HCI Group Inc.
06/22/2021 | Press release | Distributed by Public on 06/22/2021 14:32
Material Definitive Agreement (Form 8-K)
Entry into a Material Definitive Agreement
On June 16, 2021, in connection with our ongoing transaction with United Property & Casualty Insurance Company, we entered into a new Quota Share Reinsurance Agreement with United. As part of the transition of policies from United to HCI, we have agreed to provide 100% quota share reinsurance on all of United's in-force, new and renewal policies in the states of Connecticut, New Jersey, Massachusetts and Rhode Island from June 1, 2021 through May 31, 2022. In exchange, we will pay United a ceding commission of 24% of premium.
The agreement represents approximately $120 million of annual premiums, which will be divided equally between our insurance subsidiaries, Homeowners Choice Property & Casualty Insurance Company, Inc. and TypTap Insurance Company.