Universal Insurance Holdings, Inc. Insurance Subsidiaries Complete 2021-2022 Reinsurance Programs
- Successfully secured more open market catastrophe capacity than
at any point in the history of the Company.
- Total cost of the 2021-2022 reinsurance program for UPCIC and
APPCIC projected to be approximately 36.4% of estimated direct
earned premium for the 12-month treaty period (in-line with
previous guidance expectations) compared to 34.6% at this time last
year reflecting a 5.2% year-over-year increase.
- The largest private reinsurance participants all maintain a
rating from S&P Global of A+ or higher (Nephila Capital via
Allianz Risk Transfer, RenaissanceRe, Munich Re, Chubb Tempest Re,
Everest Re and Lloyd’s of London syndicates).
Universal Insurance Holdings, Inc. (NYSE: UVE) 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 2021-2022 reinsurance programs,
effective June 1, 2021.
“We are pleased to announce the completion and outcome of the
2021-2022 reinsurance programs for both of our insurance
companies,” said Matthew J. Palmieri, President of Universal
Property and Casualty Insurance Company (“UPCIC”). “On the heels of
a very difficult year in 2020 from a catastrophe loss perspective
as well as the continued uncertainty from the global Covid 19
pandemic in the first half of 2021, our reinsurance partners have
provided us with the comprehensive reinsurance coverage we desire
for the 2021 hurricane season. 2021 marks some significant
milestones for UPCIC as it completed its inaugural catastrophe bond
transaction, Cosaint Re Pte. Ltd, and also secured more private
market reinsurance coverage than at any point in its long tenure as
a leading provider of homeowners’ insurance in Florida and other
catastrophe prone states. We were able to secure the desired
coverage by maintaining our strong historical relationships while
expanding our panel with many additional quality counterparties in
2021. As expected, our reinsurance costs have increased over the
2020-2021 period for a variety of factors, but with the on-going
primary rate increases moving through our portfolio as well as
other risk mitigation strategies being implemented, we believe we
are set up well to handle the changes.”
UPCIC purchased more open market capacity than ever before and
set the top of its reinsurance tower for a single Florida event to
$3.413 billion. $1.06 billion of this coverage has limits that
automatically reinstate to guarantee a certain level of protection
in multi-event scenarios.
To further insulate for future years, UPCIC has secured $383
million of catastrophe capacity with contractually agreed limits
that extend coverage to include the 2022 and 2023 wind seasons.
Cosaint Re Pte. Ltd also provides one limit of $150 million of
capacity which may include the 2022 and 2023 wind seasons,
depending on loss activity in the 2021 wind season.
UPCIC’s first event catastrophe retention for a Florida loss was
increased modestly by $2 million to $45 million. A $45 million
retention loss would represent approximately 7.5% on an after-tax
basis of UVE’s stockholder’s equity as of March 31, 2021. UPCIC
maintained its first event catastrophe retention for a loss
involving states other than Florida at $15 million. A $15 million
Non-Florida retention would represent approximately 2.5% on an
after-tax basis of UVE’s stockholder’s equity as of March 31, 2021.
UPCIC maintained the same Non-Florida retention following growing
Non-Florida exposures by more than 20% over the past year.
About Universal Insurance Holdings, Inc.
Universal Insurance Holdings (UVE) is a holding company offering
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 sell insurance
products through both our appointed independent agents and through
our direct online distribution channels in the United States across
19 states (primarily Florida). Learn more at
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 2020
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.
version on businesswire.com: https://www.businesswire.com/news/home/20210528005349/en/
Investor Relations Contact: Rob Luther, 954-958-1200 ext.
6750 VP, Corporate Development, Strategy & IR
Media Relations Contact: Andy Brimmer / Mahmoud Siddig,
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