Universal Insurance Holdings (UVE) saw its stock price soar 5.25% during intraday trading on Friday, following an announcement that its board of directors has authorized a new share repurchase program. This significant move has caught the attention of investors, driving up demand for the Florida-based insurance carrier's shares.

Under the newly authorized program, Universal Insurance may repurchase up to $20 million of its outstanding common stock through May 1, 2027. The company plans to execute these repurchases from time to time in open market transactions at prevailing market prices. This strategic decision signals management's confidence in the company's financial health and future prospects, often viewed positively by the market.

The share repurchase news comes on the heels of Universal's February announcement regarding its catastrophe reinsurance preparations. The company reported that it had already placed 92% of its first event catastrophe tower ahead of its June 1 renewal and secured significant additional multiyear capacity extending to the 2026 hurricane season. This proactive approach to risk management, coupled with the share repurchase program, appears to have bolstered investor confidence in Universal Insurance's long-term strategy.