UNIVERSAL INSURANCE HOLDINGS, INC. 8-K

What Happened
Universal Insurance Holdings, Inc. (through subsidiaries Universal Property & Casualty Insurance Company — UPCIC — and American Platinum Property and Casualty Insurance Company — APPCIC) announced placement of their combined 2026–2027 reinsurance program, effective June 1, 2026. The program establishes a primary first-event retention of $45 million and an all-states first-event reinsurance tower that extends to $2.623 billion. The companies continue to elect the 90% Florida Hurricane Catastrophe Fund (FHCF) reimbursement level for the June 1, 2026 contracts.

Key Details

• First-event retention: $45 million; first-event reinsurance tower extends to $2.623 billion (no co-participation, no LAE limits, no accelerated deposits).
• If the first event fully exhausts that $2.623B 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; Company purchased reinstatement premium protection (RPP) or specific second-event contracts to cover reinstatement premiums.
• Captive/private-market structure: a 100% first-event layer of $66M in excess of $45M via the Company’s captive; a specific 2nd-event private market excess of $66M in excess of $45M behind the captive; and specific 3rd/4th-event private market excess of $86M in excess of $25M (includes $20M reduction in retention for 3rd/4th events).
• FHCF election at 90%: estimated FHCF mandatory layer ~ $1.390 billion of coverage for UPCIC and ~ $25 million for APPCIC (which supports private-market coverage).
• Secured $352 million of catastrophe capacity with contractual limits that extend coverage into the 2027–2028 treaty period; $277 million of that capacity sits below the FHCF layer.

Why It Matters
This reinsurance program is intended to limit the Company’s exposure to large hurricane and catastrophe losses for the 2026–2027 policy year by layering private-market, captive and FHCF protection and by purchasing reinstatement premium protection. For investors, these arrangements affect the company’s potential loss volatility, capital adequacy, and liquidity following catastrophic events. However, the filing also notes that the Insurance Entities remain ultimately responsible for insured losses (including if a reinsurer fails to pay), and inability to satisfy valid catastrophic claims could materially harm the Company’s results of operations, financial condition and liquidity.