Universal Insurance Holdings, the US insurer, has made substantial savings on its reinsurance programme on the back of changes made by what it called its experienced in-house reinsurance team.
The changes were made in the company’s two main operating subsidiaries: Universal Property & Casualty Insurance Company and American Platinum Property and Casualty Insurance Company. Their new reinsurance programmes are effective from June 1, 2014.
The total cost of the private reinsurance programme has dropped to around $130 million compared with some $165 million the year before, according to a recent Securities and Exchange Commission (SEC) filing.
The largest private participants involved include Odyssey Re, Everest Re, RenaissanceRe, Nephila Capital, Hannover Re, Hiscox, ACE Tempest Re and several Lloyd's of London syndicates.
“We are pleased with the completion and outcome of the 2014-2015 reinsurance programmes for our insurance companies," said Sean Downes, president and chief executive officer of the Company.
“We are uniquely positioned in the marketplace with the reinsurance expertise we maintain in-house. This year, we were able to realise extraordinary cost reductions within our reinsurance programs largely due to our exposure management actions and the diligent preparation by our reinsurance team.
“Not only did we achieve substantial savings within our programs over the 2013-2014 period but we also made significant structural and coverage enhancements further protecting the insurance companies in preparation for the 2014 hurricane season.”
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Universal Insurance Holdings, North America, Sean Downes