Piper Sandler cuts Universal Insurance PT on hurricane Ian losses

Universal Insurance Holdings

17/10/2022 11:42

** Piper Sandler cuts housing insurer Universal Insurance
Holdings Inc's  UVE.N  PT to $11.50 from $13.50 on additional
loss expectations related to hurricane Ian; maintains 'neutral'
rating
    ** Revised PT implies an upside of ~20% on last close vs the
previous PT's upside of ~29%
    ** Brokerage revises loss estimates to around $114 million
from previous expectation of $45 million on primary co 
    ** "New estimate assumes Hurricane Ian losses exhausted
UVE's reinsurance retentions and co-payments, but does not
exceed its total reinsurance tower" - Piper Sandler 
    ** Co had forecast a $1 billion gross loss from the
hurricane, covered by its reinsurance cover, which is a total of
$3 billion 
    ** Received about 18,000 claims - UVE 
    ** Brokerage says co forecast remains uncertain about its
primary business of insurance in Florida on question of price
increase, regulatory limitations 
    ** As of last close, the stock is down around 43% YTD       
 (Reporting by Anirban Chakroborti in Bengaluru)
 ((Anirban.Chakroborti@thomsonreuters.com;))