Distressed Florida homeowner insurer United falls, drops personal lines
Florida-based P&C group United Insurance has succumbed to its wounds and will put its personal lines across four US states into run-off.
The group’s personal lines subsidiary United P&C has filed plans of withdrawal in Florida, Louisiana and Texas and intends to file a plan of withdrawal in New York for non-renewal of personal lines across those jurisdictions.
“Due to significant uncertainty around the future availability of reinsurance for our personal lines business, I believe placing United P&C into an orderly run-off is prudent and necessary to protect the Company and its policyholders,” CEO Dan Peed said.
The group’s commercial business continues to perform well, Peed insisted, with hint that some portion of staff from the personal lines unit might yet be salvaged within the group.
Regulatory approval has been already been received in Louisiana, but is still pending in Florida and Texas.
The group had suffered an attributable net loss of $102 million in the first half of 2022, prompting a decision to review strategic options. The GAAP return on equity rang in at a staggering negative 72%. The group’s combined ratio rose just over 10 percentage points year on year to 137.7%.
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