Menu

Reinsurance News

Universal subsidiaries finalise 2017 reinsurance programmes, reduce retentions

2nd June 2017 - Author: Luke Gallin

Universal Insurance Holdings, Inc. subsidiaries have announced the completion of their 2017-2018 reinsurance programmes, which includes participation from Nephila Capital (via Allianz Risk Transfer), Everest Re, RenaissanceRe, Chubb Tempest Re and a number of Lloyd’s of London syndicates.

Universal Property & Casualty Insurance Company (UPCIC) and American Platinum Property and Casualty Insurance Company (APPCIC), wholly owned subsidiaries of Universal Insurance Holdings, have completed their respective reinsurance placements, effective June 1st, 2017.

Firstly, UPCIC’s 2017-2018 reinsurance programme includes the mandatory coverage placed with the Florida Hurricane Catastrophe Fund (FHCF), which the company elected to participate at 90%, the highest level possible. Alongside, below, and above the FHCF layer sits private reinsurance. UPCIC also obtained multiple years of coverage for an additional portion of the programme.

The total cost of its private reinsurance utilisation is $155.5 million, and the firm also purchased reinstatement premium protection at a cost of $25.7 million.

The programme includes six layers, with a net retention of $35 million per cat event for losses occurred in all states, up to a first event loss of $2.65 billion. Immediately after its retention it has $55 million of third-party reinsurance protection for up to four separate catastrophes, across all states.

APPCIC’s 2017-2018 reinsurance programme cost $1.88 million, and is made up of three layers. APPCIC has a net retention of $2 million for all losses per catastrophe event, for losses incurred up to a first event loss of $29.2 million. Immediately after its retention it has $3.2 million of third-party reinsurance protection.

“We are pleased with the completion and outcome of the 2017-2018 reinsurance programs for both of our insurance companies. With this renewal, we have continued building on the recent trend of adding additional conservatism to our reinsurance programs without increasing the percentage of premium spent on reinsurance,” said Jon W. Springer, President and Chief Risk Officer (CRO) of the firm.

“Another year of growing our business and capital, expanding our reinsurance coverage, maintaining the same Florida retention and further reducing our retention in other states, puts us in the strongest position we’ve ever been in as we enter the 2017 hurricane season,” he continued.

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
Greenlight Capital Re names Simon Burton as its new CEO

Cayman Islands domiciled specialty reinsurer, Greenlight Capital Re, Ltd., has announced Simon Burton as its new Chief Executive Officer (CEO), effective...

Close