United Insurance Holdings Corp. (UPC Insurance) and Florida-based insurtech HCI Group, Inc. have entered into a new quota share reinsurance agreement, following the completion of a renewal rights deal earlier this year.
Back in January, UPC Insurance transferred all of its personal lines insurance business in the states of Connecticut, New Jersey, Massachusetts, and Rhode Island to HCI Group.
And now, as part of the transition of policies from United, HCI has agreed to provide 100% quota share reinsurance on all in-force, new and renewal policies in these states.
The coverage will run from June 1, 2021 through May 31, 2022, and, in exchange, HCI will pay United a ceding commission of 24% of premium.
The agreement represents approximately $120 million of annual premiums, which will be divided equally between HCI’s insurance subsidiaries, Homeowners Choice Property & Casualty Insurance Company, Inc. and TypTap Insurance Company.
