United Property and Casualty Insurance Company was placed into administrative supervision by state regulators Monday.
The consent order from the Office of Insurance Regulation states the St. Petersburg company had seen at least $35 million in losses each of the last five years. United also posted a $169.8 million underwriting loss in its third quarter report to the office while posting a surplus of $56.9 million for the 142,785 policies it had in force as of Nov. 1.
That surplus was a drop of more than 66% since the start of the year, or $112.4 million.
Public supervision of a company is different from a business being placed into receivership, as six other insurers were earlier this year. United is still solvent and the order allows the company to remain so while it pays out claims as it leaves the market.
United’s losses led to a ratings downgrade in the summer. That pushed United to leave the Florida market, and it was already in the process of doing so by not renewing its existing customers, but the consent order speeds up the process.
The order puts United under public administration while it divests from its Florida policies — 70,287 of them, or about half, were still projected to be United policies by May 31, 2023. But the company has been unable to obtain reinsurance for the 2023 hurricane season and the temporary reinsurance it purchased from the state earlier this year expires on May 31, 2023, so all of its policies will be canceled by that date.
The order also requires United to maintain staff to handle claims and consumer inquiries.
It’s the latest domino to fall in the Florida property insurance market, which has seen FedNat Insurance Co., Weston Property and Casualty Insurance Co., Southern Fidelity Insurance Co., Lighthouse Property Insurance Corp., Avatar Property and Casualty Insurance Co. and the St. Johns Insurance Co. be placed into receivership this year.
Florida lawmakers are poised to convene a Special Session on Monday to attempt to stabilize the market. Insurers have mostly blamed costly litigation as the main source of the market’s troubles, which has led to reinsurers’ decisions to pull away from Florida, leaving some companies unable to obtain coverage needed to insure all of their policies.
December 6, 2022 at 8:59 pm
Many property insurance companies continue to liquidate or no longer write new business in Florida, and many of the remaining carriers are requesting rate increases. What’s worse, potential financial strength rating downgrades could cause issues for millions of homeowners.
Small now and get the hell out of Fl before you face no insurance. If you have no insurance and the mortgage co cannot insure, they will foreclose.
Desantis has fu*ed up Florida more than you can imagine. Wait until the state has to pay back the Covid funds he has been handing out like candy.
Then we have this :DeSantis human trafficking operation has expended $3,465,000 so far for two flights with migrants from Texas to Martha’s Vineyard, one empty flight to Teterboro.
More of Desantis criminal minions have been enjoined in the existing lawsuits. Like his mentor DeSantis will not be alone when he goes down.
Investigators are now in Tallahassee.
Jon the Agent
December 7, 2022 at 1:33 pm
don’t be moronic, oops too late. You obviouosly know nothing about the Florida Insurance Market and have a well rehearsed blame the political boogey man for everything mentality. Do some reasearch and read about the years of mismanagement by prior governonrs and the true culprits: Attorneys and shady roofing contractors.
December 11, 2022 at 6:44 pm
Where are you coming up with your BS, turn off CNN and see what is actually happening in Florida.
It is Biden that is stopping FEMA payment to Fort Meyers Beach recovery needs. DeSantis is fighting for Floridians. Maybe you do need to leave FLorida, we don’t need morons here.
December 20, 2022 at 9:03 am
December 7, 2022 at 7:43 pm
Jon, you have no clue or work for the insurance companies and want everyone to believe the bs they spin to justify their high denial rates in Florida. The highest in the nation and the highest rate of underpayments in the country. They also don’t bother to let homeowners know how highly compensated are their CEO’s as they complain that they are losing money. DeSantis and his cronies are only part fi the problem, this started before him but he and his administration have refused to seriously tackle it. The can cannot be kicked any farther. Fraud, litigation, are part of the problem but only part of it. If you think that making it harder for homeowners to sue will solve this problem I have a bridge to sell you. It will simply make the insurance companies more likely to deny or underpay. because the homeowner will no longer be able to afford to have someone advocate for them. That’s why they want you to believe that it’s all due to litigation and fraud. Fraud must be vetted and criminally punished but fraud is a small part of this problem.
Jon the Agent
December 9, 2022 at 12:26 pm
No, I have been in the business for 24 years and licensed in 11 states. Florida is a unique market and with 11 insurers out of 46 going out of business in the last 24 months it is by far the most volatile. My point is that is has nothing to do with politics. it is profit and loss. The re-insurance companies that insure the losses have decided to restrict that market and the smaller companies and/or mis-managed ones have gone out of business due to those costs, and many other reasons. Repeat: It has nothing to do with politics. Right or Left, losing money is not a way to stay in business. Google LA insurance. They are having the same issue with insurers leaving the state. Knee jerk reactions without facts and blaming politics is what ill informed people do.
December 9, 2022 at 11:48 pm
Your arguments don’t really help us that can’t even get a reply from UPC and are living in house that have been destroyed or damaged. You clearly don’t live in the area affected if you have enough time to argue with each other on here. I would very much appreciate it if Yolanda Turner with UPC insurance can start responding to her emails or voicemails. I understand they have a lot on there plate but I haven’t heard anything since October 3rd. And can’t get any help from FEMA because of it. Denying my claim would be helpful!!! Better than nothing at this point!!!!
December 20, 2022 at 9:03 am
I’m in the same boat with UPC. Zero communication.
Ian victim again
December 12, 2022 at 3:24 am
I finally got a response from Yolanda Turner by posting on here. Guess this is the way to reach them. The first response was the DA doesn’t handle represent claims. The next message was I don’t have that information. They will reach out to you when they receive it! My claim was put in on October 3rd. The same day I hired a PA that has been very helpful in the process that I have never been through before and understanding as a single father I don’t have a lot of time to do everything and still keep the bill’s paid after loosing a job after the storm. It’s now December 12th. And my house is not livable. Does UPC plan on paying anything before the holidays for everything that has been paid in cash out of pocket for a policy that they are NOT STANDING BY!!!! How is that not a criminal charge!!! That is theft and I hope you guys have a great Christmas and look at all your kids opening their gifts and knowing how many kids out there don’t get to do the same thing because of what you guys are doing!
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