UPC Insurance
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The firm will exhaust its personal lines reinsurance coverage on the storm, pushing its personal lines carrier into insolvency, with commercial claims doubling. -
The transaction provides relief for policyholders and agents, but especially for those policyholders whose policies expire past UPC’s June 1 deadline.
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The carrier had earlier signalled that uncertainty over reinsurance would affect its ability to write new business.
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In late August, UPC signaled that it will pull out of personal lines in Florida, Texas, Louisiana and New York.
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UPC’s closing price hit the bottom of $0.99 per share on Sept 6 and has remained below the $1.00-threshold ever since.
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The insurer has received roughly 19,000 claims to date and estimates it will receive 27,000 to 30,000 claims.
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Loss creep from Hurricane Ida has led to the loss and an increase in loss reserves.
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The carrier said its commercial business gave the company a platform to build on.
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UPC policyholders could be force-placed by their mortgage lender.
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On August 1, Demotech downgraded UPC's financial stability rating by two notches to M from A.
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Demotech earlier warned that more than 15 possible carrier downgrades could come in July.
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The insurer also completed the reorganization plan to consolidate its four Florida domiciled insurance carriers into two.
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