Universal Insurance subsidiaries complete 2019-2020 reinsurance programs
Universal Insurance Holdings announced the completion by Universal Property & Casualty Insurance Company and American Platinum Property and Casualty Insurance Company, the company's wholly-owned insurance company subsidiaries, of their 2019-2020 reinsurance programs, effective June 1, 2019. UPCIC expanded the top of its reinsurance tower for a single Florida event to $3,.28B an increase of $134M over the final 2018-2019 program. Importantly, $1.3B of this coverage has limits that automatically reinstate to ensure a certain level of protection in multi-event scenarios. To further insulate for future years, UPCIC secured $222.6M of new catastrophe capacity with contractually agreed limits that extend coverage to the 2020 wind season or beyond. In total, UPCIC now has $382.6M of this multi-year capacity, all of which is below the Florida Hurricane Catastrophe Fund layer, where reinsurance costs are the highest. UPCIC increased its first event catastrophe retention for a Florida loss from $35M to $43M. This change in Florida retention is the first since 2015 and comes following several years of growing total insured value. A $43M retention loss would still represent less than 6% on an after-tax basis of UVE's stockholder's equity as of March 31, 2019. UPCIC also increased its first event catastrophe retention for a loss involving states other than Florida from $5M to $10M.