U.S. Markets closed

United Insurance (UIHC) Keeps a Count of Q3 Catastrophe Loss

Zacks Equity Research
URI vs. SSD: Which Stock Is the Better Value Option?

United Insurance Holdings Corp. UIHC recently announced an estimate of $83 million third-quarter catastrophe loss before income taxes or $54 million after tax net of expected reinsurance recoveries. Estimates include loss caused by hurricanes Harvey and Irma.

The company calculates loss of about $300-$600 million before reinsurance recoveries and income taxes stemming from the tropical storms.

United Insurance’s catastrophe excess of loss reinsurance restricted retained losses to $81 million with quota share reinsurance further lowered to $73 million.
Blueline Re, a wholly owned subsidiary of United Insurance, has a separate reinsurance program for its commercial excess and surplus lines property business. It expects $5 million retention for each hurricane, thereby taking the tally to $83 million in combined group pre-tax retained losses.

Banking on a strong capital structure and reinsurance program, United Insurance has at least $2.2 billion of reinsurance remaining to counter weather events.

Being a property and casualty insurer, United Insurance will not escape the economic slump caused by these catastrophe events. Last quarter, the company incurred $21.8 million in catastrophe loss, contracting the combined ratio by 1040 basis points.

The Zacks Consensus Estimate for the third quarter is currently pegged at 2 cents per share, reflecting a year-over-year plunge of 87.5%. We expect the estimates to move downward as analysts incorporate the catastrophic loss impact.

Recently, Assurant Inc. AIZ has estimated between $134 million and $140 million pre-tax of reportable catastrophe losses from Harvey and expects gross losses from Irma to exceed its retention of $125 million pre-tax. The Travelers Companies, Inc. TRV reckons pre-tax catastrophe loss from Harvey between $375 million and $750 million or the after-tax one between $245 million and $490 million. HCI Group, Inc. HCI has calculated possible losses between $100 million and $300 million due to Irma.

4 Stocks to Watch after the Massive Equifax Hack

Cybersecurity stocks spiked on recent news of a data breach affecting 143 million Americans. But which stocks are the best buy candidates right now? And what does the future hold for the cybersecurity industry?

Equifax is just the most recent victim. Computer hacking and identity theft are more common than ever. Zacks has just released Cybersecurity! An Investor’s Guide to inform Zacks.com readers about this $170 billion/year space. More importantly, it highlights 4 cybersecurity picks with strong profit potential.

Get the new Investing Guide now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Assurant, Inc. (AIZ) : Free Stock Analysis Report
The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report
HCI Group, Inc. (HCI) : Free Stock Analysis Report
United Insurance Holdings Corp. (UIHC) : Free Stock Analysis Report
To read this article on Zacks.com click here.