,178 | $109,985 | | Capitalized Costs | $54,108 | $50,852 | | Amortization of DPAC | $(59,456) | $(54,205) | | DPAC, end of period | $115,830 | $106,632 | - The Insurance Entities (UPCIC and APPCIC) are subject to Florida Office of Insurance Regulation (FLOIR) standards, requiring specific statutory capital levels and restricting dividend payments. As of March 31, 2025, neither UPCIC nor APPCIC could pay ordinary dividends, but both exceeded minimum statutory capitalization requirements[55](index=55&type=chunk)[56](index=56&type=chunk)[58](index=58&type=chunk) Statutory Capital and Surplus (March 31, 2025 vs. December 31, 2024) | Entity (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | UPCIC Statutory capital and surplus | $384,559 | $385,530 | | APPCIC Statutory capital and surplus | $28,195 | $27,985 | | UPCIC Ten percent of total liabilities | $175,350 | $161,438 | | APPCIC Ten percent of total liabilities | $3,096 | $3,179 | [NOTE 6 – LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES](index=19&type=section&id=NOTE%206%20%E2%80%93%20LIABILITY%20FOR%20UNPAID%20LOSSES%20AND%20LOSS%20ADJUSTMENT%20EXPENSES) Change in Liability for Unpaid Losses and LAE (Three Months Ended March 31, 2025 vs. 2024) | Metric (in thousands) | 2025 | 2024 | | :-------------------- | :----------- | :----------- | | Balance at beginning of period | $959,291 | $510,117 | | Total incurred | $250,555 | $240,187 | | Total paid | $187,903 | $238,276 | | Balance at end of period | $893,677 | $429,629 | - The liability for unpaid losses and loss adjustment expenses decreased by **$65.6 million** to **$893.7 million** as of March 31, 2025, primarily due to the settlement of Hurricane Ian claims and other prior-year claims. There was no prior year development during the three months ended March 31, 2025 and 2024[62](index=62&type=chunk)[63](index=63&type=chunk) [NOTE 7 – LONG-TERM DEBT](index=21&type=section&id=NOTE%207%20%E2%80%93%20LONG-TERM%20DEBT) Long-Term Debt (March 31, 2025 vs. December 31, 2024) | Debt Type (in thousands) | March 31, 2025 | December 31, 2024 | | :----------------------- | :------------- | :---------------- | | Surplus note | $2,206 | $2,573 | | 5.625% Senior unsecured notes | $100,000 | $100,000 | | Total principal amount | $102,206 | $102,573 | | Less: unamortized debt issuance costs | $(1,153) | $(1,330) | | Total long-term debt, net | $101,053 | $101,243 | - The Company has a **$25.0 million** surplus note with the State Board of Administration of Florida, with a 20-year term and variable interest. It also has **$100.0 million** in 5.625% Senior Unsecured Notes due 2026, redeemable after November 30, 2023. The Company was in compliance with all debt covenants as of March 31, 2025[66](index=66&type=chunk)[67](index=67&type=chunk)[69](index=69&type=chunk) - A **$50.0 million** unsecured revolving credit line with JP Morgan Chase Bank, N.A. was established on May 31, 2024, replacing a previous **$40.0 million** line. No amount has been borrowed under this facility as of March 31, 2025[71](index=71&type=chunk) [NOTE 8 – STOCKHOLDERS' EQUITY](index=23&type=section&id=NOTE%208%20%E2%80%93%20STOCKHOLDERS'%20EQUITY) Common Stock Repurchases (Three Months Ended March 31, 2025 vs. 2024) | Repurchase Plan | Dollar Amount Authorized (in thousands) | Shares Repurchased (2025) | Shares Repurchased (2024) | Aggregate Purchase Price (2024, in thousands) | | :---------------- | :------------------------------------ | :------------------------ | :------------------------ | :-------------------------------------------- | | March 11, 2024 | $20,000 | — | 288 | $6 | | June 12, 2023 | $20,000 | — | 207,722 | $4,133 | [NOTE 9 – INCOME TAXES](index=23&type=section&id=NOTE%209%20%E2%80%93%20INCOME%20TAXES) - The effective tax rate for the three months ended March 31, 2025, was **25.3%**, a decrease from **29.1%** for the same period in 2024. The Company determined no valuation allowance was needed on its gross deferred tax assets[74](index=74&type=chunk)[75](index=75&type=chunk) Income Tax Expense Reconciliation (Three Months Ended March 31, 2025 vs. 2024) | Component | 2025 | 2024 | | :-------------------- | :---- | :---- | | Expected provision at federal statutory tax rate | 21.0 % | 21.0 % | | State income tax, net of federal tax benefit | 2.8 % | 3.6 % | | Disallowed compensation | 1.4 % | 1.3 % | | Equity compensation shortfall | — % | 3.3 % | | Nondeductible expenses | 0.2 % | 0.1 % | | Dividend received deduction | (0.1)% | (0.2)% | | Total income tax expense (benefit) | 25.3 % | 29.1 % | [NOTE 10 – EARNINGS (LOSS) PER SHARE](index=24&type=section&id=NOTE%2010%20%E2%80%93%20EARNINGS%20(LOSS)%20PER%20SHARE) EPS Reconciliation (Three Months Ended March 31, 2025 vs. 2024) | Metric (in thousands, except per share) | 2025 | 2024 | | :------------------------------------ | :----------- | :----------- | | Net income (loss) | $41,439 | $33,657 | | Income (loss) available to common stockholders | $41,436 | $33,654 | | Weighted average common shares outstanding - Basic | 28,091 | 28,869 | | Weighted average diluted common shares outstanding | 28,779 | 29,404 | | Basic earnings (loss) per common share | $1.48 | $1.17 | | Diluted earnings (loss) per common share | $1.44 | $1.14 | [NOTE 11 – OTHER COMPREHENSIVE INCOME (LOSS)](index=25&type=section&id=NOTE%2011%20%E2%80%93%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) Components of Other Comprehensive Income (Loss) (Three Months Ended March 31, 2025 vs. 2024) | Metric (in thousands) | 2025 Pre-tax | 2025 After-tax | 2024 Pre-tax | 2024 After-tax | | :-------------------- | :----------- | :------------- | :----------- | :------------- | | Unrealized holding gains (losses) arising during the period | $16,015 | $12,083 | $(3,442) | $(2,594) | | Reclassification adjustments for (gains) losses realized in net income (loss) | $14 | $11 | $69 | $52 | | Other comprehensive income (loss) | $16,029 | $12,094 | $(3,373) | $(2,542) | [NOTE 12 – COMMITMENTS AND CONTINGENCIES](index=25&type=section&id=NOTE%2012%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) - The Company has multi-year reinsurance contract commitments for future years, with obligations of **$73.8 million** in 2025, **$127.3 million** in 2026, and **$53.5 million** in 2027[80](index=80&type=chunk) - The Company is involved in various legal proceedings, primarily disputes over coverage or damages. Accrued liabilities are established for probable and estimable loss contingencies. Reasonably possible losses for legal proceedings are currently estimated to be immaterial[81](index=81&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) [NOTE 13 – FAIR VALUE MEASUREMENTS](index=26&type=section&id=NOTE%2013%20%E2%80%93%20FAIR%20VALUE%20MEASUREMENTS) - The Company classifies assets measured at fair value into a three-level hierarchy: Level 1 (unadjusted quoted prices in active markets), Level 2 (observable market-based inputs or corroborated unobservable inputs), and Level 3 (unobservable inputs reflecting management's best estimate)[93](index=93&type=chunk) Assets Measured at Fair Value (March 31, 2025) | Asset Type (in thousands) | Level 1 | Level 2 | Level 3 | Total | | :------------------------ | :------ | :---------- | :---------- | :---------- | | Available-For-Sale Debt Securities | — | $1,324,338 | — | $1,324,338 | | Equity Securities | $79,983 | — | — | $79,983 | | Investment in Private Equity Limited Partnership | — | — | $11,750 | $11,750 | | Total assets accounted for at fair value | $79,983 | $1,324,338 | $11,750 | $1,416,071 | | Investment in Private Equity Limited Partnerships (NAV, in thousands) | | | | $3,932 | | Total assets at fair value (in thousands) | | | | $1,420,003 | Level 3 Investment in Private Equity Limited Partnership (March 31, 2025 vs. December 31, 2024) | Metric (in thousands) | March 31, 2025 Fair Value | December 31, 2024 Fair Value | | :-------------------- | :------------------------ | :------------------------- | | Investment in Private Equity Limited Partnership | $11,750 | $12,202 | | Weighted Average Mean EBITDA Multiple | 6.6x | 5.8x | [NOTE 14 – VARIABLE INTEREST ENTITIES](index=29&type=section&id=NOTE%2014%20%E2%80%93%20VARIABLE%20INTEREST%20ENTITIES) - The Company consolidates Mangrove Risk Solutions Bermuda Ltd. (formerly Isosceles Insurance Ltd.), a captive reinsurance provider, as a variable interest entity (VIE) because the Company is its primary beneficiary[100](index=100&type=chunk) [NOTE 15 – SEGMENT INFORMATION](index=29&type=section&id=NOTE%2015%20%E2%80%93%20SEGMENT%20INFORMATION) - The Company operates as a single, integrated business segment, offering homeowners insurance policies across various states. The CEO, as the Chief Operating Decision Maker, evaluates the entire business as a unified entity for resource allocation and performance assessment[101](index=101&type=chunk)[102](index=102&type=chunk) [NOTE 16 – SUBSEQUENT EVENTS](index=30&type=section&id=NOTE%2016%20%E2%80%93%20SUBSEQUENT%20EVENTS) - On April 14, 2025, the Company declared a quarterly cash dividend of **$0.16** per share of common stock, payable on May 16, 2025, to shareholders of record on May 9, 2025[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, highlighting key performance indicators, market trends, and the impact of legislative reforms in Florida. It details revenue and expense drivers, investment performance, and liquidity and capital resources, offering a comprehensive analysis of the Company's financial health and strategic direction [Cautionary Note Regarding Forward-Looking Statements](index=31&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) - The report contains forward-looking statements based on estimates, assumptions, and plans, which are subject to uncertainties and risks. Actual results may differ materially due to factors such as catastrophic events, Florida's regulatory and economic conditions, claims exceeding reserves, inadequate pricing, reinsurance availability, and litigation[108](index=108&type=chunk)[109](index=109&type=chunk) [OVERVIEW](index=33&type=section&id=OVERVIEW) - Universal Insurance Holdings, Inc. (UVE) is a vertically integrated holding company offering property and casualty insurance and related services, primarily residential homeowners' insurance in 19 states, with Florida accounting for **73.7%** of direct premiums written for the three months ended March 31, 2025[112](index=112&type=chunk) - The Company aims for long-term underwriting profit and growth in other revenue sources, including investment portfolio returns, reinsurance brokerage, and managing general agency fees[112](index=112&type=chunk) [Trends and Geographical Distribution](index=33&type=section&id=Trends%20and%20Geographical%20Distribution) [Florida Trends](index=33&type=section&id=Florida%20Trends) - The Florida personal lines homeowners' market has faced distressed conditions with significant increases in losses, LAE, and reinsurance costs, leading to higher premiums, reduced coverages, and tightened underwriting standards. Legislative reforms enacted in December 2022 aim to mitigate rising claims costs and premium increases by eliminating one-way attorneys' fees, restricting assignment of benefits, and reducing claim submission periods[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk) - While the Company is optimistic about the reforms improving the claims environment, the ultimate benefits are uncertain and subject to political, economic, and market factors. The active 2024 hurricane season added complexity, but the Company has cautiously increased its appetite for new business due to reforms and operational initiatives[117](index=117&type=chunk)[119](index=119&type=chunk)[123](index=123&type=chunk) [Summary of Recent Rate Changes](index=35&type=section&id=Summary%20of%20Recent%20Rate%20Changes) - UPCIC implemented a **1.4%** rate decrease for Florida Homeowners' and **1.6%** for Dwelling Fire effective July 15, 2023, due to participation in the Reinsurance to Assist Policyholders Program (RAP), which expired May 31, 2024. Subsequently, a **7.5%** rate increase for Florida personal residential homeowners' was effective July 17, 2023 (new business) and November 4, 2023 (renewal business), and a **4.1%** rate increase for Florida personal dwelling-fire lines was effective January 15, 2024[125](index=125&type=chunk)[126](index=126&type=chunk) - In August 2024, UPCIC implemented an average rate decrease of **1.5%** for new homeowners policies in Florida, with renewal rates effective May 17, 2025. Various rate increases were approved for 2025 in other states, including Michigan (**+24.8%**), Georgia (**+7.4%**), Alabama (**+8.0%**), Indiana (**+6.0%**), North Carolina (**+7.5%**), Massachusetts (**+13.0%**), and South Carolina (**+8.7%**)[126](index=126&type=chunk)[130](index=130&type=chunk) [KEY PERFORMANCE INDICATORS](index=35&type=section&id=KEY%20PERFORMANCE%20INDICATORS) - The Company uses various key performance indicators (KPIs) and non-GAAP financial measures to understand underlying business trends and evaluate financial performance, including adjusted book value per common share, adjusted net income, combined ratio, core loss ratio, direct premiums written, and policies in force[127](index=127&type=chunk)[129](index=129&type=chunk) [Definitions of Key Performance Indicators and GAAP and Non-GAAP Measures](index=35&type=section&id=Definitions%20of%20Key%20Performance%20Indicators%20and%20GAAP%20and%20Non-GAAP%20Measures) - This section defines key performance indicators and both GAAP and non-GAAP financial measures used by the Company, such as Adjusted book value per common share, Adjusted common stockholders' equity, Adjusted net income (loss) available to common stockholders, Combined Ratio, Direct Premiums Written (DPW), Expense Ratio, Losses and Loss Adjustment Expense Ratio, and Policies in Force[130](index=130&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[138](index=138&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk)[150](index=150&type=chunk) [REINSURANCE](index=39&type=section&id=REINSURANCE) - The Company's 2024-2025 catastrophe reinsurance program, effective June 1, 2024, meets FLOIR and rating agency requirements, with a first event combined retention of **$45 million** and a tower extending to **$2.415 billion**. It includes full reinstatement availability and reinstatement premium protection (RPP)[155](index=155&type=chunk)[157](index=157&type=chunk) - The program utilizes a captive insurance arrangement for the first event layer (**$66 million** in excess of **$45 million**) and includes specific third and fourth event private market excess of loss coverage for frequency protection. The Florida Hurricane Catastrophe Fund (FHCF) provides approximately **$1.26 billion** for UPCIC and **$20.4 million** for APPCIC[157](index=157&type=chunk) - The 2024-2025 catastrophe reinsurance program is projected to cost **$676 million**, representing approximately **33.0%** of projected direct premium earned for the 12-month treaty period[159](index=159&type=chunk) [RESULTS OF OPERATIONS AND ANALYSIS OF FINANCIAL CONDITION](index=41&type=section&id=RESULTS%20OF%20OPERATIONS%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION) [Highlights for the quarter ended March 31, 2025](index=41&type=section&id=Highlights%20for%20the%20quarter%20ended%20March%2031,%202025) - Direct written premium increased by **4.7%** to **$467.1 million**, driven by a **34.7%** growth in premiums outside of Florida. Net investment income rose by **18.8%** due to higher portfolio reinvestment rates and increased cash investments[162](index=162&type=chunk) - The Company observed favorable loss trends from policies issued after the 2022 legislative reforms and experienced reduced weather events compared to the previous four years. Demotech reaffirmed its A rating for UPCIC and APPCIC on April 8, 2025[162](index=162&type=chunk) [Results of Operations—Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024](index=42&type=section&id=Results%20of%20Operations%E2%80%94Three%20Months%20Ended%20March%2031,%202025%20Compared%20to%20Three%20Months%20Ended%20March%2031,%202024) Key Financial Results (Three Months Ended March 31, 2025 vs. 2024) | Metric (in thousands, except per share) | 2025 | 2024 | Change ($) | Change (%) | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | | Direct premiums written | $467,078 | $446,179 | $20,899 | 4.7 % | | Premiums earned, net | $355,721 | $334,025 | $21,696 | 6.5 % | | Net investment income | $16,060 | $13,523 | $2,537 | 18.8 % | | Commission revenue | $16,275 | $11,033 | $5,242 | 47.5 % | | Total revenues | $394,867 | $367,959 | $26,908 | 7.3 % | | Losses and loss adjustment expenses | $250,555 | $240,187 | $10,368 | 4.3 % | | General and administrative expenses | $87,244 | $78,666 | $8,578 | 10.9 % | | Total operating costs and expenses | $337,799 | $318,853 | $18,946 | 5.9 % | | Net income | $41,439 | $33,657 | $7,782 | 23.1 % | | Diluted earnings per common share | $1.44 | $1.14 | $0.30 | 26.3 % | | Comprehensive income (loss) | $53,533 | $31,115 | $22,418 | 72.0 % | - Net income increased by **23.1%** to **$41.4 million**, and diluted EPS rose by **26.3%** to **$1.44**, driven by higher net premiums earned, investment income, and commission revenue. The net loss ratio improved to **70.5%** (from **71.9%**), and the combined ratio improved to **95.0%** (from **95.5%**)[163](index=163&type=chunk) [Premium Revenues](index=43&type=section&id=Premium%20Revenues) - Direct premiums written increased by **4.7%** to **$467.1 million**, primarily due to a **34.7%** growth in premiums outside Florida, offsetting a **3.0%** reduction in Florida business. This growth was influenced by new rate changes, policy inflation adjustments, and a **1.1%** increase in policies in force to **864,817**[166](index=166&type=chunk)[167](index=167&type=chunk) - Direct premium earned increased by **6.5%** to **$513.3 million**, reflecting premiums written over the past year, including rate filings, inflation adjustments, and higher policy counts[168](index=168&type=chunk) [Reinsurance](index=43&type=section&id=Reinsurance) - Ceded premium earned increased by **6.4%** for the three months ended March 31, 2025, primarily due to higher costs for the 2024/2025 reinsurance contract period and **$0.3 million** in reinstatement premiums for prior hurricanes. The ratio of ceded premiums to direct premiums remained steady at **30.7%**[168](index=168&type=chunk) [Investment Results](index=43&type=section&id=Investment%20Results) - Net investment income increased by **18.8%** to **$16.1 million** for the three months ended March 31, 2025, driven by higher returns from new investments and a **$55.3 million** increase in invested balances, partially offset by reduced yields from invested cash[169](index=169&type=chunk) - Realized and unrealized gains and losses on the equity portfolio were insignificant in Q1 2025, contrasting with a **$3.1 million** unrealized gain in Q1 2024. The Company is monitoring downward pressure on reinvestment book yields due to Federal policy and geopolitical events[170](index=170&type=chunk)[171](index=171&type=chunk) [Commissions, Policy Fees and Other Revenue](index=44&type=section&id=Commissions,%20Policy%20Fees%20and%20Other%20Revenue) - Commission revenue increased by **47.5%** to **$16.3 million**, mainly from reinstatement premiums for Hurricanes Helene and Milton, and increased reinsurance spending. Policy fees rose by **2.0%** to **$4.5 million** due to an increase in policies written in states permitting such fees. Other revenue increased by **19.4%** to **$2.3 million**[172](index=172&type=chunk)[173](index=173&type=chunk) [Operating Costs and Expenses](index=44&type=section&id=Operating%20Costs%20and%20Expenses) [Losses and Loss Adjustment Expenses](index=44&type=section&id=Losses%20and%20Loss%20Adjustment%20Expenses) - Net losses and LAE increased by **4.3%** to **$250.6 million**, with a net loss ratio of **70.5%** (down from **71.9%** in Q1 2024), primarily due to increased premium volume. Weather-related losses significantly decreased in Q1 2025 compared to previous years, with no major weather events[174](index=174&type=chunk)[175](index=175&type=chunk) - There was no prior-year development on catastrophe or non-catastrophe losses in Q1 2025 or Q1 2024. The Company observes favorable claim trends on Florida losses for policies issued after the December 2022 reforms, but pre-reform claims still exhibit greater uncertainty[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk) [General and Administrative Expenses](index=45&type=section&id=General%20and%20Administrative%20Expenses) General and Administrative Expenses (Three Months Ended March 31, 2025 vs. 2024) | Expense (in thousands) | 2025 | 2025 Ratio | 2024 | 2024 Ratio | | :--------------------- | :----------- | :--------- | :----------- | :--------- | | Policy acquisition costs | $60,574 | 17.0 % | $54,821 | 16.4 % | | Other operating costs | $26,670 | 7.5 % | $23,845 | 7.2 % | | Total general and administrative expenses | $87,244 | 24.5 % | $78,666 | 23.6 % | - Total general and administrative expenses increased by **$8.6 million**, or **10.9%**, driven by a **$5.8 million** increase in policy acquisition costs (due to higher commissions from increased net earned premiums and growth outside Florida) and a **$2.8 million** increase in other operating costs (due to employee compensation and policy-related costs)[181](index=181&type=chunk)[186](index=186&type=chunk) [Combined Ratio](index=45&type=section&id=Combined%20Ratio) - The combined ratio improved to **95.0%** for the three months ended March 31, 2025, compared to **95.5%** for the same period in 2024, indicating improved underwriting profitability[182](index=182&type=chunk) [Interest and Amortization of Debt Issuance Costs](index=45&type=section&id=Interest%20and%20Amortization%20of%20Debt%20Issuance%20Costs) - Interest and amortization of debt issuance costs remained stable at **$1.6 million** for both three-month periods ended March 31, 2025 and 2024, primarily related to senior unsecured notes[183](index=183&type=chunk) [Income Tax Expense (Benefit)](index=45&type=section&id=Income%20Tax%20Expense%20(Benefit)) - Income tax expense was **$14.0 million** in Q1 2025, up from **$13.8 million** in Q1 2024. The effective tax rate decreased to **25.3%** in Q1 2025 from **29.1%** in Q1 2024[184](index=184&type=chunk) [Other Comprehensive Income (Loss)](index=45&type=section&id=Other%20Comprehensive%20Income%20(Loss)) - Other comprehensive income, net of taxes, was **$12.1 million** for Q1 2025, a significant improvement from a **$2.5 million** loss in Q1 2024, reflecting favorable shifts in market prices and reduced unrealized losses on debt securities as they approach maturity[185](index=185&type=chunk) [Non-GAAP](index=46&type=section&id=Non-GAAP) Non-GAAP Financial Measures (Three Months Ended March 31, 2025 vs. 2024) | Metric (in thousands, except per share) | 2025 | 2024 | | :------------------------------------ | :----------- | :----------- | | Core revenue | $394,871 | $364,930 | | Adjusted operating income (loss) | $57,072 | $46,077 | | Adjusted operating income (loss) margin | 14.5 % | 12.6 % | | Adjusted net income (loss) available to common stockholders | $41,439 | $31,370 | | Diluted adjusted earnings (loss) per common share | $1.44 | $1.07 | [Analysis of Financial Condition—As of March 31, 2025 compared to December 31, 2024](index=47&type=section&id=Analysis%20of%20Financial%20Condition%E2%80%94As%20of%20March%2031,%202025%20compared%20to%20December%2031,%202024) Key Balance Sheet Changes (March 31, 2025 vs. December 31, 2024) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | | :-------------------- | :------------- | :---------------- | :----------- | | Total invested assets | $1,428,256 | $1,371,276 | $56,980 | | Cash and cash equivalents | $398,184 | $259,441 | $138,743 | | Prepaid reinsurance premiums | $105,480 | $262,716 | $(157,236) | | Reinsurance recoverables | $471,189 | $627,617 | $(156,428) | | Deferred policy acquisition costs | $115,830 | $121,178 | $(5,348) | | Deferred income tax asset, net | $46,217 | $42,163 | $4,054 | | Unpaid losses and LAE | $893,677 | $959,291 | $(65,614) | | Unearned premiums | $1,014,267 | $1,060,446 | $(46,179) | | Advance premium | $81,922 | $46,237 | $35,685 | | Reinsurance payable, net | $115,136 | $220,328 | $(105,192) | | Income taxes payable | $28,567 | $6,561 | $22,006 | - Total invested assets increased by **$57.0 million**, and cash and cash equivalents increased by **$138.7 million**, primarily due to investment of excess cash and unrealized gains. Prepaid reinsurance premiums and reinsurance recoverables decreased due to amortization and collection of ceded paid losses[193](index=193&type=chunk)[195](index=195&type=chunk) - Unpaid losses and LAE decreased by **$65.6 million** due to claim settlements, while unearned premiums decreased by **$46.2 million** reflecting business seasonality. Advance premiums increased by **$35.7 million** due to customer payment behavior[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=48&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) [Liquidity](index=48&type=section&id=Liquidity) - Cash and cash equivalents increased by **$138.7 million** to **$398.2 million** as of March 31, 2025, primarily from operating activities. Restricted cash and cash equivalents remained stable at **$2.6 million**[205](index=205&type=chunk) - Holding company liquidity is supported by dividends from service entities, brokerage commissions, policy fees, and a high-quality investment portfolio. Dividends from Insurance Entities to the parent are restricted by FLOIR regulations; neither UPCIC nor APPCIC had capacity to pay ordinary dividends as of March 31, 2025[206](index=206&type=chunk)[207](index=207&type=chunk) - The Insurance Entities maintain liquidity through premiums earned, investment income, reinsurance recoverables, and highly liquid marketable securities. The average credit rating on available-for-sale securities was **A+** with a duration of **3.3 years**[208](index=208&type=chunk)[209](index=209&type=chunk) [Capital Resources](index=50&type=section&id=Capital%20Resources) Capital Resources (March 31, 2025 vs. December 31, 2024) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Stockholders' equity | $422,387 | $373,250 | | Total long-term debt | $101,053 | $101,243 | | Total capital resources | $523,440 | $474,493 | | Debt-to-total capital ratio | 19.3 % | 21.3 % | | Debt-to-equity ratio | 23.9 % | 27.1 % | - Capital resources increased by **$48.9 million**, driven by a net increase in stockholders' equity (due to net income and improved AOCI) partially offset by a slight decline in long-term debt. Additional paid-in capital increased by **$0.1 million** from share-based compensation[211](index=211&type=chunk)[212](index=212&type=chunk) Adjusted Capital Metrics (March 31, 2025 vs. December 31, 2024) | Metric (in thousands, except per share) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Adjusted common stockholders' equity | $473,359 | $436,316 | | Adjusted book value per common share | $16.79 | $15.53 | | Adjusted return on common equity | 36.4 % | 12.4 % | [Revolving Loan](index=50&type=section&id=Revolving%20Loan) - The Company has an unused **$50.0 million** unsecured revolving credit line with JP Morgan Chase Bank, N.A., maturing on May 30, 2025. The Company was in compliance with all covenants as of March 31, 2025[215](index=215&type=chunk) [Long-term Debt](index=50&type=section&id=Long-term%20Debt) - The Company has **$100 million** in 5.625% Senior Unsecured Notes due November 30, 2026, which are redeemable after November 30, 2023. The Company was in compliance with all applicable covenants as of March 31, 2025[216](index=216&type=chunk) - The Company continues to evaluate opportunities to access debt capital markets for additional capital, primarily for general corporate purposes and investing in the capital and surplus of its Insurance Entities[217](index=217&type=chunk) [Common Stock Repurchases](index=51&type=section&id=Common%20Stock%20Repurchases) - Under the March 11, 2024, authorization, the Company can repurchase up to **$20.0 million** of common stock through March 11, 2026. As of March 31, 2025, approximately **$2.6 million** remains available for repurchase, with no shares repurchased during Q1 2025[221](index=221&type=chunk) [Off-Balance Sheet Arrangements](index=51&type=section&id=Off-Balance%20Sheet%20Arrangements) - The Company has no material off-balance sheet arrangements, except for multi-year reinsurance contract commitments for future years that will be recorded at the commencement of their coverage periods[222](index=222&type=chunk) [Cash Dividends](index=51&type=section&id=Cash%20Dividends) Cash Dividend Declared (Q1 2025) | Quarter | Dividend Declared Date | Shareholders Record Date | Payable Date | Per Common Share Amount | | :---------- | :--------------------- | :----------------------- | :----------- | :---------------------- | | First Quarter | February 6, 2025 | March 7, 2025 | March 14, 2025 | $0.16 | [MATERIAL CASH REQUIREMENTS](index=52&type=section&id=MATERIAL%20CASH%20REQUIREMENTS) Material Cash Requirements (as of March 31, 2025, in thousands) | Requirement | Total | Next 12 Months | Beyond 12 Months | | :-------------------------- | :----------- | :------------- | :--------------- | | Reinsurance payable and multi-year commitments | $369,742 | $215,706 | $154,036 | | Unpaid losses and LAE, direct | $893,677 | $539,969 | $353,708 | | Long-term debt | $113,544 | $7,171 | $106,373 | | Total material cash requirements | $1,376,963 | $762,846 | $614,117 | [IMPACT OF INFLATION AND CHANGING PRICES](index=52&type=section&id=IMPACT%20OF%20INFLATION%20AND%20CHANGING%20PRICES) - The Company's financial statements reflect historical dollar values without inflation adjustments. Performance is influenced by economic, regulatory, and market factors, including interest rates and inflation. Prolonged inflation could significantly impact future costs, particularly for settling estimated losses and LAE liabilities[225](index=225&type=chunk) [ARRANGEMENTS WITH VARIABLE INTEREST ENTITIES](index=52&type=section&id=ARRANGEMENTS%20WITH%20VARIABLE%20INTEREST%20ENTITIES) - The Company consolidates a captive reinsurance arrangement with a Variable Interest Entity (VIE) because it is the primary beneficiary, as detailed in Note 14[226](index=226&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=52&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) - There have been no material changes to the Company's Critical Accounting Policies and Estimates during the period covered by this Quarterly Report on Form 10-Q[226](index=226&type=chunk) [NON-GAAP FINANCIAL MEASURES](index=53&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) Reconciliation of GAAP Revenue to Core Revenue (in thousands) | Metric (in thousands) | March 31, 2025 | March 31, 2024 | | :-------------------- | :------------- | :------------- | | GAAP revenue | $394,867 | $367,959 | | less: Net realized gains (losses) on investments | (14) | (77) | | less: Net change in unrealized gains (losses) on investments | 10 | 3,106 | | Core Revenue | $394,871 | $364,930 | Reconciliation of GAAP Operating Income (Loss) to Adjusted Operating Income (Loss) (in thousands) | Metric (in thousands) | March 31, 2025 | March 31, 2024 | | :-------------------- | :------------- | :------------- | | GAAP income (loss) before income tax expense (benefit) | $55,456 | $47,484 | | add: Interest and amortization of debt issuance costs | 1,612 | 1,622 | | GAAP operating income (loss) | $57,068 | $49,106 | | less: Net realized gains (losses) on investments | (14) | (77) | | less: Net changes in unrealized gains (losses) on investments | 10 | 3,106 | | Adjusted operating income (loss) | $57,072 | $46,077 | Reconciliation of GAAP Net Income (Loss) Available to Common Stockholders to Adjusted Net Income (Loss) Available to Common Stockholders (in thousands) | Metric (in thousands, except per share) | March 31, 2025 | March 31, 2024 | | :------------------------------------ | :------------- | :------------- | | GAAP net income (loss) available to common stockholders | $41,436 | $33,654 | | less: Net realized gains (losses) on investments | (14) | (77) | | less: Net changes in unrealized gains (losses) on investments | 10 | 3,106 | | add: Income tax effect on above adjustments | (1) | 745 | | Adjusted net income (loss) available to common stockholders | $41,439 | $31,370 | | Diluted earnings (loss) per common share | $1.44 | $1.14 | | Diluted adjusted earnings (loss) per common share | $1.44 | $1.07 | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the Company's exposure to market risk, primarily from changes in interest rates and equity prices, affecting its investment portfolio. It outlines the objectives of the investment portfolio, which prioritize capital preservation and liquidity, followed by total return with an emphasis on investment income [Interest Rate Risk](index=56&type=section&id=Interest%20Rate%20Risk) - Interest rate risk refers to the sensitivity of the fair market value of fixed-rate financial instruments to changes in interest rates. The Company's fixed income portfolio, primarily available-for-sale debt securities, is exposed to this risk[234](index=234&type=chunk) Fixed Income Financial Instruments (March 31, 2025 vs. December 31, 2024) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Amortized cost | $1,392,573 | $1,353,532 | | Fair market value | $1,324,338 | $1,269,079 | | Coupon rate | 3.36 % | 2.94 % | | Book yield | 3.14 % | 2.34 % | | Years to effective maturity | 4.0 years | 4.1 years | [Equity Price Risk](index=56&type=section&id=Equity%20Price%20Risk) - Equity price risk is the potential for loss in fair value of common stock and mutual funds due to adverse changes in market prices. A hypothetical **20%** decrease in market prices of equity securities would result in a **$16.0 million** decrease in fair value as of March 31, 2025[236](index=236&type=chunk)[237](index=237&type=chunk) Equity Securities Subject to Price Risk (March 31, 2025 vs. December 31, 2024) | Equity Securities (in thousands) | March 31, 2025 Fair Value | Percent | December 31, 2024 Fair Value | Percent | | :------------------------------- | :------------------------ | :------ | :------------------------- | :------ | | Common stock | $17,170 | 21.5 % | $14,409 | 18.5 % | | Mutual funds and other | $62,813 | 78.5 % | $63,343 | 81.5 % | | Total equity securities | $79,983 | 100.0 % | $77,752 | 100.0 % | [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the Company's evaluation of its disclosure controls and procedures and reports on any changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=57&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - The Company's Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective as of March 31, 2025, ensuring timely and accurate reporting of information required under the Exchange Act[238](index=238&type=chunk) [Changes in Internal Control Over Financial Reporting](index=57&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - There were no material changes in the Company's internal controls over financial reporting during the period covered by this report[239](index=239&type=chunk) [PART II – OTHER INFORMATION](index=57&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) This section outlines the nature of legal proceedings against the Company, primarily disputes related to insurance coverage and damages, and states the Company's approach to establishing reserves and estimating potential losses - The Company is involved in various legal proceedings, mainly disputes concerning insurance coverage or the scope and amount of damages. Accrued liabilities are established for probable and estimable loss contingencies[240](index=240&type=chunk)[241](index=241&type=chunk)[242](index=242&type=chunk) - The Company estimates that reasonably possible losses for legal proceedings, whether in excess of accrued liabilities or where no liability exists, are immaterial. These estimates are based on current information and may vary significantly from actual results[243](index=243&type=chunk) [Item 1A. Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the comprehensive discussion of risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 - For a detailed discussion of risk factors, refer to 'Part I, Item 1A—Risk Factors' in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[244](index=244&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides an update on the Company's common stock repurchase program, including the authorized amount, shares repurchased, and remaining capacity - The Board of Directors authorized a **$20.0 million** common stock repurchase program on March 11, 2024, valid through March 11, 2026. As of March 31, 2025, approximately **$2.6 million** remains available for repurchase, with no shares repurchased during Q1 2025[246](index=246&type=chunk) - No shares were repurchased under this program during the quarterly period ended March 31, 2025[246](index=246&type=chunk) [Item 5. Other Information](index=59&type=section&id=Item%205.%20Other%20Information) This section reports on other information not covered elsewhere, specifically regarding Rule 10b5-1 plans and non-Rule 10b5-1 trading arrangements - During the three months ended March 31, 2025, no director or Section 16 officer adopted or terminated any Rule 10b5-1 plans or non-Rule 10b5-1 trading arrangements[247](index=247&type=chunk) [Item 6. Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including corporate governance documents, certifications, and financial statements in iXBRL format - Key exhibits include the Amended and Restated Certificate of Incorporation and Bylaws, Accountants' Acknowledgment, CEO and CFO Certifications (Sections 302 and 906 of Sarbanes-Oxley Act), and financial statements formatted in iXBRL[248](index=248&type=chunk) [Signatures](index=61&type=section&id=Signatures) This section contains the required signatures for the Form 10-Q filing, confirming its submission by authorized officers of Universal Insurance Holdings, Inc - The report was signed on April 30, 2025, by Stephen J. Donaghy, Chief Executive Officer, and Gary Lloyd Ropiecki, Principal Accounting Officer[253](index=253&type=chunk)

Financial Performance - The company's FY24 direct premiums written were approximately $2.1 billion[8] - The company's 5-year average return on common equity is 8.1%[8] - The company's book value per share increased from $5.86 in FY14 to $21.19 in FY24[21] - The company's direct premiums written in Q1 2025 reached $467.1 million, a 4.7% increase year-over-year[89] - The company's diluted GAAP earnings per common share (EPS) in Q1 2025 was $1.44, with an annualized return on average common equity (ROCE) of 41.7%[89] Business Overview - The company actively operates in 19 states[8] - The company manages approximately 864,800 customer policies[8] - The company has approximately 9,600 independent agents in its distribution channel[8] - The U S & territories Homeowners Multi-Peril Direct Premiums Written increased from $51.6 billion in CY19 to $173.0 billion in CY24, representing a CAGR of 10.9%[30] - The company's net investment income increased from $30.7 million in FY19 to $59.1 million in FY24[14,80]

Financial Data and Key Metrics Changes - Adjusted diluted earnings per common share increased to $1.44, up from $1.07 in the prior year quarter, primarily due to higher underwriting and net investment income, as well as increased commission revenue [7] - Core revenue reached $394.9 million, reflecting an 8.2% year-over-year growth driven by higher net premiums earned and net investment income [7] - Direct premiums written were $467.1 million, a 4.7% increase from the prior year quarter, with significant growth in other states offset by a decrease in Florida [8] Business Line Data and Key Metrics Changes - Direct premiums earned totaled $513.3 million, up 6.5% from the prior year quarter, reflecting growth in direct premiums written [9] - Net premiums earned were $355.7 million, also up 6.5% year-over-year, primarily due to higher direct premiums earned [9] - The net combined ratio improved to 95%, down 0.5 percentage points from the prior year quarter, attributed to a lower net loss ratio [10] Market Data and Key Metrics Changes - The net loss ratio decreased to 70.5%, down 1.4 percentage points compared to the prior year quarter, mainly due to lower weather losses [10] - The net expense ratio increased to 24.5%, up 0.9 percentage points from the prior year quarter, driven by higher policy acquisition costs and other operating costs [10] Company Strategy and Development Direction - The company is focused on profitability and managing its overall book of business, aiming to grow in areas where it can do so profitably [14] - The completion of the 2025-2026 reinsurance renewal was highlighted, with $352 million of additional multiyear coverage secured through the 2026-2027 hurricane season [6] - Legislative reforms in Florida are seen as beneficial, providing stability to the property insurance market and increasing certainty for policyholders [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the competitive environment, noting that new entrants in Florida have not significantly impacted the overall market [15] - The company is pleased with the favorable reinsurance rates and capacity, indicating a healthy market environment influenced by legislative changes [20] - Management emphasized a conservative approach to reserves, with no prior development reported for the quarter [25] Other Important Information - A regular quarterly cash dividend of $0.16 per share was declared, payable on May 16, 2025 [11] Q&A Session Summary Question: Can you provide more detail on the competitive environment and growth perspectives? - Management stated that they are focused on profitability and managing the book of business, with a healthy competitive environment in Florida [14][15] Question: Any updates on reinsurance and market conditions? - Management expressed satisfaction with the reinsurance capacity and favorable pricing, indicating a positive outlook for the market [18][20] Question: Was there any reserve development in the quarter? - Management confirmed that there was no prior development, maintaining a conservative approach to reserves [25] Question: Was there any claims handling benefit booked in the quarter? - Management indicated that any claims handling benefit was negligible [30] Question: Can you elaborate on the gap retention and coverage? - Management confirmed plans to use the same coverage structure as the previous year, with specific details to be provided later [32]

Financial Data and Key Metrics Changes - Adjusted diluted earnings per common share was $1.44, down from $1.70 in the prior year quarter, primarily due to higher underwriting and net investment income and higher commission revenue [6] - Core revenue reached $394.9 million, an increase of 8.2% year over year, driven by higher net premiums earned, net investment income, and commission revenue [6] - Direct premiums written were $467.1 million, up 4.7% from the prior year quarter, with a 34.7% growth in other states, partially offset by a 3% decrease in Florida [7] - Net combined ratio improved to 95%, down 0.5 points compared to the prior year quarter, reflecting a lower net loss ratio [9] Business Line Data and Key Metrics Changes - Direct premiums earned were $513.3 million, up 6.5% from the prior year quarter, reflecting growth in direct premiums written [8] - Net premiums earned increased to $355.7 million, also up 6.5% from the prior year quarter, primarily due to higher direct premiums earned [8] - The net loss ratio was 70.5%, down 1.4 points compared to the prior year quarter, attributed to lower weather losses [9] Market Data and Key Metrics Changes - The company experienced lower weather losses in the current quarter, benefiting the loss and LAE ratio [4] - The competitive environment in Florida is improving, with new entrants but no significant growth across the entire state [13][14] Company Strategy and Development Direction - The company is focused on profitability and managing the overall book of business, aiming to grow where it can do so profitably [13] - The completion of the 2025-2026 reinsurance renewal was announced, securing $352 million of additional multiyear coverage [5] - Legislative reforms in Florida are seen as beneficial, providing stability to the property insurance market [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the legislative changes and their positive impact on the market, indicating a healthier environment for growth [14][17] - The company is pleased with the reinsurance capacity and favorable rates, which reflect the market's response to recent legislative changes [16][17] - There was no prior year reserve development, indicating a conservative approach to reserves [19] Other Important Information - A regular quarterly cash dividend of $0.16 per share was declared, payable on May 16, 2025 [10] Q&A Session Summary Question: Can you provide more detail on the competitive environment and growth prospects? - Management emphasized a focus on profitability and managing the book of business, noting that competition does not drive pricing decisions [13] Question: Any updates on reinsurance costs and market conditions? - Management expressed satisfaction with the reinsurance response and indicated favorable rates compared to expectations, despite recent hurricanes [16] Question: Was there any reserve development in the quarter? - Management confirmed there was no prior year development, maintaining a conservative approach [19] Question: Any claims handling benefits booked in the quarter? - Management stated that any claims handling benefits were negligible [23] Question: What about GAAP retention and coverage? - Management confirmed plans to use the captive cover in the same capacity as before, covering the first layer above the retention [25]

Core Viewpoint - Universal Insurance Holdings (UVE) reported strong quarterly earnings, exceeding expectations and showing growth compared to the previous year [1][2]. Financial Performance - The company achieved earnings of $1.44 per share, surpassing the Zacks Consensus Estimate of $1.12 per share, and up from $1.07 per share a year ago [1]. - The earnings surprise for the quarter was 28.57%, and over the last four quarters, the company has consistently exceeded consensus EPS estimates [2]. - Revenues for the quarter reached $394.87 million, exceeding the Zacks Consensus Estimate by 11.24%, and up from $367.96 million year-over-year [3]. Stock Performance - Universal Insurance shares have increased approximately 11.4% since the beginning of the year, contrasting with the S&P 500's decline of 8.6% [4]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.14, with projected revenues of $358.23 million, and for the current fiscal year, the EPS estimate is $2.65 on revenues of $1.44 billion [8]. - The outlook for the insurance industry is favorable, with the Insurance - Property and Casualty sector ranking in the top 14% of over 250 Zacks industries, suggesting strong potential for stock performance [9].