United Insurance Holdings Corp. (UPC Insurance) has renewed its catastrophe reinsurance programs at June 1, including an increased multi-event cascading limit of $3.257 billion.
The limit was increased by $101 million, or 3.2% on the $3.156 billion of multi-event cascading limit that UPC purchased for its 2019/20 core catastrophe reinsurance program.
It covers UPC subsidiaries American Coastal Insurance Company, Family Security Insurance Company, Inc. and United Property & Casualty Insurance Company.
For the Florida Hurricane Catastrophe Fund (FHCF) Reimbursement Contracts, UPC elected 90% coverage for American Coastal Insurance Company, Family Security Insurance Company, Inc. and United Property & Casualty Insurance Company.
The total mandatory FHCF layer will provide approximately $1.7 billion of total Florida-only coverage with varying retentions and limits among the three separate FHCF contracts.
UPC also purchased stand-alone catastrophe reinsurance for Interboro Insurance Company that includes $57 million of limit per occurrence and $79 million in the aggregate.
And for Blueline Cayman Holdings, a stand-alone program will provide $111 millino of limit per occurrence and $222 million in the aggregate.
Additionally, UPS increased the cascading catastrophe reinsurance limit for its subsidiary, Journey Insurance Company, from $26.1 million to $31.9 million.
The group’s reinsurance subsidiary, UPC Re, has increased its pre-tax retention by 13.8% to $96.3 million, including a $12.5 million co-participation on the lowest layer of the core catastrophe reinsurance program.
UPC Re will receive $7.3 million of reinsurance premium for the $12.5 million of assumed limit, and the modelled expected return to the business on the $12.5 million assumption is greater than 40%.
Total multi-year limit purchased on the 2020/21 catastrophe excess of loss reinsurance programs is $405 million, representing an increase of $55 million or 15.7% on the $350 million secured in the previous year.
The total cost of UPC catastrophe excess of loss reinsurance programs is $404.0 million, an increase of $26.7 million or 7.1%, from the 2019/20 catastrophe excess of loss reinsurance program cost.