Florida headquartered, expansive catastrophe exposed primary property insurer United Insurance Holdings (UPC Insurance),has entered into a $120 million quota share reinsurance arrangement as part of the deal to sell some of its northeast U.S.business to HCI Group.As we reported back last December, United (UPC Insurance) had agreed to sell its personal lines business from the four Northeast states of Connecticut, New Jersey, Massachusetts, and Rhode Island to HCI Group.It doesn’t represent a complete exit from the Northeast for United (UPC), as the firms United Property & Casualty Insurance Company (UPCIC) and Interboro Insurance Company, will continue to underwrite policies and servicing policyholders in New York.

The arrangement saw HCI providing 69.5% quota share reinsurance on United’s (UPC) in-force, new and renewal policies in Connecticut, Massachusetts, New Jersey and Rhode Island for the period December 31st 2020 through May 31st 2021.At the same time, the remainder was covered by United’s (UPC) 30.5% quota share reinsurance with its other reinsurance partners, that stayed in place.But now, the arrangement with HCI has been updated and the quota share reinsurance percentage lifted to 100%.

United (UPC) said that it has now entered into a new quota share arrangement with Homeowners Choice Property & Casualty Insurance Company, Inc.and Typtap insurance Company, effective June 1st 2021, through May 31st 2022.The quota share reinsurance arrangement cedes 100% of UPC’s in-force, new and renewal policies in the states of Connecticut, New Jersey, Massachusetts, and Rhode Island, with 50% ceded to Homeowners Choise and 50% to TypTap.

Both of the companies will pay UPC a ceding commission of 24% of direct written premium.HCI said that the quota share reinsurance arrangement covers roughly $120 million of annual premiums, which will be evenly split between its two subsidiaries.HCI’s insurance operations had been substantially in Florida, but the company had announced ambitious plans to expand nationwide last year.

United (UPC) said that the deal means it can focus on expanding its specialty commercial property business and improving its statutory risk based capital position through a reduction of its operating leverage.———————————————————————.All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.