Item 8.01. Other Events.
United Insurance Holdings Corp. ("UPC Insurance" or the "Company") successfully
renewed its all other perils catastrophe excess of loss agreement (the "AOP CAT"
agreement) and its personal property excess per risk agreement (the "Personal
Lines XPR" agreement). These agreements provide coverage for in-force, new and
renewal business.
Effective January 1, 2021, UPC Insurance, through its wholly owned insurance
subsidiaries American Coastal Insurance Company, United Property and Casualty
Insurance Company, and Family Security Insurance Company, Inc., renewed the AOP
CAT agreement with private reinsurers all rated A- or better by A.M. Best. The
agreement provides protection in excess of $15 million from all catastrophe loss
events other than named windstorms and earthquakes up to $110 million.
Additionally, we increased our aggregate protection provided under this
agreement by adding a reinstatement to the first $45 million of limit provided
by the program.
Effective January 1, 2021, UPC Insurance, through its wholly owned insurance
subsidiaries United Property and Casualty Insurance Company, Family Security
Insurance Company, Inc., and Interboro Insurance Company, renewed the Personal
Lines XPR agreement with a private reinsurer. The agreement provides $2.5
million of limit excess of $1.5 million to limit the Company's personal property
exposure to non-catastrophe losses from any one claim. The reinsurer's maximum
liability for all losses during the treaty period is $7.5 million.
This Item 8.01 may contain forward-looking statements about our reinsurance
program and related attachment point, total coverage and costs. These statements
are subject to the Private Securities Litigation Reform Act of 1995 and are
based on management's estimates, assumptions and projections. These
forward-looking statements can generally be identified as such because the
context of the statement includes words such as estimate, expect or words of
similar nature. The actual changes to our reinsurance program and related
attachment point, total coverage and costs may differ materially from those
discussed in this report, depending on our reinsurers' capacity to pay claims
and related adjustment provisions in our agreements with the private reinsurers.
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