United Insurance Holdings (UIHC) has renewed its 2023-24 disaster reinsurance programs, acquiring $1.32bn of occurrence-based limitation for subsidiary American Coastal Insurance Company (ACIC) and another $82mn occurrence-based limitation for Interboro Insurance Company (ICC).
According to UIHC the year-over-year reduction in reinsurance protection was driven by the divestiture of the business’s personal lines author, United Property & Casualty Insurance Company (UPCIC), which was a celebration to the disaster reinsurance program in the previous years.
Perils covered consist of earthquake and windstorms called or numbered by the National Hurricane Center. For all-other dangers, ACIC put a different disaster excess of loss program on January 1, 2023.
First and 2nd occasion retention of approximately $10m per event, a 39% reduction from the $16.4m in the 2022/23 Core CAT program. Occurrence-based structure with approximated very first occasion limitation of $1.064bn and 2nd occasion limitation of $258m.
For the Florida Hurricane Catastrophe Fund (FHCF) Reimbursement Contract reliable June 1, 2023, ACIC chose 90% protection.
This overall obligatory FHCF layer will supply roughly $598.7m of overall Florida-just protection connecting at $305.1m and tiring at $970.3m, which inures to the advantage of ACIC’s free market cat reinsurance program.
ICC’s 2023-24 reinsurance protection likewise saw a reduction, it decreased 56.3%, from the $187.6m of limitation per event in 2022/23.
The year-over-year reduction was driven by the termination of the inter-company quota show UPCIC, which was divested from the business, as it associates with presumed New York policies, UIHC explained.
Coverage consists of all disaster dangers financed by IIC in New York. UIHC kept in mind that very first and 2nd occasion retention of $3m per event is the same from the 2022/23 program.
Aggregate limitation of $114m, likewise saw a reduction of 53.5%, from the $245.2m of aggregate limitation in 2022/23
The program likewise has adequate protection for roughly a 1-in-130-year occasion; and a 1-in-100-year occasion followed by a 1-in-50-year occasion in the exact same season.
The overall cost of IIC’s 2023/24 disaster excess of loss reinsurance programs is roughly $9.1m, a 45.2% reduction compared to the $16.6m of overall cost for IIC’s 2022/23 disaster excess of loss reinsurance program.
