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 estimated catastrophe losses incurred during the third quarter
ending September 30, 2017 of approximately $83 million before income
taxes (approximately $54 million after tax) net of expected reinsurance
recoveries. The Company’s third quarter catastrophe losses included
claims from Hurricane Harvey, which made landfall as a category 4 storm
in Texas, and Hurricane Irma which was also a category 4 storm making
landfall in Florida.
UPC Insurance estimates gross losses (including losses at American
Coastal Insurance Company) from Harvey and Irma will be between
$300-$600 million before reinsurance recoveries and income taxes. The
Company’s catastrophe excess of loss reinsurance limits retained losses
to $81 million in total for these two events, which is further reduced
to $73 million by its quota share reinsurance. UPC’s wholly-owned
subsidiary Blueline Re, which has a separate reinsurance program for its
commercial excess and surplus lines property business, is also expected
to reach its $5 million retention for each hurricane, bringing the
maximum combined group pre-tax retained losses from these events to $83
million. The Company estimates it will have at least $2.2 billion of
reinsurance remaining for any potential future named windstorm and
earthquake catastrophe losses occurring prior to June 1, 2018. Maximum
pre-tax retained losses on any future windstorm or earthquake during
this period are $25 million for UPC and $5 million for Blueline Re.
“The strength of our capital structure and reinsurance program was
proven by the cat events that have occurred in 2017,” said John Forney,
President and CEO of UPC Insurance. “We have had two Cat 4 hurricanes
make landfall in our two largest states and experienced a full retention
on our non-hurricane catastrophe reinsurance program. Yet, we have at
least $2.2 billion of reinsurance remaining for future cat events and,
depending on how things go in Q4, a chance to be profitable for the
year. We’re focused on serving our policyholders needs now, and building
on this financial strength going forward.”
About UPC Insurance
Founded in 1999, UPC Insurance is an insurance holding company that
sources, writes and services residential property and casualty insurance
policies using a network of independent agents and a group of wholly
owned insurance subsidiaries. The Company currently writes policies in
Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New
Jersey, New York, North Carolina, Rhode Island, South Carolina and
Texas, and is licensed to write in Alabama, Delaware, Maryland,
Mississippi, New Hampshire, and Virginia. UPC Insurance also has a
commercial residential product in Florida. The Company’s commercial
presence was further expanded by the merger with Florida’s largest
commercial property writer, American Coastal Insurance Company. 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. UPC
Insurance is a company committed to financial stability and solvency.
Forward-Looking Information
Some of the statements in this release, including those about
estimated catastrophe losses, are “forward-looking statements” as that
term is defined in the Private Securities Litigation Reform Act of 1995
(PSLRA). These forward-looking statements are made pursuant to the safe
harbor provisions of the PSLRA. Actual results may differ materially
from those suggested by the forward-looking statements as a result of
risks and uncertainties, which include, among others, those discussed or
identified from time to time in our public filings with the Securities
and Exchange Commission. UPC Insurance assumes no obligation to update
any forward-looking information set forth in this release, which speaks
as of its date.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170925006349/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.