United Insurance Holdings (UPC Insurance) has reported a $294.9 million net loss for the fourth quarter of 2022, compared to a net loss of $2.3 million from the same period last year.
UPC stated that were a number of drivers that contributed to the net loss, including unfavourable development related to hurricane Ian which exhausted the company’s personal lines reinsurance coverage for the event.
Elsewhere, UPC’s gross written premiums (GWP) for the quarter decreased by 14.7% to $229.2 million, from $268.9 million from Q421.
GWP for the firms commercial property segment came in at $122.3 million, representing a 30.4% increase from $93.8 million from the prior year quarter. At the same time, GWP for the personal property segment saw a 38.9% decrease from $175 million from Q421 to $106.8 million in Q422.
For the full-year UPC reported a net loss of $468 million, compared to a net loss of $57.9 million from 2021.
Meanwhile, GWP decreased by $205.4 million to $1.1 billion for the full year, compared to $1.3 billion from the firms 2021 full-year results.
Commenting on the company’s results, Dan Peed, CEO, said: “We are deeply disappointed with our fourth quarter results driven by Hurricane Ian loss development that ultimately exhausted the reinsurance available to our subsidiary, United Property & Casualty Insurance Company (UPC).
“Our immediate focus has shifted to providing the Florida Department of Financial Services the Company’s full cooperation to complete the separation and run-off of UPC. We have a lot of work to do in this regard, but our team remains optimistic that our continuing operations led by our commercial lines business underwritten by American Coastal Insurance Company will return us to profitability in 2023.”
