UPC Insurance is a specialty underwriter of catastrophe exposed property insurance in the US
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 built a geographically diversified book of business of homeowners & fire insurance products (personal lines) across 12 coastal states with roughly 621,000 policies and $1.04 billion of premium in-force.
UPC has the #1 market share of commercial residential property insurance (commercial lines) in Florida with nearly 6,200 policies and over $338 million of premium in-force.
UIHC as of September 30, 2020
Total Assets:
$3.06 billion
Total Equity:
$454 million
Premium in-Force:
$1.38 billion
Financial Strength
A- (Kroll)
Ratings:
A- (AM Best) ¹
A (Demotech)
¹ AM Best rating is for Journey Insurance Company only
2
Q3-2020 Executive Summary
We remain enthusiastic about our strategy despite the unprecedented hurricane activity in 2020
Underlying
1 Results
Improving
Capital &
2 Reinsurance
Support
Portfolio
3 Optimization Accelerating
Elevated CAT
4 Frequency is Manageable
Core income excluding named storm losses of $15m or $0.35/share, up $19.5m y/y
Underlying gross loss ratio of 23.4% improved 1.5 points y/y
Gross expense ratio of 26.1% improved 0.9 points y/y despite $2.8m charge ($0.05/share)
GAAP equity of $454m declined -9.8% and STAT surplus is down -10.9% from year-end
We have tremendous reinsurance relationships to manage operating leverage
Reinsurance renewals at 1/1 & 6/1 will focus on reducing volatility
PML reduction improving capital efficiency and modeled expected return metrics
Underwriting actions implemented to restrict new business and be more selective
Our intent is to grow premiums via rate change while reducing risk exposures
Seven new named storms in Q3 equated to a 1-in-55-year return period for our portfolio
Q3 named storm gross loss of $290.4 and net loss of $125.1m ($2.30/share)
Q4 will be impacted by 2 additional events (Delta + Zeta likely $50-$55m before tax)
3
Summary of Operating Results
Underlying results improved nearly $20m y/y excluding named storms
Q3-20
Q3-19
Change
Core income (loss)
$
(83,847)
$
(29,222)
-186.9%
per diluted share (CEPS)
$
(1.95)
$
(0.68)
Included the following items
Net current year catastrophe loss & LAE incurred
$
140,001
$
18,872
Net (favorable) unfavorable reserve development
$
(4,213)
12,249
Total items
$
135,788
$
31,121
Core income (loss) excluding named windstorms
$
15,000
$
(4,499)
433.4%
CEPS excluding named windstorms
$
0.35
$
(0.11)
Gross underlying loss & LAE ratio
23.4%
24.9%
(1.5) pts
Gross expense ratio
26.1%
27.0%
(0.9) pts
Net loss & LAE ratio
115.8%
76.8%
Net expense ratio
49.0%
48.3%
Combined ratio
164.8%
125.0%
39.8 pts
Net current year catastrophe loss & LAE incurred
-74.2%
-26.0%
Net favorable (unfavorable) reserve development
2.2%
-6.3%
Underlying combined ratio
92.9%
92.8%
0.1 pts
NonCAT reserve development continued to be better than expected in Q3-20
Q3-20 underlying combined ratio would have improved to 91.4% excluding the $2.8m non-recurring charge
4
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United Insurance Holdings Corp. published this content on 05 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2020 21:21:04 UTC
American Coastal Insurance Corporation is the holding company of the insurance carrier, American Coastal Insurance Company. The Company is primarily engaged in the commercial and personal property and casualty insurance business with investments in the United States. Its primary products are commercial and homeowners' residential property insurance. It has two segments: commercial residential property and casualty insurance policies (commercial lines) and personal residential property and casualty insurance policies (personal lines). Its personal lines business provides structure, content and liability coverage for standard single-family homeowners, renters and condominium unit owners, through its subsidiary Interboro Insurance Company. Personal residential products are offered in New York. Its commercial lines business primarily provides commercial multi-peril property insurance for residential condominium associations and apartments in Florida, through its subsidiary AmCoastal.
AMERICAN COASTAL INSURANCE CORPORATION 
