Florida headquartered insurer, United Insurance Holdings (UPC Insurance), has announced estimated third-quarter 2021 catastrophe losses of $27 million pre-tax ($21mn after-tax), net of expected reinsurance recoveries.
Included in the firm’s estimated current year cat losses incurred in the quarter are losses from tropical storm Elsa, Hurricane Ida, and some other PCS designated cats that occurred in the period.
The main impact for United is from Hurricane Ida, which the insurers says hit its reinsurance protection as the estimate includes the firm’s core catastrophe program retention of $15 million, as well as Interboro Insurance Company’s catastrophe retention of $3 million.
Given the strength of Hurricane Ida, its landfall and track, it’s no surprise that this event has eroded the retention of an often coastal home focused insurer like United.
Following these events, United has also warned that it’s close to triggering its aggregate reinsurance protection, noting that its exposure from potential future events this year in its core catastrophe program is expected to be limited to approximately $9 million.
Brad Martz, President & Chief Financial Officer of UPC Insurance, commented: “Our thoughts are with those who have suffered losses from these events, but particularly our policyholders in Louisiana. UPC Insurance is working around the clock to ensure we Keep Our Promise and adjust these claims as quickly and professionally as possible.
“UPC’s catastrophe reinsurance program was designed to protect our earnings and capital from another potentially active hurricane season, so I’m very pleased that our downside risk from subsequent events this year is limited.”