UPC enters $2.8bn reinsurance agreement

Homeowners’insurance provider UPC Insurance, through its wholly owned insurance subsidiaries, entered into a $2.8 billion reinsurance program with private reinsurers and with the Florida State Board of Administration.

These agreements provide coverage for catastrophe losses from named or numbered windstorms and earthquakes in all states in which UPC Insurance operates, except for the Florida Hurricane Catastrophe Fund agreement, which only provides coverage in Florida against storms that the National Hurricane Center designates as hurricanes.

The agreement, which becomes effective June 1, 2017, includes more frequency and severity protection than in any prior year, with an overall program exhaustion point of nearly $2.8 billion, according to an SEC filing.

The total cost of the 2017-18 catastrophe reinsurance program is approximately $314.2 million.

UPC’s wholly owned insurance subsidiaries are American Coastal Insurance Company, United Property and Casualty Insurance Company, Family Security Insurance Company, and Interboro Insurance Company.

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