Universal Insurance Holdings is maintaining its pricing strategy amid the growing number of new competitors entering Florida's homeowners insurance market, according to CEO Stephen Donaghy during the company's first-quarter earnings call.
Donaghy explained that many new entrants are targeting specific regional markets rather than pursuing statewide growth. He emphasized that Universal is focused on managing its existing portfolio and preventing adverse developments.
Since 2022, more than 10 new insurers have entered Florida's homeowners insurance market, a trend driven by recent legislative changes aimed at reducing litigation and fraud. Among the new entrants is Mangrove Property Insurance, Tailrow Insurance, Mainsail Insurance and Orange Insurance Exchange.
The company reported a 23.1% increase in first-quarter net income, reaching $41.4 million, primarily due to lower weather-related losses. Net earned premiums also rose 6.5% to $355.7 million, while the combined ratio improved by half a point to 95.
Donaghy pointed to the positive impact of the 2022 legislative reforms in Florida, which he said are helping to stabilize the state’s property insurance market. He noted that the reforms are providing policyholders with increased certainty and more options.
Meanwhile, CFO Frank Wilcox highlighted that strong premium growth in other states helped offset a 3% decline in Florida. He attributed the overall increase in premiums to a higher number of policies, rate adjustments, and inflation.
Universal also completed its 2025-2026 reinsurance program, securing $352 million in additional multi-year coverage through the 2026-2027 hurricane season. Donaghy reported that the reinsurance program was completed without any capacity issues, and rates were in line with expectations. He attributed these favorable conditions to the 2022 legislative changes, which have helped improve market sentiment.
In addition, the company recently reached an agreement to return more than $30 million to Florida’s hurricane fund following allegations that it submitted ineligible Hurricane Irma claims for reimbursement. Universal has denied the fraud allegations.
