Universal Insurance Holdings has reported a net income of $24.2 million in its Q1 results, up from $17.5 million in the prior year quarter.
Adjusted net income was $24 million for the quarter, representing a $4 million increase from last years $20 million.
At the same time, revenue was $316.5 million, representing a 10.1% increase from the prior year quarter, while core revenue was $316.3 million, up 8.8% from the prior year quarter. Universal states that the increase in core revenue primarily stems from higher net premiums earned, net investment income and commission revenue.
Universal noted that direct premiums written were $410.1 million for Q1, up 3.4% from the prior year quarter, with the increase stemming from 0.9% growth in Florida and 17.2% growth in other states.
Direct premiums earned were $455.4 million, up 9.8% from the prior year quarter.
Additionally, for Q1, net premiums earned were $282.2 million, representing a 4.9% increase from the prior year quarter.
Elsewhere, Universal’s ceded premium ratio was 38.0% for the quarter, compared to 35.1% from last year’s quarter.
Stephen J. Donaghy, Chief Executive Officer, commented on the results: “It was a strong quarter, including a 23.9% annualized adjusted return on common equity and 23.4% adjusted diluted EPS growth year-on-year.
“There are multiple factors benefiting our business and I’m optimistic as I look towards the future – the Florida legislature passed meaningful reforms at the December special session, which we believe will improve the long-term stability and profitability of our core business, while rate adequacy improves and higher fixed income yields boost the productivity of our investment portfolio.
“Additionally, as we sit here today, we already have our core all states property catastrophe reinsurance tower for the 2023-2024 period fully supported and secured with no material changes to our historical reinsurance partners or our terms and conditions, while the costs are well within our budget parameters. We are very pleased with the progress we have made in the current environment, which is a testament to the strength of our business.”
