Reinsurance News

Universal estimates Q4 cat losses at $76m

18th February 2021 - Author: Matt Sheehan

Universal Insurance Holdings, the Florida headquartered and expansive primary insurance carrier, has announced that it expects to incur a total net impact of $76.0 million due to catastrophe losses in Q4.

universal-insurance-holdings-logoThis figure ($57.7 million after-tax) covers estimated weather events in excess of plan for named hurricanes and PCS events.

Universal also reported prior year development of approximately $23.4 million pre-tax, or $17.8 million after-tax.

The estimate comes ahead of the release of Universal’s Q4 results, which are due to come out on February 26th.

“We ended the year with an unprecedented number of named storms and PCS events,” said Universal CEO Stephen J. Donaghy.

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“We continue to execute on our strategic priorities, including tailwinds from rate increases we have recently received approvals on and our continued focus on underwriting, which should position us well in the future,” Donaghy added.

In Q3 of last year, Universal took a loss of $3.8 million and reported a combined ratio of 134.7%.

It said catastrophe losses in Q3 had resulted in “full retention events” for Hurricanes Isaias and Sally, noting at the time that combined, these events led to a net negative impact of around $58 million (pre-tax).

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