TAMPA, Florida, December 16, 2021 (GLOBE NEWSWIRE) – HCI Group, Inc. (NYSE: HCI), a holding company active in the areas of home insurance, IT services, reinsurance and real estate, has entered into an agreement in principle with United Insurance Holdings Corp. (NASDAQ: UIHC) to transfer all of United’s personal lines insurance business in the states of Georgia, North Carolina and South Carolina to HCI. The company to be transitioned represents approximately $ 90 million in annual bonuses.
Under the agreement, HCI will provide 85% quota share reinsurance on all in-force, new and renewed policies of United in Georgia, North Carolina and South Carolina from December 31, 2021 to May 31, 2022. In return, HCI will pay United a provisional commission of 25% of earned premiums and this percentage could increase up to 32% depending on the results of the direct loss ratio for reinsured business. HCI will also pay United a catastrophe indemnity equal to 9% of the premium earned.
As part of the transaction, HCI will pay United a 6% renewal rights assignment fee, with a portion of the assignment fee prepaid. As part of the transaction, United agrees not to compete with HCI for the issuance of personal lines to business owners in the tri-state until July 1, 2025.
The transaction is subject to negotiation of definitive agreements and customary closing conditions, including receipt of all applicable regulatory approvals.
âThis transaction provides another great opportunity for HCI,â said Paresh Patel, Chairman and CEO of HCI Group. âHCI is expanding its relationship with United following a successful transaction in the Northeast. This latest agreement further accelerates HCI toward its growth ambitions, expands the company’s presence in existing and new states, and brings an established agent network. HCI has the financial strength to support and develop these new business opportunities.
About HCI Group, Inc.
HCI Group, Inc. has subsidiaries engaged in diverse but complementary business activities, including home insurance, reinsurance, real estate, and IT services. HCI’s primary insurance business, TypTap Insurance Company, is a fast growing, technology-driven insurance company expanding nationwide to provide homeowner and flood insurance. TypTap’s operations are powered in large part by insurance-related information technology developed by HCI’s software subsidiary, Exzeo USA, Inc. HCI’s largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc. ., provides homeowners insurance primarily in Florida. HCI’s real estate subsidiary, Greenleaf Capital, LLC, owns and operates several properties in Florida, including office buildings, shopping malls and marinas.
The company’s common stock trades on the New York Stock Exchange under the ticker symbol “HCI” and is included in the Russell 2000 and S&P SmallCap 600 indices. HCI Group, Inc. regularly publishes financial and other information in the News section. for investors from the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.
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