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United (UPC) expects $37m of Q3 cat losses after reinsurance support


United Insurance Holdings (UPC Insurance), the Florida headquartered but regionally expansive insurer, has added to its third-quarter catastrophe load and pre-announced an expectation of $37 million of pre-tax catastrophe losses after the reinsurance recoveries it expects to make for hurricane Ida.

united-upc-insurance-logoPreviously, United (UPC) had announced $27 million of pre-tax losses, net of reinsurance recoveries, with the majority coming from hurricane Ida.

In fact, Ida was a full retention event for United (UPC) under its reinsurance arrangements, as the insurer experienced a full hit to its core catastrophe reinsurance program retention of $15 million, as well as a catastrophe retention of $3 million for the firms Interboro Insurance Company.

At the time United (UPC) also warned that its aggregate reinsurance was close to coming into play, with exposure to future catastrophe events this year expected to be limited to approximately $9 million.

Now, United (UPC) has pre-announced $37 million of pre-tax catastrophe losses for the full third-quarter of 2021, $29 million after tax.

These figures are net of the expected reinsurance recoveries the insurer anticipates receiving.

The total is made up of the $27 million previously announced for up to the end of August, most of which is from hurricane Ida, as well as $10 million for claims from new catastrophe events including hurricane Nicholas and an amount for a re-estimation of other PCS designated catastrophe events incurred during 2021.

So it’s not clear whether the aggregate reinsurance cover has come into play yet for United (UPC), but it must be close to.

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