Universal Insurance sets $20 million stock buyback plan

FORT LAUDERDALE - Universal Insurance Holdings, Inc. (NYSE: UVE), a provider of property and casualty insurance with a market capitalization of $681 million and annual revenue of $1.55 billion, announced a new share repurchase initiative. The company’s Board of Directors has approved a plan to buy back up to $20 million of its outstanding common stock through May 1, 2027.

The repurchases, which are set to occur in open market transactions at prevailing market prices, will be conducted in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as well as the company’s insider trading policy.

Universal Insurance Holdings operates primarily in the personal residential homeowners segment, offering its products across the United States, with a strong presence in Florida. The company markets its insurance products through a network of appointed independent agents and direct online channels. According to InvestingPro, the company has maintained dividend payments for 20 consecutive years, currently offering a 3.18% dividend yield, and has remained profitable over the last twelve months. For deeper insights into UVE’s financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

This move comes as part of the company’s broader strategy to manage its capital effectively and deliver value to its shareholders. The company has demonstrated strong financial performance with a P/E ratio of 10.23 and has shown robust momentum with a 22.7% return over the past six months. Share repurchase programs are often used by companies to return excess capital to shareholders and can be a signal of the management’s confidence in the company’s financial stability and future prospects.

It is important to note that while share buybacks can potentially improve earnings per share by reducing the number of shares outstanding, the actual impact depends on various factors, including market conditions and the company’s performance.

The press release also contained forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These statements are based on expectations and assumptions as of the date of the press release.

Investors are advised that this announcement is based on a press release statement from Universal Insurance Holdings, Inc., and should consider the risks and uncertainties mentioned in the company’s SEC filings, including its Annual Report on Form 10-K and quarterly reports on Form 10-Q, when evaluating the company’s prospects.

The share repurchase program reflects Universal Insurance Holdings’ ongoing commitment to its strategic priorities and financial discipline as it continues to serve its customers and stakeholders. InvestingPro analysis suggests the stock is currently undervalued, with additional ProTips and detailed valuation metrics available to subscribers. The company’s comprehensive financial data and future outlook can be found in the exclusive Pro Research Report, which provides in-depth analysis of UVE’s market position and growth potential.

In other recent news, Universal Insurance Holdings Inc. reported its first-quarter 2025 financial results, revealing a strong performance that surpassed market expectations. The company announced adjusted diluted earnings per share (EPS) of $1.44, significantly exceeding the anticipated $1.12. Additionally, Universal Insurance’s revenue reached $467.08 million, outperforming the forecasted $459.56 million. The revenue growth was primarily driven by an 8.2% year-over-year increase in core revenue and a 4.7% rise in direct premiums written.

Universal Insurance declared a quarterly dividend of $0.16 per share, reinforcing its commitment to returning value to shareholders. The company’s net combined ratio improved to 95%, indicating efficient operations despite a slight increase in the net expense ratio. Analysts from Research and Dowling and Partners raised questions during the earnings call about the company’s growth prospects and reinsurance strategy. CEO Steve Donaghy highlighted the company’s focus on profitability and strategic management, while CFO Frank Wilcox discussed the conservative financial approach. Looking forward, Universal Insurance anticipates favorable reinsurance market conditions and expects continued market stabilization, particularly in Florida.

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