By Chris Munro

April 24 - (The Insurer) – Universal Insurance Holdings’ Q1 2025 combined ratio improved 0.5 points to 95.0% along as it booked earnings per share for the period that comfortably beat analysts’ consensus forecast, while CEO Stephen Donaghy revealed the carrier has already placed its June 1 incepting reinsurance program.

The Fort Lauderdale, Florida-based company’s combined ratio of 95.0% was an improvement on Q1 2024’s 95.5%.

Its loss ratio improved 1.4 points year on year to 70.5%, with the decrease primarily due to lower weather losses in the current year quarter.

The company’s expense ratio ticked up 90 basis points from the first quarter of 2024 to 24.5%, with the rise primarily driven by higher policy acquisition costs associated with the carrier’s growth outside Florida, along with higher other operating costs

Universal generated adjusted operating income of $57.1 million for Q1 2025, compared with $46.1 million in the prior-year period.

The carrier posted adjusted diluted earnings per common share of $1.44 for 2025’s first quarter, an increase on the $1.07 generated in 2024’s first quarter, and a beat on the $1.26 that was the consensus forecast of analysts, as per MarketWatch.

Universal booked $467.1 million of direct premiums written in Q1 2025, compared with $446.2 million in the prior-year period.

The increase, Universal said, stemmed from 34.7% growth in other states, partly offset by a 3.0% decrease in its Florida writings.

“Overall growth mostly reflects higher policies in force, higher rates and inflation adjustments,” the company said.

In a statement, CEO Donaghy said the company has continued to see signs that the 2022 Florida legislative reforms are working.

The reforms are “providing much needed stability to the property insurance market, which ultimately benefits policyholders with increased certainty and choice,” he said.

REINSURANCE PROGRAM PLACED

The executive also revealed Universal has already completed its 2025-2026 reinsurance renewal.

“Our program was fully supported and secured well before the June 1st inception date, something we have consistently achieved over the last few renewal cycles,” the executive said.

Donaghy noted that Universal has also secured $352 million of additional multiyear coverage, taking the company through to the 2026-2027 hurricane season.

“The program costs and coverage were consistent with our expectations,” said Donaghy.

“The solid execution of our reinsurance strategy is a testament to the strength and consistency of our long-term reinsurance partnerships, some of which span two decades,” the executive added.