ST. PETERSBURG, Fla.--(BUSINESS WIRE)--
United Insurance Holdings Corp. (NASDAQ:UIHC)(UPC Insurance or
the Company), a property and casualty insurance holding company, today
announced that it successfully placed a new quota share reinsurance
program effective December 1, 2016, as well as renewed its aggregate
excess of loss reinsurance program effective January 1, 2017.
The programs provide coverage for in-force, new and renewal business.
The quota share program provides coverage only for United Property and
Casualty Insurance Company, while the aggregate excess of loss program
provides coverage for United Property and Casualty Insurance Company,
Interboro Insurance Company, and Family Security Insurance Company.
These new programs are designed to work in conjunction with UPC
Insurance's catastrophe excess of loss reinsurance program to provide
the Company broad risk transfer protection and to lesson financial
volatility.
The quota share agreement includes a cession rate of 20% (15% on single
year and 5% over a two-year period) for all subject business. The quota
share agreement provides coverage for all catastrophe perils (i.e.,
hurricanes, tropical storms, tropical depressions and earthquakes),
other-catastrophe perils (i.e., weather-related perils other than
hurricanes, tropical storms, tropical depressions and earthquakes), and
attritional losses. For other-catastrophe perils, the quota share
agreement provides coverage alongside the aggregate excess of loss
program described herein, after the Company’s retention has been
satisfied. For catastrophe perils, the quota share agreement provides
ground-up protection that effectively reduces the Company’s retention
for catastrophe losses. Quota share agreement reinsurers' participation
in paying attritional losses is subject to an attritional loss ratio cap.
The aggregate excess of loss agreement provides coverage only for
other-catastrophe perils. Under this agreement, for other-catastrophe
losses in excess of $1 million but less than $15 million, UPC will
retain, in the aggregate, 100% of those losses up to $30 million. The
reinsurers will then be liable for all losses excess of $30 million in
the aggregate not to exceed an annual aggregate limit of $30 million.
This program was placed at 85% rather than 100% because of the quota
share agreement reinsurers’ participation in paying other-catastrophe
losses after the $30 million retention.
“We are pleased to put both of these treaties in place,” said John
Forney, President and CEO of UPC Insurance. “In combination with our
core catastrophe excess-of loss-program that we place every June, these
reinsurance programs provide us comprehensive protection against losses
from hurricanes, earthquakes, and other natural perils. In addition, the
quota share reinsurance agreement marks the first time in our company’s
history that we have done external quota share reinsurance and provides
meaningful risk transfer for both catastrophe and attritional losses. We
appreciate the confidence and support shown by our reinsurance partners
on both programs.”
About UPC Insurance
Founded in 1999, UPC Insurance is an insurance holding company that
sources, writes and services residential and commercial property and
casualty insurance policies using a network of independent agents and a
group of wholly owned insurance subsidiaries. Our insurance affiliates
write and service property and casualty insurance in Connecticut,
Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, New
York, North Carolina, Rhode Island, South Carolina and Texas and are
licensed to write in Alabama, Delaware, Maryland, Mississippi, New
Hampshire, and Virginia. From its headquarters in St. Petersburg, UPC
Insurance's team of dedicated professionals manages a completely
integrated insurance company, including sales, underwriting, customer
service and claims.
Forward-Looking Statements
Statements in this press release, conference call identified above,
and otherwise, that are not historical facts are “forward-looking
statements” that anticipate results based on our estimates, assumptions
and plans that are subject to uncertainty.These statements are
made subject to the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995 (PSLRA). These forward-looking statements
do not relate strictly to historical or current facts and may be
identified by their use of words like “may,” “will,” “expect,”
“believe,” “anticipate,” “intend,” “could,” “would,” “estimate,” “or
“continue” and other words with similar meanings. We believe these
statements are based on reasonable estimates, assumptions and plans.
However, if the estimates, assumptions or plans underlying the
forward-looking statements prove inaccurate or if other risks or
uncertainties arise, actual results could differ materially from those
communicated in these forward-looking statements. Factors that could
cause actual results to differ materially from those expressed in, or
implied by, the forward-looking statements may be found in our filings
with the U.S. Securities and Exchange Commission, including the “Risk
Factors” section in our most recent Annual Report on Form 10-K and
quarterly report on Form 10-Q. Forward-looking statements speak only as
of the date on which they are made, and we assume no obligation to
update or revise any forward-looking statement.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161213005448/en/
United Insurance Holdings Corp.
Jessica Strathman,
727-895-7737
SEC Reporting Manager
jstrathman@upcinsurance.com
or
INVESTOR
RELATIONS:
The Equity Group
Adam Prior, 212-836-9606
Senior
Vice-President
aprior@equityny.com
Source: United Insurance Holdings Corp.