Although it wasn’t a hurricane-scale disaster, Universal Insurance Holdings‘ (UVE -3.74%) first quarter wasn’t impressive enough for the market to push the company’s stock price higher. The shares lost nearly 4% of their value on Friday as a result, on a day when the S&P 500 index landed in positive territory with a 1% increase.

Double-digit growth figures, but a top-line miss

The quarterly results were published after market hours on Thursday and revealed that Universal’s total revenues were a touch under $368 million for the period. So far, so good, as this represented 16% growth over the same quarter of 2023. Yet analysts following the insurer were expecting far better — they were modeling, on average, a top line exceeding $422 million.

Universal managed to increase its non-GAAP (adjusted) net profit more impressively, and this line item topped prognosticator estimates. The company was in the black to the tune of $31.4 million ($1.07), 31% higher than the year-ago profit of $24 million. Those analysts underestimated Universal, as they were collectively modeling $0.97 per share.

The top- and bottom-line growth was powered by increases in direct premiums both written and earned. The former category saw a nearly 9% improvement in revenue, with the latter rising by almost 6%.

Non-underwriting supported the business, said CEO

In the earnings release, Universal’s management waxed bullish on its quarterly performance.

CEO Stephen Donaghy said that “Results were solid across the board, including profitable underwriting that was complemented by our non-underwriting operations, which is a testament to our differentiated business model. Direct premiums written growth accelerated sequentially, as policies-in-force are stabilizing following our previous underwriting initiatives.”