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United Insurance Holdings Corp. Announces Reorganization Plan
Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Very Positive)
Tags
Rhea-AI Summary
United Insurance Holdings Corp. (UIHC) has announced a proposed reorganization plan to consolidate its four Florida-domiciled insurance companies into three, seeking regulatory approval to merge Journey Insurance Company into American Coastal Insurance Company. This merger aims to enhance operational efficiency and better allocate capital, focusing American Coastal on profitable commercial growth while Family Security and United Property & Casualty restore profitability in personal lines. The company highlights this strategy as vital for balancing commercial and personal insurance lines.
Positive
Proposed reorganization to consolidate four insurance companies into three.
Aims to enhance operational efficiency and capital allocation.
Focuses American Coastal on profitable commercial lines growth.
Negative
Potential regulatory hurdles in obtaining approval for the merger.
Journey Insurance Company's financial strength rating may sunset.
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 a proposed reorganization plan to consolidate its four Florida domiciled insurance carriers into three, creating a more efficient operating structure going forward. The Company intends to seek regulatory approval to merge Journey Insurance Company into American Coastal Insurance Company with American Coastal being the surviving entity. We anticipate Journey’s financial strength rating will ultimately sunset and its capital will be redistributed between American Coastal Insurance Company, Family Security Insurance Company, and United Property & Casualty Insurance Company.
“Our plan will enable us to achieve more balance between commercial and personal lines by reallocating existing capital across our group and allowing American Coastal Insurance Company to focus exclusively on continued profitable growth in commercial lines while Family Security Insurance Company and United Property & Casualty Insurance Company focus exclusively on restoring underwriting profitability in our personal lines business,” 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 and one majority owned insurance subsidiary 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, North Carolina and Massachusetts, 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.
CONTACT:
United Insurance Holdings Corp. Jessica Barclay Deputy CFO
(727) 895-7737 / jstrathman@upcinsurance.com
OR
INVESTOR RELATIONS:
The Equity Group
Karin Daly Vice-President
(212) 836-9623 / kdaly@equityny.com
Source: United Insurance Holdings Corp.
FAQ
What is the proposed reorganization for United Insurance Holdings Corp (UIHC)?
United Insurance Holdings Corp plans to consolidate its four Florida-domiciled insurance companies into three, merging Journey Insurance Company into American Coastal Insurance Company.
What are the goals of the merger within UIHC's plan?
The merger aims to improve operational efficiency, allocate capital better, and allow American Coastal to focus on profitable commercial lines while other companies restore profitability in personal lines.
What impact could the merger have on Journey Insurance Company's financial standing?
The merger may lead to the sunset of Journey Insurance Company's financial strength rating, redistributing its capital across the remaining entities.
When did United Insurance Holdings Corp announce its reorganization plan?
United Insurance Holdings Corp announced the reorganization plan in a press release dated today.
