Universal Property & Casualty Insurance Co., now Florida’s second-largest property insurer beh
ind only State Farm Florida, continues to rebound from the dark days of Florida’s insurance crisis, with new policies, higher profits and an improved combined ratio.
CEO Stephen Donaghy again credited 2022 legislative changes for stabilizing the Florida market, trimming excessive litigation costs and inducing lower reinsura
nce costs. His words echoed what other insurance executives and analysts have said in the last 12 months.
“Notably, the net loss ratio improved by 7.5 points year-over-year, driven by favorable claims and litigation trends that we expect to benefit non-catastrophe margins throughout the year,” Donaghy said in a Universal Insurance
Holdings earnings statement last week. “Strong retention and new business generation resulted in 4.1% direct premiums written growth, including growth in Florida and across our multi-state footprint.”
As of the end of Q2 this year, Universal and its smaller sister company, American Platinum Property & Casualty, together held 934,371 policies in force
across several states. That’s a 7% increase from the second quarter of 2025. In Florida, the companies had 590,893 policies, almost a 6% increase from this time last year, the parent company’s earning statement shows.
Total direct written premiums for Universal Insurance Holdings climbed to $621 million for the quarter, up from $597 million for Q2 2025. The combined r
atio continued to improve, dropping to 91.6%, compared to 97.8% a year ago. In the second quarter of 2022, near the height of the Florida litigation crisis, Universal Insurance Holdings’ combined ratio was just over 100%.
Operating income for Q2 rose by 70% from a year ago, topping $81.6 million. Net income rose by a similar margin to more than $59 million for the quarter. Losses and loss adjustment expenses fell from $260 million last year to $244 million.
“Combined with more favorable reinsurance rates and our ability to write rate-adequate premium through our robust organic new business pipeline, we belie
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ve we are well positioned to deliver sustained profitable growth,” Donaghy said in the earnings report.
The group was last valued at £10 billion following an internal share sale in 2024 but the impe
nding capital injection would help it on its way to a market capitalization within fighting distance of its largest publicly traded rivals. Achieving its targeted v
aluation would also propel the firm’s eponymous founder, who retains a minority stake, into the ranks of the UK’s billionaires, the people said.
Founded in the 1990s by David Howden, himself a descendant of a British insurance-broking dynasty, the firm now employs more than 24,000 staff in offices from
Tokyo to Miami. Its core business involves placing complex risks with specialty insurers and reinsurers, writing cover and even advising insurance groups on capital and deals.
