United Insurance secures additional reinsurance protection
Property/casualty insurer United Insurance Holdings (UPC) has secured additional reinsurance protection as part of its efforts to reduce operating leverage and improve capital adequacy for 2020 and beyond.
The Florida-based carrier has bound terms that expand its current quota share reinsurance programme for United Property & Casualty Insurance Company (UPC) and Family Security Insurance Company (FSIC) from the current cession rate of 22.5 percent to 30.5 percent, effective December 31, 2020.
A quota share cession of 23 percent was secured through May 31, 2022, with the remaining 7.5 percent pending renewal at June 1, 2021.
The company has also bound quota share reinsurance coverage for American Coastal Insurance Company at a cession rate of 23 percent, also effective December 31, 2020, and expiring May 31, 2022.
The general terms and conditions of the quota share reinsurance programme remain mostly unchanged except for the increased participation rates, which provide additional ground up protection from all perils in all US states where the covered companies operate.
Brad Martz, president & chief financial officer of UPC Insurance, said: “I’m grateful for the support we continue to receive from our reinsurance partners. The additional quota share capacity supports our efforts to reduce operating leverage and improve capital adequacy for 2020 and beyond.”
