Another One Bites The Dust: United P&C To Quit Florida, Louisiana, Texas And NY Homeowners Markets

St. Petersburg-based United Property & Casualty Insurance (United P&C) has filed plans to withdraw operations in Florida, Louisiana and Texas and intends to file a plan of withdrawal in New York, its parent company United Insurance Holdings Corp. (UPC) announced Thursday.

United P&C had its financial stability rating downgraded by Demotech from an "A" exceptional to an "M" moderate on August 1, and now said they received notice that their rating is going to be dropped altogether.

"Due to significant uncertainty around the future availability of reinsurance for our personal lines business, I believe placing United P&C into an orderly run-off is prudent and necessary to protect the Company and its policyholders. The Company is actively pursuing opportunities to leverage our people, technology, and other capabilities. Our commercial business continues to perform well and provides the Company a stable platform to build new engines of growth and profitability,’ Dan Peed, Chairman & CEO said in the release.

The company stated that they have received approval to withdraw in Louisiana, but are still pending in Florida and Texas.

A study by Guy Fraker called ’Florida’s P&C Insurance Market: Spiraling Toward Collapse’, commissioned by the Senate Banking and Insurance Committee, found that UPC was one of the top companies for the largest net financial losses in 2019.