FORT LAUDERDALE, FL—Sean P. Downes, Executive Chairman of Universal Insurance Holdings, Inc. (NYSE:UVE), recently sold 20,000 shares of the company's common stock. The shares were sold at a weighted average price of $20.2104, resulting in a total transaction value of approximately $404,208. Following this sale, Downes holds 1,062,262 shares directly. Additionally, he maintains indirect ownership of 18,000 shares through his children and 2,000 shares through his spouse. The transaction was completed on October 31, 2024, as reported in a recent SEC filing.
In other recent news, Universal Insurance Holdings Inc . reported an adjusted loss per common share of $0.73 in its third-quarter financial results, a decrease from the same period last year. The company noted that this was primarily due to lower underwriting income, exacerbated by recent hurricanes. Despite these challenges, Universal Insurance remains hopeful about non-catastrophe underwriting trends and its expansion into new markets, specifically Wisconsin.
The company's direct premiums written increased by 8%, with substantial growth outside of Florida. It also repurchased 226,000 shares for $4.4 million and declared a quarterly dividend of $0.16 per share. However, its net combined ratio deteriorated to 116.9%, driven by higher net loss and expense ratios.
Analysts noted that the net loss ratio increased due to higher weather-related losses, primarily from Hurricane Helene. They also pointed out an increase in the net expense ratio, mainly due to increased policy acquisition costs and operating expenses. Despite these challenges, Universal Insurance's core revenue is up by 5.4% year-over-year, supported by higher net premiums earned and commission revenue.
Universal Insurance's expansion into Wisconsin marks its presence in 19 states and is expected to diversify the company's book of business. With substantial reinsurance protection providing financial resilience against severe weather events, the company remains cautiously optimistic about the future.
InvestingPro Insights
Following Sean P. Downes' recent stock sale, investors may be interested in additional financial insights about Universal Insurance Holdings, Inc. (NYSE:UVE). According to InvestingPro data, the company's market capitalization stands at $570.53 million, with a P/E ratio of 7.93, suggesting a relatively low valuation compared to earnings.
UVE has demonstrated solid revenue growth, with a 12.23% increase over the last twelve months as of Q3 2024, reaching $1.51 billion. This growth trend is also reflected in the company's quarterly performance, with a 7.64% revenue increase in Q3 2024.
InvestingPro Tips highlight that Universal Insurance Holdings has maintained dividend payments for 19 consecutive years, which may appeal to income-focused investors. The current dividend yield is 3.86%, as of the latest data. Additionally, analysts predict the company will remain profitable this year, aligning with its positive earnings track record.
It's worth noting that while UVE has shown strong performance in some areas, an InvestingPro Tip indicates that the company is trading at a high P/E ratio relative to near-term earnings growth. This suggests investors should carefully consider the stock's valuation in relation to its growth prospects.
For a more comprehensive analysis, InvestingPro offers 5 additional tips for UVE, providing deeper insights into the company's financial health and market position.
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