United Insurance Holdings Corp., through certain subsidiaries, has renewed its catastrophe reinsurance programs, effective June 1.
For its new catastrophe reinsurance programs, the company bought $4.0 billion of total limit, up 8.1% from the $3.7 billion of total limit it purchased for last year's programs. The total multiyear limit for this year's catastrophe excess of loss insurance programs is $350 million. Also, the company purchased more than $3.2 billion of multi-event cascading limit which covers American Coastal Insurance Co. Inc., Family Security Insurance Co. Inc., Interboro Insurance Co. Inc. and United Property & Casualty Insurance Co.
The programs also include about $2.5 billion total open market catastrophe reinsurance limit that will provide coverage for named or numbered windstorms and earthquakes. The cascading open market reinsurance limit drops down in subsequent events providing no gaps in coverage.
The company elected 90% coverage for American Coastal Insurance, Family Security Insurance, Journey Insurance Co., and United Property and Casualty Insurance for the Florida Hurricane Catastrophe Fund reimbursement contracts, effective June 1.
Coverage within the contracts includes lower per-occurrence retention levels, with a first event group pretax retention of $57 million and a second event group pretax retention of $20 million. Group pretax retention after two events is $77.2 million.
The agreements took effect June 1. The total cost of the programs is about $377.3 million.
Additionally, the company renewed its quota share agreement with private reinsurers, effective June 1. The new agreement includes United Property and Casualty Insurance and Family Security Insurance, and provides coverage for all catastrophe perils and attritional losses.