uihc-20210804
FALSE000140152100014015212021-05-052021-05-0500014015212021-08-042021-08-04

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 4, 2021

UNITED INSURANCE HOLDINGS CORP.
(Exact name of registrant as specified in its charter)
Delaware001-3576175-3241967
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
800 2nd Avenue S.33701
Saint Petersburg,FL
(Address of principal executive offices)(Zip Code)
(727)895-7737
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common stock, $0.0001 par value per shareUIHCNasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition

On August 4, 2021, United Insurance Holdings Corp. (the Company, we, our) issued a press release relating to our earnings for the second quarter ended June 30, 2021 (the Earnings Release). We have attached a copy of the Earnings Release as Exhibit 99.1.

Item 7.01: Regulation FD Disclosure.
The executive officers of the Company intend to use the materials filed herewith, in whole or in part, in one or more meetings with investors and analysts, beginning on August 4, 2021. A copy of the investor presentation is attached hereto as Exhibit 99.2.

The information furnished under this Item 2.02 and 7.01, including Exhibit 99.1 and Exhibit 99.2 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference to such filing.

Item 9.01. Financial Statements and Exhibits
Exhibit
No.		 Description
     Earnings release issued by the Company on August 4, 2021
Investor presentation issued by the Company on August 4, 2021
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized.
    
  UNITED INSURANCE HOLDINGS CORP.
August 4, 2021By:/s/ B. Bradford Martz
  B. Bradford Martz, President and Chief Financial Officer
(principal financial officer and principal accounting officer)



Exhibit 99.1
uhiclogorta21.gif

FOR IMMEDIATE RELEASE
 
UNITED INSURANCE HOLDINGS CORP. REPORTS FINANCIAL RESULTS
FOR ITS SECOND QUARTER ENDED JUNE 30, 2021
 
Company to Host Quarterly Conference Call at 5:00 P.M. ET on August 4, 2021
The information in this press release should be read in conjunction with an investor presentation that is available on our website at investors.upcinsurance.com/Presentations.
 
St. Petersburg, FL - August 4, 2021: United Insurance Holdings Corp. (Nasdaq: UIHC) (UPC Insurance or the Company), a property and casualty insurance holding company, today reported its financial results for the second quarter ended June 30, 2021.
($ in thousands, except for per share data)Three Months EndedSix Months Ended
June 30,June 30,
20212020Change20212020Change
Gross premiums written$426,424 $439,651 (3.0)%$738,062 $774,834 (4.7)%
Gross premiums earned$356,433 $344,139 3.6 %$713,096 $688,758 3.5 %
Net premiums earned$145,460 $185,482 (21.6)%$291,409 $377,078 (22.7)%
Total revenues$155,454 $216,397 (28.2)%$317,243 $392,701 (19.2)%
Earnings (loss) before income tax$(32,773)$29,482 NM$(59,055)$13,678 NM
Net income (loss) attributable to UIHC$(23,510)$24,274 NM$(41,281)$11,551 NM
Net income (loss) available to UIHC common stockholders per diluted share$(0.55)$0.56 NM$(0.96)$0.27 NM
Reconciliation of net income (loss) to core income (loss):
Plus: Non-cash amortization of intangible assets$889 $1,044 (14.8)%$1,932 $2,181 (11.4)%
Less: Net realized gains (losses) on investment portfolio$(124)$59 NM$379 $(9)NM
Less: Unrealized gains (losses) on equity securities$2,438 $20,552 (88.1)%$5,002 $(5,904)NM
Less: Net tax impact (1)
$(299)$(4,109)92.7 %$(724)$1,700 NM
Core income (loss) (2)
$(24,636)$8,816 NM$(44,006)$17,945 NM
Core income (loss) per diluted share (2)
$(0.57)$0.20 NM$(1.03)$0.42 NM
Book value per share$7.85 $12.27 (36.0)%
NM = Not Meaningful
(1) In order to reconcile net income (loss) to the core income (loss) measures, we included the tax impact of all adjustments using the 21% corporate federal tax rate.
(2) Core income (loss), and core income (loss) per diluted share, both of which are measures that are not based on GAAP, are reconciled above to net income (loss) and net income (loss) per diluted share, respectively, the most directly comparable GAAP measures. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.

“The second quarter results reflect execution of our ongoing 2021 transition plan, in which we pivot to dramatically reduced named and non-named catastrophe retentions and increased quota share reinsurance protection,” said Dan Peed, CEO of UPC Insurance. “These all drive a significant increase in reinsurance spend, which reduces our margin during transition, but is priced into the portfolio going forward.”

1
Exhibit 99.1
“We continue to stay focused on the steps necessary to achieve a strong underwriting profit and reduced volatility from both our commercial and personal lines businesses, including compounding rate increases, adequate reserving, exposure management and enhanced risk selection.”

Return on Equity and Core Return on Equity

The calculations of the Company's return on equity and core return on equity are shown below.
($ in thousands)Three Months EndedSix Months Ended
June 30,June 30,
2021202020212020
Net income (loss) attributable to UIHC$(23,510)$24,274 $(41,281)$11,551 
Return on equity based on GAAP net income (loss) attributable to UIHC (1)
(23.3)%18.8 %(20.5)%4.5 %
Core income (loss)$(24,636)$8,816 $(44,006)$17,945 
Core return on equity (1)(2)
(24.4)%6.8 %(21.8)%6.9 %
(1) Return on equity for the three and six months ended June 30, 2021 and 2020 is calculated on an annualized basis by dividing the net income (loss) or core income (loss) for the period by the average stockholders' equity for the trailing twelve months.
(2) Core return on equity, a measure that is not based on GAAP, is calculated based on core income (loss), which is reconciled on the first page of this press release to net income (loss), the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.

Combined Ratio and Underlying Ratio

The calculations of the Company's combined ratio and underlying combined ratio are shown below.
($ in thousands)Three Months EndedSix Months Ended
June 30,June 30,
20212020Change20212020Change
Loss ratio, net(1)
81.2 %54.8 %26.4  pts80.2 %54.2 %26.0  pts
Expense ratio, net(2)
46.7 %44.6 %2.1  pts47.3 %45.0 %2.3  pts
Combined ratio (CR)(3)
127.9 %99.4 %28.5  pts127.5 %99.2 %28.3  pts
Effect of current year catastrophe losses on CR27.7 %16.1 %11.6  pts22.0 %12.4 %9.6  pts
Effect of prior year unfavorable (favorable) development on CR(0.3)%(0.4)%0.1  pts10.1 %(0.5)%10.6  pts
Underlying combined ratio(4)
100.5 %83.7 %16.8  pts95.4 %87.3 %8.1  pts
(1) Loss ratio, net is calculated as losses and loss adjustment expenses (LAE), net of losses ceded to reinsurers, relative to net premiums earned.
(2) Expense ratio, net is calculated as the sum of all operating expenses less interest expense relative to net premiums earned.
(3) Combined ratio is the sum of the loss ratio, net and expense ratio, net.
(4) Underlying combined ratio, a measure that is not based on GAAP, is reconciled above to the combined ratio, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.


















2
Exhibit 99.1

Quarterly Financial Results
Net loss attributable to the Company for the second quarter of 2021 was $23.5 million, or $0.55 per diluted share, compared to net income of $24.3 million, or $0.56 per diluted share, for the second quarter of 2020. The change in earnings was primarily driven by a decrease in revenue during the second quarter of 2021 compared to the second quarter of 2020. This change was driven by an increase in ceded premiums earned as a result of changes made to the Company's reinsurance structure at December 31, 2020 and June 1, 2021. Details of these changes are outlined in our reinsurance costs discussion below. Additionally, the Company experienced a decrease in gross written premiums as described below. The Company also experienced a large unrealized gain on equity securities during the second quarter of 2020 as the market recovered from the large decline caused by COVID-19 in the first quarter of 2020. The Company's equity portfolio is smaller now than it was in the second quarter of 2020, resulting in less volatility in the Company's unrealized position on these holdings. The Company also experienced increased loss & LAE incurred in the second quarter of 2021, driven by increased current year catastrophe losses incurred.

The Company's total gross written premium decreased by $13.2 million, or 3.0%, to $426.4 million for the second quarter of 2021, from $439.7 million for the second quarter of 2020. This decrease was driven primarily by a decrease in assumed premiums due to the termination of a contract which included commercial property business assumed from unaffiliated insurers. In addition, the Company has experienced decreases in written premiums across the personal lines business, due to underwriting actions taken by the Company at the end of 2020. The Company's commercial written premiums have increased year over year, offsetting the personal lines decrease in Florida, resulting in a net increase for the region. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums by region and gross written premium by line of business are shown in the table below.
($ in thousands)Three Months Ended
 June 30,
20212020Change $Change %
Direct Written and Assumed Premium by Region (1)
Florida $281,728 $263,108 $18,620 7.1 %
Gulf67,290 74,083 (6,793)(9.2)
Northeast49,879 55,189 (5,310)(9.6)
Southeast27,483 35,206 (7,723)(21.9)
Total direct written premium by region426,380 427,586 (1,206)(0.3)
Assumed premium (2)
44 12,065 (12,021)(99.6)
Total gross written premium by region$426,424 $439,651 $(13,227)(3.0)%
Gross Written Premium by Line of Business
Personal property$270,442 $307,965 $(37,523)(12.2)%
Commercial property155,982 131,686 24,296 18.4 
Total gross written premium by line of business$426,424 $439,651 $(13,227)(3.0)%
(1) "Gulf" is comprised of Louisiana and Texas in 2021 and Hawaii, Louisiana, and Texas in 2020; "Northeast" is comprised of Connecticut, Massachusetts, New Jersey, New York and Rhode Island; and "Southeast" is comprised of Georgia, North Carolina and South Carolina.
(2) Assumed premium written for 2021 and 2020 primarily included commercial property business assumed from unaffiliated insurers.


Loss and LAE increased by $16.4 million, or 16.1%, to $118.1 million for the second quarter of 2021, from $101.7 million for the second quarter of 2020. Loss and LAE expense as a percentage of net earned premiums increased 26.4 points to 81.2% for the second quarter of 2021, compared to 54.8% for the second quarter of 2020. Excluding catastrophe losses and reserve development, the Company's gross underlying loss and LAE ratio for the second quarter of 2021 would have been 21.9%, an increase of 0.8 points from 21.1% during the second quarter of 2020.

Policy acquisition costs decreased by $11.3 million, or 21.5%, to $41.3 million for the second quarter of 2021, from $52.6 million for the second quarter of 2020 primarily due to an increase in ceding commission income related to the Company's quota share reinsurance agreements. In addition, there was a decrease in the Company's assumed ceding commission expense due to the termination of the contract which included commercial property business assumed from unaffiliated insurers. This was partially offset by increased external management fees incurred during the second quarter of 2021 as a result of an increased volume of commercial written premium.

3
Exhibit 99.1
Operating and underwriting expenses remained relatively flat, decreasing by $0.5 million, or 3.6%, to $13.5 million for the second quarter of 2021, from $14.0 million for the second quarter of 2020

General and administrative expenses decreased by $3.0 million, or 18.6%, to $13.1 million for the second quarter of 2021, from $16.1 million for the second quarter of 2020, primarily due to an increase in the allocation of claims adjuster payroll related costs to loss & LAE from general and administrative expenses in 2021.

Combined Ratio Analysis

The calculations of the Company's loss ratios and underlying loss ratios are shown below.
($ in thousands)Three Months EndedSix Months Ended
June 30,June 30,
20212020Change20212020Change
Loss and LAE$118,064 $101,693 $16,371 $233,845 $204,530 $29,315 
% of Gross earned premiums33.1 %29.5 %3.6  pts32.8 %29.7 %3.1  pts
% of Net earned premiums81.2 %54.8 %26.4  pts80.2 %54.2 %26.0  pts
Less:
Current year catastrophe losses$40,257 $29,799 $10,458 $64,222 $46,917 $17,305 
Prior year reserve unfavorable (favorable) development(372)(823)451 29,397 (1,952)31,349 
Underlying loss and LAE (1)
$78,179 $72,717 $5,462 $140,226 $159,565 $(19,339)
% of Gross earned premiums21.9 %21.1 %0.8  pts19.7 %23.2 %(3.5) pts
% of Net earned premiums53.7 %39.2 %14.5  pts48.1 %42.3 %5.8  pts
(1) Underlying loss and LAE is a non-GAAP financial measure and is reconciled above to loss and LAE, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.

The calculations of the Company's expense ratios are shown below.
($ in thousands)Three Months EndedSix Months Ended
June 30,June 30,
20212020Change20212020Change
Policy acquisition costs$41,327 $52,573 $(11,246)$82,148 $111,448 $(29,300)
Operating and underwriting13,482 13,977 (495)26,704 23,681 3,023 
General and administrative13,112 16,121 (3,009)28,994 34,422 (5,428)
Total Operating Expenses$67,921 $82,671 $(14,750)$137,846 $169,551 $(31,705)
% of Gross earned premiums
19.1 %24.0 %(4.9) pts19.3 %24.6 %(5.3) pts
% of Net earned premiums
46.7 %44.6 %2.1  pts47.3 %45.0 %2.3  pts

Reinsurance Costs as a Percentage of Gross Earned Premium

Reinsurance costs as a percentage of gross earned premium for the three months ended June 30, 2021 and 2020 were as follows:
20212020
Non-at-Risk(2.0)%(2.6)%
Quota Share(25.6)%(13.0)%
All Other(31.6)%(30.5)%
Total Ceding Ratio(59.2)%(46.1)%

The increase in this ratio was driven by multiple modifications made to the Company's existing quota share agreements effective December 31, 2020 and June 1, 2021. These modifications include extending coverage to include American Coastal Insurance Company on the 15% quota share agreement, as well as increasing the cession percentage by 8%. In addition, the Company entered into a quota share agreement with Homeowners
4
Exhibit 99.1
Choice Property & Casualty Insurance Company, Inc. (HCP) effective December 31, 2020 through May 31, 2021, which provided 69.5% reinsurance coverage on in-force, new and renewal policies in Connecticut, Massachusetts, New Jersey, and Rhode Island.

Effective June 1, 2021, the Company entered into a new quota share reinsurance agreement with HCP and TypTap Insurance Company (Typtap), which provides 100% reinsurance coverage on in-force, new and renewal policies in Connecticut, Massachusetts, New Jersey, and Rhode Island. The cession of these policies is 50% to HCP and 50% to Typtap. Finally, the Company's 7.5% quota share agreement effective in 2020 expired on May 31, 2021 and was not renewed.

In addition to the changes in the Company's quota share agreements, the Company also reduced the retention amounts related to their catastrophe excess of loss reinsurance program for the 2021-2022 season, resulting in higher ceded premiums year over year but less risk if the named storm season is as active as the 2020-2021 season. Combined with increased costs associated with the all other perils catastrophe agreement, these modifications have resulted in increases to the Company's ceding ratio quarter over quarter.
Investment Portfolio Highlights

The Company's cash, restricted cash and investment holdings remained consistent at $1.3 billion at December 31, 2020 and June 30, 2021. The Company's cash and investment holdings consist of investments in U.S. government and agency securities, corporate debt and 100% investment grade money market instruments. Fixed maturities represented approximately 90.2% of total investments at June 30, 2021, compared to 94.5% at December 31, 2020. At June 30, 2021, our fixed maturity investments had a modified duration of 4.3 years, compared to 4.1 years at December 31, 2020.

Book Value Analysis

Book value per common share decreased 14.6% from $9.19 at December 31, 2020, to $7.85 at June 30, 2021. Underlying book value per common share decreased 12.2% from $8.96 at December 31, 2020 to $7.87 at June 30, 2021. A decrease in the Company's retained earnings as the result of a net loss in the first half of 2021 drove the decrease in our book value per share. As shown in the table below, removing the effect of AOCI increases the Company's book value per common share, as the Company experienced unfavorable market conditions for the six months ended June 30, 2021.
($ in thousands, except for share and per share data)June 30, 2021December 31, 2020
Book Value per Share
Numerator:
Common stockholders' equity attributable to UIHC$339,333 $395,753 
Denominator:
Total Shares Outstanding43,227,957 43,075,877 
Book Value Per Common Share$7.85 $9.19 
Book Value per Share, Excluding the Impact of Accumulated Other Comprehensive Income (AOCI)
Numerator:
Common stockholders' equity attributable to UIHC$339,333 $395,753 
Less: Accumulated other comprehensive income (loss)(662)9,693 
Stockholders' Equity, excluding AOCI$339,995 $386,060 
Denominator:
Total Shares Outstanding43,227,957 43,075,877 
Underlying Book Value Per Common Share(1)
$7.87 $8.96 
(1) Underlying book value per common share is a non-GAAP financial measure and is reconciled above to book value per common share, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.



5
Exhibit 99.1
Definitions of Non-GAAP Measures

The Company believes that investors' understanding of UPC Insurance's performance is enhanced by the Company's disclosure of the following non-GAAP measures. The Company's methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Net income (loss) excluding the effects of amortization of intangible assets, realized gains (losses) and unrealized gains (losses) on equity securities, net of tax (core income (loss)) is a non-GAAP measure that is computed by adding amortization, net of tax, to net income and subtracting realized gains (losses) on the Company's investment portfolio, net of tax, and unrealized gains (losses) on the Company's equity securities, net of tax, from net income. Amortization expense is related to the amortization of intangible assets acquired through mergers and, therefore, the expense does not arise through normal operations. Investment portfolio gains (losses) and unrealized equity security gains (losses) vary independent of the Company's operations. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is net income. The core income measure should not be considered a substitute for net income and does not reflect the overall profitability of the Company's business.

Core return on equity is a non-GAAP ratio calculated using non-GAAP measures. It is calculated by dividing the core income for the period by the average stockholders’ equity for the trailing twelve months (or one quarter of such average, in the case of quarterly periods). Core income is an after-tax non-GAAP measure that is calculated by excluding from net income the effect of non-cash amortization of intangible assets, unrealized gains or losses on the Company's equity security investments and net realized gains or losses on the Company's investment portfolio. In the opinion of the Company’s management, core income, core income per share and core return on equity are meaningful indicators to investors of the Company's underwriting and operating results, since the excluded items are not necessarily indicative of operating trends. Internally, the Company’s management uses core income, core income per share and core return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis. The most directly comparable GAAP measure is return on equity. The core return on equity measure should not be considered a substitute for return on equity and does not reflect the overall profitability of the Company's business.

Combined ratio excluding the effects of current year catastrophe losses and prior year reserve development (underlying combined ratio) is a non-GAAP measure, that is computed by subtracting the effect of current year catastrophe losses and prior year development from the combined ratio. The Company believes that this ratio is useful to investors, and it is used by management to highlight the trends in the Company's business that may be obscured by current year catastrophe losses and prior year development. Current year catastrophe losses cause the Company's loss trends to vary significantly between periods as a result of their frequency of occurrence and severity and can have a significant impact on the combined ratio. Prior year development is caused by unexpected loss development on historical reserves. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of the Company's business.

Net loss and LAE excluding the effects of current year catastrophe losses and prior year reserve development (underlying loss and LAE) is a non-GAAP measure that is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and LAE. The Company uses underlying loss and LAE figures to analyze the Company's loss trends that may be impacted by current year catastrophe losses and prior year development on the Company's reserves. As discussed previously, these two items can have a significant impact on the Company's loss trends in a given period. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is net loss and LAE. The underlying loss and LAE measure should not be considered a substitute for net loss and LAE and does not reflect the overall profitability of the Company's business.





6
Exhibit 99.1
Book value per common share, excluding the impact of accumulated other comprehensive income (underlying book value per common share), is a non-GAAP measure that is computed by dividing common stockholders' equity after excluding accumulated other comprehensive income, by total common shares outstanding plus dilutive potential common shares outstanding. The Company uses the trend in book value per common share, excluding the impact of accumulated other comprehensive income, in conjunction with book value per common share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes this non-GAAP measure is useful to investors because it eliminates the effect of interest rates that can fluctuate significantly from period to period and are generally driven by economic and financial factors that are not influenced by management. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of accumulated other comprehensive income, should not be considered a substitute for book value per common share and does not reflect the recorded net worth of the Company's business.

7
Exhibit 99.1

Conference Call Details

Date and Time:    August 4, 2021 - 5:00 P.M. ET

Participant Dial-In:    (United States): 877-445-9755
    (International): 201-493-6724

Webcast:    To listen to the live webcast, please go to http://investors.upcinsurance.com and click on the conference call link at the top of the page or go to: https://event.webcasts.com/starthere.jsp?ei=1478671&tp_key=73fc5c851a

An archive of the webcast will be available for a limited period of time thereafter.

Presentation:     The information in this press release should be read in conjunction with an investor presentation that is available on our website at investors.upcinsurance.com/Presentations.

About UPC Insurance

Founded in 1999, UPC Insurance is an insurance holding company that sources, writes and services personal and commercial residential property and casualty insurance policies using a group of wholly owned insurance subsidiaries and one majority owned insurance subsidiary through a variety of distribution channels. The Company currently writes policies in Connecticut, Florida, Georgia, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina and Texas. From its headquarters in St. Petersburg, UPC Insurance's team of dedicated professionals manages a completely integrated insurance company, including sales, underwriting, customer service and claims.

Forward-Looking Statements

Statements made in this press release, or on the conference call identified above, and otherwise, that are not historical facts are “forward-looking statements” that anticipate results based on our estimates, assumptions and plans and are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words such as “may,” “will,” “expect,” "endeavor," "project," “believe,” "plan," “anticipate,” “intend,” “could,” “would,” “estimate” or “continue” or the negative variations thereof or comparable terminology. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, we undertake no obligation to update or revise any forward-looking statement.

 ### #### ###
CONTACT:ORINVESTOR RELATIONS:
United Insurance Holdings Corp.The Equity Group
Jessica StrathmanAdam Prior
Deputy CFOSenior Vice-President
(727) 895-7737 / [email protected](212) 836-9606 / [email protected]
8
Exhibit 99.1
Consolidated Statements of Comprehensive Income (loss)
In thousands, except share and per share amounts
Three Months EndedSix Months Ended
June 30,June 30,
2021202020212020
REVENUE:
Gross premiums written$426,424 $439,651 $738,062 $774,834 
Change in gross unearned premiums(69,991)(95,512)(24,966)(86,076)
Gross premiums earned356,433 344,139 713,096 688,758 
Ceded premiums earned(210,973)(158,657)(421,687)(311,680)
Net premiums earned145,460 185,482 291,409 377,078 
Net investment income 3,683 5,907 7,266 12,824 
Net realized investment gains (losses)(124)59 379 (9)
Net unrealized gains (losses) on equity securities2,438 20,552 5,002 (5,904)
Other revenue3,997 4,397 13,187 8,712 
Total revenues$155,454 $216,397 $317,243 $392,701 
EXPENSES:
Losses and loss adjustment expenses118,064 101,693 233,845 204,530 
Policy acquisition costs41,327 52,573 82,148 111,448 
Operating expenses13,482 13,977 26,704 23,681 
General and administrative expenses13,112 16,121 28,994 34,422 
Interest expense2,257 2,565 4,632 4,984 
Total expenses 188,242 186,929 376,323 379,065 
Income (loss) before other income(32,788)29,468 (59,080)13,636 
Other income15 14 25 42 
Income (loss) before income taxes(32,773)29,482 (59,055)13,678 
Provision (benefit) for income taxes(9,352)5,040 (17,174)1,752 
Net income (loss)$(23,421)$24,442 $(41,881)$11,926 
Less: Net income (loss) attributable to noncontrolling interests89 168 (600)375 
Net income (loss) attributable to UIHC$(23,510)$24,274 $(41,281)$11,551 
OTHER COMPREHENSIVE INCOME (LOSS):
Change in net unrealized gains (losses) on investments8,242 28,332 (13,497)24,222 
Reclassification adjustment for net realized investment losses (gains)124 (59)(379)9 
Income tax benefit (expense) related to items of other comprehensive income (loss)(2,012)(6,858)3,364 (5,875)
Total comprehensive income (loss)$(17,067)$45,857 $(52,393)$30,282 
Less: Comprehensive income (loss) attributable to noncontrolling interests160 549 (757)523 
Comprehensive income (loss) attributable to UIHC$(17,227)$45,308 $(51,636)$29,759 
Weighted average shares outstanding
Basic42,950,666 42,860,922 42,924,662 42,833,225 
Diluted42,950,666 43,055,115 42,924,662 43,041,623 
Earnings available to UIHC common stockholders per share
Basic$(0.55)$0.57 $(0.96)$0.27 
Diluted$(0.55)$0.56 $(0.96)$0.27 
Dividends declared per share$0.06 $0.06 $0.12 $0.12 
9
Exhibit 99.1
Consolidated Balance Sheets
In thousands, except share amounts
June 30, 2021December 31, 2020
ASSETS 
Investments, at fair value:  
Fixed maturities, available-for-sale$841,105 $940,011 
Equity securities31,176 7,445 
Other investments60,078 47,595 
Total investments$932,359 $995,051 
Cash and cash equivalents276,382 239,420 
Restricted cash42,791 62,078 
Accrued investment income4,328 4,680 
Property and equipment, net32,490 34,187 
Premiums receivable, net96,665 87,339 
Reinsurance recoverable on paid and unpaid losses927,427 821,156 
Ceded unearned premiums592,974 384,588 
Goodwill73,045 73,045 
Deferred policy acquisition costs86,858 74,414 
Intangible assets, net19,998 21,930 
Other assets63,355 51,053 
Total Assets$3,148,672 $2,848,941 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses$1,136,375 $1,089,966 
Unearned premiums748,904 723,938 
Reinsurance payable on premiums538,217 241,636 
Payments outstanding72,209 77,912 
Accounts payable and accrued expenses70,648 91,173 
Operating lease liability2,159 2,311 
Other liabilities62,584 46,365 
Notes payable, net157,154 158,041 
Total Liabilities$2,788,250 $2,431,342 
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.0001 par value; 1,000,000 authorized; none issued or outstanding— — 
Common stock, $0.0001 par value; 50,000,000 shares authorized; 43,373,346 and 43,250,731 issued, respectively; 43,227,957 and 43,075,877 outstanding, respectively
4 4 
Additional paid-in capital393,524 393,122 
Treasury shares, at cost; 212,083 shares(431)(431)
Accumulated other comprehensive income (loss)(662)9,693 
Retained earnings(53,102)(6,635)
Total stockholders' equity attributable to UIHC stockholders$339,333 $395,753 
Noncontrolling interests21,089 21,846 
Total Stockholders' Equity$360,422 $417,599 
Total Liabilities and Stockholders' Equity$3,148,672 $2,848,941 
10
United Insurance Holdings Corporation (NASDAQ: UIHC) Investor Presentation August 4, 2021

 
Company Overview 2 UPC Insurance is a specialty underwriter of catastrophe exposed property insurance in the U.S. United Insurance Holding Corp. (NASDAQ: UIHC) was founded in 1999 and is the insurance holding company for 5 P&C carriers and operating affiliates operating under the brand UPC Insurance (UPC). UPC has the #1 market share of commercial residential property insurance (commercial lines) in Florida with over 6,000 policies and $391 million of premium in-force. Journey Insurance Company, our AM Best rated carrier formed in partnership with Tokio Marine Kiln, has expanded our commercial underwriting capabilities into Texas and South Carolina and is poised for profitable growth. UPC’s homeowners & fire insurance products (personal lines) are now focused on New York and 6 southeastern coastal states, with roughly 478,000 policies and $870 million of premium in-force. ¹ UIHC as of June 30, 2021 Total Assets: $3.15 billion Total Equity: $339 million Premium in-Force: $1.26 billion ¹ Employees: 477 Headquarters: St. Petersburg, FL Financial Strength Ratings: A- (Kroll) A- (AM Best) ² A (Demotech) 1 Excludes discontinued territories or where renewal rights have been sold 2 AM Best rating for Journey Insurance Company only Specialty Commercial Property Underwriters Specialty Homeowners Underwriters

 
Corporate Strategy 3 We seek to be a top-quartile specialty underwriter of CAT exposed property insurance Innovative Reinsurance Programs & Long- Standing Partnerships Highly Specialized Coastal Underwriter Sophisticated Risk Selection and Exposure Management Proprietary, Scalable Technology to Price & Service Risks Favorable market dynamics including hard market pricing and an improving regulatory backdrop expected to serve as a tailwind to executing our strategy and improving underwriting profitability

 
Q2-2021 Executive Summary 4 Reinsurance Renewal Successful Underwriting Improvements • Lowered retention and added aggregate stop-loss feature for named windstorm • Maintained cascading aggregate structure providing superior 1st event protection • Modest single digit risk-adjusted cost increase captured in rate indications • Adjusting replacement cost estimates to ensure proper insurance-to-value • Florida rate increase of 14.7% effective 7/1 for new and renewal business • Anticipate average rate increase near 20% for Q3 due to overlapping changes Focus on Technology • Created new COO role to lead insurance operations filled by our CIO, Chris Griffith • Skyway Technologies direct-to-consumer platform nearing launch • Legacy policy system conversions to new Agent Connect platform going well 1 2 3 Exposure Management Working • Since 12/31/20, pooled group premium in-force is up +5%, but TIV is down -6% • Portfolio optimization improving model expected loss estimates (PML and AAL) • Targeting risks in the bottom quartile of our underwriting profitability framework 4 We made progress on several initiatives this quarter to reduce volatility and improve results over time

 
Q2-2021 Results 5 Higher reinsurance and loss costs drove the y/y decline in core earnings Q2-21 Q2-20 Change Core income (loss) (24,636)$ 8,816$ -379.5% per diluted share (CEPS) (0.57)$ 0.20$ Included the following items Net current year catastrophe loss & LAE incurred 40,257$ 29,799$ Net (favorable) unfavorable reserve development (372)$ (823)$ Total items 39,885$ 28,976$ Core income (loss) excluding items 6,873$ 13,022$ -47.2% CEPS excluding items 0.16$ 0.30$ Direct Loss & LAE ratio - NonCAT 33.4% 26.3% 7.1 pts Direct Loss & LAE ratio - CAT 25.5% 22.2% 3.3 pts Gross expense ratio 19.1% 24.0% (5.0) pts Net loss & LAE ratio - NonCAT 53.5% 38.8% 14.7 pts Net loss & LAE ratio - CAT 27.7% 16.0% 11.7 pts Net expense ratio 46.7% 44.6% 2.1 pts Combined ratio 127.9% 99.4% 28.5 pts Net current year catastrophe loss & LAE incurred -27.7% -16.1% Net favorable (unfavorable) reserve development 0.3% 0.4% Underlying combined ratio 100.5% 83.7% 16.8 pts

 
Business Mix is Shifting 6 We seek to grow Commercial and reduce Personal lines exposures over the next 3 years $687 $821 $890 $973 $1,064 $21 $220 $362 $407 $393 $708 $1,041 $1,252 $1,380 $1,457 2016 2017 2018 2019 2020 Personal Lines Commercial Lines GPW by Line of Business ($MMs) 20% CAGR 97% / 3% 79% / 21% 71% / 29% 73% / 27%71% / 29% In-force Premium by Region (2) Personal Lines Commercial Lines Products ▪ Homeowners Policy (1) (core to strategy) ▪ Condominium & Dwelling Fire Policies (core to strategy) ▪ Commercial Residential Policy (core to strategy) ▪ E&S Commercial Residential Policy (launch targeted in 2022) Coastal-exposed Markets (2) ▪ Florida (40.4% of GPW) ▪ Gulf (26.4% of GPW) • Southeast (12.8% of GPW) • Northeast (20.3% of GPW) ▪ Florida (98.0% of GPW) ▪ Gulf (1.6% of GPW) ▪ Southeast (0.3% of GPW) Distribution ▪ Strategic Partners ▪ Independent Agents ▪ New Direct to Consumer (DTC / Skyway Technologies) beginning in 2H21 ▪ Unaffiliated Managing General Underwriter (AmRisc) ▪ Other MGU’s, including ICAT and future MGU partners (1) Includes non-core Renters’ policies, which the Company is exiting (2) Data as of 6/30/2021 excluding discontinued territories or where renewal rights have been sold 67% 19% 9% 5% FL Gulf SE NE ~$1.26B

 
Comparison of Personal & Commercial Lines 7 Commercial has consistently outperformed Personal Lines since our 2017 merger with AmCo Personal Lines Key Metrics (2020) Underlying Combined Ratio (1) Combined Ratio Commercial Lines Key Metrics (2020) $1.0B / $564MM GPE / NPE $84MM Underlying U / W Profit (1) 43.0% Underlying Pre-Tax ROE (1) 89.7% Underlying Combined Ratio (1) $390MM / $202MM GPE / NPE $29MM Underlying U / W Profit (1) 42.1% Underlying Pre-Tax ROE (1) 87.1% Underlying Combined Ratio (1) Underlying Combined Ratio (1) Combined Ratio 50% 43% 45% 45% 49% 49% 55% 45% 17% 16% 14% 44% 1% 1% 6% -1% 116% 110% 120% 133% 95% 2017 2018 2019 2020 Target Pricing Expense Ratio NonCAT Loss Ratio CAT Loss Ratio Prior Years' Development Ratio 45% 50% 50% 54% 22% 31% 34% 33% 31% 11% 10% 22% -4% -2% 0% 0% 94% 90% 94% 109% 85% 2017 2018 2019 2020 Target Pricing Expense Ratio NonCAT Loss Ratio CAT Loss Ratio Prior Years' Development Ratio 67% 81% 84% 87% 75% 2017 2018 2019 2020 Target Pricing 99% 92% 100% 90% 85% 2017 2018 2019 2020 Target Pricing CAT 10% NonCAT 45% Exp 40% CAT 10% NonCAT 30% Exp 45% (1) Excludes CAT losses and prior year development

 
Q2-2021 Results by Line of Business 8 Our Specialty Commercial Continues to Perform Well Personal Lines (PL) represents our homeowners’ business and is performing outside of Florida, but Commercial Lines (CL) is what we seek to grow $ in millions PL CL Total Gross Premiums Earned 254.8$ 101.6$ 356.4$ Ceded Premiums Earned (151.8) (59.2) (211.0) Net Premiums Earned 103.1 42.4 145.5 Investment & Other Income 6.4 1.1 7.6 Unrealized G(L) on Equities 2.2 0.2 2.4 Total Revenue 111.7 43.7 155.5 Underlying Loss & LAE 62.5 15.7 78.2 Current year CAT Loss & LAE 37.8 2.4 40.3 Prior year development (0.3) (0.1) (0.4) Total Loss 100.0 18.0 118.1 Operating Expense 47.6 20.3 67.9 Total Expenses (excluding interest) 147.7 38.3 186.0 Core Income (Loss) before tax (39.5)$ 5.3$ (34.2)$ Core Income (Loss) (28.7)$ 4.0$ (24.6)$ Direct Loss Ratio - NonCAT 39.3% 18.6% 33.4% Direct Loss Ratio - CAT (Current AY) 29.3% 10.9% 25.5% Gross Expense Ratio 18.7% 20.0% 19.1% Net Loss Ratio 97.0% 42.5% 81.2% Net Expense Ratio 46.2% 47.8% 46.7% Combined Ratio 143.3% 90.4% 127.9% CAT Loss -36.7% -5.8% -27.7% PY Development F/(U) 0.3% 0.2% 0.3% Underlying Combined Ratio 106.9% 84.8% 100.4%

 
Overview of Challenging Market Conditions 9 Florida is the peak exposure zone in the world for windstorm where we have successfully operated since 1999 32 26 34 38 38 36 29 24 25 29 39 93 103 77 70 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1 1 2 1 1 1 2 3 2 2 4 5 6 8 3 12 7 10 2 6 4 7 10 8 6 13 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Atlantic Hurricanes Hurricanes Significantly Impacting the FL Market Average (7.1) Atlantic Hurricanes(1) Florida Homeowners Direct Incurred Loss Ratios (%) Florida Litigation Trends (3) During the last four years, two of the top ten costliest hurricanes in US history have made landfall in Florida including Hurricanes Irma ($32B(2)/2017) and Michael ($14B(2)/2018) Source: Insurance Information Institute (1) Only accounts for named storms that reached hurricane status (2) Insured losses adjusted for inflation to reflect 2020 dollars (3) From the Florida Office of Insurance Regulation’s analysis of the Florida market, which leverages data from NAIC 20,854 0 5,000 10,000 15,000 20,000 25,000 1Q14 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20 1Q21 Year % of Nationwide Homeowners' Claims Opened in Florida % of Nationwide Homeonwers' Suits Opened in Florida 2016 7.8% 64.4% 2017 16.5% 68.1% 2018 11.9% 79.9% 2019 8.2% 76.5% Social Inflation Driving Growth in Industry Suits Served

 
Higher Net AOP CAT Pressuring Results 10 Reinsurance programs have responded, but exposure management is the long-term solution 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 1H-2016 1H-2017 1H-2018 1H-2019 1H-2020 1H-2021 Gross CAT Loss Ratio Net CAT Loss Ratio Losses ceded to our AOP CAT program have helped manage volatility from non-hurricane CAT events, but exposure reduction is the key to mitigating AOP CAT risk going forward Winter Storm URI and PCS 2125 were the main drivers of the increase in 2021 1H-2016 1H-2017 1H-2018 1H-2019 1H-2020 1H-2021 Events 16 15 17 24 26 26 Gross CAT Loss 32,810$ 36,696$ 54,978$ 79,039$ 97,605$ 194,313$ Gross Event Severity 2,051$ 2,446$ 3,234$ 3,293$ 3,754$ 7,474$ Net CAT Loss 18,776$ 32,410$ 23,657$ 27,459$ 46,917$ 64,222$ Net Event Severity 1,174$ 2,161$ 1,392$ 1,144$ 1,805$ 2,470$ Gross CAT Loss Ratio 10.5% 8.3% 9.7% 12.3% 14.2% 27.2% Net CAT Loss Ratio 8.7% 12.1% 7.0% 7.4% 12.4% 22.0%

 
Material Cost Increases Impacting Losses 11 Supply chain and inflation pressures have contributed to claims severity increases in 2021 Source: Xactimate

 
Our Response Creates a Foundation for Profitable Growth 12 We are well positioned to take advantage of the hard market in CAT exposed property Robust Rate Increases Exposure Management Initiatives Litigation Management & Reform Superior Reinsurance The outlook for UPC’s earnings is bright and more stable due to its evolving risk portfolio and reduced risk tolerance

 
Premium vs. Exposure Trending Favorably 13 Premium Goal = TIV Goal = We expect this gap to continue widening based on rate & exposure management actions

 
Personal Lines Renewal Rate Changes Sticking 14 Q2 was our best quarter yet and almost reached $4.00 per $1K of TIV ~$9M per month run rate Renewal Retention Rate Holding Strong All Personal Lines Metric 2020 Q3 2020 Q4 2021 Q1 2021 Q2 Renewing Policies 114,162 94,765 96,261 117,616 Renewal Acceptance 87.2% 85.3% 85.0% 80.5% Company Initiated Non-Renewals 4,397 4,711 5,499 16,204 Renewal Acceptance xNon-Renewals 90.3% 89.1% 89.4% 90.6% Renewed TIV 54,665,320,735 45,289,023,259 46,237,580,569 58,139,263,405 Expiring TIV 53,347,537,607 44,220,235,167 45,141,713,970 56,762,386,238 Additional TIV 1,317,783,128 1,068,788,092 1,095,866,598 1,376,877,167 Percent Change 2.5% 2.4% 2.4% 2.4% Renewed Premium 202,368,654 172,838,757 176,691,374 231,499,905 Expiring Premium 181,950,753 150,604,356 156,290,267 204,683,180 Additional Premium 20,417,901 22,234,400 20,401,107 26,816,725 Percent Change 11.2% 14.8% 13.1% 13.1% Renewal Premium Rate/$1k TIV 3.70 3.82 3.82 3.98 Expiring Premium Rate/$1k TIV 3.41 3.41 3.46 3.61 Monthly Rate Change 8.5% 12.1% 10.4% 10.4% R e n e w in g P o li ci e s O n ly Rate actions taken and planned for the next 12 months are expected to continue these positive trends and generate improved underwriting results in Personal Lines 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 4 4.1 Q3-20 Q4-20 Q1-21 Q2-21 Renewal Expiring Premium Rate/$1k TIV

 
Our ESG Approach 15 We believe an effective ESG strategy leads to improved decision making, associate engagement, and results over time UPC Insurance has created a culture where people are empowered to address risks as they emerge. Motivated people combined with a strong corporate culture is the Company’s greatest competitive advantage and sets the stage for long-term sustainability UPC’s Core Values ESG Strategy & Commitments Environmental Social Responsibility UPC is committed to incorporate and embed sustainability issues deeper into the Company’s culture, strategic planning process and execution of its operational plans. This begins with addressing climate change by achieving net-zero carbon emissions for the Company’s operations and through its value chain by no later than 2030 UPC supports communities through various initiatives intended to give back and promote goodwill. UPC has provided support to numerous non-for-profit organizations over the past several years that champion noble causes including youth education, work force development, medical care/research, domestic violence shelters / prevention, child-care services, and many others Governance UPC is committed to increase the representation of women, people of color, and other underrepresented groups on its Board and Management Team. UPC’s goal is to add at least two new Directors to its Board over the next couple of election cycles to improve overall diversity at the highest level of corporate governance UPC will increase its capital allocated toward ESG focused investment vehicles and opportunities from 0% up to 10% of total stockholders’ equity attributable to UIHC stockholders. This is one of the most powerful ways an insurance company like UPC can drive progress by doing its part to ensure capital is more available and cost effective to those who practice sustainability Trust Accountability Integrity Persistence Teamwork Bias to Action

 
Cautionary Statements 16 This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements include expectations regarding our diversification, growth opportunities, retention rates, liquidity, investment returns and our ability to meet our investment objectives and to manage and mitigate market risk with respect to our investments. These statements are based on current expectations, estimates and projections about the industry and market in which we operate, and management's beliefs and assumptions. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "endeavor," "project," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the negative variations thereof, or comparable terminology, are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainties include, without limitation: the regulatory, economic and weather conditions in the states in which we operate; the impact of new federal or state regulations that affect the property and casualty insurance market; the cost, variability and availability of reinsurance; assessments charged by various governmental agencies; pricing competition and other initiatives by competitors; our ability to attract and retain the services of senior management; the outcome of litigation pending against us, including the terms of any settlements; dependence on investment income and the composition of our investment portfolio and related market risks; our exposure to catastrophic events and severe weather conditions; downgrades in our financial strength ratings; risks and uncertainties relating to our acquisitions including our ability to successfully integrate the acquired companies; and other risks and uncertainties described in the section entitled "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission (the "SEC"), including our Annual Report in Form 10-K for the year ended December 31, 2019 and 2020 and our Form 10-Q for the periods ending March 31, 2021 and June 30, 2021, once available. We caution you not to place undue reliance on these forward looking statements, which are valid only as of the date they were made. Except as may be required by applicable law, we undertake no obligation to update or revise any forward-looking statements to reflect new information, the occurrence of unanticipated events, or otherwise. This presentation contains certain non-GAAP financial measures. See our earnings release, Form 10-K ,and Form 10-Q for further information regarding these non-GAAP financial measures. The information in this presentation is confidential. Any photocopying, disclosure, reproduction or alteration of the contents of this presentation and any forwarding of a copy of this presentation or any portion of this presentation to any person is prohibited.