Universal Insurance Holdings, Inc. (NYSE:UVE) Q3 2022 Earnings Conference Call October 28, 2022 10:00 AM ET
Company Participants
Arash Soleimani – Chief Strategy Officer
Steve Donaghy – Chief Executive Officer
Frank Wilcox – Chief Financial Officer
Conference Call Participants
Paul Newsome – Piper Sandler
Nick Iacoviello – Dowling
Operator
Good morning, ladies and gentlemen, and welcome to Universal’s Third Quarter 2022 Earnings Conference Call. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Arash Soleimani, Chief Strategy Officer.
Arash Soleimani
Good morning. Thank you for joining us today. Welcome to our quarterly earnings call. On the call with me today are Steve Donaghy, Chief Executive Officer; and Frank Wilcox, Chief Financial Officer.
Before we begin, please note today’s discussion may contain forward-looking statements and non-GAAP financial measures. Forward-looking statements involve assumptions, risks and uncertainties that could cause actual results to differ materially from those statements.
For more information, please see the press release and Universal’s SEC filings, all of which are available on the Investors section of our website at universalinsuranceholdings.com and on the SEC’s website. A reconciliation of non-GAAP financial measures to comparable GAAP measures is included in the quarterly press release and can also be found on Universal’s website at universalinsuranceholdings.com.
With that, I’ll turn the call over to Steve.
Steve Donaghy
Thanks, Arash. Good morning, everyone. Our thoughts continue to be with all those impacted by Hurricane Ian. Since landfall, we’ve had boots on the ground, helping our policy holders in their time of need. As we recently disclosed, our portfolio is underweight in the most impacted regions and is further cushioned by our high proportion of condo unit and renters policies, which provide interior and contents coverage. To date, claims volume from Hurricane Ian reflects approximately 50% of Irma’s volume received at this point.
We maintain the largest claims and legal team in the state of Florida, providing us with significant resources and capacity to efficiently close Ian-related claims. Despite our $1 billion estimated gross loss from Hurricane Ian, we have a $3 billion reinsurance tower in place for a subsequent event in the 2022 Atlantic hurricane season and our consolidated retention would be meaningfully lower, highlighting the strength and breadth of our catastrophe reinsurance program.
We started the planning process for the 2023 Atlantic hurricane season and are already well underway, as we have almost $400 million of pre-negotiated multi-year capacity below the Florida Hurricane Catastrophe Fund’s attachment point, approximately $200 million of estimated cost free coverage from the Reinsurance to Assist Policyholders program and a projected $150 million from our catastrophe bond. Coupled with our 90% participation rate in the Florida Hurricane Catastrophe Fund, we estimate that the vast majority of our first event 2023 catastrophe reinsurance program will be insulated from open market pricing dynamics. We value our reinsurance partner relationships and appreciate their support.