Final August, St. Petersburg, FL-based UPC introduced it was exiting Florida’s owners insurance coverage market. The Tampa Bay Instances reported that one other insurer, Slide Insurance coverage, assumed 72,000 insurance policies from UPC earlier this month.
A doc filed with the SEC on Feb. 6, 2023 signifies that UPC had roughly 135,000 insurance policies in Florida earlier than Slide took over a portion of them. In one other SEC submitting dated Feb. 10, dad or mum firm United Insurance coverage Holdings Company stated UPC is anticipated to be positioned beneath receivership for chapter.
“United was deemed to be bancrupt on February 6, 2023 as a result of if all of United’s property, if instantly obtainable, wouldn’t be enough to pay all of United’s liabilities,” stated Virginia Christy, director of OIR Property & Casualty Monetary Oversight , in an affidavit connected to Yaworksy’s letter.
Christy’s affidavit additionally famous that UPC has had over $35 million in internet underwriting losses yearly since 2017.
Whereas UPC was nonetheless in enterprise final yr, business consultants noticed the writing on the wall when Demotech downgraded the insurer’s score from “A” to “M” final yr. Demotech lastly withdrew UPC’s score in late August 2022 — an indication the Insurance coverage Data Institute took UPC so as to add to Florida’s rising listing of defaulting property insurers.
A complete of six insurers had been put into receivership in 2022 as a consequence of insolvency.
What do you consider UPC being positioned beneath receivership? And what’s subsequent for Florida’s actual property market? Tell us within the feedback under.