Universal Insurance Holdings has reported net income available to common stockholders of $59.2 million in the second quarter of 2026, up 69% from $35.1 million in the prior year quarter.
For the quarter, adjusted net income available to common stockholders was $53.4 million, compared with $35.7 million in Q2’25.
Universal attributed the increase in adjusted net income available to common stockholders to a lower net loss ratio, higher net premiums earned and increased net investment income.
Total revenues stood at $427 million, representing a 6.7% increase from $400.1 million. Core revenue was $419.4 million, up 4.6% from $400.9 million.
Direct premiums written rose 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 premiums earned grew 4.7% to $377.3 million from $360.2 million.
In Q2’26, the combined ratio improved to 91.6%, compared with 97.8% in Q2’25. The loss ratio improved to 64.8% from 72.3%, reflecting improved current accident year results, while the expense ratio rose slightly to 26.8% from 25.5%.
Net investment income totalled $20.2 million, up from $17.3 million in the prior year quarter, driven by higher fixed income reinvestment yields and higher invested assets.
Stephen J. Donaghy, Chief Executive Officer of Universal Insurance Holdings, said, “In the quarter, we delivered a very strong 38.8% annualised return on common equity, driven by solid underwriting and revenue performance.
“Notably, the net loss ratio improved by 7.5 points year-over-year, driven by favourable claims and litigation trends that we expect to benefit non-catastrophe margins throughout the year. Strong retention and new business generation resulted in 4.1% direct premiums written growth, including growth in Florida and across our multi-state footprint.
“The favourable claims and litigation trends in our results are a direct product of Florida’s legislative reforms. Thanks to the efforts of the Governor, the Legislature, and the OIR, the Florida homeowners insurance market has stabilised and now operates much more like the rest of the country. Our litigation inventory is back down to levels that preceded Florida’s litigation crisis, and the impact of pre-reform claims practices is behind us. As a result, we believe our aggregate reserves provide a meaningful margin above expected ultimate losses. Combined with more favourable reinsurance rates and our ability to write rate-adequate premium through our robust organic new business pipeline, we believe we are well positioned to deliver sustained profitable growth.”
