Last August, the St. Petersburg, FL-based UPC introduced that it might exit Florida’s owners’ insurance coverage market. Tampa Bay Times reported that one other insurer, Slide Insurance, 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, father or mother firm United Insurance Holdings Corporation stated that UPC was anticipated to be positioned into receivership attributable to insolvency.
“United was deemed insolvent on February 6, 2023, because if all of the assets of United, if made immediately available, would be insufficient to discharge all of the liabilities of United,” OIR Property & Casualty Financial 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 every year since 2017.
While UPC was nonetheless in enterprise final yr, business consultants noticed the writing on the wall when Demotech downgraded the insurer’s score from “A” to “M” final yr. Demotech finally withdrew UPC’s score in late August 2022 – an indication that the Insurance Information Institute took to imply that UPC would be a part of Florida’s rising listing of bancrupt property insurers.
A complete of six insurers had 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? Let us know within the feedback beneath.