UIHC - United Insurance reports Q2 estimated losses consolidates Florida-based insurers

• United Insurance ( NASDAQ: UIHC ) on Tuesday reported estimated losses incurred in Q2 and said it consolidated its 4 Florida-based insurers into 2.
• UIHC expects current year catastrophe losses incurred for Q2 of ~$21M before income taxes (~$17M after tax), net of expected reinsurance recoveries.
• UIHC estimates adverse development on prior year losses incurred for Q2 of ~$8M before income taxes (~$6M after tax), net of expected reinsurance recoveries.
• UIHC's cumulative loss position led to the need for a valuation allowance on its deferred tax assets.
• UIHC estimates Q2 valuation allowance to be ~$59M, which will decrease net earnings by ~$44M.
• Under its reorganization plan, UIHC merged Family Security Insurance into United Property & Casualty Insurance, with United Property being the surviving entity, effective May 31.
• UIHC merged Journey Insurance into American Coastal Insurance, with American Coastal being the surviving entity, effective Jun. 1.
• As part of the merger, $30M of Journey's capital was redistributed to United Property.
• Earlier this month, UIHC had initiated a review of strategic and capital raising alternatives .

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