NU Online News Service, Nov. 10, 3:40 p.m. EST
One of Florida's largest writers of homeowners insurance and another domestic property insurer each reported gains in third quarter net income.
Fort Lauderdale, Fla.-based Universal Insurance Holdings Inc., which operates through subsidiary Universal Property & Casualty Company, posted a $134.4 million third quarter profit compared with net income of $11.5 million last year during the third quarter.
Clearwater, Fla.-based Homeowners Choice Inc. said it earned a third quarter profit of $1.7 million compared with a gain of $800,000 during the third quarter in 2009.
According to Highline Data, Universal owned 7.3 percent of the homeowners market in Florida, third to State Farm and Citizens Property Insurance Corp., the state's last-resort insurer. Highline Data is part of Summit Business Media, which also owns National Underwriter.
Homeowners Choice ranked 21st among homeowners insurers in 2009, with 1.3 percent of the market, according to Highline Data.
Both insurers said net premiums earned increased. Universal P&C said net premiums earned jumped 49.1 percent compared with the same quarter in 2009.
Homeowners Choice said net premiums written increased about 25.6 percent to $15.1 million, comparing the same time periods.
Universal P&C said its policy count continues to grow. As of the end of September the company had about 576,000 polices, up from 566,000 and the end of June and 536,000 at the end of September last year. The company writes in Florida, North Carolina, South Carolina and Hawaii.
During a conference call, Homeowners Choice Chief Executive Officer F.X. McCahill said the company plans to have 5 percent of the market by the end of next year.
At the start of November the company said it was approved to take out as many as 10,000 policies from state-run Citizens. Homeowners Choice has been a part of multiple take-out opportunities.
Universal P&C said it results were "moderated by state-mandated wind mitigation credits" while Homeowners Choice said it "struggled with reinsurance costs."
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