HCI Group, Inc. completed the acquisition of Personal Lines Insurance Business of United Property and Casualty Insurance Company, Inc.
January 17, 2021
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HCI Group, Inc. (NYSE:HCI) reached an agreement in principle to acquire Personal Lines Insurance Business of United Property and Casualty Insurance Company, Inc. for $8.3 million on December 17, 2020. HCI Group, Inc. entered into an agreement in principle to acquire Personal Lines Insurance Business of United Property and Casualty Insurance Company, Inc. on January 18, 2021. As part of the transaction, HCI will provide United 100,000 shares of HCI common stock. HCI will also pay United a cash payment of up to $3.1 million depending on the amount of premium transitioned to HCI. In connection with the transaction, United will agree not to compete with HCI for the issuance of personal lines for homeowners business in the four states until July 1, 2024. Under the terms of the transaction, HCI will provide 69.5% quota share reinsurance on United Property and Casualty Insurance’s in-force, new and renewal policies in Connecticut, Massachusetts, New Jersey and Rhode Island for the period December 31, 2020 through May 31, 2021. The transaction is subject to negotiation of definitive agreements and customary closing conditions, including receipt of all applicable regulatory approvals, third party approvals and the listing of consideration shares issued to the seller on NYSE. Raymond James is acting as financial advisor and Debevoise & Plimpton LLP is acting as legal advisor to United Insurance Holdings. Foley & Lardner LLP is acting as legal advisor to HCI.
HCI Group, Inc. (NYSE:HCI) completed the acquisition of Personal Lines Insurance Business of United Property and Casualty Insurance Company, Inc. on January 18, 2021. As of June 1, 2021 United Property & Casualty Insurance Company entered into a new Quota Share Reinsurance Agreement with HPC and Typtap insurance Company through May 31, 2022. The Quota Share Reinsurance Agreement cedes 100% of UPC’s in-force, new and renewal policies in the states of Connecticut, New Jersey, Massachusetts, and Rhode Island. The cession is 50% to HPC and 50% to TypTap, with both companies paying UPC a ceding commission of 24% of the direct written premium.
HCI Group, Inc. is engaged in property and casualty insurance, information technology services, insurance management, real estate and reinsurance. The Companyâs segments include HCPCI insurance operations, TypTap Group, real estate operations, and corporate and other. HCPCI insurance operations segment includes property and casualty insurance, which provides various forms of residential insurance products such as homeowners insurance, fire insurance, flood insurance and wind-only insurance to homeowners, condominium owners and tenants, and reinsurance and other auxiliary operations, which operates through its subsidiary, Claddaugh Casualty Insurance Company Ltd. TypTap Group segment is engaged in the property and casualty insurance business, focusing on standalone flood and homeowners multi-peril policies, and is uses internally developed technology to collect and analyze claims and other supplemental data to generate savings and efficiency for its insurance operations.
HCI GROUP, INC. 
