United Insurance Holdings Corp. (OTCBB: UIHC) (United or the Company), a property and casualty insurance holding company, announced today that the North Carolina Department of Insurance approved United Property & Casualty Insurance Company (UPC), one of its wholly-owned subsidiaries, to write property and casualty insurance in the state as an admitted carrier. This brings the total number of states in the U.S. covered by UPC to five, along with Florida, South Carolina, Massachusetts, and Rhode Island.
United Property & Casualty Insurance Company expects to continue its expansion program and is in varying stages of discussion with other state insurance regulatory authorities regarding its desire to write property insurance in other states.
The Company also announced today that UPC received a mandatory assessment from the Florida Insurance Guaranty Association, Inc. (FIGA), a nonprofit corporation created by the Florida legislature. The assessment, which was approved by the Florida Office of Insurance Regulation, is equal to 0.9% of UPC’s net direct written premiums in Florida for the 2011 calendar year and is applicable to all members of FIGA’s “All Other Account,” which includes UPC.
The assessment is expected to result in a pre-tax charge to consolidated operations of $1.6 million in the fourth quarter of 2012. The mandatory assessment is expected to be fully recouped through a surcharge on UPC’s Florida policies, pursuant to a filing that will be submitted to the Florida Office of Insurance Regulation and the Company expects it will have a positive impact on operating results over a twelve-month period beginning February 1, 2013.
About United Insurance Holdings Corp.
Founded in 1999, United Property & Casualty Insurance Company, a subsidiary of United Insurance Holdings Corp., writes and services homeowners insurance in Florida, South Carolina, Massachusetts, and Rhode Island and is licensed to write in North Carolina. From its headquarters in St. Petersburg, United's team of dedicated professionals manages a completely integrated insurance company, including sales, underwriting, customer service and claims. The Company distributes its homeowners, dwelling fire and flood products through many agency groups and conducts business through four wholly-owned subsidiaries. Homeowners insurance constitutes the majority of United's premiums and policies.