United Insurance Holdings (UPC Insurance) has revealed that its total gross losses from Hurricane Ian has increased from its preliminary estimate of $1 billion from Q322, to approximately $1.54 billion as of the end of the full-year.
The firm’s Hurricane Ian gross loss estimate relates to its personal lines business underwritten by United Property & Casualty Insurance Company, (UPC) which increased from $660 million to $864 million, resulting in a net increase in loss expense to UPC of $145 million, net of reinsurance.
United noted that its current loss estimate of $864 million fully exhausts all reinsurance available to UPC for this specific event.
In addition, the firm also estimates that UPC will incur approximately $36 million of net loss and loss adjustment expense related to current accident year non-hurricane catastrophe losses, and $61 million of net loss and loss adjustment expense during Q422 from adverse prior year reserve development on both catastrophe and non-catastrophe claims.
At the same time, United also noted that it expects to incur approximately $197 million of net loss and loss adjustment expense related to current accident year catastrophe events for the fourth quarter of 2022, heavily driven from the events of Hurricane Ian.
