Universal Insurance Holdings Inc.'s Universal Property & Casualty Insurance Co. expects gross losses related to Hurricane Irma from Florida and other southeastern states to be $350 million to $450 million.
The estimate is based on claims information to date and post-event catastrophe model estimations. Given its reinsurance program, Universal P&C expects to recognize net pretax losses related to the hurricane of $35 million, which represents its first event net retention. If the company sees any additional reinsurance recoveries from its supplemental non-Florida reinsurance program, those recoveries would further lower the $35 million retention. At this estimated level of losses, the company has its full reinsurance tower of $2.65 billion available for any future events.
American Platinum Property & Casualty Insurance Co. expects gross losses related to Hurricane Irma of $1 million to $2 million. The company has a reinsurance program with a $2 million retention, so it expects to retain all the net pretax losses related to the storm.
Universal Insurance has had about 50,000 claims related to Hurricane Irma to date, with almost 50% of reported claims already closed.
Universal Insurance expects no impact to its third-quarter results from hurricanes Harvey or Maria, given that it has no exposure in the impacted areas. The company also expects little to no loss from Hurricane Nate.