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United (UPC) Reports $36.4m Hurricane Ian Loss For Q3

United (UPC) Reports $36.4m Hurricane Ian Loss For Q3

United (UPC) Reports $36.4m Hurricane Ian Loss For Q3

United (UPC) Reports $36.4m Hurricane Ian Loss For Q3

Property and casualty insurer United Insurance Holdings Corp. (UPC Insurance) has disclosed that it expects to incur $36.4 million of losses from Hurricane Ian in the third quarter of the year.

United noted that this amount does not include the money it expects to get back from its reinsurance policy, as the company is likely to pass on most of its storm-related gross losses to the reinsurance market.

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United explained that its captive reinsurer, UPC Re, retained $20 million, while United Property & Casualty Insurance Company retained approximately $7.4 million and American Coastal Insurance Company retained approximately $9.0 million, for a total of $36.4 million.

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United (UPC) Reports $36.4m Hurricane Ian Loss 

There have been about 19,000 claims filed so far, and the company expects that number to rise to between 27,000 and 30,000, for a total gross estimated loss of $1 billion.

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The $36.4 million loss estimate suggests reinsurers will absorb the lion’s share of United’s losses from Ian, though it is unclear whether this number represents only claims received to date or the total expected claims figures.

United (UPC) Reports $36.4m Hurricane Ian Loss For Q3

If United’s net loss estimate of $364 million is reflective of the $1 billion gross loss figure provided, then United will retain only 3.64 percent of the overall claims costs; if the net loss rises by another 50 percent in line with the projected increase in claims volume, then United will retain only 5.46 percent of losses, leaving its reinsurance panel to absorb between $945 million and $964 million.

According to the company, it will spend about $16 million on reinstatement premiums before its Core Catastrophe reinsurance program ends on May 31, 2023.

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“Hurricane Ian was a devastating storm, and at this time our top priority is taking care of our policyholders,” said Brad Martz, United’s President and Chief Financial Officer.

“The long-term economic implications of this event for our Company and the entire industry are extremely uncertain,” he continued. According to the report, “The Company will be working closely with its reinsurers, service providers, and other key stakeholders to adjudicate losses accurately and timely.”


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