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United Insurance Holdings Corp. Previews Q3-2017 Catastrophe Losses

Company Release - 9/25/2017 4:05 PM ET

ST. PETERSBURG, Fla.--(BUSINESS WIRE)-- United Insurance Holdings Corp. (NASDAQ: UIHC) (UPC Insurance or the Company), a property and casualty insurance holding company, today announced estimated catastrophe losses incurred during the third quarter ending September 30, 2017 of approximately $83 million before income taxes (approximately $54 million after tax) net of expected reinsurance recoveries. The Company’s third quarter catastrophe losses included claims from Hurricane Harvey, which made landfall as a category 4 storm in Texas, and Hurricane Irma which was also a category 4 storm making landfall in Florida.

UPC Insurance estimates gross losses (including losses at American Coastal Insurance Company) from Harvey and Irma will be between $300-$600 million before reinsurance recoveries and income taxes. The Company’s catastrophe excess of loss reinsurance limits retained losses to $81 million in total for these two events, which is further reduced to $73 million by its quota share reinsurance. UPC’s wholly-owned subsidiary Blueline Re, which has a separate reinsurance program for its commercial excess and surplus lines property business, is also expected to reach its $5 million retention for each hurricane, bringing the maximum combined group pre-tax retained losses from these events to $83 million. The Company estimates it will have at least $2.2 billion of reinsurance remaining for any potential future named windstorm and earthquake catastrophe losses occurring prior to June 1, 2018. Maximum pre-tax retained losses on any future windstorm or earthquake during this period are $25 million for UPC and $5 million for Blueline Re.

“The strength of our capital structure and reinsurance program was proven by the cat events that have occurred in 2017,” said John Forney, President and CEO of UPC Insurance. “We have had two Cat 4 hurricanes make landfall in our two largest states and experienced a full retention on our non-hurricane catastrophe reinsurance program. Yet, we have at least $2.2 billion of reinsurance remaining for future cat events and, depending on how things go in Q4, a chance to be profitable for the year. We’re focused on serving our policyholders needs now, and building on this financial strength going forward.”

About UPC Insurance

Founded in 1999, UPC Insurance is an insurance holding company that sources, writes and services residential property and casualty insurance policies using a network of independent agents and a group of wholly owned insurance subsidiaries. The Company currently writes policies in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina and Texas, and is licensed to write in Alabama, Delaware, Maryland, Mississippi, New Hampshire, and Virginia. UPC Insurance also has a commercial residential product in Florida. The Company’s commercial presence was further expanded by the merger with Florida’s largest commercial property writer, American Coastal Insurance Company. From its headquarters in St. Petersburg, UPC Insurance's team of dedicated professionals manages a completely integrated insurance company, including sales, underwriting, customer service and claims. UPC Insurance is a company committed to financial stability and solvency.

Forward-Looking Information

Some of the statements in this release, including those about estimated catastrophe losses, are “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 (PSLRA). These forward-looking statements are made pursuant to the safe harbor provisions of the PSLRA. Actual results may differ materially from those suggested by the forward-looking statements as a result of risks and uncertainties, which include, among others, those discussed or identified from time to time in our public filings with the Securities and Exchange Commission. UPC Insurance assumes no obligation to update any forward-looking information set forth in this release, which speaks as of its date.

United Insurance Holdings Corp.
Jessica Strathman, 727-895-7737
SEC Reporting Manager
The Equity Group
Adam Prior, 212-836-9606
Senior Vice-President

Source: United Insurance Holdings Corp.