Universal’s first cat bond oversubscribed, reinsurance renewal progressing: CEO

Universal’s first cat bond oversubscribed, reinsurance renewal progressing: CEO

Florida headquartered insurer Universal Insurance Holdings is making development with its mid-year reinsurance renewal with its very first catastrophe bond, the $150 million Cosaint Re Pte. Ltd. (Series 2021-1) deal oversubscribed by financier demand, according to its CEO Stephen J. Donaghy.Universal secured the Cosaint Re catastrophe bond back in March, with a successful very first check out to the cat bond market capped by the offer increasing in size by 50% to $150 million while marketing, thanks to financiers strong hungers for brand-new issues.
Discussing his companys first-quarter 2021 results yesterday, CEO Donaghy described an 11.7% boost in earnings from the previous year to $262.8 million, while Universal also scheduled 12% top-line growth throughout the period.
Income was up almost 32% on the previous year, while the combined ratio actually fell by a percentage point.
Reinsurance is a vital element of the Universal company design and the business is always one of the earlier companies to place its renewals.
CEO Donaghy commented, “We continue to make development on our reinsurance program renewal, and were oversubscribed on our first CAT bond in March at rates below the low end of our preliminary range.”
As we described back in March, the Cosaint Re catastrophe bond priced to use financiers a voucher of 9.25%, which was a roughly 6.4% decline from the mid-point of the preliminary spread assistance of 9.5% to 10.25%.
Universal is likewise part method through positioning the rest of its mid-year reinsurance renewal and Donaghy said, “We have actually now finished procurement of our All States initially occasion reinsurance program for UPCIC for the 2021 wind season and will have additional details in May as we complete the remainder.”
As a Florida headquartered insurer, Universals book is still overweighted to the state and its catastrophe exposed areas, so legal change is a top concern for the business, as it has actually struggled with the Florida residential or commercial property insurance market issues that have so plagued it over the last few years.
For a number of years Florida has been a substantial outlier compared to the rest of the nation when it comes to prosecuted home claims, which has actually put considerable pressure on the Florida residential or commercial property insurance coverage marketplace. We have actually not been immune to these market dynamics and during the very first quarter we actively minimized our policies in force sequentially and minimized new and renewal policy counts in aggregate this quarter when compared to the very first quarter of 2020.
As we discussed in this recent short article, Floridas litigation concerns continue.
You can check out everything about Universals first catastrophe bond, the Cosaint Re Pte. Ltd. (Series 2021-1) deal and every other cat bond deal in the Artemis Deal Directory.

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!