Florida headquartered and expansive primary insurance company, Universal Insurance Holdings, has reported that its total revenue increased 14.3% in the second quarter, while direct premiums written jumped 17% to $473.6 million.
The insurer also reported a combined ratio of 97.3%, which slightly improved from 99.5% in Q2 2020.
The improvement was driven primarily by decreased weather events, partially offset by prior year’s reserve development, current year strengthening and higher reinsurance costs impact on the ratio.
The company’s Q2 net investment income decreased 53.7% due to significantly lower yields on a reinvested portfolio.
Stephen J. Donaghy, Chief Executive Officer commented: “We delivered solid second quarter results, highlighted by an 18.7% annualised return on average equity, despite continued social inflation within the state of Florida impacting loss costs.
“We continue to address these trends, in part, with primary rate increase filings, which was a driver of our direct written premium growth during the quarter.
“We expect primary rate increases to be a tailwind over the medium to long term as they earn-in, but are relentlessly focused on performing through the near term pressure on carriers in the Florida property insurance marketplace, and lament about the unfortunate derivative consequence of price increases on consumers.”