UPC places property excess of losses in reinsurance programme

United Insurance Holdings (UPC), the property and casualty insurance holding company, has successfully placed a new property aggregate excess of loss reinsurance programme, effective January 1, 2016 and expiring December 31, 2016.

The new contracts replace the $22 million excess of $3 million per occurrence coverage UPC had in place for 2015 and are designed to protect the company against accumulated losses from all catastrophe events except windstorms named by the National Hurricane Center.

For 2016 UPC will now retain the first $15 million of aggregate catastrophe losses and then transfer the next $20 million of catastrophe losses in the aggregate, excluding named windstorms. The $20 million of aggregate limit is intended to provide additional protection against the company’s modelled expected loss from the catastrophe perils of winter storm, severe convective storm, tornado and hail.

Brad Martz, chief financial officer of UPC Insurance, said: “We are pleased to have put this new catastrophe reinsurance program into effect. It provides us much greater protection from annual earnings degradation due to winter or convective storms than we have had in the past.

“The panel of reinsurers is very strong, and we appreciate the partnerships we have formed with our reinsurance counterparties. Over time, these relationships will help us manage the inherent volatility in our business and enable us to produce consistent profitability and strong returns on capital.”