Universal Insurance Holdings, Inc. Announces Expected Financial Impact from Recent Weather Events
Fort Lauderdale, FL, October 22, 2018 – Universal Insurance Holdings, Inc. (NYSE: UVE) announced today the expected financial impact to the Company from recent weather events, including Tropical Storm Gordon and Hurricane Florence (which occurred during the third quarter of 2018) as well as Hurricane Michael (which occurred during the fourth quarter of 2018). Using claims information received to date and post event catastrophe model estimations, the company expects the following:
- Tropical Storm Gordon initially made landfall on the U.S. Gulf Coast on September 4, 2018, primarily impacting Florida, Alabama, Louisiana, and Mississippi. The storm is expected to result in both gross and net pre-tax losses and loss adjustment expenses of $2.5 million.
- Hurricane Florence initially made landfall as a strong Category 1 hurricane in North Carolina on September 14, 2018, primarily impacting North Carolina, South Carolina, and Virginia. The storm is expected to produce gross losses and loss adjustment expenses of $35-45 million, resulting in net pre-tax losses and loss adjustment expenses of $5 million.
- Hurricane Michael initially made landfall as a strong Category 4 hurricane along the Florida Panhandle on October 10, 2018, primarily impacting Florida, Georgia, and several other Southeastern U.S. states. The storm is expected to produce gross losses and loss adjustment expenses of $300-350 million, resulting in net pre-tax losses and loss adjustment expenses of $35 million. In addition, to the extent the Company experiences any additional reinsurance recoveries from its supplemental Non-Florida reinsurance program, those recoveries could serve to partially reduce its $35 million retention.
Universal Chairman and Chief Executive Officer Sean P. Downes commented: “We are thankful that our dedicated staff, disaster preparedness planning and conservative reinsurance program placed with strong reinsurance partners helped to limit the overall financial impact of these events. We remain committed to fully supporting our policyholders in this time of need.”
About Universal Insurance Holdings, Inc.
Universal Insurance Holdings, Inc., with its wholly-owned subsidiaries, is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Universal Property & Casualty Insurance Company (UPCIC), a wholly-owned subsidiary of the Company, is one of the leading writers of homeowners insurance in Florida and is now fully licensed and has commenced its operations in North Carolina, South Carolina, Hawaii, Georgia, Massachusetts, Maryland, Delaware, Indiana, Pennsylvania, Minnesota, Michigan, Alabama, Virginia, New Jersey, New York, and New Hampshire. American Platinum Property and Casualty Insurance Company (APPCIC), also a wholly-owned subsidiary, currently writes homeowners multi-peril insurance on Florida homes valued in excess of $1 million, which are limits and coverages currently not targeted through its affiliate UPCIC. APPCIC is additionally licensed and has commenced writing Fire, Commercial Multi-Peril, and Other Liability lines of business in Florida. For additional information on the Company, please visit our investor relations website at www.universalinsuranceholdings.com.
Forward-Looking Statements and Risk Factors
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include commentary on plans, products and lines of business, marketing arrangements, reinsurance programs and other business developments and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future results could differ materially from those described, and the Company undertakes no obligation to correct or update any forward-looking statements. For further information regarding risk factors that could affect the Company’s operations and future results, refer to the Company’s reports filed with the Securities and Exchange Commission, including Form 10-K for the year ended December 31, 2017 and Form 10-Q for the quarter ended June 30, 2018.