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Why Is United Insurance (UIHC) Stock Up 35% Today?


  • United Insurance (UIHC) stock is rising on news from American Coastal Insurance Company.
  • The company’s subsidiary has entered into a reinsurance agreement.
  • This has shares of UIHC stock seeing heavy trading volume today.
UIHC Stock - Why Is United Insurance (UIHC) Stock Up 35% Today?

Source: MIND AND I / Shutterstock.com

United Insurance (NASDAQ:UIHC) stock is taking off on Thursday following news of a memorandum of understanding with American Coastal Insurance Company.

American Coastal Insurance Company is a subsidiary of United Insurance. The memorandum it signed is with the Florida Department of Financial Services, Division of Rehabilitation and Liquidation (DFS).

The point of this agreement is the transfer of United Property & Casualty Insurance Company’s reinsurance recoveries under shared reinsurance agreements. United Property & Casualty Insurance Company is another of United Insurance’s subsidiaries.

With this agreement, DFS has signed off on the transfer of the reinsurance agreements. That includes the future Allocation Agreement for Hurricane Ian losses. These will be paid to the reinsurers or from the reinsurance intermediary to American Coastal Insurance Company.

How This Affects UIHC Stock

Investors are reacting well to this memorandum news today. This has the company’s stock seeing heavy trading on Thursday morning. As of this writing, more than 2.2 million shares of the company’s stock have changed hands. To put that in perspective, the company’s daily average trading volume is closer to 455,000 shares.

One thing investors will keep in mind is United Insurance’s penny stock status. The company’s market capitalization is only about $71.401 million, and its shares closed out trading on Wednesday at $1.65 each. That means it’s open to volatility with any news.

UIHC stock is up 34.5% during pre-market trading on Thursday.

Investors looking for more of the most recent stock market news will want to keep reading!

InvestorPlace is home to all of the hottest stock market coverage traders need to know about on Thursday! That includes the biggest pre-market stock movers this morning, the latest on Tesla (NASDAQ:TSLA), and more. You can find all of that news at the following links!

More Thursday Stock Market News

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Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/04/why-is-united-insurance-uihc-stock-up-35-today/.

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