Universal's Insurance Subsidiaries Complete 2024-2025 Reinsurance Program
30 Mai 2024 - 10:10PM
Business Wire
- Successfully secured a combined UPCIC and APPCIC catastrophe
reinsurance program with no material changes to historical
reinsurance partners or terms and conditions.
- Replaced $217M of cost-free Reinsurance to Assist Policyholders
(RAP) coverage and $150M of expiring catastrophe bond coverage in
the traditional reinsurance market.
- Total cost of the 2024-2025 reinsurance program for UPCIC and
APPCIC projected to be approximately 33.0% of estimated direct
earned premium for the 12-month treaty period, compared to 31.8% at
this time last year, reflecting a modest 1.2-point year over year
increase despite our demand for private market capacity increasing
significantly.
- The largest private reinsurance participants all maintain a
rating from AM Best of ‘A’ or higher (Nephila Capital, Markel,
RenaissanceRe, Munich Re, Chubb Tempest Re, Ariel Re, Everest Re
and Lloyd’s of London syndicates).
Universal Insurance Holdings, Inc. (NYSE: UVE) (“Universal” or
the “Company”) today announced the completion by Universal Property
& Casualty Insurance Company (“UPCIC”) and American Platinum
Property and Casualty Insurance Company (“APPCIC”), the Company’s
wholly-owned insurance company subsidiaries, of their combined
2024-2025 reinsurance program, effective June 1, 2024.
“We are pleased to announce the completion of the 2024-2025
reinsurance program for both of our insurance companies,” said
Matthew J. Palmieri, Chief Risk Officer. “Reinsurance serves as the
fulcrum of our insurance entities’ ability to absorb multiple
catastrophic events in a given year, protecting policyholders and
allowing operations to continue smoothly. For this renewal, we
approached the market with considerably more private market
catastrophe capacity demand and the Company executed efficiently
with our long-standing reinsurance partners ahead of the upcoming
2024 Atlantic Hurricane Season. We also added new multi-year
coverage extending through the 2025-2026 reinsurance period in the
process.”
UPCIC’s in force wind-covered policy count in Florida declined
by 25,266 from March 31, 2023 to March 31, 2024, resulting in a
year over year reduction to the top end of the combined first event
reinsurance tower for our insurance subsidiaries. UPCIC and APPCIC
set the top of their combined reinsurance tower for a single All
States (including Florida) event to $2.404 billion. $1.023 billion
of this coverage has limits that automatically reinstate to
guarantee a certain level of protection in multi-event scenarios,
an increase of $177 million in aggregate limit available for
subsequent events over the 2023-2024 period.
To further insulate future years, UPCIC and APPCIC secured $240
million of catastrophe capacity with contractually agreed limits
that extend coverage to include the 2025-2026 treaty year, of which
$165 million of the capacity sits below the Florida Hurricane
Catastrophe Fund and $75 million sits above the Florida Hurricane
Catastrophe Fund.
The insurance entities’ combined $45 million All States
(including Florida) first event retention loss is unchanged from
the prior year.
About Universal
Universal Insurance Holdings, Inc. (NYSE: UVE) is a holding
company providing property and casualty insurance and value-added
insurance services. We develop, market, and write insurance
products for consumers predominantly in the personal residential
homeowners lines of business and perform substantially all other
insurance-related services for our primary insurance entities,
including risk management, claims management and distribution. We
provide insurance products in the United States through both our
appointed independent agents and our direct online distribution
channels, primarily in Florida. Learn more at
universalinsuranceholdings.com or get an insurance quote at
clovered.com.
Forward-Looking Statements
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. The words “believe,” “expect,” “anticipate,” “will,”
“plan,” and similar expressions identify forward-looking
statements, which speak only as of the date the statement was made.
Such statements may include commentary on plans, products and lines
of business, marketing arrangements, reinsurance programs and other
business developments and assumptions relating to the foregoing.
Forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified,
including those risks and uncertainties described under the heading
“Risk Factors” and “Liquidity and Capital Resources” in our 2023
Annual Report on Form 10-K, and supplemented in our subsequent
Quarterly Reports on Form 10-Q. Future results could differ
materially from those described, and the Company disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise. For further information regarding risk factors that
could affect the Company’s operations and future results, refer to
the Company’s reports filed with the Securities and Exchange
Commission, including the Company’s Annual Report on Form 10-K and
the most recent quarterly reports on Form 10-Q.
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version on businesswire.com: https://www.businesswire.com/news/home/20240530371611/en/
Investors/Media: Arash Soleimani, CFA, CPA, CPCU, ARe
Chief Strategy Officer asoleimani@universalproperty.com
954-804-8874
Universal Insurance (NYSE:UVE)
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