Financial Performance - Gross premiums written for Q3 2022 were $255.2 million, a decrease of 20.8% from $322.5 million in Q3 2021[159]. - Net premiums earned for Q3 2022 were $116.2 million, down 24.2% from $153.3 million in Q3 2021[159]. - Total revenues for Q3 2022 were $123.8 million, a decline of 24% compared to $162.7 million in Q3 2021[159]. - Consolidated net loss attributable to United Insurance Holdings Corp. for Q3 2022 was $(70.9) million, compared to a net loss of $(14.3) million in Q3 2021[159]. - The combined ratio for the three months ended September 30, 2022, was 165.4%, significantly higher than 116.9% for the same period in 2021[1]. - Net losses attributable to United Insurance Holdings Corp. for Q3 2022 increased by $56,562,000, or 394.9%, resulting in a net loss of $70,884,000 compared to a net loss of $14,322,000 in Q3 2021[198]. - Gross written premiums decreased by $67,290,000, or 20.9%, to $255,203,000 in Q3 2022 from $322,493,000 in Q3 2021, primarily due to the transition of the Northeast business to HCPCI[199]. Policy and Operations - Policies in-force decreased by 42.5% from 525,969 at September 30, 2021, to 302,296 at September 30, 2022[154]. - New and renewal policies in Florida dropped by 19,614 to 35,310 in Q3 2022 compared to 54,924 in Q3 2021, reflecting a total decline of 66,524 policies across all regions[201]. - Total new and renewal homeowner and dwelling fire policies decreased by 66,337, or 49.1%, to 68,858 for the three months ended September 30, 2022, compared to 135,195 for the same period in 2021[212]. - The company announced plans for withdrawal from Florida, Louisiana, Texas, and New York, leading to an orderly run-off of personal lines policies[148]. Expenses and Losses - Total expenses for Q3 2022 increased by $13,129,000, or 7.2%, to $194,570,000 from $181,441,000 in Q3 2021, driven by higher loss and LAE expenses[202]. - Losses and loss adjustment expenses for the three months ended September 30, 2022, were $117.2 million, an increase of 14.0% from $102.8 million for the same period in 2021[1]. - Loss and LAE expenses rose by $14,459,000, or 14.1%, to $117,228,000 in Q3 2022, with the loss ratio as a percentage of net earned premiums increasing by 33.8 points to 100.9%[204]. - General and administrative expenses surged by $12,451,000, or 89.3%, to $26,391,000 in Q3 2022, largely due to a goodwill impairment of $13,569,000[208]. Reinsurance and Catastrophe Losses - The company entered into a quota share reinsurance agreement ceding 100% of policies in Georgia, North Carolina, and South Carolina effective June 1, 2022[150]. - The company's reinsurance program for the 2022 hurricane season included catastrophe excess of loss reinsurance protection up to $2,500,000 million[177]. - After Hurricane Ian, the company retained an additional loss of $20,100 million, with approximately $891 million of occurrence limit remaining for Ian[178]. - The total incurred catastrophe losses for the three months ended September 30, 2022, amounted to $37,440,000, with a combined ratio impact of 32.2%, compared to $37,003,000 and 24.1% in 2021[188]. Investment and Market Risks - Cash, cash equivalents, restricted cash, and investment portfolio totaled $768.6 million at September 30, 2022, down from $964.8 million at December 31, 2021[1]. - The Federal Reserve's interest rate hikes may negatively affect the market value of the company's investment portfolio[196]. - The company is exposed to market risks, including interest rate risk, credit risk, and equity price risk[285]. - No material changes in market risk were reported during the nine months ended September 30, 2022[285]. Segment Performance - Gross written premiums for the personal lines operating segment decreased by $79,773,000, or 30.9%, to $178,336,000 in Q3 2022 from $258,109,000 in Q3 2021[210]. - Pre-tax earnings for the commercial lines operating segment decreased by $8,434,000, or 82.7%, to $1,762,000 for the three months ended September 30, 2022, from $10,196,000 for the same period in 2021[220]. - Gross written premiums for the commercial lines segment increased by $12,483,000, or 19.4%, to $76,867,000 for the third quarter ended September 30, 2022, from $64,384,000 for the same period in 2021[221]. - Loss and LAE attributable to the personal lines segment decreased by $54,151,000 or 18.3%, to $242,133,000 for the nine months ended September 30, 2022, compared to $296,284,000 in 2021[251].

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $69 million or $1.60 per share, compared to a net loss of $23.5 million or $0.55 per share in the previous year [17] - The core loss was $64.3 million or $1.49 per share, compared to a core loss of $24.6 million or $0.57 per share a year ago [17] - Gross premiums written for the quarter were $360.1 million, a decline of $66.3 million or approximately 16% [18] - Gross premiums earned decreased by about 14% to $305.8 million [18] - Operating expenses were $56.5 million, a decrease of $11.4 million or almost 17% year-over-year [21] Business Line Data and Key Metrics Changes - In personal lines, gross earned premiums were down by 14%, primarily due to the sale of Southeast renewal rights, while net earned premiums decreased by 23% [8] - The personal lines portfolio's total insured value (TIV) decreased by 16% year-over-year, and the hurricane probable maximum loss (PML) was down approximately 24% [8] - The commercial lines business wrote $181 million of gross written premium, surpassing personal lines for the first time, which wrote $179 million [11] - The combined ratio for commercial lines was 61.5%, with an underlying combined ratio of 70.2%, down from 72.4% in the first quarter of 2022 [11] Market Data and Key Metrics Changes - The total number of lawsuits in Florida has decreased from peak rates in June and July of 2021, indicating a potential improvement in the litigation environment [12] - The company anticipates continued growth of 20% or more in commercial lines for at least the next 12 to 18 months [11] Company Strategy and Development Direction - The company has restructured its personal and commercial lines businesses to simplify its structure from five writing companies to three, aiming to reallocate capital and reduce expenses [7] - The focus remains on derisking the personal lines portfolio while enhancing underwriting performance through rate increases and risk selection [10][14] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation and excessive litigation continue to impact claims severity, leading to poor underwriting performance in personal lines [9][14] - The Florida residential market is expected to remain challenging due to a skeptical capital and reinsurance market, elevated catastrophe activity, and ongoing litigation issues [15] Other Important Information - The company recorded a valuation allowance against 100% of its deferred tax asset due to uncertainty about utilizing its net operating loss carryforward [18] - Demotech downgraded the company's rating from A to M, while subsidiaries continue to hold strong ratings [13] Q&A Session Summary - No specific questions or answers were recorded in the provided content, indicating the end of the teleconference and webcast [23]

Financial Performance - Gross premiums written for Q2 2022 were $360.146 million, down 15.5% from $426.424 million in Q2 2021[153]. - Net premiums earned for Q2 2022 were $111.405 million, a decrease of 23.4% compared to $145.460 million in Q2 2021[153]. - Total revenues for Q2 2022 were $115.793 million, down 25.5% from $155.454 million in Q2 2021[153]. - Consolidated net loss attributable to the company for Q2 2022 was $(69.029) million, compared to $(23.510) million in Q2 2021[153]. - The combined ratio for Q2 2022 was 131.6%, an increase from 127.9% in Q2 2021[1]. - The underlying combined ratio, excluding current year catastrophe losses, was 106.2% for Q2 2022, compared to 100.5% in Q2 2021[1]. - Total expenses for Q2 2022 were $148.969 million, down from $188.242 million in Q2 2021[1]. - The return on equity based on GAAP net loss was (72.2)% for the six months ended June 30, 2022[1]. - Net losses attributable to United Insurance Holdings Corp. for Q2 2022 increased by $45,519,000, or 193.6%, resulting in a net loss of $69,029,000 compared to a net loss of $23,510,000 in Q2 2021[192]. - Net losses attributable to the company for the six months ended June 30, 2022 increased by $60,920,000, or 147.6%, to a net loss of $102,201,000 from $41,281,000 for the same period in 2021[228]. Premiums and Policies - Policies in-force decreased by 39.4% from 568,732 at June 30, 2021, to 344,522 at June 30, 2022[148]. - Gross written premiums decreased by $66,278,000, or 15.5%, to $360,146,000 in Q2 2022 from $426,424,000 in Q2 2021, primarily due to the transition of the Northeast business to HCPCI[193]. - Direct written premiums in Florida increased by $7,823,000, while the Gulf region saw a decrease of $10,551,000 and the Northeast region experienced a significant decline of $52,897,000[194]. - New and renewal policies written in Q2 2022 totaled 85,947, a decrease of 63,622 from 149,569 in Q2 2021[196]. - Total new and renewal homeowner and dwelling fire policies decreased by 63,394, or 43.0%, to 83,976 for the three months ended June 30, 2022, compared to 147,370 for the same period in 2021[207]. - New and renewal policies written in Florida decreased by 32,546 to 80,849 for the six months ended June 30, 2022 compared to 113,395 for the same period in 2021[231]. Expenses and Costs - Total expenses for Q2 2022 decreased by $39,273,000, or 20.9%, to $148,969,000 from $188,242,000 in Q2 2021, mainly due to a reduction in loss and LAE expenses[197]. - Loss and LAE expenses decreased by $27,990,000, or 23.7%, to $90,074,000 in Q2 2022, with the loss ratio as a percentage of net earned premiums decreasing to 80.9% from 81.2% in Q2 2021[200]. - Policy acquisition costs decreased by $12,339,000, or 29.9%, to $28,988,000 in Q2 2022, primarily due to reductions in agent commissions and premium taxes[201]. - General and administrative expenses increased by $1,382,000, or 10.5%, to $14,494,000 in Q2 2022, driven by higher external fees for legal and audit services[202]. - Total operating expenses for the personal lines segment decreased by $14,785,000, or 31.3%, to $32,436,000 for the second quarter of 2022, from $47,221,000 for the same period in 2021[212]. - Total expenses for the personal lines segment decreased by $71,459,000, or 24.1%, to $225,311,000 for the six months ended June 30, 2022[244]. Investments and Cash Flow - Cash, cash equivalents, restricted cash, and investment portfolio totaled $898.379 million at June 30, 2022, compared to $964.844 million at December 31, 2021[1]. - Total investments increased from $581,233 million to $719,566 million, representing a growth of 23.8%[166]. - Cash inflows from operating activities were $8,286,000 for the six months ended June 30, 2022, compared to cash outflows of $28,261,000 for the same period in 2021[267]. - Net sales of investments totaled $83,661,000 for the six months ended June 30, 2022, compared to $54,649,000 for the same period in 2021[268]. - Cash used in financing activities increased by $15,443,000 to $21,685,000 for the six months ended June 30, 2022, from $6,242,000 for the same period in 2021[269]. Reinsurance and Catastrophe Losses - The company entered into a quota share reinsurance agreement ceding 100% of policies in Georgia, North Carolina, and South Carolina effective June 1, 2022[143]. - Catastrophe excess of loss reinsurance protection was purchased up to an exhaustion point of approximately $2,500,000,000 for the 2022 hurricane season[170]. - The company’s reinsurance program is designed to address exposure to catastrophe losses, with a defined loss threshold of $25,000,000 for ISO catastrophes[169]. - The combined ratio impact for personal lines from current period catastrophe losses incurred was 38.6% for the three months ended June 30, 2022, compared to 36.8% for the same period in 2021[182]. - The company reported a total of 16 catastrophe loss events for the three months ended June 30, 2022, with incurred losses of $20,553,000, resulting in a combined ratio impact of 18.4%[181]. Market Conditions and Economic Impact - The company did not experience a material impact from COVID-19 on its operations or financial position during the six months ended June 30, 2022[150]. - Inflation in the U.S. reached 8.6% during the first half of 2022, impacting premium rates and resulting in higher loss and LAE expenses[189].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________ FORM 10-Q _______________________ ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 001-35761 ____________________ United Insurance Holdings Corp. (Exact Name of ...

Financial Data and Key Metrics Changes - The company reported a core loss of $29.3 million for Q1 2022, reflecting a reduced net earned premium and elevated catastrophe losses from 10 PCS events [4] - Gross earned premium decreased by approximately 10% year-over-year, primarily due to the sale of Northeast renewal rights [4] - Net earned premium declined just over 30%, attributed to 100% quota share treaties related to the sale of Northeast and Southeast renewal rights [5] - GAAP net loss was $33.2 million or $0.77 per share, compared to a net loss of $17.8 million or $0.41 per share last year [12] - Ceding ratios increased from 59% to 68%, with quota share up 5.8 points [6] Business Line Data and Key Metrics Changes - In personal lines, average rate increases of 17.9% were achieved in Q1 2022, on top of 11.5% in 2021 [7] - The Commercial Lines portfolio generated a pre-tax income of $11.6 million for the quarter, with premiums up by 22.7% year-to-date [8] - The non-CAT loss ratio slightly decreased from 32.4% to 32.3%, while CAT loss ratio significantly dropped from 29% to 13% [6][7] Market Data and Key Metrics Changes - The company continues to see a significant reduction in the number of initial lawsuits in Florida, although pre-suit notifications of intent to litigate are increasing [9][10] - The company is progressing towards a 50-50 balance between personal lines and commercial lines, moving from 63-37 to 61-39 [9] Company Strategy and Development Direction - The company is focused on de-risking and deleveraging its portfolio, resulting in decreased gross and net earned premiums [10] - Continued compounding rate actions and risk selection are being implemented, with expectations for rate increases to persist through at least mid-2023 [11] - The company is working on merging Journey Insurance Company into American Coastal Insurance Company to better allocate capital [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter results reflect the transition to de-risk and deleverage the portfolio, with elevated catastrophe losses impacting performance [10] - There is uncertainty regarding the excessive litigation in Florida, but a growing consensus exists that legislative action is needed to address the issue [36][37] - Management expressed optimism about the Commercial Lines business, which is positioned for profitable growth in a challenging market [11] Other Important Information - The company received regulatory approval to terminate its intercompany pooling agreement, enhancing its ability to raise additional capital [24] - Total assets as of March 31, 2022, were $2.4 billion, with cash and investments of approximately $909 million [23] Q&A Session Summary Question: What is the expected rate of change in the shrinkage of policy count? - Management indicated that a personal line adjusted decline of 6.6% is likely in line with the run rate, but premium will not drop at the same rate due to rate increases [27] Question: Can you provide insight into reinsurance costs as a percentage of gross earned premium? - Management refrained from commenting on future costs due to ongoing negotiations and uncertainty surrounding the Florida special session [30] Question: What items are on the agenda for the upcoming special session in Florida? - Management mentioned potential changes to the Florida Hurricane Catastrophe plan and issues related to roof covering and litigation [34]

Business Operations and Financial Performance - The company did not experience a material impact from COVID-19 on its business operations or financial position for the year ended December 31, 2021[18]. - Personal residential property policies generated written premium of $884,019,000, accounting for 66.5% of total gross written premium in 2021[30]. - Commercial policies produced written premium of $422,238,000, representing 31.8% of total gross written premium in 2021[34]. - The total number of policies in-force decreased to 471,724 in 2021 from 630,991 in 2020, reflecting a strategic focus on lower exposure to loss activity[43]. - The total insured value (TIV) of all policies in-force was $310,181,753 in 2021, down from $377,039,094 in 2020[46]. - The company increased rates in each state where actuarial data supported a rate change, aiming to enhance profitability[22]. - Financial leverage was reported at 33% as of December 31, 2021, indicating a conservative financial approach[25]. - The investment portfolio had a fair value of $719,566,000 at December 31, 2021, down from $995,051,000 at December 31, 2020[26]. - Approximately 43.3% of the company's policies in-force and 52.3% of total insured value were concentrated in Florida as of December 31, 2021, highlighting the geographical risk exposure[99]. - The relationship with Allstate Insurance Company accounted for approximately 13.5% of gross personal lines written premium for the year ended December 31, 2021, emphasizing reliance on key partnerships[108]. - The company's exposure in Louisiana and Texas represented approximately 23.3% of policies in-force and 15.7% of total insured value as of December 31, 2021, indicating significant regional risk[103]. - The company faces increased costs of claims due to one-way attorney fees in Florida, which could impact future financial performance[102]. Technology and Innovation - The company launched a direct-to-consumer platform in 2021, allowing customers to quote and bind policies online[41]. - The company utilizes proprietary inspection technology and risk scoring to enhance risk selection during the underwriting process[22]. - The company has made substantial investments in new technology to gain a competitive advantage in the insurance market[50]. - The company has experienced threats to its data and information technology systems, including malware and unauthorized access, which could lead to significant reputational damage and financial losses[119]. - The company relies on third-party vendors for critical services, and any failure or disruption from these vendors could adversely affect its operations and financial condition[123]. - The company is subject to evolving privacy and cybersecurity laws, which impose significant compliance costs and could restrict service offerings[121]. Human Resources and Diversity - As of December 31, 2021, the company employed 472 individuals, with 203 in Claims, 96 in the Client Experience Center, and 9 in Underwriting[80]. - The gender diversity among Executive Officers was 42.9%, with a change of 28.6 points from December 31, 2020, while racial diversity was 28.6% with a change of 14.3 points[81]. - United Insurance Holdings Corp. reported a voluntary attrition rate of 20.2% for the year ended December 31, 2021, indicating the effectiveness of its employee retention initiatives[86]. - The company’s ability to attract and retain senior management is critical, as the loss of key executives could adversely affect its business and financial condition[124]. Regulatory and Compliance Risks - The company is subject to extensive regulation primarily at the state level, affecting areas such as insurer solvency and rate setting[51]. - The insurance industry is heavily regulated, and further restrictive regulations may reduce profitability and limit growth[145]. - Compliance with state regulations is critical, as failure to comply may materially affect operations and financial condition[148]. - The company may face increased compliance costs due to changes in insurance laws or regulations, which could adversely affect results of operations and future growth prospects[154]. Investment and Financial Strategy - The company has invested $3,364,000 in a BlackRock ESG exchange-traded fund as of December 31, 2021[75]. - The company aims to achieve net-zero carbon emissions in its operations and through its value chain by no later than 2030[75]. - The investment policy limits investments in non-investment grade debt securities and restricts the type and concentration of investments[333]. - The investment portfolio is primarily in fixed income securities, and changes in interest rates can negatively impact net investment income and fair value[162]. - The company’s investment strategy includes diversifying its portfolio to mitigate credit risk[337]. - The company’s equity investments are primarily managed through industry and issuer diversification[340]. Risk Management - The inherent uncertainty in estimating loss reserves could lead to overstatement of earnings if actual claims exceed reserves, posing a financial risk[112]. - The company remains primarily liable for claims despite using reinsurance, exposing it to counterparty risk if reinsurers dispute claims or face financial difficulties[158]. - Market conditions beyond the company's control can affect the availability and cost of reinsurance, potentially leading to increased risk exposure[156]. - Legal actions and emerging claims may increase litigation costs and loss exposure, potentially impacting operating results and financial condition[169]. - A downgrade in financial strength ratings could adversely impact business volume and access to additional financing[173]. - The company is subject to assessments levied by governmental entities, which may adversely affect results of operations in specific reporting periods[114]. Corporate Governance - The company has registered up to 101,000,000 of its securities authorized for issuance, which could lead to substantial dilution for existing stockholders[177]. - The ability to pay dividends is uncertain and may be constrained by the holding company structure, affecting liquidity and obligations[178]. - As of December 31, 2021, R. Daniel Peed beneficially owned approximately 32% of the company's common stock, allowing him significant control over corporate decisions[182]. - The company is subject to restrictive covenants that may limit opportunities for expansion and growth potential in the commercial property insurance market[183].

Financial Data and Key Metrics Changes - Core income improved year-over-year from a loss of $58 million in Q4 2020 to a loss of $1 million in Q4 2021, and quarter-over-quarter from a loss of $15.5 million in Q3 2021 to a loss of $1 million in Q4 2021 [6] - GAAP net loss for Q4 2021 was $2.3 million or $0.05 per share, compared to a loss of $33.9 million or $0.79 per share in the previous year [13] - Ceded earned premiums increased by $32.4 million or 20% year-over-year to $196.8 million due to more business being ceded via reinsurance programs [16] Business Line Data and Key Metrics Changes - Personal lines premium mix improved from 75% to 63% in 2021, with a target of achieving a 50-50 balance with commercial lines in three years [8] - Commercial lines premium ended the year up nearly 20%, with exposure approximately flat [10] - Average rate increases in personal lines were 11.3% in Q4 and 11.5% for the year 2021, with expectations for continued significant rate increases throughout 2022 [9] Market Data and Key Metrics Changes - The company has reduced personal lines total insured value (TIV) by 44% through the sale of renewal rights and ongoing exposure management [8] - The underlying loss and loss adjustment expense was $76.5 million, down $1.6 million or 2% year-over-year, resulting in an underlying net loss ratio of 52.7% [18] Company Strategy and Development Direction - The company aims to achieve a balanced risk portfolio between personal and commercial lines, with ongoing exposure management and risk selection [11] - The strategic plan includes a focus on underwriting profitability in 2022 and targeted return on equity (ROE) in the mid-teens by 2023 [7][32] - The company is transitioning away from certain regions, impacting gross premiums earned and net premiums earned [30] Management Comments on Operating Environment and Future Outlook - Management noted a downward trend in the frequency of new lawsuits filed in Florida, which may improve the operating environment [21] - The company is actively monitoring legislative changes in Florida that could impact the homeowners market [26][27] - Management expressed confidence in achieving underwriting profit in 2022, with a focus on de-risking and deleveraging the portfolio [32] Other Important Information - Total assets were reported at $2.7 billion, with cash and investments of $965 million [23] - Operating expenses decreased by 26% year-over-year to $72.9 million, driven by higher ceding commission income [22] Q&A Session Summary Question: Insights on Florida homeowners market legislative changes - Management noted a reduction in new litigant lawsuits and mentioned ongoing monitoring of legislative proposals that could improve the environment [26][27] Question: Underwriting actions for 2022 and 2023 - Management highlighted approximately 60 material underwriting actions taken over the last 18 months, including improved assessment of roof conditions and withdrawal from non-scalable products [28][29] Question: ROE targets and expectations for 2022 - Management confirmed ROE targets in the mid-teens by 2023, with a focus on achieving underwriting profit in 2022 [32] Question: Impact of reinsurance and modeling underlying loss ratio - Management indicated that the June 1 reinsurance renewal will be key for 2022, with expectations to fare better than most regarding potential cost increases [33][34] Question: Expected RBC levels and capital contributions - Management stated that all carriers are expected to have RBC in excess of 300%, with some needing additional capital contributions prior to filing annual statements [35]

COVID-19 Impact - The company has not experienced a material impact from COVID-19 on its business operations or financial position as of September 30, 2021[34]. - There were no material claims or significant disruptions to the business for the three and nine months ended September 30, 2021[35]. - The company continues to respond to the COVID-19 pandemic and is taking measures to ensure uninterrupted service to customers[35]. - The company has not experienced a material impact from COVID-19 on its business operations or financial position as of September 30, 2021[146]. Financial Performance - Net investment income for the three months ended September 30, 2021, was $3,471 million, compared to $6,010 million for the same period in 2020[47]. - Total revenues for the three months ended September 30, 2021, were $162,740, a decline of 23.5% compared to $212,733 for the same period in 2020[150]. - Consolidated net income attributable to UIHC for the three months ended September 30, 2021, was a loss of $14,322, compared to a loss of $74,072 for the same period in 2020[150]. - The book value per share decreased to $7.42 from $10.54 year-over-year[149]. - The loss ratio for the three months ended September 30, 2021, was 67.1%, significantly improved from 115.8% for the same period in 2020[150]. - The combined ratio for the three months ended September 30, 2021, was 116.9%, down from 164.8% for the same period in 2020[150]. - Core income loss per diluted share for the three months ended September 30, 2021, was $(0.36), compared to $(1.95) for the same period in 2020[149]. - The company reported a total stock-based compensation expense of $495,000 for the nine months ended September 30, 2021, compared to $582,000 for the same period in 2020, reflecting a decrease of approximately 15%[129]. - The company incurred $336,614 in total losses during the nine months ended September 30, 2021, compared to $423,182 in the same period of 2020, reflecting a decrease of 20.5%[90]. Investment Portfolio - Total fixed maturities as of September 30, 2021, amounted to $884,940 million, with a gross unrealized loss of $11,073 million[41]. - The estimated fair value of total equity securities as of September 30, 2021, was $29,407 million, representing a significant increase from $7,445 million as of December 31, 2020[42]. - The fair value of total investments as of September 30, 2021, was $922,765 million, with $884,940 million classified as fixed maturities[60]. - The company holds 646 fixed maturities securities, with a gross unrealized loss of $10,804 million, indicating a significant portion of its portfolio is underperforming[52]. - The fair value of U.S. government and agency securities was $102,216 million as of September 30, 2021, down from $130,425 million at December 31, 2020[60]. - Approximately 85.8% of fixed maturities were U.S. Treasuries or corporate bonds rated "A" or better as of September 30, 2021[162]. - The company decreased its equity portfolio from 9.1% of total invested assets at June 30, 2020, to 0.6% at December 31, 2020, and began increasing investments in equities in Q1 2021[163]. Reinsurance and Losses - During the nine months ended September 30, 2021, the company ceded $91,127,000 in reinsurance, incurring reinstatement premiums of $14,732,000 due to Winter Storm Uri[83]. - The company’s excess of loss treaty provides coverage for catastrophe losses up to approximately $2,900,000,000, with a maximum retention of $31,000,000[82]. - Reinsurance recoverable on unpaid losses increased to $1,153,799 as of September 30, 2021, compared to $674,746 on December 31, 2020, reflecting a significant rise of 70.8%[88]. - The total reserve for unpaid losses and loss adjustment expenses (LAE) at September 30, 2021, was $1,509,477, up from $1,082,126 at the end of 2020, indicating a growth of 39.4%[90]. - The net balance for unpaid losses decreased to $355,678 as of September 30, 2021, from $380,411 in the previous year, a decline of 6.5%[90]. - The company experienced adverse development in 2021 related to prior year losses due to increased litigation claims in Florida, leading to higher loss payments compared to the previous year[92]. - Catastrophe losses incurred for named and numbered storms during the three months ended September 30, 2021, totaled $30,925,000, with a combined ratio impact of 20.1%[172]. Regulatory Compliance and Governance - The company met all regulatory requirements for its insurance subsidiaries as of September 30, 2021[118]. - The company was in compliance with the financial covenants of its Senior Notes as of September 30, 2021[99]. - The company has implemented processes and controls to ensure the appropriate valuation of its assets and liabilities[62]. Shareholder Actions - The company declared a quarterly cash dividend of $0.06 per share payable on November 29, 2021, to stockholders of record on November 22, 2021[137]. - As of September 30, 2021, the company had not repurchased any shares under the $25,000,000 stock repurchase plan authorized in July 2019[125]. Policy and Premiums - Gross premiums written for the three months ended September 30, 2021, were $322,493, a decrease of 11.8% from $365,819 for the same period in 2020[148]. - Net premiums earned for the nine months ended September 30, 2021, were $444,680, down 21.4% from $565,819 for the same period in 2020[148]. - The number of policies in-force decreased by 18.0% from 641,633 policies at September 30, 2020, to 525,969 policies at September 30, 2021[143]. - Total new and renewal policies written decreased by 21.5% to 408,631 for the nine months ended September 30, 2021, down from 520,654 in the same period in 2020[191]. Expenses and Cash Flow - Total expenses for Q3 2021 decreased by $131,863,000, or 42.1%, to $181,441,000 from $313,304,000 in Q3 2020, primarily due to a decrease in loss and LAE expenses[182]. - Operating expenses increased by $3,969,000, or 10.4%, to $42,133,000, primarily due to increased investments in technology[197]. - General and administrative expenses decreased by $10,712,000, or 20.0%, to $42,934,000, mainly due to a reduction in salary-related expenses[197]. - The company experienced cash outflows of $109,573,000 during the nine months ended September 30, 2021, compared to cash inflows of $164,592,000 in the same period in 2020[204].