FORT LAUDERDALE, Fla.,
Oct. 10, 2017 /PRNewswire/ --
Universal Insurance Holdings, Inc. (NYSE: UVE) announced today the
expected impact to the Company from recent hurricanes. Using
claims information received to date and post event catastrophe
model estimations, Universal Property & Casualty Insurance
Company (UPCIC) anticipates that gross losses relating to Hurricane
Irma, a Category 4 hurricane, from both Florida and other Southeastern U.S. states
will be $350-450 million. In
light of UPCIC's substantial reinsurance program, the Company
expects to recognize net pre-tax losses relating to Hurricane Irma
of only $35 million, representing
UPCIC's first event net retention. In addition, to the extent
UPCIC experiences any additional reinsurance recoveries from its
supplemental Non-Florida reinsurance program, those recoveries
would serve to further reduce its $35
million retention. At this estimated loss level, UPCIC
has its full reinsurance tower of $2.65
billion available for any future events.
American Platinum Property and Casualty Insurance Company
(APPCIC) anticipates that gross losses relating to Hurricane Irma
will be $1-2 million. In light
of APPCIC's reinsurance program containing a $2 million retention, the Company expects to
retain all of the net pre-tax losses relating to Hurricane Irma,
capped at a maximum of $2
million. At this estimated loss level, APPCIC has its
full reinsurance tower available for any future events.
The Company expects no impact to third quarter 2017 financial
results from either Hurricane Harvey (which primarily affected
Texas and Louisiana) or Hurricane Maria (which primarily
affected the Caribbean and
Puerto Rico), as neither of
Universal's insurance company subsidiaries have exposure in the
affected areas. Additionally, the Company expects to incur
little or no losses relating to Hurricane Nate, which initially
made U.S. landfall on October 7,
2017, and affected Mississippi, Alabama, Louisiana, and the Florida
Panhandle.
Universal Chairman and Chief Executive Officer Sean P. Downes commented: "We are thankful that
our dedicated staff, disaster preparedness planning and
conservative reinsurance program placed with strong reinsurance
partners helped to limit the overall financial impact of these
events. We have had approximately 50,000 claims reported
relating to Hurricane Irma to date, over 90% of reported claims
have already been inspected, and nearly 50% of reported claims have
already been closed. We also highlight our extensive second
event coverage and our solid financial position as we move through
the remainder of the 2017 hurricane season. Additionally, as
we begin to look forward, it is important to note that over 60% of
the UPCIC reinsurance capacity estimated to be impacted is part of
multi-year deals with dedicated limit and pricing already
determined for future years, which will serve to protect UPCIC in
the event of a hardening reinsurance market. We remain
committed to fully supporting our policyholders in this time of
need and delivering outstanding value to Universal
shareholders."
About Universal Insurance Holdings, Inc.
Universal Insurance Holdings, Inc., with its wholly-owned
subsidiaries, is a vertically integrated insurance holding company
performing all aspects of insurance underwriting, distribution and
claims. Universal Property & Casualty Insurance Company
(UPCIC), a wholly-owned subsidiary of the Company, is one of the
leading writers of homeowners insurance in Florida and is now fully licensed and has
commenced its operations in North
Carolina, South Carolina,
Hawaii, Georgia, Massachusetts, Maryland, Delaware, Indiana, Pennsylvania, Minnesota, Michigan, Alabama, Virginia, and New
Jersey. American Platinum Property and Casualty Insurance
Company (APPCIC), also a wholly-owned subsidiary, currently writes
homeowners multi-peril insurance on Florida homes valued in excess of $1 million, which are limits and coverages
currently not targeted through its affiliate UPCIC. APPCIC is
additionally licensed and has commenced writing Fire, Commercial
Multi-Peril, and Other Liability lines of business in Florida. For additional information on the
Company, please visit our investor relations website
at www.universalinsuranceholdings.com.
Forward-Looking Statements and Risk Factors
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," 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. Future results could
differ materially from those described, and the Company undertakes
no obligation to correct or update any forward-looking statements.
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 Form 10-K for the year ended December 31, 2016 and Form 10-Q for the quarter
ended June 30, 2017.
Contacts:
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Investors
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Media
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Dean
Evans
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Andy Brimmer /
Mahmoud Siddig
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VP Investor
Relations
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Joele Frank,
Wilkinson Brimmer Katcher
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954-958-1306
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212-355-4449
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de0130@universalproperty.com
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SOURCE Universal Insurance Holdings, Inc.