News

United Reports $21m Of Q2 Cat Losses Completes Reorganization

United Reports $21m Of Q2 Cat Losses Completes Reorganization

United Reports $21m Of Q2 Cat Losses Completes Reorganization

United Reports $21m Of Q2 Cat Losses Completes Reorganization

The United Insurance Holdings Corp. (UPC Insurance), a holding company for property and casualty insurance, calculated that during the second quarter of 2022, it suffered catastrophe losses totaling $21 million.

ALSO, READ Brown & Brown Reports Revenue Increases Of 15% In Q2 Results

According to UPC, this amount is net of anticipated reinsurance recoveries and before income taxes, with the after-tax sum being estimated at $17 million.

Additionally, net of reinsurance recoveries, the company projects that adverse development on prior year losses incurred during Q2 will be around $8 million before tax or $6 million after tax.

INVEST IN IRAs, SECURE YOUR FUTURE

The completion of a reorganization plan to combine its four Florida-based insurance companies into two has also been confirmed by UPC Insurance.

ALSO, READ AXIS Reports $22mn Fall In Q2 Operating Income

United Reports $21m Of Q2 Cat Losses Completes Reorganization

It plan, which it says will create a more efficient operating structure going forward, merges Family Security Insurance Company, Inc. into United Property & Casualty Insurance Company (United) with United being the surviving entity.

Journey Insurance Company (Journey) has also been merged into American Coastal Insurance Company with American Coastal Insurance Company being the surviving entity. As part of the merger, $30 million of Journey’s capital was redistributed to United.

ALSO, READ Definition Of All Types Of Insurance For Individual & Businesses (2022)

Furthermore, UPC says that its cumulative loss position has resulted in the need for a valuation allowance on its deferred tax assets.

The company estimates the valuation allowance for Q2 to be approximately $59 million which will decrease net earnings by approximately $44 million.

ALSO, READ RLI Corp Reported A Net Loss Of $2.2 Million In the Second Quarter Of 2022


AllInsuranceHUB is a blog for everyone who seeks an informative, educative, and knowledge-based online insurance and investment community. We share Biographies, Top-notch investment tips, finance news, insurance policy details and much more. You can read and share thoughts, ideas, and opinions on the finance market and get real-time updates from around the globe.

IBEH C. JOE

Financial analyst, Entrepreneur, Blogger and Business model

Leave a Reply

Back to top button
%d bloggers like this: