4 months after its largest subsidiary stopped writing new home-owner enterprise in Florida, United Insurance coverage Holdings Corp. introduced it might consolidate 4 of its corporations into three.
Publicly traded United, often known as UPC Insurance coverage, owns Journey Insurance coverage Co., American Coastal Insurance coverage, Household Safety Insurance coverage and one of many largest property underwriters in Florida, United Property & Casualty Insurance coverage Co. Firm officers introduced this week that they might search regulatory approval to merge Journey into American Coastal.
Journey’s capital can be redistributed between the remaining three insurers.
“Our plan will allow us to realize extra steadiness between business and private traces by reallocating present capital throughout our group and permitting American Coastal Insurance coverage Co. to focus solely on continued worthwhile development in business traces, whereas Household Safety Insurance coverage Co. and United Property & Casualty Insurance coverage Co. focus solely on restoring underwriting profitability in our private traces enterprise,” Dan Peed, chairman and CEO of UPC, stated in a press launch.
Firm officers didn’t say how a lot of the reorganization is expounded to Florida’s topsy-turvy property insurance coverage market, the place carriers have reported heavy losses from hurricanes, fraudulent roof claims and excessive quantities of claims litigation. The 23-year-old United despatched a jolt by the Florida insurance coverage group when it turned the primary main provider lately to cease writing new home-owner, condominium and rental property insurance policies, beginning Jan. 1 of this yr. Not less than 5 others have since taken comparable actions, and at two had been subsequently deemed bancrupt in Florida.
The Florida Workplace of Insurance coverage Regulation’s quarterly experiences don’t embody UPC corporations, and firm officers couldn’t be reached for remark Thursday on the variety of insurance policies that may be affected by the reorganization. At one time, United ranked as one the highest 10 property insurers in Florida, with greater than 180,000 insurance policies in power.
UPC corporations, primarily based in St. Petersburg, Florida, additionally write in Louisiana, New York, and Texas, in line with a information launch. It additionally famous that renewal rights for its insurance policies in Georgia, South Carolina, North Carolina and Massachusetts have have been offered and all premiums and losses have been ceded. Additional particulars weren’t accessible.
On the finish of 2021, UPC reported complete property of greater than $2.6 billion; liabilities of $2.7 billion; and reserves of $1.7 billion. It additionally noticed a internet lack of nearly $60 million in 2021; $95 million in 2020; and $29 million the yr earlier than, an organization monetary assertion reveals.
UPC’s mixed ratio topped 120 final yr, down barely from the earlier yr, however significantly larger than in 2017.
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