Universal Insurance Holdings, the parent company of Florida-focused personal residential insurer Universal Property & Casualty Insurance Company, is taking a proactive approach to secure its catastrophe coverage for the coming years, reflecting a strong capital position and confidence in market conditions.
Chief Executive Officer Stephen J. Donaghy said the company is “well underway negotiating and placing our 2026 reinsurance programme with 90% of our first event catastrophe tower already placed, along with meaningful additional multi-year capacity secured for the 2027 hurricane season.” He added that the group’s “capital position is robust and we believe our aggregate reserves are more than adequate.”
The update follows a strong quarterly performance, with net income rising sharply and the combined ratio improving. As reported in February 2026, Universal’s net income for Q4 2025 surged to $66.6 million, with a combined ratio improving to 87.5%.
As previously reported, Universal’s subsidiaries completed the 2025–2026 reinsurance programme in May 2025, increasing coverage at the top of the reinsurance tower to $2.526 billion and securing additional multi-year capacity extending into the 2026–2027 period.
On the earnings call, Donaghy highlighted the company’s favourable exposure in Florida, noting, “We feel good about the business in Florida in particular, and have seen very positive things as a result.”
He credited state-level reforms with helping stabilise the market: “I would add that without the actions taken by the state of Florida and Governor DeSantis, we would not be in the position — the industry would not be in the position we’re in today, not just Universal. Without action, monies would continue to be going to third parties that weren’t impacted by a claim, and that wasn’t good for anyone.”
The company’s Florida business is supported by broader market conditions. As previously reported, Florida has enacted significant insurance reforms, including Senate Bill 2-A, which observers say have contributed to greater market stability.
The CEO also emphasised Universal’s approach to passing benefits back to policyholders. “As we continue, and you’ve seen, we’ve had modest declines in ’24 and ’25, we kick off our actuarial study on rate for ’26 at the end of March, and we’ll continue to do the right thing,” Donaghy said.
He added, “A decrease in rate does not always result in a decrease in earnings, as a result of the favourable legislation and the less severity and frequency that we’re seeing, and you compile that with potential reductions in reinsurance and expenses, it’s a very favourable environment right now, and we look forward to continuing to return funds to insureds as a result of that. And I would also add too our retention has never been better. So we’re in a very good place.”
