Financial Performance - Gross premiums written for Q1 2023 were $187.123 million, an increase from $142.414 million in Q1 2022, representing a growth of 31.4%[181] - Net premiums earned in Q1 2023 were $87.324 million, compared to $57.746 million in Q1 2022, reflecting a growth of 51.3%[181] - Consolidated net income attributable to United Insurance Holdings Corp. for Q1 2023 was $260.878 million, a significant increase from a loss of $33.172 million in Q1 2022[181] - Earnings from continuing operations before income tax for Q1 2023 were $40.428 million, up from $5.627 million in Q1 2022[181] - Core income for Q1 2023 was $30.906 million, compared to $5.953 million in Q1 2022, indicating a growth of 418.5%[181] - Book value per share increased to $1.93 in Q1 2023, compared to a negative $4.21 in Q1 2022[181] - Total revenue decreased to $104,047,000 in Q1 2023 from $117,361,000 in Q1 2022, a decline of 11.3%[182] - Net income from continuing operations increased to $30,573,000 in Q1 2023, up from $4,647,000 in Q1 2022[182] - The combined ratio improved to 70.5% in Q1 2023 from 191.7% in Q1 2022, indicating enhanced operational efficiency[182] - The loss ratio, net, improved to 21.9% in Q1 2023 from 56.3% in Q1 2022, reflecting better loss management[182] - Net income attributable to United Insurance Holdings Corp. for Q1 2023 increased by $294,050,000, or 886.4%, to $260,878,000 from a net loss of $33,172,000 in Q1 2022[220] Policy and Operations - The number of policies in-force decreased by 51.3% from 48,152 at March 31, 2022, to 23,473 at March 31, 2023, due to the receivership of the former subsidiary UPC[178] - The company ceased writing commercial residential insurance in South Carolina and Texas effective May 1, 2022, and divested ownership of UPC on February 27, 2023[172][173] - A quota share reinsurance agreement was entered into with TypTap Insurance Company, ceding 100% of UPC's in-force policies in Georgia, North Carolina, and South Carolina effective June 1, 2022[175] - The company has historically grown through strategic acquisitions, including the merger of Journey Insurance Company into American Coastal Insurance Company effective June 1, 2022[178] - Gross written premiums for personal lines decreased by $3,968,000, or 27.5%, to $10,482,000 for Q1 2023 from $14,450,000 in Q1 2022[231] - Gross written premiums for commercial lines increased by $48,677,000, or 38.0%, to $176,641,000 in Q1 2023 from $127,964,000 in Q1 2022[241] Expenses and Cost Management - Total expenses significantly reduced to $64,207,000 in Q1 2023 compared to $113,067,000 in Q1 2022, a decrease of 43.2%[182] - Loss and LAE decreased by $13,445,000, or 41.3%, to $19,073,000 in Q1 2023, with the loss ratio as a percentage of net earned premiums dropping to 21.9% from 56.3% in Q1 2022[227] - Policy acquisition costs fell by $25,225,000, or 48.4%, to $26,927,000 in Q1 2023, primarily due to decreases in agent commissions and policy administration fees[228] - General and administrative expenses decreased by $5,598,000, or 36.3%, to $9,837,000 in Q1 2023, driven by a reduction in salary-related expenses due to decreased headcount[229] - Total operating expenses rose by $7,909,000, or 39.3%, to $28,016,000 for Q1 2023 compared to $20,107,000 in Q1 2022[247] Reinsurance and Catastrophe Management - The company purchased catastrophe excess of loss reinsurance protection up to an exhaustion point of approximately $2,500,000,000 for the 2022 hurricane season[198] - After Hurricane Ian, the company has approximately $993 million of aggregate limit remaining, with reinstatement premiums of approximately $15.4 million[199] - The company agreed to terminate a reinsurance agreement resulting in approximately $1,300,000 of ceded premium savings[200] - Reinsurance costs as a percentage of gross earned premium decreased from 53.0% in 2022 to 39.6% in 2023[203] - The exhaustion point of the company's catastrophe reinsurance program is approximately $200,000,000 with a retention of $3,000,000 per occurrence[198] - Unpaid losses and LAE decreased from $842,958,000 as of December 31, 2022 to $748,365,000 as of March 31, 2023, primarily due to ongoing claims settlements related to Hurricane Ian[215] - The company incurred $3,071,000 in catastrophe losses for the three months ended March 31, 2023, with a combined ratio impact of 3.5%[210] Investment and Market Conditions - Cash, cash equivalents, and restricted cash totaled $372,721,000 as of March 31, 2023, up from $340,905,000 at December 31, 2022[193] - The Federal Reserve's interest rate hikes may negatively impact the market value of the company's investment portfolio and rate of return on investments[218] - Net purchases of investments totaled $195,082,000 in Q1 2023, compared to net sales of $70,134,000 in Q1 2022[258] Future Outlook and Concerns - The company has substantial doubt about its ability to continue as a going concern within the next twelve months[253] - Management plans to explore raising additional capital for UIHC and ACIC to strengthen statutory risk-based capital if necessary[253]

Financial Data and Key Metrics Changes - For Q1 2023, the company reported a GAAP net income of $260.9 million or $5.99 per share, compared to a net loss of $33.2 million or $0.77 per share in the previous year, which included a non-recurring gain from discontinued operations of $230.3 million or $5.29 per share [13][14] - Continuing operations pretax income was approximately $40 million, a significant increase from $5.6 million year-over-year, representing a 619% increase [10][14] - The combined ratio improved to 70.5%, down from over 191% last year, indicating a substantial enhancement in operational efficiency [15] Business Line Data and Key Metrics Changes - The commercial lines segment generated a pretax income of approximately $39 million, with gross written premiums up 38% year-over-year and a net loss ratio of 22% [10][16] - The personal lines segment reported a pretax profit of $4.6 million, but was impacted by a $3.2 million pretax loss primarily related to interest expense [16] Market Data and Key Metrics Changes - The company noted that legislative changes in Florida are expected to reduce loss rates by approximately 25%, which may positively impact insurance premium rates over time [9] - The Florida residential cat market remains extremely hard, with expectations for continued challenges in reinsurance placements, but also opportunities for growth in commercial residential exposure [12] Company Strategy and Development Direction - The company is focused on exiting the personal lines business and enhancing its commercial lines segment, which is expected to drive future growth [7][10] - Management is optimistic about the potential for improved financial performance in 2023, following significant restructuring efforts [21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the company's ability to demonstrate significant improvements in financial performance during the remainder of 2023 [21] - The company is working closely with the Florida Department of Financial Services to resolve outstanding balances and leverage net operating loss carryforwards from UPC [18] Other Important Information - As of March 31, 2023, stockholders' equity was $83.5 million, with total assets exceeding $1.44 billion, including over $792 million of reinsurance recoverable [17] - The company has secured over 100% of the limit authorized for its core cat reinsurance program, providing substantial hurricane protection [11][19] Q&A Session Summary - The Q&A session included inquiries about the impact of legislative changes on loss ratios and premium rates, to which management responded positively, indicating expected reductions in loss costs over time [9] - Questions regarding the company's strategy for personal lines and the expected timeline for financial recovery were addressed, with management emphasizing the focus on commercial lines and ongoing restructuring efforts [7][21]

Financial Performance - The company reported personal residential property policies generated written premium of $596,374,000, accounting for 53.1% of total gross written premium in 2022[28]. - Commercial policies produced written premium of $508,243,000, representing 45.2% of total gross written premium in 2022[30]. - The total insured value (TIV) of all policies in-force as of December 31, 2022, was $200,900,672, a decrease from $310,181,753 in 2021[38]. - As of December 31, 2022, the company had 254,275 policies in-force, a significant decrease from 471,724 in 2021[36]. - Approximately 52.5% of the company's policies in-force and 43.4% of total insured value were concentrated in Florida as of December 31, 2022[77]. - The company's exposure in Louisiana and Texas represented approximately 24.9% of policies in-force and 23.3% of total insured value at December 31, 2022[81]. Underwriting and Risk Management - The company aims to achieve consistent and sustainable underwriting profitability through continuous portfolio optimization and risk management strategies[24]. - The company is subject to increased exposure to catastrophic events in Florida, which may disproportionately affect its financial condition[78]. - The company faces increased costs of claims due to one-way attorney fees in Florida, with recent legislative changes aimed at reforming this issue[80]. - The process of estimating loss reserves involves significant judgment and is subject to various internal and external variables[86]. - The company may experience government-levied assessments that could adversely affect its results of operations[90]. - The company is negotiating for catastrophe reinsurance coverage for the June 1, 2023, through May 31, 2024, renewal period, with expected increases in costs[89]. - The inability to obtain reinsurance on acceptable terms could increase loss exposure and limit underwriting capabilities, adversely affecting financial condition[128]. Strategic Focus and Business Operations - The company plans to divest its personal lines business, focusing solely on commercial lines, particularly in Florida[25]. - The company continues to explore strategic options for its personal lines business, particularly IIC in New York[25]. - The company operates under two reportable segments: personal residential property and casualty insurance policies, and commercial residential property and casualty insurance policies[70]. - The company relies on approximately 2,693 independent agencies for marketing its policies, making it dependent on these agents' performance[82]. - The company has reduced its equity securities portfolio to mitigate market volatility impacts on financial condition[22]. Regulatory and Compliance Issues - The company is subject to regulatory restrictions on dividend payments from its insurance subsidiaries, as per Florida and New York law[51]. - The company has a long-term management agreement that requires approval from the Florida Office of Insurance Regulation for any changes[55]. - The company has agreed not to pay ordinary dividends from its insurance subsidiary, IIC, until January 1, 2025, without prior approval from the New York Department of Financial Services[152]. - The company is subject to restrictive covenants that may limit its ability to pursue certain opportunities for expansion, particularly in the commercial property insurance market for coastally exposed risks[154]. - Regulatory changes at the state and federal levels could limit the company's ability to manage risk and profitability, impacting growth and operational flexibility[118][120]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to achieve net-zero carbon emissions in its operations and value chain by no later than 2030[59]. - The company has committed to increasing capital allocated toward ESG investment vehicles and opportunities[59]. - The company has implemented various eco-friendly initiatives, including paperless policy document delivery and energy-efficient lighting[58]. - The company has invested $3,280,000 in a BlackRock ESG exchange-traded fund as of December 31, 2022[59]. Workforce and Management - As of December 31, 2022, the company had 269 employees, with a voluntary attrition rate of 39.3% for the year[68]. - The company's workforce diversity statistics show that 20.0% of executive officers are female, with a change of (22.9) points from December 31, 2021[65]. - The loss of senior management could adversely affect the company's business and financial condition, as attracting and retaining qualified executives is challenging in a competitive industry[101][102]. Financial Risks and Market Conditions - The competitive landscape in the property and casualty insurance industry remains intense, with challenges in maintaining market share and pricing adequacy due to rising reinsurance costs and catastrophe events[115][116]. - The cyclical nature of the property and casualty insurance industry may lead to periods of severe price competition, adversely affecting profitability[140]. - Legal actions and increased litigation costs may materially affect operating results and financial condition, with potential for significant damage awards[141]. - The ongoing COVID-19 pandemic has introduced significant uncertainty, with potential risks including increased claims, regulatory challenges, and impacts on operational efficiency[111][113]. Investment and Capital Structure - The company’s investment portfolio is primarily in fixed income securities, and changes in interest rates could significantly impact net investment income and fair value[134]. - The company has registered up to 101 million securities authorized for issuance, which could lead to stock price decreases if substantial amounts are sold[148]. - Dividend payments on common stock are uncertain and dependent on profits and regulatory restrictions, affecting returns for investors[149]. - Limitations on the ability of subsidiaries to pay dividends could adversely affect the holding company's liquidity and obligations[150]. - Compliance with Senior Notes due 2027 is critical, as failure to meet restrictions could result in default and negatively impact liquidity and financial condition[109][110]. Operational Risks - The company faces risks related to information technology and data security systems, which could negatively impact its financial condition[94]. - The company faces operational and financial risks due to reliance on third-party vendors for critical services, which could lead to significant losses in the event of vendor failures or data breaches[100]. - The company has substantial uncertainty regarding reinsurance recoveries due to its insurance subsidiary, UPC, being ordered into receivership[88]. - Strategic transactions such as mergers and acquisitions may not yield anticipated benefits and could divert management resources, incur unexpected costs, or dilute existing shareholders[103][104]. - The company may face difficulties in accurately assessing the value and liabilities of acquired businesses until operational control is assumed, potentially impacting financial results[105][106]. - Dispositions of business segments could adversely affect stock prices and investor returns, alongside challenges in negotiating sale terms and replacing legacy earnings[106][107]. - Investments in shared ownership entities may expose the company to operational and financial risks, potentially leading to lower-than-expected contributions to earnings[108].

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $294.9 million or $6.84 per share for Q4 2022, compared to a net loss of $2.3 million or $0.05 per share in the previous year [14] - The core loss for Q4 2022 was $273 million or $6.33 per share, compared to a core loss of $1 million or $0.02 per share in the prior year [14] - The gross loss estimate from Hurricane Ian increased from $1 billion at September 30, 2022, to $1.54 billion at year-end [15] Business Line Data and Key Metrics Changes - The commercial lines business reported pre-tax earnings of $3.7 million for Q4 and $35.8 million for the year, with gross written premium for the quarter at $122 million, up 30.4%, and for the year at $508 million, up 20.4% [10] - The combined ratio for the commercial lines was 89.5% for Q4, with an underlying combined ratio of 68.5% [11] - The personal lines business incurred most of the losses, while commercial lines had approximately $16 million of net losses related to current accident year catastrophes [15] Market Data and Key Metrics Changes - The average risk-adjusted rate in the commercial lines increased over 40% in Q4, the highest in 15 years, with the average building valuation up 11% year-over-year [10] - The average hurricane deductible increased from 4.3% to 5.0% year-over-year across the portfolio [10] Company Strategy and Development Direction - The company is continuing its withdrawal from personal lines, having exited various states and entered into an agreement with Slide Insurance Company to offer replacement policies to at least 72,000 policyholders [6][8] - The focus is shifting towards a specialty commercial lines business, with expectations of strong historical performance from American Coastal [12] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the developments leading to the receivership of United P&C but indicated that this closure allows for a more stable and profitable future [16][20] - The Florida catastrophe market is described as significantly harder than in previous years, presenting both challenges and opportunities for pricing and portfolio quality improvement [12] Other Important Information - The company incurred several nonrecurring charges in Q4, including a $23 million impairment loss related to United P&C's investment portfolio and a $20 million write-down of deferred acquisition costs [20] - The company has provided unaudited pro forma financials to illustrate the impact of deconsolidating United P&C from its results [16][17] Q&A Session Summary - No specific questions or answers were provided in the transcript, indicating the end of the Q&A session without further inquiries from participants [21]

United Insurance Holdings Corporation (Nasdaq: UIHC) Investor Presentation March 2nd, 2023 Company Overview UIHC is a specialty underwriter of catastrophe exposed property insurance. United Insurance Holding Corp. (Nasdaq: UIHC) was founded in 1999 and is the insurance holding company for 2 P&C carriers: American Coastal Insurance Company (ACIC) and Interboro Insurance Company (IIC) along with other operating affiliates. ACIC has the #1 market share of commercial residential property insurance (commercial l ...

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $70.9 million or $1.65 per share for Q3 2022, compared to a net loss of $14.3 million or $0.33 per share in the same period last year [20] - Core loss for the quarter was $57.5 million or $1.34 per share, compared to a core loss of $15.5 million or $0.36 per share a year ago [20] - Gross premiums written for the quarter were $255.2 million, a decline of $67.3 million or approximately 21% [24] - Net investment income increased by approximately 23% to $4.3 million due to higher yields [25] Business Line Data and Key Metrics Changes - Personal lines experienced a core loss of $69.8 million, significantly impacted by the loss of financial stability ratings and increased reinsurance costs [8][9] - The total policies in force in personal lines decreased by about 36% since the beginning of 2022, with total return values down 34.6% [11] - Commercial lines reported net premium earned of $59.5 million, with a core income of $1.8 million for the third quarter, demonstrating strong performance despite Hurricane Ian losses [12] Market Data and Key Metrics Changes - The company noted that the Florida market is expected to remain hard due to a skeptical capital and reinsurance market, elevated catastrophe activity, and excessive litigation levels [18] - The impact of Hurricane Ian on the company's catastrophe reinsurance program was significant, with personal lines losses estimated near the top of the program limits [29] Company Strategy and Development Direction - The company has decided to put its core personal lines businesses into runoff, filing plans of withdrawal in Florida, Texas, and Louisiana [14][15] - The focus will shift exclusively to the commercial lines segment, which has shown profitable results [28] Management Comments on Operating Environment and Future Outlook - Management expressed concerns about the viability of the previously announced runoff plan for United Property & Casualty due to Hurricane Ian, indicating it as a significant risk factor going forward [31][32] - The company continues to monitor developments closely and adjust its runoff plan as needed [32] Other Important Information - The company wrote down approximately $13.6 million in goodwill related to its personal lines operations [10] - GAAP equity attributable to UHC stockholders declined to $80.4 million, with a book value per share of $1.86 [34] Q&A Session Summary - The Q&A session concluded without specific questions or answers being documented in the provided content, indicating a lack of engagement during this segment [35]

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].