SARASOTA, FL — (April 14, 2009) Universal Insurance Company of North America (Universal North America) has received an upgraded Financial Stability Rating® of A' (A Prime) Unsurpassed for its Florida operations from Demotech, the industry’s leading rater of insurance company financial stability.  Demotech upgraded the Financial Stability Rating® after an extensive evaluation of the company’s financial position, reinsurance program and contingency plans.

Universal North America previously earned a Financial Stability Rating® of A, Exceptional.  The upgrade was announced last week, following a review of the contingency plans of Florida property insurance carriers.  In November 2008, Demotech initiated a supplemental review of carriers that rely heavily on reinsurance protection secured from the Florida Hurricane Catastrophe Fund (FHCF). 

According to Demotech, “regardless of the severity of a general economic downturn or deterioration in the insurance cycle, at least 99 percent of the insurers receiving a Financial Stability Rating®  of A' (A Prime) are expected to have positive surplus as regards policyholders as of 18 months from the initial date of rating assignment.”
Universal North America received the upgraded rating due in part to the company’s conservative management of its Florida property and casualty operations and exposures. According to Rick Espino, president of Universal North America, unlike many carriers, Universal North America purchases reinsurance well beyond the requirements of the State of Florida. 

“In these tough times, when many carriers may be facing Financial Stability Rating®  downgrades, it is satisfying and reassuring to be recognized for the commitment that Universal North America made long ago: smart risk management and responsible underwriting, even though it may not be the popular thing to do.  It’s our policy and it’s serving us well.  We are very pleased that Demotech recognizes the depth of our financial resources and our position that doing the best for our policyholders means having the strength and stability to meet their needs for the long haul,” said Espino.

 “Everyone is looking for value,” adds Espino, “especially in today’s economy. Sometimes, it is hard to understand why one Homeowners insurance policy may cost more than the next. The difference is that not all policies offer the same protection.”

He continues, “Many competitors in the market actively undercharge for their policies to get business, betting against Mother Nature that Florida won’t have another catastrophic storm.  The Financial Stability Rating® clearly and unequivocally shows an insurance company’s ability to back up a policy and deliver on its promise to policyholders after a major storm. Universal North America is one of a select few prepared operationally and financially to respond quickly to claims.”

Universal North America began operations in 2004 and is based in Sarasota, Fla.  Universal Insurance Company of North America’s sister company, Universal North America Insurance Company is currently operating in five other states, with expansion into more states to follow later this year. In Florida, the company provides home, flood and commercial insurance coverage to thousands of policyholders. 

Universal North America is a wholly-owned subsidiary of Universal Group, Inc. (UGI), the largest provider of personal lines insurance in Puerto Rico.   The Puerto Rico Property and Casualty Group maintains an “A” (Excellent) Financial Strength Rating from A.M. Best, with consolidated assets in excess of $1.5 Billion and consolidated surplus in excess of $320