UPC Insurance

ACIC’s program offers sufficient coverage for approximately a one-in-167-year event and a one-in-100-year event followed by a one-in-50-year event in the same season, the company said.

The firm will exhaust its personal lines reinsurance coverage on the storm, pushing its personal lines carrier into insolvency, with commercial claims doubling.

The transaction provides relief for policyholders and agents, but especially for those policyholders whose policies expire past UPC’s June 1 deadline.

The carrier had earlier signalled that uncertainty over reinsurance would affect its ability to write new business.

In late August, UPC signaled that it will pull out of personal lines in Florida, Texas, Louisiana and New York.

UPC’s closing price hit the bottom of $0.99 per share on Sept 6 and has remained below the $1.00-threshold ever since.

The insurer has received roughly 19,000 claims to date and estimates it will receive 27,000 to 30,000 claims.

Loss creep from Hurricane Ida has led to the loss and an increase in loss reserves.

The carrier said its commercial business gave the company a platform to build on.

UPC policyholders could be force-placed by their mortgage lender.

On August 1, Demotech downgraded UPC's financial stability rating by two notches to M from A.

Demotech earlier warned that more than 15 possible carrier downgrades could come in July.