Universal Insurance (NYSE: UVE) completes $2.623B catastrophe reinsurance program
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Universal Insurance Holdings completed the 2026-2027 catastrophe reinsurance program for its subsidiaries UPCIC and APPCIC, effective June 1, 2026. The combined All States first-event reinsurance tower extends to $2.623 billion above a first-event retention of $45 million, with no co-participation in any layer.
The program includes full reinstatement on $1.098 billion of non-FHCF catastrophe cover for a guaranteed second event and an estimated FHCF mandatory layer of about $1.390 billion for UPCIC and $25 million for APPCIC. The companies also added $352 million of multi-year catastrophe capacity extending into the 2027-2028 treaty period, and state that the largest private reinsurers involved are rated ‘A’ or higher by AM Best.
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Insights
Universal secures a larger, largely stable cat reinsurance tower with added multi-year protection.
Universal reports that UPCIC and APPCIC have completed a 2026-2027 reinsurance program with a first-event retention of $45 million and an All States tower up to $2.623 billion. Management notes this is about $50 million higher than the prior treaty period.
The structure includes full reinstatement on $1.098 billion of non-FHCF catastrophe cover and estimated FHCF layers of about $1.390 billion for UPCIC and $25 million for APPCIC. The company highlights continuity in key reinsurers, all rated ‘A’ or higher by AM Best.
They also added $352 million of multi-year catastrophe capacity, largely below the FHCF layer, extending into the 2027-2028 treaty period, while keeping first-event statutory retention unchanged. As of March 31, 2026, Florida represents less than 50% of total insured value, indicating some geographic diversification.
8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
First-event retention: $45 million
All States reinsurance tower: $2.623 billion
Second-event exhaustion point: $1.209 billion
+5 more
8 metrics
First-event retention
$45 million
Combined UPCIC/APPCIC first-event statutory retention for 2026-2027
All States reinsurance tower
$2.623 billion
Top of combined UPCIC/APPCIC first-event tower, 2026-2027
Second-event exhaustion point
$1.209 billion
Assuming first event fully exhausts $2.623 billion tower
Reinstatement catastrophe cover
$1.098 billion
Non-FHCF first-event coverage with full reinstatement available
UPCIC FHCF coverage
$1.390 billion
Estimated mandatory FHCF layer effective June 1, 2026
APPCIC FHCF coverage
$25 million
Estimated mandatory FHCF layer effective June 1, 2026
Multi-year catastrophe capacity
$352 million
Capacity extending protection into 2027-2028 treaty period
Capacity below FHCF
$277 million
Portion of multi-year capacity sitting below FHCF layer
Key Terms
reinsurance program, Florida Hurricane Catastrophe Fund (FHCF), reinstatement premium protection, catastrophe capacity, +2 more
6 terms
reinsurance program financial
"completed the placement of their combined 2026-2027 reinsurance program, effective June 1, 2026"
A reinsurance program is a plan where an insurance company shares some of its risks with another company to protect itself from very large or unexpected losses. It acts like an insurance policy for the insurance company, helping it stay financially stable. For investors, understanding a reinsurance program is important because it affects the company's ability to handle large claims and maintain financial health.
Florida Hurricane Catastrophe Fund (FHCF) financial
"sits below the Florida Hurricane Catastrophe Fund (FHCF) layer"
catastrophe capacity financial
"secured $352 million of catastrophe capacity with contractually agreed limits"
statutory retention financial
"The insurance entities’ combined $45 million first event statutory retention remains unchanged"
catastrophe excess of loss coverage financial
"private market catastrophe excess of loss coverage of $86 million in excess of $25 million"
FAQ
What did Universal Insurance Holdings (UVE) announce in this 8-K?
Universal Insurance Holdings announced completion of the 2026-2027 catastrophe reinsurance program for subsidiaries UPCIC and APPCIC, effective June 1, 2026. The program defines how much loss reinsurers cover and what the company retains on major catastrophe events.
How large is Universal Insurance’s 2026-2027 reinsurance tower for catastrophes?
The combined UPCIC and APPCIC All States reinsurance tower for a first catastrophe event extends to $2.623 billion above a $45 million retention. This means reinsurers cover losses between $45 million and $2.623 billion for a single covered event, subject to contract terms.
What is Universal Insurance’s first-event retention under the new reinsurance program?
The insurance entities’ combined first-event statutory retention remains $45 million. This is the amount UPCIC and APPCIC must absorb before reinsurance responds in a qualifying catastrophe, directly affecting how much capital is at risk on initial events each treaty year.
What multi-year catastrophe coverage did Universal Insurance secure?
UPCIC and APPCIC secured $352 million of catastrophe capacity with contractually agreed limits extending into the 2027-2028 treaty period. Of this, $277 million sits below the Florida Hurricane Catastrophe Fund layer, providing additional protection for future years’ events in that attachment range.
How much coverage does the Florida Hurricane Catastrophe Fund provide UPCIC and APPCIC?
For FHCF reimbursement contracts effective June 1, 2026, UPCIC’s mandatory FHCF layer is estimated at about $1.390 billion, while APPCIC’s is about $25 million. These layers inure to the benefit of private market reinsurance, reducing net catastrophe exposure above the company’s retention.
What ratings do Universal Insurance’s largest private reinsurers hold?
The largest private reinsurance participants in the 2026-2027 program, including firms like RenaissanceRe, Munich Re, and Lloyd’s syndicates, maintain AM Best financial strength ratings of ‘A’ or higher. These ratings indicate strong assessed claims-paying ability under AM Best’s criteria.
How concentrated is Universal Insurance’s exposure to Florida as of March 31, 2026?
As of March 31, 2026, Florida represents less than 50% of Universal Insurance’s total insured value. This suggests the portfolio includes a substantial share of risks outside Florida, potentially moderating dependence on a single state’s catastrophe and regulatory environment.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) May 28, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (954 ) 958-1200
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 8.01 | Other Events | ||||
Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC” and together with UPCIC, the “Insurance Entities”), each a wholly-owned subsidiary of Universal Insurance Holdings, Inc. (the “Company”), have completed the placement of their combined 2026-2027 reinsurance program, effective June 1, 2026.
The Insurance Entities are responsible for insured losses related to catastrophic events in excess of coverage provided by their reinsurance programs. The Insurance Entities also remain responsible for insured losses notwithstanding the failure of any reinsurer to make payments otherwise due to the Insurance Entities. The Insurance Entities’ inability to satisfy valid insurance claims resulting from catastrophic events could have a material adverse effect on the Company’s results of operations, financial condition and liquidity.
UPCIC/APPCIC 2026-2027 All States Reinsurance Program
•First event All States retention of $45 million.
•All States first event tower extends to $2.623 billion with no co-participation in any of the layers, no limitation on loss adjustment expenses and no accelerated deposit premiums.
•Assuming a first event completely exhausts the $2.623 billion tower, the second event exhaustion point would be $1.209 billion.
•Full reinstatement available on $1.098 billion of non-FHCF first event catastrophe coverage for guaranteed second event coverage. For all layers purchased between $45 million and the projected attachment point of the FHCF layer, to the extent that all of our coverage or a portion thereof is exhausted in a catastrophic event and reinstatement premium is due, we have purchased enough reinstatement premium protection ("RPP") limit to pay the premium necessary for the reinstatement of these coverages or have secured a specific second event contract.
•First event layer of 100% of $66 million in excess of $45 million established by UIH in captive insurance arrangement
•Specific 2nd event private market excess of loss coverage of $66 million in excess of $45 million sitting behind captive arrangement
•Specific 3rd and 4th event private market catastrophe excess of loss coverage of $86 million in excess of $25 million provides frequency protection for multiple events during the treaty period including a $20 million reduction in retention for a 3rd and 4th event.
•For the FHCF Reimbursement Contracts effective June 1, 2026, both UPCIC and APPCIC have continued the election of the 90% coverage level. We estimate the total mandatory FHCF layer will provide approximately $1.390 billion of coverage for UPCIC, which inures to the benefit of the open market coverage secured from private reinsurers and we estimate the total mandatory FHCF layer will provide approximately $25 million of coverage for APPCIC, which inures to the benefit of the open market coverage secured from private reinsurers.
•To further insulate for future years, UPCIC and APPCIC have secured $352 million of catastrophe capacity with contractually agreed limits that extend coverage to include the 2027-2028 treaty period, of which $277 million of the capacity sits below the FHCF layer.
Press Release
The Company has issued a press release announcing the placement of the combined 2026-2027 reinsurance program. Such press release is attached to this report as Exhibit 99.1 and is incorporated herein by reference.
Forward-Looking Statements
This filing may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “will,” “plan,” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include commentary on plans, products and lines of business, marketing arrangements, reinsurance programs and other business developments and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, including those risks and uncertainties described under the heading “Risk Factors” and “Liquidity and Capital Resources” in our 2025 Annual Report on Form 10-K, and supplemented in our subsequent Quarterly Reports on Form 10-Q. Future results could differ materially from those described, and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information regarding risk factors that could affect the Company’s operations and future results, refer to the Company’s reports filed with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K and the most recent quarterly reports on Form 10-Q.
| Item 9.01 | Financial Statements and Exhibits | ||||
(d) Exhibits:
| Exhibit Number | Description | |||||||
99.1 | Press Release dated May 28, 2026. | |||||||
| 104 | The cover page from this Current Report on Form 8-K formatted in Inline XBRL (included as Exhibit 101). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: May 28, 2026 | UNIVERSAL INSURANCE HOLDINGS, INC. | |||||||||||||||||||
| By: | /s/ Stephen J. Donaghy | |||||||||||||||||||
| Name: | Stephen J. Donaghy | |||||||||||||||||||
| Title: | Chief Executive Officer | |||||||||||||||||||
Exhibit 99.1
Universal's Insurance Subsidiaries Complete 2026-2027 Reinsurance Program
•Successfully secured a combined UPCIC and APPCIC catastrophe reinsurance program with no material changes to historical reinsurance partners or terms and conditions.
•Added $352 million of multi-year coverage, extending through the 2027-2028 treaty period, most of which sits below the FHCF attachment point.
•The largest private reinsurance participants all maintain a rating from AM Best of ‘A’ or higher (Nephila Capital/Markel, RenaissanceRe, Munich Re, Chubb Tempest Re, Ariel Re, Everest Re and Lloyd’s of London syndicates).
Fort Lauderdale, Fla., May 28, 2026 – Universal Insurance Holdings, Inc. (NYSE: UVE)(“Universal” or the “Company”) today announced the completion by Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC”), the Company’s wholly-owned insurance company subsidiaries, of their combined 2026-2027 reinsurance program, effective June 1, 2026.
“We are pleased to announce the completion of the 2026-2027 reinsurance program for our insurance companies,” said Matthew J. Palmieri, Chief Risk Officer. “The catastrophe reinsurance market is moderating after a benign 2025 Atlantic hurricane season, as well as from sweeping property insurance reforms passed in Florida, which have meaningfully stabilized the market. We secured first and subsequent event capacity at efficient pricing with our key, long standing reinsurance relationships, some of which have spanned three decades, and added more multi-year capacity in the process.”
UPCIC/APPCIC set the top of its combined reinsurance tower for a single All States (including Florida) event to $2.623 billion, an increase of approximately $50 million over the 2025-2026 treaty period. To further insulate future years, UPCIC has secured $352 million of catastrophe capacity with contractually agreed limits that extend coverage to include the 2027-2028 treaty period, of which $277 million sits below the Florida Hurricane Catastrophe Fund (FHCF) layer.
As of March 31, 2026, Florida represents less than 50% of the Company’s total insured value. The insurance entities’ combined $45 million first event statutory retention remains unchanged from the prior year.
About Universal
Universal Insurance Holdings, Inc. (NYSE: UVE) is a holding company providing property and casualty insurance and value-added insurance services. We develop, market, and write insurance products for consumers in the personal residential homeowners lines of business and perform substantially all other insurance-related services for our primary insurance entities, including risk management, claims management and distribution. We provide insurance products in the United States through both our appointed independent agents and our direct online distribution channels. Learn more at universalinsuranceholdings.com or get an insurance quote at Clovered.com.
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “will,” “plan,” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include commentary
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on plans, products and lines of business, marketing arrangements, reinsurance programs and other business developments and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, including those risks and uncertainties described under the heading “Risk Factors” and “Liquidity and Capital Resources” in our 2025 Annual Report on Form 10-K, and supplemented in our subsequent Quarterly Reports on Form 10-Q. Future results could differ materially from those described, and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information regarding risk factors that could affect the Company’s operations and future results, refer to the Company’s reports filed with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K and the most recent quarterly reports on Form 10-Q.
Investors/Media:
Arash Soleimani, CFA, CPA, CPCU, ARe
Chief Strategy Officer
asoleimani@universalproperty.com
954-804-8874
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