Home Insurance Bankrupt Florida property insurer positioned into receivership

Bankrupt Florida property insurer positioned into receivership

Bankrupt Florida property insurer positioned into receivership

Final August, the St. Petersburg, FL-based UPC introduced that it might exit Florida’s householders’ insurance coverage market. Tampa Bay Instances reported that one other insurer, Slide Insurance coverage, took on 72,000 of UPC’s insurance policies earlier this month.

A doc filed with the SEC on February 06, 2023 indicated that UPC had about 135,000 insurance policies in Florida earlier than Slide took over a portion of them. In one other SEC submitting on February 10, mother or father firm United Insurance coverage Holdings Company stated that UPC was anticipated to be positioned into receivership attributable to insolvency.

“United was deemed bancrupt on February 6, 2023, as a result of if the entire belongings of United, if made instantly accessible, could be inadequate to discharge the entire liabilities of United,” OIR Property & Casualty Monetary Oversight director Virginia Christy stated in an affidavit connected to Yaworksy’s letter.

Christy’s affidavit additionally famous that UPC had web underwriting losses of over $35 million annually since 2017.

Whereas UPC was nonetheless in enterprise final yr, trade specialists noticed the writing on the wall when Demotech downgraded the insurer’s ranking from “A” to “M” final yr. Demotech finally withdrew UPC’s ranking in late August 2022 – an indication that the Insurance coverage Info Institute took to imply that UPC would be part of Florida’s rising checklist of bancrupt property insurers.

A complete of six insurers have been positioned into receivership in 2022 attributable to insolvencies.

What are your ideas about UPC being positioned into receivership? And what’s subsequent for Florida’s property market? Tell us within the feedback beneath.