United Insurance Holdings, parent of United Property & Casualty Insurance, said it has completed most of its major reorganization plan, consolidating its four Florida-based carriers into two.
The news was accompanied by second-quarter catastrophe losses of $17 million after taxes, net of expected reinsurance recoveries, United said in a news release. The publicly traded company will reveal more about its Q2 financial results at an earnings call Aug. 8. For Q1, United reported a $33 million loss, following a $59.9 million loss for 2021 and a $95 million loss in 2020.
The financial troubles began to surface in late in 2021, when United Property & Casualty, based in St. Petersburg, Florida, announced it would suspend new HO business in Florida. That led to speculation that it was teetering toward insolvency.
UPC was once one of the largest property insurers in Florida, with more than 180,000 policies in force. This month, it was ranked 22nd largest in the state, with about 1.4% of the market and $172 million in direct written premium, according to the AM Best financial rating firm.
Also this month, UPC announced that it was exploring a range of other options, including the sale of the company or merger with another insurer.
The company said that the reorganization of its subsidiaries turned out to be more extensive than expected. Effective May 31, Family Security Insurance was merged into United Property & Casualty. As of June 1, Journey Insurance was merged into American Coastal Insurance. As part of the merger, $30 million of Journey’s capital was redistributed to United.
United, founded in 1999, continues to write some policies in Florida, Louisiana, New York, and Texas. It also writes in Georgia, South Carolina and North Carolina, where renewal rights have been sold and all premiums and losses are ceded, the company said.
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