Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Universal Insurance Holdings's annualized net income for the quarter that ended in Mar. 2026 was €188 Mil. Universal Insurance Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €487 Mil. Therefore, Universal Insurance Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 38.56%.
The historical rank and industry rank for Universal Insurance Holdings's Return-on-Tangible-Equity or its related term are showing as below:
FRA:5UI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -6.2 Med: 18.87 Max: 39.59
Current: 39.02
During the past 13 years, Universal Insurance Holdings's highest Return-on-Tangible-Equity was 39.59%. The lowest was -6.20%. And the median was 18.87%.
FRA:5UI's Return-on-Tangible-Equity is ranked better than 89.2% of 500
companies
in the Insurance industry
Industry Median: 13.515
vs FRA:5UI: 39.02
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Universal Insurance Holdings Return-on-Tangible-Equity Related Terms
Universal Insurance Holdings Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:5UI vs ASIC, SAFT, TRUP: Return-on-Tangible-Equity Comparison
For the Insurance - Property & Casualty subindustry, Universal Insurance Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Universal Insurance Holdings Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Universal Insurance Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Universal Insurance Holdings's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 38.56% mean?
Universal Insurance Holdings (FRA:5UI) has a Return-on-Tangible-Equity of 38.56% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Universal Insurance Holdings and its competitors. This is 104% above median its historical median of 18.87. According to the industry distribution chart, Universal Insurance Holdings ranks #54 out of 500 companies in the Insurance industry, placing it in the top 10.8%.
Is Universal Insurance Holdings' Return-on-Tangible-Equity too high?
Universal Insurance Holdings' current Return-on-Tangible-Equity of 38.56% is 104% above median its 10-year median of 18.87. The Insurance industry median Return-on-Tangible-Equity is 13.52. Universal Insurance Holdings' value of 38.56% is 185.3% above this industry median. Based on the distribution chart, Universal Insurance Holdings ranks #54 out of 500 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Universal Insurance Holdings has a GF Score™ of 62/100, reflecting its overall financial health beyond just this single metric.
How does Universal Insurance Holdings' Return-on-Tangible-Equity compare to ASIC and SAFT?
According to the Insurance industry distribution chart, Universal Insurance Holdings ranks #54 out of 500 companies for Return-on-Tangible-Equity. This places Universal Insurance Holdings in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 13.52. Universal Insurance Holdings' value of 38.56% is 185.3% above this benchmark. While the company's 10-year median is 18.87 vs. the industry median of 13.52, Universal Insurance Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.52, based on 500 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Insurance Holdings's current Return-on-Tangible-Equity of 38.56% is 185.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Universal Insurance Holdings and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Insurance Holdings's current Return-on-Tangible-Equity is 38.56%, which is 104% above median its own 10-year median of 18.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Insurance Holdings stock overvalued right now?
Universal Insurance Holdings (FRA:5UI) has a current Return-on-Tangible-Equity of 38.56%. The stock's GF Value™ is €19.75, compared to a current price of €36.00 — trading 82.3% above its estimated fair value. The current Return-on-Tangible-Equity is 38.56%, which is 104% above median its 10-year median of 18.87 and 185.3% above the Insurance industry median of 13.52. Universal Insurance Holdings' overall GF Score™ is 62/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Universal Insurance Holdings (FRA:5UI), the current Return-on-Tangible-Equity is 38.56% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Universal Insurance Holdings (FRA:5UI) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Insurance Holdings stock appears to be overvalued.
The current stock price of €36.00 is trading 82.3% above its estimated GF Value™ of €19.75.
Key valuation signals for FRA:5UI:
Return-on-Tangible-Equity: 38.56% (104% above median its 10-year median of 18.87)
GF Value™: €19.75 vs. price of €36.00 (82.3% above fair value)
Industry Position: 185.3% above the Insurance median (#54 of 500)
No single metric tells the full story. See the FRA:5UI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Insurance Holdings Inc is an insurance holding company. Through its subsidiaries, the company mainly offers property and casualty insurance and value-added insurance services. It develops, markets, and underwrites insurance products for consumers predominantly in the personal residential homeowners lines of business and performs all other insurance-related services for its primary insurance entities, including risk management, claims management, and distribution. The group offers the following types of personal residential insurance: homeowners, renters/tenants, condo unit owners, and dwelling/fire, through an independent agent network and online distribution channels across multiple states in the United States of America.
62GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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