United Insurance Holdings Corp. Previews Q4-2020 Estimated Catastrophe Losses

Rhea-AI Summary

United Insurance Holdings Corp. (NASDAQ: UIHC) reported estimated catastrophe losses for 2020 between $85 million and $100 million before taxes, equating to approximately $67 million to $79 million after tax. These losses stem from three named windstorms: Hurricane Delta, Hurricane Zeta, and Tropical Storm Eta, as well as other events. The figures reflect net losses, factoring in expected reinsurance recoveries. UPC Insurance is engaged in property and casualty insurance, serving multiple states including Florida and Texas.

Positive

• None.

Negative

• Estimated catastrophe losses between $85 million and $100 million before taxes could strain the company's financial resources.
• The reported losses are significant, potentially impacting future profitability and shareholder value.

United Insurance Holdings Corp. (NASDAQ: UIHC) (UPC Insurance or the Company), a property and casualty insurance holding company, today announced estimated current year catastrophe losses incurred from October 1, 2020 to November 30, 2020 between $85 million and $100 million before income taxes (approximately $67 million to $79 million after tax), net of expected reinsurance recoveries. The Company’s fourth quarter catastrophe losses through November 30, 2020 included claims from three new named windstorms (Hurricane Delta, Hurricane Zeta, and Tropical Storm Eta) and other non-named windstorm catastrophe events.

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 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.

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. 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.

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FAQ

What are the estimated catastrophe losses announced by United Insurance Holdings Corp. (UIHC)?

United Insurance Holdings Corp. announced estimated catastrophe losses between $85 million and $100 million before income taxes for the year 2020.

Which events contributed to the catastrophe losses reported by UIHC?

The catastrophe losses were primarily due to three named windstorms: Hurricane Delta, Hurricane Zeta, and Tropical Storm Eta.

How much of the catastrophe losses will be recovered through reinsurance for UIHC?

The reported catastrophe losses account for expected reinsurance recoveries, indicating the net losses would be approximately $67 million to $79 million after tax.

What is the impact of the catastrophe losses on UIHC's financial outlook?

The significant estimated losses could impact United Insurance Holdings Corp.'s future profitability and shareholder value.