HCI Group to Receive Insurance policy Business in Four Northeast States from United Insurance plan Holdings …

TAMPA, Fla., Dec. 17, 2020 (Globe NEWSWIRE) — HCI Group, Inc. (NYSE: HCI), an InsurTech business with functions in coverage, application growth and true estate, and United Insurance plan Keeping Corp. (NASDAQ: UIHC) have reached an arrangement in theory for United’s key insurance subsidiary, United Property & Casualty Insurance policies Company, to transfer all its particular traces insurance policies business enterprise in the states of Connecticut, New Jersey, Massachusetts and Rhode Island to HCI. The business enterprise to be transferred signifies close to $130 million of yearly premiums. HCI’s insurance plan functions are generally in Florida. Having said that, it just lately declared programs to grow nationwide.

Less than the agreement, HCI will deliver 69.5% quota share reinsurance on all of United’s in-force, new and renewal guidelines in Connecticut, Massachusetts, New Jersey, and Rhode Island from December 31, 2020 by Could 31, 2021. In trade, HCI will pay out United an allowance of $4.4 million in the direction of by now procured catastrophe reinsurance and a provisional ceding fee of 25% of quality. That percentage could maximize up to 31.5% dependent on the direct decline ratio effects for the reinsured company.

In addition, United and HCI will enter into a coverage substitution settlement pursuant to which HCI will exchange all of United’s personal traces guidelines in the four states. As portion of the transaction, HCI will supply United 100,000 shares of HCI common inventory. HCI will also spend United a dollars payment of up to $3.1 million relying on the sum of premium transitioned to HCI. In connection with the transaction, United will concur not to contend with HCI for the issuance of personal strains for property owners business in the four states right until July 1, 2024.

The transaction is subject matter to negotiation of definitive agreements and customary closing conditions, which include receipt of all relevant regulatory approvals.

“This transaction with United is a earn for both of those HCI and United,” explained HCI Team Chairman and Chief Government Officer Paresh Patel. “It accelerates HCI’s approach to broaden nationally by getting a seasoned ebook of company, founded agent network and associated information. HCI has the economical toughness to aid and expand these new business alternatives.”

About HCI Team, Inc.
HCI Team, Inc. is an InsurTech firm with operations in insurance policies, software improvement and serious estate. HCI’s leading insurance plan operation, TypTap Insurance policies Company, is a promptly growing, technological know-how-pushed insurance policy corporation, which presents homeowners’ insurance policy and flood insurance policies largely in Florida. TypTap’s operations are run in massive section by insurance policy-related details know-how formulated by HCI’s application subsidiary, Exzeo United states, Inc. HCI’s most significant subsidiary, House owners Preference Assets & Casualty Insurance coverage Enterprise, Inc., presents homeowners’ insurance policies primarily in Florida. HCI’s actual estate subsidiary, Greenleaf Cash, LLC, owns and operates a number of properties in Florida, such as office buildings, retail centers and marinas.

The company’s typical shares trade on the New York Stock Trade less than the ticker image “HCI” and are bundled in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. consistently publishes fiscal and other information and facts in the Investor Info area of the company’s website. For much more information about HCI Group and its subsidiaries, take a look at www.hcigroup.com.

Forward-Wanting Statements
This news release may well consist of forward-seeking statements manufactured pursuant to the Private Securities Litigation Reform Act of 1995. Terms these kinds of as “anticipate,” “estimate,” “expect,” “intend,” “plan,” “confident,” “prospects” and “project” and other equivalent words and phrases and expressions are meant to signify ahead-searching statements. Ahead-searching statements are not assures of future outcomes and problems, but somewhat are subject to a variety of challenges and uncertainties. For example, there can be no assurance that insurance policy regulators will allow HCI to operate in the relevant states and approve the proposed conditions of the transaction. Some of these dangers and uncertainties are discovered in the company’s filings with the Securities and Exchange Fee. Ought to any challenges or uncertainties build into actual occasions, these developments could have substance adverse results on the proposed transaction and HCI’s business enterprise, economical ailment and benefits of functions. HCI Group, Inc. disclaims all obligations to update any ahead-on the lookout statements.

Firm Get in touch with:
Rachel Swansiger, Esq.
HCI Team, Inc.
Tel (813) 405-3206
[email protected]

Investor Relations Contact:
Matt Glover
Gateway Trader Relations
Tel (949) 574-3860
[email protected]

Media Get hold of:
Amber Brinkley
Kippen Communications
Tel (727) 466-7695
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