Reinsurance News

United (UPC Insurance) and HCI complete renewal rights agreement

25th January 2021 - Author: Luke Gallin

United Insurance Holdings Corp. (UPC Insurance) has completed its previously announced renewal rights agreement with Florida-based insurtech, HCI Group, Inc., effective January 18th, 2021.

handshakeUnder the terms of the agreement, UPC Insurance will transfer all of its personal lines insurance business in the states of Connecticut, New Jersey, Massachusetts, and Rhode Island to HCI Group.

HCI Group Chairman and Chief Executive Officer (CEO), Paresh Patel, commented: “We’re excited to enter into this agreement with United.

“When fully consummated, these transactions will accelerate our strategic plan to expand nationally. We will acquire not only a seasoned book of business, but also an established agent network and important underlying data.”

According to UPC Insurance, the terms of the transaction are similar to those disclosed previously.

When the arrangement was announced back in December, it was reported that HCI will provide 69.5% quota share reinsurance on all of United’s in-force, new and renewal policies in the four states.

With HCI paying UPC Insurance an allowance of $4.4 million towards already purchased catastrophe reinsurance and a provisional ceding commission of 25% of premium.

Brad Martz, President and Chief Financial Officer (CFO) of UPC Insurance, said: “Completion of this transaction supports our efforts to reduce operating leverage, improve risk-based capital adequacy and focus on growing our specialty commercial property business.”

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
Demotech accuses rating agencies of “short-sighted” reinsurance view

Financial analysis firm Demotech has encouraged property re/insurers to re-think their choice of rating agency, on the basis that many...