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United Insurance Holdings Corp. Announces Personal Lines Withdrawal Plans in Florida, Texas, Louisiana and New York, and Pursuit of Strategic Alternatives
United Insurance Holdings Corp. Announces Personal Lines Withdrawal Plans in Florida, Texas, Louisiana and New York, and Pursuit of Strategic Alternatives
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Rhea-AI Summary
United Insurance Holdings Corp. (Nasdaq: UIHC) announced plans of withdrawal for its personal lines subsidiary, United Property & Casualty Insurance Company, in Florida, Louisiana, Texas, and New York, involving non-renewal of personal lines policies. Regulatory approval has been secured in Louisiana, but is still pending in Florida and Texas. This move aims to ensure an orderly run-off due to uncertainties around reinsurance availability. CEO Dan Peed emphasized the strength of their commercial business as a stable platform for future growth.
Positive
United P&C's commercial business continues to perform well, providing a stable growth platform.
Negative
Plans to withdraw from personal lines insurance could lead to reduced market presence.
Demotech intends to withdraw United P&C’s Financial Stability Rating, signaling potential operational risks.
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--
United Insurance Holdings Corp. (Nasdaq: UIHC) (UPC Insurance or the Company), a property and casualty insurance holding company, announced today that its personal lines subsidiary, United Property & Casualty Insurance Company (United P&C) has filed plans of withdrawal in Florida, Louisiana and Texas and intends to file a plan of withdrawal in New York that entail non-renewing personal lines policies in these states. Regulatory approval has been received in Louisiana but is still pending in Florida and Texas. These plans would effectively place United P&C into an orderly run-off so long as United P&C remains in compliance with the rules and regulations of each state. Second, United P&C was notified by Demotech of Demotech’s intent to withdraw United P&C’s Financial Stability Rating.
“Due to significant uncertainty around the future availability of reinsurance for our personal lines business, I believe placing United P&C into an orderly run-off is prudent and necessary to protect the Company and its policyholders. The Company is actively pursuing opportunities to leverage our people, technology, and other capabilities. Our commercial business continues to perform well and provides the Company a stable platform to build new engines of growth and profitability,” said Dan Peed, Chairman & CEO.
About UPC Insurance Founded in 1999, UPC Insurance is an insurance holding company that sources, writes and services personal and commercial residential property and casualty insurance policies using a group of wholly owned insurance subsidiaries through a variety of distribution channels. The Company currently writes policies in Florida, Louisiana, New York, and Texas. The Company also writes policies in Georgia, South Carolina, and North Carolina, where renewal rights have been sold and all premiums and losses are ceded. 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.
INVESTOR RELATIONS:
The Equity Group
Karin Daly Vice President
(212) 836-9623 / kdaly@equityny.com
Source: United Insurance Holdings Corp.
FAQ
What does United Insurance Holdings Corp. (UIHC) plan regarding personal lines insurance in 2023?
UIHC plans to withdraw its personal lines subsidiary, United Property & Casualty Insurance Company, from Florida, Louisiana, Texas, and New York.
What impact does UIHC's withdrawal from personal lines insurance have on its business?
The withdrawal could reduce UIHC's market presence and lead to potential operational risks, particularly indicated by Demotech's intent to withdraw the Financial Stability Rating.
What are the current regulatory approvals for UIHC's withdrawal plans?
UIHC has received regulatory approval for the withdrawal in Louisiana; however, it is still pending in Florida and Texas.
Who is the CEO of United Insurance Holdings Corp. and what did he say about the company's plans?
Dan Peed, the CEO, emphasized that placing United P&C into an orderly run-off is prudent given the uncertainty in reinsurance availability.
