Business Wire | Nov 11, 2021 04:28PM EST

United Insurance Holdings Corp. Reports Financial Results for Its Third Quarter Ended September 30, 2021

Nov. 11, 2021

ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Nov. 11, 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 third quarter ended September 30, 2021.

($ in Three Months Ended Nine Months Endedthousands,except for pershare data) September 30, September 30,

2021 2020 Change 2021 2020 Change

Gross premiums $ 322,493 $ 365,819 (11.8 ) % $ 1,060,555 $ 1,140,653 (7.0 ) %written

Gross premiums $ 353,461 $ 353,991 (0.1 ) % $ 1,066,557 $ 1,042,749 2.3 %earned

Net premiums $ 153,271 $ 188,741 (18.8 ) % $ 444,680 $ 565,819 (21.4 ) %earned

Total revenues $ 162,740 $ 212,733 (23.5 ) % $ 479,983 $ 605,434 (20.7 ) %

Earningsbefore income $ (18,600 ) $ (100,553 ) 81.5 % $ (77,655 ) $ (86,875 ) 10.6 %tax

Net lossattributable $ (14,322 ) $ (74,072 ) 80.6 % $ (55,603 ) $ (62,521 ) 11.1 %to UIHC

Net lossavailable toUIHC common $ (0.33 ) $ (1.73 ) 80.9 % $ (1.29 ) $ (1.46 ) 11.6 %stockholdersper dilutedshare



Reconciliationof net loss to core incomeloss:

Plus: Non-cashamortization $ 812 $ 1,043 (22.1 ) % $ 2,744 $ 3,224 (14.9 ) %of intangibleassets

Less: Netrealized gains $ 5,537 $ 24,968 (77.8 ) % $ 5,916 $ 24,959 (76.3 ) %on investmentportfolio

Less:Unrealizedgains (losses) $ (3,293 ) $ (11,552 ) 71.5 % $ 1,709 $ (17,456 ) NM on equitysecurities

Less: Net tax $ (301 ) $ (2,598 ) 88.4 % $ (1,025 ) $ (898 ) (14.1 )impact ^(1) %

Core loss ^(2) $ (15,453 ) $ (83,847 ) 81.6 % $ (59,459 ) $ (65,902 ) 9.8 %

Core loss perdiluted share $ (0.36 ) $ (1.95 ) 81.6 % $ (1.38 ) $ (1.54 ) 10.4 %^(2)



Book value per $ 7.42 $ 10.54 (29.6 ) %share

NM = Not Meaningful

(1) In order to reconcile net loss to the core 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 third quarter was an active hurricane quarter resulting in a modest loss, much reduced from last year and in line with expectations for this continuing transition year," said Dan Peed, CEO of UPC Insurance. "Over the last year we significantly reduced our gross and net catastrophe exposures, which resulted in a materially reduced hurricane loss for the third quarter. We continue to take steps to improve our underlying profitability including increasing rates, strong exposure management and improved risk selection techniques, as we look forward to a return to a strong underwriting profit."

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.

Three Months Ended Nine Months Ended($ in thousands) September 30, September 30,

2021 2020 2021 2020

Net lossattributable to $ (14,322 ) $ (74,072 ) $ (55,603 ) $ (62,521 ) UIHC

Return on equitybased on GAAP net (15.8 ) % (58.6 ) % (20.4 ) % (16.5 ) %loss attributableto UIHC ^(1)



Core loss $ (15,453 ) $ (83,847 ) $ (59,459 ) $ (65,902 )

Core return on (17.0 ) % (66.3 ) % (21.8 ) % (17.4 ) %equity ^(1)(2)

(1) Return on equity for the three and nine-months ended September 30, 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 Three Months Ended Nine Months Endedthousands) September 30, September 30,

2021 2020 Change 2021 2020 Change

Loss ratio, 67.1 % 115.8 % (48.7 ) pts 75.7 % 74.8 % 0.9 ptsnet^(1)

Expenseratio, net^ 49.8 % 49.0 % 0.8 pts 48.2 % 46.3 % 1.9 pts(2)

Combinedratio (CR)^ 116.9 % 164.8 % (47.9 ) pts 123.9 % 121.1 % 2.8 pts(3)

Effect ofcurrentyear 24.1 % 74.2 % (50.1 ) pts 22.8 % 33.0 % (10.2 ) ptscatastrophelosses onCR

Effect ofprior yearunfavorable 1.3 % (2.2 ) % 3.5 pts 7.0 % (1.1 ) % 8.1 pts(favorable)developmenton CR

Underlyingcombined 91.5 % 92.8 % (1.3 ) pts 94.1 % 89.2 % 4.9 ptsratio^(4)

(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.

Quarterly Financial Results

Net loss attributable to the Company for the third quarter of 2021 was $14.3 million, or $0.33 per diluted share, compared to $74.1 million, or $1.73 per diluted share, for the third quarter of 2020. The increase in earnings 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 third 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 increased ceded premium earned as a result of the changes to the Company's quota share reinsurance agreements described below.

The Company's total gross written premium decreased by $43.3 million, or 11.8%, to $322.5 million for the third quarter of 2021, from $365.8 million for the third 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. 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 September 30,

2021 2020 Change $ Change %

Direct Written andAssumed Premium by Region ^(1)

Florida $ 185,178 $ 191,858 $ (6,680 ) (3.5 ) %

Gulf 62,757 73,804 (11,047 ) (15.0 )

Northeast 49,982 55,871 (5,889 ) (10.5 )

Southeast 24,464 36,496 (12,032 ) (33.0 )

Total direct written 322,381 358,029 (35,648 ) (10.0 ) premium by region

Assumed premium ^(2) 112 7,790 (7,678 ) (98.6 )

Total gross written $ 322,493 $ 365,819 $ (43,326 ) (11.8 ) %premium by region



Gross Written Premium by Line of Business

Personal property $ 258,109 $ 302,078 $ (43,969 ) (14.6 ) %

Commercial property 64,384 63,741 643 1.0

Total gross writtenpremium by line of $ 322,493 $ 365,819 $ (43,326 ) (11.8 ) %business

(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 decreased by $115.9 million, or 53.0%, to $102.8 million for the third quarter of 2021, from $218.7 million for the third quarter of 2020. Loss and LAE expense as a percentage of net earned premiums decreased 48.7 points to 67.1% for the third quarter of 2021, compared to 115.8% for the third quarter of 2020. Excluding catastrophe losses and reserve development, the Company's gross underlying loss and LAE ratio for the third quarter of 2021 would have been 18.1%, a decrease of 5.3 points from 23.4% during the third quarter of 2020.

Policy acquisition costs decreased by $11.8 million, or 20.1%, to $46.9 million for the third quarter of 2021, from $58.7 million for the third 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 volume of personal lines premium written which decreased quarter over quarter. This was partially offset by increased external management fees incurred during the third quarter of 2021 as a result of an increased volume of commercial written premium.

Operating and underwriting expenses remained relatively flat, decreasing by $0.9 million, or 6.2%, to $15.4 million for the third quarter of 2021, from $14.5 million for the third quarter of 2020

General and administrative expenses decreased by $5.3 million, or 27.6%, to $13.9 million for the third quarter of 2021, from $19.2 million for the third 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, during the third quarter of 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.

Three Months Ended Nine Months Ended($ inthousands) September 30, September 30,

2021 2020 Change 2021 2020 Change

Loss and LAE $ 102,769 $ 218,652 $ (115,883 ) $ 336,614 $ 423,182 $ (86,568 )

% of Grossearned 29.1 % 61.8 % (32.7 ) pts 31.6 % 40.6 % (9.0 ) ptspremiums

% of Netearned 67.1 % 115.8 % (48.7 ) pts 75.7 % 74.8 % 0.9 ptspremiums

Less:

Current yearcatastrophe $ 37,003 $ 140,002 $ (102,999 ) $ 101,225 $ 186,919 $ (85,694 ) losses

Prior yearreserveunfavorable 1,947 (4,213 ) 6,160 31,344 (6,165 ) 37,509 (favorable)development

Underlyingloss and LAE $ 63,819 $ 82,863 $ (19,044 ) $ 204,045 $ 242,428 $ (38,383 ) ^ (1)

% of Grossearned 18.1 % 23.4 % (5.3 ) pts 19.1 % 23.2 % (4.1 ) ptspremiums

% of Netearned 41.6 % 43.9 % (2.3 ) pts 45.9 % 42.8 % 3.1 ptspremiums

(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.

Three Months Ended Nine Months Ended

($ in thousands) September 30, September 30,

2021 2020 Change 2021 2020 Change

Policy acquisition $ 46,925 $ 58,735 $ (11,810 ) $ 129,073 $ 170,183 $ (41,110 ) costs

Operating and 15,429 14,483 946 42,133 38,164 3,969 underwriting

General and 13,940 19,224 (5,284 ) 42,934 53,646 (10,712 ) administrative

Total Operating $ 76,294 $ 92,442 $ (16,148 ) $ 214,140 $ 261,993 $ (47,853 ) Expenses

% of Gross earned 21.6 % 26.1 % (4.5 ) pts 20.1 % 25.1 % (5.0 ) ptspremiums

% of Net earned 49.8 % 49.0 % 0.8 pts 48.2 % 46.3 % 1.9 ptspremiums

Reinsurance Costs as a Percentage of Gross Earned Premium

Reinsurance costs as a percentage of gross earned premium for the three months ended September 30, 2021 and 2020 were as follows:

2021 2020

Non-at-Risk (0.8) % (2.2) %

Quota Share (23.9) % (13.6) %

All Other (31.9) % (30.9) %

Total Ceding Ratio (56.6) % (46.7) %

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 Choice Property & Casualty Insurance Company, Inc. (HCPIC) 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 HCPIC 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 HCPIC 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 decreased from $1.3 billion at December 31, 2020 to $1.2 billion at September 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 93.9% of total investments at September 30, 2021, compared to 94.5% at December 31, 2020. At September 30, 2021, our fixed maturity investments had a modified duration of 4.0 years, compared to 4.1 years at December 31, 2020.

Book Value Analysis

Book value per common share decreased 19.3% from $9.19 at December 31, 2020, to $7.42 at September 30, 2021. Underlying book value per common share decreased 16.4% from $8.96 at December 31, 2020 to $7.49 at September 30, 2021. A decrease in the Company's retained earnings as the result of a net loss for the nine months ended September 30, 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 nine months ended September 30, 2021.

($ in thousands, except for share and per share September data) 30, December 31, 2021 2020

Book Value per Share

Numerator:

Common stockholders' equity attributable to UIHC $ 320,411 $ 395,753

Denominator:

Total Shares Outstanding 43,207,390 43,075,877

Book Value Per Common Share $ 7.42 $ 9.19



Book Value per Share, Excluding the Impact of Accumulated Other Comprehensive Income (AOCI)

Numerator:

Common stockholders' equity attributable to UIHC $ 320,411 $ 395,753

Less: Accumulated other comprehensive income (3,006 ) 9,693 (loss)

Stockholders' Equity, excluding AOCI $ 323,417 $ 386,060

Denominator:

Total Shares Outstanding 43,207,390 43,075,877

Underlying Book Value Per Common Share^(1) $ 7.49 $ 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 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.

Conference Call Details

Date and November 11, 2021 - 5:00 P.M. ETTime:



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



To listen to the live webcast, please go to http://Webcast: 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=1507459&tp_key=c19a2bd5dd



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

The information in this press release should be read inPresentation: 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 Florida, Georgia, Louisiana, New York, North Carolina, South Carolina, and Texas. The Company also writes policies in Connecticut, Massachusetts, New Jersey, and Rhode Island 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" 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.

Consolidated Statements of Comprehensive Income (Loss)

In thousands, except share and per share amounts

Three Months Ended Nine Months Ended

September 30, September 30,

2021 2020 2021 2020

REVENUE:

Gross premiums $ 322,493 $ 365,819 $ 1,060,555 $ 1,140,653 written

Change in grossunearned 30,968 (11,828 ) 6,002 (97,904 ) premiums

Gross premiums 353,461 353,991 1,066,557 1,042,749 earned

Ceded premiums (200,190 ) (165,250 ) (621,877 ) (476,930 ) earned

Net premiums 153,271 188,741 444,680 565,819 earned

Net investment 3,471 6,010 10,737 18,834 income

Net realized 5,537 24,968 5,916 24,959 investment gains

Net unrealizedgains (losses) (3,293 ) (11,552 ) 1,709 (17,456 ) on equitysecurities

Other revenue 3,754 4,566 16,941 13,278

Total revenues $ 162,740 $ 212,733 $ 479,983 $ 605,434

EXPENSES:

Losses and lossadjustment 102,769 218,652 336,614 423,182 expenses

Policyacquisition 46,925 58,735 129,073 170,183 costs

Operating 15,429 14,483 42,133 38,164 expenses

General andadministrative 13,940 19,224 42,934 53,646 expenses

Interest expense 2,378 2,210 7,010 7,194

Total expenses 181,441 313,304 557,764 692,369

Loss before (18,701 ) (100,571 ) (77,781 ) (86,935 ) other income

Other income 101 18 126 60

Loss before (18,600 ) (100,553 ) (77,655 ) (86,875 ) income taxes

Benefit for (3,482 ) (26,685 ) (20,656 ) (24,933 ) income taxes

Net Loss $ (15,118 ) $ (73,868 ) $ (56,999 ) $ (61,942 )

Less: Net income(loss)attributable to (796 ) 204 (1,396 ) 579 noncontrollinginterests

Net Lossattributable to $ (14,322 ) $ (74,072 ) $ (55,603 ) $ (62,521 ) UIHC

OTHERCOMPREHENSIVE LOSS:

Change in netunrealized gains 2,401 27,884 (11,096 ) 52,106 (losses) oninvestments

Reclassificationadjustment for (5,537 ) (24,968 ) (5,916 ) (24,959 ) net realizedinvestment gains

Income taxbenefit(expense)related to items 744 (707 ) 4,108 (6,582 ) of othercomprehensiveloss

Totalcomprehensive $ (17,510 ) $ (71,659 ) $ (69,903 ) $ (41,377 ) loss

Less:Comprehensiveincome (loss) (844 ) 208 (1,601 ) 731 attributable tononcontrollinginterests

Comprehensiveloss $ (16,666 ) $ (71,867 ) $ (68,302 ) $ (42,108 ) attributable toUIHC



Weighted averageshares outstanding

Basic 42,971,535 42,893,205 42,940,458 42,853,364

Diluted 42,971,535 42,893,205 42,940,458 42,853,364



Earningsavailable toUIHC common stockholders pershare

Basic $ (0.33 ) $ (1.73 ) $ (1.29 ) $ (1.46 )

Diluted $ (0.33 ) $ (1.73 ) $ (1.29 ) $ (1.46 )



Dividendsdeclared per $ 0.06 $ 0.06 $ 0.18 $ 0.18 share

Consolidated Balance Sheets

In thousands, except share amounts

September 30, 2021

December 31, 2020

ASSETS

Investments, at fair value:

Fixed maturities, available-for-sale

$

884,940

$

940,011

Equity securities

29,407

7,445

Other investments

27,651

47,595

Total investments

$

941,998

$

995,051

Cash and cash equivalents

188,275

239,420

Restricted cash

32,782

62,078

Accrued investment income

3,983

4,680

Property and equipment, net

31,940

34,187

Premiums receivable, net

63,199

87,339

Reinsurance recoverable on paid and unpaid losses

1,351,731

821,156

Ceded unearned premiums

473,482

384,588

Goodwill

73,045

73,045

Deferred policy acquisition costs

77,679

74,414

Intangible assets, net

19,186

21,930

Other assets

71,286

51,053

Total Assets

$

3,328,586

$

2,848,941

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Unpaid losses and loss adjustment expenses

$

1,509,477

$

1,089,966

Unearned premiums

717,936

723,938

Reinsurance payable on premiums

336,113

241,636

Payments outstanding

135,760

77,912

Accounts payable and accrued expenses

72,563

91,173

Operating lease liability

2,038

2,311

Other liabilities

56,891

46,365

Notes payable, net

157,152

158,041

Total Liabilities

$

2,987,930

$

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; 43,362,943 and 43,250,731 issued, respectively; 43,207,390 and 43,075,877 outstanding, respectively

4

4

Additional paid-in capital

393,844

393,122

Treasury shares, at cost; 212,083 shares

(431

)

(431

)

Accumulated other comprehensive income (loss)

(3,006

)

9,693

Retained earnings

(70,000

)

(6,635

)

Total stockholders' equity attributable to UIHC stockholders

$

320,411

$

395,753

Noncontrolling interests

20,245

21,846

Total Stockholders' Equity

$

340,656

$

417,599

Total Liabilities and Stockholders' Equity

$

3,328,586

$

2,848,941

View source version on businesswire.com: https://www.businesswire.com/news/home/20211111006094/en/

CONTACT: United Insurance Holdings Corp. Jessica Strathman Deputy CFO (727) 895-7737 / jstrathman@upcinsurance.com OR The Equity Group Adam Prior Senior Vice-President (212) 836-9606 / aprior@equityny.com