United Insurance Holdings Corp (UPC Insurance) has reported a net loss of $70.9 million for the third quarter of 2022, compared to a net loss of $14.3 million in 2021.
UPC Insurance specified that the loss was driven by decreased gross written premiums, an unfavorable prior year loss development during the quarter, as well as the impacts of Hurricane Ian.
This now brings the company’s net loss year-to-date total to $173 million.
At the same time, UPC Insurance’s gross written premium for the quarter decreased by $67.3 million, to $255.2 million from $322.5 million from the third quarter of 2021.
UPC Insurance’s gross written premium year-to-date total currently sits at $894.8 million, compared to $1.060 billion from the same period last year.
Net premiums earned decreased 24.2% to $116.18 million compared to $153.27 million from the same period last year.
Meanwhile, operating and underwriting expenses decreased by $5.8 million, to $9.6 million for the quarter, from $15.4 million from the third quarter of 2021.
Moreover, UPC Insurance reported a 94.8% underlying combined ratio for the quarter, compared to 91.5% from the prior year quarter.
Dan Peed, CEO of UPC Insurance, commented: “On September 28, 2022, Ian made landfall on the west coast of Florida as a category four hurricane. Our thoughts and prayers go out to all of the people impacted by Ian. I also want to recognize and thank our team for all of the hard work being done to help the victims restore their lives and property.
“During the third quarter we made the difficult decision to withdraw United Property & Casualty Insurance Company from the personal lines business in the states of Florida, Louisiana and Texas. While Interboro Insurance Company will continue to write personal lines business in the state of New York, the withdrawal allows us to focus our capacity on our commercial residential business written by American Coastal Insurance Company. Our withdrawal plan will generally begin with non-renewals on January 1, 2023.”
