Universal Insurance Holdings, Inc. (UVE) has authorized a new share repurchase program that will allow the company to buy back up to $20 million of its common stock through January 8, 2028. The program gives UVE the flexibility to repurchase shares in the open market at prevailing prices, providing a mechanism to return excess cash to shareholders while preserving liquidity for future opportunities.
The authorization follows a strong Q3 2025 earnings season in which UVE reported net income of $39.8 million and an adjusted diluted EPS of $1.36, beating the consensus estimate of $1.11. Cash on hand rose 56% to $405 million, a result of disciplined cost control and a rebound in the Florida homeowners’ insurance market. The company also completed a $8.1 million share repurchase in Q3 2025, underscoring its commitment to returning capital to investors.
The new program is a modest addition to UVE’s capital‑allocation strategy, complementing its regular dividend payments. By limiting the program to $20 million, the board signals confidence that the stock is undervalued while maintaining a conservative approach to cash usage. The program will be funded from the company’s cash reserves, and the board has confirmed that all repurchases will be conducted in compliance with Rule 10b‑18 and the company’s insider‑trading policy.
CEO Stephen J. Donaghy highlighted the company’s strong financial footing, noting that the “unique, organic business model allows us to consistently generate deep double‑digit ROEs, making us particularly well‑positioned to succeed in the much improved FL market.” The repurchase program reflects that confidence and reinforces UVE’s focus on shareholder value.
The authorization extends through 2028, giving UVE the flexibility to adjust the pace of buybacks as market conditions evolve. The program’s modest size and clear compliance framework suggest a measured approach to capital deployment, aimed at enhancing shareholder returns without compromising the company’s strategic growth initiatives.
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