TAMPA, Fla., Dec. 16, 2021 (GLOBE NEWSWIRE) — HCI Group, Inc. (NYSE:HCI), a holding firm with operations in owners insurance coverage, data expertise companies, reinsurance and actual property, has reached an settlement in precept with United Insurance coverage Holdings Corp. (NASDAQ: UIHC) to transition all of United’s private traces insurance coverage enterprise within the states of Georgia, North Carolina, and South Carolina to HCI. The enterprise to be transitioned represents roughly $90 million of annual premiums.
Beneath the settlement, HCI will present 85% quota share reinsurance on all of United’s in-force, new and renewal insurance policies in Georgia, North Carolina, and South Carolina from December 31, 2021 by Might 31, 2022. In change, HCI pays United a provisional ceding fee of 25% of premium earned and that proportion may enhance as much as 32% relying on the direct loss ratio outcomes for the reinsured enterprise. HCI will even pay United a disaster allowance equal to 9% of premium earned.
As a part of the transaction, HCI pays United a renewal rights ceding fee of 6%, with a portion of the ceding fee paid up-front. In reference to the transaction, United will agree to not compete with HCI for the issuance of non-public traces for owners enterprise within the three states till July 1, 2025.
The transaction is topic to negotiation of definitive agreements and customary closing situations, together with receipt of all relevant regulatory approvals.
“This transaction gives one other nice alternative for HCI,” mentioned HCI Group Chairman and Chief Government Officer Paresh Patel. “HCI is increasing its relationship with United following a profitable transaction within the Northeast. This newest settlement additional accelerates HCI in the direction of its development ambitions, expands the corporate’s footprint in current and new states, and brings a longtime agent community. HCI has the monetary energy to assist and develop these new enterprise alternatives.”
About HCI Group, Inc.
HCI Group, Inc. owns subsidiaries engaged in various, but complementary enterprise actions, together with owners insurance coverage, reinsurance, actual property and data expertise companies. HCI’s main insurance coverage operation, TypTap Insurance coverage Firm, is a quickly rising, technology-driven insurance coverage firm that’s increasing nationwide to supply owners and flood insurance coverage. TypTap’s operations are powered largely by insurance-related data expertise developed by HCI’s software program subsidiary, Exzeo USA, Inc. HCI’s largest subsidiary, Householders Alternative Property & Casualty Insurance coverage Firm, Inc., gives owners’ insurance coverage primarily in Florida. HCI’s actual property subsidiary, Greenleaf Capital, LLC, owns and operates a number of properties in Florida, together with workplace buildings, retail facilities and marinas.
The corporate’s frequent shares commerce on the New York Inventory Change beneath the ticker image “HCI” and are included within the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. usually publishes monetary and different data within the Investor Data part of the corporate’s web site. For extra details about HCI Group and its subsidiaries, go to www.hcigroup.com.
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