United Insurance Holdings’ (UPC Insurance) unit, American Coastal Insurance Company (ACIC), has entered into an agreement with the Florida Department of Financial Services’ Division of Rehabilitation and Liquidation (DFS), regarding the Reinsurance Allocation with the company’s former subsidiary, United Property & Casualty Insurance Company (UPC).
The Allocation Agreement was put in place on June 1, 2022, and received approval from the Florida Office of Insurance Regulation on December 5, 2022. It outlines how shared reinsurance agreement recoveries are divided between ACIC and UPC.
The agreement ratifies and affirms the Allocation Agreement, with future reinsurance recoveries for Hurricane Ian losses to be paid directly to ACIC.
Any over-collected payments will be remitted to UPC, the company said.
Commenting on the company’s fourth quarter results of 2022, Dan Peed, CEO, had 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, UPC.”
According to Peed, the company’s top priority was to cooperate fully with the Florida Department of Financial Services in completing the separation and run-off of UPC. “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,” Peed had said.
