Property and casualty insurer UPC Insurance coverage, a part of United Insurance coverage Holdings Corp., has offered off its Nationwide Flood Insurance coverage Program (NFIP) guide to specialist Wright Nationwide Flood Insurance coverage Firm.
The transfer permits United (UPC) to switch over the NFIP Write Your Personal flood insurance coverage guide, so permitting the provider to give attention to its non-public insurance coverage market enterprise as a substitute.
It additionally shifts pure flood danger off UPC’s balance-sheet, because the provider tends to extra wind and multi-peril targeted today.
The transaction is slated to shut on June thirtieth 2022, topic to approval by the Federal Emergency Administration Company (FEMA), after which Wright Flood will service, administer, and subject flood protection beneath the NFIP for UPC Insurance coverage policyholders and brokers.
From Q3 2022, Wright Flood will handle UPC Insurance coverage’s NFIP flood placements, with all new insurance policies and renewals issued by Wright Nationwide Flood Insurance coverage Firm.
As a part of this sale of renewal rights, Wright Flood pays $3.6 million in money to UPC, whereas Wright Flood may even be chargeable for as much as $200,000 of prices related to the switch of the insurance policies. UPC shall be chargeable for any prices in extra of that degree.
Wright Nationwide Flood Insurance coverage Providers President Patricia Templeton-Jones commented on the information,”United Property and Casualty Firm has been round since 1999 for its policyholders and agent companions. We’re excited to hold on that lengthy historical past and supply our expertise within the flood insurance coverage trade to create a clean transition throughout this course of.
“Wright Flood has lengthy been a premier supplier of NFIP flood protection and personal flood insurance coverage choices for each householders and companies,” she added. “That dates again to 1983 when it was one of many first Write Your Personal (“WYO”) members within the Nationwide Flood Insurance coverage Program. We have now been diligent in staying present on all the updates with Threat Ranking 2.0 and stay up for offering these insights with our new agent companions and policyholders.”
“We’re happy to have reached an settlement with Wright for the sale of UPC Insurance coverage’s NFIP flood guide of enterprise,” added UPC Insurance coverage’s Chief Info and Chief Working Officer Chris Griffith. “Wright’s glorious fame within the flood house and specialised data of the NFIP Write Your Personal program will serve the dynamic wants of UPC Insurance coverage’s NFIP policyholders and brokers.”
UPC and United Insurance coverage Holdings can now improve its give attention to core enterprise areas of property insurance coverage, with what is usually a time-consuming to handle and administer NFIP flood insurance coverage guide now off their arms.
The corporate had beforehand introduced it was pulling-back on writing some new Florida householders’ enterprise, citing latest years of disaster losses, rising reinsurance prices and nonetheless rising litigation associated prices after which introduced a consolidation of its Florida property insurance coverage actions as properly.
At its reinsurance renewal this yr, UPC restructured its reinsurance protection to an prevalence tower, as a substitute of the cascading combination reinsurance safety the insurer had in prior years.