Loss per common share of $0.57; adjusted* loss per common share of $0.73
Direct premiums written of $574.4 million, up 8.0% from the prior year quarter
Book value per share of $14.15, up 37.0% year-over-year; adjusted book value per share of $15.76, up 12.6% year-over-year
Total capital returned to shareholders of $9.1 million, including $4.4 million of share repurchases and a $0.16 per share regular dividend

Universal Insurance Holdings (NYSE:UVE) ("Universal" or the "Company") reported third quarter 2024 results.

^*Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables.

"Our hearts and thoughts go out to those impacted by recent disasters, including Hurricanes Debbie and Helene in the third quarter and Hurricane Milton in the fourth quarter," said Stephen J. Donaghy, Chief Executive Officer. "We've been through many hurricanes in our nearly three-decade history, arming us with the requisite experience to quickly and efficiently get policyholders back on their feet. Our substantial reinsurance protection and the strong reinsurance relationships that we've built over many years provide us with the financial resilience to weather both high frequency and high severity storm seasons. As we've previously disclosed, our consolidated retention drops for subsequent events and we expect a smaller financial impact from weather in the fourth quarter, inclusive of Hurricane Milton. Non-catastrophe underwriting trends continue to improve and we're highly encouraged as we look ahead.

On a separate note, we opened for business in Wisconsin at the beginning of the month, our 19^th state. We're excited to offer our insurance products there, as we continue to expand to new markets, diversifying our book of business and growing our addressable market."

Quarterly Financial Results

Summary Financial Results

($thousands, except per share data)	Three Months Ended September 30,							Nine Months Ended September 30,
		2024			2023		Change		2024			2023		Change
GAAP comparison
Total revenues	$	387,554		$	360,048		7.6%	$	1,135,727		$	1,016,126		11.8%
Operating income (loss)	$	(16,504	)	$	(6,246	)	164.2%	$	82,130		$	67,349		21.9%
Operating income (loss) margin		(4.3	)%		(1.7	)%	(2.6) pts		7.2	%		6.6	%	0.6 pts

Net income (loss) available to common stockholders	$	(16,166	)	$	(5,918	)	173.2%	$	52,902		$	46,816		13.0%
Diluted earnings (loss) per common share	$	(0.57	)	$	(0.20	)	185.0%	$	1.80		$	1.54		16.9%

Annualized ROCE		(16.3	)%		(7.4	)%	(8.9) pts		19.0	%		21.2	%	(2.2) pts
Book value per share, end of period	$	14.15		$	10.33		37.0%	$	14.15		$	10.33		37.0%

Non-GAAP comparison¹
Core revenue	$	381,401		$	361,764		5.4%	$	1,125,501		$	1,015,060		10.9%
Adjusted operating income (loss)	$	(22,657	)	$	(4,530	)	400.2%	$	71,904		$	66,283		8.5%
Adjusted operating income (loss) margin		(5.9	)%		(1.3	)%	(4.6) pts		6.4	%		6.5	%	(0.1) pts

Adjusted net income (loss) available to common stockholders	$	(20,805	)	$	(4,624	)	349.9%	$	45,192		$	46,012		(1.8)%
Adjusted diluted earnings (loss) per common share	$	(0.73	)	$	(0.16	)	356.3%	$	1.54		$	1.51		2.0%

Annualized adjusted ROCE		(18.3	)%		(4.4	)%	(13.9) pts		14.1	%		15.4	%	(1.3) pts
Adjusted book value per share, end of period	$	15.76		$	14.00		12.6%	$	15.76		$	14.00		12.6%

Underwriting Summary
Premiums:
Premiums in force	$	2,046,310		$	1,914,493		6.9%	$	2,046,310		$	1,914,493		6.9%
Policies in force		844,539			807,553		4.6%		844,539			807,553		4.6%

Direct premiums written	$	574,351		$	531,988		8.0%	$	1,598,797		$	1,489,216		7.4%
Direct premiums earned	$	507,745		$	474,311		7.0%	$	1,480,466		$	1,393,003		6.3%
Ceded premiums earned	$	(162,009	)	$	(143,271	)	13.1%	$	(455,747	)	$	(476,465	)	(4.3)%
Ceded premium ratio		31.9	%		30.2	%	1.7 pts		30.8	%		34.2	%	(3.4) pts
Net premiums earned	$	345,736		$	331,040		4.4%	$	1,024,719		$	916,538		11.8%

Net ratios:
Loss ratio		91.7	%		87.0	%	4.7 pts		78.1	%		78.3	%	(0.2) pts
Expense ratio		25.2	%		23.7	%	1.5 pts		24.7	%		25.2	%	(0.5) pts
Combined ratio		116.9	%		110.7	%	6.2 pts		102.8	%		103.5	%	(0.7) pts
¹ Reconciliation of GAAP to non-GAAP financial measures are provided in the attached tables. Adjusted net income (loss) available to common stockholders, adjusted diluted earnings (loss) per common share and core revenue exclude net realized gains (losses) on investments and net change in unrealized gains (losses) on investments. Adjusted operating income (loss) excludes the items above and interest and amortization of debt issuance costs. Adjusted book value per share excludes accumulated other comprehensive income (loss), net of taxes. Adjusted ROCE is calculated by dividing annualized adjusted net income (loss) available to common stockholders by average adjusted book value per share, with the denominator further excluding current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments.

Net Loss and Adjusted Net Loss

Net loss available to common stockholders was $16.2 million, compared to a net loss of $5.9 million in the prior year quarter, and adjusted net loss available to common stockholders was $20.8 million, compared to an adjusted net loss of $4.6 million in the prior year quarter. The higher adjusted net loss available to common stockholders mostly stems from lower underwriting income, partly offset by higher net investment income and commission revenue.

Revenues

Revenue was $387.6 million, up 7.6% from the prior year quarter and core revenue was $381.4 million, up 5.4% from the prior year quarter. The increase in core revenue primarily stems from higher net premiums earned, net investment income and commission revenue.

Direct premiums written were $574.4 million, up 8.0% from the prior year quarter. The increase stems from 2.1% growth in Florida and 32.9% growth in other states. Overall growth mostly reflects higher policies in force, higher rates and inflation adjustments.

Direct premiums earned were $507.7 million, up 7.0% from the prior year quarter. The increase stems from direct premiums written growth over the past twelve months.

The ceded premium ratio was 31.9%, up from 30.2% in the prior year quarter. The increase primarily reflects replacement of the Reinsurance to Assist Policyholders (RAP) layer, which was provided by the state of Florida, with private market coverage.

Net premiums earned were $345.7 million, up 4.4% from the prior year quarter. The increase is primarily attributable to higher direct premiums earned, partly offset by a higher ceded premium ratio, as described above.

Net investment income was $15.4 million, up from $12.8 million in the prior year quarter. The increase primarily stems from higher fixed income reinvestment yields and higher invested assets.

Commissions, policy fees and other revenue were $20.3 million, up 12.7% from the prior year quarter. The increase primarily reflects replacement of the RAP layer with private market coverage and replacement of the catastrophe bond with traditional reinsurance coverage in the 2024-2025 program.

Margins

The operating loss margin was 4.3%, compared to an operating loss margin of 1.7% in the prior year quarter. The adjusted operating loss margin was 5.9%, compared to an adjusted operating loss margin of 1.3% in the prior year quarter. The higher adjusted operating loss margin primarily reflects a higher net combined ratio, partly offset by higher net investment income and commission revenue.

The net loss ratio was 91.7%, up 4.7 points compared to the prior year quarter. The increase primarily reflects higher weather losses, mostly from Hurricane Helene, partly offset by more favorable prior year reserve development.

The net expense ratio was 25.2%, up 1.5 points from 23.7% in the prior year quarter. The increase was primarily driven by higher policy acquisition costs associated with growth outside Florida and higher other operating costs.

The net combined ratio was 116.9%, up 6.2 points compared to the prior year quarter. The increase reflects higher net loss and expense ratios, as described above.

Capital Deployment

During the third quarter, the Company repurchased approximately 226 thousand shares at an aggregate cost of $4.4 million. The Company's current share repurchase authorization program has approximately $10.3 million remaining.

On July 11, 2024, the Board of Directors declared a quarterly cash dividend of 16 cents per share of common stock, payable on August 9, 2024, to shareholders of record as of the close of business on August 2, 2024.

Conference Call and Webcast

Friday, October 25, 2024 at 10:00 a.m. ET
Investors and other interested parties may listen to the call by accessing the online, real-time webcast at universalinsuranceholdings.com/investors or by registering in advance via teleconference at https://register.vevent.com/register/BI790e26e2fbb842a28dbb61116474c3ae. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. An online replay of the call will be available at universalinsuranceholdings.com/investors soon after the investor call concludes.

About Universal

Universal Insurance Holdings, Inc. (NYSE:UVE) is a holding company providing property and casualty insurance and value-added insurance services. We develop, market, and write insurance products for consumers predominantly in the personal residential homeowners lines of business and perform substantially all other insurance-related services for our primary insurance entities, including risk management, claims management and distribution. We provide insurance products in the United States through both our appointed independent agents and our direct online distribution channels, primarily in Florida. Learn more at universalinsuranceholdings.com or get an insurance quote at Clovered.com.

Non-GAAP Financial Measures and Key Performance Indicators

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the U.S. Securities and Exchange Commission ("SEC"), including core revenue, adjusted net income attributable to common stockholders and diluted adjusted earnings (loss) per common share, which exclude the impact of net realized gains (losses) on investments and net change in unrealized gains (losses) on investments. Adjusted operating income (loss) and adjusted operating income (loss) margin exclude the impact of net realized gains (losses) on investments and net change in unrealized gains (losses) on investments and interest and amortization of debt issuance costs. Adjusted common stockholders' equity and adjusted book value per share exclude accumulated other comprehensive income (loss) (AOCI), net of taxes. Adjusted return on common equity excludes after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments from the numerator and AOCI, net of taxes, and current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments from the denominator. A "non-GAAP financial measure" is generally defined as a numerical measure of a company's historical or future performance that excludes or includes amounts, or is subject to adjustments, so as to be different from the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles ("GAAP"). UVE management believes that these non-GAAP financial measures are meaningful, as they allow investors to evaluate underlying revenue and profitability trends and enhance comparability across periods. When considered together with the GAAP financial measures, management believes these metrics provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. UVE management also believes that these non-GAAP financial measures enhance the ability of investors to analyze UVE's business trends and to understand UVE's operational performance. UVE's management utilizes these non-GAAP financial measures as guides in long-term planning. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures presented in accordance with GAAP. For more information regarding our key performance indicators, please refer to the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations – Key Performance Indicators" in our forthcoming Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "will," "plan," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include commentary on plans, products and lines of business, marketing arrangements, reinsurance programs and other business developments and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, including those risks and uncertainties described under the heading "Risk Factors" and "Liquidity and Capital Resources" in our 2023 Annual Report on Form 10-K, and supplemented in our subsequent Quarterly Reports on Form 10-Q. Future results could differ materially from those described, and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information regarding risk factors that could affect the Company's operations and future results, refer to the Company's reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K and the most recent quarterly reports on Form 10-Q.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except per share data)

	September 30,			December 31,
		2024			2023
ASSETS:
Invested Assets
Fixed maturities, at fair value	$	1,276,732		$	1,064,330
Equity securities, at fair value		79,470			80,495
Other investments, at fair value		12,248			10,434
Investment real estate, net		5,618			5,525
Total invested assets		1,374,068			1,160,784
Cash and cash equivalents		333,678			397,306
Restricted cash and cash equivalents		68,635			2,635
Prepaid reinsurance premiums		418,834			236,254
Reinsurance recoverable		130,124			219,102
Premiums receivable, net		92,400			77,064
Property and equipment, net		49,358			47,628
Deferred policy acquisition costs		125,305			109,985
Goodwill		2,319			2,319
Other assets		55,797			63,484
TOTAL ASSETS	$	2,650,518		$	2,316,561

LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Unpaid losses and loss adjustment expenses	$	460,437		$	510,117
Unearned premiums		1,108,890			990,559
Advance premium		71,700			48,660
Reinsurance payable, net		420,282			191,850
Long-term debt, net		101,434			102,006
Other liabilities		87,530			132,072
Total liabilities		2,250,273			1,975,264
STOCKHOLDERS' EQUITY:
Cumulative convertible preferred stock ($0.01 par value)²		—			—
Common stock ($0.01 par value)³		472			472
Treasury shares, at cost - 19,012 and 18,303		(274,977	)		(260,779	)
Additional paid-in capital		121,003			115,086
Accumulated other comprehensive income (loss), net of taxes		(45,593	)		(74,172	)
Retained earnings		599,340			560,690
Total stockholders' equity		400,245			341,297
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,650,518		$	2,316,561

Notes:
²Cumulative convertible preferred stock ($0.01 par value): Authorized - 1,000 shares; Issued - 10 and 10 shares; Outstanding - 10 and 10 shares; Minimum liquidation preference - $9.99 and $9.99 per share.
³Common stock ($0.01 par value): Authorized - 55,000 shares; Issued - 47,298 and 47,269 shares; Outstanding 28,286 and 28,966 shares.

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
REVENUES
Net premiums earned	$	345,736		$	331,040		$	1,024,719		$	916,538
Net investment income		15,406			12,755			43,589			34,735
Net realized gains (losses) on investments		(1,146	)		(431	)		(1,534	)		(337	)
Net change in unrealized gains (losses) on investments		7,299			(1,285	)		11,760			1,403
Commission revenue		12,959			10,830			35,671			43,098
Policy fees		5,194			5,111			15,175			14,662
Other revenue		2,106			2,028			6,347			6,027
Total revenues		387,554			360,048			1,135,727			1,016,126

EXPENSES
Losses and loss adjustment expenses		316,955			287,972			800,714			717,853
Policy acquisition costs		58,665			53,180			170,100			156,877
Other operating expenses		28,438			25,142			82,783			74,047
Total operating costs and expenses		404,058			366,294			1,053,597			948,777
Interest and amortization of debt issuance costs		1,619			1,631			4,864			4,896
Income (loss) before income tax expense (benefit)		(18,123	)		(7,877	)		77,266			62,453
Income tax expense (benefit)		(1,960	)		(1,962	)		24,356			15,629
NET INCOME (LOSS)	$	(16,163	)	$	(5,915	)	$	52,910		$	46,824

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES SHARE AND PER SHARE INFORMATION (in thousands, except per share data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
Weighted average common shares outstanding - basic		28,355			29,617			28,607			30,087
Weighted average common shares outstanding - diluted		28,355			29,617			29,317			30,378
Shares outstanding, end of period		28,286			29,186			28,286			29,186
Basic earnings (loss) per common share	$	(0.57	)	$	(0.20	)	$	1.85		$	1.56
Diluted earnings (loss) per common share	$	(0.57	)	$	(0.20	)	$	1.80		$	1.54
Cash dividend declared per common share	$	0.16		$	0.16		$	0.48		$	0.48
Book value per share, end of period	$	14.15		$	10.33		$	14.15		$	10.33
Annualized return on average common equity (ROCE)		(16.3	)%		(7.4	)%		19.0	%		21.2	%

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES SUPPLEMENTARY INFORMATION (in thousands, except for Policies In Force data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
*Premiums*
Direct premiums written - Florida	$	440,018		$	430,946		$	1,255,861		$	1,225,295
Direct premiums written - Other States		134,333			101,042			342,936			263,921
Direct premiums written - Total	$	574,351		$	531,988		$	1,598,797		$	1,489,216
Direct premiums earned	$	507,745		$	474,311		$	1,480,466		$	1,393,003
Net premiums earned	$	345,736		$	331,040		$	1,024,719		$	916,538

*Underwriting Ratios - Net*
Loss and loss adjustment expense ratio		91.7	%		87.0	%		78.1	%		78.3	%
General and administrative expense ratio		25.2	%		23.7	%		24.7	%		25.2	%
Policy acquisition cost ratio		17.0	%		16.1	%		16.6	%		17.1	%
Other operating expense ratio		8.2	%		7.6	%		8.1	%		8.1	%
Combined ratio		116.9	%		110.7	%		102.8	%		103.5	%

	As of
	September 30,
		2024		2023
Policies in force
Florida		570,432		570,339
Other States		274,107		237,214
Total		844,539		807,553

Premiums in force
Florida	$	1,609,836	$	1,571,600
Other States		436,474		342,893
Total	$	2,046,310	$	1,914,493

Total Insured Value
Florida	$	187,639,152	$	190,299,057
Other States		160,357,285		130,281,463
Total	$	347,996,437	$	320,580,520

UNIVERSAL INSURANCE HOLDINGS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in thousands, except for per share data)

GAAP revenue to core revenue
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
GAAP revenue	$	387,554		$	360,048		$	1,135,727		$	1,016,126
less: Net realized gains (losses) on investments		(1,146	)		(431	)		(1,534	)		(337	)
less: Net change in unrealized gains (losses) on investments		7,299			(1,285	)		11,760			1,403
Core revenue	$	381,401		$	361,764		$	1,125,501		$	1,015,060

GAAP operating income (loss) to adjusted operating income (loss)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
GAAP income (loss) before income tax expense (benefit)	$	(18,123	)	$	(7,877	)	$	77,266		$	62,453
add: Interest and amortization of debt issuance costs		1,619			1,631			4,864			4,896
GAAP operating income (loss)		(16,504	)		(6,246	)		82,130			67,349
less: Net realized gains (losses) on investments		(1,146	)		(431	)		(1,534	)		(337	)
less: Net change in unrealized gains (losses) on investments		7,299			(1,285	)		11,760			1,403
Adjusted operating income (loss)	$	(22,657	)	$	(4,530	)	$	71,904		$	66,283

GAAP operating income (loss) margin to adjusted operating income (loss) margin
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
GAAP operating income (loss) (a)	$	(16,504	)	$	(6,246	)	$	82,130		$	67,349
GAAP revenue (b)		387,554			360,048			1,135,727			1,016,126
GAAP operating income (loss) margin (a÷b)		(4.3	)%		(1.7	)%		7.2	%		6.6	%
Adjusted operating income (loss) (c)		(22,657	)		(4,530	)		71,904			66,283
Core revenue (d)		381,401			361,764			1,125,501			1,015,060
Adjusted operating income (loss) margin (c÷d)		(5.9	)%		(1.3	)%		6.4	%		6.5	%

GAAP net income (loss) (NI) to adjusted NI (loss) available to common stockholders
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
GAAP NI (loss)	$	(16,163	)	$	(5,915	)	$	52,910		$	46,824
less: Preferred dividends		3			3			8			8
GAAP NI (loss) available to common stockholders (e)		(16,166	)		(5,918	)		52,902			46,816
less: Net realized gains (losses) on investments		(1,146	)		(431	)		(1,534	)		(337	)
less: Net change in unrealized gains (losses) on investments		7,299			(1,285	)		11,760			1,403
add: Income tax effect on above adjustments		1,514			(422	)		2,516			262
Adjusted NI (loss) available to common stockholders (f)	$	(20,805	)	$	(4,624	)	$	45,192		$	46,012

Weighted average diluted common shares outstanding (g)		28,355			29,617			29,317			30,378
Diluted earnings (loss) per common share (e÷g)	$	(0.57	)	$	(0.20	)	$	1.80		$	1.54
Diluted adjusted earnings (loss) per common share (f÷g)	$	(0.73	)	$	(0.16	)	$	1.54		$	1.51

GAAP stockholders' equity to adjusted common stockholders' equity
	As of
	September 30,			September 30,			December 31,
		2024			2023			2023
GAAP stockholders' equity	$	400,245		$	301,502		$	341,297
less: Preferred equity		100			100			100
Common stockholders' equity (h)		400,145			301,402			341,197
less: Accumulated other comprehensive (loss), net of taxes		(45,593	)		(107,115	)		(74,172	)
Adjusted common stockholders' equity (i)	$	445,738		$	408,517		$	415,369

Common shares outstanding (j)		28,286			29,186			28,966
Book value per common share (h÷j)	$	14.15		$	10.33		$	11.78
Adjusted book value per common share (i÷j)	$	15.76		$	14.00		$	14.34

GAAP return on common equity (ROCE) to adjusted ROCE
	Three Months Ended						Nine Months Ended						Year Ended
	September 30,						September 30,						December 31,
		2024			2023			2024			2023			2023
Actual or Annualized NI (loss) available to common stockholders (k)	$	(64,664	)	$	(23,672	)	$	70,536		$	62,421		$	66,813
Average common stockholders' equity (l)		396,641			317,987			370,671			294,599			314,497
ROCE (k÷l)		(16.3	)%		(7.4	)%		19.0	%		21.2	%		21.2	%
Annualized adjusted NI (loss) available to common stockholders (m)	$	(83,220	)	$	(18,496	)	$	60,256		$	61,349		$	58,657

Adjusted average common stockholders' equity⁴(n)		454,977			420,120			426,699			399,646			399,396
Adjusted ROCE (m÷n)		(18.3	)%		(4.4	)%		14.1	%		15.4	%		14.7	%

⁴Adjusted average common stockholders' equity excludes current period after-tax net realized gains (losses) on investments and net change in unrealized gains (losses) on investments.

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Universal Reports Third Quarter 2024 Results