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.
Under 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.”