Universal Insurance Holdings recorded a 9.6% hike in total revenues to $439 million for the third quarter of 2026, up from $400 million in Q3’25, as total revenues for the first nine months of the year increased by 5.3% to $1.26 billion from $1.19 billion in 2025.
The increase in both periods primarily stems from higher net premiums earned and net investment income, explained the company.
In Q3’26, direct premiums written were up 2.7% to $608.9 million, compared to $592 million in Q3’25, driven by 18.5% growth in other states, offset by a 3.3% decrease in Florida.
For 9M’26, direct premiums written were up 4.8% to $1.74 billion, compared to $1.66 billion in Q3’25, this overall growth mostly reflects higher policies in force across the insurer’s multi-state footprint.
In Q3’26, direct premiums earned were $556.7 million, up 4.2% from $534 million in Q3’25, driven by higher direct premiums written over the past 12 months. For 9M’26, the same was up 4% to $1.63 billion compared to $1.57 billion for 9M’25.
The ceded premium ratio was 27.6%, down from 32.7% in Q3’25, reflecting Universal’s new reinsurance program, which started on June 1, 2026. The ratio decreased slightly for 9M’26 to 30.5% compared to 31.5%.
Meanwhile, net premiums earned were $403.2 million, up 12.1% from $359 million in Q3’25, again driven by higher direct premiums earned and a lower ceded premium ratio. For 9M’26, NPE was up 5.7% to $1.13 billion, compared to $1.07 billion in 9M’25.
The insurer’s net loss ratio was 64.6%, down 5.6 points compared to 70.2% in the prior-year quarter, reflecting a lower ceded premium ratio.
Universal’s combined ratio improved to 91% for this quarter, compared to 96.4%. For 9M’26, the CoR was 90.8% compared to 96.4% in 9M’25. This improved ratio was driven by a lower net loss ratio, partly offset by a higher net expense ratio.
The insurer’s net income for Q3’26 was $52.5 million, compared to $39.8 million in Q3’26, reflecting growth of 31.8%, driven by higher underwriting and net investment income. For 9M’26, net income was up 42.7% to $165 million compared to $116 million for 9M’25.
Additionally, net investment income for Q3’26 improved to $21.5 million from $18.3 million in Q3’25, due to higher invested assets and fixed income reinvestment yields. For 9M’26, investment income was $61 million, compared to $51 million in 9M’25.
Commissions, policy fees and other revenue were $19.6 million, down 10.8% from Q3’25, primarily reflecting Universal’s new reinsurance program.
Stephen J. Donaghy, Chief Executive Officer, Universal, commented, “In the quarter, we delivered a very strong 32.7% annualized return on common equity, driven by solid underwriting and revenue performance. Our net loss ratio continues to improve and new business trends are solid, including 8% growth in policies in force.”
“Subsequent to quarter end, Hurricane Isaias made landfall near Destin in the western Florida Panhandle as a Category 2 hurricane before quickly weakening as it moved inland. Our claims team responded immediately, deploying field adjusters to affected communities and working directly with policyholders to expedite inspections and claims payments.
“Our priority remains helping our customers recover and return to normal as quickly as possible. While we recognize the challenges this storm has created for those impacted, claims activity to date has been less significant than initially anticipated.”
