UNITED INSURANCE HOLDINGS CORP. FILES (8-K) Disclosing Other Events

Item 8.01. Other Events.

Effective June 1, 2022, United Insurance Holdings Corp. (UIHC or UPC Insurance),
through its insurance subsidiaries American Coastal Insurance Company, Family
Security Insurance Company, Inc., Interboro Insurance Company, Journey Insurance
Company, and United Property & Casualty Insurance Company, renewed its
catastrophe reinsurance programs.

Highlights of these agreements are as follows:

Core Catastrophe (CAT) Reinsurance Program

•For 2022/23, UPC Insurance purchased approximately $2.524 billion of
occurrence-based limit in the aggregate, a decrease of $407.0 million, or 13.9%,
from the $2.931 billion of cascading aggregate limit purchased for its 2021/22
core catastrophe reinsurance program.
•Covers American Coastal Insurance Company, Journey Insurance Company, Family
Security Insurance Company, Inc. and United Property & Casualty Insurance
Company
•Perils covered include earthquake and windstorms named or numbered by the
National Hurricane Center
•Coverage is for Florida, Louisiana, and Texas only given the renewal rights
sale and 100% quota share reinsurance from HCI Group, Inc. for personal lines
exposure in Georgia, North Carolina, and South Carolina
•First and second event retention of $16.4 million per occurrence, an increase
of $1.4 million or 9.3%, from the $15.0 million retention for a first and second
event in the 2021/22 Core CAT program
•Moved from a cascading aggregate structure in 2021/22 to an occurrence-based
structure in 2022/23 with estimated first event limit of $1.929 billion and
second event limit of $594.9 million
•For the Florida Hurricane Catastrophe Fund (FHCF) Reimbursement Contracts
effective June 1, 2022, UPC Insurance elected 90% coverage for American Coastal
Insurance Company, Journey Insurance Company, Family Security Insurance Company,
Inc. and United Property & Casualty Insurance Company. The total mandatory FHCF
layer will provide approximately $1.4 billion of total Florida-only coverage
with varying retentions and limits among the separate FHCF contracts for each
participating insurer which inures to the benefit of the open market catastrophe
reinsurance program
•Includes approximately $166.5 million (90% of $185 million) of total
Florida-only limit from the Reinsurance to Assist Policyholders (RAP) program
•Sufficient coverage for approximately a 1-in-130-year event; and a
1-in-100-year event followed by a 1-in-50-year event in the same season

Interboro Insurance Company Catastrophe Reinsurance Program

•For 2022/23, Interboro Insurance Company purchased $187.6 million of
catastrophe reinsurance limit per occurrence, a decrease of $24.4 million or
11.5%, from the $212.0 million of limit per occurrence in 2021/22.
•Coverage is for all catastrophe perils written and assumed by Interboro in New
York
•First and second event retention of $3 million per occurrence is unchanged from
the 2021/22 program
•Aggregate limit of $245.2 million, a decrease of $28.8 million or 10.5%, from
the $274.0 million of aggregate limit in 2021/22
•Sufficient coverage for approximately a 1-in-130-year event; and a
1-in-100-year event followed by a 1-in-50-year event in the same season

Quota Share Reinsurance Program

•The quota share agreement covers United Property & Casualty Insurance Company,
Family Security Insurance Company, Inc. and American Coastal Insurance Company
•Renewed at 10.0% cession rate, a decrease of 5 points from the expiring cession
rate of 15.0% with the existing reinsurer
•Combined with the 8.0% cession rate effective December 31, 2021, the total
quota share cession rate for the 2022 wind season will be 18.0%
•The quota share agreements provide coverage for all catastrophe perils and
attritional losses

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UIHC Catastrophe Reinsurance Program Cost

•The total cost of UPC Insurance's 2022/23 catastrophe excess of loss programs
excluding potential reinstatement premium is approximately $374.7 million, a
decrease of $36.4 million or 8.9%, from the 2021/22 catastrophe excess of loss
reinsurance programs cost. The total cost of the 2022/23 catastrophe excess of
loss reinsurance programs is 32.7% of the March 31, 2022 in-force premium in the
covered states, a slight decrease from 32.9% of the March 31, 2021 in-force
premium for the 2021/22 catastrophe excess of loss reinsurance programs.

This Item 8.01 may contain forward-looking statements about our reinsurance
program and related attachment point, total coverage and costs. These statements
are subject to the Private Securities Litigation Reform Act of 1995 and are
based on management's estimates, assumptions and projections. These
forward-looking statements can generally be identified as such because the
context of the statement includes words such as estimate, expect or words of
similar nature. The actual changes to our reinsurance program and related
attachment point, total coverage and costs may differ materially from those
discussed in this report, depending on our reinsurers' capacity to pay claims
and related adjustment provisions in our agreements with the private reinsurers.