Florida property insurer American Coastal, formerly known as United Insurance Holdings, successfully renewed its all other perils catastrophe excess of loss agreement at the 1.1 2024 renewal, providing the firm with up to $100 million in limit excess of $10 million per occurrence to limit its losses from catastrophe events other than named windstorms and earthquakes.
The insurer is the remaining carrier in the United Insurance Holdings group, and its wholly owned reinsurance subsidiary, UPC Re, participated in the renewal, which the firm says brings its consolidated retention to $12.25 million per occurrence.
Interestingly, American Coastal has reported that the cost of the agreement for 2024, excluding potential reinstatement premium, is roughly $9.9 million, a risk adjusted decrease of 9.24% year-on-year.
The Florida focused carrier adds that exclusive of its retention the all other perils cat XoL agreement provides coverage of approximately $88 million for a first event and $84 million for a second event. This amounts to $172 million in coverage in the aggregate, which the company says is up $71 million, or 70.3% year-on-year.
The reinsurance coverage obtained by American Coastal at the January 1st, 2024, renewal serves to compliment its core catastrophe cover for named storms, which is up for renewal at the mid-year.
Issues in the Florida property market have been well documented, but the outcome for American Coastal suggests that sellers of protection have greater appetite for Florida business than in the recent past, and notably for non-peak perils which have contributed to the elevated loss experience in the state.
Industry commentary has suggested that reforms in the state have given reinsurers greater confidence in the region, so it will be interesting to see how the dynamics play out at the Florida-focused reinsurance renewal later in the year.
