Universal lifts reinsurance tower to $2.623bn, ILS capital from Nephila a key participant

Universal Insurance Holdings, Inc. once again expanded its reinsurance limit at the 2026 mid-year renewal, lifting the top of the reinsurance tower to $2.623 billion, with institutional capital from ILS manager Nephila Capital a key participant in the renewal again for the insurer.

Universal continues to access reinsurance capital from all sources, but recall that the insurer has not sponsored a catastrophe bond since 2021, which sets it apart from many of its Florida domiciled, but also nationally expansive competitors these days.

But its partnership with Nephila Capital as a key reinsurance market has been in effect for over a decade now, as the ILS investment manager has been cited as one of the most significant renewal participants for Universal since at least 2014, which was when we first covered it.

The details of Universal’s reinsurance renewal for 2026 were already partly in the open, as companies now are keen to make stakeholders and the market aware that they progress renewals well in advance of the actual June 1st date,

In fact, back in February, CEO Stephen Donaghy said that Universal had already placed around 90% of its first-event catastrophe reinsurance tower and was set to add multi-year cover to protect it into the 2027 hurricane season as well.

Then, in April, Donaghy commented that Universal had fully-placed its catastrophe reinsurance for the coming year, including a further $352 million of multi-year cover to extend its catastrophe protection.

Now, the company has explained the renewal in more detail, with the top of its first-event reinsurance now extending to $2.623 billion, up from the $2.526 billion of 2025’s tower.

This provides reinsurance to Universal underwriting subsidiaries Universal Property & Casualty Insurance Company (UPCIC) and American Platinum Property and Casualty Insurance Company (APCIC).

“We are pleased to announce the completion of the 2026-2027 reinsurance program for our insurance companies,” explained Matthew J. Palmieri, Chief Risk Officer. “The catastrophe reinsurance market is moderating after a benign 2025 Atlantic hurricane season, as well as from sweeping property insurance reforms passed in Florida, which have meaningfully stabilized the market. We secured first and subsequent event capacity at efficient pricing with our key, long standing reinsurance relationships, some of which have spanned three decades, and added more multi-year capacity in the process.”

The insurer confirmed the new multi-year reinsurance purchase, saying it was for the UPCIC entity.

This $352 million of multi-year catastrophe reinsurance capacity has contractually agreed limits to cover the 2027-2028 treaty period as well and $277 million of it is located below the Florida Hurricane Catastrophe Fund (FHCF) layer in the reinsurance tower.

First event retention for the reinsurance is unchanged at $45 million for the Universal carriers this year.

There were no significant changes to terms and conditions, Universal said, while the panel of historical reinsurance partners also remained largely stable.

The largest private reinsurance market participants continue to be Nephila Capital (alongside and presumably fronted by parent Markel), RenaissanceRe, Munich Re, Chubb Tempest Re, Ariel Re, Everest Re and certain Lloyd’s of London syndicates.

Finally, Universal also highlighted its growing diversification and expansion outside of Florida, by highlighting that Florida makes up less than 50% of the firm’s total insured value.

Read all of our reinsurance renewals news and analysis.