Universal’s Insurance Subsidiaries Complete 2022-2023 Reinsurance Programs

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 2022-2023 reinsurance programs, effective June 1, 2022.

“We are pleased to announce the completion and outcome of the 2022-2023 reinsurance programs for both of our insurance companies,” said Matthew J. Palmieri, President of UPCIC. “Against a backdrop of wide ranging macro-economic pressures globally and an extremely challenging property insurance and reinsurance marketplace, particularly in the markets that we serve, we were able to secure the extensive reinsurance program we desired for the 2022 hurricane season. In fact, we were able to secure more capacity in future years, including the 2024 renewal. We appreciate our long-standing partners that have supported us for over a decade and we look forward to continuing to foster these specific key relationships as well as the new ones we established in this renewal cycle. As expected, our reinsurance costs have increased modestly over the 2021-2022 period, but remain in line with our expectations and give us the operational stability and coverage certainty we need to execute our plan well into the future.”

Universal’s Florida policies-in-force declined by 7% year-over-year as of first quarter 2022, while Florida premiums-in-force increased by 11%, as the Company continues to optimize its spread of risk and improve rate adequacy. UPCIC’s first event reinsurance tower has a top end of $3.16 billion, down 7% from last year, in line with the decline in Florida policies-in-force. Inclusive of subsequent event coverage, UPCIC purchased more open market capacity across all treaties for its expected risk count than ever before. UPCIC’s first event tower has $1.14 billion of limit that automatically reinstates to guarantee a certain level of protection in multi-event scenarios, including reinstatement premium protection for all private layers below the FHCF. UPCIC’s all states retentions remain unchanged at $45 million for first and second events and $25 million for third and fourth events. For a first event only, Universal Insurance Holdings (UIH) provides UPCIC with layer one coverage, utilizing the same captive as the 2021-2022 treaty period.