Universal Insurance Holdings has reported its direct premiums written came in at $432.9 million in the third quarter of 2021, while the insurer’s underwriting returned to profitable territory.
Direct premiums earned for Q3 2021 were up 15.0% from the prior year’s third quarter to $410.6 million, with an annualised return on average equity of 16.4%.
The company also reported an improved combined ratio of 98.6%, compared to 134.7% for last year’s third quarter.
The combined ratio included an expense ratio of 27.7% compared to 32.9% for the same prior year period.
Its loss ratio came in at 70.9% compared to 101.8% for Q3 2020, this was driven primarily by decreased weather events and lower prior years’ reserve development.
Stephen J. Donaghy, Chief Executive Officer commented: “We have now filed for more than 34% in primary rate increases in Florida over the past 18 months, while simultaneously continuing to shape our underwriting risks with total policies-in-force relatively flat year-over-year.
“Our third quarter results demonstrate continued execution of our multi-year strategic priorities, including disciplined growth and operational improvements. Our direct premiums earned growth of 15.0% in the third quarter was primarily driven by primary rate increases in Florida earning through the book.
“Our business expenses were lower from continued expense management controls, including lower agency commissions and employee productivity gains, in addition to lower executive compensation accruals. These results were highlighted by a 16.4% annualised return on average equity in the quarter.”