UPC Insurance has registered a $33.9 million fourth quarter net loss, up from the $8.2 million achieved in the prior year quarter.
The company’s total gross written premium increased by $21.4 million, or 7.3%, to $316.2 million from $294.8 million for the fourth quarter of 2019.
This increase was driven by rate increases in multiple states across all regions and organic policy growth in new and renewal business generated in the Gulf and Southeast regions.
Loss and LAE increased by $54.5 million, or 41.7%, to $185.1 million, from $130.6 million for the fourth quarter of 2019.
UPC does point out that, during the fourth quarter of 2020, there was a higher frequency of catastrophe events when compared to prior years.
Excluding the impact of catastrophe losses from the current year and reserve development, the company’s gross underlying loss and LAE ratio for the fourth quarter of 2020 would have been 21.5%, a decrease of 10.6 points from 32.1% during the fourth quarter of 2019.
Operating and underwriting expenses increased by $4.0 million, or 37.4%, to $14.7 million for the fourth quarter of 2020, from $10.7 million for the fourth quarter of 2019, primarily due to increased investments in technology.
General and administrative expenses increased by $5.9 million, or 47.2%, to $18.4 million for the fourth quarter of 2020, from $12.5 million for the fourth quarter of 2019, primarily due to increased salary costs related to an increase in employee headcount as well as an increase in non-recurring consulting related expenses.