Homeowners insurance

Claims severity warning for 2021 Atlantic season amid continued high construction costs

Kingstone, Donegal and The Hanover are among the carriers most likely to be impacted by the ongoing inflation in construction materials that threatens to push up the cost of hurricane claims for a second successive year.

UPC restructures reinsurance and considers Interboro sale

Floridian insurer United Insurance Holdings Corp (UPC Insurance) has significantly lowered first and second event retentions on its core cat programme and revealed it is considering selling New York subsidiary Interboro to free up capital for its growing commercial specialty book.

Home insurtech Kin reportedly in go-public talks with SPAC

Kin is reportedly in talks to combine with special purpose acquisition company (SPAC) Omnichannel Acquisition Corp, in a go-public deal that would value the merged entity at over $1bn, according to Bloomberg.

Citizens and TWIA highlight impact of softer cat bond pricing

If there were already signs of an easier mid-year renewal for US wind-exposed property cat reinsurance programs this year, then commentary from residual insurers in Florida and Texas in the last week has demonstrated the impact of falling prices in the cat bond market.

Metromile/Hippo and Lemonade take different routes to bundling

The announcement that insurtechs Metromile and Hippo are partnering to offer bundled auto and homeowners insurance is in contrast to the expected approach of Lemonade, which recently announced it is to launch an auto insurance product.

Metromile reveals Hippo partnership and Q1 loss ratio improvement

Insurtechs Metromile and Hippo have announced they are partnering to offer consumers bundled auto and homeowners insurance, with Metromile also reporting first quarter results that included a five point improvement in its accident quarter loss ratio.

Florida’s Citizens issues FOTs with pricing up in the mid-single digits

Florida’s fast-growing state-backed insurer Citizens Property Insurance Corporation has put firm order terms (FOTs) to the market this week for its expanded traditional reinsurance placement that are thought to be priced up in the mid-single digits on a risk-adjusted basis, The Insurer can reveal.

Delos secures new Arch capacity to target wildfire-stressed CA insureds

Tech-driven MGA Delos Insurance Solutions has significantly bulked up its California homeowners capacity with the addition of Arch Reinsurance in Bermuda and the group’s Lloyd’s Syndicate 1955 on a reinsurance basis behind its existing paper provider Canopius US Insurance, The Insurer can reveal.

Property insurance and no-fault auto reform bills head to Florida House floor

A property insurance reform bill in Florida’s House of Representatives has cleared its final committee following amendments relating to roofing replacement costs and attorneys’ fees, joining legislation that would reform the state’s no-fault auto insurance system in heading to the House floor.

Insurtech Kin surpasses $100m in annual recurring premium

US homeowners insurtech Kin Insurance has surpassed $100mn in annual recurring premium.

UPC shares fall 11% after Florida reserve charge disclosed

United Insurance Holdings (UPC) investors reacted to $24mn of preannounced pre-tax Q1 cat losses and a $30mn reserve charge for surging Florida homeowners litigation by sending the carrier’s shares down 10.6 percent by the close of trading yesterday.

Florida carriers signal modest uptick in cat fund participation

The take-up of the Florida Hurricane Catastrophe Fund (FHCF) by private insurers is projected to edge up in 2021, with the average coverage level increasing from 85.94 percent of the available limit last year to 86.16 percent.

Demotech issues affirmations but warns several carriers to “markedly improve” results to keep A rating

Demotech has updated on its year-end results review process as it issued further affirmations but warned a total of nine Florida property specialist insurers that they must report “markedly improved” operating results in 2021 and meet other financial metrics to hold onto their A ratings.

Complex winter storm loss bill expected to rise from initial PCS number

Reinsurance sources continue to expect a double-digit billion dollar loss from last month’s winter storm activity, but more clarity finally appears to be emerging around where the ultimate cost to the industry may land.

Florida: Déjà vu with a different outcome?

It is not unusual in early March to be talking about the woes of the Florida specialist homeowners and property insurance marketplace and whether its participants will all still be around by the time it comes to the mid-year reinsurance renewal.

Florida carrier annual statements reveal 2020 pain

With around half of the 40+ specialist Florida homeowners carriers rated by Demotech yet to be affirmed as the ratings agency continues its year-end review, analysis of annual statements by The Insurer reveals worsening pain for underwriters, with aggregate operating losses increasing five-fold.

Upsized Citizens reinsurance shows ill-health of FL homeowners market

Fast-growing Citizens looks to upsize cat cover by 160% to $2.6bn

Florida’s insurer of last resort Citizens is aiming to significantly scale up its private risk transfer program ahead of the 2021 hurricane season from expiring limit of $1.02bn to around $2.6bn across its coastal and personal lines accounts as it addresses an expanding exposure base.

Cat bonds slump in secondary market following Uri

A number of US-focused cat bonds have seen their prices slump in the secondary market last week following concerns that the winter storm Uri increases the likelihood of them being triggered.

FedNat estimates $41mn Uri exposure and confirms $50mn back-up cover

Florida-based homeowners specialist FedNat has said that Winter Storm Uri losses will attach its reinsurance with a retained loss of $41mn as it also confirmed it has purchased a back-up cover in a move first revealed by The Insurer.