UNIVERSAL INSURANCE HOLDINGS, INC.

Previous wording

Unless the context otherwise requires, all references to “we,” “us,” “our,” and “Company” refer to Universal Insurance Holdings, Inc. (“UVE”) and its wholly-owned subsidiaries. You should read the following discussion together with our unaudited condensed consolidated financial statements (“Financial Statements”) and the related notes thereto included in “Part I, Item 1—Financial Statements,” and our audited consolidated financial statements and the related notes thereto included in “Part II, Item 8—Financial Statements and Supplementary Data” in our Annual Report on Form 10-K for the year ended December 31, 2025. Operating results for any one quarter are not necessarily indicative of results to be expected for any quarter or for the year.

Current wording

Unless the context otherwise requires, all references to “we,” “us,” “our,” and “Company” refer to Universal Insurance Holdings, Inc. (“UVE”) and its wholly-owned subsidiaries. You should read the following discussion together with our unaudited condensed consolidated financial statements (“Financial Statements”) and the related notes thereto included in “Part I, Item 1—Financial Statements,” and our audited consolidated financial statements and the related notes thereto included in “Part II, Item 8—Financial Statements and Supplementary Data” in our Annual Report on Form 10-K for the year ended December 31, 2025. Operating results for any one quarter are not necessarily indicative of results to be expected for any other quarter or for the year.

Previous wording

We are a vertically integrated insurance holding company focused primarily on personal residential homeowners insurance. Our insurance subsidiaries, Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC” and, together with UPCIC, the “Insurance Entities”), write homeowners and related property insurance through appointed independent agents and online distribution channels across 19 states. Our integrated operating model allows us to manage underwriting, product design, distribution, risk management and claims handling through affiliated service companies, which supports consistency in execution and provides additional fee-based revenue streams.

Current wording

We are a vertically integrated insurance holding company focused primarily on personal residential homeowners insurance. Our insurance subsidiaries, Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC” and, together with UPCIC, the “Insurance Entities”), write homeowners and related property insurance through appointed independent agents and online distribution channels across 19 states. Our vertically integrated operating model includes the Insurance Entities and affiliated service companies that support key aspects of the insurance value chain, including product design, distribution, underwriting, risk management, claims administration and other operational functions. This structure supports the Company’s operations by integrating key insurance and service functions, promoting consistent execution and providing operating and claims information that facilitates underwriting, pricing and claims decisions, and can enhance holding company liquidity. This liquidity is a primary source of capital available to support the Insurance Entities when needed, subject to the considerations described in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K.

Previous wording

During 2026, we continued to pursue selective growth in Florida and other states where market conditions have improved or otherwise support attractive risk-adjusted returns. In Florida, legislative reforms enacted in late 2022 have contributed to improved claim and litigation trends on policies issued or renewed after the reforms, supporting our decision to expand new homeowners writings in most territories, introduce new coverage options and adjust rates. Outside Florida, we continued to refine rates, coverage offerings and underwriting criteria in response to inflation, weather risk, reinsurance costs and other market conditions. These actions are intended to support growth while maintaining underwriting discipline and geographic diversification.

Current wording

During 2026, we continued to pursue disciplined growth in Florida and other states where market conditions support attractive risk-adjusted returns. In Florida, the combination of improved claim and litigation trends attributable to the 2022 statutory reforms, increased product availability, and a more competitive authorized market supported our decision to expand new homeowners’ writings in most territories, introduce additional coverage options and adjust rates, resulting in an overall average rate decrease. Outside of Florida, we continued to refine the Insurance Entities’ rates, coverage offerings and underwriting criteria in response to inflation, weather risk, reinsurance costs and other market conditions. These actions are intended to foster profitable growth while maintaining underwriting discipline and managing geographic and catastrophe exposure.

Previous wording

Although Florida represented approximately 72.9% of direct premiums written for the six months ended June 30, 2026, it represented approximately 47.1% of total insured value as of June 30, 2026. This difference reflects the higher premium levels associated with Florida’s catastrophe exposure, reinsurance costs and market conditions, while also demonstrating the Company’s continued diversification of insured exposure outside Florida. Management views this diversification as an important component of its long-term strategy to balance growth, underwriting profitability and catastrophe risk across its multi-state homeowners insurance platform.

Current wording

Although Florida represented approximately 70.7% of direct premiums written for the nine months ended September 30, 2026, it represented approximately 46.2% of total insured value as of September 30, 2026. This difference reflects the higher premium levels associated with Florida’s catastrophe exposure, reinsurance costs and market conditions. These metrics demonstrate that the Company maintains meaningful insured exposure outside Florida while selectively pursuing growth opportunities in its largest market. Management seeks to balance profitable growth, underwriting performance, geographic diversification and catastrophe risk across its multi-state homeowners insurance platform.

Previous wording

We seek to achieve long-term rate adequacy and earnings for the Insurance Entities while managing our risks through market cycles and looking to take advantage of what we believe to be market opportunities. We currently write insurance policies in 19 states. Although the majority of our policies cover properties in Florida, our business in other states continues to grow as a percentage of our total policies in force and premium volume.

Current wording

We seek to achieve long-term rate adequacy and underwriting profitability while managing risk through market cycles and pursuing opportunities that meet our risk-adjusted return objectives. We currently write insurance policies in 19 states and evaluate each market based on factors including rate adequacy, expected loss and LAE, reinsurance costs, catastrophe exposure, regulatory conditions, and competitive dynamics. Although a majority of our policies cover properties in Florida, our business in other states continues to grow as a percentage of our total policies in force and premium volume. We use this multi-state platform to pursue profitable growth while maintaining underwriting discipline and managing concentration risk.

Previous wording

Other states have experienced less disruption than Florida. The Insurance Entities therefore face a high but stable degree of competition when entering and expanding into other states. In these states, the Insurance Entities often compete with national or regional insurers with greater experience in the specific markets. Our growth plan therefore includes developing relationships with the states’ independent agents and gradually expanding our presence as we gain familiarity with new markets. Over time, this has allowed our business outside of Florida to steadily increase as a percentage of our overall business.

Current wording

Other states have experienced less disruption than Florida and generally present a high but stable degree of competition. In these markets, the Insurance Entities often compete with national or regional insurers that have greater local experience, established distribution relationships, and longstanding market presence. Our approach is therefore to develop relationships with independent agents, refine rates and underwriting criteria as we gain market experience, and expand gradually where expected returns meet our objectives. This measured approach has allowed our business outside Florida to increase steadily as a percentage of our overall business while supporting geographic diversification and disciplined deployment of capital.

Previous wording

The Insurance Entities’ loss and LAE experience on Florida claims has improved significantly for policies written after the statutory reforms. This is attributable to reduced incentives for policyholders, vendors and their representatives to pursue questionable, inflated and litigated claims. In addition, the Company’s own initiatives, coupled with enhanced claim-handling standards included in the reforms, have resulted in faster claims-handling times, process improvements and greater customer satisfaction.

Current wording

The Insurance Entities’ loss and LAE experience on Florida claims has improved significantly for policies written after the statutory reforms. This improvement is attributable to reduced incentives for policyholders, vendors and their representatives to pursue questionable, inflated and litigated claims. In addition, the Company’s initiatives and enhanced claim-handling standards have resulted in faster claim-handling times, process improvements and greater customer satisfaction. These trends support the Company’s ability to evaluate additional growth opportunities in Florida, although the Company continues to monitor the potential impacts of weather activity, claim frequency and severity, inflation and changes in the legal and regulatory environment on its growth appetite.

Previous wording

The Company has increasingly used video and other technology to facilitate review of damaged property and improve efficiency in the claims process. As technologies evolve, the Company continually evaluates and implements enhancements to streamline workflows and enhance the customer experience. The Company also regularly monitors regulatory developments pertaining to uses of technology, including oversight of AI in claims processes and other aspects of our operations.

Current wording

The Company increasingly uses video and other technology to facilitate review of damaged property, shorten claim-handling times and improve efficiency in the claims process. As technologies evolve, the Company evaluates and implements enhancements intended to streamline workflows, support claim administration, and improve the customer experience. These capabilities may also improve the timeliness and quality of claims data used to assess loss trends and inform underwriting and pricing decisions.

Previous wording

Across the United States, third-party financing contributes to expansion of claims litigation and vendors’ efforts to solicit claims. Some states have enacted laws intended to curtail or require disclosure of litigation financing. The largest state in which we write business, Florida, does not currently have any such laws. It is difficult to quantify the impact on losses, LAE and ultimately premium attributable to vendor-related financing and litigation financing.

Current wording

Across the United States, third-party financing contributes to the expansion of claims litigation and vendors’ efforts to solicit claims. Some states have enacted laws intended to curtail or require disclosure of litigation financing, while Florida, our largest market, does not currently have such laws. Although the effect of vendor-related and litigation financing on losses, LAE and premiums is difficult to quantify, these activities may affect claim frequency, severity and settlement patterns. We consider these trends when evaluating loss expectations, rate adequacy and underwriting opportunities across our markets.

Previous wording

Data analytics, artificial intelligence (“AI”) and other emerging technologies are increasingly affecting the property and casualty insurance industry. Insurers, technology providers, vendors and other market participants continue to invest in tools intended to improve the speed, accuracy and cost-effectiveness of insurance operations. These technologies may create opportunities to improve underwriting and risk selection, claims handling, fraud detection, customer service, operational efficiency and analytical capabilities. In the residential property insurance market, emerging technologies are increasingly used to evaluate property characteristics, model catastrophe and non-catastrophe risk, support inspection and underwriting processes, triage or estimate claims, detect potentially questionable claim activity, and assist with communications. The effective use of these technologies depends on the quality of underlying data, governance structures in place, integration with existing systems, vendor performance and continued human oversight.

Current wording

Data analytics, AI, and other emerging technologies are increasingly affecting how insurers operate and compete for business and how consumers evaluate insurance products. In the residential property insurance market, insurers and other market participants are increasingly using these technologies to evaluate property characteristics, model catastrophe and non-catastrophe risk, support inspection and underwriting processes, triage or estimate claims, detect potentially questionable claim activity and assist with communications. Consumers also increasingly may use AI-enabled search, comparison and advisory tools to evaluate insurers, coverage combinations, deductibles, pricing and other policy features and to identify offerings that meet their preferences. These developments may increase comparison shopping and place greater importance on clear product design, competitive coverage options, digital accessibility and consistent customer and agent experiences. The effectiveness of AI-enabled tools depends on data quality, governance, systems integration, vendor performance and continued human oversight.

Previous wording

In 2024, for Florida, UPCIC implemented new homeowners policy rates, resulting in an average rate decrease of 1.5% compared to previous rates, effective for new policies August 15, 2024 and renewal policies May 17, 2025. In October 2025, UPCIC implemented new homeowners policy rates for new and renewal business policies, resulting in an average rate decrease of 5.1% compared to previous rates with an effective date of October 16, 2025. These Florida rate changes were implemented under use and file rating laws and subsequently received regulatory approval.

Current wording

In October 2025, for Florida, UPCIC implemented new homeowners policy rates for new and renewal business policies, resulting in an average rate decrease of 5.1% compared to previous rates with an effective date of October 16, 2025. These Florida rate changes were implemented under use and file rating laws and subsequently received regulatory approval. In October 2026, UPCIC implemented new homeowners policy rates for new and renewal business policies in Florida, pending regulatory approval, resulting in an average rate decrease of 5.0% compared to previous rates with an effective date of October 16, 2026.

Previous wording

Book Value Per Common Share ―total stockholders’ equity, adjusted for preferred stock liquidation, divided by the number of common shares outstanding as of a reporting period. Book value per common share is the excess of assets over liabilities at a reporting period attributed to each share of common stock. Changes in book value per common share informs shareholders of retained equity in the Company on a per share basis, which may assist in understanding market value trends for the Company’s stock.

Current wording

Book Value Per Common Share ―total stockholders’ equity, adjusted for preferred stock liquidation, divided by the number of common shares outstanding as of a reporting period. Book value per common share is the excess of assets over liabilities at a reporting period attributed to each share of common stock. Changes in book value per common share inform shareholders of retained equity in the Company on a per share basis, which may assist in understanding market value trends for the Company’s stock.

Previous wording

Debt-to-Equity Ratio ― debt, including current portion divided by stockholders’ equity. This ratio helps management measure the amount of financing leverage in place in relation to equity and allows investors to evaluate future leverage capacity.

Current wording

Debt-to-Equity Ratio ― debt, net of issuance costs, including current portion divided by stockholders’ equity. This ratio helps management measure the amount of financing leverage in place in relation to equity and allows investors to evaluate future leverage capacity.

Previous wording

Reinsurance enables our Insurance Entities to limit potential exposures to catastrophic events. Developing and implementing our reinsurance strategy to adequately protect our policyholders, balance sheet, and Insurance Entities in the event of one or more catastrophes while maintaining efficient reinsurance costs has been our key strategic priority. To limit the Insurance Entities’ potential exposure to catastrophic events, we purchase significant reinsurance from third-party reinsurers and the FHCF. The FLOIR requires the Insurance Entities, like all residential property insurance companies doing business in Florida, to have a certain amount of capital and reinsurance coverage to cover losses upon the occurrence of a single catastrophic event and a series of catastrophic events occurring in the same hurricane season. The Insurance Entities’ 2026-2027 catastrophic reinsurance program meets the FLOIR’s requirements, which are based on, among other things, successfully demonstrating cohesive and comprehensive reinsurance coverages that protect the policyholders of our Insurance Entities under a series of stress test catastrophe loss scenarios. Similarly, the Insurance Entities’ 2026-2027 catastrophic reinsurance programs meet the stress test and review requirements of Demotech, Inc., for maintaining Financial Stability Ratings® of “A” (Exceptional) and of Kroll for maintaining insurer financial strength rating of “A-”.

Current wording

Reinsurance enables our Insurance Entities to limit potential exposures to catastrophic events. Developing and implementing our reinsurance strategy to adequately protect our policyholders, balance sheet, and Insurance Entities in the event of one or more catastrophes while maintaining efficient reinsurance costs has been our key strategic priority. To limit the Insurance Entities’ potential exposure to catastrophic events, we purchase significant reinsurance from third-party reinsurers and the FHCF. The FLOIR requires the Insurance Entities, like all residential property insurance companies doing business in Florida, to have a certain amount of capital and reinsurance coverage to cover losses upon the occurrence of a single catastrophic event and a series of catastrophic events occurring in the same hurricane season. The Insurance Entities’ 2026-2027 catastrophe reinsurance program meets the FLOIR’s requirements, which are based on, among other things, successfully demonstrating cohesive and comprehensive reinsurance coverages that protect the policyholders of our Insurance Entities under a series of stress test catastrophe loss scenarios. Similarly, the Insurance Entities’ 2026-2027 catastrophe reinsurance programs meet the stress test and review requirements of Demotech, Inc., for maintaining Financial Stability Ratings® of “A” (Exceptional) and of Kroll for maintaining insurer financial strength ratings of “A-”.

Previous wording

•All States first event tower extends to $2.623 billion with no co-participation in any of the layers, no limitation on loss adjustment expenses and no accelerated deposit premiums.

Current wording

•All States first event tower extends to $2.768 billion with no co-participation in any of the layers, no limitation on loss adjustment expenses and no accelerated deposit premiums.

Previous wording

•Assuming a first event completely exhausts the $2.623 billion tower, the second event exhaustion point would be $1.209 billion.

Current wording

•Assuming a first event completely exhausts the $2.768 billion tower, the second event exhaustion point would be $1.209 billion.

Previous wording

•First event layer of 100% of$66 million in excess of$45 million is established by Universal Insurance Holdings, Inc (“UIH”) in captive insurance arrangement. See“Item 1—Note 14 (Variable Interest Entities).”

Current wording

•First event layer of 100% of$66 million in excess of$45 million is established by UVE in a captive insurance arrangement. See“Item 1—Note 14 (Variable Interest Entities).”

Previous wording

•For the FHCF Reimbursement Contracts effective June 1, 2026, both UPCIC and APPCIC have continued the election of the 90% coverage level. We estimate the total mandatory FHCF layer will provide approximately$1.39 billion of coverage for UPCIC, which inures to the benefit of the open market coverage secured from private reinsurers and we estimate the total mandatory FHCF layer will provide approximately$25.0 million of coverage for APPCIC, which inures to the benefit of the open market coverage secured from private reinsurers.

Current wording

•For the FHCF Reimbursement Contracts effective June 1, 2026, both UPCIC and APPCIC have continued the election of the 90% coverage level. We estimate the total mandatory FHCF layer will provide approximately$1.53 billion of coverage for UPCIC, which inures to the benefit of the open market coverage secured from private reinsurers and we estimate the total mandatory FHCF layer will provide approximately$26.4 million of coverage for APPCIC, which inures to the benefit of the open market coverage secured from private reinsurers.

Previous wording

Results of Operations for the three months ended June 30, 2026, or second quarter, are compared to the same period last year, unless stated otherwise

Current wording

Results of Operations for the three months ended September 30, 2026, or third quarter, are compared to the same period last year, unless stated otherwise.

Previous wording

•As of June 30, 2026, total policies in force increased 62,028, or 7.1%, to 934,371, compared with June 30, 2025. The increase included 31,722 policies, or 5.7%, in Florida and 30,306 policies, or 9.7%, in other states.

Current wording

•As of September 30, 2026, total policies in force increased 69,723, or 7.9%, to 953,611, compared with September 30, 2025. The increase included 36,558 policies, or 6.5%, in Florida and 33,165 policies, or 10.3%, in other states.

Previous wording

•Net investment income increased $2.96 million, or 17.1%, to $20.2 million in the second quarter of 2026, compared with $17.3 million in the second quarter of 2025, driven by higher book yields and increased invested assets.

Current wording

•Net investment income increased $3.1 million, or 17.1%, to $21.5 million in the third quarter of 2026, compared with $18.3 million in the third quarter of 2025, driven by higher book yields and increased invested assets.

Previous wording

•During the three months ended June 30, 2026, the Company repurchased 121,808 shares for $4.5 million at an average price of $37.19 per share. As of June 30, 2026,$8.6 million remains under the share repurchase plan, which expires January 8, 2028.

Current wording

•During the three months ended September 30, 2026, the Company repurchased 173,725 shares for $7.4 million at an average price of $42.75 per share. As of September 30, 2026, $1.1 million remains under the share repurchase plan, which expires January 8, 2028.

Previous wording

•The combined ratio was 91.6% for the three months ended June 30, 2026 and 90.7% year to date, compared with 97.8% for the three months ended 2025 and 96.4% year to date as of June 30, 2025, reflecting operating improvements.

Current wording

•The combined ratio was 91.0% for the three months ended September 30, 2026 and 90.8% year to date, compared with 96.4% for the three months ended September 30, 2025 and 96.4% year to date as of September 30, 2025, reflecting operating improvements and reduced loss activity, bolstered by diminished storm activity in 2025 and the first three quarters of 2026.

Previous wording

•Book value per share was $22.89 at June 30, 2026, compared to $19.67 at December 31, 2025, an increase of 16.4%.

Current wording

•Book value per common share was $23.37 at September 30, 2026, compared to $19.67 at December 31, 2025, an increase of 18.8%.

Previous wording

•On April 10, 2026, the Company declared a quarterly cash dividend of $0.16 per share of common stock, payable on May 15, 2026, to shareholders of record on May 8, 2026.

Current wording

•On July 8, 2026, the Company declared a quarterly cash dividend of $0.16 per share of common stock, paid on August 7, 2026, to shareholders of record on July 31, 2026.

Previous wording

For the three months ended June 30, 2026, net income was $59.2 million compared to $35.1 million in 2025, with diluted EPS increasing to $2.04 from $1.21. Growth in premiums earned, net, investment income, and unrealized gains contributed to improved performance. Lower realized gains and commission revenue partially offset these increases. While losses and LAE costs were reduced, these were partially offset by increases in acquisition costs and other operating costs and expenses. The net loss ratio declined to 64.8% from 72.3% in 2025, and the combined ratio was 91.6%, down from 97.8% in 2025. No catastrophe events or prior-year reserve developments occurred in either period. See the“Overview—Trends and Geographical Distribution—Florida Trends”section for more information.

Current wording

For the three months ended September 30, 2026, net income was $52.5 million compared to $39.8 million in 2025, with diluted EPS increasing to $1.80 from $1.38. Growth in premiums earned, net, investment income, and realized gains contributed to improved performance. Unrealized losses and lower commission revenue partially offset these increases, as well as increases in losses and loss adjustment expenses, acquisition costs, and other operating costs and expenses. The net loss ratio declined to 64.6% from 70.2% in 2025, and the combined ratio was 91.0%, down from 96.4% in 2025. No catastrophe events or prior-year reserve development occurred in 2026, compared with $3.9 million of prior year development in 2025. See the“Overview—Trends and Geographical Distribution—Florida Trends”section for more information.

Previous wording

The Company’s 2026 premium growth reflects management’s strategy to expand the homeowner’s insurance book in Florida and other states while responding to market conditions through targeted underwriting, product, rate, and marketing actions. In Florida, the Insurance Entities resumed writing new homeowners and dwelling business in most areas, introduced water damage coverage options, and filed for an overall 5.1% homeowners rate reduction, which helped improve competitiveness and supported new business production. Outside Florida, the Insurance Entities continued to pursue rate increases and refine coverage offerings to address inflation, claim cost trends, reinsurance costs, weather risk, and other market forces. Policies in force, premium in force, and total insured value increased year over year, reflecting organic growth, expanded marketing initiatives, new product offerings, and additional open territories. Management remains focused on disciplined growth, risk selection, geographic diversification, rate adequacy, and product design to support profitable expansion across the Company’s multi-state homeowner’s platform.

Current wording

The Company’s 2026 premium growth reflects management’s strategy to expand the homeowners insurance book in Florida and other states while responding to market conditions through targeted underwriting, product, rate, and marketing actions. In Florida, the Insurance Entities resumed writing new homeowners and dwelling business in most areas, introduced water damage coverage options, and filed for an overall 5.1% homeowners rate reduction in October 2025, which helped improve competitiveness and supported new business production. Outside Florida, the Insurance Entities continued to pursue rate increases and refine coverage offerings to address inflation, claim cost trends, reinsurance costs, weather risk, and other market forces. Policies in force, premium in force, and total insured value increased year over year, reflecting organic growth, expanded marketing initiatives, new product offerings, and additional open territories. Management remains focused on disciplined growth, risk selection, geographic diversification, rate adequacy, and product design to support profitable expansion across the Company’s multi-state homeowners platform.

Previous wording

For the three months ended June 30, 2026, direct premiums written totaled $621.3 million, representing an increase of $24.6 million or 4.1%. This growth was due to a $21.1 million, or 14.4%, increase from other states and a $3.5 million or 0.8%, increase in Florida compared to the same period in 2025. Direct premiums written have increased in 14 states we operate in since June 30, 2025.

Current wording

For the three months ended September 30, 2026, direct premiums written totaled $608.9 million, representing an increase of $16.1 million or 2.7%. This growth was due to a $30.3 million, or 18.5%, increase from other states and a $14.2 million, or 3.3%, decrease in Florida compared to the same period in 2025. Direct premiums written have increased in 17 states we operate in compared to September 30, 2025.

Previous wording

As of June 30, 2026, policies in force rose by 62,028 or 7.1%, premium in force increased by $90.5 million or 4.3%, and total insured value grew by $39.6 billion or 10.5%, compared to June 30, 2025, as noted in the following table (in thousands, except policies in force data):

Current wording

As of September 30, 2026, policies in force rose by 69,723 or 7.9%, premium in force increased by $93.7 million or 4.4%, and total insured value grew by $44.6 billion, or 11.6%, compared to September 30, 2025, as noted in the following table (in thousands, except policies in force data):

Previous wording

Direct premiums earned increased $21.4 million, or 4.1%, for the three months ended June 30, 2026, compared with the same period in 2025, primarily reflecting the recognition of premiums written over the applicable policy terms. Premiums are generally earned ratably over the policy coverage period, so changes in direct premiums earned reflect policies written in both the current and prior periods as coverage is provided.

Current wording

Direct premiums earned increased $22.6 million, or 4.2%, for the three months ended September 30, 2026, compared with the same period in 2025, primarily reflecting the recognition of premiums written over the applicable policy terms. Premiums are generally earned ratably over the policy coverage period, so changes in direct premiums earned reflect policies written in both the current and prior periods as coverage is provided.

Previous wording

Policies in force were 934,371 on June 30, 2026, an increase of 38,444 or 4.3%, from 895,927 on December 31, 2025. As of June 30, 2026, we have policies in 19 states and are authorized to do business in Tennessee with a rate filing underway. Details on recent rate changes impacting premiums are discussed in“Overview—Trends and Geographical Distribution—Florida Trends.”

Current wording

Policies in force were 953,611 on September 30, 2026, an increase of 57,684 or 6.4%, from 895,927 on December 31, 2025. As of September 30, 2026, we have policies in 19 states and are authorized to do business in Tennessee with a rate filing underway. Details on recent rate changes impacting premiums are discussed in“Overview—Trends and Geographical Distribution—Other Trends—Summary of Recent Rate Changes.”

Previous wording

Reinsurance is a critical component of the Company’s risk management, capital, and liquidity strategy, particularly for its catastrophe-exposed Florida homeowners business. The Insurance Entities use reinsurance to reduce exposure to hurricanes and other significant insured events, protect statutory capital, support policyholder obligations, and maintain underwriting capacity in Florida and other states. Because reinsurance is integral to managing catastrophe risk, changes in pricing, availability, coverage limits, retention levels, and program structure can materially affect the Company’s results of operations, financial ratios, statutory capital position, and ability to write business. Reinsurance costs are recognized ratably over the annual contract period from June 1 through May 31.

Current wording

Reinsurance is a critical component of the Company’s risk management, capital, and liquidity strategy, particularly for its catastrophe-exposed Florida homeowners business. The Insurance Entities use reinsurance to reduce exposure to hurricanes and other significant insured events, protect statutory capital, support policyholder obligations, and maintain underwriting capacity in Florida and other states. Because reinsurance is integral to managing catastrophe risk, changes in pricing, availability, coverage limits, retention levels, and program structure can materially affect the Company’s results of operations, financial ratios, statutory capital position, and ability to write business. Reinsurance costs are reflected in ceded premiums and recognized (earned) ratably over the annual contract period from June 1 through May 31.

Previous wording

For the three months ended June 30, 2026, ceded premiums earned increased $4.3 million, or 2.6%, compared with the same period in 2025. Ceded earned premiums represented 30.8% of direct earned premiums in 2026, compared with 31.2% in 2025. Second quarter results include ceded premiums earned from the 2025–26 reinsurance program, which concluded on May 31, 2026, as well as the initial ceded premiums earned under the new 2026–27 reinsurance program beginning June 1, 2026.

Current wording

For the three months ended September 30, 2026, ceded premiums earned decreased $20.9 million, or 12.0%, compared with the same period in 2025, reflecting lower costs for the 2026-2027 treaty period compared to the 2025-2026 treaty period, which ended on May 31, 2026. Ceded earned premiums represented 27.6% of direct earned premiums in 2026, compared with 32.7% in 2025.

Previous wording

On June 1, 2026, the Insurance Entities entered into the 2026–27 catastrophic reinsurance program with lower ceded written premium, under which ceded written premium declined 12.1% to $612.6 million from $696.8 million in the prior-year period. Because reinsurance costs are earned ratably over the June 1 through May 31 contract period, the majority of the benefit of the lower-cost 2026–27 reinsurance program is expected to be recognized in ceded premiums earned over future periods.

Current wording

On June 1, 2026, the Insurance Entities entered into the 2026–27 catastrophe reinsurance program, under which ceded written premium was 12.0% lower than ceded written premium written on June 1, 2025. Because reinsurance costs are earned ratably over the June 1 through May 31 contract period, the benefit of the lower-cost 2026–27 reinsurance program will continue to be recognized in ceded premiums earned over the remaining period through May 31, 2027.

Previous wording

The 2026–27 reinsurance program provides $2.623 billion of single-event All States catastrophe capacity, including Florida, an increase of approximately $50 million over the 2025–26 treaty period. The program also includes $352 million of forward catastrophe capacity extending into the 2027–28 treaty period, including $277 million below the Florida Hurricane Catastrophe Fund layer. As of June 30, 2026, Florida represented less than 50% of the Company’s total insured value, reflecting management’s strategy to diversify catastrophe exposure by expanding the homeowners insurance book in other states while maintaining underwriting discipline in Florida. The Insurance Entities’ combined $45 million first-event statutory retention remained unchanged from the prior year.

Current wording

The 2026–27 reinsurance program provides $2.768 billion of single-event All States catastrophe capacity, including Florida, an increase of approximately $268 million over the 2025–26 treaty period. The program also includes $352 million of forward catastrophe capacity extending into the 2027–28 treaty period, including $277 million below the Florida Hurricane Catastrophe Fund layer. As of September 30, 2026, Florida represented less than 50% of the Company’s total insured value, reflecting management’s strategy to diversify catastrophe exposure by expanding the homeowners insurance book in other states while maintaining underwriting discipline in Florida. The Insurance Entities’ combined $45 million first-event statutory retention remained unchanged from the prior year.

Previous wording

Universal Insurance Holdings, Inc. (“UIH”) established a captive insurance arrangement to assume the first-event layer of $66 million in excess of the Insurance Entities’ $45 million retention as part of the 2026–27 reinsurance program. The captive is consolidated by UIH; therefore, premiums ceded to the captive and related recoveries are eliminated in UIH’s consolidated financial statements. Although the captive arrangement does not result in net ceded premium expense or reinsurance recoveries at the consolidated level, it allows the Company to retain a defined layer of catastrophe risk within the consolidated group. Management believes this structure supports the overall efficiency of the reinsurance program by helping align retained risk with the Company’s capital position, reduce reliance on third-party reinsurance for that layer, and preserve external reinsurance capacity for higher layers of catastrophe protection. See“Item 1—Note 14 (Variable Interest Entities).”

Current wording

UVE established a captive insurance arrangement to assume the first-event layer of $66 million in excess of the Insurance Entities’ $45 million retention as part of the 2026–27 reinsurance program. The captive is consolidated by UVE; therefore, premiums ceded to the captive and related recoveries are eliminated in UVE’s consolidated financial statements. Although the captive arrangement does not result in net ceded premium expense or reinsurance recoveries at the consolidated level, it allows the Company to retain a defined layer of catastrophe risk within the consolidated group. Management believes this structure supports the overall efficiency of the reinsurance program by helping align retained risk with the Company’s capital position, reduce reliance on third-party reinsurance for that layer, and preserve external reinsurance capacity for higher layers of catastrophe protection. See“Item 1—Note 14 (Variable Interest Entities).”

Previous wording

Net investment income was $20.2 million for the three months ended June 30, 2026, compared to $17.3 million for the same period in 2025, an increase of $3.0 million, or 17.1%. The increase was primarily driven by growth in average invested assets and higher average book yields, as operating cash flows and maturities were reinvested into securities with higher yields than the assets they replaced. The benefit was partially offset by lower yields on cash and cash equivalents compared with 2025, although higher cash balances in the 2026 period mitigated a portion of that decline. See“Item 1—Note 3 (Investments)” for additional information regarding investment income.

Current wording

Net investment income was $21.5 million for the three months ended September 30, 2026, compared to $18.3 million for the same period in 2025, an increase of $3.1 million, or 17.1%. The increase was primarily driven by growth in average invested assets and higher average book yields, as operating cash flows and maturities were reinvested into securities with higher yields than the assets they replaced. The benefit was partially offset by lower yields on cash and cash equivalents compared with 2025, although higher cash balances in the 2026 period mitigated a portion of that decline. See“Item 1—Note 3 (Investments)” for additional information regarding investment income.

Previous wording

The net change in unrealized gains and losses during the quarter primarily reflected increases in the fair value of equity securities held at June 30, 2026, together with the recognition in earnings of previously unrealized gains or losses on equity securities sold during the period. Changes in the fair value of fixed-maturity securities were primarily affected by interest rate movements, credit spreads, and portfolio duration. See“Analysis of Financial Condition” for additional information regarding changes in total invested assets during 2026.

Current wording

The net change in unrealized gains and losses during the quarter primarily reflected the decrease in the fair value of equity securities and other investments held at September 30, 2026, together with the recognition in earnings of previously unrealized gains or losses on equity securities sold during the period.

Previous wording

As discussed above, on June 1, 2026, the Insurance Entities entered into the 2026–27 reinsurance program with lower ceded written premium. Ceded written premium under the program decreased 12.1% year over year, reducing the premium base on which related reinsurance brokerage commissions are earned. As a result, the lower ceded premium volume under the 2026–27 reinsurance program is expected to reduce related commission revenue ratably over the remaining contract period from July 1, 2026 through May 31, 2027.

Current wording

As discussed above, on June 1, 2026, the Insurance Entities entered into the 2026–27 reinsurance program with lower ceded written premium. Ceded written premium under the program decreased 12.0% year over year, reducing the premium base on which related reinsurance brokerage commissions are earned. As a result, the lower ceded premium volume under the 2026–27 reinsurance program is expected to reduce related commission revenue ratably over the remaining contract period from October 1, 2026 through May 31, 2027.

Previous wording

Policy fee revenue represents managing general agent fees earned in connection with policies written in states where the Company is permitted to charge such fees. Policy fee revenue was $6.0 million for the three months ended June 30, 2026, compared with $5.6 million for the same period in 2025, an increase of $0.4 million, or 7.8%. The increase was primarily driven by policy growth and reflects the geographic mix of policies written in states where such fees are permitted.

Current wording

Policy fee revenue represents managing general agent fees earned in connection with policies written in states where the Company is permitted to charge such fees. Policy fee revenue was $5.6 million for the three months ended September 30, 2026, compared with $5.4 million for the same period in 2025, an increase of $0.2 million, or 4.5%. The increase was primarily driven by policy growth and reflects the geographic mix of policies written in states where such fees are permitted.