UPC Insurance
-
ACIC’s program offers sufficient coverage for approximately a one-in-167-year event and a one-in-100-year event followed by a one-in-50-year event in the same season, the company said.
-
The firm will exhaust its personal lines reinsurance coverage on the storm, pushing its personal lines carrier into insolvency, with commercial claims doubling.
-
The transaction provides relief for policyholders and agents, but especially for those policyholders whose policies expire past UPC’s June 1 deadline.
-
The carrier had earlier signalled that uncertainty over reinsurance would affect its ability to write new business.
-
In late August, UPC signaled that it will pull out of personal lines in Florida, Texas, Louisiana and New York.
-
UPC’s closing price hit the bottom of $0.99 per share on Sept 6 and has remained below the $1.00-threshold ever since.
-
The insurer has received roughly 19,000 claims to date and estimates it will receive 27,000 to 30,000 claims.
-
Loss creep from Hurricane Ida has led to the loss and an increase in loss reserves.
-
The carrier said its commercial business gave the company a platform to build on.
-
UPC policyholders could be force-placed by their mortgage lender.
-
On August 1, Demotech downgraded UPC's financial stability rating by two notches to M from A.
-
Demotech earlier warned that more than 15 possible carrier downgrades could come in July.
-
The insurer also completed the reorganization plan to consolidate its four Florida domiciled insurance carriers into two.
-
Kiln and UPC partnered to form the insurer in 2018, but it was merged into American Coastal earlier this year
-
The cover changed from cascading aggregate to an occurrence-based structure.
-
This is UPC’s latest attempt to downsize after offloading part of its personal lines business to HCI.
-
UPC recorded a $33.2mn loss in Q1, with a 30.9% drop in net premiums earned.
-
Ceded premiums earned were also up by 27.7% due to new quota share agreements.
-
The firm said its results reflect its aim to return to profitability in 2022.
-
The deal follows a similar transaction on northeast business in January.
-
The Florida-headquartered carrier blamed litigation rates and rising reinsurance costs for the move.
-
The financials from the listed Floridians show them plotting a path through challenges by exposure management and rate rises, but reinsurers are still picking up notable storm losses from this reinsurance-reliant group.
-
United Insurance holdings (UPC Insurance) reported net catastrophe losses of $37.0mn in Q3 2021, down from $140.0mn for the prior-year quarter, after action to significantly reduce gross and net catastrophe exposure during the past year led to a “materially reduced” hurricane loss.
-
The increase of $10mn reflects re-estimation and the addition of Hurricane Nicholas.