EX-99.1 2 exh991er30june21.htm EX-99.1
Exhibit 99.1
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 Ended |  | Six Months Ended
June 30, |  | June 30,
| 2021 |  | 2020 |  | Change |  | 2021 |  | 2020 |  | Change
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 Ended |  | Six Months Ended
June 30, |  | June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
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 Ended |  | Six Months Ended
June 30, |  | June 30,
| 2021 |  | 2020 |  | Change |  | 2021 |  | 2020 |  | Change
Loss ratio, net(1) | 81.2 | % |  | 54.8 | % |  | 26.4 | pts |  | 80.2 | % |  | 54.2 | % |  | 26.0 | pts
Expense ratio, net(2) | 46.7 | % |  | 44.6 | % |  | 2.1 | pts |  | 47.3 | % |  | 45.0 | % |  | 2.3 | pts
Combined ratio (CR)(3) | 127.9 | % |  | 99.4 | % |  | 28.5 | pts |  | 127.5 | % |  | 99.2 | % |  | 28.3 | pts
Effect of current year catastrophe losses on CR | 27.7 | % |  | 16.1 | % |  | 11.6 | pts |  | 22.0 | % |  | 12.4 | % |  | 9.6 | pts
Effect of prior year unfavorable (favorable) development on CR | (0.3) | % |  | (0.4) | % |  | 0.1 | pts |  | 10.1 | % |  | (0.5) | % |  | 10.6 | pts
Underlying combined ratio(4) | 100.5 | % |  | 83.7 | % |  | 16.8 | pts |  | 95.4 | % |  | 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, |  |  |  |
|  | 2021 |  | 2020 |  | Change $ |  | Change %
Direct Written and Assumed Premium by Region (1) |  |  |  |  |  |  |  |
Florida |  | $ | 281,728 |  |  | $ | 263,108 |  |  | $ | 18,620 |  |  | 7.1 | %
Gulf |  | 67,290 |  |  | 74,083 |  |  | (6,793) |  |  | (9.2) |
Northeast |  | 49,879 |  |  | 55,189 |  |  | (5,310) |  |  | (9.6) |
Southeast |  | 27,483 |  |  | 35,206 |  |  | (7,723) |  |  | (21.9) |
Total direct written premium by region |  | 426,380 |  |  | 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 property |  | 155,982 |  |  | 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 Ended |  | Six Months Ended
June 30, |  | June 30,
2021 |  | 2020 |  | Change |  | 2021 |  | 2020 |  | Change
Loss and LAE | $ | 118,064 |  |  | $ | 101,693 |  |  | $ | 16,371 |  |  | $ | 233,845 |  |  | $ | 204,530 |  |  | $ | 29,315 |
% of Gross earned premiums | 33.1 | % |  | 29.5 | % |  | 3.6 | pts |  | 32.8 | % |  | 29.7 | % |  | 3.1 | pts
% of Net earned premiums | 81.2 | % |  | 54.8 | % |  | 26.4 | pts |  | 80.2 | % |  | 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 premiums | 21.9 | % |  | 21.1 | % |  | 0.8 | pts |  | 19.7 | % |  | 23.2 | % |  | (3.5) | pts
% of Net earned premiums | 53.7 | % |  | 39.2 | % |  | 14.5 | pts |  | 48.1 | % |  | 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 Ended |  | Six Months Ended
June 30, |  | June 30,
2021 |  | 2020 |  | Change |  | 2021 |  | 2020 |  | Change
Policy acquisition costs | $ | 41,327 |  |  | $ | 52,573 |  |  | $ | (11,246) |  |  | $ | 82,148 |  |  | $ | 111,448 |  |  | $ | (29,300) |
Operating and underwriting | 13,482 |  |  | 13,977 |  |  | (495) |  |  | 26,704 |  |  | 23,681 |  |  | 3,023 |
General and administrative | 13,112 |  |  | 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) | pts |  | 19.3 | % |  | 24.6 | % |  | (5.3) | pts
% of Net earned premiums | 46.7 | % |  | 44.6 | % |  | 2.1 | pts |  | 47.3 | % |  | 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:

| 2021 |  | 2020
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, 2021 |  | December 31, 2020
Book Value per Share |  |  |  |
Numerator: |  |  |  |
Common stockholders' equity attributable to UIHC |  | $ | 339,333 |  |  | $ | 395,753 |
Denominator: |  |  |  |
Total Shares Outstanding |  | 43,227,957 |  |  | 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 Outstanding |  | 43,227,957 |  |  | 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: |  | OR |  | INVESTOR RELATIONS:
United Insurance Holdings Corp. |  |  |  | The Equity Group
Jessica Strathman |  |  |  | Adam Prior
Deputy CFO |  |  |  | Senior Vice-President
(727) 895-7737 / jstrathman@upcinsurance.com |  |  |  | (212) 836-9606 / aprior@equityny.com

8

Exhibit 99.1
Consolidated Statements of Comprehensive Income (loss)
In thousands, except share and per share amounts

|  | Three Months Ended |  | Six Months Ended
|  | June 30, |  | June 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
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 earned |  | 356,433 |  |  | 344,139 |  |  | 713,096 |  |  | 688,758 |
Ceded premiums earned |  | (210,973) |  |  | (158,657) |  |  | (421,687) |  |  | (311,680) |
Net premiums earned |  | 145,460 |  |  | 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 securities |  | 2,438 |  |  | 20,552 |  |  | 5,002 |  |  | (5,904) |
Other revenue |  | 3,997 |  |  | 4,397 |  |  | 13,187 |  |  | 8,712 |
Total revenues |  | $ | 155,454 |  |  | $ | 216,397 |  |  | $ | 317,243 |  |  | $ | 392,701 |
EXPENSES: |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  | 118,064 |  |  | 101,693 |  |  | 233,845 |  |  | 204,530 |
Policy acquisition costs |  | 41,327 |  |  | 52,573 |  |  | 82,148 |  |  | 111,448 |
Operating expenses |  | 13,482 |  |  | 13,977 |  |  | 26,704 |  |  | 23,681 |
General and administrative expenses |  | 13,112 |  |  | 16,121 |  |  | 28,994 |  |  | 34,422 |
Interest expense |  | 2,257 |  |  | 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 income |  | 15 |  |  | 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 interests |  | 89 |  |  | 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 investments |  | 8,242 |  |  | 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 interests |  | 160 |  |  | 549 |  |  | (757) |  |  | 523 |
Comprehensive income (loss) attributable to UIHC |  | $ | (17,227) |  |  | $ | 45,308 |  |  | $ | (51,636) |  |  | $ | 29,759 |
Weighted average shares outstanding |  |  |  |  |  |  |  |
Basic |  | 42,950,666 |  |  | 42,860,922 |  |  | 42,924,662 |  |  | 42,833,225 |
Diluted |  | 42,950,666 |  |  | 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, 2021 |  | December 31, 2020
ASSETS |  |  |  |
Investments, at fair value: |  |  |  |
Fixed maturities, available-for-sale |  | $ | 841,105 |  |  | $ | 940,011 |
Equity securities |  | 31,176 |  |  | 7,445 |
Other investments |  | 60,078 |  |  | 47,595 |
Total investments |  | $ | 932,359 |  |  | $ | 995,051 |
Cash and cash equivalents |  | 276,382 |  |  | 239,420 |
Restricted cash |  | 42,791 |  |  | 62,078 |
Accrued investment income |  | 4,328 |  |  | 4,680 |
Property and equipment, net |  | 32,490 |  |  | 34,187 |
Premiums receivable, net |  | 96,665 |  |  | 87,339 |
Reinsurance recoverable on paid and unpaid losses |  | 927,427 |  |  | 821,156 |
Ceded unearned premiums |  | 592,974 |  |  | 384,588 |
Goodwill |  | 73,045 |  |  | 73,045 |
Deferred policy acquisition costs |  | 86,858 |  |  | 74,414 |
Intangible assets, net |  | 19,998 |  |  | 21,930 |
Other assets |  | 63,355 |  |  | 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 premiums |  | 748,904 |  |  | 723,938 |
Reinsurance payable on premiums |  | 538,217 |  |  | 241,636 |
Payments outstanding |  | 72,209 |  |  | 77,912 |
Accounts payable and accrued expenses |  | 70,648 |  |  | 91,173 |
Operating lease liability |  | 2,159 |  |  | 2,311 |
Other liabilities |  | 62,584 |  |  | 46,365 |
Notes payable, net |  | 157,154 |  |  | 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 capital |  | 393,524 |  |  | 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 interests |  | 21,089 |  |  | 21,846 |
Total Stockholders' Equity |  | $ | 360,422 |  |  | $ | 417,599 |
Total Liabilities and Stockholders' Equity |  | $ | 3,148,672 |  |  | $ | 2,848,941 |

10