Universal Insurance Holdings, the Florida headquartered, nationally expansive primary insurance carrier, announced last night that it has taken a nearly $100 million hit from catastrophe losses and loss creep from prior year events during the fourth-quarter of 2020.
Universal said that “unprecedented” storm activity drove an total net impact of approximately $76 million, pre-tax (approximately $57.7 million, after-tax) for in Q4 2020, for losses from weather events in excess of plan caused by named hurricanes and other PCS cat events.
On top of this, the insurance carrier said that it was also hit by loss creep during the period.
Prior year catastrophe loss development of approximately $23.4 million pre-tax (approximately $17.8 million, after tax) was reported, taking the total Q4 2020 hit to almost $100 million for the insurer.
Stephen J. Donaghy, Chief Executive Officer, commented, “We ended the year with an unprecedented number of named storms and PCS events. We continue to execute on our strategic priorities, including tailwinds from rate increases we have recently received approvals on and our continued focus on underwriting, which should position us well in the future.”
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