Property and casualty insurance holding company, United Insurance Holdings Corp. (UPC Insurance), has expanded its current quota share reinsurance programme for United Property & Casualty Insurance Company (UPC) and Family Security Insurance Company (FSIC), effective December 31st, 2020.
For both UPC and FSIC, the insurer has expanded its current quota share reinsurance arrangement from the current cession rate of 22.5% to 30.5%. Additionally, a quota share cession of 23% was secured through May 31st, 2022, with the remaining 7.5% pending renewal at June 1st, 2021.
At the same time, UPC Insurance has announced that it has also secured quota share reinsurance protection for American Coastal Insurance Company at a cession rate of 23%, effective December 31st, 2020, and expiring May 31st, 2022.
Brad Martz, President and Chief Financial Officer (CFO) of UPC Insurance, commented: “I’m grateful for the support we continue to receive from our reinsurance partners. The additional quota share capacity supports our efforts to reduce operating leverage and improve capital adequacy for 2020 and beyond.”
The insurance holding company notes that apart from the increased participation rates, the general terms and conditions of its quota share reinsurance program are mostly unchanged.
UPC Insurance states that the expanded coverage provides it with additional ground up protection from all perils in all states where the covered firms operate.
