Universal Insurance Holdings, Inc. has announced the completion of its combined 2023-2024 reinsurance program, effective June 1, 2023, by Universal Property & Casualty Insurance Company and American Platinum Property and Casualty Insurance Company, its wholly-owned insurance company subsidiaries.
UPCIC and APPCIC set the top of their combined reinsurance tower for a single All States event, including Florida, to $2.831 billion.
$846 million of this coverage has limits that automatically reinstate to guarantee a certain level of protection in multi-event scenarios.
The year-over-year reduction in the top end of the first event reinsurance tower reflects a 95,340 reduction to UPCIC’s in-force wind-covered policy count as of March 31, 2023. Out of which Florida represents 83,451, or 88%.
The program includes approximately $223 million of cost-free coverage deferred from 2022 to utilize in 2023 as part of the Reinsurance to Assist Policyholders, emanating from Florida Senate Bill 2D, effective May 26, 2022, which is mandatory for UPCIC and APPCIC to incorporate into its reinsurance programs in 2023.
UPCIC has secured $277 million of catastrophe capacity below the Florida Hurricane Catastrophe Fund. This contractually agreed on limits that extend coverage to include the 2024 wind season.
UPCIC’s catastrophe bond, secured leading up to the 2021-2022 renewal, Cosaint Re Pte. Ltd continues to provide one limit of $150 million in this year’s program and is now in its third and final year.
Matthew J. Palmieri, the Chief Risk Officer said, “We are pleased to announce the completion and outcome of the 2023-2024 reinsurance program for both of our insurance companies. Reinsurance is one of the cornerstones of our Company and with the support of our global reinsurance partners, we are helping our customers rebuild after Hurricane Ian, as we always do following severe weather events.
“As we look ahead to the 2023 Atlantic Hurricane season and treaty period, we were able to put together a comprehensive catastrophe reinsurance program with identical coverage to our historical programs, providing us with significant financial resources to support our policyholders and protect our balance sheet.”
UPCIC’s first event catastrophe retention for a Florida loss was unchanged from the previous year at $45 million. APPCIC’s separate retention of $3.5 million has been eliminated, causing a $3.5 million improvement to the retention on a consolidated basis.
