SCHEDULE: Donald Smith & Co. Discloses 5.3% Stake in Universal Insurance

Donald Smith & Co., Inc. and DSCO Value Fund, L.P. have reported a combined beneficial ownership of 5.3% of Universal Insurance Holdings, Inc. common stock.

Summary

• Donald Smith & Co., Inc. and DSCO Value Fund, L.P. collectively beneficially own 1,494,895 shares of Universal Insurance Holdings, Inc. common stock.
• This represents 5.3% of the total outstanding common stock of Universal Insurance Holdings, Inc.
• The filing indicates that the securities were acquired and are held in the ordinary course of business.
• The acquisition is not for the purpose of changing or influencing control of the issuer.
• Donald Smith & Co., Inc. holds sole voting power over 1,370,582 shares and sole dispositive power over 1,480,322 shares.
• DSCO Value Fund, L.P. holds sole voting power over 14,573 shares and sole dispositive power over 14,573 shares.
• The event requiring this filing occurred on September 30, 2025.

Sentiment

Score: 6

Explanation: The filing indicates a significant, passive investment by an institutional investor, which can be viewed as a vote of confidence, but does not suggest any immediate operational or strategic changes for the company.

Positives

• A notable institutional investor, Donald Smith & Co., Inc., has taken a significant 5.3% stake in Universal Insurance Holdings, Inc., potentially signaling confidence in the company's value.

Future Outlook

NA

Management Comments

• The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities.

Industry Context

A 5.3% stake by an investment adviser like Donald Smith & Co. indicates a significant, but passive, investment in the insurance sector. Such filings are common and reflect institutional portfolio adjustments rather than strategic industry shifts, unless an activist intent is declared (which is not the case here).

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake might instill confidence among existing shareholders and attract new investors, potentially influencing stock valuation.

Key Dates

Recommendation

The filing indicates a significant, passive stake by an institutional investor, which is generally a neutral to slightly positive signal. However, without further information on the company's fundamentals or the investor's specific thesis, a 'hold' recommendation is appropriate for existing investors, while new investors might consider further due diligence. The filing explicitly states the investment is not for control, limiting immediate activist potential.

Keywords

Universal Insurance Holdings, Common Stock, Schedule 13G, Beneficial Ownership, Donald Smith & Co., Institutional Investor, Insurance, Financial Services