UPC reorganizes, consolidates carriers
St. Petersburg-based United Insurance Holdings Corp., known as UPC, has completed a reorganization plan to consolidate its four Florida domiciled insurance carriers into two.
The company’s restructuring announcement also included a report showing it experienced a second-quarter catastrophe loss of $17 million after taxes, net of expected reinsurance recoveries.
The significant loss and reorganization plan follows United’s reported $33 million loss in the first quarter, as well as its $59.9 million loss for 2021 and $95 million net loss in 2020.
Through the mergers, in May, United officially merged Family Security Insurance Company Inc. into United Property & Casualty Insurance Company (United) with United being the surviving entity.
A month later, the company also merged with Journey Insurance Company (Journey) into American Coastal Insurance Company with American Coastal Insurance Company being the surviving entity, the company announced in its quarterly report.
As part of the merger, $30 million of Journey’s capital was redistributed to United.
United previously has stated it was seeking options to raise capital after being hit with the financial losses, which included selling the company or merging with another insurer.
United’s full financial results for the second quarter will be revealed on Aug. 8, during an investors’ conference call.
A spokesperson said United has no comment at this time regarding the reorganization.
Currently, United continues to operate out of its 42,000-square-foot HQ building in St. Petersburg.
Earlier this year, United sold several parcels across from its headquarters at 800 2nd Ave. S.to an LLC connected to the St. Pete-based Moyer Law Group, in a $4.2 million deal.
