Property and casualty insurance holding company United Insurance Holdings has reported a $12.7 million net loss for the quarter, down from a net income of $9.5 million in the opening three months of 2019.
This decrease was primarily due to unrealised losses on equity securities compared to unrealised gains in the first quarter of 2019.
The unrealised losses on equity securities were driven by the market’s reaction to the COVID-19 pandemic. These losses were offset by improvements in the company’s underwriting results.
United’s total gross written premium increased by $16.6 million, or 5.2%, to $335.2 million for the first quarter of 2020, from $318.6 million for the first quarter of 2019.
This primarily reflects organic policy growth in new and renewal business generated in the Gulf and Southeast regions, as well as the impact of rate increases in Florida and the Northeast regions.
Operating and underwriting expenses decreased by $0.5 million, or 5.0%, to $9.7 million for the first quarter of 2020, from $10.2 million for the first quarter of 2019, primarily due to a decrease in printing and postage expenses which was partially offset by increased expenditures on technology software and services.
Meanwhile, the company’s combined ratio fell from 103.7% in the first quarter of 2019 to 99%.
“It’s nice to get off to a good start in 2020,” said John Forney, President & CEO of UPC Insurance.
“Our key metrics were significantly improved year-over-year, and the underlying trends across all our business lines are strong. We look forward to the rest of the year.”
“The scope, severity and longevity of any potential business shutdowns or disruptions as a result of the COVID-19 outbreak is highly uncertain and cannot be predicted at this time, as new information may continue to emerge concerning the actions governments may take to contain or mitigate the spread of the virus or address its impact on individuals, businesses and the economy,” the company noted in a statement accompanying their first quarter results.
“The Company did not incur material claims or significant disruptions to the business for the three months ended March 31, 2020.
“At this time, it is not possible to reasonably estimate the extent of the impact of the economic uncertainties on the financial results and conditions of the Company in future periods, but the Company will continue to respond to the COVID-19 pandemic and take reasonable measure to make sure customers continue to be served without interruption.”
