At a glance
- The trade publication attributes much of the improvement to the cession shift rather than to underlying loss experience.
- For allocators holding Florida wind cat bonds or collateralized reinsurance, the cession ratio measures price as much as risk transfer.
- Universal now holds more insured value outside Florida than inside, with $231.2 billion outside versus $198.4 billion in the state as of Sept. 30.
Universal Insurance Holdings passed 27.6% of premium to reinsurers in the third quarter, down from 32.7% a year earlier, after a new reinsurance program took effect June 1, according to Insurance Business America.
Net income rose 31.8% to $52.5 million and the combined ratio improved to 91.0% from 96.4% in the quarter ended Sept. 30. The trade publication attributes much of the improvement to the cession shift rather than to underlying loss experience.
For allocators holding Florida wind cat bonds or collateralized reinsurance, the cession ratio measures price as much as risk transfer. Ceded premium falls when reinsurance rates fall even if a carrier buys the same limit of coverage. Insurance Business America links Universal's drop to a program that now costs it less, not to a decision to buy less cover. The report does not give limit, attachment or retention figures, so whether the company carries more net risk or the same risk at a lower price is the diligence question.
Universal now holds more insured value outside Florida than inside, with $231.2 billion outside versus $198.4 billion in the state as of Sept. 30. Florida direct premiums written fell 3.3% year over year to $414.4 million in the quarter, while other states rose 18.5% to $194.5 million. The company writes in 19 states through appointed independent agents.
Reported by the Insurance-Linked & Specialty desk from Insurance Business America. Published . Updated Oct 24, 2026 · 11:34 p.m. ET. Corrections