United Insurance Holdings Corp. Completes Renewal Rights and Reinsurance Transaction

Rhea-AI Summary

United Insurance Holdings Corp. (Nasdaq: UIHC) has finalized its agreement with HCI Group, Inc. (NYSE: HCI) to transfer renewal rights on UPC's personal lines business in Connecticut, New Jersey, Massachusetts, and Rhode Island. This move, part of an earlier announcement from December 2020, aims to enhance operating leverage, improve risk-based capital adequacy, and allow UPC to focus on expanding its specialty commercial property business. The transaction is in line with the company's strategy to strengthen its financial position.

Positive

• Completed transaction enhances operating leverage.
• Improves risk-based capital adequacy.
• Allows focus on growing specialty commercial property business.

Negative

• None.

United Insurance Holdings Corp. (Nasdaq: UIHC) (UPC Insurance or the Company), a property and casualty insurance holding company, announced today that it has completed definitive agreements and closed its transaction with HCI Group, Inc. (NYSE: HCI) (HCI) previously announced on December 17, 2020. The transaction transfers renewal rights on UPC’s personal lines business in four Northeast states of Connecticut, New Jersey, Massachusetts, and Rhode Island to HCI on terms substantially similar to those disclosed previously.

“Completion of this transaction supports our efforts to reduce operating leverage, improve risk-based capital adequacy and focus on growing our specialty commercial property business,” said Brad Martz, President & Chief Financial Officer of UPC Insurance.

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 Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina and Texas. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210122005442/en/

FAQ

What was the recent transaction announced by United Insurance Holdings Corp. (UIHC)?

UIHC completed a transaction with HCI Group to transfer renewal rights on its personal lines business in four Northeast states.

How does the transaction impact UIHC's operations?

The transaction supports UIHC's efforts to reduce operating leverage and improve risk-based capital adequacy.

Which states are involved in the UIHC and HCI Group transaction?

The transaction involves Connecticut, New Jersey, Massachusetts, and Rhode Island.

When was the agreement for the transaction initially announced?

The agreement was initially announced on December 17, 2020.

What is the main strategy of UPC Insurance moving forward after the transaction?

UPC Insurance aims to focus on growing its specialty commercial property business.