Shares of Universal Insurance Holdings Inc (UVE) are skyrocketing in Friday's trading session, surging 12.92% following the company's impressive third-quarter earnings report released late Thursday. The significant upward movement reflects investors' enthusiastic response to the insurer's financial turnaround and better-than-expected results.

Universal Insurance reported a remarkable shift in its financial performance, posting adjusted earnings of $1.38 per share for Q3, a stark contrast to the loss of $0.73 per share in the same period last year. The results handily beat the lone analyst's expectation of $1.10 per share. Additionally, the company's revenue for the quarter ended September 30 rose 4% to $359.68 million, although slightly below the analyst's forecast of $366.36 million.

The strong quarterly performance, particularly the swing from loss to profit, has significantly boosted investor confidence in Universal Insurance's business trajectory. The company has now beaten earnings estimates for four consecutive quarters, demonstrating consistent improvement in its operations. Stephen Joseph Donaghy, CEO of Universal Insurance, highlighted the company's solid performance, stating, "It was a solid quarter with a 30.6% adjusted return on common equity. Our unique organic business model allows us to consistently generate deep double-digit ROEs, making us particularly well-positioned to succeed in the much-improved Florida market."

Furthermore, the company's management emphasized their more conservative reserving process, which has increased the resilience of their balance sheet. This approach, coupled with a reduction in claims count and faster claims processing due to reduced market stresses, has contributed to the positive outlook for Universal Insurance. The improved market conditions in Florida, as well as growth in other states, have also played a role in the company's strong performance.