uihc-20220223
FALSE000140152100014015212022-02-232022-02-23

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): February 23, 2022

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 February 23, 2022, United Insurance Holdings Corp. (the Company, we, our) issued a press release relating to our earnings for the fourth quarter and year ended December 31, 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 February 23, 2022. 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 February 23, 2022
Investor presentation issued by the Company on February 23, 2022
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.
February 23, 2022By:/s/ B. Bradford Martz
  B. Bradford Martz, President and Chief Financial Officer
(principal financial officer and principal accounting officer)



Exhibit 99.1

FOR IMMEDIATE RELEASE
 
UNITED INSURANCE HOLDINGS CORP. REPORTS FINANCIAL RESULTS
FOR ITS FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2021
 
Company to Host Quarterly Conference Call at 5:00 P.M. ET on February 23, 2022
The information in this press release should be read in conjunction with an investor presentation that is available on the Company's website at investors.upcinsurance.com/Presentations.
 
St. Petersburg, FL - February 23, 2022: 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 fourth quarter and year ended December 31, 2021.
($ in thousands, except for per share data)Three Months EndedYear Ended
December 31,December 31,
20212020Change20212020Change
Gross premiums written$268,890 $316,210 (15.0)%$1,329,445 $1,456,863 (8.7)%
Gross premiums earned$341,886 $364,231 (6.1)%$1,408,443 $1,406,980 0.1 %
Net premiums earned$145,081 $199,844 (27.4)%$589,761 $765,663 (23.0)%
Total revenues$154,544 $241,222 (35.9)%$634,527 $846,656 (25.1)%
Earnings before income tax$(6,202)$(45,228)86.3 %$(83,857)$(132,103)36.5 %
Net loss attributable to UIHC$(2,316)$(33,933)93.2 %$(57,919)$(96,454)40.0 %
Net loss available to UIHC common stockholders per diluted share$(0.05)$(0.79)93.7 %$(1.35)$(2.25)40.0 %
Reconciliation of net loss to core income loss:
Plus: Non-cash amortization of intangible assets$811 $1,043 (22.2)%$3,555 $4,267 (16.7)%
Less: Net realized gains (losses) on investment portfolio$(2,349)$41,732 NM$3,567 $66,691 (94.7)%
Less: Unrealized gains (losses) on equity securities$1,528 $(10,106)NM$3,237 $(27,562)NM
Less: Net tax impact (1)
$343 $(6,422)NM$(682)$(7,321)90.7 %
Core loss (2)
$(1,027)$(58,094)98.2 %$(60,486)$(123,995)51.2 %
Core loss per diluted share (2)
$(0.02)$(1.35)98.5 %$(1.41)$(2.89)51.2 %
Book value per share$7.20 $9.19 (21.7)%
NM = Not Meaningful
(1) In order to reconcile net loss to the core loss measures, the Company 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.

"Results in the fourth quarter demonstrate our continuing transition year, being the second consecutive quarter over quarter and year over year improvement in operating results," said Dan Peed, CEO of UPC Insurance. "In the second half of 2021, we continued to see escalating rate increases compound and begin to earn their way through our portfolio. Our commercial lines portfolio is performing well and growing strongly. The Personal Lines portfolio footprint and exposure levels are shrinking quickly, including active exposure management and risk selection, as well as the sale of renewal rights in Georgia, North Carolina and South Carolina. With these strategic changes, we are nearing our targeted goal of an even balance of Commercial and Personal lines business, well ahead of our
1
Exhibit 99.1
three year timeline. Going forward, we plan to continue our focus on underwriting execution including rate increases, risk selection and exposure management, all expected to drive a return to underwriting profitability in 2022 and target returns on equity in 2023."


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 EndedYear Ended
December 31,December 31,
2021202020212020
Net loss attributable to UIHC$(2,316)$(33,933)$(57,919)$(96,454)
Return on equity based on GAAP net loss attributable to UIHC (1)
(2.7)%(28.4)%(16.9)%(20.2)%
Core loss$(1,027)$(58,094)$(60,486)$(123,995)
Core return on equity (1)(2)
(1.2)%(48.7)%(17.6)%(26.0)%
(1) Return on equity for the three months and year ended December 31, 2021 and 2020 is calculated on an annualized basis by dividing the net loss or core 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 EndedYear Ended
December 31,December 31,
20212020Change20212020Change
Loss ratio, net(1)
58.9 %92.6 %(33.7) pts71.6 %79.4 %(7.8) pts
Expense ratio, net(2)
50.2 %49.5 %0.7  pts48.7 %47.1 %1.6  pts
Combined ratio (CR)(3)
109.1 %142.1 %(33.0) pts120.3 %126.5 %(6.2) pts
Effect of current year catastrophe losses on CR8.6 %53.9 %(45.3) pts19.3 %38.5 %(19.2) pts
Effect of prior year unfavorable (favorable) development on CR(2.4)%(0.3)%(2.1) pts4.7 %(0.9)%5.6  pts
Underlying combined ratio(4)
102.9 %88.5 %14.4  pts96.3 %88.9 %7.4  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 fourth quarter of 2021 was $2.3 million, or $0.05 per diluted share, compared to $33.9 million, or $0.79 per diluted share, for the fourth quarter of 2020. The decrease in net loss was primarily driven by a decrease in loss and LAE expense for the quarter. This was driven by the Company's decision to lower the retention related to its Core Catastrophe reinsurance program for the 2021-2022 hurricane season coupled with a lower frequency of catastrophic weather activity when compared to the fourth quarter of 2020 and an increase in ceded losses to the Company's quota share reinsurance program. This was partially offset by a decrease in revenue, driven by decreased gross written premiums as described below. In addition, the Company experienced increased ceded premium earned as a result of the changes to the Company's quota share reinsurance agreements described below, as well as a decrease in realized investment gains in 2021.

The Company's total gross written premium decreased by $47.3 million, or 15.0%, to $268.9 million for the fourth quarter of 2021, from $316.2 million for the fourth quarter of 2020. This decrease was driven primarily by a decline in written premiums across the personal lines business, due to underwriting actions taken by the Company at the end of 2020 and throughout 2021, as well as the transition of the Northeast business to Homeowners Choice Property & Casualty Insurance Company, Inc. (HCPCI) in the fourth quarter of 2021. In addition, the Company experienced a decrease in assumed premiums due to the termination of a contract which included commercial property business assumed from unaffiliated insurers. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums by region and gross written premium by line of business are shown in the table below.
($ in thousands)Three Months Ended
 December 31,
20212020Change $Change %
Direct Written and Assumed Premium by Region (1)
Florida $190,220 $181,115 $9,105 5.0 %
Gulf41,983 57,461 (15,478)(26.9)
Northeast19,741 43,699 (23,958)(54.8)
Southeast16,834 27,587 (10,753)(39.0)
Total direct written premium by region268,778 309,862 (41,084)(13.3)
Assumed premium (2)
112 6,348 (6,236)(98.2)
Total gross written premium by region$268,890 $316,210 $(47,320)(15.0)%
Gross Written Premium by Line of Business
Personal property$175,058 $228,940 $(53,882)(23.5)%
Commercial property93,832 87,270 6,562 7.5 %
Total gross written premium by line of business$268,890 $316,210 $(47,320)(15.0)%
(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. As of December 1, 2021, the Company is no longer writing in Connecticut or Rhode Island as the policies have transitioned to HCPCI.
(2) Assumed premium written for 2021 and 2020 primarily included commercial property business assumed from unaffiliated insurers.


Loss and LAE decreased by $99.6 million, or 53.8%, to $85.5 million for the fourth quarter of 2021, from $185.1 million for the fourth quarter of 2020. Loss and LAE expense as a percentage of net earned premiums decreased 33.7 points to 58.9% for the fourth quarter of 2021, compared to 92.6% for the fourth quarter of 2020. Excluding catastrophe losses and reserve development, the Company's gross underlying loss and LAE ratio for the fourth quarter of 2021 would have been 22.4%, an increase of 0.9 points from 21.5% during the fourth quarter of 2020.

Policy acquisition costs decreased by $21.3 million, or 32.4%, to $44.5 million for the fourth quarter of 2021, from $65.8 million for the fourth 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 expenses incurred, such as premium taxes and agent commission expenses, which fluctuate in conjunction with the quarter over quarter decrease in written premium. This was partially offset by increased external management fees incurred during the fourth 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 $0.6 million, or 4.1%, to $14.1 million for the fourth quarter of 2021, from $14.7 million for the fourth quarter of 2020

General and administrative expenses decreased by $4.1 million, or 22.3%, to $14.3 million for the fourth quarter of 2021, from $18.4 million for the fourth 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. In addition, the Company experienced a decrease in consulting expenses and decreased amortization expense related to certain intangible assets which were fully amortized during 2021.


Year to Date Financial Results
Net loss attributable to the Company for the year ended December 31, 2021 was $57.9 million, or $1.35 per diluted share, compared to $96.5 million, or $2.25 per diluted share, for the year ended December 31, 2020. The decrease in net losses was primarily driven by a decrease in loss and LAE expense for the year. This was driven by the Company's decision to lower the retention related to its Core Catastrophe reinsurance program for the 2021-2022 hurricane season coupled with a lower frequency of catastrophic weather activity when compared to 2020 and an increase in ceded losses to the Company's quota share reinsurance program. This was partially offset by a decrease in revenue, driven by decreased gross written premiums as described below. In addition, the Company experienced increased ceded premium earned as a result of the changes to the Company's quota share reinsurance agreements described below, as well as a decrease in realized investment gains in 2021.

The Company's total gross written premium decreased by $127.4 million, or 8.7%, to $1.3 billion for the year ended December 31, 2021 from $1.5 billion for the year ended December 31, 2020, driven primarily by a decline in written premiums across the personal lines business, due to underwriting actions taken by the Company at the end of 2020 and throughout 2021. In addition, the Company experienced a decrease in assumed premiums due to the termination of a contract which included commercial property business assumed from unaffiliated insurers. The breakdown of the year-over-year 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)Year Ended December 31,
20212020Change $Change %
Direct Written and Assumed Premium by Region (1)
Florida $852,711 $829,777 $22,934 2.8 %
Gulf225,013 258,064 (33,051)(12.8)
Northeast158,217 197,556 (39,339)(19.9)
Southeast93,188 126,161 (32,973)(26.1)
Total direct written premium by region1,329,129 1,411,558 (82,429)(5.8)%
Assumed premium (2)
316 45,305 (44,989)(99.3)
Total gross written premium by region$1,329,445 $1,456,863 $(127,418)(8.7)%
Gross Written Premium by Line of Business
Personal property$907,207 $1,063,599 $(156,392)(14.7)%
Commercial property422,238 393,264 28,974 7.4 
Total gross written premium by line of business$1,329,445 $1,456,863 $(127,418)(8.7)%
(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. As of December 1, 2021, the Company is no longer writing in Connecticut or Rhode Island as the policies have transitioned to HCPCI.
(2) Assumed premium written for 2021 and 2020 primarily included commercial property business assumed from unaffiliated insurers.




4
Exhibit 99.1
Loss and LAE decreased by $186.2 million, or 30.6%, to $422.1 million for the year ended December 31, 2021, from $608.3 million for the year ended December 31, 2020. Loss and LAE expense as a percentage of net earned premiums decreased 7.8 points to 71.6% for the year ended December 31, 2021, compared to 79.4% for the year ended December 31, 2020. Excluding catastrophe losses and reserve development, the Company's gross underlying loss and LAE ratio for the year would have been 19.9%, a decrease of 2.9 points from 22.8% during the year ended December 31, 2020.

Policy acquisition costs decreased by $62.4 million, or 26.4%, to $173.6 million for the year ended December 31, 2021, from $236.0 million for the year ended December 31, 2020. The primary driver of the decrease in expense was an increase in ceding commission income related to the Company's quota share reinsurance agreements. In addition, there was a decrease in expenses incurred, such as premium taxes and agent commission expenses, which fluctuate in conjunction with the year over year decrease in written premium. This was partially offset by increased external management fees incurred during 2021 as the result of an increased volume of commercial written premium year over year.

Operating and underwriting expenses increased by $3.4 million, or 6.4%, to $56.3 million for the year ended December 31, 2021, from $52.9 million for the year ended December 31, 2020, primarily due to increased expenses related to the Company's investment in technology. This was partially offset by decreased agent incentive costs in 2021 as the Company has discontinued its agent incentive program. The Company also experienced decreases in travel expenses due to lack of company travel during 2021 as a result of the continued effects of the coronavirus pandemic and decreases in office overhead expenses in 2021 driven by the Company's shift to a remote work environment for the year.

General and administrative expenses decreased by $14.9 million, or 20.7%, to $57.2 million for the year ended December 31, 2021, from $72.1 million for the year ended December 31, 2020, primarily due to an increase in the allocation of claims adjustment payroll related costs to loss & LAE from general and administrative expenses in 2021. In addition, in 2020 the Company incurred expenses related to the discontinuation of plans to build new headquarters, an expense which is non-recurring in 2021.

Combined Ratio Analysis

The calculations of the Company's loss ratios and underlying loss ratios are shown below.
($ in thousands)Three Months EndedYear Ended
December 31,December 31,
20212020Change20212020Change
Loss and LAE$85,520 $185,134 $(99,614)$422,134 $608,316 $(186,182)
% of Gross earned premiums25.0 %50.8 %(25.8) pts30.0 %43.2 %(13.2) pts
% of Net earned premiums58.9 %92.6 %(33.7) pts71.6 %79.4 %(7.8) pts
Less:
Current year catastrophe losses$12,515 $107,618 $(95,103)$113,740 $294,537 $(180,797)
Prior year reserve unfavorable (favorable) development(3,488)(621)(2,867)27,856 (6,786)34,642 
Underlying loss and LAE (1)
$76,493 $78,137 $(1,644)$280,538 $320,565 $(40,027)
% of Gross earned premiums22.4 %21.5 %0.9  pts19.9 %22.8 %(2.9) pts
% of Net earned premiums52.7 %39.1 %13.6  pts47.6 %41.8 %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.









5
Exhibit 99.1



The calculations of the Company's expense ratios are shown below.
($ in thousands)Three Months EndedYear Ended
December 31,December 31,
20212020Change20212020Change
Policy acquisition costs$44,501 $65,819 $(21,318)$173,574 $236,002 $(62,428)
Operating and underwriting14,124 14,712 (588)56,257 52,876 3,381 
General and administrative14,278 18,411 (4,133)57,212 72,057 (14,845)
Total Operating Expenses$72,903 $98,942 $(26,039)$287,043 $360,935 $(73,892)
% of Gross earned premiums
21.3 %27.2 %(5.9) pts20.4 %25.7 %(5.3) pts
% of Net earned premiums
50.2 %49.5 %0.7  pts48.7 %47.1 %1.6  pts

Reinsurance Costs as a Percentage of Gross Earned Premium

Reinsurance costs as a percentage of gross earned premium in the fourth quarter of 2021 and 2020 were as follows:
20212020
Non-at-Risk(2.2)%(3.0)%
Quota Share(23.2)%(13.6)%
All Other(32.2)%(28.5)%
Total Ceding Ratio(57.6)%(45.1)%

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 in place that previously provided coverage to Family Security Insurance Company, Inc. and United Property & Casualty Insurance Company, as well as increasing the cession percentage by 8%. In addition, the Company entered into a quota share agreement with HCPCI 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 HCPCI 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 HCPCI 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 would have been 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 decreased from $1.3 billion at December 31, 2020 to $1.0 billion at December 31, 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 92.2% of total investments at December 31, 2021, compared to 94.5% at December 31, 2020. At December 31, 2021, the Company's fixed maturity investments had a modified duration of 4.0 years, compared to 4.1 years at December 31, 2020.

6
Exhibit 99.1
At December 31, 2021, the Company's fixed maturity investment holdings decreased by $276,409,000, or 29.4% from December 31, 2020, in order to satisfy the Company's liquidity requirements during the fourth quarter of 2021.


Book Value Analysis

Book value per common share decreased 21.7% from $9.19 at December 31, 2020, to $7.20 at December 31, 2021. Underlying book value per common share decreased 18.0% from $8.96 at December 31, 2020 to $7.35 at December 31, 2021. A decrease in the Company's retained earnings as the result of a net loss in 2021 drove the decrease in the Company's book value per share. As shown in the table below, removing the effect of AOCI increases the Company's book value per common share, as the Company experienced unfavorable market conditions for the twelve months ended December 31, 2021.
($ in thousands, except for share and per share data)December 31, 2021December 31, 2020
Book Value per Share
Numerator:
Common stockholders' equity attributable to UIHC$312,406 $395,753 
Denominator:
Total Shares Outstanding43,370,442 43,075,877 
Book Value Per Common Share$7.20 $9.19 
Book Value per Share, Excluding the Impact of Accumulated Other Comprehensive Income (AOCI)
Numerator:
Common stockholders' equity attributable to UIHC$312,406 $395,753 
Less: Accumulated other comprehensive income (loss)(6,531)9,693 
Stockholders' Equity, excluding AOCI$318,937 $386,060 
Denominator:
Total Shares Outstanding43,370,442 43,075,877 
Underlying Book Value Per Common Share(1)
$7.35 $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.


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
7
Exhibit 99.1
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.

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.

8
Exhibit 99.1

Conference Call Details

Date and Time:    February 23, 2022 - 5:00 P.M. ET

Participant Dial-In:    (United States): 877-445-9755
    (International): 201-493-6744

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=1528687&tp_key=4ec2c1e19f

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 the Company's 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 Florida, Louisiana, New York, and Texas. The Company also writes policies in Georgia, South Carolina, North Carolina, and Massachusetts where renewal rights have been sold and all premiums and losses are ceded. 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”. The Company believes 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 expressed in, or implied by, the forward-looking statements. 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. Factors that could cause actual results to differ materially may be found in the Company's filings with the U.S. Securities and Exchange Commission, in the “Risk Factors” section in the Company's 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, the Company undertakes no obligation to update or revise any forward-looking statements.

 ### #### ###
CONTACT:ORINVESTOR RELATIONS:
United Insurance Holdings Corp.The Equity Group
Jessica BarclayKarin Daly
Deputy CFOVice President
(727) 895-7737 / [email protected](212) 836-9623 / [email protected]
9
Exhibit 99.1
Consolidated Statements of Comprehensive Loss
In thousands, except share and per share amounts
Three Months EndedYear Ended
December 31,December 31,
2021202020212020
REVENUE:
Gross premiums written$268,890 $316,210 $1,329,445 $1,456,863 
Change in gross unearned premiums72,996 48,021 78,998 (49,883)
Gross premiums earned341,886 364,231 1,408,443 1,406,980 
Ceded premiums earned(196,805)(164,387)(818,682)(641,317)
Net premiums earned145,081 199,844 589,761 765,663 
Net investment income 3,035 5,291 13,772 24,125 
Net realized investment gains (losses)(2,349)41,732 3,567 66,691 
Net unrealized gains (losses) on equity securities1,528 (10,106)3,237 (27,562)
Other revenue7,249 4,461 24,190 17,739 
Total revenues$154,544 $241,222 $634,527 $846,656 
EXPENSES:
Losses and loss adjustment expenses85,520 185,134 422,134 608,316 
Policy acquisition costs44,501 65,819 173,574 236,002 
Operating expenses14,124 14,712 56,257 52,876 
General and administrative expenses14,278 18,411 57,212 72,057 
Interest expense2,381 2,388 9,391 9,582 
Total expenses 160,804 286,464 718,568 978,833 
Loss before other income(6,260)(45,242)(84,041)(132,177)
Other income58 14 184 74 
Loss before income taxes(6,202)(45,228)(83,857)(132,103)
Benefit for income taxes(3,333)(11,672)(23,989)(36,605)
Net Loss$(2,869)$(33,556)$(59,868)$(95,498)
Less: Net income (loss) attributable to noncontrolling interests(553)377 (1,949)956 
Net Loss attributable to UIHC$(2,316)$(33,933)$(57,919)$(96,454)
OTHER COMPREHENSIVE LOSS:
Change in net unrealized gains (losses) on investments(7,171)12,620 (18,267)64,726 
Reclassification adjustment for net realized investment losses (gains)2,349 (41,732)(3,567)(66,691)
Income tax benefit related to items of other comprehensive loss1,156 7,084 5,264 502 
Total comprehensive loss$(6,535)$(55,584)$(76,438)$(96,961)
Less: Comprehensive income (loss) attributable to noncontrolling interests(694)388 (2,295)1,119 
Comprehensive loss attributable to UIHC$(5,841)$(55,972)$(74,143)$(98,080)
Weighted average shares outstanding
Basic42,973,753 42,896,339 42,948,850 42,864,166 
Diluted42,973,753 42,896,339 42,948,850 42,864,166 
Earnings available to UIHC common stockholders per share
Basic$(0.05)$(0.79)$(1.35)$(2.25)
Diluted$(0.05)$(0.79)$(1.35)$(2.25)
Dividends declared per share$0.06 $0.06 $0.24 $0.24 
10
Exhibit 99.1
Consolidated Balance Sheets
In thousands, except share amounts
December 31, 2021December 31, 2020
ASSETS 
Investments, at fair value:  
Fixed maturities, available-for-sale$663,602 $940,011 
Equity securities37,958 7,445 
Other investments18,006 47,595 
Total investments$719,566 $995,051 
Cash and cash equivalents212,024 239,420 
Restricted cash33,254 62,078 
Accrued investment income3,296 4,680 
Property and equipment, net31,561 34,187 
Premiums receivable, net79,166 87,339 
Reinsurance recoverable on paid and unpaid losses997,120 821,156 
Ceded unearned premiums430,631 384,588 
Goodwill73,045 73,045 
Deferred policy acquisition costs38,520 74,414 
Intangible assets, net18,375 21,930 
Other assets62,015 51,053 
Total Assets$2,698,573 $2,848,941 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses$1,084,450 $1,089,966 
Unearned premiums644,940 723,938 
Reinsurance payable on premiums248,625 241,636 
Payments outstanding114,524 77,912 
Accounts payable and accrued expenses76,258 91,173 
Operating lease liability1,934 2,311 
Other liabilities39,324 46,365 
Notes payable, net156,561 158,041 
Total Liabilities$2,366,616 $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; 100,000,000 shares authorized; 43,360,429 and 43,250,731 issued, respectively; 43,370,442 and 43,075,877 outstanding, respectively
4 4 
Additional paid-in capital394,268 393,122 
Treasury shares, at cost; 212,083 shares(431)(431)
Accumulated other comprehensive income (loss)(6,531)9,693 
Retained earnings (deficit)(74,904)(6,635)
Total stockholders' equity attributable to UIHC stockholders$312,406 $395,753 
Noncontrolling interests19,551 21,846 
Total Stockholders' Equity$331,957 $417,599 
Total Liabilities and Stockholders' Equity$2,698,573 $2,848,941 
11
United Insurance Holdings Corporation (Nasdaq: UIHC) Investor Presentation February 23, 2022

 
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 $425 million of premium in-force. UPC’s homeowners & fire insurance products (personal lines) are focused on Florida, Louisiana, New York, and Texas with roughly 352,000 policies and $722 million of premium in-force. ¹ UIHC as of December 31, 2021 Total Assets: $2.7 billion Total Equity: $312 million Premium in-Force: $1.14 billion ¹ Employees: 468 Headquarters: St. Petersburg, FL Financial Strength Ratings: A- (Kroll) A- (AM Best) ² A (Demotech) 1 Excludes discontinued states where renewal rights have been sold 2 AM Best rating for Journey Insurance Company only Specialty Commercial Property Underwriters Specialty Homeowners Underwriters

 
3 • Q4-2021 Results • Core loss of -$1.0m (-$0.02 per share) compared favorably to -$58.1m (-$1.35 per share) last year due to lower net retained losses from catastrophe events. • Stockholders’ equity attributable to UIHC at 12.31.2021 was $312.4m ($7.20 per share) with tangible book value per share of $5.10. • Risk based capital projected to be at or above 300% for all statutory carriers as of 12.31.2021. • Other Highlights • Entry into a renewal rights and quota share reinsurance agreement to transfer all risk of loss for the Southeast region. • Successful renewal of All Other Perils (AOP) catastrophe reinsurance program with retention unchanged at $15m. • Exposure reduction and renewal rate increases continued to trend favorably producing more premium relative to risk. Executive Summary

 
Q4-2021 Results 4 Core earnings improved dramatically from last year’s -$58m loss to nearly break-even. • We labeled 2021 a transition year because we significantly increased our reinsurance spend to de-risk and de-leverage our portfolio. • Ceded premiums hurt Q4 results, but our lower risk retention and operating leverage combined with improving underwriting metrics now have us better positioned for the long-term. Q4-21 Q4-20 Change Core income (loss) (1,027)$ (58,094)$ -98.2% per diluted share (CEPS) (0.02)$ (1.35)$ Included the following items Net current year catastrophe loss & LAE incurred 12,515$ 107,618$ Net (favorable) unfavorable reserve development (3,488)$ (621)$ Total items 9,027$ 106,997$ Core income (loss) excluding named windstorms (1,027)$ 3,298$ -131.1% CEPS excluding named windstorm (0.02)$ 0.08$ Gross underlying loss & LAE ratio 22.4% 21.5% 0.9 pts Gross expense ratio 21.3% 27.2% (5.9) pts Net loss & LAE ratio 58.9% 92.6% Net expense ratio 50.2% 49.5% Combined ratio 109.1% 142.1% (33.0) pts Net current year catastrophe loss & LAE incurred -8.6% -53.9% Net favorable (unfavorable) reserve development 2.4% 0.3% Underlying combined ratio 102.9% 88.5% 14.4 pts

 
5 Key Underwriting Metrics Gross loss & expense ratios were better than last year & long-term average. 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 2016 2017 2018 2019 2020 2021 Gross Loss Ratio - Underlying 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2016 2017 2018 2019 2020 2021 Gross Loss Ratio - CAT 93% of the y/y change driven by reinsurance programs designed to reduce operating leverage and earnings volatility. 2016 2017 2018 2019 2020 2021 6-Yr Avg Ratios on gross premiums earned Net Loss & LAE - Underlying 36.4% 25.3% 26.1% 30.2% 22.3% 21.9% 27.0% Net Loss & LAE - Named Windstorm CAT 4.5% 8.5% 4.6% 2.4% 14.8% 2.5% 6.2% Net Loss & LAE - AOP CAT 3.9% 3.3% 3.9% 4.8% 6.1% 5.6% 4.6% Net Loss & LAE 44.7% 37.1% 34.6% 37.5% 43.2% 30.0% 37.8% Expense 27.2% 28.9% 26.2% 26.1% 25.7% 20.4% 25.7% Ceding Ratio -31.5% -40.6% -41.6% -43.6% -45.6% -58.2% -43.5% Ratios on net premiums earned Net Loss & LAE - Underlying 53.1% 42.5% 44.8% 53.6% 41.0% 52.3% 47.9% Net Loss & LAE - Named Windstorm CAT 6.6% 14.3% 7.9% 4.3% 27.1% 5.9% 11.0% Net Loss & LAE - AOP CAT 5.7% 5.6% 6.6% 8.6% 11.3% 13.4% 8.5% Net Loss & LAE 65.3% 62.4% 59.3% 66.4% 79.4% 71.6% 67.4% Expense 39.6% 48.7% 45.0% 46.3% 47.1% 48.7% 45.9% Combined Ratio 104.9% 111.1% 104.2% 112.7% 126.5% 120.3% 113.3% CAT Losses -12.2% -19.9% -14.5% -12.8% -38.4% -19.3% -19.5% Prior year development -3.7% 0.4% -0.6% -4.4% 0.9% -4.7% -2.0% Underlying Combined Ratio 89.0% 91.7% 89.1% 95.5% 88.9% 96.3% 91.7% Year ending December 31,

 
Results by Line of Business 6 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 over time. • PL core earnings improved from the same periods (QTD & YTD) a year ago. Three-months ended 12.31.21 $ in millions PL CL Total Gross Premiums Earned 236.4$ 105.5$ 341.9$ Ceded Premiums Earned (136.6) (60.2) (196.8) Net Premiums Earned 99.8 45.3 145.1 Investment & Other Income 6.7 1.2 7.9 Unrealized G(L) on Equities 0.2 1.3 1.5 Total Revenue 106.7 47.8 154.5 Underlying Loss & LAE 59.8 16.6 76.5 Current year CAT Loss & LAE 11.5 1.0 12.5 Prior year development (1.3) (2.2) (3.5) Total Loss 70.0 15.5 85.5 Operating Expense 48.6 24.3 72.9 Total Expenses (excluding interest) 118.7 39.8 158.4 Core Income (Loss) before tax (11.4)$ 6.8$ (4.6)$ Core Income (Loss) (6.6)$ 5.6$ (1.0)$ Direct Loss Ratio - NonCAT 37.0% 14.8% 30.2% Direct Loss Ratio - CAT (Current AY) 7.8% 1.7% 5.9% Gross Expense Ratio 20.5% 23.1% 21.3% Net Loss Ratio 70.2% 34.3% 58.9% Net Expense Ratio 48.7% 53.7% 50.2% Combined Ratio 118.9% 88.0% 109.1% CAT Loss -11.5% -2.2% -8.6% PY Development F/(U) 1.3% 4.9% 2.4% Underlying Combined Ratio 108.6% 90.7% 102.9%

 
UPC Litigation vs. Industry 7 Our decrease in new lawsuits after 7/1/21 is consistent with other homeowner carriers in FL. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 661 705 729 676 668 857 789 461 433 463 399 418 AOB 105 136 146 125 115 221 123 86 76 89 88 116 % AOB 16% 19% 20% 18% 17% 26% 16% 19% 18% 19% 22% 28% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 5,222 5,634 6,405 6,300 5,634 6,398 6,663 4,313 3,909 4,092 3,612 3,366 AOB 890 1,133 1,073 1,337 1,200 1,492 1,264 1,040 1,014 1,017 1,053 1,113 % AOB 17% 20% 17% 21% 21% 23% 19% 24% 26% 25% 29% 33% 661 705 729 676 668 857 789 461 433 463 399 418 105 136 146 125 115 221 123 86 76 89 88 116 - 200 400 600 800 1,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec United P&C Total AOB 5,222 5,634 6,405 6,300 5,634 6,398 6,663 4,313 3,909 4,092 3,612 3,366 890 1,133 1,073 1,337 1,200 1,492 1,264 1,040 1,014 1,017 1,053 1,113 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Industry Total AOB Source: CaseGlide Monthly Litigation Report

 
8 Personal Lines Renewal Rate Change is Significant PL generated over $101 million of additional premium in 2021 from rate actions. Metric 2021 Q1 2021 Q2 2021 Q3 2021 Q4 FY 2021 Renewing Policies 96,261 117,616 108,074 81,548 403,499 PIF Avail. For Renewal 113,188 146,045 141,036 105,499 505,768 Renewal Acceptance 85.0% 80.5% 76.6% 77.3% 79.8% Company Initiated Non-Renewals 5,499 16,204 20,982 12,099 54,784 Renewal Acceptance xNon-Renewals 89.4% 90.6% 90.0% 87.3% 89.5% Renewed TIV 46,237,580,569 58,139,263,405 52,974,505,316 40,125,486,367 197,476,835,657 Expiring TIV 45,141,713,970 56,762,386,238 51,714,741,393 38,764,093,047 192,382,934,649 Additional TIV 1,095,866,598 1,376,877,167 1,259,763,923 1,361,393,320 5,093,901,008 Percent Change 2.4% 2.4% 2.4% 3.5% 2.6% Renewed Premium 176,691,374 231,499,905 223,509,663 172,909,298 804,610,240 Expiring Premium 156,290,267 204,683,180 191,746,343 150,082,230 702,802,022 Additional Premium 20,401,107 26,816,725 31,763,320 22,827,067 101,808,219 Percent Change 13.1% 13.1% 16.6% 15.2% 14.5% Renewal Premium Rate/$1k TIV 3.82 3.98 4.22 4.31 4.07 Expiring Premium Rate/$1k TIV 3.46 3.61 3.71 3.87 3.65 Annual Rate Change 10.4% 10.4% 13.8% 11.3% 11.5%

 
Commercial Lines Rate Increases Accelerating 9 Florida commercial residential is a hardening market and ripe for underwriting profit. 0% 50% 100% 150% 200% 250% 300% Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 6 period moving average (ACIC CAT MP) CAT Percentage of Model Price (MP) Source: Company data, Company filings. 1. 32% loss ratio at 100% model price and 16% loss ratio at 200% model price. 100% Model Price = Design 196%

 
Premium Relative to Exposure Improving 10 We expect this gap to widen further from additional underwriting improvement initiatives.

 
Portfolio Optimization is Working 11 Higher rates + exposure reductions targeting risk (PML) drivers = better results over time.

 
Summary of Business In-force 12 12.31.20 12.31.21 Change 12.31.20 12.31.21 Change 12.31.20 12.31.21 Change 1 FL 247,287 198,838 -19.6% 477,533$ 437,211$ -8.4% 109,824$ 89,605$ -18.4% 2 SC 45,655 33,748 -26.1% 60,773$ 50,589$ -16.8% 20,648$ 16,299$ -21.1% 3 MA 29,973 24,992 -16.6% 52,746$ 47,328$ -10.3% 23,816$ 20,520$ -13.8% 4 RI 16,586 - -100.0% 28,095$ -$ -100.0% 10,149$ -$ -100.0% 5 NC 36,178 19,306 -46.6% 47,092$ 32,464$ -31.1% 17,365$ 10,036$ -42.2% 6 NJ 37,098 30,867 -16.8% 38,071$ 32,294$ -15.2% 19,193$ 16,523$ -13.9% 7 TX 91,908 67,755 -26.3% 153,026$ 130,754$ -14.6% 37,840$ 29,915$ -20.9% 8 LA 50,114 41,956 -16.3% 98,182$ 89,934$ -8.4% 20,849$ 18,330$ -12.1% 9 GA 11,735 4,708 -59.9% 13,259$ 6,006$ -54.7% 5,563$ 2,298$ -58.7% 10 HI 2,068 - -100.0% 1,882$ -$ -100.0% 1,077$ -$ -100.0% 11 CT 8,788 - -100.0% 11,090$ -$ -100.0% 5,885$ -$ -100.0% 12 NY 47,598 43,529 -8.5% 65,758$ 63,787$ -3.0% 35,591$ 32,013$ -10.1% Toal PL 624,988 465,699 -25.5% 1,047,507$ 890,367$ -15.0% 307,800$ 235,539$ -23.5% 13 Discontinued 113,621 168,681$ 65,676$ % of UIHC 24% 13% 21% 14 PL Adjusted 624,988 352,078 -43.7% 1,047,507$ 721,686$ -31.1% 307,800$ 169,863$ -44.8% 15 Total CL 6,004 6,025 0.3% 350,812$ 425,415$ 21.3% 69,236$ 74,130$ 7.1% 16 Total UIHC 630,992 471,724 -25.2% 1,398,319$ 1,315,782$ -5.9% 377,036$ 309,669$ -17.9% 17 UIHC Adjusted 630,992 358,103 -43.2% 1,398,319$ 1,147,101$ -18.0% 377,036$ 243,993$ -35.3% Policies Premium ($000) TIV ($000,000) 74.9% 25.1% PL CL 2020 Premium Mix 2021 Premium Mix ¹ Reductions in personal lines exposures has moved UIHC closer to its 50/50 target. ¹ Calculated using PL adjusted results 62.9% 37.1% PL CL

 
Financial Leverage Increased While Operating Decreased 13 Equity erosion of ~$83.3m (-21.1%) resulted in our debt/capital ratio increasing to 33.4%. Exposure reduction and lower retention of risk are expected to continue lowering operating leverage. Dec. 31, Dec. 31, ($ in thousands, except per share amounts) 2021 2020 Variance Selected Balance Sheet Data Cash & investments 964,844$ 1,296,549$ -25.6% Unpaid loss & LAE reserves, net of reinsurance 87,330$ 268,810$ -67.5% Financial debt 156,561$ 158,041$ -0.9% Stockholders' equity attributable to UIHC 312,406$ 395,753$ -21.1% Total capital 468,967$ 553,794$ -15.3% Leverage Ratios Debt-to-total capital 33.4% 28.5% 17.0% Net premiums earned-to-stockholders' equity 188.8% 193.5% -2.4% Per Share Data Common shares outstanding 43,370,442 43,075,877 0.7% Book value per common share 7.20$ 9.19$ -21.6% Tangible book value per common share 5.10$ 6.98$ -27.0%

 
Corporate Strategy 14 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.

 
Cautionary Statements 15 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, 2020 and 2021 and our Form 10-Q for the periods ending March 31, 2021, June 30, 2021 and September 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.