ST. PETERSBURG, Fla.--(BUSINESS WIRE)--United Insurance Holdings Corp. (Nasdaq: UIHC) (UPC Insurance or the Company), a property and casualty insurance holding company, announced today that it estimates catastrophe losses incurred from Hurricane Ian during the third quarter ending September 30, 2022, of approximately $36.4 million before income taxes, net of expected reinsurance recoveries. This includes a net retention of $16.4 million split approximately $7.4 million to United Property & Casualty Insurance Company and $9.0 million to American Coastal Insurance Company, plus a $20 million retention by our captive reinsurer, UPC Re.
The Company has received approximately 19,000 claims to date and estimates it will receive 27,000 to 30,000 claims in total with a gross estimated loss of $1 billion. We also expect to incur about $16 million of reinstatement premiums that will be amortized over the remaining duration of our Core Catastrophe reinsurance program expiring May 31, 2023.
“Hurricane Ian was a devastating storm, and our primary focus today is on servicing our policyholders. There is a very high degree of uncertainty regarding the long-term economic implications of this event for our Company, and the entire industry. The Company will be working closely with its reinsurers, service providers, and other key stakeholders to adjudicate losses accurately and timely,” said Brad Martz, President & Chief Financial Officer.
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 through a variety of distribution channels. The Company currently writes policies in Florida, Louisiana, New York, and Texas. The Company also writes policies in 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.
Forward-Looking Statements
Statements made in this press release that are not historical facts are “forward-looking statements”. The Company believes these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions, or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those expressed in, or implied by, the forward-looking statements. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words such as “may,” “will,” “expect,” "endeavor," "project," “believe,” "plan," “anticipate,” “intend,” “could,” “would,” “estimate” or “continue” or the negative variations thereof or comparable terminology. Factors that could cause actual results to differ materially may be found in the Company's filings with the U.S. Securities and Exchange Commission, in the “Risk Factors” section in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements.
