Universal Insurance Holdings (UVE) announced the completion by Universal Property & Casualty Insurance Company ("UPCIC") and American Platinum Property and Casualty Insurance Company ("APPCIC"), the Company's wholly-owned insurance company subsidiaries, of their 2016-2017 reinsurance programs, effective June 1, 2016.
The largest private participants in the insurance subsidiaries’ reinsurance programs include Nephila Capital, Everest Re, Renaissance Re, Chubb Tempest Re and Lloyd’s of London syndicates.
"We are pleased with the completion and outcome of the 2016-2017 reinsurance programs for both of our insurance companies," said Sean P. Downes, chief executive officer of the Company.
"This year, our primary focus was to add additional conservatism to the UPCIC reinsurance program, a goal we successfully achieved by reducing our retention for catastrophe losses involving states other than Florida to $5 million and securing over $100 million of additional multiple-year catastrophe capacity.
"Utilizing a similar reinsurance budget to last year, we were able to expand the top of our reinsurance tower for a single Florida event to $2.4 billion, and also maintain the same $35 million catastrophe retention for a Florida loss.
"By way of illustration, a $35 million loss would represent less than 13% of UPCIC statutory surplus as of March 31, 2016 and a $5 million loss would be less than 2%.
"The growth in business and capital since last year, coupled with expanding our reinsurance coverage, maintaining the same Florida retention and significantly reducing our retention in other states, puts us in the strongest position we’ve ever been in as we enter the 2016 hurricane season."
Universal Insurance Holdings, with its wholly-owned subsidiaries, is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims.