United Insurance Holdings Corp. (UPC Insurance), the Florida-headquartered property and casualty (P&C) insurer, has announced a proposed reorganisation plan to consolidate its four Florida domiciled insurance carriers into three, creating a more efficient operating structure going forward.
The company is currently seeking regulatory approval to merge Journey Insurance Company into American Coastal Insurance Company with American Coastal being the surviving entity.
UPC anticipates Journey’s financial strength rating will ultimately sunset and its capital will be redistributed between American Coastal Insurance Company, Family Security Insurance Company, and United Property & Casualty Insurance Company.
This announcement comes after the company officially ceased writing new homeowners business in the state, as of January 1st, 2022.
In a memo sent to agents, seen by Reinsurance News, the company cited high catastrophe losses from the 2020 storm season, rising reinsurance rates, and growing litigation costs as reasons for suspending new business.
Dan Peed, Chairman & CEO commented: “Our plan will enable us to achieve more balance between commercial and personal lines by reallocating existing capital across our group and allowing American Coastal Insurance Company to focus exclusively on continued profitable growth in commercial lines, while Family Security Insurance Company and United Property & Casualty Insurance Company focus exclusively on restoring underwriting profitability in our personal lines business.”
