HCI Group, Inc. (NYSE:HCI) reached an agreement in principle to acquire Personal lines insurance business in the states of Georgia, North Carolina, and South Carolina from United Insurance Holdings Corp. (NASDAQ: UIHC) on December 16, 2021. Under the quota share arrangement, HCI will pay to UPC a provisional ceding commission of 25% of premium earned during the term of the contract that could increase up to 32% depending on the direct loss ratio results for the reinsured business. Also as part of the transaction, UPC will grant HCI renewal rights in respect of its personal lines business in Georgia, North Carolina and South Carolina. Consideration for renewal rights includes an up-front cash payment from HCI to UPC of $3.8 million which will be adjusted based on the amount of premium transitioned to HCI, subject to a maximum of $6 million. The transaction is subject to negotiation of definitive agreements and customary closing conditions, including receipt of all applicable regulatory approvals. Debevoise & Plimpton LLP is acting as legal advisor to UIHC.