Universal Property Doubles Profits After $1.3 Million Fine
Universal Property & Casualty Insurance reported record profits of $17 million the second quarter of 2013. These are Universal’s highest net earnings since 2007. Compared to Universal’s profit of $7.8 million for the same quarter last year, Universal more than doubled their profits. Universal’s CEO, Sean Downes, stated that with “underwriting margins continuing to improve and a significantly better investment portfolio performance, we were able to more than double earnings over the second quarter of last year. With first half EPS growth of nearly 66 percent, we believe Universal is well positioned to continue implementing our strategic business plan.”What is Universal’s strategic business plan? Is it simply increasing homeowner insurance premiums by over 14% in February, or engaging in improper claims practices (discussed in our prior blog post here) resulting in substantial windfalls to Universal? Either way, when you are making $17 million a quarter utilizing a “strategic business plan,” a $1.3 million dollar fine is pocket change.A link to Universal Property & Casualty’s official press release can be found here.