UniversalP&C Insurance Co. has obtained additional catastrophe coverageof $30 million in excess of $5 million covering certain loss occurrences,including hurricanes, in states outside of Florida.
Universal P&C Insurance obtained the additional coverageunder an excess catastrophe contract specifically covering risks outside thestate of Florida and intended to further reduce its $35 million net retention.
The company has a net retention of $35 million per catastropheevent for losses incurred, in all states, up to a first event loss of $2.4billion.
In certain circumstances involving a catastrophic eventimpacting both Florida and other states, Universal P&C Insurance'sretention could result in pretax net liability as low as $5 million. The $35million net retention under the all-states reinsurance program could be offsetby as much as $30 million in coverage under the other-states reinsuranceprogram. These retention amounts are gross of any potential tax benefit thecompany would receive in paying such losses. The company's statutory surplus asof June 30 was $294 million.
Universal P&C Insurance and , units of Universal Insurance Holdings Inc., completed their 2016 to 2017reinsurance programs, effective June 1, on May 31.