Universal

At least 14 new companies have opened up shop in the state in recent years.

The Floridian also secured $352mn of multi-year coverage extending to 2027.

Renewal rates were favorable compared to what could have happened after several hurricanes.

Comments came as universal reported a 4.2 CoR jump to 107.9% in Q4.

The carrier is looking at a $600-$900mn hit from Debby, Helene, Milton.

This compares to the 2023-2024 tower which covered losses up to $2.83bn.

The carrier has completed its 2024-25 reinsurance renewal.

The Floridian insurer’s loss from the hurricane was within its reinsurance retentions.

The executive said that the company reduced its consolidated retention and ceded premium ratio for its 2023 and 2024 treaty program.

This compares to the subsidiaries’ 2022-2023 reinsurance tower, in which they secured coverage for losses up to $3.16bn.

The carrier’s combined ratio totaled 100%, up 2.1 points from Q1 2022, reflecting a higher net loss ratio, partially offset by a lower net expense ratio.

The carrier reported a Q4 combined ratio of 101.4%, an improvement of 30 points year-on-year, driven by a 27-point reduction in its loss ratio.

The carrier reported 76.3% for its loss ratio for the quarter, which resulted from a lower current accident-year net loss ratio and lower adverse prior-year reserve development.

Expanded state reinsurance support and legal reforms will be top priorities as Florida insurers face another retention loss.

The executive added that while the Florida market has seen benefits from recent legislation, the major issue remaining is one-way attorney fees.

The Floridian's loss ratio increased 42.8 points, reflecting $111mn of retained Hurricane Ian losses and a higher attritional initial accident year loss pick.

The company estimates its overall gross loss to be approximately $1bn, below its $3bn overall reinsurance tower.

Demotech wrote to more than 15 carriers to warn of a possible downgrade last month.

The firm said it was well prepared for hurricane season with no gaps in reinsurance coverage.

For most policy forms, all roof types must be 15 years or newer to write new business in certain counties.

The reinsurer has put the first layer through its captive, a move that reflects the lack of reinsurance capacity for this high-risk business.

The carrier has already secured 85% of all-states, first-event cover for the June renewal.

Florida-based Universal sees 6.1% drop in policies in force; challenging claims environment pressures underwriting profit.

CEO Steve Donaghy said the hires would boost the company’s strategic objectives.

In its earnings call, the firm said lower policies in force and higher premiums would increase the firm’s top line

The company deepened its overall net loss to $48.1mn, as it said non-cat losses and Hurricane Irma creep contributed to reserve deterioration.

Universal Insurance Holdings books $30.7mn reserve charge and sees $21.5mn in weather above plan for Q4, with shares plunging on the news.

The financials from the listed Floridians show them plotting a path through challenges by exposure management and rate rises, but reinsurers are still picking up notable storm losses from this reinsurance-reliant group.

Weather losses continued to take a relatively high toll amid a mixed picture for prior-year reserving levels.

It was nearly 900% up on the year-ago figure, as the insurer’s executives cautiously welcomed new Florida legal reforms.

Universal Insurance Holdings reports premium growth and lower cat losses in Q2.

The Floridian carrier said reinsurance spending was up by 5%.

The hurricane made landfall in Alabama on 16 September 2021 and swept through a number of southern states.

The insurer reported no new above-budget weather losses in the quarter.

The insurer is turning to the ILS market after a busy year for Florida deals in 2020.

The executive was previously an underwriter at Chubb Tempest Re and Odyssey Re.

The carrier transferred $44mn from a holding company to its insurance subsidiary in the quarter.

Hurricanes Isaias and Sally were "full retention events" and the firm took 2,000 new Irma cat claims in Q3, the company said.

Universal’s combined ratio deteriorated by 37 points to 134.7%, driven by Laura and Sally losses.

In June, the company renewed its reinsurance program, holding the program’s retention for Florida events steady at $43mn.

The executive joins from Universal, where he was president of the Floridian’s American Platinum division.

Universal ceded $11mn of prior-year losses to reinsurers.

The carrier has now exhausted its private reinsurance cover for 2017 storm Irma, with $1.3bn of public reinsurance cover remaining.

The Floridian insurer remained in underwriting profit but recorded $4.3mn of prior-year loss creep.

The “vast majority” of the Irma loss increase would be covered by the Florida Hurricane Catastrophe Fund, CFO Frank Wilcox said.

Despite continuing Irma losses, retro availability could be a stronger influence on 2020 renewals, suggested one Florida insurer.

News of adverse development from the two Floridians may point to a market-wide issue.

All the carrier's new cat losses were retained net.