United Insurance Holdings Corp. (UPC Insurance), a property and casualty (P&C) insurance holding company, has received regulatory approval for the licensure of its new P&C insurance subsidiary, Journey Insurance Company, which it formed in collaboration with Tokio Marine Kiln.
Journey, which has also received an ‘A-‘ Financial Strength Rating and ‘a-‘ Issuer Credit Rating from A.M. Best, will initially focus on offering homeowners’ and commercial residential property insurance in Florida, Texas and South Carolina.
The new subsidiary is 66.7% owned by UIHC and 33.3% owned by R.J. Kiln & Co. (No. 3) Limited, a subsidiary of Tokio Marine Kiln Group Limited (TMK).
“Journey marks the fifth insurance company in the UPC family, and the first one to be rated by A.M. Best,” said John Forney, President & Chief Executive Officer (CEO) of UPC Insurance. “We’re thrilled to be able to launch this new partnership with Tokio Marine and we appreciate their support.”
“Journey gives us an exciting new way to grow our business in key markets by serving customers and distribution channels we previously could not reach,” Forney added. “We can’t wait to get started.”
TigerRisk Capital Markets acted as the Exclusive Placement Agent in connection with the formation of Journey, assisting the preparation of its business plan, reinsurance program, and the obtention of its ‘A-“ A.M. Best rating, as well as marketing the transaction to potential investors.
A.M. Best said that its rating reflected “Journey’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).”
It also considered the “substantial support and proven track record of United,” as well as Journey’s “comprehensive reinsurance program, which is designed to provide horizontal and vertical protection against severe weather-related events.”