Source: insurancebusinessmag.com

UPC Insurance is expecting 27,000 to 30,000 claims from hurricane Ian, driving an estimated gross loss of $1 billion.

UPC updated that third quarter losses from Ian are approximately $36.4 million before income taxes and net of reinsurance recoveries. This includes a net retention of $16.4 million, with approximately $7.4 million attributable to the personal lines business, United P&C, and $9 million to American Coastal Insurance Company, in addition to a $20 million retention by its captive reinsurer, UPC Re.

To date, it has received 19,000 claims from the event. The business said it also expects to incur around $16 million of reinstatement premium, to be amortized over the “remaining duration” of its core catastrophe reinsurance program, which is set to expire on May 31, 2023.

“Hurricane Ian was a devastating storm, and our primary focus today is on servicing our policyholders,” said UPC president and chief financial officer Brad Martz. “There is a very high degree of uncertainty regarding the long-term economic implications of this event for our company, and the entire industry.”