Reinsurance News

UPC restructures reinsurance program at renewal

28th May 2021 - Author: Katie Baker

Florida head-quartred insurer United Insurance Holdings (UPC Insurance) has renewed its core catastrophe reinsurance program for 2021/22.

United Insurance Holdings LogoFor this year, the insurer’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 changes to highlight for the core catastrophe reinsurance tower is reduced retention for the coming hurricane season.

UPC reported that its per occurrence retention is now only $15 million for both the first and second events, which decreased from $46.25 million for the first event and $17.5 million for the second event in 2020, a 53% reduction in aggregate.


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.

The core catastrophe reinsurance program and quota share cover United Property & Casualty Insurance Company (UPC), Family Security Insurance Company, Inc. (FSIC) and American Coastal Insurance Company (ACIC).

In addition, UPC has said it will consider a possible sale of its Interboro Insurance Company business in order to create capacity for expanding commercial specialty underwriting and general corporate purposes.

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