Universal Insurance Holdings, Inc. has announced that it expects gross losses and loss adjustment expenses of between $300 million and $350 million from the impact of hurricane Michael, the majority of which is to be assumed by reinsurers.
The firm has announced that the up to $350 million gross loss from Michael, is expected to result in net pre-tax losses and loss adjustment expenses of $35 million, meaning that as much as $315 million of its Michael loss could be passed to its reinsurers.
In addition, notes Universal, its $35 million retention could be reduced should it experience any additional reinsurance recoveries from its supplemental Non-Florida reinsurance program.
As well as hurricane Michael, Universal has announced that it expects tropical storm Gordon to result in both gross and net pre-tax losses and loss adjustment expenses of $2.5 million.
And for hurricane Florence, Universal expects gross losses and loss adjustment expenses of between $35 million and $45 million, resulting in net pre-tax losses and loss adjustment expenses of $5 million.
Sean P. Downes, Chairman and Chief Executive Officer (CEO), Universal, 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 remain committed to fully supporting our policyholders in this time of need.”