Mandjb, VIC's article re UVE is riddled with errors and false conclusions.
You certainly can argue that the Florida Prop and Casualty industry is overvalued as a whole. And I agree with that, and have stated that here.
That's based on the fact that Florida insurers have been living in a prolonged period of favorable weather conditions. leading to outsized profits and as rates have overall been increasing for years while reinsurance expense has been decreasing due to no storms and low interest environment. Additionally (and not mentioned by VIC), competition is increasing as we've recent increase in startups trying to take advantage of this huge profit environment...leading to recent lowering of rates by the insurers.
But picking out UVE from the pack is silly, imo. The fact is, the Hurricane season is coming to a close, and unless an weather happens soon, or out of season; the next nine months should be fairly strong for the Florida insurers, similar to last year. So, in the short term things should be ok for the group.
Again, imo, the article has out and out errors in it....and draws incorrect conclusions for many or most points specific to UVE.
best.
