Universal Insurance Holdings has reported a net income of $6 million for the fourth quarter of 2024, representing a 69.9% decrease compared to $20 million in the same period a year earlier, as the company’s combined ratio deteriorated by 4.2 percentage points to 107.9%.
Total revenue for the quarter rose 2.5% to $384.8 million from $375.5 million in Q4 2023, while operating income fell 67.5% to $9 million from $27.5 million.
Universal attributed the revenue increase to higher net premiums earned, net investment income, and commission revenue.
Direct premiums written reached $470.9 million, up 8.8% from $432.6 million, driven by 0.8% growth in Florida and 38.4% growth in other states. The overall increase was supported by higher policies in force, higher rates, and inflation adjustments.
Direct premiums earned were up 7.7% in Q4’24, increasing from $482.1 million to $519.3 million.
The ceded premium ratio increased to 32.9% from 30.4% in Q4’23, reflecting the replacement of the Reinsurance to Assist Policyholders (RAP) layer, which was provided by the state of Florida, with private market coverage.
Net premiums earned grew 3.9% in Q4’24 to $348.4 million from $335.4 million.
Universal’s combined ratio stood at 107.9%, with a loss ratio of 82.3% and an expense ratio of 25.6%, up 4.2 percentage points from 103.7% reported in Q4’23.
Net investment income rose to $15.6 million from $13.7 million, driven by higher fixed income reinvestment yields and increased invested assets.
For full-year 2024, Universal reported a net income of $58.9 million, down 11.8% from $66.8 million in 2023. Total revenue increased 9.3% to $1.5 billion, while operating income declined 4% to $91.1 million.
Direct premiums written for the year reached $2.1 billion, with direct premiums earned at $2 billion. The ceded premium ratio fell 1.9 percentage points to 31.3%. Net premiums earned totalled $1.4 billion.
The company’s full-year combined ratio rose to 104.1%, up 0.5 percentage points from 103.6% in 2023.
Stephen J. Donaghy, Chief Executive Officer of Universal Insurance Holdings, said, “In 2024, we experienced three hurricanes, including Debbie, Helene and Milton, and we’re working hard, as we always do, to help our customers restore their lives.
“We continue to see progress relative to claims trends in our Florida book and recently filed a modest rate decrease in the state that’s directly correlated with the legislative changes made in December 2022. We’re already well underway negotiating and placing our 2025 reinsurance program with 92% of our first event catastrophe tower already placed as we stand here today, along with significant additional multi-year capacity secured for the 2026 hurricane season.”
