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UPC Insurance coverage expects $1bn Hurricane Ian loss



UPC Insurance expects $1bn Hurricane Ian loss

UPC Insurance coverage is anticipating 27,000 to 30,000 claims from hurricane Ian, driving an estimated gross lack of $1 billion.

The service, which has sought to exit its private strains enterprise in Florida, Louisiana, New York and Texas, had its private line’s insurer’s Demotech score withdrawn in August. That very same month it made a spherical of layoffs, based on an Insurance coverage Data Institute spokesperson, who cautioned that it may very well be on the “verge” of failure.

Learn extra: UPC lays off workers, insurer on “verge” of failure – Triple-I

UPC up to date that third quarter losses from Ian are roughly $36.4 million earlier than revenue taxes and web of reinsurance recoveries.

This features a web retention of $16.4 million, with roughly $7.4 million attributable to the non-public strains enterprise, United P&C, and $9 million to American Coastal Insurance coverage Firm, along with a $20 million retention by its captive reinsurer, UPC Re.

Up to now, it has obtained 19,000 claims from the occasion.

The enterprise mentioned it additionally expects to incur round $16 million of reinstatement premium, to be amortized over the “remaining period” of its core disaster reinsurance program, which is about to run out on Might 31, 2023.

“Hurricane Ian was a devastating storm, and our main focus in the present day is on servicing our policyholders,” mentioned UPC president and chief monetary officer Brad Martz.

“There’s a very excessive diploma of uncertainty concerning the long-term financial implications of this occasion for our firm, and your complete business.”

 

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