Atlas will offer insurance premium finance services to customers with annual homeowners insurance premiums of at least $1,000. Premium finance services will be available to homeownerspolicyholders insured by UIH's wholly owned subsidiary Universal Property & Casualty Insurance Company (UPCIC), as well as to other homeowners insurance customers across Florida. Approximately 188,000 of UPCIC's 370,000 homeowners insurance policyholders have annual premiums of at least $1,000.
To fund its operations, Atlas has agreed to an initial finance facility of $12 million with Flatiron Capital Corp., a premier funding partner to the commercial property and casualty insurance industry owned by TD Banknorth, N.A. The funding is secured by Atlas' finance contracts. The Company expects that itwill be able to increase its finance facility with Flatiron or secure financing with other parties as conditions require.
Bradley I. Meier, president and chief executive officer, commented, "Atlas Premium Finance Company is positioned to assist Floridians in paying for their homeowners insurance premiums. Atlas will provide premium finance loans for property and casualty coverage as an alternative and flexible way to pay for insurance.
"Our agents have asked for our assistance in funding insurance premiums fortheir clients in response to increased costs of homeowners insurance in Florida," continued Meier. "Through Atlas we will provide a variety of programs, services and technology that will allow our agents and brokers tobetter serve their clients."
Meier concluded, "With the recently completed testing of Atlas' systems, weare now in a position to expand the rollout of this initiative to additional insurance agencies over the next few months."
UIH recently requested the Florida Office of Insurance Regulation's approval of a transaction by which UIH acquired Atlas. Two of UIH's officers previously had purchased Atlas as a dormant premium finance company with no active business. To consolidate insurance-related activities, UIH and its officers transferred Atlasto UIH for considerationequal to Atlas' book value and maintenance costs, subject toFlorida Officeof Insurance Regulation approval.
About Universal Insurance Holdings, Inc.
The Company is a vertically integrated insurance holding company operating solely in the state of Florida. Through its subsidiaries, the Company is currently engaged in insurance underwriting, distribution and claims. Universal Property & Casualty Insurance Company (UPCIC), which generates revenue from the collectionand investment of premiums, is one of the top five leading writers of homeowners insurance in the state of Florida and has aligned itself with well respected service providers in the industry.