I lately posted, When Will United Property and Casualty Insurance Company Declare Itself Insolvent? Last week, United Property introduced its monetary situation at an earnings presentation.
One statistic jumped out:
Tangible ebook worth per frequent share was $ 0.12 as of September 30th versus $ 5.10 at the start of the yr. In 9 months, United Property Insurance misplaced 97% of its tangible ebook worth per share.
The firm is leaving the residential private traces market.
An article reporting on the poor monetary place of the corporate, UPC Reports $173M Loss for Q3, Begins Personal Lines Non-Renewals Jan. 1, famous the next:
The father or mother firm of United Property & Casualty Co., already working to shut up store in Florida and different states after years of monetary setbacks, reported a $173 million internet loss for the third quarter of this yr.
….
The destructive numbers weren’t sudden from United P&C, which introduced in August that it will non-renew private traces in Florida and different states and had positioned itself in an orderly runoff. That got here after a purchaser for the troubled insurer couldn’t be discovered.
The newest quarterly report and an earnings name final week provided new details about how pink the ink has been at what was as soon as considered one of Florida’s bigger personal-lines property carriers, and about UPC’s near-term future.
‘During the third quarter we made the difficult decision to withdraw United Property & Casualty Insurance Co. from the personal lines business in the states of Florida, Louisiana and Texas.,’ CEO Dan Peed mentioned in an announcement. ‘While Interboro Insurance Co. will continue to write personal lines business in the state of New York, the withdrawal allows us to focus our capacity on our commercial residential business written by American Coastal Insurance Co.’
What will occur with American Coastal Insurance? I’m not sure. I can think about that some are questioning whether or not UPC is taking claims and operations monies from its soon-to-be-defunct private traces firm and utilizing that money to pay claims and keep operations in American Coastal, which isn’t being topic to runoff.
American Coastal can have backup from the Florida Insurance Guarantee Association. I’m sure that many UPC policyholders might relatively take care of the claims by FIGA versus the unethical claims conduct by UPC.
One last warning, these financials didn’t embrace the destructive impression from Hurricane Nicole.
Thought For The Day
I discovered way back, by no means to wrestle with a pig. You get soiled, and moreover, the pig likes it.
—George Bernard Shaw