Universal Insurance Q3 profit rises on improved underwriting, investment income
Overview
US property insurer's Q3 revenue rose 9.6% year-over-year
Net income rises, while adjusted EPS rose 41.9%, driven by improved underwriting and investment income
Company repurchased $7.4 mln in shares during the quarter
Outlook
Company says new business trends are solid with 8% growth in policies in force
Company says claims activity from Hurricane Isaias has been less significant than anticipated
Result Drivers
UNDERWRITING AND INVESTMENT INCOME - Co said higher adjusted net income was mainly due to improved underwriting and increased net investment income
PREMIUMS AND INVESTMENT YIELDS - Co said core revenue growth was driven by higher net premiums earned and increased net investment income
REINSURANCE PROGRAM - Lower ceded premium ratio due to new reinsurance program contributed to higher net premiums earned
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $439.32 mln | $386.13 mln (1 Analyst) |
Q3 Core Revenue | $444.31 mln | ||
Q3 Adjusted Net Income | $56.27 mln | ||
Q3 Net Income | $52.51 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "hold"
Wall Street's median 12-month price target for Universal Insurance Holdings Inc is $31.90, about 33.2% below its October 21 closing price of $47.73
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
Oct 20 - Insurance firm Chubb Q3 net income rises
Oct 19 - RLI Q3 revenue beats estimates on underwriting performance
Oct 22 - Insurer Old Republic's Q3 net premiums rise, helped by acquisition
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)