Universal Insurance Holds Pricing Steady in Florida Despite New Competition
Universal Insurance sticks to its pricing plan in Florida as new carriers enter the market. Q1 results show strong income growth and stable reinsurance backing.
Universal Property & Casualty Insurance is sticking to its Florida pricing strategy—even as more than ten new insurers have entered the state’s homeowners insurance market since 2022.
CEO Stephen Donaghy said the company isn’t chasing new regional markets. Instead, it's focused on keeping its current portfolio stable and avoiding unnecessary risks.
The company’s Q1 2025 report showed solid gains:
- Net income rose 23.1% to $41.4 million, helped by fewer weather-related losses.
- Net earned premiums increased 6.5% to $355.7 million.
- The combined ratio improved to 95.
Donaghy credited Florida’s 2022 insurance reform laws for helping stabilize the market and giving policyholders more clarity and options. Many of the new carriers, including names like Mangrove and Mainsail, are testing the waters but haven't scaled statewide just yet.
Meanwhile, Universal’s growth outside Florida made up for a 3% dip in its home state. CFO Frank Wilcox said that gains came from more policies, rate changes, and inflation impacts.
The company also locked in its 2025–2026 reinsurance program, adding $352 million in multi-year coverage through 2027. Donaghy said the process was smooth, with no capacity issues, again pointing to improved market conditions post-reform.
Still, there’s some controversy. Universal agreed to return $30 million to Florida’s hurricane fund after being accused of submitting ineligible Hurricane Irma claims. The company denies any wrongdoing.
If you’re comparing providers, you can see how Universal stacks up in our Florida homeowners insurance carrier comparison. Also worth a look: how People’s Trust is handling its appeal in a separate dispute.
