UNITED INSURANCE HOLDINGS CORP. (UIHC) SPO
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|Company Name||UNITED INSURANCE HOLDINGS CORP.|
|Company Address||800 2ND AVE S
SAINT PETERSBURG, FL 33701
|CEO||John L. Forney|
|Employees (as of 3/15/2017)||167|
|State of Inc||DE|
|Fiscal Year End||12/31|
|Shares Over Alloted||--|
|Shareholder Shares Offered||--|
|Lockup Period (days)||180|
|Quiet Period Expiration||--|
We will describe the use of the net proceeds from the sales of the securities in the applicable prospectus supplement.
Our target market for homeowners' insurance, our primary product offering, includes the 18 states in which we are currently licensed plus the State of Maine where we plan to obtain a license at some point in the future. The following table summarizes the homeowners' insurance market countrywide for the year ending December 31, 2016, the date for which the most current data is available: Countrywide Property Insurance Market - 2016 Homeowners DWP * Direct Written 2016 Rank Company Name Premium Market Share 1 State Farm Group $ 17,613,109 19.3 % 2 Allstate Insurance Group 7,903,530 8.7 % 3 Liberty Mutual Group 6,164,379 6.8 % 4 Farmers Insurance Group 5,515,277 6.0 % 5 USAA Group 5,341,021 5.9 % 6 Travelers Group 3,387,144 3.7 % 7 Nationwide Corp. Group 3,299,236 3.6 % 8 American Family Insurance Group 2,855,835 3.1 % 9 Chubb Ltd. Group 2,697,841 3.0 % 10 Erie Insurance Group 1,538,085 1.7 % 11 Auto Owners Group 1,246,574 1.4 % 12 Metropolitan Group 1,135,803 1.2 % 13 Hartford Fire & Casualty Group 1,113,000 1.2 % 14 American International Group 1,093,643 1.2 % 15 Progressive Group 925,018 1.0 % 16 Universal Insurance Holdings Group 880,902 1.0 % 17 CSAA Insurance Group 874,444 1.0 % 18 Auto Club Enterprises Insurance Group 857,774 0.9 % 19 Amica Mutual Group 777,210 0.9 % 20 Country Insurance & Financial Services Group 672,139 0.7 % 21 AmTrust, NGH Group 668,332 0.7 % 22 United Insurance Holdings Group 627,825 0.7 % 23 Tower Hill Insurance Group 607,919 0.7 % 24 Assurant, Inc. Group 558,206 0.6 % 25 The Hanover Insurance Group 551,336 0.6 % Total - Top 25 Insurers 68,905,582 75.6 % Total - All Insurers $ 91,276,900 100.0 % * The information displayed in the table above is compiled and published by the National Association of Insurance Commissioners (NAIC) as of December 31, 2016 based on information filings submitted annually by all licensed insurance companies. The information above is presented on a consolidated or aggregated basis for each insurance company group. The amounts shown in the table above are also on a statutory basis and exclude non-Homeowners lines of business that are included in the Company's total direct written premium for 2016. We compete primarily on the basis of product features, the strength of our distribution network, high-quality service to our agents and policyholders, and our reputation for long-term financial stability and commitment. Our long and successful track record writing homeowners insurance in catastrophe-exposed areas has enabled us to develop sophisticated pricing techniques that endeavor to accurately reflect the risk of loss while allowing us to be competitive in our target markets. This pricing segmentation approach allows us to offer products in areas that have a high demand for property insurance yet are under-served by the national carriers. We price our product at levels that we project will generate an acceptable underwriting profit. We try to be extremely granular in our approach, so that our price can accurately reflect the risk and profitability of each potential customer. In our pricing algorithm, we consider insurance credit scores (where allowable) and historical attritional loss costs for the rating territory in which the customer resides, as well as projected reinsurance costs based on the specific geographic and structural characteristics of the home. In addition to the specific characteristics of the policy being priced, we also evaluate the reinsurance cost of each incremental policy on our portfolio as a whole. In this regard, we seek to optimize our portfolio by diversifying our geographic exposure in order to limit our probable maximum loss, total insured value and average annual loss. We use the output from third-party modeling software to analyze our risk exposures, including wind exposures, by zip code or street address as part of the optimization process. We have established underwriting guidelines designed to provide a uniform approach to our risk selection and designed to achieve underwriting profitability. Our underwriters review the property inspection report during their risk evaluation and if the policy does not meet our underwriting criteria, we have the right to cancel the policy within 90 days in Florida and within 60 days in other states. We strive to provide excellent service to our independent agents and our policyholders. We continue to enhance our web-based systems which allow our agents to prepare and process new policies and policy changes online and deliver policy declarations quickly. We work with a select group of third party vendors to develop, manage and maintain our information technology systems. This allows us to obtain up-to-date technology at a reasonable cost and to achieve economies of scale without incurring significant fixed-overhead expenses. As agent and consumer behaviors evolve we continue to enhance our technology platforms to offer solutions that meet their needs.
United Insurance Holdings Corp. serves as the holding company for United Property & Casualty Insurance Company and its affiliated companies. Our business is conducted principally through eleven wholly owned subsidiaries: United Property & Casualty Insurance Company, Family Security Insurance
Company, Interboro Insurance Company ("IIC") and American Coastal Insurance Company (our insurance affiliates), United Insurance Management, L.C. (our management affiliate), Skyway Claims Services, LLC (our claims adjusting affiliate), UPC Re, BlueLine Cayman Holdings and Skyway Reinsurance Services, LLC (our reinsurance affiliates), as well as two holding companies, Family Security Holdings, LLC ("FSH") and AmCo Holding Company. Collectively, including United Insurance Holdings Corp., we refer to these entities as “UPC Insurance,” which is the preferred brand identification we have established for our Company. UPC Insurance is primarily engaged in the residential property and casualty insurance business in the United States. We currently write in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina and Texas, and we are licensed to write in Alabama, Delaware, Maryland, Mississippi, New Hampshire and Virginia. Our target market currently consists of areas where the perceived threat of natural catastrophe has caused large national insurance carriers to reduce their concentration of policies. In such areas, we believe an opportunity exists for UPC Insurance to write profitable business. We manage our risk of catastrophic loss primarily through sophisticated underwriting procedures and pricing algorithms, avoidance of policy concentration, and the use of a comprehensive catastrophe reinsurance program. UPC Insurance has been operating continuously since 1999, and has successfully managed its business through various hurricanes, tropical storms, and other weather-related events. We believe our record of successful risk management and experience in writing business in catastrophe-exposed areas provides us with a competitive advantage as we grow our business in other states facing similar perceived threats. --- Our principal executive offices are located at 800 2nd Avenue S, St. Petersburg, Florida 33701, and our telephone number at that location is (727) 895-7737. Our website is www.upcinsurance.com.
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