Universal Insurance Holdings, the Florida headquartered and expansive primary insurance carrier, has announced “full retention events” for both hurricane Isaias and hurricane Sally in the third-quarter of 2020, suggesting its reinsurance has been tapped for both storms.
Late yesterday the insurer pre-announced catastrophe losses from the two hurricanes, which have impacted its property portfolio during recent weeks.
Hurricane Isaias is estimated to have resulted in a full retention event for Universal, which translates into a $15 million, pre-tax, loss and the storm qualifying under its other States program for reinsurance purposes.
Hurricane Sally is also estimated to have resulted in a full retention event for the insurer, which in the case of this storm translates into a $43 million, pre-tax loss, as the storm fell under its all States reinsurance program.
Together, that means Universal suffers a total net impact of around $58 million, pre-tax (approximately $44 million, after-tax).
As these two hurricanes used up the full retention, it suggests that in both cases Universal’s losses went over those levels and the remainder of the gross losses are set to be picked up by reinsurance partners.
Earlier this year, Universal renewed its main catastrophe reinsurance tower, securing what it called the largest private market catastrophe reinsurance renewal in its history.
Universal had reported its Q2 catastrophe losses were above budget and now it seems likely that Q3 will follow suit.
As we reported yesterday, FedNat has also gone into its reinsurance for losses from hurricane Sally.