REINSURANCE PROGRAM

Significant Historical Event Effects on UPCHistorical Event Est. Industry Est. UPC UPC Performance UPC Performance Gross Loss Gross Loss 2017 Net Inc.3 Risk-Adjusted ($ billion) ($ million) ($ million) ROAE3

SEVERITY (Single Event)

Andrew (FL 1992) $54 $447 $39.1 15.0%Katrina (LA 2005) $59 $506 $39.1 15.0%Galveston (TX 1900) $43 $461 $39.1 15.0%Great New England (1938) $43 $578 $39.1 15.0%

FREQUENCY (Multiple Events)

Andrew + Katrina $113 $953 $20.0 8.0%Galveston + New England $86 $1,039 $20.0 8.0%

MORE PROTECTION. BETTER FINANCIAL STABILITY. GREATER PEACE OF MIND.UPC’s catastrophe reinsurance program is structured to offer unique protection for both severity and frequency—in other words, it is built to protect against both very large storms and multiple storms in the same year.

Since 1900, there has never been a hurricane event or season that would have exhausted more than 50% of our reinsurance coverage.

UPC Reinsurance Fast Facts• Our reinsurance plan protects against a one-in-more-than-400-

year event—plus single and multiple-named storm seasons. • Severity Protection: No single storm since 1900 would exhaust

more than 50% of our catastrophe reinsurance protection.• Frequency Protection: No series of events occurring in one

year since 1900 would have exhausted more than 32% of our catastrophe reinsurance protection.

• Our retention of $55 million is less than 7% of our 06/30/17 equity capital.

• Over 85% of our total reinsurance limit is collateralized in cash—we know the money will be there after an event.

1928 Okeechobee ........................... $1,262 M

1938 Great New England ....................... $578 M1900 Galveston .......................................

$447 M1992 Andrew ..........................................$461 M

1926 Great Miami Hurricane .............. $1,409 M

2005 Hurricane Season (7 events)2 ........... $888 M

2004 Hurricane Season (6 events)1 .......... $628 M

$ 2 . 8 B I L L I O N U

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UPC’s Coverage$2.8 BILLIONin total reinsurance protection

How Our Reinsurance Program Compares to Historical Events

Estimated UPC losses in today’s dollars from selected historical events.

1 2004: Charley, Frances, Jeanne, Ivan, Alex, Gaston 2 2005: Wilma, Katrina, Dennis, Ophelia, Cindy, Emily, Rita3 Raymond James estimate as of 5/15/2017 less after-tax of actual, estimated and modeled catastrophe losses during 2017

Wind and Earthquake1 All Other Events2 All Other Perils (AOP)

All Lines Participating Reinsurers 43 7 2Key Reinsurers Elementum, Nephila, Swiss Re, General Re (Berskshire), Aeolus, Amlin, Everest, Nephila, Lloyd’s Lloyd’s Lloyd’s, Transatlantic

Personal and Commercial Lines Personal Lines Commercial Lines

Limit — Occurrence $2,748,000,000 $30,000,000 $3,500,000 $70,000,000

Limit — Aggregate $2,748,000,000 $60,000,000 $7,000,000 n/a

Retention

1st Event $55,000,000 n/a $1,250,000 $1,000,000

2nd and Subsequent Events $30,000,000 n/a $1,250,000 $1,000,000

All Events in the Aggregate n/a $30,000,000 n/a n/a

1 Includes all named or numbers windstorms designated by the National Hurricane Center2 Covers an event (other than hurricane, earthquake or tropical storm) that causes losses to UPC of over $1 million and which affects multiple policyholders.

For more information: upcinsurance.com

800-861-4370 FINANCIAL STABILITY RATING® OF

A, EXCEPTIONAL, FROM DEMOTECH

Why UPC Insurance? We have strong answers.We were conceived to be your “go-to” for insurance in coastal states. Our capital base is backed by unique reinsurance coverage to see you through a multiple-event and/or major catastrophic storm season.

We have done our homework to make sure that we’re prepared to Keep the Promise® and be here in the time of need.

UPC is the STRONG answer.

Diversified Multi-Event Reinsurance Coverage Details

2017-2018 UPC CATASTROPHE REINSURANCE PROGRAM

Catastrophe Losses Non-Catastrophe Losses