United Insurance Holdings has reported a net loss of $316m or $0.03 per diluted share for the third quarter of 2010, compared to a net loss of $734m or $0.07 per diluted share, for the same quarter last year.
Gross premiums written for the third quarter of 2010 were $36m, compared to $33m in the same quarter last year, primarily due to the assumption of policies from Sunshine State Insurance Company.
Total revenues for the third quarter of 2010 were $19m, compared to $20m for the corresponding period of 2009.
For the first nine months of 2010, United reported a net loss of $3.8m, or $0.36 per diluted share, compared to generating net income of $5.2m, or $0.50 per diluted share, for the same period last year.
United Insurance Holdings CEO Don Cronin said, though the sharp increase in reinsurance costs affected United's short-term profitability, the company exects that the rate increases will allow United to remain on solid financial footing and adapt to a changing insurance market.
"We have continued to redistribute and reduce our risk exposure by writing new policies in less reinsurance sensitive territories of Florida and by expanding into South Carolina. We have limited growth in total insured value through September 30 in order to reduce reinsurance costs," Cronin said.
In addition, United is in varying stages of discussion with state regulatory authorities to write property insurance in Massachusetts, Connecticut, Rhode Island, New York, North Carolina and New Jersey.