Universal Insurance Holdings, the parent company of Florida-focused individual residential insurer Universal Property & Casualty Insurance Company, is taking a proactive approach to securing its catastrophe coverage for the coming years, reflecting its strong capital position and confidence in market conditions.
CEO Stephen J. Donaghy said the company is “well underway with negotiations and deployment of our 2026 reinsurance program, with 90% of our first catastrophic catastrophe tower in place and meaningful additional multi-year capacity secured for the 2027 hurricane season.” He added that the group’s “capital position is strong and we believe our total reserves are more than adequate.”
The update follows strong quarterly results, with net profit rising significantly and combined ratio improving. According to reports in February 2026, Universal Pictures’ net profit in the fourth quarter of 2025 soared to US$66.6 million, and the combined ratio increased to 87.5%.
As previously reported, Universal’s subsidiary completed its 2025-2026 reinsurance program in May 2025, increasing coverage at the top of the reinsurance tower to $2.526 billion and securing additional multi-year capacity extending into the 2026-2027 period.
During the earnings call, Donaghy highlighted the company’s favorable presence in Florida, noting: “We’re particularly pleased with our Florida business and see very positive things as a result.”
He praised state-level reforms for helping to stabilize the market: “I would add that without the actions taken by the state of Florida and Governor DeSantis, we would not be in this position — the entire industry would not be in the position it is today, not just Universal. Without action, money will continue to flow to third parties that are not affected by the claims, and that does no one any good.”
The company’s Florida operations were supported by broader market conditions. As previously reported, Florida has enacted major insurance reforms, including Senate Bill 2-A, which observers say will help increase market stability.
The CEO also highlighted Universal’s approach to returning benefits to policyholders. “As you can see, as we continue, we’re seeing slight declines in ’24 and ’25, we started our actuarial study of ’26 rates at the end of March, and we’re continuing to do the right thing,” Donaghy said.
He added, “Falling rates don’t always lead to lower revenue, that’s due to favorable legislation and the less severe cases and frequency that we’re seeing, coupled with potential reductions in reinsurance and fees, it’s a very favorable environment right now and we look forward to continuing to return money to our insureds as a result. I would also add that our retention rates have never been better. So we’re in a very good position.”
