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