United Insurance Holdings (UPC Insurance) announced during its fourth-quarter 2017 earnings call that it changed its panel of reinsurers for its quota share, to reinsurance giant Munich Re, Transatlantic Reinsurance Company (TransRe), and General Reinsurance Corporation (Gen Re).
The property and casualty insurer announced in early 2018 that it had consolidated its two quota share arrangements into a new, 20% quota share at the key January 1st, 2018 reinsurance renewals.
Now, speaking during the firm’s Q4 2017 earnings call, UPC Insurance Chief Financial Officer (CFO), Brad Martz, revealed that the company did renew its quota share but with a different panel of reinsurers, praising its previous panel and adding that the change happened for various reasons.
“And so, we’ve got Munich Re, TransRe and Gen Re now as our quota share partners. A pretty blue-chip group of reinsurers and we are pleased with the way that turned out,” explained Martz.
At its renewal, the company replaced its 15% and 5% quota share agreements with a new 20% arrangement, covering the firm for a 12 month period and which sees the insurer cede 20% of all subject business to participating reinsurance companies.
UPC Insurance said it was “really happy” with the way that the January 1st renewals went, and, the company’s Chief Executive Officer (CEO), John Forney, revealed that it’s well on its way to filling out its June 1st, 2018 renewal.
“We have already renewed a large part of our loss affected layers for June 1 at very attractive pricing, and we are well along in filling out all our June 1st reinsurance needs,” said Forney.
So, it appears UPC Insurance has made some solid progress on renewing its reinsurance protection ahead of June and July, taking advantage of attractive pricing and working with the likes of Munich Re, TransRe and Gen Re.
United’s previous quota share reinsurance arrangement had been with ILS fund manager Nephila Capital and Greenlight Re.
It remains unclear how much of its latest programme has been placed with the insurance-linked securities (ILS) market, but it’s expected that the capital markets would have taken a sizeable share, given the firm’s history and experience leveraging alternative, or third-party reinsurance capital.