Property and casualty holding company UPC Insurance incurred around $40 million in pre-tax natural catastrophe losses during the second quarter of 2021, approximately $31 million after tax.
The company’s estimated catastrophe losses includes claims from two new tropical storms and fourteen new PCS catastrophe events that occurred during the second quarter of 2021.
This year UPC’s core catastrophe program includes $2.85 billion of first event reinsurance limit on a fully cascading basis, except for the Florida Hurricane Catastrophe Fund layer.
In addition to the Core CAT program, the 15% quota share treaty was renewed effective June 1, 2021 which along with the existing 8% quota share treaty effective December 31, 2020, brings the total cession to 23% for the duration of the 2021 hurricane season.
The insurer also announced that its renewed Core CAT program contains enhanced aggregate coverage features, designed to further limit the accumulation of hurricane and earthquake retained losses.
If the 2020 hurricane season should repeat itself, UPC said that its renewed reinsurance tower will limit its net retained hurricane losses to $31 million for its core portfolio of residential and commercial property insurance.