All material subject to strictly enforced copyright laws. © 2021 Inside P&C is part of Euromoney Institutional Investor PLC.
Accessibility | Terms & Conditions | Privacy Policy | Modern Slavery Act | Cookies | Subscription Terms & Conditions

UPC carrier Family Security to stop writing new Florida homeowner business

UPC and Family security logos Florida.jpg

United Insurance Holdings (UPC Insurance) has told agents that it will cease underwriting new Florida residential business in its home state from January through its Family Security subsidiary, this publication has learned.

A communication from the firm blamed last year’s hurricane losses, rising litigation and reinsurance costs for the move, which will see it stop quoting new policies of several key types of personal lines coverage.

Its subsidiary Family Security will not offer any new HO3 (homeowner and content) or HO6 (condo) coverage, and UPC itself will not quote any more new DP3 (tenant occupied or vacant building) coverage.

“A critical goal for UPC is to remain a stable, long-term and viable property market solution,” the communication to agencies read.

Family Security wrote $256mn of direct written premium in the year to 30 June, SNL data shows.

UPC's personal lines business in states where it has an ongoing presence made up $837mn of premium in force of its $1.25bn total premium in force, according to a Q3 presentation, although it does not disclose the Florida component.

UPC also writes HO6 business through its separate subsidiary American Coastal and is planning to pivot more of its book towards commercial insurance.

The halt to new quoting follows an already major cutback to the firm’s exposures in the past year.

It has decreased its total value insured by 25%, or $96bn, in the year to 30 September, Q3 presentations outlined.

This comes as regional carriers active in the Gulf states have experienced a hugely challenging couple of years on the back of last year’s active storm season, this year’s Hurricane Ida and ongoing escalation in litigated cases.

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree