United (UPC) reports $40m of Q2 catastrophe losses, after reinsurance

United Insurance Holdings (UPC Insurance), the Florida headquartered insurer, has revealed a bigger than perhaps anticipated second-quarter 2021 catastrophe loss burden, reflecting the costs of storms during the period.

United (UPC Insurance) said that its Q2 2021 catastrophe losses are provisionally estimated at $40 million before tax ($31m after tax).

The insurer said that this is “net of expected reinsurance recoveries” suggesting that the company has, at the least, recovered some of the costs via its quota share reinsurance, but possibly via other reinsurance arrangements as well.

The second-quarter of the year is typically a relatively light one, in terms of catastrophe loss impacts.

But in 2021, the regions where United (UPC Insurance) is most exposed have come in for some severe storm activity, as well as impacts from two early tropical storms.

The two tropical storms will have been Claudette and Danny, as the only two so far this season to impact the United States.

In addition, United (UPC Insurance) said that fourteen new PCS designated catastrophe events were counted during the second-quarter and added to the catastrophe loss burden for the insurer.

Among these will have been some of the severe thunderstorm and convective storm activity that struck the United States during Q2.

Overall, while the impacts of these events are not particularly significant, the Q2 catastrophe burden for United (UPC Insurance) may have been a little higher than anticipated.

As a result, there could be some read-across from the carrier’s disclosure of Q2 catastrophe losses to other insurance and reinsurance firms as they report their quarterly results later this month and into early August.