United Insurance Holdings has said that gross written premiums in H1 2022 were 15.5% lower than they were in the same quarter of the previous year.
Meanwhile, the firm said in a statement that the first half of 2022 had seen gross written premiums at a level 13.3% lower than they had been in the first half of 2021. Total revenues, it said, had fallen 25.5% between Q2 2021 and Q2 2022, and 31.2% between H1 2021 and H1 2022.
Dan Peed, CEO of the company, said: “During the second quarter, we reached a milestone in our plan to transition towards a specialty commercial lines writer. For the first time, commercial lines direct written premium of $181.1m exceeded personal lines direct written premium of $179.1m.”
He added: “Results support continuation of this plan, with a commercial lines combined ratio of 61.5% and an $18.8m pre-tax profit. On a consolidated basis, second quarter net loss attributable to the Company was $69m, which included recognition of a valuation allowance against our deferred tax asset of $43.7m.”
The firm recently said it was estimating that it incurred catastrophe losses of $21m during Q2 2022.
That figure was before income taxes and net of expected reinsurance recoveries, it explained at the time, with the after tax figure estimated at $17m.
The company also estimated adverse development on prior year losses incurred during Q2 of approximately $8m before tax, or $6m after tax, again net of reinsurance recoveries.
Additionally, UPC Insurance confirmed the completion of a reorganisation plan to consolidate its four Florida-domiciled insurance carriers into two.
Its plan, which it said will create a more-efficient operating structure going forward, merges Family Security Insurance Company, Inc. into United Property & Casualty Insurance Company (United) with United being the surviving entity.
Other news last month indicated that the firm was undertaking a review of its strategic and capital raising alternatives, which could lead to a sale or merger. According to UPC Insurance, the Board initiated the review to explore a wide range of options for the carrier.
This included, amongst other things, a potential sale or merger, subsidiary divestiture, and the formation of a new Florida-based reciprocal exchange, as well as the sale of equity, surplus notes, and other financing or strategic transactions.
