United Insurance Holdings Corp. (Nasdaq: UIHC) (UPC Insurance or the Company), a property and casualty insurance holding company, announced today the completion of a reorganization plan to consolidate its four Florida domiciled insurance carriers into two, creating a more efficient operating structure going forward.
Reorganization
Effective May 31, 2022, the Company merged Family Security Insurance Company, Inc. into United Property & Casualty Insurance Company (United) with United being the surviving entity. Effective June 1, 2022, the Company merged Journey Insurance Company (Journey) 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.
Current Quarter Losses Incurred
The Company estimates current year catastrophe losses incurred for the second quarter ending June 30, 2022 of approximately $21 million before income taxes (approximately $17 million after tax), net of expected reinsurance recoveries. The Company estimates adverse development on prior year losses incurred for the second quarter ending June 30, 2022 of approximately $8 million before income taxes (approximately $6 million after tax), net of expected reinsurance recoveries.
Valuation Allowance
The Company’s cumulative loss position resulted in the need for a valuation allowance on its deferred tax assets. UPC Insurance estimates the valuation allowance for the second quarter ending June 30, 2022, to be approximately $59 million which will decrease net earnings by approximately $44 million.
Quarterly Earnings Conference Call
UPC Insurance expects to release its financial results for second quarter ended June 30, 2022, on Monday, August 8, 2022 after the close of the market and will conduct its quarterly conference call to discuss those results and review the outlook for the Company at 5:00 p.m. ET on Monday, August 8, 2022. The Company invites interested parties to participate in the conference call.
Conference Call Details
Monday, August 8, 2022 – 5:00 p.m. ET
Participant Dial-In Numbers:
(United States): 877-445-9755
(International): 201-493-6744
Webcast
To listen to the live webcast, please go to http://investors.upcinsurance.com and click on the conference call link at the top of the page or go to: UIHC Second Quarter 2022 Conference Call Webcast.
This webcast will be archived and accessible through the Company’s website for approximately 30 days following the call.
About UPC Insurance
Founded in 1999, UPC Insurance is an insurance holding company that sources, writes and services personal and commercial residential property and casualty insurance policies using a group of wholly owned insurance subsidiaries and one majority owned insurance subsidiary through a variety of distribution channels. The Company currently writes policies in Florida, Louisiana, New York, and Texas. The Company also writes policies in Georgia, South Carolina and North Carolina, where renewal rights have been sold and all premiums and losses are ceded. From its headquarters in St. Petersburg, UPC Insurance's team of dedicated professionals manages a completely integrated insurance company, including sales, underwriting, customer service and claims.
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Contacts
United Insurance Holdings Corp.
Jessica Barclay
Deputy CFO
(727) 895-7737 / jbarclay@upcinsurance.com
The Equity Group
Karin Daly
Vice President
(212) 836-9623 / kdaly@equityny.com
