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United Insurance Holdings Corp. Announces the Sale of Its Florida Personal Lines Renewal Rights to Slide Insurance, Inc.
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Rhea-AI Summary
United Insurance Holdings Corp. (Nasdaq: UIHC) has sold the renewal rights of its personal lines business in Florida to Slide Insurance, Inc. This strategic move accelerates the run-off of UPC Insurance's personal lines portfolio, significantly reducing its liabilities in the state. As of February 1, 2023, UPC will cancel approximately 72,000 personal lines policies, and Slide will issue replacement policies. Additionally, UPC Insurance has sold certain data and intellectual property to Slide and will provide policy administration services for a 2% fee on gross earned premiums. This transaction allows UPC Insurance to refocus on its commercial specialty property portfolio.
Positive
Sale of renewal rights reduces exposure to Florida liabilities.
Focus on fast-growing commercial specialty property portfolio.
Negative
Cancellation of 72,000 personal lines policies may indicate a shrinkage in market presence.
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--
United Insurance Holdings Corp. (Nasdaq: UIHC), a property and casualty insurance holding company (“UPC Insurance”), announced today that it has sold the renewal rights to UPC Insurance’s personal lines business in the state of Florida, and sold certain data and intellectual property to Slide Insurance, Inc.(“Slide”). The transaction accelerates the run-off of UPC Insurance’s personal lines portfolio, further reducing its exposure to Florida liabilities and allowing UPC Insurance to focus on its fast-growing commercial specialty property portfolio, underwritten by American Coastal Insurance Company.
Under the terms of the transaction, UPC Insurance will cancel approximately 72,000 Florida personal lines policies on February 1, 2023, and Slide will immediately issue replacement policies. Additionally, Slide will make offers of coverage to additional Florida personal lines policies expiring in April 2023. UPC Insurance retains all liabilities with respect to claims with a date of loss on or prior to January 31, 2023.
UPC Insurance and Slide also entered into an Asset Purchase and Services Agreement effective February 1, 2023, whereby UPC Insurance sold certain intellectual property and data to Slide and UPC Insurance will provide Slide with policy administration services in exchange for two percent (2%) of gross earned premium of the policies subject to the Renewal Rights Agreement plus costs incurred by UPC Insurance to provide services.
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 South Carolina and North Carolina, where renewal rights have been sold and all premiums and losses are ceded.
Forward-Looking Statements
Statements made in this press release may be “forward-looking statements.” These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words such as “may,” “will,” “expect,” "endeavor," "project," “believe,” "plan," “anticipate,” “intend,” “could,” “would,” “estimate” or “continue” or the negative variations thereof or comparable terminology, and include statements regarding signing definitive documentation for the transaction, receipt of regulatory approvals and effectiveness of the quota share reinsurance agreement. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, we undertake no obligation to update or revise any forward-looking statement.
