Universal Insurance Q3 loss widens amid active hurricane season

Universal Insurance Holdings, the largest private homeowners’ insurer in Florida, reported a widened net loss of $16.2 million for Q3 2024, compared to a $5.9 million loss in the same period last year.

The combined ratio increased by 6.2 points to 116.9, largely due to recent hurricane activity in Florida. Despite these challenges, net premiums earned rose by 4.4% to $345.7 million, reflecting growth in policies in force, which reached 844,539.

In a report from AM Best, CEO Stephen Donaghy commented on the results, noting the company’s extensive reinsurance protection, which he described as providing financial resilience through high-frequency and high-severity storm seasons.

“As we’ve previously disclosed, our consolidated retention drops for subsequent events and we expect a smaller financial impact from weather in the fourth quarter, inclusive of Hurricane Milton. Non-catastrophe underwriting trends continue to improve and we’re highly encouraged as we look ahead,” he said.

In September, Hurricane Helene struck Florida’s Big Bend region with sustained winds of 140 mph, causing widespread storm surge, flooding, and landslides in southeastern states. Helene followed Hurricane Debby, which made landfall in the same area but with less destructive force.

Universal reported that losses attributed to Helene were partially offset by favorable prior-year reserve development.

Additionally, Universal expanded outside Florida, beginning operations in Wisconsin, the company’s 19th state, in early October.

The Florida Office of Insurance Regulation reported $1.33 billion in total incurred losses for Helene as of Oct. 17, with 121,689 claims filed and 30.1% closed.

The calculation covers privately insured losses from damage caused by wind, storm surges and inland flooding to automobiles and residential, commercial and industrial properties. It also includes business interruption.

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