EARNINGS
Top Florida Private Homeowners Insurer Universal Holdings Widens Third-Quarter Net Loss
FORT LAUDERDALE, Fla. //BestWire// - Universal Insurance Holdings, Florida’s largest private homeowners writer, widened its third quarter available net loss available to common shareholders to $16.2 million from a $5.9 million net loss a year earlier.
The combined ratio worsened 6.2 points to 116.9 following Florida-landfalling hurricanes. Net premiums earned rose 4.4% to $345.7 million as policies in force grew to 844,539.
Chief Executive Officer Stephen Donaghy said, “We’ve been through many hurricanes in our nearly three-decade history. . . Our substantial reinsurance protection . . . provides us with the financial resilience to weather both high frequency and high severity storm seasons.
“As we’ve previously disclosed, our consolidated retention drops for subsequent events and we expect a smaller financial impact from weather in the fourth quarter, inclusive of Hurricane Milton. Non-catastrophe underwriting trends continue to improve and we’re highly encouraged as we look ahead.”
Hurricane Helene made landfall in the Big Bend region of Florida’s west coast in September with 140 mph winds then caused widespread destruction in southeast states, largely from storm surge, flooding and landslides. Helene followed Debby, which also made landfall in the same region but was less destructive.
Universal attributed higher weather losses in the quarter primarily to Helene. They were partially offset by more favorable prior-year reserve development.
The company said it grew more strongly outside of Florida, expanding to Wisconsin, its 19th state, at the beginning of the month.
Florida Office of Insurance Regulation claims data as of Oct. 17 showed a total incurred loss of $1.33 billion with 121,689 claims and 30.1% closed for Helene (BestWire, Oct. 17, 2024).
Shares of Universal Insurance Holdings (NYSE: UVE) closed on Oct. 24 at $20.10, up 2.39% from the previous close.
(By Renée Kiriluk-Hill, senior associate editor, BestWire: Renee.Kiriluk-Hill@ambest.com)