United Insurance Holdings Corp. (UPC Insurance) has renewed both its quota share reinsurance agreement and its aggregate excess of loss reinsurance arrangement for 2018.
The new, 2018 quota share reinsurance agreement is effective December 31st, 2017, and protects UPC through its wholly owned insurance subsidiary, United Property and Casualty Insurance Company (UPCIC).
A new, 20% quota share agreement with a 12 month term, replaces the company’s 15% quota share agreement that expired on November 30th, 2017, and its 5% quota share agreement that was due to be renewed on December 1st, 2017, and was placed with a number of private reinsurers.
“The quota share agreement provides coverage for all catastrophe perils and attritional losses. For all catastrophe perils, the quota share agreement provides ground-up protection effectively reducing UPC Insurance’s retention for catastrophe losses,” explains UPC Insurance.
The firm’s 2018 aggregate excess of loss reinsurance agreement, which protects UPC Insurance through its wholly owned insurance subsidiaries American Coastal Insurance Company, United Property and Casualty Insurance Company, Family Security Insurance Company, and Interboro Insurance Company, is effective January 1st, 2018 and was placed with a single private reinsurer.
Under the agreement, UPC Insurance will retain, in the aggregate, 100% of the losses up to 4.75% of the covered companies’ gross earned premiums, with the reinsurer then being responsible for all losses above 4.75% of the covered companies’ gross earned premiums, in the aggregate, not to surpass $20 million over the treaty’s term.
The 2018 aggregate excess of loss reinsurance agreement provides coverage for all catastrophe perils apart from hurricanes, tropical storms, tropical depressions, and earthquakes.
