Universal Insurance Holdings has announced the expected impact of the recent hurricanes on its subsidiary companies, Universal Property & Casualty Insurance Company (UPCIC) and American Platinum Property and Casualty Insurance Company (APPIC).
“We have had approximately 50,000 claims reported relating to Hurricane Irma to date,” said Sean P. Downes, chairman and CEO of Universal. “Over 90% of reported claims have already been inspected, and nearly 50% of reported claims have already been closed.”
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UPCIC, one of the leading writers of property and casualty insurance in Florida, anticipates gross losses from Hurricane Irma to be between $350 million and $450 million. Given its substantial reinsurance program, however, UPCIC expects to recognize net pre-tax Irma-related losses of only $35 million. Any additional reinsurance recoveries from UPCIC’s supplemental non-Florida reinsurance program would further reduce that figure, the company said.
APPCIC anticipates gross losses related to Hurricane Irma to be between $1 million and $2 million. APPCIC’s reinsurance program contains a $2-million retention, so the company expects to retain all the net pre-tax Irma-related losses up to that figure.
Universal does not expect any impact to third-quarter financial results from either Hurricane Harvey or Hurricane Maria, as neither UPCIC nor APPCIC have any exposure in the areas affected by those storms. Universal also expects little to no loss related to Hurricane Nate, which made landfall Saturday.
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