The following discussion and analysis of the Company’s financial condition and results of operations are provided in the unaudited Condensed Consolidated Financial Statements and related notes elsewhere on this Form 10-Q and in Part 3 of the Consolidated Financial Statements and related footnotes. must be read together. II. Item 8 of the Annual Report on Form 10-K for the year ended December 31, 2021This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed or implied in these forward-looking statements as a result of certain known and unknown risks and uncertainties. See “Forward-Looking Statements.”



United Insurance Holdings (In this document, we, us, us, the company, or UPC Insurance) is a holding company primarily engaged in personal and commercial property and casualty insurance business. usaThe Company operates primarily through three wholly-owned insurance subsidiaries. United General Insurance Company (UPC); American Coastal Insurance Company (ACIC); and interboro insurance company (IIC). Collectively, the holding company and all subsidiaries, including non-insurance subsidiaries, are referred to as “”.UPC Insurance” is our preferred brand identifier.

Our primary source of income is insurance solicitation.
florida, Louisiana, New York When texas. We also
Georgia, north carolina When south carolina If renewal rights are sold and all premiums and losses are ceded.effective April 1, 2022we will no longer write in the state of Massachusettsand effective January 15, 2022we will no longer write in the state of new jersey. effective January 1, 2021we will no longer write in the state of Hawaiiand effective December 1, 2021we no longer write in the state connecticut Also rhode island, but is licensed to write in all five states. Additionally, he is licensed to write property and casualty insurance in six states. However, in these states, it has not started or is not writing.

upon August 25, 2022announced that the UPC has submitted plans for withdrawal in the following states florida, LouisianaWhen texas intended to submit a plan of withdrawal in the state of New YorkIn these states, all plans submitted are accompanied by a non-renewal personal line policy. This action effectively puts UPCs on an orderly runoff as long as they comply with each state’s rules and regulations. In addition, we announced that: Demotech Co., Ltd.an insurance rating agency, has notified UPC of its intention to withdraw UPC’s financial stability rating.

The Company entered into a Renewal Rights Agreement (Southeast Renewal Agreement) on March 1, 2018 with its wholly-owned subsidiaries UPC and United Insurance Management LC (UIM). December 30, 2021 When Homeowners Choice Property and Casualty, Inc. (HCPCI), the Company, UPC and UIM have agreed to sell, and HCPCI has agreed to purchase, renewal rights to UPC’s Individual Homeowners Business. Georgia, south carolina When north carolinaTransfer of policy is subject to regulatory approval.effective
June 1, 2022started the migration south carolina Policy to HCPCI.The sale was completed on December 30, 2021.

effective June 1, 2022entered into a quota share reinsurance agreement with
TypTap Insurance Company (Typtap) In connection with the Southeastern Renewal Agreement. Under the terms of this Agreement, we assign 100% of our new and renewed policies in effect in the following states: Georgia, north carolinaWhen south carolinaThis agreement replaces the 85% quota share agreement with HCPCI in effect. December 31, 2021Also effective June 1, our third-party quotashare reinsurance contracts were updated to exclude these states. We do not hold any risks associated with these conditions.

The Company has entered into a Northeast Renewal Agreement jointly with its wholly-owned subsidiaries, UPC and UIM. January 18, 2021 When HCPCI and HCI Group, Inc. (HCI), the Company, UPC and UIM have agreed to sell and HCPCI has agreed to purchase. connecticut, Massachusetts, new jersey When rhode islandAll state transfers completed at . June 30, 2022.

effective June 1, 2021, entered into Quota Share Reinsurance Agreements with HCPCI and TypTap in connection with the Northeast Renewal Agreement. Under the terms of this Agreement, we assign 100% of our new and renewed policies in effect in the following states: connecticut, new jersey, MassachusettsWhen rhode islandThe transfer of these policies is 50% to HCPCI and 50% to TypTap.


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                        UNITED INSURANCE HOLDINGS CORP.

We have historically grown our business through strong organic growth, complemented by strategic acquisitions and partnerships. AmCo Holding Company, LLC (AMCO) and its subsidiaries, including ACIC April 2017in the IIC April 2016When Family Security Holdings, LLC (FSH), including its subsidiaries Kazoku Anshin Insurance Co., Ltd. (FSIC), at
February 2015and strategic partnerships with subsidiaries Tokyo Marine Kiln Group Co., Ltd. (Tokio Marine) travel insurance company at (JIC) August 2018. effective June 1, 2022, JIC was integrated into ACIC, making ACIC the surviving company.effective May 31, 2022FSIC was merged into UPC, making UPC the surviving entity.

As a result of the underwriting process, which took place from the fourth quarter of 2020 through 2021, rhode island, connecticut,
new jersey, Massachusetts When south carolina Our in-force business decreased by 42.5% from 525,969 in-force policies in line with the increase in policies into HCPCI. September 30, 2021
to 302,296 active policies in September 30, 2022.

The following discussion highlights key factors affecting our consolidated financial position and results of operations. UPC Insurance• In evaluating our operating results, we use premiums written and earned, business in force, new business and renewals by geographic concentration. We also consider the impact of catastrophe losses and prior year developments on our loss ratio, expense ratio and combined ratio. Use credit quality, investment income, cash flow, realized gains and losses, unrealized gains and losses, asset diversification, and portfolio duration when monitoring investments. We consider liquidity, financial strength, ratings, book value per share, and return on equity to assess financial condition.

Impact of COVID-19

During the three and nine months ended, COVID-19 did not have a material impact on business operations, financial position, liquidity or ability to serve policyholders. September 30, 2022Additionally, the COVID-19 pandemic and the resulting global turmoil will have a material impact on access to the credit and capital markets necessary to maintain sufficient liquidity for our ongoing operating needs during the fourth quarter. did not give
September 30, 2022.

Additionally, in the fourth quarter of 2021, we have introduced a new flexible work policy. This policy allows all employees to work remotely permanently, and at this time can return to the office fully voluntarily. We will continue to respond to his COVID-19 pandemic and will take reasonable steps to ensure that our customers continue to receive uninterrupted service.


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                        UNITED INSURANCE HOLDINGS CORP.

2022 Highlights
                                Three Months Ended September        Nine Months Ended September 30,
                                     2022             2021               2022               2021

Gross premiums written         $    255,203        $ 322,493      $       894,824       $ 1,060,555
Gross premiums earned               301,896          353,461              926,860         1,066,557
Net premiums earned                 116,187          153,271              328,449           444,680
Total revenues                      123,788          162,740              341,947           479,983
Earnings before income tax          (70,797)         (18,600)            (148,009)          (77,655)
Consolidated net loss
attributable to UIHC                (70,884)         (14,322)            (173,085)          (55,603)
Net loss available to UIHC
stockholders per diluted share $      (1.65)       $   (0.33)     $         (4.02)      $     (1.29)

Reconciliation of net loss to
core loss:

Plus: Non-cash amortization of
intangible assets and goodwill
impairment (1)                 $     14,381        $     812      $        16,005       $     2,744
Less: Realized gains on
investment portfolio                     (9)           5,537               (1,856)            5,916
Less: Unrealized gains
(losses) on equity securities        (2,518)          (3,293)              (9,870)            1,709
Less: Net tax impact (2)              3,551             (301)               5,824            (1,025)
Core loss (3) (4)                   (57,527)         (15,453)            (151,178)          (59,459)
Core loss per diluted share(3)
(4)                            $      (1.34)       $   (0.36)     $         (3.51)      $     (1.38)

Book value per share                                              $          1.86       $      7.42

(1) for both the 3-month and 9-month periods that ended; September 30, 2022non-cash amortization of intangibles includes: $13,570,000 Relates to goodwill impairments attributable to our personal business segment. (2) To reconcile net loss to measure core loss, we used a 21% corporate federal tax rate and included the tax effect of all adjustments. (3) Terminated 3 months and 9 months September 30, 2022including iron loss
$13,851,000 When $57,511,000, respectively, the tax expense associated with the recognition of our valuation allowance. (4) Iron loss, non-standard measure we Generally accepted accounting principles (GAAP) are reconciled to net loss, which is the most directly comparable GAAP measure. Additional information regarding the non-GAAP financial measures presented on this Form 10-Q is provided below under “Definitions of Non-GAAP Measures”.


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