United Insurance Holdings (UPC Insurance) has revealed that its total gross losses from Hurricane Ian has increased from its preliminary estimate of $1 billion from Q322, to approximately $1.54 billion as of the end of the full-year.
The firm’s Hurricane Ian gross loss estimate relates to its personal lines business underwritten by United Property & Casualty Insurance Company, (UPC) which increased from $660 million to $864 million, resulting in a net increase in loss expense to UPC of $145 million, net of reinsurance.
United noted that its current loss estimate of $864 million fully exhausts all reinsurance available to UPC for this specific event.
In addition, the firm also estimates that UPC will incur approximately $36 million of net loss and loss adjustment expense related to current accident year non-hurricane catastrophe losses, and $61 million of net loss and loss adjustment expense during Q422 from adverse prior year reserve development on both catastrophe and non-catastrophe claims.
At the same time, United also noted that it expects to incur approximately $197 million of net loss and loss adjustment expense related to current accident year catastrophe events for the fourth quarter of 2022, heavily driven from the events of Hurricane Ian.
Meanwhile, in Q322, UPC Insurance reported a total net loss of $70.9 million, compared to a net loss of $14.3 million from 2021.
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