10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549  

_______________________

FORM 10-Q/A

_______________________

(Amendment No. 1)

☑    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

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 

____________________

American Coastal Insurance Corporation

(Exact Name of Registrant as Specified in its Charter)

Delaware	75-3241967
(State or Other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification Number)

800 2nd Avenue S.		33701
St. Petersburg,	Florida
(Address of Principle Executive Offices)		(Zip Code)

727-895-7737

(Registrant's telephone number, including area code)

United Insurance Holdings Corp.

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.0001 par value per share	ACIC	Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☑    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☑    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☑	Smaller reporting company	☑

If an emerging growth company, indicate by check mark if the registrant has elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. £

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐   No  R

As of May 15, 2023, 43,287,573 shares of common stock, par value $0.0001 per share, were outstanding.

EXPLANATORY NOTE

American Coastal Insurance Corporation (formerly known as United Insurance Holdings Corp.) (the “Company”) is filing this amendment to its Quarterly Report on Form 10-Q (the “Amended Report”) for the three months ended March 31, 2023 originally filed with the Securities and Exchange Commission (“SEC”) on May 19, 2023 (the “Original Report”). The purpose of this Amended Report is to restate the Company’s unaudited condensed consolidated financial statements for the three months ended March 31, 2023 (the “First Quarter 2023 10-Q”). Except as described below, no other information included in the Original Report is being amended or updated by this Amendment and this Amendment does not purport to reflect any information or events subsequent to the Original Form 10-Q.

Restatement Background

The Company has identified certain errors related to the reporting of the discontinued operations for the previously issued unaudited condensed consolidated financial statements for the three months ended March 31, 2023, as included in the Original Report, which errors had the effect of understating the net income for the three months ended March 31, 2023 by approximately $6.4 million. These errors were discovered in the course of preparing the Company’s interim financial statements for the fiscal quarter ended June 30, 2023, and included errors in the Company’s accounting for income tax expense primarily relating to the deconsolidation of the Company’s former subsidiary, United Property & Casualty Insurance Company.

As a result, on August 17, 2023, the Company’s management determined that the Company’s previously issued unaudited condensed financial statements as of and for the quarterly periods ended March 31, 2023, should no longer be relied upon solely as a result of the above-described errors.

Restatement

This Amended Report includes restated unaudited interim financial information for the quarterly period ended March 31, 2023.

This Amended Report also amends and restates the following items included in the Original Report as appropriate to reflect the restatement and revision of the relevant periods: Part I — Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation; Part I — Item 4. Controls and Procedures; Part II — Item 1A. Risk Factors and Part II — Item 6. Exhibits.

In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company is also including with this Amended Report currently dated certifications of the Company’s Chief Executive Officer and Chief Financial Officer (attached as Exhibits 31.1, 31.2, 32.1, and 32.2).

Except as discussed above and as further described in the Notes to the unaudited condensed consolidated financial statements, the Company has not modified or updated the disclosures presented in this Amended Report. Accordingly, this Amended Report does not reflect events occurring after the Original Report or modify or update those disclosures affected by subsequent events. Information not affected by the restatement is unchanged and reflects disclosures made at the time of the filing of the Original Report.

Control Considerations

In connection with the restatement, management has reassessed the effectiveness of the Company’s internal control over financial reporting. Based on this assessment, the Company identified a material weakness in its internal control over financial reporting due to a design deficiency in controls related to the review of significant unusual transactions, including the impact to income tax expense from those transactions, resulting in the conclusion by our principal executive officer and principal financial officer, that the internal control over financial reporting and disclosure controls and procedures were not effective as of March 31, 2023. Management has begun to take steps towards remediating the material weakness in the Company’s internal control over financial reporting. For additional information related to the material weakness in internal control over financial reporting and the related remedial measures, see “Part II – Item 4. Controls and Procedures.”

UNITED INSURANCE HOLDINGS CORP.

PART I. FINANCIAL INFORMATION
	Item 1. Restated Financial Statements	4
	Restated Condensed Consolidated Balance Sheets (Unaudited)	4
	Restated Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	5
	Restated Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited)	6
	Restated Condensed Consolidated Statements of Cash Flows (Unaudited)	7
	Notes to Restated Unaudited Condensed Consolidated Financial Statements	8
	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	40
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	59
	Item 4. Controls and Procedures	59
PART II. OTHER INFORMATION
	Item 1. Legal Proceedings	60
	Item 1A. Risk Factors	60
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	61
	Item 3. Defaults Upon Senior Securities	61
	Item 4. Mine Safety Disclosures	61
	Item 5. Other Information	61
	Item 6. Exhibits	61
Signatures		62

Throughout this Quarterly Report on Form 10-Q (Form 10-Q), we present amounts in all tables in thousands, except for share amounts, per share amounts, policy counts or where more specific language or context indicates a different presentation. In the narrative sections of this Form 10-Q, we show full values rounded to the nearest thousand.

2

UNITED INSURANCE HOLDINGS CORP.

FORWARD-LOOKING STATEMENTS

This Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about anticipated growth in revenues, gross written premium, earnings per share, estimated unpaid losses on insurance policies, investment returns, and diversification and expectations about our liquidity, our ability to meet our investment objectives, our ability to manage and mitigate market risk with respect to our investments and our ability to continue as a going concern. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “endeavor,” “project,” “believe,” “plan,” “anticipate,” “intend,” “could,” “would,” “estimate,” or “continue” or the negative variations thereof or comparable terminology are intended to identify forward-looking statements. These statements are based on current expectations, estimates and projections about the industry and market in which we operate, and management's beliefs and assumptions. Forward-looking statements are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainties include, without limitation:

•our exposure to catastrophic events and severe weather conditions;

•the regulatory, economic and weather conditions present in Florida and New York the states in which we are most concentrated;

•our ability to cultivate and maintain agent relationships, particularly our relationship with AmRisc, LLC;

•the possibility that actual claims incurred may exceed our loss reserves for claims;

•assessments charged by various governmental agencies;

•our ability to implement and maintain adequate internal controls over financial reporting;

•our ability to maintain information technology and data security systems, and to outsource relationships;

•our reliance on key vendor relationships, and the ability of our vendors to protect the personally identifiable information of our customers, claimants or employees;

•our ability to attract and retain the services of senior management;

•risks and uncertainties relating to our acquisitions, mergers, dispositions and other strategic transactions;

•risks associated with investments in which we share ownership or management with third parties;

•our ability to generate sufficient cash to service all of our indebtedness and comply with covenants and other requirements related to our indebtedness;

•our ability to maintain our market share;

•changes in the regulatory environment present in the states in which we operate;

•the impact of new federal or state regulations that affect the insurance industry;

•the cost, viability and availability of reinsurance;

•our ability to collect from our reinsurers or others on our reinsurance claims;

•dependence on investment income and the composition of our investment portfolio and related market risks;

•the possibility of the pricing and terms for our products to decline due to the historically cyclical nature of the property and casualty insurance and reinsurance industry;

•the outcome of litigation pending against us, including the terms of any settlements;

•downgrades in our financial strength or stability ratings;

•the impact of future transactions of substantial amounts of our common stock by us or our significant stockholders on our stock price;

•our ability to meet the standards for continued listing on Nasdaq;

•substantial doubt about our ability to continue as a going concern, including the impact on future financing and reinsurance coverage;

•our ability to pay dividends in the future, which may be constrained by our holding company structure;

•the ability of our subsidiaries to pay dividends in the future, which may affect our liquidity and our ability to meet our obligations;

•the ability of R. Daniel Peed and his affiliates to exert significant control over us due to substantial ownership of our common stock, subject to certain restrictive covenants that may restrict our ability to pursue certain opportunities;

•the impact of transactions by R. Daniel Peed and his affiliates on the price of our common stock;

•provisions in our charter documents that may make it harder for others to obtain control of us; and

•other risks and uncertainties described in the section entitled "Risk Factors" in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2022 and in Part II, Item 1A of this Form 10-Q.

We caution you not to rely on these forward-looking statements, which are valid only as of the date they were made. Except as may be required by applicable law, we undertake no obligation to update or revise any forward-looking statements to reflect new information, the occurrence of unanticipated events or otherwise.

3

UNITED INSURANCE HOLDINGS CORP.

PART I. FINANCIAL INFORMATION

Item 1. Restated Financial Statements

Restated Condensed Consolidated Balance Sheets (Unaudited)

	March 31, 2023		December 31, 2022
ASSETS
Investments, at fair value:
Fixed maturities, available-for-sale (amortized cost of $239,473 and $237,735, respectively)	$	210,733	$	204,682
Equity securities	16,181		15,657
Other investments (amortized cost of $2,917 and $3,072, respectively)	3,550		3,675
Total investments	$	230,464	$	224,014
Cash and cash equivalents	92,586		70,903
Restricted cash	49,671		45,988
Total cash, cash equivalents and restricted cash	$	142,257	$	116,891
Accrued investment income	1,818		1,605
Property and equipment, net	4,723		5,293
Premiums receivable, net (credit allowance of $27 and $32, respectively)	48,120		39,301
Reinsurance recoverable on paid and unpaid losses, net (credit allowance of $150 and $333, respectively)	792,350		796,546
Ceded unearned premiums	65,702		90,496
Goodwill	59,476		59,476
Deferred policy acquisition costs, net	59,897		52,369
Intangible assets, net	11,758		12,770
Other assets	17,476		3,920
Assets held for disposal	13,395		1,434,815
Total Assets	$	1,447,436	$	2,837,496
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses	$	748,365	$	842,958
Unearned premiums	301,625		258,978
Reinsurance payable on premiums	33,908		30,503
Payments outstanding	2,326		2,000
Accounts payable and accrued expenses	89,582		74,386
Operating lease liability	1,412		1,689
Other liabilities	30,073		5,849
Notes payable, net	148,438		148,355
Liabilities held for disposal	1,817		1,654,817
Total Liabilities	$	1,357,546	$	3,019,535
Commitments and contingencies (Note 13)
Stockholders' Equity:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding	$	—	$	—
Common stock, $0.0001 par value; 100,000,000 shares authorized; 43,486,442 and 43,492,256 issued, respectively; 43,274,359 and 43,280,173 outstanding, respectively	4		4
Additional paid-in capital	395,966		395,631
Treasury shares, at cost: 212,083 shares	(431)		(431)
Accumulated other comprehensive loss	(25,629)		(30,947)
Retained earnings (deficit)	(280,020)		(546,296)
Total Stockholders' Equity (Deficit)	$	89,890	$	(182,039)
Total Liabilities and Stockholders' Equity	$	1,447,436	$	2,837,496

See accompanying Notes to Restated Unaudited Condensed Consolidated Financial Statements.

4

UNITED INSURANCE HOLDINGS CORP.

Restated Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

	Three Months Ended
	March 31,
	2023		2022
REVENUE:
Gross premiums written	$	187,123	$	142,414
Change in gross unearned premiums	(42,647)		(19,681)
Gross premiums earned	144,476		122,733
Ceded premiums earned	(57,152)		(64,987)
Net premiums earned	87,324		57,746
Net investment income	2,589		1,404
Net realized investment gains (losses)	(83)		37
Net unrealized gains (losses) on equity securities	474		(770)
Other revenue	16		15
Total revenue	90,320		58,432
EXPENSES:
Losses and loss adjustment expenses	16,412		26,315
Policy acquisition costs	26,972		20,308
Operating expenses	2,168		3,707
General and administrative expenses	8,793		8,064
Interest expense	2,719		2,359
Total expenses	57,064		60,753
Income before other income	33,256		(2,321)
Other income	588		1,333
Income before income taxes	33,844		(988)
Provision for income taxes	3,477		(715)
Income from continuing operations, net of tax	$	30,367	$	(273)
Income (loss) from discontinued operations, net of tax	236,913		(32,984)
Net income (loss)	$	267,280	$	(33,257)
Less: Net loss attributable to NCI	—		(85)
Net income (loss) attributable to UIHC	$	267,280	$	(33,172)
OTHER COMPREHENSIVE INCOME (LOSS):
Change in net unrealized gains (losses) on investments	4,231		(27,689)
Reclassification adjustment for net realized investment losses	83		1,769
Income tax benefit related to items of other comprehensive income (loss)	—		6,236
Total comprehensive income (loss)	$	271,594	$	(52,941)
Less: Comprehensive loss attributable to NCI	—		(643)
Comprehensive income (loss) attributable to UIHC	$	271,594	$	(52,298)
Weighted average shares outstanding
Basic	43,124,825		42,980,691
Diluted	43,574,840		42,980,691
Earnings available to UIHC common stockholders per share
Basic
Continuing operations	$	0.70	$	—
Discontinued operations	5.49		(0.77)
Total	$	6.19	$	(0.77)
Diluted
Continuing operations	$	0.70	$	—
Discontinued operations	5.44		(0.77)
Total	$	6.14	$	(0.77)

See accompanying Notes to Restated Unaudited Condensed Consolidated Financial Statements.

5

UNITED INSURANCE HOLDINGS CORP.

Restated Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended

(Unaudited)

	Common Stock			Additional Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Retained Deficit		Stockholders' Equity Attributable to UIHC		NCI		Total Stockholders’ Equity
	Number of Shares	Dollars
December 31, 2021	43,370,442	$	4	$	394,268	$	(431)	$	(6,531)	$	(74,904)	$	312,406	$	19,551	$	331,957
Net loss	—	—		—		—		—		(33,172)		(33,172)		(85)		(33,257)
Other comprehensive loss, net	—	—		—		—		(19,126)		—		(19,126)		(558)		(19,684)
Stock Compensation	(112,847)	—		452		—		—		—		452		—		452
Cash dividends on common stock ($0.06 per common share)	—	—		—		—		—		(2,589)		(2,589)		—		(2,589)
March 31, 2022	43,257,595	$	4	$	394,720	$	(431)	$	(25,657)	$	(110,665)	$	257,971	$	18,908	$	276,879

	Common Stock			Additional Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Retained Earnings (Deficit)		Stockholders' Equity (Deficit) Attributable to UIHC		NCI		Total Stockholders’ Equity (Deficit)
	Number of Shares	Dollars
December 31, 2022	43,280,173	$	4	$	395,631	$	(431)	$	(30,947)	$	(546,296)	$	(182,039)	$	—	$	(182,039)
Net Income	—	—		—		—		—		267,280		267,280		—		267,280
Other comprehensive income, net	—	—		—		—		4,314		—		4,314		—		4,314
Impact of Deconsolidation of Discontinued Operations	—	—		—		—		1,004		(1,004)		—		—		—
Stock Compensation	(5,814)	—		335		—		—		—		335		—		335
March 31, 2023	43,274,359	$	4	$	395,966	$	(431)	$	(25,629)	$	(280,020)	$	89,890	$	—	$	89,890

See accompanying Notes to Restated Unaudited Condensed Consolidated Financial Statements.

6

UNITED INSURANCE HOLDINGS CORP.

Restated Condensed Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended March 31,
	2023		2022
OPERATING ACTIVITIES
Net income (loss)	$	267,280	$	(33,257)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	2,155		2,606
Bond amortization and accretion	160		1,634
Net realized losses (gains) on investments	(1,260)		1,769
Net unrealized losses (gains) on equity securities	(2,554)		2,268
Provision for uncollectable premiums	5		12
Provision for uncollectable reinsurance recoverables	183		168
Deferred income taxes, net	15,767		(11,351)
Stock based compensation	335		452
Settlement of receivable owed by HCI in connection with purchase agreement	—		3,800
Gain on sale of property and equipment	(422)		(1,528)
Fixed asset disposal	524		343
Disposition of former subsidiary	(238,440)		—
Changes in operating assets and liabilities:
Accrued investment income	369		437
Premiums receivable	15,178		2,265
Reinsurance recoverable on paid and unpaid losses	289,946		85,140
Ceded unearned premiums	72,064		146,667
Deferred policy acquisition costs, net	(875)		(7,193)
Other assets	(31,630)		(4,618)
Receivable from sale of building	—		3,236
Unpaid losses and loss adjustment expenses	(278,142)		(117,236)
Unearned premiums	(145,540)		(39,731)
Reinsurance payable on premiums	(13,376)		(51,714)
Payments outstanding	(68,493)		(10,246)
Accounts payable and accrued expenses	16,440		(2,924)
Operating lease liability	(277)		(183)
Other liabilities	(3,561)		8,291
Net cash provided by (used in) operating activities	$	(104,164)	$	(20,893)
INVESTING ACTIVITIES
Proceeds from sales, maturities and repayments of:
Fixed maturities	178,211		85,978
Equity securities	24,163		88
Other investments	227		1,063
Purchases of:
Fixed maturities	(7,439)		(13,415)
Equity securities	(80)		(3,121)
Other investments	—		(459)
Proceeds from sale of property and equipment	464		730
Cost of property, equipment and capitalized software acquired	(154)		(1,406)
Disposition of cash on divestiture of subsidiary	(232,582)		—
Net cash provided by (used in) investing activities	$	(37,190)	$	69,458
FINANCING ACTIVITIES
Repayments of borrowings	—		(381)
Dividends	—		(2,589)
Net cash used in financing activities	$	—	$	(2,970)
Increase in cash, cash equivalents and restricted cash, including cash classified as assets held for disposal	(141,354)		45,595
Cash, cash equivalents and restricted cash at beginning of period	283,611		245,278
Cash, cash equivalents and restricted at end of period	$	142,257	$	290,873
Supplemental Cash Flows Information
Interest paid	$	—	$	35
Income taxes paid	$	5,325	$	77

See accompanying Notes to Restated Unaudited Condensed Consolidated Financial Statements.

7

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

1)    ORGANIZATION, CONSOLIDATION AND PRESENTATION

(a)Business

United Insurance Holdings Corp. (referred to in this document as we, our, us, the Company or UIHC) is a property and casualty insurance holding company that sources, writes and services residential commercial and personal property and casualty insurance policies using a network of agents and two wholly-owned insurance subsidiaries. Our two insurance subsidiaries are Interboro Insurance Company (IIC), acquired via merger on April 29, 2016; and American Coastal Insurance Company (ACIC), acquired via merger on April 3, 2017.

Our other subsidiaries include United Insurance Management, L.C. (UIM), a managing general agent; Skyway Claims Services, LLC, which provides claims adjusting services to ACIC; AmCo Holding Company, LLC (AmCo) which is a holding company subsidiary that consolidates its respective insurance company; BlueLine Cayman Holdings (BlueLine), which reinsures portfolios of excess and surplus policies; UPC Re, which provides a portion of the reinsurance protection purchased by our insurance subsidiaries when needed; Skyway Reinsurance Services, LLC, which provides reinsurance brokerage services for our insurance companies; Skyway Legal Services, LLC, which provides claims litigation services to our insurance companies; and Skyway Technologies, LLC, a managing general agent that provides technological and distribution services to our insurance companies.

Our primary products are commercial and homeowners' residential property insurance. We currently offer commercial residential insurance in Florida. During 2022, we also wrote commercial residential insurance in South Carolina and Texas, however, effective May 1, 2022, we no longer write in these states. In addition, we write personal residential insurance in New York. During 2022, we wrote personal residential business in six other states; however on February 27, 2023, our former insurance subsidiary, United Property & Casualty Insurance Company (UPC) was placed into receivership with the Florida Department of Financial Services (DFS), which divested our ownership of UPC. The events leading to receivership and results of this subsidiary, now included within discontinued operations, are discussed in Note 4 below.

On August 25, 2022, we announced that our former subsidiary UPC had filed plans for withdrawal in the states of Florida, Louisiana, and Texas and intended to file a plan for withdrawal in the state of New York. All filed plans entail non-renewing personal lines policies in these states. Additionally, we announced that Demotech, Inc. (Demotech), an insurance rating agency, notified UPC of its intent to withdraw UPC's Financial Stability Rating. On December 5, 2022, the Florida Office of Insurance Regulation ("FLOIR") issued Consent Order No. 303643-22- CO that provided for the administrative supervision and approval of the plan of run-off for UPC (the "Consent Order"). The Consent Order provided formal approval of UPC's Plan of Run-Off (the "Plan") to facilitate a solvent wind down of its affairs in an orderly fashion. Additionally, in connection with the Plan, IIC agreed to not pay ordinary dividends without the prior approval of the New York Department of Financial Services until January 1, 2025. On February 10, 2023, we announced that a solvent run-off of UPC was unlikely and on February 27, 2023, UPC was placed into receivership with the Florida Department of Financial Services (the "DFS") which divested our ownership of UPC.

Effective June 1, 2022, we merged our majority-owned insurance subsidiary, Journey Insurance Company (JIC) into ACIC, with ACIC being the surviving entity. JIC was formed in strategic partnership with a subsidiary of Tokio Marine Kiln Group Limited (Kiln) on August 30, 2018 and operated independently from ACIC prior to the merging of the entities. The Kiln subsidiary held a noncontrolling interest in JIC, which was terminated prior to the merger.

Effective June 1, 2022, we entered into a quota share reinsurance agreement with TypTap Insurance Company (Typtap). Under the terms of this agreement, we ceded 100% of our former subsidiary UPC's in-force, new, and renewal policies in the states of Georgia, North Carolina and South Carolina. Effective June 1, 2022, we began the transition of South Carolina policies to Homeowners Choice Property and Casualty Insurance Company, Inc. (HCPCI) in connection with our renewal rights agreement. Effective October 1, 2022, we transitioned Georgia policies to HCPCI in connection with our renewal rights agreement. Effective December 1, 2022, we began the transition of North Carolina policies to HCPCI in connection with our renewal rights agreement. As a result, these policies will no longer be covered under this agreement upon their renewal. This agreement replaces the 85% quota share agreement with HCPCI effective December 31, 2021.

Effective May 31, 2022, we merged Family Security Insurance Company, Inc. (FSIC) into our former subsidiary UPC, with UPC being the surviving entity. FSIC was acquired via merger on February 3, 2015, and operated independently from

8

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

UPC prior to the merging of the entities. In conjunction with the merger, we dissolved Family Security Holdings (FSH), a holding company subsidiary that consolidated its respective insurance company, FSIC.

Effective June 1, 2021, we entered into a quota share reinsurance agreement with HCPCI and TypTap. Under the terms of this agreement, we ceded 100% of our former subsidiary UPC's in-force, new, and renewal policies in the states of Connecticut, New Jersey, Massachusetts, and Rhode Island. The cession of these policies was 50% to HCPCI and 50% to TypTap. HCPCI is responsible for processing all claims as a part of this agreement. As of April 1, 2022, we completed the transition of all policies in these four states to HCPCI in connection with our renewal rights agreement (Northeast Renewal Agreement) to sell UPC's personal lines homeowners business in these states.

We conduct our operations under two reportable segments, personal residential property and casualty insurance policies (personal lines) and commercial residential property and casualty insurance policies (commercial lines). Our chief operating decision maker is our President, who makes decisions to allocate resources and assesses performance at both segment levels, as well as at the corporate level.

(b)Consolidation and Presentation

We prepare our unaudited condensed consolidated interim financial statements in conformity with U.S. generally accepted accounting principles (GAAP). We have condensed or omitted certain information and footnote disclosures normally included in the annual consolidated financial statements presented in accordance with GAAP. In management's opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of interim periods. We include all of our subsidiaries in our consolidated financial statements, eliminating intercompany balances and transactions during consolidation. As described in Note 2, our former subsidiary, UPC, qualifies as a discontinued operation. Our unaudited condensed consolidated interim financial statements and footnotes should be read in conjunction with our consolidated financial statements and footnotes in our Annual Report on Form 10-K for the year ended December 31, 2022.

While preparing our unaudited condensed consolidated financial statements, we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Reported amounts that require us to make extensive use of estimates include our reserves for unpaid losses and loss adjustment expenses, investments and goodwill. Except for the captions on our Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Comprehensive Loss, we generally use the term loss(es) to collectively refer to both loss and loss adjustment expenses.

Our results of operations and our cash flows as of the end of the interim periods reported herein do not necessarily indicate our results for the remainder of the year or for any other future period.

(c) Going Concern

Our unaudited condensed consolidated interim financial statements have been prepared in accordance with GAAP assuming the Company will continue as a going concern. As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022, our subsidiary ACIC is a part of a combined reinsurance program with our former subsidiary, UPC.

To properly allocate the reinsurance recoverables under the shared catastrophe treaties, UPC and ACIC entered into a reinsurance allocation agreement that became effective on June 1, 2022 (the "Allocation Agreement"). The Allocation Agreement was filed with and approved by the FLOIR on December 5, 2022. On February 10, 2023, we announced that a solvent run-off of UPC was unlikely, driven by Hurrican Ian losses which exhausted UPC's reinsurance coverage. On February 27, 2023, UPC was placed into receivership with the DFS which divested our ownership of UPC. As of the date of filing our Annual Report, the DFS had not recognized the Allocation Agreement, leaving uncertainty regarding the timing of both recoveries currently held by UPC that are allocated to ACIC and future recoverables. Management also believed that the ability for ACIC to obtain adequate reinsurance to meet its needs for the June 1, 2023 to May 31, 2024 catastrophe cover could only be accomplished assuming that recoveries due to ACIC pursuant to the Allocation Agreement could be resolved in short order.

However, on April 19, 2023, ACIC entered into a Memorandum of Understanding with the DFS. Under the terms of the Memorandum, ACIC and the DFS as receiver of UPC have reached the following agreement:

9

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

1.The DFS adopts, ratifies and affirms the Allocation Agreement.

2.All future reinsurance recoverable under reinsurance agreements applicable to the Allocation Agreement for Hurricane Ian losses shall be paid, either directly from the reinsurers or directly from the reinsurance intermediary responsible therefor, to ACIC. If a true up adjustment demonstrates that any future reinsurance recoveries were over-collected by ACIC, ACIC will remit any over-payment to UPC.

While the execution of the MOU does alleviate the uncertainty regarding future recoverables, uncertainty does still exist regarding recoveries currently held by UPC. The Company intends to continue to work towards a fair and equitable solution regarding these held recoveries (See Note 19). In addition, the Company has not finalized its catastrophe cover for June 1, 2023 to May 31, 2024. While continued progress is being made, uncertainty does still exist regarding placement of this cover. As a result, the Company has concluded substantial doubt continues to exist regarding its ability to continue as a going concern.

2)    SIGNIFICANT ACCOUNTING POLICIES

(a) Changes to Significant Accounting Policies

During the three months ended March 31, 2023, our former subsidiary, UPC, was placed into receivership with the DFS. As described in Note 1, effective February 27, 2023, this receivership divested our ownership of UPC. This disposal was evaluated for qualification as a discontinued operation. The results of operations of business are reported as discontinued operations when the disposal represents a strategic shift that will have a major effect on the entity's operations and financial results. When a business is identified for discontinued operations reporting:

•Results for prior periods are retroactively reclassified as discontinued operations;

•Results of operations are reported in a single line, net of tax, in the Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss); and

•Assets and liabilities are reported as held for disposal in the Unaudited Condensed Consolidated Balance Sheets

•Premiums directly assumed from UPC by another entity of the consolidated group are now captured as assumed.

Additional details by major classification of operating results and financial position are included in Note 4.

There have been no other changes to our significant accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2022.

(b) Pending Accounting Pronouncements

We have evaluated pending accounting pronouncements and do not believe any would have an impact on the operations or financial reporting of our company.

3)    RESTATEMENT OF PREVIOUSLY REPORTED FINANCIAL STATEMENTS

Subsequent to the issuance of the Form 10-Q as of and for the three months ended March 31, 2023, the Company concluded it should restate its previously issued financial statements for both 2023 and 2022 to accurately present discontinued operations, including activities that directly support its former subsidiary, UPC, in accordance with ASC 205-20. The Company had previously excluded these supporting activities, assets, and liabilities, presenting only the results, assets and liabilities of UPC as discontinued operations.

In addition, the Company concluded it should restate its previously issued financial statements to accurately present its tax provision (benefit) related to both continuing and discontinued operations. Previously, the calculation of this provision (benefit) incorrectly included the benefit of the use of certain deferred tax assets held by UPC after the disposition of UPC occurred and incorrectly allocated this provision between continuing and discontinued operations.

In accordance with SEC Staff Accounting Bulletin No. 99, the Company evaluated the errors and has determined that the related impact was material to the previously filed financial statements that contained the error, reported in the Company’s Form 10-Q for the quarterly period ended March 31, 2023. Therefore, the Company concluded that the affected quarterly periods should be restated to present continuing and discontinued operations appropriately and recognize the additional

10

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

provision for income taxes for the period and allocate appropriately to continuing and discontinued operations. As such, the Company is reporting these restated financial statements in this amended quarterly report. The previously filed Form 10-Q should no longer be relied upon.

The impact of the restatement on the financial statements for the affected quarterly periods are presented below.

Restated Condensed Consolidated Balance Sheets (Unaudited)

	As of March 31, 2023
	As Previously Reported		Adjustment	As Restated
ASSETS
Property and equipment, net	18,118		(13,395)	4,723
Other Assets	15,426		2,050	17,476
Assets held for disposal	—		13,395	13,395
Total Assets	$	1,445,386	2,050	$	1,447,436
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Other liabilities	36,242		(6,169)	30,073
Liabilities held for disposal	—		1,817	1,817
Total Liabilities	$	1,361,898	(4,352)	$	1,357,546
Stockholders' Equity:
Retained earnings (deficit)	$	(286,422)	6,402	$	(280,020)
Total Stockholders' Equity (Deficit)	$	83,488	6,402	$	89,890

	As of December 31, 2022
	As Previously Reported	Adjustment	As Restated
ASSETS
Property and equipment, net	19,591	(14,298)	5,293
Deferred policy acquisition costs, net	60,979	(8,610)	52,369
Assets held for disposal	1,411,907	22,908	1,434,815
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses	75,374	(988)	74,386
Other liabilities	17,466	(11,617)	5,849
Liabilities held for disposal	1,642,212	12,605	1,654,817

11

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

Restated Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

	Three Months Ended March 31, 2023
REVENUE:	As Previously Reported		Adjustment		As Restated
Management fee income	9,668		(9,668)		—
Other revenue	4,075		(4,059)		16
Total revenue	104,047		(13,727)		90,320
EXPENSES:
Losses and loss adjustment expenses	19,073		(2,661)		16,412
Policy acquisition costs	26,927		45		26,972
Operating expenses	5,651		(3,483)		2,168
General and administrative expenses	9,837		(1,044)		8,793
Total expenses	61,488		(7,143)		54,345
Income before other income	39,840		(6,584)		33,256
Income before income taxes	40,428		(6,584)		33,844
Provision for income taxes	9,855		(6,378)		3,477
Income from continuing operations, net of tax	$	30,573	$	(206)	$	30,367
Income from discontinued operations, net of tax	230,305		6,608		236,913
Net income	$	260,878	$	6,402	$	267,280
Earnings available to UIHC common stockholders per share
Basic
Continuing operations	$	0.71	$	(0.01)	$	0.70
Discontinued operations	5.34		0.15		5.49
Total	$	6.05	$	0.14	$	6.19
Diluted
Continuing operations	$	0.70	$	—	$	0.70
Discontinued operations	5.29		0.15		5.44
Total	$	5.99	$	0.15	$	6.14

12

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

	Three Months Ended March 31, 2022
REVENUE:	As Previously Reported		Adjustment		As Restated
Management fee income	50,206		(50,206)		—
Other revenue	8,738		(8,723)		15
Total revenue	117,361		(58,929)		58,432
EXPENSES:
Losses and loss adjustment expenses	32,518		(6,203)		26,315
Policy acquisition costs	52,152		(31,844)		20,308
Operating expenses	10,603		(6,896)		3,707
General and administrative expenses	15,435		(7,371)		8,064
Total expenses	113,067		(52,314)		60,753
Income (loss) before other income	4,294		(6,615)		(2,321)
Income (loss) before income taxes	5,627		(6,615)		(988)
Provision (benefit) for income taxes	980		(1,695)		(715)
Income (loss) from continuing operations, net of tax	$	4,647	$	(4,920)	$	(273)
Loss from discontinued operations, net of tax	(37,904)		4,920		(32,984)
Net loss	$	(33,257)	$	—	$	(33,257)

Restated Condensed Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended March 31, 2023
	As Previously Reported		Adjustment		As Restated
OPERATING ACTIVITIES
Net income (loss)	$	260,878	$	6,402	$	267,280
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Disposition of former subsidiary	(229,183)		(9,257)		(238,440)
Changes in operating assets and liabilities:
Other liabilities	(6,416)		2,855		(3,561)

Restated Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended

(Unaudited)

	Three Months Ended March 31, 2023
	As Previously Reported		Adjustment		As Restated
Net Income for the three months ended March 31, 2023	$	260,878	$	6,402	$	267,280
Retained Earnings (Deficit) as of March 31, 2023	(286,422)		6,402		(280,020)
Stockholders Equity (Deficit) attributable to UIHC at March 31, 2023	83,488		6,402		89,890
Total Stockholders' Equity (Deficit)	83,488		6,402		89,890

In connection with these changes, our Notes to Unaudited Condensed Consolidated Financial Statements have also been restated where applicable.

4)    DISCONTINUED OPERATIONS

13

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

On August 25, 2022, we announced that our former subsidiary UPC had filed plans for withdrawal in the states of Florida, Louisiana, and Texas and intended to file a plan for withdrawal in the state of New York. All filed plans entailed non-renewing personal lines policies in these states. Additionally, we announced that Demotech, an insurance rating agency, notified UPC of its intent to withdraw UPC's Financial Stability Rating. On December 5, 2022, the FLOIR issued Consent Order No. 303643-22- CO that provided for the administrative supervision and approval of the plan of run-off for UPC (the "Consent Order"). The Consent Order provided formal approval of UPC's Plan of Run-Off (the "Plan") to facilitate a solvent wind down of its affairs in an orderly fashion. On February 10, 2023, we announced that a solvent run-off of UPC was unlikely, driven by Hurricane Ian losses which exhausted UPC's reinsurance coverage. On February 27, 2023, UPC was placed into receivership with the DFS which divested our ownership of UPC.

In the first quarter of 2023, the assets and liabilities of UPC were divested. In addition, activities provided by our entities, SCS, SLS and UIM, related directly to supporting the business conducted by UPC have been included. The assets and liabilities for the balance sheet as of December 31, 2022 are reclassified as held for disposal retrospectively, and the results of UPC and activities related directly to supporting the business conducted by UPC are presented as discontinued operations for all periods presented.

The results from discontinued operations for the three months ended March 31, 2023 and 2022 are presented below.

Results From Discontinued Operations
	Three Months Ended March 31,
	2023		2022
REVENUE:
Gross premiums written	$	(120,608)	$	146,828
Change in gross unearned premiums	198,154		59,726
Gross premiums earned	77,546		206,554
Ceded premiums earned	(48,203)		(163,443)
Net premiums earned	29,343		43,111
Net investment income	2,182		1,075
Net realized investment gains (losses)	1,343		(1,806)
Net unrealized gains (losses) on equity securities	2,080		(1,498)
Other revenue	2,717		3,063
Total revenue	37,665		43,945
EXPENSES:
Losses and loss adjustment expenses	35,226		65,064
Policy acquisition costs	(1,352)		5,708
Operating expenses	3,996		8,541
General and administrative expenses	1,284		7,941
Interest expense	22		20
Total expenses	39,176		87,274
Loss before other income	(1,511)		(43,329)
Other income (loss)	—		9
Loss before income taxes	(1,511)		(43,320)
Provision (benefit) for income taxes	16		(10,336)
Income (loss) from discontinued operations, net of tax	$	(1,527)	$	(32,984)

As of February 28, 2023, the Company completed the disposal of its former subsidiary, UPC. This divestiture resulted in a gain of $238,440,000 for the period. This gain was driven by the negative equity position of UPC.

14

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

The major classes of assets and liabilities transferred as a result of the transaction as of the date of transfer and December 31, 2022 are presented below.

Major Classes of Assets and Liabilities Disposed
	Closing (1)		December 31, 2022
ASSETS
Fixed maturities, available-for-sale	1,380		171,781
Equity securities	272		23,363
Other investments	12,882		12,952
Cash and cash equivalents	224,824		158,990
Restricted cash	7,758		7,730
Accrued investment income	875		1,457
Premiums receivable, net	22,733		46,736
Reinsurance recoverable on paid and unpaid losses, net	548,929		834,863
Ceded unearned premiums	75,262		122,533
Deferred policy acquisition costs, net	(89)		(2,046)
Other assets	51,625		33,548
Total assets	$	946,451	$	1,411,907
LIABILITIES
Unpaid losses and loss adjustment expenses	920,431		1,103,980
Unearned premiums	98,655		286,842
Reinsurance payable on premiums	12,612		29,394
Payments outstanding	144,238		213,058
Accounts payable and accrued expenses	1,361		(872)
Other liabilities	3,476		14,658
Notes payable, net	4,118		4,118
Total Liabilities	$	1,184,891	$	1,651,178

(1) The Company divested its ownership on February 27, 2023, the date the DFS was appointed as receiver of the entity.

In addition, the major classes of assets and liabilities remaining related to activities directly supporting the business conducted by UPC are outlined in the table below as of March 31, 2023 and December 31, 2022.

15

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

Major Classes of Assets and Liabilities Held for Disposal
	March 31, 2023		December 31, 2022
ASSETS
Property and equipment, net	13,395		14,299
Deferred policy acquisition costs	—		8,609
Total assets	$	13,395	$	22,908
LIABILITIES
Commissions Payable	1,817		987
Unearned Policy Fees	—		2,652
Total Liabilities	$	1,817	$	3,639

The discontinued operations of the Company incurred $252,000 and $438,000 of amortization expense during the three months ended March 31, 2023 and 2022, respectively. There were no other noncash transactions for either period.

5)    SEGMENT REPORTING

Personal Lines Business

Our personal lines business provides structure, content and liability coverage for standard single-family homeowners, renters and condominium unit owners, through our subsidiary IIC. Personal residential products are offered in New York. We include coverage to policyholders for loss or damage to dwellings, detached structures or equipment caused by covered causes of loss such as fire, wind, hail, water, theft and vandalism.

We have developed a unique and proprietary homeowners’ product. This product uses a granular approach to pricing for catastrophe perils. We have focused on using independent agencies as a channel of distribution for our personal lines business. All of our personal lines business is managed internally.

Commercial Lines Business

Our commercial lines business primarily provides commercial multi-peril property insurance for residential condominium associations and apartments in Florida, through our subsidiary ACIC. We include coverage to policyholders for loss or damage to buildings, inventory or equipment caused by covered causes of loss such as fire, wind, hail, water, theft and vandalism. We also wrote commercial residential coverage through our subsidiary JIC, in South Carolina and Texas. Effective June 1, 2022 JIC was merged into ACIC, with ACIC being the surviving entity. As a result, the commercial residential policies originally written by JIC were not renewed effective May 31, 2022.

All of our commercial lines business is administered by an outside managing general underwriter, AmRisc, LLC (AmRisc). This includes handling the underwriting, claims processing and premium collection related to our commercial business. In return, AmRisc is reimbursed through monthly management fees. International Catastrophe Insurance Managers (ICAT) handled the underwriting and premium collection for JIC’s commercial business written in South Carolina and Texas and was also reimbursed through monthly management fees. Effective May 31, 2022, the Company terminated its agreement with ICAT.

Please note the following similarities pertaining to the accounting and transactions of our operating segments for the three months ended March 31, 2023 and 2022:

•Both operating segments follow the accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2022;

•Neither operating segment experienced significant noncash transactions outside of depreciation and amortization for the three months ended March 31, 2023 and 2022.

16

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

The tables below present the information for each of the reportable segment's profit or loss, as well as segment assets for the three months ended March 31, 2023 and 2022. We have restated our segments to reflect the divestiture of UPC during the first quarter of 2023, excluding the result of the entity for all periods presented.

17

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

	Three Months Ended March 31, 2023
	Commercial			Personal (1)			Adjustments		Consolidated
REVENUE:
Gross premiums written	$	176,641		$	10,482		$	—	$	187,123
Change in gross unearned premiums	(44,607)			1,960			—		(42,647)
Gross premiums earned	132,034			12,442			—		144,476
Ceded premiums earned	(53,374)			(3,778)			—		(57,152)
Net premiums earned	78,660			8,664			—		87,324
Net investment income	1,786			782			21		2,589
Net realized gains (losses)	(83)			—			—		(83)
Net unrealized losses on equity securities	473			—			1		474
Other revenue	—			16			—		16
Total revenues	80,836			9,462			22		90,320
EXPENSES:
Losses and loss adjustment expenses	13,901			2,511			—		16,412
Policy acquisition costs	25,166			1,806			—		26,972
Operating expenses	96			1,948			124		2,168
General and administrative expenses (2)	2,754			5,907			132		8,793
Interest expense	—			—			2,719		2,719
Total expenses	41,917			12,172			2,975		57,064
Income (loss) before other income	38,919			(2,710)			(2,953)		33,256
Other income (loss)	—			803			(215)		588
Income (loss) before income taxes	$	38,919		$	(1,907)		(3,168)		33,844
Provision for income taxes							3,477		3,477
Net income (loss)							$	(6,645)	$	30,367
Less: Net loss attributable to noncontrolling interests							—		—
Net income (loss) attributable to UIHC							$	(6,645)	$	30,367
Loss ratio, net (3) (4)	17.7		%	29.0		%			18.9		%
Expense ratio (3) (5)	35.6		%	111.5		%			43.4		%
Combined ratio (3) (6)	53.3		%	140.5		%			62.3		%
Total segment assets	$	1,304,499		$	118,700		$	10,842	$	1,434,041

(1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations.

(2) Included in our General and Administrative expenses is $1,007,000 and $812,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively.

(3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below.

(4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses.

(5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses.

(6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business.

18

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

	Three Months Ended March 31, 2022
	Commercial			Personal (1)			Adjustments		Consolidated
REVENUE:
Gross premiums written	$	127,964		$	14,450		$	—	$	142,414
Change in gross unearned premiums	(20,499)			818			—		(19,681)
Gross premiums earned	107,465			15,268			—		122,733
Ceded premiums earned	(62,022)			(2,965)			—		(64,987)
Net premiums earned	45,443			12,303			—		57,746
Net investment income	1,127			268			9		1,404
Net realized gains	2			35			—		37
Net unrealized losses on equity securities	(769)			—			(1)		(770)
Other revenue	—			15			—		15
Total revenues	45,803			12,621			8		58,432
EXPENSES:
Losses and loss adjustment expenses	14,114			12,201			—		26,315
Policy acquisition costs	16,678			3,630			—		20,308
Operating expenses	1,109			2,507			91		3,707
General and administrative expenses (2)	2,320			5,363			381		8,064
Interest expense	—			—			2,359		2,359
Total expenses	34,221			23,701			2,831		60,753
Income (loss) before other income	11,582			(11,080)			(2,823)		(2,321)
Other income	—			(277)			1,610		1,333
Income (loss) before income taxes	$	11,582		$	(11,357)		(1,213)		(988)
Provision for income taxes							(715)		(715)
Net income (loss)							$	(498)	$	(273)
Less: Net income attributable to noncontrolling interests							(85)		(85)
Net income (loss) attributable to UIHC							$	(413)	$	(188)
Loss ratio, net (3) (4) (7)	31.1		%	99.2		%			45.6		%
Expense ratio (3) (5) (7)	44.2		%	93.5		%			55.6		%
Combined ratio (3) (6) (7)	75.3		%	192.7		%			101.1		%
Total segment assets	$	949,359		$	156,443		$	17,507	$	1,123,309

(1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations.

(2) Included in our General and Administrative expenses is $1,074,000 and $885,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively.

(3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below.

(4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses.

(5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses.

(6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business.

6)    INVESTMENTS

19

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

The following table details fixed-maturity available-for-sale securities, by major investment category, at March 31, 2023 and December 31, 2022:

	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2023
U.S. government and agency securities	$	3,491	$	—	$	82	$	3,409
Foreign government	1,000		—		9		991
States, municipalities and political subdivisions	31,924		15		3,357		28,582
Public utilities	8,913		—		1,093		7,820
Corporate securities	99,324		58		13,659		85,723
Mortgage-backed securities	64,285		—		8,283		56,002
Asset-backed securities	30,536		36		2,366		28,206
Total fixed maturities	$	239,473	$	109	$	28,849	$	210,733
December 31, 2022
U.S. government and agency securities	$	2,490	$	—	$	105	$	2,385
Foreign government	1,000		—		9		991
States, municipalities and political subdivisions	30,958		2		4,065		26,895
Public utilities	8,936		—		1,242		7,694
Corporate securities	99,062		20		15,739		83,343
Mortgage-backed securities	65,251		—		9,136		56,115
Asset-backed securities	30,038		9		2,788		27,259
Total fixed maturities	$	237,735	$	31	$	33,084	$	204,682

Equity securities are summarized as follows:

	March 31, 2023				December 31, 2022
	Estimated Fair Value		Percent of Total		Estimated Fair Value		Percent of Total
Mutual funds	$	16,181	100.0	%	$	15,657	100.0	%

When we sell investments, we calculate the gain or loss realized on the sale by comparing the sales price (fair value) to the cost or adjusted/amortized cost of the security sold. We determine the cost or adjusted/amortized cost of the security sold using

20

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

the specific-identification method. The following table details our realized gains (losses) by major investment category for the three months ended March 31, 2023 and 2022, respectively:

	2023				2022
	Gains (Losses)		Fair Value at Sale		Gains (Losses)		Fair Value at Sale
Three Months Ended March 31,
Fixed maturities	$	4	$	5,292	$	41	$	12,192
Equity securities	—		—		—		—
Short-term investments	—		126		—		—
Total realized gains	4		5,418		41		12,192
Fixed maturities	(87)		(41)		(4)		251
Equity securities	—		—		—		—
Short-term investments	—		—		—		—
Total realized losses	(87)		(41)		(4)		251
Net realized investment gains (losses)	$	(83)	$	5,377	$	37	$	12,443

The table below summarizes our fixed maturities at March 31, 2023 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturities of those obligations.

	March 31, 2023
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	7,097	3.0	%	$	7,016	3.3	%
Due after one year through five years	50,754		21.2		46,402		22.0
Due after five years through ten years	82,508		34.5		69,386		32.9
Due after ten years	4,293		1.8		3,721		1.8
Asset and mortgage-backed securities	94,821		39.5		84,208		40.0
Total	$	239,473	100.0	%	$	210,733	100.0	%

The following table summarizes our net investment income by major investment category:

	Three Months Ended March 31,
	2023		2022
Fixed maturities	$	1,272	$	1,431
Equity securities	81		66
Cash and cash equivalents	1,304		22
Other investments	6		55
Other assets	—		—
Investment income	2,663		1,574
Investment expenses	(74)		(170)
Net investment income	$	2,589	$	1,404

Portfolio monitoring

21

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

We have a quarterly portfolio monitoring process to identify and evaluate each fixed-income security whose carrying value may be impaired as the result of a credit loss. For each fixed-income security in an unrealized loss position, if we determine that we intend to sell the security or that it is more likely than not that we will be required to sell the security before recovery of the cost or amortized cost basis for reasons such as liquidity needs, contractual or regulatory requirements, the security's entire decline in fair value is recorded in earnings.

If our management decides not to sell the fixed-income security and it is more likely than not that we will not be required to sell the fixed-income security before recovery of its amortized cost basis, we evaluate whether the decline in fair value has resulted from credit losses or other factors. This is typically indicated by a change in the rating of the security assigned by a rating agency, and any adverse conditions specifically related to the security or industry, among other factors. If the assessment indicates that a credit loss may exist, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded in earnings. Credit loss is limited to the difference between a security's amortized cost basis and its fair value. Any additional impairment not recorded through an allowance for credit losses is recognized in other comprehensive loss.

During the three months ended March 31, 2023, we determined that none of our fixed-income securities shown in the table below that are in an unrealized loss position have declines in fair value that are reflected as a result of credit losses. Therefore, no credit loss allowance was recorded at March 31, 2023. The issuers of our debt security investments continue to make interest payments on a timely basis. We do not intend to sell, nor is it likely that we would be required to sell the debt securities before we recover our amortized cost basis. Equity securities are reported at fair value with changes in fair value recognized in the valuation of equity investments.

The following table presents an aging of our unrealized investment losses by investment class:

	Less Than Twelve Months					Twelve Months or More
	Number of Securities(1)	Gross Unrealized Losses		Fair Value		Number of Securities(1)	Gross Unrealized Losses		Fair Value
March 31, 2023
U.S. government and agency securities	1	$	9	$	990	2	$	73	$	1,421
Foreign governments	1	9		991		—	—		—
States, municipalities and political subdivisions	8	49		3,732		45	3,308		23,324
Public utilities	—	—		—		12	1,093		7,819
Corporate securities	35	547		10,964		115	13,112		71,582
Mortgage-backed securities	12	248		3,749		116	8,035		52,254
Asset-backed securities	7	36		3,013		54	2,330		22,632
Total fixed maturities	64	$	898	$	23,439	344	$	27,951	$	179,032
December 31, 2022
U.S. government and agency securities	3	$	105	$	2,385	—	$	—	$	—
Foreign governments	1	9		991		—	—		—
States, municipalities and political subdivisions	21	540		7,306		31	3,525		18,853
Public utilities	8	193		2,286		4	1,049		5,408
Corporate securities	78	2,279		24,594		77	13,460		57,765
Mortgage-backed securities	48	1,282		15,259		80	7,854		40,856
Asset-backed securities	16	795		6,397		46	1,993		19,028
Total fixed maturities	175	$	5,203	$	59,218	238	$	27,881	$	141,910

(1) This amount represents the actual number of discrete securities, not the number of shares or units of those securities. The numbers are not presented in thousands.

Fair value measurement

22

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on our Unaudited Condensed Consolidated Balance Sheets at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we can access.

Level 2: Assets and liabilities whose values are based on the following:

    (a) Quoted prices for similar assets or liabilities in active markets;

    (b) Quoted prices for identical or similar assets or liabilities in markets that are not active; or

(c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect our estimates of the assumptions that market participants would use in valuing the assets and liabilities.

We estimate the fair value of our investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE, Nasdaq and NYSE American. For securities for which quoted prices in active markets are unavailable, we use a third-party pricing service that utilizes quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs to estimate the fair value of those securities for which quoted prices are unavailable. Our estimates of fair value reflect the interest rate environment that existed as of the close of business on March 31, 2023 and December 31, 2022. Changes in interest rates subsequent to March 31, 2023 may affect the fair value of our investments.

The fair value of our fixed maturities is initially calculated by a third-party pricing service. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of proprietary models, produce valuation information in the form of a single fair value for individual fixed-income and other securities for which a fair value has been requested. The inputs used by the valuation service providers include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, liquidity spreads, currency rates and other information, as applicable. Credit and liquidity spreads are typically implied from completed transactions and transactions of comparable securities. Valuation service providers also use proprietary discounted cash flow models that are widely accepted in the financial services industry and similar to those used by other market participants to value the same financial information. The valuation models take into account, among other things, market observable information as of the measurement date, as described above, as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector and, where applicable, collateral quality and other issue or issuer specific information. Executing valuation models effectively requires seasoned professional judgment and experience.

Any change in the estimated fair value of our fixed-income securities would impact the amount of unrealized gain or loss we have recorded, which could change the amount we have recorded for our investments and other comprehensive loss on our Unaudited Condensed Consolidated Balance Sheet as of March 31, 2023.

The following table presents the fair value of our financial instruments measured on a recurring basis by level at March 31, 2023 and December 31, 2022:

23

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

	Total		Level 1		Level 2		Level 3
March 31, 2023
U.S. government and agency securities	$	3,409	$	—	$	3,409	$	—
Foreign government	991		—		991		—
States, municipalities and political subdivisions	28,582		—		28,582		—
Public utilities	7,820		—		7,820		—
Corporate securities	85,723		—		85,723		—
Mortgage-backed securities	56,002		—		56,002		—
Asset-backed securities	28,206		—		28,206		—
Total fixed maturities	210,733		—		210,733		—
Mutual funds	16,181		16,181		—		—
Total investments	$	226,914	$	16,181	$	210,733	$	—
December 31, 2022
U.S. government and agency securities	$	2,385	$	—	$	2,385	$	—
Foreign government	991		—		991		—
States, municipalities and political subdivisions	26,895		—		26,895		—
Public utilities	7,694		—		7,694		—
Corporate securities	83,343		—		83,343		—
Mortgage-backed securities	56,115		—		56,115		—
Asset-backed securities	27,259		—		27,259		—
Total fixed maturities	204,682		—		204,682		—
Mutual Funds	15,657		15,657		—		—
Total equity securities	15,657		15,657		—		—
Other investments (1)	125		—		125		—
Total investments	$	220,464	$	15,657	$	204,807	$	—

(1) Other investments included in the fair value hierarchy exclude these limited partnership interests that are measured at estimated fair value using the net asset value per share (or its equivalent) practical expedient.

Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; this is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). There were no financial instruments measured on a non-recurring basis at March 31, 2023 and December 31, 2022.

The carrying amounts for the following financial instrument categories approximate their fair values at March 31, 2023 and December 31, 2022, because of their short-term nature: cash and cash equivalents, accrued investment income, premiums receivable, reinsurance recoverable, reinsurance payable, other assets, and other liabilities. The carrying amount of our senior notes approximate fair value as the interest rates and terms are variable.

We are responsible for the determination of fair value and the supporting assumptions and methodologies. We have implemented a system of processes and controls designed to provide assurance that our assets and liabilities are appropriately valued. For fair values received from third parties, our processes are designed to provide assurance that the valuation methodologies and inputs are appropriate and consistently applied, the assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded.

At the end of each quarter, we determine whether we need to transfer the fair values of any securities between levels of the fair value hierarchy and, if so, we report the transfer as of the end of the quarter. During the quarter ended March 31, 2023, we transferred no investments between levels.

For our investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, we obtain the fair values from our investment custodians, which use a third-party valuation service. The valuation service calculates prices for our investments in the aforementioned security types on a month-

24

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, and adds final spreads to the U.S. Treasury curve at 3 p.m. (ET) as of quarter end. Since the inputs the valuation service uses in its calculations are not quoted prices in active markets, but are observable inputs, they represent Level 2 inputs.

Other investments

We acquired investments in limited partnerships, recorded in the other investments line of our Unaudited Condensed Consolidated Balance Sheets, and these investments are currently being measured at estimated fair value utilizing a net asset value per share (or its equivalent) practical expedient.

The information presented in the table below is as of March 31, 2023:

	Book Value		Unrealized Gain		Unrealized Loss		Fair Value
March 31, 2023
Limited partnership investments (1)	$	2,917	$	633	$	—	$	3,550

(1) Distributions will be generated from investment gains, from operating income, from underlying investments of funds, and from liquidation of the underlying assets of the funds. We estimate that the underlying assets of the funds will be liquidated over the next few months to five years.

Restricted Cash

We are required to maintain assets on deposit with various regulatory authorities to support our insurance operations. The cash on deposit with state regulators is available to settle insurance liabilities. We also use trust funds in certain reinsurance transactions.

The following table presents the components of restricted assets:

	March 31, 2023		December 31, 2022
Trust funds	$	49,046	$	45,364
Cash on deposit (regulatory deposits)	625		624
Total restricted cash	$	49,671	$	45,988

In addition to the cash held on deposit described above, we also have securities on deposit with regulators, which are presented within our Fixed Maturities or Other Investments lines on the Unaudited Condensed Balance Sheets, dependent upon if they are short-term or long-term in nature. The table below shows the carrying value of those securities held on deposit with regulators.

	March 31, 2023		December 31, 2022
Invested assets on deposit (regulatory deposits)	$	2,491	$	2,616

7)    EARNINGS PER SHARE (EPS)

25

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

Basic EPS is based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from the vesting of outstanding restricted stock awards, restricted stock units, performance stock units and stock options. The following table shows the computation of basic and diluted EPS for the three month periods ended March 31, 2023 and 2022, respectively:

	Three Months Ended March 31,
	2023		2022
Numerator:
Net income (loss) attributable to UIHC common stockholders	$	267,280	$	(33,172)
Denominator:
Weighted-average shares outstanding	43,124,825		42,980,691
Effect of dilutive securities	450,015		—
Weighted-average diluted shares	43,574,840		42,980,691
Earnings available to UIHC common stockholders per share
Basic	$	6.19	$	(0.77)
Diluted	$	6.14	$	(0.77)

See Note 18 of these Notes to Unaudited Condensed Consolidated Financial Statements for additional information on the stock grants related to dilutive securities.

8)    PROPERTY AND EQUIPMENT, NET

Property and equipment, net consists of the following:

	March 31, 2023		December 31, 2022
Computer hardware and software (software in progress of $76 and $82, respectively)	$	8,134	$	8,164
Office furniture and equipment	798		1,414
Leasehold improvements	316		753
Leased vehicles(1)	11		1,080
Total, at cost	9,259		11,411
Less: accumulated depreciation and amortization	(4,536)		(6,118)
Property and equipment, net	$	4,723	$	5,293

(1) Includes vehicles under financing leases. See Note 13 of these Notes to Unaudited Condensed Consolidated Financial Statements for further information on leases.

Depreciation and amortization expense under property and equipment was $1,008,000 and $1,272,000 for the three months ended March 31, 2023 and 2022, respectively. During the three months ended March 31, 2023, we sold or disposed of leased vehicles totaling $1,069,000. The depreciation on these vehicles totaled $1,037,000 at the time of disposal. We realized a net gain on this disposal of $422,000. In addition, we disposed of office furniture totaling $616,000 during the period. Accumulated depreciation at the time of this disposal totaled $603,000, respectively. During the year ended December 31, 2022, we disposed of computer hardware and software totaling $13,202,000, primarily related to the retirement of one of our policy systems for states in which we no longer write policies. The depreciation on these systems totaled $12,691,000 at the time of disposal. We also sold or disposed of leased vehicles totaling $1,222,000. The depreciation on these vehicles totaled $1,114,000 prior to disposal. The net gain on sale of these vehicles totaled $738,000. Finally, we sold three buildings and their related assets totaling $13,369,000. The depreciation on these buildings and related assets totaled $5,129,000 prior to disposal. The net realized gain on these sales totaled $12,164,000.

9) GOODWILL AND INTANGIBLE ASSETS

26

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

Goodwill

The carrying amount of goodwill at March 31, 2023 and December 31, 2022 was $59,476,000.

No impairment in the value of goodwill was recognized during the three month period ended March 31, 2023. As a result of the strategic decision to place our former subsidiary UPC into an orderly runoff, we recognized an impairment of our personal lines reporting unit's goodwill totaling $13,569,000 during the third quarter of 2022. The goodwill attributable to our commercial lines reporting unit was most recently tested for impairment during the fourth quarter of 2022. It was determined that there was no additional impairment in the value of the asset as of December 31, 2022.

Goodwill allocated to our commercial lines reporting unit was $59,476,000 at March 31, 2023 and December 31, 2022. There was no goodwill allocated to our personal lines reporting unit at March 31, 2023 and December 31, 2022.

There was no goodwill acquired or disposed of during the three month periods ended March 31, 2023 and 2022. Accumulated impairment related to goodwill was $13,569,000 at March 31, 2023 and December 31, 2022.

Intangible Assets

The following is a summary of intangible assets excluding goodwill recorded as intangible assets on our Unaudited Condensed Consolidated Balance Sheets:

	March 31, 2023		December 31, 2022
Intangible assets subject to amortization	$	10,560	$	11,372
Indefinite-lived intangible assets(1)	1,198		1,398
Total	$	11,758	$	12,770

(1) Indefinite-lived intangible assets are comprised of state insurance and agent licenses, as well as perpetual software licenses.

Intangible assets subject to amortization consisted of the following:

	Weighted-average remaining amortization period (in years)	Gross carrying amount		Accumulated amortization		Net carrying amount
March 31, 2023
Value of business acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	4.0	34,661		(24,910)		9,751
Trade names acquired	1.0	6,381		(5,572)		809
Total		$	83,830	$	(73,270)	$	10,560
December 31, 2022
Value of business acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	4.3	34,661		(24,300)		10,361
Trade names acquired	1.3	6,381		(5,370)		1,011
Total		$	83,830	$	(72,458)	$	11,372

No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the three months ended March 31, 2023 and 2022. However during the three months ended March 31, 2023 and year ended December 31, 2022, we disposed of intangible assets totaling $200,000 and $2,359,000, respectively.

Amortization expense of our intangible assets was $812,000 and $812,000 for the three months ended March 31, 2023 and 2022, respectively.

27

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

Estimated amortization expense of our intangible assets to be recognized by the Company during the remainder of 2023 and over the next five years is as follows:

Year ending December 31,	Estimated Amortization Expense
Remaining in 2023	$	2,435
2024	2,640
2025	2,438
2026	2,438
2027	609
2028	—

10)    REINSURANCE

Our reinsurance program is designed, utilizing our risk management methodology, to address our exposure to catastrophes. Our program provides reinsurance protection for catastrophes, including hurricanes and tropical storms. These reinsurance agreements are part of our catastrophe management strategy, which is intended to provide our stockholders an acceptable return on the risks assumed in our property business, and to reduce variability of earnings, while providing protection to our policyholders. Although reinsurance agreements contractually obligate our reinsurers to reimburse us for the agreed-upon portion of our gross paid losses, they do not discharge our primary liability.

Our program includes excess of loss and quota share treaties. Our catastrophe reinsurance program, in effect from June 1, 2022 through May 31, 2023, provides coverage for catastrophe losses from named or numbered windstorms and earthquakes up to an exhaustion point of approximately $2,500,000,000 in the aggregate, including coverage related to our former insurance subsidiary, UPC. Under our core catastrophe excess of loss treaty, retention on a first and second event is $16,400,000 each. During the third quarter, one of the our reinsurers participating on the $25,000,000 excess of $20,000,000 layer of the core catastrophe program exercised a contractual right to terminate their participation due to Demotech's downgrade of UPC's Financial Stability Rating. We were unsuccessful in replacing this coverage in the open market so our captive reinsurer, UPC Re, stepped into the $25,000,000 excess of $20,000,000 layer which was subsequently impacted by Hurricane Ian resulting in an additional retained loss of $20,100,000. The exhaustion point of IIC's catastrophe reinsurance program is approximately $200,000,000 in the aggregate, with a retention of $3,000,000 per occurrence, covering all perils.

During the third quarter of 2022, the Company's core catastrophe reinsurance program was impacted by Hurricane Ian. As a result, the Company has approximately $508 million of occurrence limit remaining for Ian all of which is attributable to ACIC only. After reinstatement premiums of approximately $15.4 million, the Company, with its former subsidiary UPC has approximately $993 million of aggregate limit remaining after Ian, based on our estimated ultimate net loss subject to the core catastrophe reinsurance program.

Effective January 1, 2023, we renewed our all other perils catastrophe excess of loss agreement. The agreement provides protection from catastrophe loss events other than named windstorms and earthquakes up to $101,000,000.

During the third quarter of 2022, one of our private reinsurers who held a 100% share of the $15,000,000 in excess of $15,000,000 layer on our all other perils catastrophe excess of loss agreement notified us of their intent to terminate the agreement due to the contractual provision regarding the change in our former subsidiary UPC's statutory surplus being greater than 25%. We agreed to a termination and commutation date of September 30, 2022 for this contract. This change resulted in approximately $1,300,000 of ceded premium savings that would have otherwise been due in the fourth quarter of 2022 and the Company retaining all the risk for any non-hurricane catastrophe losses up to $30,000,000, excluding any quota share recoveries.

The table below outlines our quota share agreements in effect for the three months ended March 31, 2023 and 2022. The impacts of these quota share agreements on our former subsidiay, UPC's financial statements are included in discontinued operations.

28

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

Reinsurer	Companies in Scope (1)	Effective Dates	Cession Rate	States in Scope
External third-party	UPC, FSIC & ACIC	06/01/2022 - 06/01/2023	10% (2)	Florida, Louisiana, Texas
TypTap	UPC	06/01/2022 - 06/01/2023	100% (3)	Georgia, North Carolina, South Carolina
External third-party	UPC, FSIC & ACIC	12/31/2021 - 12/31/2022	8% (2)	Florida, Louisiana, Texas
HCPCI	UPC	12/31/2021 - 06/01/2022	85%	Georgia, North Carolina, South Carolina
External third-party	UPC & FSIC	12/31/2021 - 12/31/2022	25% (4)	Florida, Louisiana, Texas
HCPCI / TypTap (5)	UPC	06/01/2021 - 06/01/2022	100% (3)	Connecticut, New Jersey, Massachusetts, Rhode Island
External third-party	UPC, FSIC & ACIC (6)	06/01/2021 - 06/01/2022	15% (2)	Florida, Georgia, Louisiana, North Carolina, South Carolina, Texas
IIC	UPC	12/31/2020 - 12/31/2022	100%	New York

(1) Effective May 31, 2022, FSIC was merged into UPC, with UPC being the surviving entity.

(2) This treaty provides coverage for all catastrophe perils and attritional losses incurred. For all catastrophe perils, the quota share agreement provides ground- up protection effectively reducing our retention for catastrophe losses.

(3) This treaty provides coverage on our in-force, new and renewal policies until these states are transitioned to HCPCI or TypTap upon renewal.

(4) This treaty provides coverage on non-catastrophe losses on policies in-force on the effective date of the agreement.

(5) Cessions are split 50% to HCPCI and 50% to TypTap.

(6) This treaty was amended effective December 31, 2020 to include ACIC.

Reinsurance recoverable at the balance sheet dates consists of the following:

	March 31,		December 31,
	2023		2022
Reinsurance recoverable on unpaid losses and loss adjustment expenses	$	646,011	$	732,254
Reinsurance recoverable on paid losses and loss adjustment expenses	146,339		64,292
Reinsurance recoverable (1)	$	792,350	$	796,546

(1) Our reinsurance recoverable balance is net of our allowance for expected credit losses. More information related to this allowance can

be found in Note 14.

11) LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSE (LAE)

We determine the reserve for unpaid losses on an individual case basis for all incidents reported. The liability also includes amounts for incurred but not reported (IBNR) claims as of the balance sheet date.

The table below shows the analysis of our reserve for unpaid losses for the three months ended March 31, 2023 and 2022 on a GAAP basis:

29

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

	March 31,
	2023		2022
Balance at January 1	$	842,958	$	250,642
Less: reinsurance recoverable on unpaid losses	732,254		176,096
Net balance at January 1	$	110,704	$	74,546
Incurred related to:
Current year	19,577		29,379
Prior years	(3,165)		(3,064)
Total incurred	$	16,412	$	26,315
Paid related to:
Current year	10,654		11,219
Prior years	14,108		18,358
Total paid	$	24,762	$	29,577
Net balance at March 31	$	102,354	$	71,284
Plus: reinsurance recoverable on unpaid losses	646,011		168,289
Balance at March 31	$	748,365	$	239,573
Composition of reserve for unpaid losses and LAE:
Case reserves	$	284,679	$	119,969
IBNR reserves	463,686		119,604
Balance at March 31	$	748,365	$	239,573

Based upon our internal analysis and our review of the annual statement of actuarial opinion provided by our actuarial consultants at December 31, 2022, we believe that the reserve for unpaid losses reasonably represents the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date.

As reflected in the table above, we had favorable development in both 2023 and 2022 related to prior year losses. This favorable development came as a result of re-estimating ultimate losses in 2023 based on historical loss trends. The loss payments made by the Company during the three months ended March 31, 2023, were lower than the loss payments made during the three months ended March 31, 2022, due to the settling of claims related to non-tropical storm catastrophe events. Case and IBNR reserves and reinsurance recoverable on unpaid losses increased when compared to the prior period as a result of Hurricane Ian, which made landfall during the third quarter of 2022.

12)    LONG-TERM DEBT

Long-Term Debt

The table below presents all long-term debt outstanding as of March 31, 2023 and December 31, 2022:

		Effective Interest Rate	Carrying Value at
	Maturity		March 31, 2023		December 31, 2022
Senior Notes	December 15, 2027	7.25%	$	150,000	$	150,000
Florida State Board of Administration Note (1)	July 1, 2026	N/A	—		—
Truist Term Note Payable (2)	May 26, 2031	N/A	—		—
Total long-term debt			$	150,000	$	150,000

(1) Our Florida State Board of Administration Note was held by our former subsidiary, UPC.

(2) Our Truist Term Note Payable was repaid in full on August 12, 2022.

30

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

Senior Notes Payable

On December 13, 2017, we issued $150,000,000 of 10-year senior notes (the Senior Notes) that will mature on December 15, 2027 and bear interest at a rate equal to 6.25% per annum payable semi-annually on each June 15 and December 15, commencing June 15, 2018. The Senior Notes are senior unsecured obligations of the Company. We may redeem the Senior Notes at our option, at any time and from time to time in whole or in part, prior to September 15, 2027, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon from the date of redemption to the date that is three months prior to maturity, plus accrued and unpaid interest thereon. On or after that date, we may redeem the Senior Notes at par, plus accrued and unpaid interest thereon. On December 8, 2022, the Kroll Bond Rating Agency, LLC announced a downgrade of our issuer and debt ratings from BBB- to BB+. As a result, pursuant to our agreement, the interest rate of our Senior Notes increased from 6.25% to 7.25% effective on the next interest payment date of June 15, 2023.

Florida State Board of Administration Note Payable

On September 22, 2006, we issued a $20,000,000, 20-year note payable to the Florida State Board of Administration (the SBA Note). For the first three years of the SBA Note we were required to pay interest only. On October 1, 2009, we began to repay the principal in addition to interest. The SBA Note bears an annual interest rate equivalent to the 10-year Constant Maturity Treasury rate (as defined in the SBA Note agreement), which resets quarterly. This note was held by our former insurance subsidiary, UPC. On February 27, 2023, UPC was placed into receivership with the Florida Department of Financial Services, divesting our ownership of UPC.

Truist Term Note Payable

On May 26, 2016, we issued a $5,200,000, 15-year term note payable to Truist (the Truist Note), with the intent to use the funds to purchase, renovate, furnish and equip our principal executive office. The Truist Note bears interest at 1.65% in excess of the one-month LIBOR, which resets monthly. LIBOR was phased out at the end of 2021, however, the Intercontinental Exchange will continue to publish one-month LIBOR settings through 2023. The outstanding Truist Note payable balance, including applicable interest, was repaid in full on August 12, 2022. Therefore, effective August 12, 2022, Truist no longer holds our principal executive office as collateral and may not take possession of or foreclose upon the office.

Financial Covenants

Senior Notes - Our Senior Notes provide that the Company and its subsidiaries shall not incur any indebtedness unless no default exists and the Company’s leverage ratio as of the last day of any annual or quarterly period (the balance sheet date) immediately preceding the date on which such additional indebtedness is incurred would have been no greater than 0.3:1, determined on a pro forma basis as if the additional indebtedness and all other indebtedness incurred since the immediately preceding balance sheet date had been incurred and the proceeds therefrom applied as of such day. The Company and its subsidiaries also may not create, assume, incur or permit to exist any indebtedness for borrowed money that is secured by a lien on the voting stock of any significant subsidiary without securing the Senior Notes equally. The Company may not issue, sell, assign, transfer or otherwise dispose of, directly or indirectly, any of the capital stock of the Company’s significant subsidiaries as of the issue date of the Senior Notes (except to the Company or to one or more of the Company’s other subsidiaries, or for the purpose of qualifying directors or as may be required by law or regulation), subject to certain exceptions. At December 31, 2022, while our leverage ratio was greater than the allowed ratio above, we did not incur any additional debt during the period and as a result, we were in compliance with the covenants in the Senior Notes.

SBA Note - Our SBA Note required that UPC maintained either a 2:1 ratio of net written premium to surplus, or net writing ratio, or a 6:1 ratio of gross written premium to surplus, or gross writing ratio, to avoid additional interest penalties. The SBA Note agreement defined surplus for the purpose of calculating the required ratios as the $20,000,000 of capital contributed to UPC under the agreement plus the outstanding balance of the note. Should UPC have failed to exceed either a net writing ratio of 1.5:1 or a gross writing ratio of 4.5:1, UPC's interest rate would have increased by 450 basis points above the 10-year Constant Maturity Treasury rate, which was 3.76% at the end of March 2023. Any other writing ratio deficiencies resulted in an interest rate penalty of 25 basis points above the stated rate of the note. Our SBA Note further provided that the Florida State Board of Administration may, among other things, declare its loan immediately due and payable upon any default existing

31

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

under the SBA Note; however, any payment is subject to approval by the insurance regulatory authority. At March 31, 2023, we were no longer the holders of the SBA Note.

Debt Issuance Costs

The table below presents the rollforward of our debt issuance costs paid, in conjunction with the debt instruments described above, during the three months ended March 31, 2023 and 2022:

	2023		2022
Balance at January 1,	$	1,645	$	1,998
Additions	—		—
Amortization	(83)		(84)
Balance at March 31,	$	1,562	$	1,914

13)    COMMITMENTS AND CONTINGENCIES

Litigation

We are involved in claims-related legal actions arising in the ordinary course of business. We accrue amounts resulting from claims-related legal actions in unpaid losses and LAE during the period that we determine an unfavorable outcome becomes probable and we can estimate the amounts. Management makes revisions to our estimates based on its analysis of subsequent information that we receive regarding various factors, including: (i) per claim information; (ii) company and industry historical loss experience; (iii) judicial decisions and legal developments in the awarding of damages; and (iv) trends in general economic conditions, including the effects of inflation.

At March 31, 2023, the Company is involved in legal proceedings whereby on August 18, 2021, a former employee of Skyway Legal Services, LLC, filed a complaint against the Company in the United States District Court for the District of Delaware. The lawsuit alleges violations of and damages arising under Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967, and seeks damages in an unspecified amount. The Company, a named party to the lawsuit, denies that it employed the plaintiff and disputes the claims set forth in the lawsuit. On September 27, 2022, venue was transferred to the United States District Court for the Middle District of Florida, Tampa Division. The Company believes that an unfavorable outcome is neither probable nor estimable.

Commitments to fund partnership investments

We have fully funded one limited partnership investments and have committed to fund our remaining limited partnership investment. The amount of unfunded commitments was $4,242,000 and $4,238,000 at March 31, 2023 and December 31, 2022, respectively.

Leases

We, as lessee, have entered into leases of commercial office space of various term lengths. In addition to office space, we lease office equipment and a parking lot under operating leases and vehicles under finance leases.

32

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

The classification of operating and finance lease asset and liability balances within the Unaudited Condensed Consolidated Balance Sheets was as follows:

	Financial Statement Line	March 31, 2023		December 31, 2022
Assets
Operating lease assets	Other assets	$	1,096	$	1,278
Financing lease assets	Property and equipment, net	2		51
Total lease assets		$	1,098	$	1,329
Liabilities
Operating lease liabilities	Operating lease liability	$	1,412	$	1,689
Financing lease liabilities	Other liabilities	—		2
Total lease liabilities		$	1,412	$	1,691

The components of lease expenses were as follows:

	Three Months Ended March 31,
	2023		2022
Operating lease expense	$	222	$	160
Financing lease expense:
Amortization of leased assets	7		129
Net lease expense	$	229	$	289

At March 31, 2023, future minimum gross lease payments relating to these non-cancellable operating and finance lease agreements were as follows:

	Operating Leases		Finance Leases		Total
Remaining in 2023	$	682	$	—	$	682
2024	593		—		593
2025	222		—		222
2026	11		—		11
2027	—		—		—
Thereafter	—		—		—
Total undiscounted future minimum lease payments	1,508		—		1,508
Less: Imputed interest	(96)		—		(96)
Present value of lease liabilities	$	1,412	$	—	$	1,412

Weighted average remaining lease term and discount rate related to operating and finance leases were as follows:

	March 31, 2023		December 31, 2022
Weighted average remaining lease term (months)
Operating leases	23		25
Financing leases	—		9
Weighted average discount rate
Operating leases	3.70	%	3.79	%
Financing leases	—	%	3.27	%

33

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

There were no other cash or non-cash related activities during the three months ended March 31, 2023 and 2022.

Capital lease amortization expenses are included in depreciation expense in our Unaudited Condensed Consolidated Statements of Comprehensive Loss. See Note 8 of these Notes to Unaudited Condensed Consolidated Financial Statements for more information regarding depreciation expense, Note 12 for information regarding commitments related to long-term debt, and Note 15 for information regarding commitments related to regulatory actions.

Subleases

We previously leased and occupied office space in which we no longer operate. Effective October 1, 2022, this office space is now subleased to a third-party. This sublease is effective from October 1, 2022 through July 31, 2025, with no option to extend. During the three months ended March 31, 2023, we recognized $33,000 of income related to this sublease, exclusive of the lease expense associated with the original lease. During the year ended December 31, 2022, we recognized $297,000 of income related to this sublease, exclusive of the lease expense associated with the original lease.

Additionally, as a result of the sublease, we evaluated our right-of-use asset associated with the original lease for impairment, using the undiscounted cash flows from the sublease. During the year ended December 31, 2022, we recognized impairment of $175,000, which was recognized in the results of our personal lines operating segment.

Employee Retention Credit

A series of legislation was enacted in the United States during 2020 and 2021 in response to the COVID-19 pandemic that provided financial relief for businesses impacted by government-mandated shutdowns, work stoppages, or other losses suffered by employers. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided an employee retention credit, which is a refundable tax credit against certain employment taxes of up to $5,000 per employee for eligible employers. The tax credit is equal to 50% of qualified wages paid to employees during a quarter, capped at $10,000 of qualified wages per employee. During the second quarter of 2022, we evaluated our eligibility and filed for a $10,161,000 refund in connection with our Employee Retention Tax Credit for the tax year ended December 31, 2021. As of March 31, 2022, we have received $5,718,000 from the Internal Revenue Service related to this refund. A gain contingency is an uncertain situation that will be resolved in the future, possibly resulting in a gain. We have not recorded the recognition of this gain contingency, except for what has already been received and what was received after the balance sheet date prior to finalizing our results for the quarter, prior to settlement of the underlying event.

While we believe the likelihood of the refund approval being reversed is low, a loss contingency to the extent of the refunds received and recognized is present. We will continue to monitor the matter for further developments that could affect the outcome of these contingencies and will make any appropriate adjustments each quarter.

14)    ALLOWANCE FOR EXPECTED CREDIT LOSSES

We are exposed to credit losses primarily through four different pools of assets based on similar risk characteristics: premiums receivable for direct written business; reinsurance recoverables from ceded losses to our reinsurers; our investment holdings; and our notes receivable. We estimate the expected credit losses based on historical trends, credit ratings assigned to reinsurers by rating agencies, average default rates, current economic conditions, and reasonable and supportable forecasts of future economic conditions that affect the collectability of the reported amounts over its expected life. Changes in the relevant information may significantly affect the estimates of expected credit losses.

The allowance for credit losses is deducted from the amortized cost basis of the assets to present their net carrying value at the amount expected to be collected. Each period, the allowance for credit losses is adjusted through earnings to reflect expected credit losses over the remaining lives of the assets.

The following tables summarize our allowance for expected credit losses by pooled asset for the three months ended March 31, 2023 and 2022:

34

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

March 31, 2023	December 31, 2022		Provision for expected credit losses		Write-offs		March 31, 2023
Premiums Receivable	$	32	$	(34)	$	29	$	27
Reinsurance Recoverables	333		(183)		—		150
Total	$	365	$	(217)	$	29	$	177
March 31, 2022	December 31, 2021		Provision for expected credit losses		Write-offs		March 31, 2022
Premiums Receivable	$	16	$	(14)	$	10	$	12
Reinsurance Recoverables	58		22		—		80
Total	$	74	$	8	$	10	$	92

15)    STATUTORY ACCOUNTING AND REGULATION

The insurance industry is heavily regulated. State laws and regulations, as well as national regulatory agency requirements, govern the operations of all insurers such as our insurance subsidiaries. The various laws and regulations require that insurers maintain minimum amounts of statutory surplus and risk-based capital, restrict insurers' ability to pay dividends, specify allowable investment types and investment mixes, and subject insurers to assessments. Effective June 1, 2022, our insurance subsidiaries JIC and ACIC were merged, with ACIC being the surviving entity. Effective May 31, 2022, our former insurance subsidiaries UPC and FSIC were merged, with UPC being the surviving entity. Both UPC and ACIC are domiciled in Florida, while IIC is domiciled in New York. At March 31, 2023, and during the three months then ended, ACIC and IIC met all regulatory requirements of the states in which they operate. As of December 31, 2022, UPC was determined to be insolvent and effective February 27, 2023 was placed into receivership by the DFS.

During 2023, we received an assessment notice from the Florida Insurance Guaranty Association (FIGA). This assessment will be 0.7% on direct written premium of all covered lines of business in Florida to cover the cost of an insurance company facing insolvency. This assessment is in addition to the 1.3% assessment, described below, and is recoupable from policyholders. During 2022, we received an assessment notice from FIGA. This assessment will be 1.3% on direct written premium of all covered lines of business in Florida to cover the cost of an insurance company facing insolvency.

The National Association of Insurance Commissioners (NAIC) has Risk-Based Capital (RBC) guidelines for insurance companies that are designed to assess capital adequacy and to raise the level of protection that statutory surplus provides for policyholders. Most states, including Florida and New York, have enacted statutory requirements adopting the NAIC RBC guidelines, and insurers having less statutory surplus than required will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. State insurance regulatory authorities could require an insurer to cease operations in the event the insurer fails to maintain the required statutory capital.

The state laws of Florida and New York permit an insurer to pay dividends or make distributions out of that part of statutory surplus derived from net operating profit and net realized capital gains. The state laws further provide calculations to determine the amount of dividends or distributions that can be made without the prior approval of the insurance regulatory authorities in those states and the amount of dividends or distributions that would require prior approval of the insurance regulatory authorities in those states. Statutory RBC requirements may further restrict our insurance subsidiaries' ability to pay dividends or make distributions if the amount of the intended dividend or distribution would cause statutory surplus to fall below minimum RBC requirements. Additionally, in connection with our former subsidiary UPC's plan for run off, IIC has agreed to not pay ordinary dividends without prior approval of the New York Department of Financial Services until January 1, 2025.

Our insurance subsidiaries must each file with the various insurance regulatory authorities an “Annual Statement” which reports, among other items, statutory net income (loss) and surplus as regards policyholders, which is called stockholders' equity under GAAP. The table below details the statutory net income (loss) for each of our regulated entities for the three months ended March 31, 2023 and 2022.

35

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

	Three Months Ended March 31,
	2023		2022
ACIC(1)	18,230		6,110
IIC	(2,203)		(3,985)
Total	$	16,027	$	2,125

(1) ACIC results are inclusive of JIC as these entities were merged effective June 1, 2022.

Our insurance subsidiaries must maintain capital and surplus ratios or balances as determined by the regulatory authority of the states in which they are domiciled. At March 31, 2023, we met these requirements. The table below details the amount of surplus as regards policyholders for each of our regulated entities at March 31, 2023 and December 31, 2022.

	March 31, 2023		December 31, 2022
ACIC(1)	101,811		77,511
IIC	23,966		26,152
Total	$	125,777	$	103,663

(1) ACIC results are inclusive of JIC as these entities were merged effective June 1, 2022.

16)    ACCUMULATED OTHER COMPREHENSIVE LOSS

We report changes in other comprehensive income (loss) items within comprehensive income (loss) on the Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss), and we include accumulated other comprehensive income (loss) as a component of stockholders' equity on our Unaudited Condensed Consolidated Balance Sheets.

The table below details the components of accumulated other comprehensive loss at period end:

	Pre-Tax Amount		Tax (Expense) Benefit		Net-of-Tax Amount
December 31, 2022	$	(33,041)	$	2,094	$	(30,947)
Changes in net unrealized losses on investments	5,574		(315)		5,259
Reclassification adjustment for realized losses	(1,260)		315		(945)
Impact of deconsolidation of discontinued operations	$	(3)	$	1,007	$	1,004
March 31, 2023	$	(28,730)	$	3,101	$	(25,629)

17)    STOCKHOLDERS' EQUITY

Our Board of Directors declared dividends on our outstanding shares of common stock to stockholders of record as follows for the periods presented (in thousands, except per share amounts):

	Three Months Ended March 31,
	2023				2022
	Per Share Amount		Aggregate Amount		Per Share Amount		Aggregate Amount
First Quarter	$	—	$	—	$	0.06	$	2,589

In July 2019, our Board of Directors authorized a stock repurchase plan of up to $25,000,000 of our common stock. As of March 31, 2023, we had not yet repurchased any shares under this stock repurchase plan. The timing and volume of repurchases are at the discretion of management, based on the capital needs of the business, the market price of UIHC common stock, and general market conditions. The plan has no expiration date, and the plan may be suspended or discontinued at any time.

36

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

See Note 18 in these Notes to Unaudited Condensed Consolidated Financial Statements for information regarding stock-based compensation activity.

18) STOCK-BASED COMPENSATION

We account for stock-based compensation under the fair value recognition provisions of ASC Topic 718 - Compensation - Stock Compensation. We recognize stock-based compensation cost over the award’s requisite service period on a straight-line basis for time-based restricted stock grants and performance-based restricted stock grants. We record forfeitures as they occur for all stock-based compensation.

The following table presents our total stock-based compensation expense:

	Three Months Ended March 31,
	2023		2022
Employee stock-based compensation expense
Pre-tax	$	309	$	390
Post-tax (1)	244		308
Director stock-based compensation expense
Pre-tax	26		62
Post-tax (1)	21		49

(1) The after tax amounts are determined using the 21% corporate federal tax rate.

We had approximately $1,709,000 of unrecognized stock compensation expense at March 31, 2023 related to non-vested stock-based compensation granted, which we expect to recognize over a weighted-average period of approximately 1.8 years. We had approximately $10,000 of unrecognized director stock-based compensation expense at March 31, 2023 related to non-vested director stock-based compensation granted, which we expect to recognize over a weighted-average period of approximately 0.1 years.

Restricted stock, restricted stock units and performance stock units

Stock-based compensation cost for restricted stock awards, restricted stock units and performance stock units is measured based on the closing fair market value of our common stock on the date of grant, which vest in equal installments over the requisite service period of typically three years. Restricted stock awards granted to non-employee directors vest over a one-year period. Each restricted stock unit and performance stock unit represents our obligation to deliver to the holder one share of common stock upon vesting.

Performance stock units vest based on the Company's return on average equity compared to a defined group of peer companies. On the grant date, we issue the target number of performance stock units. They are subject to forfeitures if performance goals are not met. The actual number of performance stock units earned can vary from zero to 150 percent of the target for the 2023, 2022, and 2021 awards.

We did not grant any shares of restricted common stock during the three month period ended March 31, 2023. We granted 114,866 shares of restricted common stock during the three month period ended March 31, 2022, which had a weighted-average grant date fair value of $3.59 per share.

The following table presents certain information related to the activity of our non-vested common stock grants:

	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2022	714,239	$	2.73
Granted	—	—
Less: Forfeited	856	3.59
Less: Vested	44,457	4.40
Outstanding as of March 31, 2023	668,926	$	2.62

37

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

Stock options

Stock option fair value was estimated on the grant date using the Black-Scholes-Merton formula. Stock options vest in equal installments over the requisite service period of typically three years. The following weighted-average assumptions were used to value the stock options granted:

	2023		2022
Expected annual dividend yield	—	%	—	%
Expected volatility	—	%	49.66	%
Risk-free interest rate	—	%	2.92	%
Expected term	N/A		6 years

The expected annual dividend yield for our options granted during 2022 is based on no dividends being paid in future quarters. The expected volatility is a historical volatility calculated based on the daily closing prices over a period equal to the expected term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the grant date. Expected term takes into account the three-year graded vesting term and the 10-year contractual term of the option.

We did not grant any stock options during the three month periods ended March 31, 2023 and 2022.

The following table presents certain information related to the activity of our non-vested stock option grants:

	Number of Stock Options	Weighted Average Exercise Prices		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2022	1,250,685	$	3.71	7.66	$	—
Granted	—	—		—	—
Less: Forfeited	—	—		—	—
Less: Expired	161,925	3.05		—	—
Less: Exercised	—	—		—	—
Outstanding as of March 31, 2023	1,088,760	$	3.81	8.55	$	451
Vested as of March 31, 2023(1)	532,797	$	7.26	7.79	$	112
Exercisable as of March 31, 2023	270,861	$	6.57	7.89	$	112

(1) The vested shares are calculated based on all vested shares at March 31, 2023, inclusive of those that have since expired. The weighted average exercise prices, weighted-average remaining contractual term and aggregate intrinsic value is calculated based on only vested shares that are outstanding and exercisable at March 31, 2023.

19)    SUBSEQUENT EVENTS

We evaluate all subsequent events and transactions for potential recognition or disclosure in our financial statements.

On April 5, 2023, the Company filed a Motion for Release of Property of ACIC in the Circuit Court of the Second Judicial

Circuit for Leon County, Florida, requesting that UPC immediately remit to ACIC reinsurance recoveries currently held by UPC and reinsurance recoveries recovered by UPC in the future in accordance with the Company’s Allocation Agreement. Alternatively, ACIC requested future reinsurance recoveries remitted to UPC be placed into a segregated account for future reconciliation and remittance to ACIC. On April 13, 2023, the DFS filed a response to the Company’s motion, objecting to ACIC’s position. On April 14, 2023, the Court denied ACIC’s motion without prejudice.

On April 19, 2023, United Insurance Holding Corp.'s (the "Company") subsidiary, American Coastal Insurance Company ("ACIC") entered into a Memorandum of Understanding (the "Memorandum") with the Florida Department of Financial Services, Division of Rehabilitation and Liquidation (the "DFS") as receiver of the Company's former subsidiary, United Property & Casualty Insurance Company ("UPC") related to the Reinsurance Allocation Agreement (the "Allocation Agreement") by and between ACIC and UPC.

38

UNITED INSURANCE HOLDINGS CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

March 31, 2023

The Allocation Agreement, effective on June 1, 2022, and approved by the Florida Office of Insurance Regulation (the "FLOIR") on December 5, 2022, describes the manner in which reinsurance recoveries under shared reinsurance agreements are allocated between ACIC and UPC. Under the terms of the Memorandum, ACIC and the DFS as receiver of UPC have reached the following agreement:

1.The DFS adopts, ratifies and affirms the Allocation Agreement.

2.All future reinsurance recoverable under reinsurance agreements applicable to the Allocation Agreement for Hurricane Ian losses shall be paid, either directly from the reinsurers, or directly from the reinsurance intermediary responsible therefor, to ACIC. If a true up adjustment demonstrates that any future reinsurance recoveries were over-collected by ACIC, ACIC will remit any over-payment to UPC.

On May 15, 2023, the Company, together with it's subsidiary, ACIC, entered into a Tax Memorandum of Understanding (the "Tax Memorandum") with the DFS as receiver of the Company's former subsidiary, UPC. On February 27, 2023, UPC entered into receivership with the DFS as receiver. As of March 31, 2023, in accordance with the various reinsurance allocation agreements including the Allocation Agreement described above, the Company is due approximately $38,352,000 of net reinsurance recoveries received by UPC on behalf of the Company but not settled prior to receivership. In addition, in April ACIC paid reinsurance premiums on behalf of UPC totaling $12,929,000. The Company and the DFS believe that an opportunity exists to settle these balances via the realization of certain deferred tax assets of the Company's consolidated Federal and Florida tax returns to which ACIC and UPC belong. UPC holds certain deferred tax assets that are believed to be on no value to UPC on a stand-alone basis. However, ACIC and the Company have the opportunity, subject to certain conditions such as continuing and adequate profitability, to realize these assets. Under the terms of the Tax Memorandum, the Company, ACIC and the DFS as receiver of UPC have reached the following agreement:

1.The parties agree to cooperate with one another to achieve realization of the deferred tax assets;

2.The parties agree to deposit the funds that are or may be due to UPC pursuant to the Tax Allocation Agreement into a segregated account held by ACIC that will serve as collateral for any amount payable from or to UPC;

3.The parties agree that the Federal Income Tax Allocation Agreement entered into prior to UPC’s receivership is ratified and accepted by all parties;

4.The parties agree to an annual “true up” of the allocation of the disputed recoveries to the extent that such recoveries were not allocated correctly according to the Reinsurance Allocation Agreement;

5.In the event that ACIC, UIHC, or any of their affiliates make a claim or file a proof of claim in the UPC estate, the reviewed, approved, and/or adjudicated claim shall be reduced by the amount of (a) any tax benefit collectively received by ACIC, UIHC, or any of their affiliates as well as (b) any money withdrawn from the DTA Account for the benefit of any entity other than UPC; and

6.In the event that the benefit received by the Company is greater than the disputed recoveries, the difference shall be paid to DFS as receiver of UPC.

The Tax Memorandum allows the Company to secure amounts due from UPC to ACIC provided the Internal Revenue Service does not object to the Company utilizing UPC's net operating loss carry-forward against its future taxable income.

39

UNITED INSURANCE HOLDINGS CORP.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and related notes appearing elsewhere in this Form 10-Q, as well as with the Consolidated Financial Statements and related footnotes under Part II. Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2022. This 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."

EXECUTIVE SUMMARY

Overview

    United Insurance Holdings Corp. (referred to in this document as we, our, us, the Company or UIHC) is a holding company primarily engaged in commercial and personal property and casualty insurance business with investments in the United States. We conduct our business principally through our two wholly-owned insurance subsidiaries: American Coastal Insurance Company (ACIC); and Interboro Insurance Company (IIC). Collectively, we refer to the holding company and all our subsidiaries, including non-insurance subsidiaries, as “United Insurance Holdings,” which is the preferred brand identification for our Company.

Our Company’s primary source of revenue is generated from writing insurance in Florida and New York. Our target market in such areas consists of states where the perceived threat of natural catastrophe has caused large national insurance carriers to reduce their concentration of policies. We believe an opportunity exists for UIHC to write profitable business in such areas. During 2022, we also wrote commercial residential insurance in South Carolina and Texas, however, effective May 1, 2022, we no longer write in these states. In addition, during 2022 we wrote personal residential business in six other states, however on February 27, 2023, our former insurance subsidiary, United Property & Casualty Insurance Company (UPC) was placed into receivership with the Florida Department of Financial Services, which divested our ownership of UPC. The events leading to receivership and results of this subsidiary, now included within discontinued operations, can be seen in Note 4 of the Notes to Unaudited Condensed Consolidated Financial Statements above.

On August 25, 2022, we announced that our former subsidiary UPC had filed plans for withdrawal in the states of Florida, Louisiana, and Texas and intended to file a plan for withdrawal in the state of New York. All filed plans entail non-renewing personal lines policies in these states. Additionally, we announced that Demotech, Inc. (Demotech), an insurance rating agency, notified UPC of its intent to withdraw UPC's Financial Stability Rating. On December 5, 2022, the Florida Office of Insurance Regulation ("FLOIR") issued Consent Order No. 303643-22- CO that provided for the administrative supervision and approval of the plan of run-off for UPC (the "Consent Order"). The Consent Order provided formal approval of UPC's Plan of Run-Off (the "Plan") to facilitate a solvent wind down of its affairs in an orderly fashion. Additionally, in connection with the Plan, IIC agreed to not pay ordinary dividends without the prior approval of the New York Department of Financial Services until January 1, 2025. On February 10, 2023, we announced that a solvent run-off of UPC was unlikely and on February 27, 2023, UPC was placed into receivership with the Florida Department of Financial Services (the "DFS") which divested our ownership of UPC.

Our Company, together with its former subsidiary, UPC and wholly-owned subsidiary United Insurance Management, L.C. (UIM), entered into a Renewal Rights Agreement (Southeast Renewal Agreement), dated as of December 30, 2021 with Homeowners Choice Property and Casualty Insurance Company, Inc. (HCPCI), pursuant to which our Company, UPC and UIM agreed to sell, and HCPCI agreed to purchase, the renewal rights to UPC’s personal lines homeowners business in Georgia, South Carolina and North Carolina. The transfer of policies is subject to regulatory approval. Effective June 1, 2022, we began transitioning South Carolina policies to HCPCI. The sale was consummated on December 30, 2021.

Effective June 1, 2022, we entered into a quota share reinsurance agreement with TypTap Insurance Company (Typtap) in connection with the Southeast Renewal Agreement. Under the terms of this agreement, we ceded 100% of our former subsidiary UPC's in-force, new, and renewal policies in the states of Georgia, North Carolina, and South Carolina. This agreement replaces the 85% quota share agreement with HCPCI effective December 31, 2021. Also effective June 1, our third-party quota share reinsurance agreements were renewed to exclude these states. We will no longer retain any risk associated with these states.

Our Company, together with its former subsidiary UPC and wholly-owned subsidiary UIM, entered into a Renewal Rights Agreement (Northeast Renewal Agreement), dated as of January 18, 2021 with HCPCI and HCI Group, Inc. (HCI), pursuant to

40

UNITED INSURANCE HOLDINGS CORP.

which our Company, UPC and UIM agreed to sell, and HCPCI agreed to purchase, the renewal rights to UPC’s personal lines homeowners business in Connecticut, Massachusetts, New Jersey and Rhode Island. The transfer of all states was completed as of June 30, 2022.

Effective June 1, 2021, we entered into a quota share reinsurance agreement with HCPCI and TypTap in connection with the Northeast Renewal Agreement. Under the terms of this agreement, we ceded 100% of our former subsidiary UPC's in-force, new, and renewal policies in the states of Connecticut, New Jersey, Massachusetts, and Rhode Island. The cession of these policies is 50% to HCPCI and 50% to TypTap.

We have historically grown our business through strong organic growth, complemented by strategic acquisitions and partnerships, including our acquisitions of AmCo Holding Company, LLC (AmCo) and its subsidiaries, including ACIC, in April 2017, IIC in April 2016, and Family Security Holdings, LLC (FSH), including its subsidiary Family Security Insurance Company, Inc. (FSIC), in February 2015, and our strategic partnership with a subsidiary of Tokio Marine Kiln Group Limited (Tokio Marine), which formed Journey Insurance Company (JIC) in August 2018. Effective June 1, 2022, we merged JIC into ACIC, with ACIC being the surviving entity. Effective May 31, 2022, we merged FSIC into UPC, with UPC being the surviving entity.

As a result of the receivership of our former subsidiary UPC by the DFS effective February 27, 2022, our policies in-force decreased by 51.3% from 48,152 policies in-force at March 31, 2022 to 23,473 policies in-force at March 31, 2023.

The following discussion highlights significant factors influencing the consolidated financial position and results of operations of United Insurance Holdings. In evaluating our results of operations, we use premiums written and earned, policies in-force and new and renewal policies by geographic concentration. We also consider the impact of catastrophe losses and prior year development on our loss ratios, expense ratios and combined ratios. In monitoring our investments, we use credit quality, investment income, cash flows, realized gains and losses, unrealized gains and losses, asset diversification and portfolio duration. To evaluate our financial condition, we consider our liquidity, financial strength, ratings, book value per share and return on equity.

41

UNITED INSURANCE HOLDINGS CORP.

2023 Highlights

	Three Months Ended March 31,
	2023		2022
Gross premiums written	$	187,123	$	142,414
Gross premiums earned	144,476		122,733
Net premiums earned	87,324		57,746
Total revenues	90,320		58,432
Earnings from continuing operations, before income tax	33,844		(988)
Income (loss) from discontinued operations, net of tax	236,913		(32,984)
Consolidated net income (loss) attributable to UIHC	267,280		(33,172)
Net income (loss) available to UIHC stockholders per diluted share
Continuing Operations	$	0.70	$	—
Discontinued Operations	5.44		(0.77)
Total	$	6.14	$	(0.77)
Reconciliation of net income (loss) to core income (loss):
Plus: Non-cash amortization of intangible assets	$	812	$	812
Less: Income (loss) from discontinued operations, net of tax	236,913		(32,984)
Less: Realized losses on investment portfolio	(83)		37
Less: Unrealized gains (losses) on equity securities	474		(770)
Less: Net tax impact (1)	88		324
Core income (loss) (2)	30,700		1,033
Core income (loss) per diluted share(2)	$	0.70	$	0.02
Book value per share	$	2.08	$	(4.21)

(1) In order to reconcile the net loss to the core loss measure, we included the tax impact of all adjustments using the 21% corporate federal tax rate.

(2) Core income (loss), a measure that is not based on U.S. generally accepted accounting principles (GAAP), is reconciled above to net income (loss), the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this Form 10-Q is in "Definitions of Non-GAAP Measures" below.

42

UNITED INSURANCE HOLDINGS CORP.

Restated Consolidated Net Income (Loss)

	Three Months Ended March 31,
	2023			2022
REVENUE:
Gross premiums written	$	187,123		$	142,414
Change in gross unearned premiums	(42,647)			(19,681)
Gross premiums earned	144,476			122,733
Ceded premiums earned	(57,152)			(64,987)
Net premiums earned	87,324			57,746
Net investment income	2,589			1,404
Net realized investment gains (losses)	(83)			37
Net unrealized gains (losses) on equity securities	474			(770)
Management fee income	—			—
Other revenue	16			15
Total revenue	90,320			58,432
EXPENSES:
Losses and loss adjustment expenses	16,412			26,315
Policy acquisition costs	26,972			20,308
Operating expenses	2,168			3,707
General and administrative expenses	8,793			8,064
Interest expense	2,719			2,359
Total expenses	57,064			60,753
Income before other income	33,256			(2,321)
Other income	588			1,333
Income before income taxes	33,844			(988)
Provision for income taxes	3,477			(715)
Net income from continuing operations, net of tax	$	30,367		$	(273)
Income (loss) from discontinued operations, net of tax	236,913			(32,984)
Net income (loss)	$	267,280		$	(33,257)
Less: Net loss attributable to noncontrolling interests	—			(85)
Net income (loss) attributable to UIHC	$	267,280		$	(33,172)
Earnings available to UIHC common stockholders per diluted share	$	6.14		$	(0.77)
Book value per share	$	2.08		$	(4.21)
Return on equity based on GAAP net income (loss)	NM			(41.7)		%
Loss ratio, net (1)	18.9		%	45.6		%
Expense ratio (2)	43.4		%	55.6		%
Combined ratio (3)	62.3		%	101.1		%
Effect of current year catastrophe losses on combined ratio	3.0		%	9.6		%
Effect of prior year development on combined ratio	(3.6)		%	(5.3)		%
Underlying combined ratio (4)	63.0		%	96.8		%

(1) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses.

(2) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate this component separately from our loss expenses.

(3) Combined ratio is the sum of the loss ratio, net and the expense ratio, net. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business.

(4) Underlying combined ratio, a measure that is not based on GAAP, is reconciled above to the combined ratio, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this Form 10-Q is in "Definitions of Non-GAAP Measures" below.

43

UNITED INSURANCE HOLDINGS CORP.

Definitions of Non-GAAP Measures

We believe that investors' understanding of UIHC's performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Combined ratio excluding the effects of current year catastrophe losses and prior year reserve development (underlying combined ratio) is a non-GAAP measure, that is computed by subtracting the effect of current year catastrophe losses and prior year development from the combined ratio. We believe that this ratio is useful to investors and it is used by management to highlight the trends in our business that may be obscured by current year catastrophe losses and prior year development. Current year catastrophe losses cause our loss trends to vary significantly between periods as a result of their frequency of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year development is caused by unexpected loss development on historical reserves. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of our business.

Net loss and LAE excluding the effects of current year catastrophe losses and prior year reserve development (underlying loss and LAE) is a non-GAAP measure, that is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and LAE. We use underlying loss and LAE figures to analyze our loss trends that may be impacted by current year catastrophe losses and prior year development on our reserves. As discussed previously, these two items can have a significant impact on our loss trends in a given period. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our performance. The most directly comparable GAAP measure is net loss and LAE. The underlying loss and LAE measure should not be considered a substitute for net loss and LAE and does not reflect the overall profitability of our business.

Net income (loss) excluding the effects of amortization of intangible assets, income (loss) from discontinued operations, realized gains (losses) and unrealized gains (losses) on equity securities, net of tax (core income (loss)) is a non-GAAP measure, which is computed by adding amortization, net of tax, to net income (loss) and subtracting income (loss) from discontinued operations, net of tax, realized gains (losses) on our investment portfolio, net of tax, and unrealized gains (losses) on our equity securities, net of tax, from net income (loss). Amortization expense is related to the amortization of intangible assets acquired, including goodwill, through mergers and therefore the expense does not arise through normal operations. Investment portfolio gains (losses) and unrealized equity security gains (losses) vary independent of our operations. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our performance. The most directly comparable GAAP measure is net income (loss). The core income (loss) measure should not be considered a substitute for net loss and does not reflect the overall profitability of our business.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

When we prepare our consolidated financial statements and accompanying notes in conformity with GAAP, we must make estimates and assumptions about future events that affect the amounts we report. Certain of these estimates result from judgments that can be subjective and complex. As a result of that subjectivity and complexity, and because we continuously evaluate these estimates and assumptions based on a variety of factors, actual results could materially differ from our estimates and assumptions if changes in one or more factors require us to make accounting adjustments. During the three months ended March 31, 2023, we reassessed our critical accounting policies and estimates as disclosed in Note 2 to the Notes to Unaudited Condensed Consolidated Financial Statements and our Annual Report on Form 10-K for the year ended December 31, 2022. We have made no material changes or additions with regard to those policies and estimates.

RECENT ACCOUNTING STANDARDS

Please refer to Note 2 in the Notes to Unaudited Condensed Consolidated Financial Statements for a discussion of recent accounting standards that may affect us.

44

UNITED INSURANCE HOLDINGS CORP.

ANALYSIS OF FINANCIAL CONDITION - MARCH 31, 2023 COMPARED TO DECEMBER 31, 2022

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our accompanying unaudited condensed consolidated interim financial statements and related notes, and in conjunction with the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2022.

Investments

The primary goals of our investment strategy are to preserve capital, maximize after-tax investment income, maintain liquidity and minimize risk. To accomplish our goals, we purchase debt securities in sectors that represent the most attractive relative value, and we maintain a moderate equity exposure. Limiting equity exposure manages risks and helps to preserve capital for two reasons: first, bond market returns are less volatile than stock market returns, and second, should the bond issuer enter bankruptcy liquidation, bondholders generally have a higher priority than equity holders in a bankruptcy proceeding. Our investment strategy is the same for both our personal lines and commercial lines operating segments.

We must comply with applicable state insurance regulations that prescribe the type, quality and concentrations of investments our insurance subsidiaries can make; therefore, our current investment policy limits investment in non-investment-grade fixed maturities and limits total investment amounts in preferred stock, common stock and mortgage notes receivable. We do not invest in derivative securities.

Two outside asset management companies, which have authority and discretion to buy and sell securities for us, manage our investments subject to (i) the guidelines established by our Board of Directors and (ii) the direction of management. The Investment Committee of our Board of Directors reviews and approves our investment policy on a regular basis.

Our cash, cash equivalents, restricted cash and investment portfolio totaled $372,721,000 at March 31, 2023, compared to $340,905,000 at December 31, 2022.

The following table summarizes our investments, by type:

	March 31, 2023				December 31, 2022
	Estimated Fair Value		Percent of Total		Estimated Fair Value		Percent of Total
U.S. government and agency securities	$	3,409	0.9%		$	2,385	0.7%
Foreign government	991		0.3%		991		0.3%
States, municipalities and political subdivisions	28,582		7.7%		26,895		7.9%
Public utilities	7,820		2.1%		7,694		2.3%
Corporate securities	85,723		23.0%		83,343		24.3%
Mortgage-backed securities	56,002		15.0%		56,115		16.5%
Asset-backed securities	28,206		7.6%		27,259		8.0%
Total fixed maturities	210,733		56.6	%	204,682		60.0	%
Mutual funds	16,181		4.3%		15,657		4.6%
Total equity securities	16,181		4.3	%	15,657		4.6	%
Other investments	3,550		1.0	%	3,675		1.1	%
Total investments	230,464		61.9%		224,014		65.7%
Cash and cash equivalents	92,586		24.8	%	70,903		20.8	%
Restricted cash	49,671		13.3%		45,988		13.5%
Total cash, cash equivalents, restricted cash and investments	$	372,721	100.0	%	$	340,905	100.0	%

45

UNITED INSURANCE HOLDINGS CORP.

We classify all of our fixed-maturity investments as available-for-sale. Our investments at March 31, 2023 and December 31, 2022 consisted mainly of U.S. government and agency securities, states, municipalities and political subdivisions, mortgage-backed securities and securities of investment-grade corporate issuers. Our equity holdings consisted mainly of securities issued by companies in the financial, utilities and industrial sectors or mutual funds. At March 31, 2023, approximately 79.6% of our fixed maturities were U.S. Treasuries or corporate bonds rated “A” or better, and 20.4% were corporate bonds rated “BBB” or "BB".

Reinsurance

We follow the industry practice of reinsuring a portion of our risks. Reinsurance involves transferring, or "ceding", all or a portion of the risk exposure on policies we write to another insurer, known as a reinsurer. To the extent that our reinsurers are unable to meet the obligations they assume under our reinsurance agreements, we remain primarily liable for the entire insured loss under the policies we write.

Our reinsurance program is designed, utilizing our risk management methodology, to address our exposure to catastrophe losses. According to the Insurance Service Office (ISO), a catastrophe loss is defined as a single unpredictable incident or series of closely related incidents that result in $25,000,000 or more in U.S. industry-wide direct insured losses to property and that affect a significant number of policyholders and insurers (ISO catastrophes). In addition to ISO catastrophes, we also include as catastrophes those events (non-ISO catastrophes), which may include losses, that we believe are, or will be, material to our operations which we define as incidents that result in $1,000,000 or more in losses for multiple policyholders.

During the second quarter of 2022, we placed our reinsurance program for the 2022 hurricane season. We purchased catastrophe excess of loss reinsurance protection up to an exhaustion point of approximately $2,500,000,000 in the aggregate, including coverage related to our former insurance subsidiary, UPC. The treaties reinsure for personal and commercial lines property excess catastrophe losses caused by multiple perils including hurricanes and tropical storms. The agreements became effective as of June 1, 2022, for a one-year term, and incorporate the mandatory coverage required by and placed with the Florida Hurricane Catastrophe Fund (FHCF) and coverage required under the Reinsurance to Assist Policyholders Program (RAP Program). The FHCF and RAP Program covers Florida risks only and we participate at 90%. Under our core catastrophe excess of loss treaty, retention on a first and second event is $16,400,000. During the third quarter, one of our reinsurers participating on the $25,000,000 excess of $20,000,000 layer of the core catastrophe program exercised a contractual right to terminate their participation due to Demotech's downgrade of UPC's Financial Stability Rating. We were unsuccessful in replacing this coverage in the open market so our captive reinsurer, UPC Re, stepped into the $25,000,000 excess of $20,000,000 layer which was subsequently impacted by Hurricane Ian resulting in an additional retained loss of $20,100,000 million. The exhaustion point of IIC's catastrophe reinsurance program is approximately $200,000,000 in the aggregate, with a retention of $3,000,000 per occurrence, covering all perils.

During the third quarter of 2022, the Company's core catastrophe reinsurance program was impacted by Hurricane Ian. As a result, the Company has approximately $508 million of occurrence limit remaining for Ian, all of which is attributable to ACIC only. After reinstatement premiums of approximately $15.4 million, the Company, with its former subsidiary UPC has approximately $993 million of aggregate limit remaining after Ian, based on our estimated ultimate net loss subject to the core catastrophe reinsurance program.

Effective January 1, 2023, we renewed our all other perils (AOP) catastrophe excess of loss agreement. The agreement

provides protection from catastrophe loss events other than named windstorms and earthquakes up to $101,000,000.

During the third quarter of 2022, one of our private reinsurers who held a 100% share of the $15,000,000 in excess of $15,000,000 layer on our all other perils catastrophe excess of loss agreement notified us of their intent to terminate the agreement due to the contractual provision regarding the change in UPC's statutory surplus being greater than 25%. We agreed to a termination and commutation date of September 30, 2022 for this contract. This change will result in approximately $1,300,000 of ceded premium savings that would have otherwise been due in the fourth quarter of 2022 and the Company retaining all the risk for any non-hurricane catastrophe losses up to $30,000,000, excluding any quota share recoveries.

46

UNITED INSURANCE HOLDINGS CORP.

The table below outlines our quota share agreements in effect for the three months ended March 31, 2023 and 2022.

Reinsurer	Companies in Scope (1)	Effective Dates	Cession Rate	States in Scope
External third-party	UPC, FSIC & ACIC	06/01/2022 - 06/01/2023	10% (2)	Florida, Louisiana, Texas
TypTap	UPC	06/01/2022 - 06/01/2023	100% (3)	Georgia, North Carolina, South Carolina
External third-party	UPC, FSIC & ACIC	12/31/2021 - 12/31/2022	8% (2)	Florida, Louisiana, Texas
HCPCI	UPC	12/31/2021 - 06/01/2022	85%	Georgia, North Carolina, South Carolina
External third-party	UPC & FSIC	12/31/2021 - 12/31/2022	25% (4)	Florida, Louisiana, Texas
HCPCI / TypTap (5)	UPC	06/01/2021 - 06/01/2022	100% (3)	Connecticut, New Jersey, Massachusetts, Rhode Island
External third-party	UPC, FSIC & ACIC (6)	06/01/2021 - 06/01/2022	15% (2)	Florida, Georgia, Louisiana, North Carolina, South Carolina, Texas
IIC	UPC	12/31/2020 - 12/31/2022	100%	New York

(1) Effective May 31, 2022, FSIC was merged into UPC, with UPC being the surviving entity.

(2) This treaty provides coverage for all catastrophe perils and attritional losses incurred. For all catastrophe perils, the quota share agreement provides ground- up protection effectively reducing our retention for catastrophe losses.

(3) This treaty provides coverage on our in-force, new and renewal policies until these states are transitioned to HCPCI or TypTap upon renewal.

(4) This treaty provides coverage on non-catastrophe losses on policies in-force on the effective date of the agreement.

(5) Cessions are split 50% to HCPCI and 50% to TypTap.

Reinsurance costs as a percentage of gross earned premium during the three month periods ended March 31, 2023 and 2022 were as follows:

	2023		2022
Three Months Ended March 31,
Non-at-Risk	(0.5)	%	(0.6)	%
Quota Share	(6.1)	%	(15.6)	%
All Other	(33.0)	%	(36.8)	%
Total Ceding Ratio	(39.6)	%	(53.0)	%

Reinsurance costs as a percent of gross earned premium for our personal residential property and casualty insurance policies (personal lines) and commercial residential property and casualty insurance policies (commercial lines) operating segments during the three month periods ended March 31, 2023 and 2022 were as follows:

	Personal				Commercial
	2023		2022		2023		2022
Three Months Ended March 31,
Non-at-Risk	(1.6)	%	(1.2)	%	(0.4)	%	(0.5)	%
Quota Share	—	%	—	%	(6.7)	%	(17.8)	%
All Other	(28.8)	%	(18.2)	%	(33.3)	%	(39.4)	%
Total Ceding Ratio	(30.4)	%	(19.4)	%	(40.4)	%	(57.7)	%

Please note that the sum of the percentages above will not reconcile to the consolidated percentages as they are calculated using each operating segments’ gross earned premium rather than our consolidated gross earned premium.

We amortize our ceded unearned premiums over the annual agreement period, and we record that amortization in ceded premiums earned on our Unaudited Condensed Consolidated Statements of Comprehensive Loss. The table below summarizes

47

UNITED INSURANCE HOLDINGS CORP.

the amounts of our ceded premiums written under the various types of agreements, as well as the amortization of ceded unearned premiums:

	Three Months Ended March 31,
	2023		2022
Quota Share	$	(12,243)	$	(23,128)
Excess-of-loss	(19,295)		(5,507)
Equipment, identity theft, and cyber security	(820)		(746)
Ceded premiums written	$	(32,358)	$	(29,381)
Change in ceded unearned premiums	(24,794)		(35,606)
Ceded premiums earned	$	(57,152)	$	(64,987)

The breakdown of our ceded premiums written under the various types of agreements, as well as the amortization of ceded unearned premiums for our personal lines and commercial lines operating segments can be seen in the tables below. These values can be reconciled to the table above.

Personal Lines Operating Segment

	Three Months Ended March 31,
	2023		2022
Excess-of-loss	(995)		353
Equipment, identity theft, and cyber security	(290)		(168)
Ceded premiums written	$	(1,285)	$	185
Change in ceded unearned premiums	(2,493)		(3,150)
Ceded premiums earned	$	(3,778)	$	(2,965)

Commercial Lines Operating Segment Impact

	Three Months Ended March 31,
	2023		2022
Quota Share	$	(12,243)	$	(23,128)
Excess-of-loss	(18,300)		(5,860)
Equipment, identity theft, and cyber security	(530)		(578)
Ceded premiums written	$	(31,073)	$	(29,566)
Change in ceded unearned premiums	(22,301)		(32,456)
Ceded premiums earned	$	(53,374)	$	(62,022)

Current year catastrophe losses disaggregated between name and numbered storms and all other catastrophe loss events are shown in the following table.

	2023					2022
	Number of Events	Incurred Loss and LAE (1)		Combined Ratio Impact		Number of Events	Incurred Loss and LAE (1)		Combined Ratio Impact
Three Months Ended March 31,
Current period catastrophe losses incurred
Named and numbered storms	—	$	—	—	%	—	$	—	—	%
All other catastrophe loss events	3	2,615		3.0	%	3	5,528		9.6	%
Total	3	$	2,615	3.0	%	3	$	5,528	9.6	%

(1) Incurred loss and LAE is equal to losses and LAE paid plus the change in case and incurred but not reported reserves. Shown net of losses ceded to reinsurers. Incurred loss and LAE and number of events includes the development on storms during the year in which it occurred.

48

UNITED INSURANCE HOLDINGS CORP.

The impact of the current year catastrophes to our personal lines and commercial lines operating segments can be seen in the tables below. Please note that the catastrophe events may have impacted both operating segments. As a result, the sum of the number of events in the tables below will not reconcile to the consolidated number of events above. In addition, the combined ratio impact is calculated using each segment's net premiums earned and sum of the ratios in the tables below will not reconcile to the ratios above.

Personal Lines Operating Segment

	2023					2022
	Number of Events	Incurred Loss and LAE (1)		Combined Ratio Impact		Number of Events	Incurred Loss and LAE (1)		Combined Ratio Impact
Three Months Ended March 31,
Current period catastrophe losses incurred
Named and numbered storms	—	$	—	—	%	—	$	—	—	%
All other catastrophe loss events	3	518		6.0	%	3	2,423		19.7	%
Total	3	$	518	6.0	%	3	$	2,423	19.7	%

(1) Incurred loss and LAE is equal to losses and LAE paid plus the change in case and incurred but not reported reserves. Shown net of losses ceded to reinsurers. Incurred loss and LAE and number of events includes the development on storms during the year in which it occurred.

Commercial Lines Operating Segment

	2023					2022
	Number of Events	Incurred Loss and LAE (1)		Combined Ratio Impact		Number of Events	Incurred Loss and LAE (1)		Combined Ratio Impact
Three Months Ended March 31,
Current period catastrophe losses incurred
Named and numbered storms	—	$	—	—	%	—	$	—	—	%
All other catastrophe loss events	1	2,097		2.7	%	3	3,105		6.8	%
Total	1	$	2,097	2.7	%	3	$	3,105	6.8	%

(1) Incurred loss and LAE is equal to losses and LAE paid plus the change in case and incurred but not reported reserves. Shown net of losses ceded to reinsurers. Incurred loss and LAE and number of events includes the development on storms during the year in which it occurred.

See Note 10 in our Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding our reinsurance program.

Unpaid Losses and Loss Adjustments

We generally use the term “loss(es)” to collectively refer to both loss and LAE. We establish reserves for both reported and unreported unpaid losses that have occurred at or before the balance sheet date for amounts we estimate we will be required to pay in the future, including provisions for claims that have been reported but are unpaid at the balance sheet date and for obligations on claims that have been incurred but not reported at the balance sheet date. Our policy is to establish these loss reserves after considering all information known to us at each reporting period. At any given point in time, our loss reserve represents our best estimate of the ultimate settlement and administration costs of our insured claims incurred and unpaid.

Unpaid losses and LAE totaled $748,365,000 and $842,958,000 as of March 31, 2023 and December 31, 2022, respectively. Of this total, $727,320,000 and $816,489,000, respectively, is related to our commercial lines operating segment. The remaining $21,045,000 and $26,469,000, respectively, is related to our personal lines operating segment. On a consolidated basis, this balance has decreased from year end as we continue to settle claims related to Hurricane Ian which made landfall in the third quarter of 2022.

Since the process of estimating loss reserves requires significant judgment due to a number of variables, such as fluctuations in inflation, judicial decisions, legislative changes and changes in claims handling procedures, our ultimate liability

49

UNITED INSURANCE HOLDINGS CORP.

will likely differ from these estimates. We revise our reserve for unpaid losses as additional information becomes available, and reflect adjustments, if any, in our earnings in the periods in which we determine the adjustments as necessary.

See Note 11 in our Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding our losses and loss adjustments.

Inflation

During the fourth quarter of 2021, the United States began experiencing an increase in the rate of inflation. During the first half of 2022, inflation hit 8.6%, its highest level since 1981, impacting all industries. Premium rates charged to policyholders are typically developed several months prior to implementation, using market information available at the time of the filing. While we attempt to charge adequate premium rates to combat increased costs, during periods of high inflation, we may not have included the negative impact to loss and loss adjustment expenses into our projections, resulting in premium rates that may not be sufficient. In addition, we may be limited in our ability to raise premium rates due to regulatory restrictions. As a result of the inflation during 2023, higher loss and loss adjustment expenses have had a negative impact on our results of operations during the three months ended March 31, 2023.

In response to inflation, the Federal Reserve has also increased interest rates which may negatively affect the market value of our investment portfolio and our rate of return on investments. Management monitors and responds to the inflationary pressure and changing interest rate environment for potential long-term material impacts to our investment portfolio and results of operations.

50

UNITED INSURANCE HOLDINGS CORP.

RESULTS OF OPERATIONS - COMPARISON OF THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022

Net income attributable to UIHC for the three months ended March 31, 2023 increased $300,452,000, or 905.7%, to net income of $267,280,000 for the first quarter of 2023 from a net loss of $33,172,000 for the same period in 2022. Drivers of net income from continuing operations during the three months ended March 31, 2023 include increased gross premiums earned, decreased loss and LAE driven by decreased non-catastrophe losses, and decreases across policy acquisition costs, operating and underwriting expenses and general and administrative expenses, the details of which are described below. In addition to continuing operations, we recognized income from discontinued operations of $236,913,000, driven by the deconsolidation of UPC.

Revenue

Our gross written premiums increased $44,709,000, or 31.4%, to $187,123,000 for the first quarter ended March 31, 2023 from $142,414,000 for the same period in 2022. This increase was driven primarily by an increase in our commercial premiums written, as we focus on transitioning towards a specialty commercial lines underwriter. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums by state and gross written premium by line of business are shown in the table below.

($ in thousands)	Three Months Ended March 31,
	2023		2022		Change
Direct Written and Assumed Premium by State (1)
Florida	$	176,611	$	125,764	$	50,847
Texas	(9)		1,986		(1,995)
New York	10,482		4,683		5,799
South Carolina	—		93		(93)
Total direct written premium by state	187,084		132,526		54,558
Assumed premium (2)	39		9,888		(9,849)
Total gross written premium by state	$	187,123	$	142,414	$	44,709
Gross Written Premium by Line of Business
Personal property	$	10,482	$	14,450	$	(3,968)
Commercial property	176,641		127,964		48,677
Total gross written premium by line of business	$	187,123	$	142,414	$	44,709

(1) We are no longer writing in Texas or South Carolina as of May 31, 2022.

(2) Assumed premium written for 2023 primarily included commercial property business assumed from unaffiliated insurers. Assumed premium written for 2022 includes New York property business assumed from our former subsidiary, UPC totaling $9,767,000.

	Three Months Ended March 31,
New and Renewal Policies(1) by State (2)	2023	2022	Change
Florida	1,157	1,472	(315)
Texas	—	18	(18)
New York	6,137	9,952	(3,815)
South Carolina	—	1	(1)
Total	7,294	11,443	(4,149)

(1) Only includes new and renewal homeowner, commercial and dwelling fire policies written during the quarter.

(2) We are no longer writing in Texas or South Carolina as of May 31, 2022.

51

UNITED INSURANCE HOLDINGS CORP.

Expenses

Expenses for the three months ended March 31, 2023 decreased $3,689,000, or 6.1%, to $57,064,000 from $60,753,000 for the same period in 2022. The decrease in expenses was primarily due to a decrease in loss and LAE of $9,903,000. Operating and underwriting expenses also decreased $1,539,000 in the first quarter of 2023 compared to the first quarter of 2022. This was partially offset by increased policy acquisition costs of $6,664,000 and general and administrative costs of $729,000.

The calculations of our loss ratios and underlying loss ratios are shown below.

	Three Months Ended March 31,
	2023			2022			Change
Net loss and LAE	$	16,412		$	26,315		$	(9,903)
% of Gross earned premiums	11.5		%	21.4		%	(9.9) pts
% of Net earned premiums	18.9		%	45.6		%	(26.7) pts
Less:
Current year catastrophe losses	$	2,615		$	5,528		$	(2,913)
Prior year reserve unfavorable development	(3,165)			(3,064)			(101)
Underlying loss and LAE (1)	$	16,962		$	23,851		$	(6,889)
% of Gross earned premiums	11.7		%	19.4		%	(7.7) pts
% of Net earned premiums	19.4		%	41.3		%	(21.9) pts

(1) Underlying loss and LAE is a non-GAAP measure and is reconciled above to Net loss and LAE, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this document is in the "Definitions of Non-GAAP Measures" section of this Form 10-Q.

The calculations of our expense ratios are shown below.

	Three Months Ended March 31,
	2023			2022			Change
Policy acquisition costs	$	26,972		$	20,308		$	6,664
Operating and underwriting	2,168			3,707			(1,539)
General and administrative	8,793			8,064			729
Total Operating Expenses	$	37,933		$	32,079		$	5,854
% of Gross earned premiums	26.3		%	26.1		%	0.2 pts
% of Net earned premiums	43.4		%	55.6		%	(12.2) pts

Loss and LAE decreased by $9,903,000, or 37.6%, to $16,412,000 for the first quarter of 2023 from $26,315,000 for the first quarter of 2022. Loss and LAE expense as a percentage of net earned premiums decreased 26.7 points to 18.9% for the first quarter of 2023, compared to 45.6% for the first quarter of 2022. Excluding catastrophe losses and reserve development, our gross underlying loss and LAE ratio for the first quarter of 2023 would have been 11.7%, a decrease of 7.7 points from 19.4% during the first quarter of 2022.

Policy acquisition costs increased by $6,664,000, or 32.8%, to $26,972,000 for the first quarter of 2023 from $20,308,000 for the first quarter of 2022, primarily due to a $7,537,000 increase in external management fees incurred related to our commercial lines gross written premium during the first quarter of 2023, driven by increased written premium quarter-over-quarter.

Operating and underwriting expenses decreased by $1,539,000, or 41.5%, to $2,168,000 for the first quarter of 2023 from $3,707,000 for the first quarter of 2022, driven by a decrease in investments in technology of $506,000 and a decrease in underwriting expenses of $698,000 year-over-year. Both of these decreases are driven by the change to our personal lines operating segment in 2023.

General and administrative expenses increased by $729,000, or 9.0%, to $8,793,000 for the first quarter of 2023 from $8,064,000 for the first quarter of 2022, driven by the an increase in salary related expenses of $861,000 year-over-year.

52

UNITED INSURANCE HOLDINGS CORP.

Personal Lines Operating Segment Results

Pretax earnings attributable to our personal lines operating segment for the three months ended March 31, 2023 increased $9,450,000, or 83.2%, to a pre-tax loss of $1,907,000 for the first quarter of 2023 from a pre-tax loss of $11,357,000 for the same period in 2022. The change in pretax earnings was primarily driven by a decrease in gross written premiums quarter-over-quarter as described below. Expenses decreased quarter-over-quarter, driven by decreased loss & LAE, policy acquisition costs, and operating expenses. These decreases were partially offset by an increase in general and administrative expenses quarter-over-quarter. The details of the change in these expenses are described below.

Revenue

Our gross written premiums attributable to our personal lines operating segment decreased $3,968,000, or 27.5%, to $10,482,000 for the first quarter ended March 31, 2023 from $14,450,000 for the same period in 2022. This decrease was driven primarily by a decreae in assumed premiums, driven by the termination of our quota share agreement between our former subsidiary, UPC and IIC effective December 31, 2022. The change in personal lines direct written and assumed premiums and new and renewal premiums of the personal lines operating segment quarter-over-quarter can be seen below.

($ in thousands, policies in ones)	Three Months Ended March 31,
	2023		2022		Change
Direct Written Premium	$	10,482	$	4,684	$	5,798
Assumed Premiums	—		9,766		(9,766)
Total gross written premium	$	10,482	$	14,450	$	(3,968)
New and Renewal Policies (1)	6,137		9,952		(3,815)

(1) Only includes new and renewal homeowner and dwelling fire policies written during the quarter.

53

UNITED INSURANCE HOLDINGS CORP.

Expenses

Expenses attributable to our personal lines operating segment for the three months ended March 31, 2023 decreased $11,529,000, or 48.6%, to $12,172,000 from $23,701,000 for the same period in 2022. The decrease in expenses is attributable to decreased loss and LAE driven by decreased non-catastrophe losses, as well as a decrease in policy acquisition costs and operating expenses. The details of these changes are described below.

The calculations of our personal lines operating segment loss ratios and underlying loss ratios are shown below.

	Three Months Ended March 31,
	2023			2022			Change
Net loss and LAE	$	2,511		$	12,201		$	(9,690)
% of Gross earned premiums	20.2		%	79.9		%	(59.7) pts
% of Net earned premiums	29.0		%	99.2		%	(70.2) pts
Less:
Current year catastrophe losses	$	518		$	2,423		$	(1,905)
Prior year reserve (favorable) development	(395)			(1,261)			866
Underlying loss and LAE (1)	$	2,388		$	11,039		$	(8,651)
% of Gross earned premiums	19.2		%	72.3		%	(53.1) pts
% of Net earned premiums	27.5		%	89.7		%	(62.2) pts

(1) Underlying loss and LAE is a non-GAAP measure and is reconciled above to Net loss and LAE, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this document is in the "Definitions of Non-GAAP Measures" section of this Form 10-Q.

The calculations of our personal lines operating segment expense ratios are shown below.

	Three Months Ended March 31,
	2023			2022			Change
Policy acquisition costs	$	1,806		$	3,630		$	(1,824)
Operating and underwriting	1,948			2,507			(559)
General and administrative	5,907			5,363			544
Total Operating Expenses	$	9,661		$	11,500		$	(1,839)
% of Gross earned premiums	77.6		%	75.3		%	2.3 pts
% of Net earned premiums	111.5		%	93.5		%	18.0 pts

Loss and LAE attributable to our personal lines operating segment decreased by $9,690,000, or 79.4%, to $2,511,000 for the first quarter of 2023 from $12,201,000 for the first quarter of 2022. Loss and LAE expense as a percentage of net earned premiums decreased 70.2 points to 29.0% for the first quarter of 2023, compared to 99.2% for the first quarter of 2022. Excluding catastrophe losses and reserve development, our gross underlying loss and LAE ratio for the first quarter of 2023 would have been 19.2%, a decrease of 53.1 points from 72.3% during the first quarter of 2022.

Policy acquisition costs attributable to our personal lines operating segment decreased by $1,824,000, or 50.2%, to $1,806,000 for the first quarter of 2023 from $3,630,000 for the first quarter of 2022, primarily due to a decrease in reinsurance commissions decreased $2,530,000, driven by the termination of the quota share agreement between our former subsidiary UPC and IIC.

Operating and underwriting expenses attributable to our personal lines operating segment decreased by $559,000, or 22.3%, to $1,948,000 for the first quarter of 2023 from $2,507,000 for the first quarter of 2022, due to decreased investments in technology of $251,000 in 2023 and decreased underwriting expenses of $105,000 as the result of the decrease in premiums written described above.

General and administrative expenses attributable to our personal lines operating segment increased by $544,000, or 10.1%, to $5,907,000 for the first quarter of 2023 from $5,363,000 for the first quarter of 2022, driven by a $889,000 increase in salary related expenses as a result of lower headcount quarter-over-quarter. This was partially offset by lower costs associated with professional services provided by external vendors such as tax and legal services.

54

UNITED INSURANCE HOLDINGS CORP.

Commercial Lines Operating Segment Results

Pretax earnings attributable to our commercial lines operating segment for the three months ended March 31, 2023 increased $27,337,000, or 236.0%, to pre-tax income of $38,919,000 for the first quarter of 2023 from pre-tax income of $11,582,000 for the same period in 2022. The change in earnings was primarily driven by increased gross written premiums quarter-over-quarter, and decreased operating and underwriting expenses. This was partially offset by increased policy acquisition costs quarter-over-quarter. The details of these changes are described below.

Revenue

Our gross written premiums attributable to our commercial lines operating segment increased $48,677,000, or 38.0%, to $176,641,000 for the first quarter ended March 31, 2023 from $127,964,000 for the same period in 2022. This increase was driven primarily by an increase in written premiums in the state of Florida, as we focus on increasing commercial written premiums and transitioning towards a specialty commercial lines underwriter. The breakdown of the commercial lines operating segment quarter-over-quarter changes in both direct written and assumed premiums by state are shown in the table below.

($ in thousands)	Three Months Ended March 31,
	2023		2022		Change
Direct Written and Assumed Premium by State (1)
Florida	$	176,611	$	125,764	$	50,847
Texas	(9)		1,986		(1,995)
South Carolina	—		93		(93)
Total direct written premium by state	176,602		127,843		48,759
Assumed premium (2)	39		121		(82)
Total gross written premium by state	$	176,641	$	127,964	$	48,677

(1) We are no longer writing in Texas or South Carolina as of May 31, 2022.

(2) Assumed premium written for 2022 and 2021 is primarily commercial property business assumed from unaffiliated insurers.

	Three Months Ended March 31,
New and Renewal Policies(1) by State (2)	2023	2022	Change
Florida	1,157	1,472	(315)
Texas	—	18	(18)
South Carolina	—	1	(1)
Total	1,157	1,491	(334)

(1) Only includes new and renewal commercial policies written during the year.

(2) We are no longer writing in Texas or South Carolina as of May 31, 2022.

55

UNITED INSURANCE HOLDINGS CORP.

Expenses

Expenses attributable to our commercial lines operating segment for the three months ended March 31, 2023 increased $7,696,000, or 22.5%, to $41,917,000 from $34,221,000 for the same period in 2022. The increase in expenses was primarily due to an increase in policy acquisition costs of $8,488,000 in the first quarter of 2023 compared to the first quarter of 2022. This was partially offset by a $1,012,000 decrease in policy acquisition costs. The details of these changes can be seen below.

The calculations of our commercial lines operating segment loss ratios and underlying loss ratios are shown below.

	Three Months Ended March 31,
	2023			2022			Change
Net loss and LAE	$	13,901		$	14,114		$	(213)
% of Gross earned premiums	10.5		%	13.1		%	(2.6) pts
% of Net earned premiums	17.7		%	31.1		%	(13.4) pts
Less:
Current year catastrophe losses	$	2,097		$	3,105		$	(1,008)
Prior year reserve (favorable) development	(2,770)			(1,803)			(967)
Underlying loss and LAE (1)	$	14,574		$	12,812		$	1,762
% of Gross earned premiums	11.0		%	11.9		%	(0.9) pts
% of Net earned premiums	18.5		%	28.2		%	(9.7) pts

(1) Underlying loss and LAE is a non-GAAP measure and is reconciled above to Net loss and LAE, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this document is in the "Definitions of Non-GAAP Measures" section of this Form 10-Q.

The calculations of our commercial lines operating segment expense ratios are shown below.

	Three Months Ended March 31,
	2023			2022			Change
Policy acquisition costs	$	25,166		$	16,678		$	8,488
Operating and underwriting	96			1,109			(1,013)
General and administrative	2,754			2,320			434
Total Operating Expenses	$	28,016		$	20,107		$	7,909
% of Gross earned premiums	21.2		%	18.7		%	2.5 pts
% of Net earned premiums	35.6		%	44.2		%	(8.6) pts

Loss and LAE attributable to our commercial lines operating segment decreased by $213,000, or 1.5%, to $13,901,000 for the first quarter of 2023 from $14,114,000 for the first quarter of 2022. Loss and LAE expense as a percentage of net earned premiums decreased 13.4 points to 17.7% for the first quarter of 2022, compared to 31.1% for the first quarter of 2021. Excluding catastrophe losses and reserve development, our gross underlying loss and LAE ratio for the first quarter of 2022 would have been 11.0%, a decrease of 0.9 points from 11.9% during the first quarter of 2022.

Policy acquisition costs attributable to our commercial lines operating segment increased by $8,488,000, or 50.9%, to $25,166,000 for the first quarter of 2023 from $16,678,000 for the first quarter of 2022, driven by increases in external management fees of $7,537,000, as a result of increased gross written premiums quarter-over-quarter. In addition ceding commission income related to our quota share reinsurance agreements decreasing $3,506,000, driven by the non-renewal of agreements at the end of 2022. These increases were partially offset by decreased agent commission expenses of $2,363,000.

Operating and underwriting expenses attributable to our commercial lines operating segment decreased by $1,013,000, or 91.3%, to $96,000 for the first quarter of 2023 from $1,109,000 for the first quarter of 2022, driven by a $591,000 decrease in underwriting expenses quarter-over-quarter, decreased allocations of expenses for investments in technology of $196,000, and a decrease in expense related to our credit allowance reserve of $208,000.

General and administrative expenses attributable to our commercial lines operating segment increased by $434,000, or 18.7%, to $2,754,000 for the first quarter of 2023 from $2,320,000 for the first quarter of 2022, driven by a $433,000 increase in allocated external professional services costs for the first quarter of 2023 compared to the same period in 2022.

56

UNITED INSURANCE HOLDINGS CORP.

LIQUIDITY AND CAPITAL RESOURCES

We generate cash through premium collections, reinsurance recoveries, investment income, the sale or maturity of invested assets, the incurrence of debt and the issuance of additional shares of our stock. We use our cash to pay reinsurance premiums, claims and related costs, policy acquisition costs, salaries and employee benefits, other expenses and stockholder dividends, acquire subsidiaries and pay associated costs, as well as to repay debts, repurchase stock and purchase investments.

As a holding company, we do not conduct any business operations of our own and, as a result, we rely on cash dividends or intercompany loans from our management subsidiaries to pay our general and administrative expenses. Insurance regulatory authorities heavily regulate our insurance subsidiaries, including restricting any dividends paid by our insurance subsidiaries and requiring approval of any management fees our insurance subsidiaries pay to our management subsidiaries for services rendered; however, nothing restricts our non-insurance company subsidiaries from paying us dividends other than state corporate laws regarding solvency. Our management subsidiaries pay us dividends primarily using cash from the collection of management fees from our insurance subsidiaries, pursuant to the management agreements in effect between those entities. In accordance with state laws, our insurance subsidiaries may pay dividends or make distributions out of that part of their statutory surplus derived from their net operating profit and their net realized capital gains. The Risk-Based Capital (RBC) guidelines published by the National Association of Insurance Commissioners may further restrict our insurance subsidiaries’ ability to pay dividends or make distributions if the amount of the intended dividend or distribution would cause their respective surplus as it regards policyholders to fall below minimum RBC guidelines. See Note 15 in our Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

During the three months ended March 31, 2023, the Company made no capital contributions to its subsidiaries. During the three months ended March 31, 2022, the Company made capital contributions of $8,000,000 each to our former insurance subsidiaries, UPC and FSIC. We may make future contributions of capital to our insurance subsidiaries as circumstances require.

As described in Note 1 in the Notes to Unaudited Condensed Consolidated Financial Statements above, substantial doubt exists about the Company’s ability to continue as a going concern within the twelve-month period subsequent to the date that these unaudited condensed consolidated interim financial statements are issued. No adjustments have been made that might be necessary if the Company is unable to continue as a going concern. Accordingly, the unaudited condensed consolidated interim financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business.

Management’s strategic plans include the following:

•Working with the DFS to achieve a fair and equitable solution regarding reinsurance recoverables held by UPC that management believes are due to ACIC;

•Providing additional information to our rating agencies for the affirmation of the Company’s current financial ratings;

•Successfully renewing our catastrophe reinsurance programs for ACIC and IIC effective June 1, 2023; and

•Exploring raising additional capital for UIHC and ACIC, including in the form of surplus note contributions, to strengthen its statutory risk-based capital if necessary.

If the Company is unable to implement these actions, there is no assurance that the Company will be able to obtain the necessary amounts of additional capital to continue as a going concern. As of the date of this report we do not have any commitments from any source to provide such additional capital. Even if we are able to secure debt or equity financing, it may be unavailable in the amounts or time when we require. Furthermore, such financing would likely take the form of bank loans, surplus notes, private placement or public offering of debt or equity securities or some combination of these. The issuance of additional equity securities would dilute the stock ownership of current investors while incurring loans, surplus notes or other debt would increase our capital requirements and a possible loss of valuable assets if such obligations were not repaid in accordance with their terms.

57

UNITED INSURANCE HOLDINGS CORP.

Cash Flows for the three months ended March 31, 2023 and 2022 (in millions)

Operating Activities

The principal cash inflows from our operating activities come from premium collections, reinsurance recoveries and investment income. The principal cash outflows from our operating activities are the result of claims and related costs, reinsurance premiums, policy acquisition costs and salaries and employee benefits. A primary liquidity concern with respect to these cash flows is the risk of large magnitude catastrophe events.

During the three months ended March 31, 2023, we experienced cash outflows of $104,164,000 compared to cash outflows of $20,893,000 during the three months ended March 31, 2022. Net income for the period increased $62,012,000, exclusive of the impact of the disposition of UPC, driving these inflows. This is offset by the deconsolidation of UPC in the first quarter of 2023. This resulted in changes in our unpaid loss and loss adjustment expenses, net of reinsurance recoverables on paid and unpaid losses, in 2022, as we no longer hold the UPC portion of this liability.

Investing Activities

The principal cash inflows from our investing activities come from repayments of principal, proceeds from maturities and sales of investments. We closely monitor and manage these risks through our comprehensive investment risk management process. The principal cash outflows relate to sales of investments. The primary liquidity concerns with respect to these cash flows are the risk of default by debtors and market disruption. During the three months ended March 31, 2023, net purchases of investments totaled $195,082,000 compared to net sales of investments of $70,134,000 during the three months ended March 31, 2022. This was partially offset by the disposition of $232,582,000 of cash held by UPC at the time of receivership.

Financing Activities

The principal cash outflows from our financing activities come from repayments of debt and payments of dividends. The primary liquidity concern with respect to these cash flows is market disruption in the cost and availability of credit. We believe our current capital resources, together with cash provided from our operations, are sufficient to meet currently anticipated working capital requirements. During the three months ended March 31, 2023, no cash was used in financing activities compared to $2,970,000 for the three months ended March 31, 2022. The decrease in outflow in 2023 can be attributed to no dividend payment being made in the first quarter of 2023. In addition, no repayments of borrowings were made in 2023 as we no longer hold the debt associated with our former subsidiary, UPC.

58

UNITED INSURANCE HOLDINGS CORP.

OFF-BALANCE SHEET ARRANGEMENTS

At March 31, 2023, we did not have any off-balance sheet arrangements or material changes to our contractual obligations during the quarter.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risks, including interest rate risk related to changes in interest rates in our fixed-maturity securities, credit risk related to changes in the financial condition of the issuers of our fixed-maturities and equity price risk related to changes in equity security prices. These risks are disclosed in Part II, Item 7A. "Quantitative and Qualitative Disclosures about Market Risk" of our Annual Report on Form 10-K for the year ended December 31, 2022. We had no material changes in our market risk during the three months ended March 31, 2023.

Item 4. Controls and Procedures

We maintain a set of disclosure controls and procedures designed to ensure that the information required to be disclosed in reports we file or submit under the Securities Exchange Act of 1934, as amended (Exchange Act), is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. We designed our disclosure controls with the objective of ensuring we accumulate and communicate this information to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the design and operations of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this report. Based on our evaluation, our principal executive officer and principal financial officer concluded that, at the time the original report was filed with the SEC, our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this report.

Subsequent to that evaluation, our management, including our principal executive officer and principal financial officer, concluded that, as of March 31, 2023, our disclosure controls and procedures were not effective due to the material weakness in our internal control over financial reporting described below.

Existence of Material Weakness as of March 31, 2023

The Company identified a material weakness in its internal control over financial reporting related to the reporting of the discontinued operations. Specifically, the Company’s controls over the review of significant unusual transactions, including the effects of the transactions on the preparation of the Company's tax provision were not designed effectively. The Company did not have sufficient, experienced accounting resources to effectively review the accounting for and reporting of significant, unusual transactions. As a result of the material weakness, management’s review control did not detect an error in the accounting related to the recording of the discontinued operations and as a result, net income was understated by $6.4 million. The Company restated its consolidated financial statements as of and for the three months ended March 31, 2023 to reflect the correction of this error in this Amended Report.

Remediation Plan

Since identifying the material weakness related to management’s review controls related to significant, unusual and complex transactions in the preparation of the Company's financial statements, management has begun remediation of the process and controls in place to measure and record transactions and their related effects to income tax accounting to enhance the effectiveness of the design and operation of those controls. The Company will focus on the accounting and disclosure for unusual and complex transactions such as discontinued operations and will continue to augment existing staff with additional skilled accounting resources and strengthen the review process to improve the design and operation of financial reporting and corresponding internal controls.

These remediation measures require validation and testing of the design and operating effectiveness of internal control over a sustained period of financial reporting to reaching a determination that the material weakness has been remediated. As we continue to validate and test our internal control over financial reporting, we may determine that additional measures or modifications to the remediation plan are necessary or appropriate.

59

UNITED INSURANCE HOLDINGS CORP.

Changes in Internal Control over Financial Reporting

During the quarter ended March 31, 2023, there was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) identified in connection with the evaluation of our internal control performed during the fiscal year ended December 31, 2022, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting, except as noted above with respect to the identification of the material weakness.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are involved in routine claims-related legal actions arising in the ordinary course of business. We accrue amounts resulting from claims-related legal actions in unpaid losses and loss adjustment expenses during the period that we determine an unfavorable outcome becomes probable and we can estimate the amounts. Management makes revisions to our estimates based on its analysis of subsequent information that we receive regarding various factors, including: (i) per claim information; (ii) company and industry historical loss experience; (iii) judicial decisions and legal developments in the awarding of damages; and (iv) trends in general economic conditions, including the effects of inflation.

At March 31, 2023, the Company is involved in legal proceedings whereby on August 18, 2021, Jacqueline A. Miraglia v. United Insurance Holdings Corp., and United Property & Casualty Insurance Company was filed in the United States District Court for the District of Delaware alleging violations and damages arising under Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967, and seeks damages in an unspecified amount. On September 27, 2022, venue was transferred to the United States District Court for the Middle District of Florida, Tampa Division. In November, 2022, the plaintiff filed an Amended Complaint styled Jacqueline A. Miraglia vs. United Insurance Holdings Corp., United Property & Casualty Insurance Company, and Skyway Claims Services, LLC, alleging violations arising under Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967. The Company denies wrongdoing and believes that an unfavorable outcome is neither probable nor estimable.

Item 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed in Part I. Item 1A "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2022, except as set forth below.

We have identified a material weakness in our internal control over financial reporting, and our management has concluded that our internal control over financial reporting and disclosure controls and procedures were not effective as of the end of the period covered by this report. While we are working to remediate the identified material weakness, we cannot assure you that additional material weaknesses or significant deficiencies will not occur in the future. If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud. As a result, our stockholders could lose confidence in our financial reporting, which could harm our business and the trading price of our common stock.

The Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. As disclosed in this Amended Report, in the course of preparing our interim financial statements for the fiscal quarter ended June 30, 2023, we identified a material weakness in our internal control over financial reporting, which existed as of March 31, 2023. The material weakness was caused by inadequate controls over our tax processes, described in more detail under the heading Part I — Item 4. Controls and Procedures in this Amended Report. We have commenced efforts to remediate the material weakness as described in more detail under the heading Part I — Item 4. Controls and Procedures in this Amended Report. The material weakness in our internal control over financial reporting will not be considered remediated until the controls operate for a sufficient period of time and management has concluded, through testing, that these controls operate effectively. If we do not successfully remediate the material weakness, or if other material weaknesses or other deficiencies arise in the future, we may be unable to accurately report our financial results, which could cause our financial results to be materially misstated and require restatement. In such case, we may be unable to maintain compliance with securities law requirements regarding timely filing of periodic reports in addition to applicable stock exchange listing requirements, investors may lose confidence in our financial

60

UNITED INSURANCE HOLDINGS CORP.

reporting and our stock price may decline as a result. We cannot assure you that the measures we have taken to date, or any measures we may take in the future, will be sufficient to remediate the control deficiencies that led to a material weakness in our internal control over financial reporting or that they will prevent or avoid potential future material weaknesses.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended March 31, 2023, we did not sell any unregistered equity securities or repurchase any of our equity securities.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

The following exhibits are filed or furnished herewith or are incorporated herein by reference:

Exhibit	Description
10.1	Renewal Rights Agreement, dated as of February 1, 2023, by and among United Property and Casualty Insurance Company and Slide Insurance Company. (included as Exhibit 10.1 to the Form 8-K filed on February 6, 2023, and incorporated herein by reference.)
10.2	Asset Purchase and Services Agreement, dated as of February 1, 2023, by and among United Insurance Management, L.C. and Slide Insurance Company. (included as Exhibit 10.2 to the Form 8-K filed on February 6, 2023, and incorporated herein by reference.)
10.3	Consent Order Appointing the Florida Department of Financial Services as Receiver of United Property & Casualty Insurance Company for Purposes of Liquidation, Injunction and Notice of Automatic Stay, dated as of February 27, 2023. (included as Exhibit 10.1 to the Form 8-K filed on February 28, 2023, and incorporated herein by reference.)
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act.
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act.
32.1	Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act.
32.2	Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act.
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase
104	Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).

61

UNITED INSURANCE HOLDINGS CORP.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		UNITED INSURANCE HOLDINGS CORP.
August 21, 2023	By:	/s/ R. Daniel Peed
		R. Daniel Peed, Chief Executive Officer  (principal executive officer and duly authorized officer)

August 21, 2023	By:	/s/ B. Bradford Martz
		B. Bradford Martz, Chief Financial Officer and President (principal financial officer and principal accounting officer)

62

EX-31

EXHIBIT 31.1

CERTIFICATIONS PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT

I, R. Daniel Peed, certify that:

1. I have reviewed this Form 10-Q of American Coastal Insurance Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ R. Daniel Peed

R. Daniel Peed
Chief Executive Officer
(principal executive officer)

August 21, 2023

EX-31

EXHIBIT 31.2

CERTIFICATIONS PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT

I, B. Bradford Martz, certify that:

1. I have reviewed this Form 10-Q of American Coastal Insurance Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ B. Bradford Martz

B. Bradford Martz
President and Chief Financial Officer
(principal financial officer and principal accounting officer)

August 21, 2023

EX-32

EXHIBIT 32.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT

In connection with the Form 10-Q of American Coastal Insurance Corporation for the quarter ended March 31, 2023, as filed with the Securities and Exchange Commission (the Report), I, R. Daniel Peed, the Chief Executive Officer (principal executive officer) of American Coastal Insurance Corporation hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of American Coastal Insurance Corporation

By:	/s/ R. Daniel Peed
R. Daniel Peed Chief Executive Officer (principal executive officer)		August 21, 2023

EX-32

EXHIBIT 32.2

CERTIFICATION PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT

In connection with the Form 10-Q of American Coastal Insurance Corporation for the quarter ended March 31, 2023, as filed with the Securities and Exchange Commission (the Report), I, B. Bradford Martz, the Chief Financial Officer (principal financial officer and principal accounting officer) of American Coastal Insurance Corporation hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of American Coastal Insurance Corporation

By:	/s/ B. Bradford Martz
B. Bradford Martz President and Chief Financial Officer (principal financial officer and  principal accounting officer)		August 21, 2023

XML

Document & Entity Information - shares	3 Months Ended
	Mar. 31, 2023	May 15, 2023
Document and Entity Information [Abstract]
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	800 2nd Avenue S.
Document Type	10-Q/A
Document Quarterly Report	true
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Trading Symbol	ACIC
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Security Exchange Name	NASDAQ
Registrant Name	American Coastal Insurance Corporation
City Area Code	727-
Local Phone Number	895-7737
Central Index Key	0001401521
Filer Category	Non-accelerated Filer
Common Stock, Shares, Outstanding		43,287,573
Document Transition Report	false
Entity File Number	001-35761
Entity Emerging Growth Company	false
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Small Business	true
Entity Current Reporting Status	Yes
Entity Address, City or Town	St. Petersburg,
Entity Address, State or Province	FL
Entity Tax Identification Number	75-3241967
Entity Address, Postal Zip Code	33701
Document Period End Date	Mar. 31, 2023

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Investments, at fair value:
Fixed maturities (amortized cost of $559,163 and $672,139	$ 210,733	$ 204,682
Equity Securities, FV-NI	16,181	15,657
Other investments (amortized cost of $16,780 and $17,131	3,550	3,675
Total investments	230,464	224,014
Cash and Cash Equivalents	92,586	70,903
Restricted Cash	49,671	45,988
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	142,257	116,891
Accrued Investment Income	1,818	1,605
Property and equipment, net	4,723	5,293
Premiums receivable, net (credit allowance of $28 and $32)	48,120	39,301
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments (credit allowance of $552 and $563)	792,350	796,546
Ceded uneared premiums	65,702	90,496
Goodwill	59,476	59,476
Deferred policy acquisition costs	59,897	52,369
Intangible Assets, Net (Excluding Goodwill)	11,758	12,770
Other assets, net	17,476	3,920
Total Assets	1,447,436	2,837,496
Liabilities
Unpaid losses and loss adjustment expenses	748,365	842,958
Unearned Premiums	301,625	258,978
Reinsurance Payable	33,908	30,503
Payments outstanding	2,326	2,000
Accounts Payable	89,582	74,386
Operating Lease, Liability	1,412	1,689
Other Liabilities	30,073	5,849
Notes Payable	148,438	148,355
Total Liabilities	1,357,546	3,019,535
Commitments and Contingencies
Stockholders' Equity
Preferred Stock, $0.0001 par value; 1,000,000 shares authorized, none issued or outstanding	0	0
Common Stock, $0.0001 par value; 50,000,000 shares authorized; 43,525,249 and 43,360,429 issued; 43,313,166 and 43,370,442 outstanding, respectively	4	4
Additional Paid in Capital	395,966	395,631
Treasury shares, at cost; 212,083 shares	(431)	(431)
Accumulated Other Comprehensive Income (Loss), Net of Tax	(25,629)	(30,947)
Retained Earnings	(280,020)	(546,296)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	89,890	(182,039)
Total Liabilities and Stockholders' Equity	1,447,436	2,837,496
Disposal Group, Including Discontinued Operation, Assets	13,395	1,434,815
Disposal Group, Including Discontinued Operation, Liabilities	$ 1,817	$ 1,654,817

XML

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, authorized shares	1,000,000	1,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	43,486,442	43,492,256
Common Stock, Shares, Outstanding	43,274,359	43,280,173
Treasury stock	212,000	212,083
Financing Receivable, Allowance for Credit Loss	$ 0	$ 0
Premium Receivable, Allowance for Credit Loss	27	32
Reinsurance Recoverable, Allowance for Credit Loss	150	333
Fixed Maturities
Schedule of Available-for-sale Securities
Fixed maturities, cost	239,473	237,735
Other Long-term Investments
Schedule of Available-for-sale Securities
Fixed maturities, cost	$ 2,917	$ 3,072

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
REVENUE:
Change in gross unearned premiums	$ 145,540	$ 39,731
Investment Income, Net	2,589	1,404
Other revenue	16	15
Total revenue	(90,320)	(58,432)
EXPENSES:
Losses and loss adjustment expenses	16,412	26,315
Policy acquisition costs	26,972	20,308
Operating Costs and Expenses	2,168	3,707
General and administrative expenses	8,793	8,064
Total expenses	54,345	60,753
Income (loss) before other income	33,256	(2,321)
Provision for income taxes	3,477	(715)
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest	(267,280)	33,257
Net Income (Loss) Attributable to Noncontrolling Interest	0	(85)
Net income (loss)	267,280	(33,172)
OTHER COMPREHENSIVE INCOME:
Change in net unrealized gains (losses) on investments	4,231	(27,689)
Reclassification adjustment for net realized investment (gains) losses	83	1,769
Income tax benefit (expense) related to items of other comprehensive income	0	6,236
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	271,594	(52,941)
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest	0	(643)
Total comprehensive income	$ 271,594	$ (52,298)
Weighted-average shares outstanding
Weighted-average shares outstanding	43,124,825	42,980,691
Weighted-average diluted shares	43,574,840	42,980,691
Earnings Per Share
Basic earnings per share	$ 6.19	$ (0.77)
Diluted earnings per share	$ 6.14	$ (0.77)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	$ 33,844	$ (988)
Unearned premiums	(145,540)	(39,731)
Revenues	90,320	58,432
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 267,280	$ (33,257)
Basic earnings per share	$ 6.19	$ (0.77)
Diluted earnings per share	$ 6.14	$ (0.77)
Insurance Agency Management Fee	$ 0	$ 0
Investment Income, Net	2,589	1,404
Other revenue	16	15
Losses and loss adjustment expenses	16,412	26,315
Policy acquisition costs	26,972	20,308
Operating Costs and Expenses	2,168	3,707
General and administrative expenses	8,793	8,064
Costs and Expenses	54,345	60,753
Operating Income (Loss)	33,256	(2,321)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	33,844	(988)
Provision for income taxes	3,477	(715)
Continuing Operations
REVENUE:
Gross premiums written	187,123	142,414
Change in gross unearned premiums	(42,647)	(19,681)
Gross premiums earned	144,476	122,733
Ceded premiums earned	(57,152)	(64,987)
Net premiums earned	87,324	57,746
Investment Income, Net	2,589	1,404
Gain (Loss) on Investments	(83)	37
Increase (Decrease) in Equity Securities, FV-NI	474	(770)
Other revenue	16	15
Total revenue	(90,320)	(58,432)
EXPENSES:
Losses and loss adjustment expenses	16,412	26,315
Policy acquisition costs	26,972	20,308
Operating Costs and Expenses	2,168	3,707
General and administrative expenses	8,793	8,064
Interest expense	(2,719)	(2,359)
Total expenses	57,064	60,753
Income (loss) before other income	33,256	(2,321)
Other income	588	1,333
Provision for income taxes	3,477	(715)
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest	(30,367)	273
Net Income (Loss) Attributable to Noncontrolling Interest	0	(85)
Net income (loss)	$ 30,367	$ (188)
Earnings Per Share
Basic earnings per share	$ 0.70	$ 0
Diluted earnings per share	$ 0.70	$ 0
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	$ 33,844	$ (988)
Unearned premiums	42,647	19,681
Revenues	90,320	58,432
Interest expense	2,719	2,359
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 30,367	$ (273)
Basic earnings per share	$ 0.70	$ 0
Diluted earnings per share	$ 0.70	$ 0
Gross premiums written	$ 187,123	$ 142,414
Gross premiums earned	144,476	122,733
Ceded Premiums Earned	57,152	64,987
Premiums Earned, Net, Property and Casualty	87,324	57,746
Investment Income, Net	2,589	1,404
Gain (Loss) on Investments	(83)	37
Increase (Decrease) in Equity Securities, FV-NI	474	(770)
Other revenue	16	15
Losses and loss adjustment expenses	16,412	26,315
Policy acquisition costs	26,972	20,308
Operating Costs and Expenses	2,168	3,707
General and administrative expenses	8,793	8,064
Costs and Expenses	57,064	60,753
Operating Income (Loss)	33,256	(2,321)
Other income	588	1,333
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	33,844	(988)
Provision for income taxes	3,477	(715)
Discontinued Operations
REVENUE:
Gross premiums written	(120,608)	146,828
Change in gross unearned premiums	198,154	59,726
Gross premiums earned	77,546	206,554
Ceded premiums earned	(48,203)	(163,443)
Net premiums earned	29,343	43,111
Investment Income, Net	2,182	1,075
Gain (Loss) on Investments	1,343	(1,806)
Increase (Decrease) in Equity Securities, FV-NI	2,080	(1,498)
Other revenue	2,717	3,063
Total revenue	(37,665)	(43,945)
EXPENSES:
Losses and loss adjustment expenses	35,226	65,064
Policy acquisition costs	(1,352)	5,708
Operating Costs and Expenses	3,996	8,541
General and administrative expenses	1,284	7,941
Interest expense	(22)	(20)
Total expenses	39,176	87,274
Income (loss) before other income	(1,511)	(43,329)
Other income	0	9
Provision for income taxes	16	(10,336)
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest	$ (236,913)	$ 32,984
Earnings Per Share
Basic earnings per share	$ 5.49	$ (0.77)
Diluted earnings per share	$ 5.44	$ (0.77)
Unearned premiums	$ (198,154)	$ (59,726)
Revenues	37,665	43,945
Interest expense	22	20
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 236,913	$ (32,984)
Basic earnings per share	$ 5.49	$ (0.77)
Diluted earnings per share	$ 5.44	$ (0.77)
Gross premiums written	$ (120,608)	$ 146,828
Gross premiums earned	77,546	206,554
Ceded Premiums Earned	48,203	163,443
Premiums Earned, Net, Property and Casualty	29,343	43,111
Investment Income, Net	2,182	1,075
Gain (Loss) on Investments	1,343	(1,806)
Increase (Decrease) in Equity Securities, FV-NI	2,080	(1,498)
Other revenue	2,717	3,063
Losses and loss adjustment expenses	35,226	65,064
Policy acquisition costs	(1,352)	5,708
Operating Costs and Expenses	3,996	8,541
General and administrative expenses	1,284	7,941
Costs and Expenses	39,176	87,274
Operating Income (Loss)	(1,511)	(43,329)
Other income	0	9
Provision for income taxes	$ 16	$ (10,336)

XML

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Comprehensive Income	Retained Earnings	Parent	Noncontrolling Interest	Treasury Stock, Common
Common Stock, Shares, Outstanding		43,370,442
Stockholders' Equity Attributable to Parent		$ 4	$ 394,268	$ (6,531)	$ (74,904)	$ 312,406		$ (431)
Stockholders' Equity Attributable to Noncontrolling Interest							$ 19,551
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 331,957
Net Income (Loss), Parent	(33,172)				(33,172)	(33,172)
Net Income (Loss) Attributable to Noncontrolling Interest	(85)						(85)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(33,257)
Other Comprehensive Income (Loss), Parent				(19,126)		(19,126)
Other Comprehensive Income (Loss), NCI							(558)
Other Comprehensive Income (Loss), Total	(19,684)
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture		(112,847)
Stock Issued During Period, Value, Restricted Stock Award, Gross	452		452			452
Dividends, Common Stock, Cash	(2,589)				(2,589)	(2,589)
Common Stock, Shares, Outstanding		43,257,595
Stockholders' Equity Attributable to Parent		$ 4	394,720	(25,657)	(110,665)	257,971		(431)
Stockholders' Equity Attributable to Noncontrolling Interest							$ 18,908
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 276,879
Common Stock, Shares, Outstanding	43,280,173	43,280,173
Stockholders' Equity Attributable to Parent		$ 4	395,631	(30,947)	(546,296)	(182,039)		(431)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ (182,039)
Net Income (Loss), Parent	267,280				267,280	267,280
Net Income (Loss) Attributable to Noncontrolling Interest	0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	267,280
Other Comprehensive Income (Loss), Parent				4,314		4,314
Other Comprehensive Income (Loss), Total	4,314
Impact of Deconsolidation of Discontinued Operations	(1,004)
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture		(5,814)
Stock Issued During Period, Value, Restricted Stock Award, Gross	335		335			335
Dividends, Common Stock, Cash	0
Impact of Deconsolidation on OCI - Discontinued Operations.	$ 1,004
Common Stock, Shares, Outstanding	43,274,359	43,274,359
Stockholders' Equity Attributable to Parent		$ 4	$ 395,966	$ (25,629)	$ (280,020)	$ 89,890		$ (431)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 89,890

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
OPERATING ACTIVITIES
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 267,280	$ (33,257)
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	2,155	2,606
Bond amortization and accretion	160	1,634
Net realized gains (losses)	(1,260)	1,769
Unrealized Gain (Loss) on Investments	(2,554)	2,268
Provision for uncollectable premiums/over and short	5	12
Reinsurance Recoverable Change in Credit Loss Allowance	(183)	(168)
Deferred income taxes, net	15,767	(11,351)
Stock based compensation	335	452
Proceeds from contractual commitment	0	3,800
Gain on sale of building	(422)	(1,528)
Gain (Loss) on Disposition of Assets	524	343
Changes in operating assets and liabilities:
Accrued investment income	369	437
Premiums receivable	15,178	2,265
Reinsurance recoverable on paid and unpaid losses	289,946	85,140
Ceded unearned premiums	72,064	146,667
Deferred policy acquisition costs, net	(875)	(7,193)
Other assets	(31,630)	(4,618)
Receivable from sale of building	0	3,236
Unpaid losses and loss adjustment expenses	(278,142)	(117,236)
Unearned premiums	(145,540)	(39,731)
Reinsurance payable	(13,376)	(51,714)
Payments outstanding	(68,493)	(10,246)
Accounts Payable	16,440	(2,924)
Change in Operating Lease Liability	(277)	(183)
Other liabilities	(3,561)	8,291
Net cash provided by operating activities	(104,164)	(20,893)
INVESTING ACTIVITIES
Proceeds from sales and maturities of fixed maturities	178,211	85,978
Proceeds from Sale of Equity Securities, FV-NI	24,163	88
Proceeds from Sale and Maturity of Other Investments	227	1,063
Payments to Acquire Fixed Maturities, Available-for-sale	(7,439)	(13,415)
Payments to Acquire Equity Securities, FV-NI	(80)	(3,121)
Payments to Acquire Other Investments	0	(459)
Proceeds from Sale of Property, Plant, and Equipment	464	730
Cost of property, equipment and capitalized software acquired	(154)	(1,406)
Net cash provided by (used in) investing activities	(37,190)	69,458
FINANCING ACTIVITIES
Repayments of borrowings	0	(381)
Payments of Dividends	0	(2,589)
Net Cash Provided by (Used in) Financing Activities	0	(2,970)
Cash, Cash Equivalents, Restricted Cash at beginning of period	116,891
Cash, Cash Equivalents, Restricted Cash at end of period	142,257
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect	(141,354)	45,595
Supplemental Cash Flows Information
Interest Paid	0	35
Income taxes paid	5,325	77
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax	(238,440)	0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	142,257
Proceeds from Divestiture of Businesses, Net of Cash Divested	(232,582)	0
Continuing Operations
OPERATING ACTIVITIES
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	30,367	(273)
Adjustments to reconcile net income to net cash provided by operating activities
Unrealized Gain (Loss) on Investments	(474)	770
Changes in operating assets and liabilities:
Unearned premiums	42,647	19,681
FINANCING ACTIVITIES
Cash, Cash Equivalents, Restricted Cash at beginning of period	283,611	245,278
Cash, Cash Equivalents, Restricted Cash at end of period	142,257	290,873
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	142,257	290,873
Discontinued Operations
OPERATING ACTIVITIES
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	236,913	(32,984)
Changes in operating assets and liabilities:
Unearned premiums	$ (198,154)	$ (59,726)

XML

Organization, Consolidation and Presentation

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure

ORGANIZATION, CONSOLIDATION AND PRESENTATION

(a)Business

United Insurance Holdings Corp. (referred to in this document as we, our, us, the Company or UIHC) is a property and casualty insurance holding company that sources, writes and services residential commercial and personal property and casualty insurance policies using a network of agents and two wholly-owned insurance subsidiaries. Our two insurance subsidiaries are Interboro Insurance Company (IIC), acquired via merger on April 29, 2016; and American Coastal Insurance Company (ACIC), acquired via merger on April 3, 2017.

Our other subsidiaries include United Insurance Management, L.C. (UIM), a managing general agent; Skyway Claims Services, LLC, which provides claims adjusting services to ACIC; AmCo Holding Company, LLC (AmCo) which is a holding company subsidiary that consolidates its respective insurance company; BlueLine Cayman Holdings (BlueLine), which reinsures portfolios of excess and surplus policies; UPC Re, which provides a portion of the reinsurance protection purchased by our insurance subsidiaries when needed; Skyway Reinsurance Services, LLC, which provides reinsurance brokerage services for our insurance companies; Skyway Legal Services, LLC, which provides claims litigation services to our insurance companies; and Skyway Technologies, LLC, a managing general agent that provides technological and distribution services to our insurance companies.

Our primary products are commercial and homeowners' residential property insurance. We currently offer commercial residential insurance in Florida. During 2022, we also wrote commercial residential insurance in South Carolina and Texas, however, effective May 1, 2022, we no longer write in these states. In addition, we write personal residential insurance in New York. During 2022, we wrote personal residential business in six other states; however on February 27, 2023, our former insurance subsidiary, United Property & Casualty Insurance Company (UPC) was placed into receivership with the Florida Department of Financial Services (DFS), which divested our ownership of UPC. The events leading to receivership and results of this subsidiary, now included within discontinued operations, are discussed in Note 4 below.

On August 25, 2022, we announced that our former subsidiary UPC had filed plans for withdrawal in the states of Florida, Louisiana, and Texas and intended to file a plan for withdrawal in the state of New York. All filed plans entail non-renewing personal lines policies in these states. Additionally, we announced that Demotech, Inc. (Demotech), an insurance rating agency, notified UPC of its intent to withdraw UPC's Financial Stability Rating. On December 5, 2022, the Florida Office of Insurance Regulation ("FLOIR") issued Consent Order No. 303643-22- CO that provided for the administrative supervision and approval of the plan of run-off for UPC (the "Consent Order"). The Consent Order provided formal approval of UPC's Plan of Run-Off (the "Plan") to facilitate a solvent wind down of its affairs in an orderly fashion. Additionally, in connection with the Plan, IIC agreed to not pay ordinary dividends without the prior approval of the New York Department of Financial Services until January 1, 2025. On February 10, 2023, we announced that a solvent run-off of UPC was unlikely and on February 27, 2023, UPC was placed into receivership with the Florida Department of Financial Services (the "DFS") which divested our ownership of UPC.

Effective June 1, 2022, we merged our majority-owned insurance subsidiary, Journey Insurance Company (JIC) into ACIC, with ACIC being the surviving entity. JIC was formed in strategic partnership with a subsidiary of Tokio Marine Kiln Group Limited (Kiln) on August 30, 2018 and operated independently from ACIC prior to the merging of the entities. The Kiln subsidiary held a noncontrolling interest in JIC, which was terminated prior to the merger.

Effective June 1, 2022, we entered into a quota share reinsurance agreement with TypTap Insurance Company (Typtap). Under the terms of this agreement, we ceded 100% of our former subsidiary UPC's in-force, new, and renewal policies in the states of Georgia, North Carolina and South Carolina. Effective June 1, 2022, we began the transition of South Carolina policies to Homeowners Choice Property and Casualty Insurance Company, Inc. (HCPCI) in connection with our renewal rights agreement. Effective October 1, 2022, we transitioned Georgia policies to HCPCI in connection with our renewal rights agreement. Effective December 1, 2022, we began the transition of North Carolina policies to HCPCI in connection with our renewal rights agreement. As a result, these policies will no longer be covered under this agreement upon their renewal. This agreement replaces the 85% quota share agreement with HCPCI effective December 31, 2021.

Effective May 31, 2022, we merged Family Security Insurance Company, Inc. (FSIC) into our former subsidiary UPC, with UPC being the surviving entity. FSIC was acquired via merger on February 3, 2015, and operated independently from

UPC prior to the merging of the entities. In conjunction with the merger, we dissolved Family Security Holdings (FSH), a holding company subsidiary that consolidated its respective insurance company, FSIC.

Effective June 1, 2021, we entered into a quota share reinsurance agreement with HCPCI and TypTap. Under the terms of this agreement, we ceded 100% of our former subsidiary UPC's in-force, new, and renewal policies in the states of Connecticut, New Jersey, Massachusetts, and Rhode Island. The cession of these policies was 50% to HCPCI and 50% to TypTap. HCPCI is responsible for processing all claims as a part of this agreement. As of April 1, 2022, we completed the transition of all policies in these four states to HCPCI in connection with our renewal rights agreement (Northeast Renewal Agreement) to sell UPC's personal lines homeowners business in these states.

We conduct our operations under two reportable segments, personal residential property and casualty insurance policies (personal lines) and commercial residential property and casualty insurance policies (commercial lines). Our chief operating decision maker is our President, who makes decisions to allocate resources and assesses performance at both segment levels, as well as at the corporate level.

(b)Consolidation and Presentation

We prepare our unaudited condensed consolidated interim financial statements in conformity with U.S. generally accepted accounting principles (GAAP). We have condensed or omitted certain information and footnote disclosures normally included in the annual consolidated financial statements presented in accordance with GAAP. In management's opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of interim periods. We include all of our subsidiaries in our consolidated financial statements, eliminating intercompany balances and transactions during consolidation. As described in Note 2, our former subsidiary, UPC, qualifies as a discontinued operation. Our unaudited condensed consolidated interim financial statements and footnotes should be read in conjunction with our consolidated financial statements and footnotes in our Annual Report on Form 10-K for the year ended December 31, 2022.

While preparing our unaudited condensed consolidated financial statements, we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Reported amounts that require us to make extensive use of estimates include our reserves for unpaid losses and loss adjustment expenses, investments and goodwill. Except for the captions on our Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Comprehensive Loss, we generally use the term loss(es) to collectively refer to both loss and loss adjustment expenses.

Our results of operations and our cash flows as of the end of the interim periods reported herein do not necessarily indicate our results for the remainder of the year or for any other future period.

(c) Going Concern

Our unaudited condensed consolidated interim financial statements have been prepared in accordance with GAAP assuming the Company will continue as a going concern. As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022, our subsidiary ACIC is a part of a combined reinsurance program with our former subsidiary, UPC.

To properly allocate the reinsurance recoverables under the shared catastrophe treaties, UPC and ACIC entered into a reinsurance allocation agreement that became effective on June 1, 2022 (the "Allocation Agreement"). The Allocation Agreement was filed with and approved by the FLOIR on December 5, 2022. On February 10, 2023, we announced that a solvent run-off of UPC was unlikely, driven by Hurrican Ian losses which exhausted UPC's reinsurance coverage. On February 27, 2023, UPC was placed into receivership with the DFS which divested our ownership of UPC. As of the date of filing our Annual Report, the DFS had not recognized the Allocation Agreement, leaving uncertainty regarding the timing of both recoveries currently held by UPC that are allocated to ACIC and future recoverables. Management also believed that the ability for ACIC to obtain adequate reinsurance to meet its needs for the June 1, 2023 to May 31, 2024 catastrophe cover could only be accomplished assuming that recoveries due to ACIC pursuant to the Allocation Agreement could be resolved in short order.

However, on April 19, 2023, ACIC entered into a Memorandum of Understanding with the DFS. Under the terms of the Memorandum, ACIC and the DFS as receiver of UPC have reached the following agreement:

1.The DFS adopts, ratifies and affirms the Allocation Agreement.

2.All future reinsurance recoverable under reinsurance agreements applicable to the Allocation Agreement for Hurricane Ian losses shall be paid, either directly from the reinsurers or directly from the reinsurance intermediary responsible therefor, to ACIC. If a true up adjustment demonstrates that any future reinsurance recoveries were over-collected by ACIC, ACIC will remit any over-payment to UPC.

While the execution of the MOU does alleviate the uncertainty regarding future recoverables, uncertainty does still exist regarding recoveries currently held by UPC. The Company intends to continue to work towards a fair and equitable solution regarding these held recoveries (See Note 19). In addition, the Company has not finalized its catastrophe cover for June 1, 2023 to May 31, 2024. While continued progress is being made, uncertainty does still exist regarding placement of this cover. As a result, the Company has concluded substantial doubt continues to exist regarding its ability to continue as a going concern.

XML

Significant Accounting Policies Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Significant Accounting Policies

(a) Changes to Significant Accounting Policies

During the three months ended March 31, 2023, our former subsidiary, UPC, was placed into receivership with the DFS. As described in Note 1, effective February 27, 2023, this receivership divested our ownership of UPC. This disposal was evaluated for qualification as a discontinued operation. The results of operations of business are reported as discontinued operations when the disposal represents a strategic shift that will have a major effect on the entity's operations and financial results. When a business is identified for discontinued operations reporting:

•Results for prior periods are retroactively reclassified as discontinued operations;

•Results of operations are reported in a single line, net of tax, in the Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss); and

•Assets and liabilities are reported as held for disposal in the Unaudited Condensed Consolidated Balance Sheets

•Premiums directly assumed from UPC by another entity of the consolidated group are now captured as assumed.

Additional details by major classification of operating results and financial position are included in Note 4.

There have been no other changes to our significant accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2022.

(b) Pending Accounting Pronouncements

We have evaluated pending accounting pronouncements and do not believe any would have an impact on the operations or financial reporting of our company.

XML

Discontinued Operations and Disposal Groups

3 Months Ended

Mar. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Income Statement Disclosure

)    DISCONTINUED OPERATIONS

On August 25, 2022, we announced that our former subsidiary UPC had filed plans for withdrawal in the states of Florida, Louisiana, and Texas and intended to file a plan for withdrawal in the state of New York. All filed plans entailed non-renewing personal lines policies in these states. Additionally, we announced that Demotech, an insurance rating agency, notified UPC of its intent to withdraw UPC's Financial Stability Rating. On December 5, 2022, the FLOIR issued Consent Order No. 303643-22- CO that provided for the administrative supervision and approval of the plan of run-off for UPC (the "Consent Order"). The Consent Order provided formal approval of UPC's Plan of Run-Off (the "Plan") to facilitate a solvent wind down of its affairs in an orderly fashion. On February 10, 2023, we announced that a solvent run-off of UPC was unlikely, driven by Hurricane Ian losses which exhausted UPC's reinsurance coverage. On February 27, 2023, UPC was placed into receivership with the DFS which divested our ownership of UPC.

In the first quarter of 2023, the assets and liabilities of UPC were divested. In addition, activities provided by our entities, SCS, SLS and UIM, related directly to supporting the business conducted by UPC have been included. The assets and liabilities for the balance sheet as of December 31, 2022 are reclassified as held for disposal retrospectively, and the results of UPC and activities related directly to supporting the business conducted by UPC are presented as discontinued operations for all periods presented.

The results from discontinued operations for the three months ended March 31, 2023 and 2022 are presented below.

Results From Discontinued Operations
	Three Months Ended March 31,
	2023		2022
REVENUE:
Gross premiums written	$	(120,608)	$	146,828
Change in gross unearned premiums	198,154		59,726
Gross premiums earned	77,546		206,554
Ceded premiums earned	(48,203)		(163,443)
Net premiums earned	29,343		43,111
Net investment income	2,182		1,075
Net realized investment gains (losses)	1,343		(1,806)
Net unrealized gains (losses) on equity securities	2,080		(1,498)
Other revenue	2,717		3,063
Total revenue	37,665		43,945
EXPENSES:
Losses and loss adjustment expenses	35,226		65,064
Policy acquisition costs	(1,352)		5,708
Operating expenses	3,996		8,541
General and administrative expenses	1,284		7,941
Interest expense	22		20
Total expenses	39,176		87,274
Loss before other income	(1,511)		(43,329)
Other income (loss)	—		9
Loss before income taxes	(1,511)		(43,320)
Provision (benefit) for income taxes	16		(10,336)
Income (loss) from discontinued operations, net of tax	$	(1,527)	$	(32,984)

As of February 28, 2023, the Company completed the disposal of its former subsidiary, UPC. This divestiture resulted in a gain of $238,440,000 for the period. This gain was driven by the negative equity position of UPC.

The major classes of assets and liabilities transferred as a result of the transaction as of the date of transfer and December 31, 2022 are presented below.

Major Classes of Assets and Liabilities Disposed
	Closing (1)		December 31, 2022
ASSETS
Fixed maturities, available-for-sale	1,380		171,781
Equity securities	272		23,363
Other investments	12,882		12,952
Cash and cash equivalents	224,824		158,990
Restricted cash	7,758		7,730
Accrued investment income	875		1,457
Premiums receivable, net	22,733		46,736
Reinsurance recoverable on paid and unpaid losses, net	548,929		834,863
Ceded unearned premiums	75,262		122,533
Deferred policy acquisition costs, net	(89)		(2,046)
Other assets	51,625		33,548
Total assets	$	946,451	$	1,411,907
LIABILITIES
Unpaid losses and loss adjustment expenses	920,431		1,103,980
Unearned premiums	98,655		286,842
Reinsurance payable on premiums	12,612		29,394
Payments outstanding	144,238		213,058
Accounts payable and accrued expenses	1,361		(872)
Other liabilities	3,476		14,658
Notes payable, net	4,118		4,118
Total Liabilities	$	1,184,891	$	1,651,178

(1) The Company divested its ownership on February 27, 2023, the date the DFS was appointed as receiver of the entity.

In addition, the major classes of assets and liabilities remaining related to activities directly supporting the business conducted by UPC are outlined in the table below as of March 31, 2023 and December 31, 2022.

Major Classes of Assets and Liabilities Held for Disposal
	March 31, 2023		December 31, 2022
ASSETS
Property and equipment, net	13,395		14,299
Deferred policy acquisition costs	—		8,609
Total assets	$	13,395	$	22,908
LIABILITIES
Commissions Payable	1,817		987
Unearned Policy Fees	—		2,652
Total Liabilities	$	1,817	$	3,639

The discontinued operations of the Company incurred $252,000 and $438,000 of amortization expense during the three months ended March 31, 2023 and 2022, respectively. There were no other noncash transactions for either period.

XML

Segment Reporting

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Reporting Disclosure

)    SEGMENT REPORTING

Personal Lines Business

Our personal lines business provides structure, content and liability coverage for standard single-family homeowners, renters and condominium unit owners, through our subsidiary IIC. Personal residential products are offered in New York. We include coverage to policyholders for loss or damage to dwellings, detached structures or equipment caused by covered causes of loss such as fire, wind, hail, water, theft and vandalism.

We have developed a unique and proprietary homeowners’ product. This product uses a granular approach to pricing for catastrophe perils. We have focused on using independent agencies as a channel of distribution for our personal lines business. All of our personal lines business is managed internally.

Commercial Lines Business

Our commercial lines business primarily provides commercial multi-peril property insurance for residential condominium associations and apartments in Florida, through our subsidiary ACIC. We include coverage to policyholders for loss or damage to buildings, inventory or equipment caused by covered causes of loss such as fire, wind, hail, water, theft and vandalism. We also wrote commercial residential coverage through our subsidiary JIC, in South Carolina and Texas. Effective June 1, 2022 JIC was merged into ACIC, with ACIC being the surviving entity. As a result, the commercial residential policies originally written by JIC were not renewed effective May 31, 2022.

All of our commercial lines business is administered by an outside managing general underwriter, AmRisc, LLC (AmRisc). This includes handling the underwriting, claims processing and premium collection related to our commercial business. In return, AmRisc is reimbursed through monthly management fees. International Catastrophe Insurance Managers (ICAT) handled the underwriting and premium collection for JIC’s commercial business written in South Carolina and Texas and was also reimbursed through monthly management fees. Effective May 31, 2022, the Company terminated its agreement with ICAT.

Please note the following similarities pertaining to the accounting and transactions of our operating segments for the three months ended March 31, 2023 and 2022:

•Both operating segments follow the accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2022;

•Neither operating segment experienced significant noncash transactions outside of depreciation and amortization for the three months ended March 31, 2023 and 2022.

The tables below present the information for each of the reportable segment's profit or loss, as well as segment assets for the three months ended March 31, 2023 and 2022. We have restated our segments to reflect the divestiture of UPC during the first quarter of 2023, excluding the result of the entity for all periods presented.

	Three Months Ended March 31, 2023
	Commercial			Personal (1)			Adjustments		Consolidated
REVENUE:
Gross premiums written	$	176,641		$	10,482		$	—	$	187,123
Change in gross unearned premiums	(44,607)			1,960			—		(42,647)
Gross premiums earned	132,034			12,442			—		144,476
Ceded premiums earned	(53,374)			(3,778)			—		(57,152)
Net premiums earned	78,660			8,664			—		87,324
Net investment income	1,786			782			21		2,589
Net realized gains (losses)	(83)			—			—		(83)
Net unrealized losses on equity securities	473			—			1		474
Other revenue	—			16			—		16
Total revenues	80,836			9,462			22		90,320
EXPENSES:
Losses and loss adjustment expenses	13,901			2,511			—		16,412
Policy acquisition costs	25,166			1,806			—		26,972
Operating expenses	96			1,948			124		2,168
General and administrative expenses (2)	2,754			5,907			132		8,793
Interest expense	—			—			2,719		2,719
Total expenses	41,917			12,172			2,975		57,064
Income (loss) before other income	38,919			(2,710)			(2,953)		33,256
Other income (loss)	—			803			(215)		588
Income (loss) before income taxes	$	38,919		$	(1,907)		(3,168)		33,844
Provision for income taxes							3,477		3,477
Net income (loss)							$	(6,645)	$	30,367
Less: Net loss attributable to noncontrolling interests							—		—
Net income (loss) attributable to UIHC							$	(6,645)	$	30,367
Loss ratio, net (3) (4)	17.7		%	29.0		%			18.9		%
Expense ratio (3) (5)	35.6		%	111.5		%			43.4		%
Combined ratio (3) (6)	53.3		%	140.5		%			62.3		%
Total segment assets	$	1,304,499		$	118,700		$	10,842	$	1,434,041

(1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations.

(2) Included in our General and Administrative expenses is $1,007,000 and $812,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively.

(3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below.

(4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses.

(5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses.

(6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business.

	Three Months Ended March 31, 2022
	Commercial			Personal (1)			Adjustments		Consolidated
REVENUE:
Gross premiums written	$	127,964		$	14,450		$	—	$	142,414
Change in gross unearned premiums	(20,499)			818			—		(19,681)
Gross premiums earned	107,465			15,268			—		122,733
Ceded premiums earned	(62,022)			(2,965)			—		(64,987)
Net premiums earned	45,443			12,303			—		57,746
Net investment income	1,127			268			9		1,404
Net realized gains	2			35			—		37
Net unrealized losses on equity securities	(769)			—			(1)		(770)
Other revenue	—			15			—		15
Total revenues	45,803			12,621			8		58,432
EXPENSES:
Losses and loss adjustment expenses	14,114			12,201			—		26,315
Policy acquisition costs	16,678			3,630			—		20,308
Operating expenses	1,109			2,507			91		3,707
General and administrative expenses (2)	2,320			5,363			381		8,064
Interest expense	—			—			2,359		2,359
Total expenses	34,221			23,701			2,831		60,753
Income (loss) before other income	11,582			(11,080)			(2,823)		(2,321)
Other income	—			(277)			1,610		1,333
Income (loss) before income taxes	$	11,582		$	(11,357)		(1,213)		(988)
Provision for income taxes							(715)		(715)
Net income (loss)							$	(498)	$	(273)
Less: Net income attributable to noncontrolling interests							(85)		(85)
Net income (loss) attributable to UIHC							$	(413)	$	(188)
Loss ratio, net (3) (4) (7)	31.1		%	99.2		%			45.6		%
Expense ratio (3) (5) (7)	44.2		%	93.5		%			55.6		%
Combined ratio (3) (6) (7)	75.3		%	192.7		%			101.1		%
Total segment assets	$	949,359		$	156,443		$	17,507	$	1,123,309

(1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations.

(2) Included in our General and Administrative expenses is $1,074,000 and $885,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively.

(3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below.

(4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses.

(5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses.

(6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business.

XML

Investments

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

INVESTMENTS

The following table details fixed-maturity available-for-sale securities, by major investment category, at March 31, 2023 and December 31, 2022:

	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2023
U.S. government and agency securities	$	3,491	$	—	$	82	$	3,409
Foreign government	1,000		—		9		991
States, municipalities and political subdivisions	31,924		15		3,357		28,582
Public utilities	8,913		—		1,093		7,820
Corporate securities	99,324		58		13,659		85,723
Mortgage-backed securities	64,285		—		8,283		56,002
Asset-backed securities	30,536		36		2,366		28,206
Total fixed maturities	$	239,473	$	109	$	28,849	$	210,733
December 31, 2022
U.S. government and agency securities	$	2,490	$	—	$	105	$	2,385
Foreign government	1,000		—		9		991
States, municipalities and political subdivisions	30,958		2		4,065		26,895
Public utilities	8,936		—		1,242		7,694
Corporate securities	99,062		20		15,739		83,343
Mortgage-backed securities	65,251		—		9,136		56,115
Asset-backed securities	30,038		9		2,788		27,259
Total fixed maturities	$	237,735	$	31	$	33,084	$	204,682

Equity securities are summarized as follows:

	March 31, 2023				December 31, 2022
	Estimated Fair Value		Percent of Total		Estimated Fair Value		Percent of Total
Mutual funds	$	16,181	100.0	%	$	15,657	100.0	%

When we sell investments, we calculate the gain or loss realized on the sale by comparing the sales price (fair value) to the cost or adjusted/amortized cost of the security sold. We determine the cost or adjusted/amortized cost of the security sold using

the specific-identification method. The following table details our realized gains (losses) by major investment category for the three months ended March 31, 2023 and 2022, respectively:

	2023				2022
	Gains (Losses)		Fair Value at Sale		Gains (Losses)		Fair Value at Sale
Three Months Ended March 31,
Fixed maturities	$	4	$	5,292	$	41	$	12,192
Equity securities	—		—		—		—
Short-term investments	—		126		—		—
Total realized gains	4		5,418		41		12,192
Fixed maturities	(87)		(41)		(4)		251
Equity securities	—		—		—		—
Short-term investments	—		—		—		—
Total realized losses	(87)		(41)		(4)		251
Net realized investment gains (losses)	$	(83)	$	5,377	$	37	$	12,443

The table below summarizes our fixed maturities at March 31, 2023 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturities of those obligations.

	March 31, 2023
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	7,097	3.0	%	$	7,016	3.3	%
Due after one year through five years	50,754		21.2		46,402		22.0
Due after five years through ten years	82,508		34.5		69,386		32.9
Due after ten years	4,293		1.8		3,721		1.8
Asset and mortgage-backed securities	94,821		39.5		84,208		40.0
Total	$	239,473	100.0	%	$	210,733	100.0	%

The following table summarizes our net investment income by major investment category:

	Three Months Ended March 31,
	2023		2022
Fixed maturities	$	1,272	$	1,431
Equity securities	81		66
Cash and cash equivalents	1,304		22
Other investments	6		55
Other assets	—		—
Investment income	2,663		1,574
Investment expenses	(74)		(170)
Net investment income	$	2,589	$	1,404

Portfolio monitoring

We have a quarterly portfolio monitoring process to identify and evaluate each fixed-income security whose carrying value may be impaired as the result of a credit loss. For each fixed-income security in an unrealized loss position, if we determine that we intend to sell the security or that it is more likely than not that we will be required to sell the security before recovery of the cost or amortized cost basis for reasons such as liquidity needs, contractual or regulatory requirements, the security's entire decline in fair value is recorded in earnings.

If our management decides not to sell the fixed-income security and it is more likely than not that we will not be required to sell the fixed-income security before recovery of its amortized cost basis, we evaluate whether the decline in fair value has resulted from credit losses or other factors. This is typically indicated by a change in the rating of the security assigned by a rating agency, and any adverse conditions specifically related to the security or industry, among other factors. If the assessment indicates that a credit loss may exist, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded in earnings. Credit loss is limited to the difference between a security's amortized cost basis and its fair value. Any additional impairment not recorded through an allowance for credit losses is recognized in other comprehensive loss.

During the three months ended March 31, 2023, we determined that none of our fixed-income securities shown in the table below that are in an unrealized loss position have declines in fair value that are reflected as a result of credit losses. Therefore, no credit loss allowance was recorded at March 31, 2023. The issuers of our debt security investments continue to make interest payments on a timely basis. We do not intend to sell, nor is it likely that we would be required to sell the debt securities before we recover our amortized cost basis. Equity securities are reported at fair value with changes in fair value recognized in the valuation of equity investments.

The following table presents an aging of our unrealized investment losses by investment class:

	Less Than Twelve Months					Twelve Months or More
	Number of Securities(1)	Gross Unrealized Losses		Fair Value		Number of Securities(1)	Gross Unrealized Losses		Fair Value
March 31, 2023
U.S. government and agency securities	1	$	9	$	990	2	$	73	$	1,421
Foreign governments	1	9		991		—	—		—
States, municipalities and political subdivisions	8	49		3,732		45	3,308		23,324
Public utilities	—	—		—		12	1,093		7,819
Corporate securities	35	547		10,964		115	13,112		71,582
Mortgage-backed securities	12	248		3,749		116	8,035		52,254
Asset-backed securities	7	36		3,013		54	2,330		22,632
Total fixed maturities	64	$	898	$	23,439	344	$	27,951	$	179,032
December 31, 2022
U.S. government and agency securities	3	$	105	$	2,385	—	$	—	$	—
Foreign governments	1	9		991		—	—		—
States, municipalities and political subdivisions	21	540		7,306		31	3,525		18,853
Public utilities	8	193		2,286		4	1,049		5,408
Corporate securities	78	2,279		24,594		77	13,460		57,765
Mortgage-backed securities	48	1,282		15,259		80	7,854		40,856
Asset-backed securities	16	795		6,397		46	1,993		19,028
Total fixed maturities	175	$	5,203	$	59,218	238	$	27,881	$	141,910

(1) This amount represents the actual number of discrete securities, not the number of shares or units of those securities. The numbers are not presented in thousands.

Fair value measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on our Unaudited Condensed Consolidated Balance Sheets at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we can access.

Level 2: Assets and liabilities whose values are based on the following:

    (a) Quoted prices for similar assets or liabilities in active markets;

    (b) Quoted prices for identical or similar assets or liabilities in markets that are not active; or

(c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect our estimates of the assumptions that market participants would use in valuing the assets and liabilities.

We estimate the fair value of our investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE, Nasdaq and NYSE American. For securities for which quoted prices in active markets are unavailable, we use a third-party pricing service that utilizes quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs to estimate the fair value of those securities for which quoted prices are unavailable. Our estimates of fair value reflect the interest rate environment that existed as of the close of business on March 31, 2023 and December 31, 2022. Changes in interest rates subsequent to March 31, 2023 may affect the fair value of our investments.

The fair value of our fixed maturities is initially calculated by a third-party pricing service. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of proprietary models, produce valuation information in the form of a single fair value for individual fixed-income and other securities for which a fair value has been requested. The inputs used by the valuation service providers include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, liquidity spreads, currency rates and other information, as applicable. Credit and liquidity spreads are typically implied from completed transactions and transactions of comparable securities. Valuation service providers also use proprietary discounted cash flow models that are widely accepted in the financial services industry and similar to those used by other market participants to value the same financial information. The valuation models take into account, among other things, market observable information as of the measurement date, as described above, as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector and, where applicable, collateral quality and other issue or issuer specific information. Executing valuation models effectively requires seasoned professional judgment and experience.

Any change in the estimated fair value of our fixed-income securities would impact the amount of unrealized gain or loss we have recorded, which could change the amount we have recorded for our investments and other comprehensive loss on our Unaudited Condensed Consolidated Balance Sheet as of March 31, 2023.

The following table presents the fair value of our financial instruments measured on a recurring basis by level at March 31, 2023 and December 31, 2022:

	Total		Level 1		Level 2		Level 3
March 31, 2023
U.S. government and agency securities	$	3,409	$	—	$	3,409	$	—
Foreign government	991		—		991		—
States, municipalities and political subdivisions	28,582		—		28,582		—
Public utilities	7,820		—		7,820		—
Corporate securities	85,723		—		85,723		—
Mortgage-backed securities	56,002		—		56,002		—
Asset-backed securities	28,206		—		28,206		—
Total fixed maturities	210,733		—		210,733		—
Mutual funds	16,181		16,181		—		—
Total investments	$	226,914	$	16,181	$	210,733	$	—
December 31, 2022
U.S. government and agency securities	$	2,385	$	—	$	2,385	$	—
Foreign government	991		—		991		—
States, municipalities and political subdivisions	26,895		—		26,895		—
Public utilities	7,694		—		7,694		—
Corporate securities	83,343		—		83,343		—
Mortgage-backed securities	56,115		—		56,115		—
Asset-backed securities	27,259		—		27,259		—
Total fixed maturities	204,682		—		204,682		—
Mutual Funds	15,657		15,657		—		—
Total equity securities	15,657		15,657		—		—
Other investments (1)	125		—		125		—
Total investments	$	220,464	$	15,657	$	204,807	$	—

(1) Other investments included in the fair value hierarchy exclude these limited partnership interests that are measured at estimated fair value using the net asset value per share (or its equivalent) practical expedient.

Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; this is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). There were no financial instruments measured on a non-recurring basis at March 31, 2023 and December 31, 2022.

The carrying amounts for the following financial instrument categories approximate their fair values at March 31, 2023 and December 31, 2022, because of their short-term nature: cash and cash equivalents, accrued investment income, premiums receivable, reinsurance recoverable, reinsurance payable, other assets, and other liabilities. The carrying amount of our senior notes approximate fair value as the interest rates and terms are variable.

We are responsible for the determination of fair value and the supporting assumptions and methodologies. We have implemented a system of processes and controls designed to provide assurance that our assets and liabilities are appropriately valued. For fair values received from third parties, our processes are designed to provide assurance that the valuation methodologies and inputs are appropriate and consistently applied, the assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded.

At the end of each quarter, we determine whether we need to transfer the fair values of any securities between levels of the fair value hierarchy and, if so, we report the transfer as of the end of the quarter. During the quarter ended March 31, 2023, we transferred no investments between levels.

For our investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, we obtain the fair values from our investment custodians, which use a third-party valuation service. The valuation service calculates prices for our investments in the aforementioned security types on a month-

end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, and adds final spreads to the U.S. Treasury curve at 3 p.m. (ET) as of quarter end. Since the inputs the valuation service uses in its calculations are not quoted prices in active markets, but are observable inputs, they represent Level 2 inputs.

Other investments

We acquired investments in limited partnerships, recorded in the other investments line of our Unaudited Condensed Consolidated Balance Sheets, and these investments are currently being measured at estimated fair value utilizing a net asset value per share (or its equivalent) practical expedient.

The information presented in the table below is as of March 31, 2023:

	Book Value		Unrealized Gain		Unrealized Loss		Fair Value
March 31, 2023
Limited partnership investments (1)	$	2,917	$	633	$	—	$	3,550

(1) Distributions will be generated from investment gains, from operating income, from underlying investments of funds, and from liquidation of the underlying assets of the funds. We estimate that the underlying assets of the funds will be liquidated over the next few months to five years.

Restricted Cash

We are required to maintain assets on deposit with various regulatory authorities to support our insurance operations. The cash on deposit with state regulators is available to settle insurance liabilities. We also use trust funds in certain reinsurance transactions.

The following table presents the components of restricted assets:

	March 31, 2023		December 31, 2022
Trust funds	$	49,046	$	45,364
Cash on deposit (regulatory deposits)	625		624
Total restricted cash	$	49,671	$	45,988

In addition to the cash held on deposit described above, we also have securities on deposit with regulators, which are presented within our Fixed Maturities or Other Investments lines on the Unaudited Condensed Balance Sheets, dependent upon if they are short-term or long-term in nature. The table below shows the carrying value of those securities held on deposit with regulators.

	March 31, 2023		December 31, 2022
Invested assets on deposit (regulatory deposits)	$	2,491	$	2,616

XML

Earnings per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE (EPS)

Basic EPS is based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from the vesting of outstanding restricted stock awards, restricted stock units, performance stock units and stock options. The following table shows the computation of basic and diluted EPS for the three month periods ended March 31, 2023 and 2022, respectively:

	Three Months Ended March 31,
	2023		2022
Numerator:
Net income (loss) attributable to UIHC common stockholders	$	267,280	$	(33,172)
Denominator:
Weighted-average shares outstanding	43,124,825		42,980,691
Effect of dilutive securities	450,015		—
Weighted-average diluted shares	43,574,840		42,980,691
Earnings available to UIHC common stockholders per share
Basic	$	6.19	$	(0.77)
Diluted	$	6.14	$	(0.77)

See Note 18 of these Notes to Unaudited Condensed Consolidated Financial Statements for additional information on the stock grants related to dilutive securities.

XML

Property and Equipment, Net

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

PROPERTY AND EQUIPMENT, NET

Property and equipment, net consists of the following:

	March 31, 2023		December 31, 2022
Computer hardware and software (software in progress of $76 and $82, respectively)	$	8,134	$	8,164
Office furniture and equipment	798		1,414
Leasehold improvements	316		753
Leased vehicles(1)	11		1,080
Total, at cost	9,259		11,411
Less: accumulated depreciation and amortization	(4,536)		(6,118)
Property and equipment, net	$	4,723	$	5,293

(1) Includes vehicles under financing leases. See Note 13 of these Notes to Unaudited Condensed Consolidated Financial Statements for further information on leases.

Depreciation and amortization expense under property and equipment was $1,008,000 and $1,272,000 for the three months ended March 31, 2023 and 2022, respectively. During the three months ended March 31, 2023, we sold or disposed of leased vehicles totaling $1,069,000. The depreciation on these vehicles totaled $1,037,000 at the time of disposal. We realized a net gain on this disposal of $422,000. In addition, we disposed of office furniture totaling $616,000 during the period. Accumulated depreciation at the time of this disposal totaled $603,000, respectively. During the year ended December 31, 2022, we disposed of computer hardware and software totaling $13,202,000, primarily related to the retirement of one of our policy systems for states in which we no longer write policies. The depreciation on these systems totaled $12,691,000 at the time of disposal. We also sold or disposed of leased vehicles totaling $1,222,000. The depreciation on these vehicles totaled $1,114,000 prior to disposal. The net gain on sale of these vehicles totaled $738,000. Finally, we sold three buildings and their related assets totaling $13,369,000. The depreciation on these buildings and related assets totaled $5,129,000 prior to disposal. The net realized gain on these sales totaled $12,164,000.

XML

Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

) GOODWILL AND INTANGIBLE ASSETS

Goodwill

The carrying amount of goodwill at March 31, 2023 and December 31, 2022 was $59,476,000.

No impairment in the value of goodwill was recognized during the three month period ended March 31, 2023. As a result of the strategic decision to place our former subsidiary UPC into an orderly runoff, we recognized an impairment of our personal lines reporting unit's goodwill totaling $13,569,000 during the third quarter of 2022. The goodwill attributable to our commercial lines reporting unit was most recently tested for impairment during the fourth quarter of 2022. It was determined that there was no additional impairment in the value of the asset as of December 31, 2022.

Goodwill allocated to our commercial lines reporting unit was $59,476,000 at March 31, 2023 and December 31, 2022. There was no goodwill allocated to our personal lines reporting unit at March 31, 2023 and December 31, 2022.

There was no goodwill acquired or disposed of during the three month periods ended March 31, 2023 and 2022. Accumulated impairment related to goodwill was $13,569,000 at March 31, 2023 and December 31, 2022.

Intangible Assets

The following is a summary of intangible assets excluding goodwill recorded as intangible assets on our Unaudited Condensed Consolidated Balance Sheets:

	March 31, 2023		December 31, 2022
Intangible assets subject to amortization	$	10,560	$	11,372
Indefinite-lived intangible assets(1)	1,198		1,398
Total	$	11,758	$	12,770

(1) Indefinite-lived intangible assets are comprised of state insurance and agent licenses, as well as perpetual software licenses.

Intangible assets subject to amortization consisted of the following:

	Weighted-average remaining amortization period (in years)	Gross carrying amount		Accumulated amortization		Net carrying amount
March 31, 2023
Value of business acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	4.0	34,661		(24,910)		9,751
Trade names acquired	1.0	6,381		(5,572)		809
Total		$	83,830	$	(73,270)	$	10,560
December 31, 2022
Value of business acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	4.3	34,661		(24,300)		10,361
Trade names acquired	1.3	6,381		(5,370)		1,011
Total		$	83,830	$	(72,458)	$	11,372

No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the three months ended March 31, 2023 and 2022. However during the three months ended March 31, 2023 and year ended December 31, 2022, we disposed of intangible assets totaling $200,000 and $2,359,000, respectively.

Amortization expense of our intangible assets was $812,000 and $812,000 for the three months ended March 31, 2023 and 2022, respectively.

Estimated amortization expense of our intangible assets to be recognized by the Company during the remainder of 2023 and over the next five years is as follows:

Year ending December 31,	Estimated Amortization Expense
Remaining in 2023	$	2,435
2024	2,640
2025	2,438
2026	2,438
2027	609
2028	—

XML

Reinsurance

3 Months Ended

Mar. 31, 2023

Reinsurance Disclosures [Abstract]

Reinsurance

)    REINSURANCE

Our reinsurance program is designed, utilizing our risk management methodology, to address our exposure to catastrophes. Our program provides reinsurance protection for catastrophes, including hurricanes and tropical storms. These reinsurance agreements are part of our catastrophe management strategy, which is intended to provide our stockholders an acceptable return on the risks assumed in our property business, and to reduce variability of earnings, while providing protection to our policyholders. Although reinsurance agreements contractually obligate our reinsurers to reimburse us for the agreed-upon portion of our gross paid losses, they do not discharge our primary liability.

Our program includes excess of loss and quota share treaties. Our catastrophe reinsurance program, in effect from June 1, 2022 through May 31, 2023, provides coverage for catastrophe losses from named or numbered windstorms and earthquakes up to an exhaustion point of approximately $2,500,000,000 in the aggregate, including coverage related to our former insurance subsidiary, UPC. Under our core catastrophe excess of loss treaty, retention on a first and second event is $16,400,000 each. During the third quarter, one of the our reinsurers participating on the $25,000,000 excess of $20,000,000 layer of the core catastrophe program exercised a contractual right to terminate their participation due to Demotech's downgrade of UPC's Financial Stability Rating. We were unsuccessful in replacing this coverage in the open market so our captive reinsurer, UPC Re, stepped into the $25,000,000 excess of $20,000,000 layer which was subsequently impacted by Hurricane Ian resulting in an additional retained loss of $20,100,000. The exhaustion point of IIC's catastrophe reinsurance program is approximately $200,000,000 in the aggregate, with a retention of $3,000,000 per occurrence, covering all perils.

During the third quarter of 2022, the Company's core catastrophe reinsurance program was impacted by Hurricane Ian. As a result, the Company has approximately $508 million of occurrence limit remaining for Ian all of which is attributable to ACIC only. After reinstatement premiums of approximately $15.4 million, the Company, with its former subsidiary UPC has approximately $993 million of aggregate limit remaining after Ian, based on our estimated ultimate net loss subject to the core catastrophe reinsurance program.

Effective January 1, 2023, we renewed our all other perils catastrophe excess of loss agreement. The agreement provides protection from catastrophe loss events other than named windstorms and earthquakes up to $101,000,000.

During the third quarter of 2022, one of our private reinsurers who held a 100% share of the $15,000,000 in excess of $15,000,000 layer on our all other perils catastrophe excess of loss agreement notified us of their intent to terminate the agreement due to the contractual provision regarding the change in our former subsidiary UPC's statutory surplus being greater than 25%. We agreed to a termination and commutation date of September 30, 2022 for this contract. This change resulted in approximately $1,300,000 of ceded premium savings that would have otherwise been due in the fourth quarter of 2022 and the Company retaining all the risk for any non-hurricane catastrophe losses up to $30,000,000, excluding any quota share recoveries.

The table below outlines our quota share agreements in effect for the three months ended March 31, 2023 and 2022. The impacts of these quota share agreements on our former subsidiay, UPC's financial statements are included in discontinued operations.

Reinsurer	Companies in Scope (1)	Effective Dates	Cession Rate	States in Scope
External third-party	UPC, FSIC & ACIC	06/01/2022 - 06/01/2023	10% (2)	Florida, Louisiana, Texas
TypTap	UPC	06/01/2022 - 06/01/2023	100% (3)	Georgia, North Carolina, South Carolina
External third-party	UPC, FSIC & ACIC	12/31/2021 - 12/31/2022	8% (2)	Florida, Louisiana, Texas
HCPCI	UPC	12/31/2021 - 06/01/2022	85%	Georgia, North Carolina, South Carolina
External third-party	UPC & FSIC	12/31/2021 - 12/31/2022	25% (4)	Florida, Louisiana, Texas
HCPCI / TypTap (5)	UPC	06/01/2021 - 06/01/2022	100% (3)	Connecticut, New Jersey, Massachusetts, Rhode Island
External third-party	UPC, FSIC & ACIC (6)	06/01/2021 - 06/01/2022	15% (2)	Florida, Georgia, Louisiana, North Carolina, South Carolina, Texas
IIC	UPC	12/31/2020 - 12/31/2022	100%	New York

(1) Effective May 31, 2022, FSIC was merged into UPC, with UPC being the surviving entity.

(2) This treaty provides coverage for all catastrophe perils and attritional losses incurred. For all catastrophe perils, the quota share agreement provides ground- up protection effectively reducing our retention for catastrophe losses.

(3) This treaty provides coverage on our in-force, new and renewal policies until these states are transitioned to HCPCI or TypTap upon renewal.

(4) This treaty provides coverage on non-catastrophe losses on policies in-force on the effective date of the agreement.

(5) Cessions are split 50% to HCPCI and 50% to TypTap.

(6) This treaty was amended effective December 31, 2020 to include ACIC.

Reinsurance recoverable at the balance sheet dates consists of the following:

	March 31,		December 31,
	2023		2022
Reinsurance recoverable on unpaid losses and loss adjustment expenses	$	646,011	$	732,254
Reinsurance recoverable on paid losses and loss adjustment expenses	146,339		64,292
Reinsurance recoverable (1)	$	792,350	$	796,546

(1) Our reinsurance recoverable balance is net of our allowance for expected credit losses. More information related to this allowance can

be found in Note 14.

XML

Liability for Unpaid Losses and Loss Adjustment Expenses

3 Months Ended

Mar. 31, 2023

Insurance [Abstract]

Liability for unpaid losses and loss adjustment expenses

LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSE (LAE)

We determine the reserve for unpaid losses on an individual case basis for all incidents reported. The liability also includes amounts for incurred but not reported (IBNR) claims as of the balance sheet date.

The table below shows the analysis of our reserve for unpaid losses for the three months ended March 31, 2023 and 2022 on a GAAP basis:

	March 31,
	2023		2022
Balance at January 1	$	842,958	$	250,642
Less: reinsurance recoverable on unpaid losses	732,254		176,096
Net balance at January 1	$	110,704	$	74,546
Incurred related to:
Current year	19,577		29,379
Prior years	(3,165)		(3,064)
Total incurred	$	16,412	$	26,315
Paid related to:
Current year	10,654		11,219
Prior years	14,108		18,358
Total paid	$	24,762	$	29,577
Net balance at March 31	$	102,354	$	71,284
Plus: reinsurance recoverable on unpaid losses	646,011		168,289
Balance at March 31	$	748,365	$	239,573
Composition of reserve for unpaid losses and LAE:
Case reserves	$	284,679	$	119,969
IBNR reserves	463,686		119,604
Balance at March 31	$	748,365	$	239,573

Based upon our internal analysis and our review of the annual statement of actuarial opinion provided by our actuarial consultants at December 31, 2022, we believe that the reserve for unpaid losses reasonably represents the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date.

As reflected in the table above, we had favorable development in both 2023 and 2022 related to prior year losses. This favorable development came as a result of re-estimating ultimate losses in 2023 based on historical loss trends. The loss payments made by the Company during the three months ended March 31, 2023, were lower than the loss payments made during the three months ended March 31, 2022, due to the settling of claims related to non-tropical storm catastrophe events. Case and IBNR reserves and reinsurance recoverable on unpaid losses increased when compared to the prior period as a result of Hurricane Ian, which made landfall during the third quarter of 2022.

XML

Long-Term Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Long-term Debt

LONG-TERM DEBT

Long-Term Debt

The table below presents all long-term debt outstanding as of March 31, 2023 and December 31, 2022:

		Effective Interest Rate	Carrying Value at
	Maturity		March 31, 2023		December 31, 2022
Senior Notes	December 15, 2027	7.25%	$	150,000	$	150,000
Florida State Board of Administration Note (1)	July 1, 2026	N/A	—		—
Truist Term Note Payable (2)	May 26, 2031	N/A	—		—
Total long-term debt			$	150,000	$	150,000

(1) Our Florida State Board of Administration Note was held by our former subsidiary, UPC.

(2) Our Truist Term Note Payable was repaid in full on August 12, 2022.

Senior Notes Payable

On December 13, 2017, we issued $150,000,000 of 10-year senior notes (the Senior Notes) that will mature on December 15, 2027 and bear interest at a rate equal to 6.25% per annum payable semi-annually on each June 15 and December 15, commencing June 15, 2018. The Senior Notes are senior unsecured obligations of the Company. We may redeem the Senior Notes at our option, at any time and from time to time in whole or in part, prior to September 15, 2027, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon from the date of redemption to the date that is three months prior to maturity, plus accrued and unpaid interest thereon. On or after that date, we may redeem the Senior Notes at par, plus accrued and unpaid interest thereon. On December 8, 2022, the Kroll Bond Rating Agency, LLC announced a downgrade of our issuer and debt ratings from BBB- to BB+. As a result, pursuant to our agreement, the interest rate of our Senior Notes increased from 6.25% to 7.25% effective on the next interest payment date of June 15, 2023.

Florida State Board of Administration Note Payable

On September 22, 2006, we issued a $20,000,000, 20-year note payable to the Florida State Board of Administration (the SBA Note). For the first three years of the SBA Note we were required to pay interest only. On October 1, 2009, we began to repay the principal in addition to interest. The SBA Note bears an annual interest rate equivalent to the 10-year Constant Maturity Treasury rate (as defined in the SBA Note agreement), which resets quarterly. This note was held by our former insurance subsidiary, UPC. On February 27, 2023, UPC was placed into receivership with the Florida Department of Financial Services, divesting our ownership of UPC.

Truist Term Note Payable

On May 26, 2016, we issued a $5,200,000, 15-year term note payable to Truist (the Truist Note), with the intent to use the funds to purchase, renovate, furnish and equip our principal executive office. The Truist Note bears interest at 1.65% in excess of the one-month LIBOR, which resets monthly. LIBOR was phased out at the end of 2021, however, the Intercontinental Exchange will continue to publish one-month LIBOR settings through 2023. The outstanding Truist Note payable balance, including applicable interest, was repaid in full on August 12, 2022. Therefore, effective August 12, 2022, Truist no longer holds our principal executive office as collateral and may not take possession of or foreclose upon the office.

Financial Covenants

Senior Notes - Our Senior Notes provide that the Company and its subsidiaries shall not incur any indebtedness unless no default exists and the Company’s leverage ratio as of the last day of any annual or quarterly period (the balance sheet date) immediately preceding the date on which such additional indebtedness is incurred would have been no greater than 0.3:1, determined on a pro forma basis as if the additional indebtedness and all other indebtedness incurred since the immediately preceding balance sheet date had been incurred and the proceeds therefrom applied as of such day. The Company and its subsidiaries also may not create, assume, incur or permit to exist any indebtedness for borrowed money that is secured by a lien on the voting stock of any significant subsidiary without securing the Senior Notes equally. The Company may not issue, sell, assign, transfer or otherwise dispose of, directly or indirectly, any of the capital stock of the Company’s significant subsidiaries as of the issue date of the Senior Notes (except to the Company or to one or more of the Company’s other subsidiaries, or for the purpose of qualifying directors or as may be required by law or regulation), subject to certain exceptions. At December 31, 2022, while our leverage ratio was greater than the allowed ratio above, we did not incur any additional debt during the period and as a result, we were in compliance with the covenants in the Senior Notes.

SBA Note - Our SBA Note required that UPC maintained either a 2:1 ratio of net written premium to surplus, or net writing ratio, or a 6:1 ratio of gross written premium to surplus, or gross writing ratio, to avoid additional interest penalties. The SBA Note agreement defined surplus for the purpose of calculating the required ratios as the $20,000,000 of capital contributed to UPC under the agreement plus the outstanding balance of the note. Should UPC have failed to exceed either a net writing ratio of 1.5:1 or a gross writing ratio of 4.5:1, UPC's interest rate would have increased by 450 basis points above the 10-year Constant Maturity Treasury rate, which was 3.76% at the end of March 2023. Any other writing ratio deficiencies resulted in an interest rate penalty of 25 basis points above the stated rate of the note. Our SBA Note further provided that the Florida State Board of Administration may, among other things, declare its loan immediately due and payable upon any default existing

under the SBA Note; however, any payment is subject to approval by the insurance regulatory authority. At March 31, 2023, we were no longer the holders of the SBA Note.

Debt Issuance Costs

The table below presents the rollforward of our debt issuance costs paid, in conjunction with the debt instruments described above, during the three months ended March 31, 2023 and 2022:

	2023		2022
Balance at January 1,	$	1,645	$	1,998
Additions	—		—
Amortization	(83)		(84)
Balance at March 31,	$	1,562	$	1,914

XML

Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Litigation

We are involved in claims-related legal actions arising in the ordinary course of business. We accrue amounts resulting from claims-related legal actions in unpaid losses and LAE during the period that we determine an unfavorable outcome becomes probable and we can estimate the amounts. Management makes revisions to our estimates based on its analysis of subsequent information that we receive regarding various factors, including: (i) per claim information; (ii) company and industry historical loss experience; (iii) judicial decisions and legal developments in the awarding of damages; and (iv) trends in general economic conditions, including the effects of inflation.

At March 31, 2023, the Company is involved in legal proceedings whereby on August 18, 2021, a former employee of Skyway Legal Services, LLC, filed a complaint against the Company in the United States District Court for the District of Delaware. The lawsuit alleges violations of and damages arising under Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967, and seeks damages in an unspecified amount. The Company, a named party to the lawsuit, denies that it employed the plaintiff and disputes the claims set forth in the lawsuit. On September 27, 2022, venue was transferred to the United States District Court for the Middle District of Florida, Tampa Division. The Company believes that an unfavorable outcome is neither probable nor estimable.

Commitments to fund partnership investments

We have fully funded one limited partnership investments and have committed to fund our remaining limited partnership investment. The amount of unfunded commitments was $4,242,000 and $4,238,000 at March 31, 2023 and December 31, 2022, respectively.

Leases

We, as lessee, have entered into leases of commercial office space of various term lengths. In addition to office space, we lease office equipment and a parking lot under operating leases and vehicles under finance leases.

The classification of operating and finance lease asset and liability balances within the Unaudited Condensed Consolidated Balance Sheets was as follows:

	Financial Statement Line	March 31, 2023		December 31, 2022
Assets
Operating lease assets	Other assets	$	1,096	$	1,278
Financing lease assets	Property and equipment, net	2		51
Total lease assets		$	1,098	$	1,329
Liabilities
Operating lease liabilities	Operating lease liability	$	1,412	$	1,689
Financing lease liabilities	Other liabilities	—		2
Total lease liabilities		$	1,412	$	1,691

The components of lease expenses were as follows:

	Three Months Ended March 31,
	2023		2022
Operating lease expense	$	222	$	160
Financing lease expense:
Amortization of leased assets	7		129
Net lease expense	$	229	$	289

At March 31, 2023, future minimum gross lease payments relating to these non-cancellable operating and finance lease agreements were as follows:

	Operating Leases		Finance Leases		Total
Remaining in 2023	$	682	$	—	$	682
2024	593		—		593
2025	222		—		222
2026	11		—		11
2027	—		—		—
Thereafter	—		—		—
Total undiscounted future minimum lease payments	1,508		—		1,508
Less: Imputed interest	(96)		—		(96)
Present value of lease liabilities	$	1,412	$	—	$	1,412

Weighted average remaining lease term and discount rate related to operating and finance leases were as follows:

	March 31, 2023		December 31, 2022
Weighted average remaining lease term (months)
Operating leases	23		25
Financing leases	—		9
Weighted average discount rate
Operating leases	3.70	%	3.79	%
Financing leases	—	%	3.27	%

There were no other cash or non-cash related activities during the three months ended March 31, 2023 and 2022.

Capital lease amortization expenses are included in depreciation expense in our Unaudited Condensed Consolidated Statements of Comprehensive Loss. See Note 8 of these Notes to Unaudited Condensed Consolidated Financial Statements for more information regarding depreciation expense, Note 12 for information regarding commitments related to long-term debt, and Note 15 for information regarding commitments related to regulatory actions.

Subleases

We previously leased and occupied office space in which we no longer operate. Effective October 1, 2022, this office space is now subleased to a third-party. This sublease is effective from October 1, 2022 through July 31, 2025, with no option to extend. During the three months ended March 31, 2023, we recognized $33,000 of income related to this sublease, exclusive of the lease expense associated with the original lease. During the year ended December 31, 2022, we recognized $297,000 of income related to this sublease, exclusive of the lease expense associated with the original lease.

Additionally, as a result of the sublease, we evaluated our right-of-use asset associated with the original lease for impairment, using the undiscounted cash flows from the sublease. During the year ended December 31, 2022, we recognized impairment of $175,000, which was recognized in the results of our personal lines operating segment.

Employee Retention Credit

A series of legislation was enacted in the United States during 2020 and 2021 in response to the COVID-19 pandemic that provided financial relief for businesses impacted by government-mandated shutdowns, work stoppages, or other losses suffered by employers. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided an employee retention credit, which is a refundable tax credit against certain employment taxes of up to $5,000 per employee for eligible employers. The tax credit is equal to 50% of qualified wages paid to employees during a quarter, capped at $10,000 of qualified wages per employee. During the second quarter of 2022, we evaluated our eligibility and filed for a $10,161,000 refund in connection with our Employee Retention Tax Credit for the tax year ended December 31, 2021. As of March 31, 2022, we have received $5,718,000 from the Internal Revenue Service related to this refund. A gain contingency is an uncertain situation that will be resolved in the future, possibly resulting in a gain. We have not recorded the recognition of this gain contingency, except for what has already been received and what was received after the balance sheet date prior to finalizing our results for the quarter, prior to settlement of the underlying event.

While we believe the likelihood of the refund approval being reversed is low, a loss contingency to the extent of the refunds received and recognized is present. We will continue to monitor the matter for further developments that could affect the outcome of these contingencies and will make any appropriate adjustments each quarter.

XML

Credit Losses

3 Months Ended

Mar. 31, 2023

Credit Loss [Abstract]

Allowance for Credit Losses

ALLOWANCE FOR EXPECTED CREDIT LOSSES

We are exposed to credit losses primarily through four different pools of assets based on similar risk characteristics: premiums receivable for direct written business; reinsurance recoverables from ceded losses to our reinsurers; our investment holdings; and our notes receivable. We estimate the expected credit losses based on historical trends, credit ratings assigned to reinsurers by rating agencies, average default rates, current economic conditions, and reasonable and supportable forecasts of future economic conditions that affect the collectability of the reported amounts over its expected life. Changes in the relevant information may significantly affect the estimates of expected credit losses.

The allowance for credit losses is deducted from the amortized cost basis of the assets to present their net carrying value at the amount expected to be collected. Each period, the allowance for credit losses is adjusted through earnings to reflect expected credit losses over the remaining lives of the assets.

The following tables summarize our allowance for expected credit losses by pooled asset for the three months ended March 31, 2023 and 2022:

March 31, 2023	December 31, 2022		Provision for expected credit losses		Write-offs		March 31, 2023
Premiums Receivable	$	32	$	(34)	$	29	$	27
Reinsurance Recoverables	333		(183)		—		150
Total	$	365	$	(217)	$	29	$	177
March 31, 2022	December 31, 2021		Provision for expected credit losses		Write-offs		March 31, 2022
Premiums Receivable	$	16	$	(14)	$	10	$	12
Reinsurance Recoverables	58		22		—		80
Total	$	74	$	8	$	10	$	92

XML

Statutory Accounting and Regulation

3 Months Ended

Mar. 31, 2023

Insurance [Abstract]

Statutory Accounting and Regulation

STATUTORY ACCOUNTING AND REGULATION

The insurance industry is heavily regulated. State laws and regulations, as well as national regulatory agency requirements, govern the operations of all insurers such as our insurance subsidiaries. The various laws and regulations require that insurers maintain minimum amounts of statutory surplus and risk-based capital, restrict insurers' ability to pay dividends, specify allowable investment types and investment mixes, and subject insurers to assessments. Effective June 1, 2022, our insurance subsidiaries JIC and ACIC were merged, with ACIC being the surviving entity. Effective May 31, 2022, our former insurance subsidiaries UPC and FSIC were merged, with UPC being the surviving entity. Both UPC and ACIC are domiciled in Florida, while IIC is domiciled in New York. At March 31, 2023, and during the three months then ended, ACIC and IIC met all regulatory requirements of the states in which they operate. As of December 31, 2022, UPC was determined to be insolvent and effective February 27, 2023 was placed into receivership by the DFS.

During 2023, we received an assessment notice from the Florida Insurance Guaranty Association (FIGA). This assessment will be 0.7% on direct written premium of all covered lines of business in Florida to cover the cost of an insurance company facing insolvency. This assessment is in addition to the 1.3% assessment, described below, and is recoupable from policyholders. During 2022, we received an assessment notice from FIGA. This assessment will be 1.3% on direct written premium of all covered lines of business in Florida to cover the cost of an insurance company facing insolvency.

The National Association of Insurance Commissioners (NAIC) has Risk-Based Capital (RBC) guidelines for insurance companies that are designed to assess capital adequacy and to raise the level of protection that statutory surplus provides for policyholders. Most states, including Florida and New York, have enacted statutory requirements adopting the NAIC RBC guidelines, and insurers having less statutory surplus than required will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. State insurance regulatory authorities could require an insurer to cease operations in the event the insurer fails to maintain the required statutory capital.

The state laws of Florida and New York permit an insurer to pay dividends or make distributions out of that part of statutory surplus derived from net operating profit and net realized capital gains. The state laws further provide calculations to determine the amount of dividends or distributions that can be made without the prior approval of the insurance regulatory authorities in those states and the amount of dividends or distributions that would require prior approval of the insurance regulatory authorities in those states. Statutory RBC requirements may further restrict our insurance subsidiaries' ability to pay dividends or make distributions if the amount of the intended dividend or distribution would cause statutory surplus to fall below minimum RBC requirements. Additionally, in connection with our former subsidiary UPC's plan for run off, IIC has agreed to not pay ordinary dividends without prior approval of the New York Department of Financial Services until January 1, 2025.

Our insurance subsidiaries must each file with the various insurance regulatory authorities an “Annual Statement” which reports, among other items, statutory net income (loss) and surplus as regards policyholders, which is called stockholders' equity under GAAP. The table below details the statutory net income (loss) for each of our regulated entities for the three months ended March 31, 2023 and 2022.

	Three Months Ended March 31,
	2023		2022
ACIC(1)	18,230		6,110
IIC	(2,203)		(3,985)
Total	$	16,027	$	2,125

(1) ACIC results are inclusive of JIC as these entities were merged effective June 1, 2022.

Our insurance subsidiaries must maintain capital and surplus ratios or balances as determined by the regulatory authority of the states in which they are domiciled. At March 31, 2023, we met these requirements. The table below details the amount of surplus as regards policyholders for each of our regulated entities at March 31, 2023 and December 31, 2022.

	March 31, 2023		December 31, 2022
ACIC(1)	101,811		77,511
IIC	23,966		26,152
Total	$	125,777	$	103,663

(1) ACIC results are inclusive of JIC as these entities were merged effective June 1, 2022.

XML

Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income

ACCUMULATED OTHER COMPREHENSIVE LOSS

We report changes in other comprehensive income (loss) items within comprehensive income (loss) on the Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss), and we include accumulated other comprehensive income (loss) as a component of stockholders' equity on our Unaudited Condensed Consolidated Balance Sheets.

The table below details the components of accumulated other comprehensive loss at period end:

	Pre-Tax Amount		Tax (Expense) Benefit		Net-of-Tax Amount
December 31, 2022	$	(33,041)	$	2,094	$	(30,947)
Changes in net unrealized losses on investments	5,574		(315)		5,259
Reclassification adjustment for realized losses	(1,260)		315		(945)
Impact of deconsolidation of discontinued operations	$	(3)	$	1,007	$	1,004
March 31, 2023	$	(28,730)	$	3,101	$	(25,629)

XML

Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Stockholders' Equity Note [Abstract]

Stockholders' Equity

STOCKHOLDERS' EQUITY

Our Board of Directors declared dividends on our outstanding shares of common stock to stockholders of record as follows for the periods presented (in thousands, except per share amounts):

	Three Months Ended March 31,
	2023				2022
	Per Share Amount		Aggregate Amount		Per Share Amount		Aggregate Amount
First Quarter	$	—	$	—	$	0.06	$	2,589

In July 2019, our Board of Directors authorized a stock repurchase plan of up to $25,000,000 of our common stock. As of March 31, 2023, we had not yet repurchased any shares under this stock repurchase plan. The timing and volume of repurchases are at the discretion of management, based on the capital needs of the business, the market price of UIHC common stock, and general market conditions. The plan has no expiration date, and the plan may be suspended or discontinued at any time.

See Note 18 in these Notes to Unaudited Condensed Consolidated Financial Statements for information regarding stock-based compensation activity.

XML

Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

) STOCK-BASED COMPENSATION

We account for stock-based compensation under the fair value recognition provisions of ASC Topic 718 - Compensation - Stock Compensation. We recognize stock-based compensation cost over the award’s requisite service period on a straight-line basis for time-based restricted stock grants and performance-based restricted stock grants. We record forfeitures as they occur for all stock-based compensation.

The following table presents our total stock-based compensation expense:

	Three Months Ended March 31,
	2023		2022
Employee stock-based compensation expense
Pre-tax	$	309	$	390
Post-tax (1)	244		308
Director stock-based compensation expense
Pre-tax	26		62
Post-tax (1)	21		49

(1) The after tax amounts are determined using the 21% corporate federal tax rate.

We had approximately $1,709,000 of unrecognized stock compensation expense at March 31, 2023 related to non-vested stock-based compensation granted, which we expect to recognize over a weighted-average period of approximately 1.8 years. We had approximately $10,000 of unrecognized director stock-based compensation expense at March 31, 2023 related to non-vested director stock-based compensation granted, which we expect to recognize over a weighted-average period of approximately 0.1 years.

Restricted stock, restricted stock units and performance stock units

Stock-based compensation cost for restricted stock awards, restricted stock units and performance stock units is measured based on the closing fair market value of our common stock on the date of grant, which vest in equal installments over the requisite service period of typically three years. Restricted stock awards granted to non-employee directors vest over a one-year period. Each restricted stock unit and performance stock unit represents our obligation to deliver to the holder one share of common stock upon vesting.

Performance stock units vest based on the Company's return on average equity compared to a defined group of peer companies. On the grant date, we issue the target number of performance stock units. They are subject to forfeitures if performance goals are not met. The actual number of performance stock units earned can vary from zero to 150 percent of the target for the 2023, 2022, and 2021 awards.

We did not grant any shares of restricted common stock during the three month period ended March 31, 2023. We granted 114,866 shares of restricted common stock during the three month period ended March 31, 2022, which had a weighted-average grant date fair value of $3.59 per share.

The following table presents certain information related to the activity of our non-vested common stock grants:

	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2022	714,239	$	2.73
Granted	—	—
Less: Forfeited	856	3.59
Less: Vested	44,457	4.40
Outstanding as of March 31, 2023	668,926	$	2.62

Stock options

Stock option fair value was estimated on the grant date using the Black-Scholes-Merton formula. Stock options vest in equal installments over the requisite service period of typically three years. The following weighted-average assumptions were used to value the stock options granted:

	2023		2022
Expected annual dividend yield	—	%	—	%
Expected volatility	—	%	49.66	%
Risk-free interest rate	—	%	2.92	%
Expected term	N/A		6 years

The expected annual dividend yield for our options granted during 2022 is based on no dividends being paid in future quarters. The expected volatility is a historical volatility calculated based on the daily closing prices over a period equal to the expected term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the grant date. Expected term takes into account the three-year graded vesting term and the 10-year contractual term of the option.

We did not grant any stock options during the three month periods ended March 31, 2023 and 2022.

The following table presents certain information related to the activity of our non-vested stock option grants:

	Number of Stock Options	Weighted Average Exercise Prices		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2022	1,250,685	$	3.71	7.66	$	—
Granted	—	—		—	—
Less: Forfeited	—	—		—	—
Less: Expired	161,925	3.05		—	—
Less: Exercised	—	—		—	—
Outstanding as of March 31, 2023	1,088,760	$	3.81	8.55	$	451
Vested as of March 31, 2023(1)	532,797	$	7.26	7.79	$	112
Exercisable as of March 31, 2023	270,861	$	6.57	7.89	$	112

(1) The vested shares are calculated based on all vested shares at March 31, 2023, inclusive of those that have since expired. The weighted average exercise prices, weighted-average remaining contractual term and aggregate intrinsic value is calculated based on only vested shares that are outstanding and exercisable at March 31, 2023.

XML

Subsequent Events	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTSWe evaluate all subsequent events and transactions for potential recognition or disclosure in our financial statements.

XML

Accounting Changes and Error Corrections

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Error Correction

3)    RESTATEMENT OF PREVIOUSLY REPORTED FINANCIAL STATEMENTS

Subsequent to the issuance of the Form 10-Q as of and for the three months ended March 31, 2023, the Company concluded it should restate its previously issued financial statements for both 2023 and 2022 to accurately present discontinued operations, including activities that directly support its former subsidiary, UPC, in accordance with ASC 205-20. The Company had previously excluded these supporting activities, assets, and liabilities, presenting only the results, assets and liabilities of UPC as discontinued operations.

In addition, the Company concluded it should restate its previously issued financial statements to accurately present its tax provision (benefit) related to both continuing and discontinued operations. Previously, the calculation of this provision (benefit) incorrectly included the benefit of the use of certain deferred tax assets held by UPC after the disposition of UPC occurred and incorrectly allocated this provision between continuing and discontinued operations.

In accordance with SEC Staff Accounting Bulletin No. 99, the Company evaluated the errors and has determined that the related impact was material to the previously filed financial statements that contained the error, reported in the Company’s Form 10-Q for the quarterly period ended March 31, 2023. Therefore, the Company concluded that the affected quarterly periods should be restated to present continuing and discontinued operations appropriately and recognize the additional

provision for income taxes for the period and allocate appropriately to continuing and discontinued operations. As such, the Company is reporting these restated financial statements in this amended quarterly report. The previously filed Form 10-Q should no longer be relied upon.

The impact of the restatement on the financial statements for the affected quarterly periods are presented below.

Restated Condensed Consolidated Balance Sheets (Unaudited)

	As of March 31, 2023
	As Previously Reported		Adjustment	As Restated
ASSETS
Property and equipment, net	18,118		(13,395)	4,723
Other Assets	15,426		2,050	17,476
Assets held for disposal	—		13,395	13,395
Total Assets	$	1,445,386	2,050	$	1,447,436
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Other liabilities	36,242		(6,169)	30,073
Liabilities held for disposal	—		1,817	1,817
Total Liabilities	$	1,361,898	(4,352)	$	1,357,546
Stockholders' Equity:
Retained earnings (deficit)	$	(286,422)	6,402	$	(280,020)
Total Stockholders' Equity (Deficit)	$	83,488	6,402	$	89,890

	As of December 31, 2022
	As Previously Reported	Adjustment	As Restated
ASSETS
Property and equipment, net	19,591	(14,298)	5,293
Deferred policy acquisition costs, net	60,979	(8,610)	52,369
Assets held for disposal	1,411,907	22,908	1,434,815
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses	75,374	(988)	74,386
Other liabilities	17,466	(11,617)	5,849
Liabilities held for disposal	1,642,212	12,605	1,654,817

Restated Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

	Three Months Ended March 31, 2023
REVENUE:	As Previously Reported		Adjustment		As Restated
Management fee income	9,668		(9,668)		—
Other revenue	4,075		(4,059)		16
Total revenue	104,047		(13,727)		90,320
EXPENSES:
Losses and loss adjustment expenses	19,073		(2,661)		16,412
Policy acquisition costs	26,927		45		26,972
Operating expenses	5,651		(3,483)		2,168
General and administrative expenses	9,837		(1,044)		8,793
Total expenses	61,488		(7,143)		54,345
Income before other income	39,840		(6,584)		33,256
Income before income taxes	40,428		(6,584)		33,844
Provision for income taxes	9,855		(6,378)		3,477
Income from continuing operations, net of tax	$	30,573	$	(206)	$	30,367
Income from discontinued operations, net of tax	230,305		6,608		236,913
Net income	$	260,878	$	6,402	$	267,280
Earnings available to UIHC common stockholders per share
Basic
Continuing operations	$	0.71	$	(0.01)	$	0.70
Discontinued operations	5.34		0.15		5.49
Total	$	6.05	$	0.14	$	6.19
Diluted
Continuing operations	$	0.70	$	—	$	0.70
Discontinued operations	5.29		0.15		5.44
Total	$	5.99	$	0.15	$	6.14

	Three Months Ended March 31, 2022
REVENUE:	As Previously Reported		Adjustment		As Restated
Management fee income	50,206		(50,206)		—
Other revenue	8,738		(8,723)		15
Total revenue	117,361		(58,929)		58,432
EXPENSES:
Losses and loss adjustment expenses	32,518		(6,203)		26,315
Policy acquisition costs	52,152		(31,844)		20,308
Operating expenses	10,603		(6,896)		3,707
General and administrative expenses	15,435		(7,371)		8,064
Total expenses	113,067		(52,314)		60,753
Income (loss) before other income	4,294		(6,615)		(2,321)
Income (loss) before income taxes	5,627		(6,615)		(988)
Provision (benefit) for income taxes	980		(1,695)		(715)
Income (loss) from continuing operations, net of tax	$	4,647	$	(4,920)	$	(273)
Loss from discontinued operations, net of tax	(37,904)		4,920		(32,984)
Net loss	$	(33,257)	$	—	$	(33,257)

Restated Condensed Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended March 31, 2023
	As Previously Reported		Adjustment		As Restated
OPERATING ACTIVITIES
Net income (loss)	$	260,878	$	6,402	$	267,280
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Disposition of former subsidiary	(229,183)		(9,257)		(238,440)
Changes in operating assets and liabilities:
Other liabilities	(6,416)		2,855		(3,561)

Restated Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended

(Unaudited)

	Three Months Ended March 31, 2023
	As Previously Reported		Adjustment		As Restated
Net Income for the three months ended March 31, 2023	$	260,878	$	6,402	$	267,280
Retained Earnings (Deficit) as of March 31, 2023	(286,422)		6,402		(280,020)
Stockholders Equity (Deficit) attributable to UIHC at March 31, 2023	83,488		6,402		89,890
Total Stockholders' Equity (Deficit)	83,488		6,402		89,890

In connection with these changes, our Notes to Unaudited Condensed Consolidated Financial Statements have also been restated where applicable.

XML

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Pending Accounting Pronouncements

(a) Changes to Significant Accounting Policies

During the three months ended March 31, 2023, our former subsidiary, UPC, was placed into receivership with the DFS. As described in Note 1, effective February 27, 2023, this receivership divested our ownership of UPC. This disposal was evaluated for qualification as a discontinued operation. The results of operations of business are reported as discontinued operations when the disposal represents a strategic shift that will have a major effect on the entity's operations and financial results. When a business is identified for discontinued operations reporting:

•Results for prior periods are retroactively reclassified as discontinued operations;

•Results of operations are reported in a single line, net of tax, in the Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss); and

•Assets and liabilities are reported as held for disposal in the Unaudited Condensed Consolidated Balance Sheets

•Premiums directly assumed from UPC by another entity of the consolidated group are now captured as assumed.

Additional details by major classification of operating results and financial position are included in Note 4.

There have been no other changes to our significant accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2022.

(b) Pending Accounting Pronouncements

We have evaluated pending accounting pronouncements and do not believe any would have an impact on the operations or financial reporting of our company.

XML

Discontinued Operations and Disposal Groups (Tables)

3 Months Ended

Mar. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Assets & Liabilities

The results from discontinued operations for the three months ended March 31, 2023 and 2022 are presented below.

Results From Discontinued Operations
	Three Months Ended March 31,
	2023		2022
REVENUE:
Gross premiums written	$	(120,608)	$	146,828
Change in gross unearned premiums	198,154		59,726
Gross premiums earned	77,546		206,554
Ceded premiums earned	(48,203)		(163,443)
Net premiums earned	29,343		43,111
Net investment income	2,182		1,075
Net realized investment gains (losses)	1,343		(1,806)
Net unrealized gains (losses) on equity securities	2,080		(1,498)
Other revenue	2,717		3,063
Total revenue	37,665		43,945
EXPENSES:
Losses and loss adjustment expenses	35,226		65,064
Policy acquisition costs	(1,352)		5,708
Operating expenses	3,996		8,541
General and administrative expenses	1,284		7,941
Interest expense	22		20
Total expenses	39,176		87,274
Loss before other income	(1,511)		(43,329)
Other income (loss)	—		9
Loss before income taxes	(1,511)		(43,320)
Provision (benefit) for income taxes	16		(10,336)
Income (loss) from discontinued operations, net of tax	$	(1,527)	$	(32,984)

As of February 28, 2023, the Company completed the disposal of its former subsidiary, UPC. This divestiture resulted in a gain of $238,440,000 for the period. This gain was driven by the negative equity position of UPC.

The major classes of assets and liabilities transferred as a result of the transaction as of the date of transfer and December 31, 2022 are presented below.

Major Classes of Assets and Liabilities Disposed
	Closing (1)		December 31, 2022
ASSETS
Fixed maturities, available-for-sale	1,380		171,781
Equity securities	272		23,363
Other investments	12,882		12,952
Cash and cash equivalents	224,824		158,990
Restricted cash	7,758		7,730
Accrued investment income	875		1,457
Premiums receivable, net	22,733		46,736
Reinsurance recoverable on paid and unpaid losses, net	548,929		834,863
Ceded unearned premiums	75,262		122,533
Deferred policy acquisition costs, net	(89)		(2,046)
Other assets	51,625		33,548
Total assets	$	946,451	$	1,411,907
LIABILITIES
Unpaid losses and loss adjustment expenses	920,431		1,103,980
Unearned premiums	98,655		286,842
Reinsurance payable on premiums	12,612		29,394
Payments outstanding	144,238		213,058
Accounts payable and accrued expenses	1,361		(872)
Other liabilities	3,476		14,658
Notes payable, net	4,118		4,118
Total Liabilities	$	1,184,891	$	1,651,178

XML

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The tables below present the information for each of the reportable segment's profit or loss, as well as segment assets for the three months ended March 31, 2023 and 2022. We have restated our segments to reflect the divestiture of UPC during the first quarter of 2023, excluding the result of the entity for all periods presented.

	Three Months Ended March 31, 2023
	Commercial			Personal (1)			Adjustments		Consolidated
REVENUE:
Gross premiums written	$	176,641		$	10,482		$	—	$	187,123
Change in gross unearned premiums	(44,607)			1,960			—		(42,647)
Gross premiums earned	132,034			12,442			—		144,476
Ceded premiums earned	(53,374)			(3,778)			—		(57,152)
Net premiums earned	78,660			8,664			—		87,324
Net investment income	1,786			782			21		2,589
Net realized gains (losses)	(83)			—			—		(83)
Net unrealized losses on equity securities	473			—			1		474
Other revenue	—			16			—		16
Total revenues	80,836			9,462			22		90,320
EXPENSES:
Losses and loss adjustment expenses	13,901			2,511			—		16,412
Policy acquisition costs	25,166			1,806			—		26,972
Operating expenses	96			1,948			124		2,168
General and administrative expenses (2)	2,754			5,907			132		8,793
Interest expense	—			—			2,719		2,719
Total expenses	41,917			12,172			2,975		57,064
Income (loss) before other income	38,919			(2,710)			(2,953)		33,256
Other income (loss)	—			803			(215)		588
Income (loss) before income taxes	$	38,919		$	(1,907)		(3,168)		33,844
Provision for income taxes							3,477		3,477
Net income (loss)							$	(6,645)	$	30,367
Less: Net loss attributable to noncontrolling interests							—		—
Net income (loss) attributable to UIHC							$	(6,645)	$	30,367
Loss ratio, net (3) (4)	17.7		%	29.0		%			18.9		%
Expense ratio (3) (5)	35.6		%	111.5		%			43.4		%
Combined ratio (3) (6)	53.3		%	140.5		%			62.3		%
Total segment assets	$	1,304,499		$	118,700		$	10,842	$	1,434,041

(1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations.

(2) Included in our General and Administrative expenses is $1,007,000 and $812,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively.

(3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below.

(4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses.

(5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses.

(6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business.

	Three Months Ended March 31, 2022
	Commercial			Personal (1)			Adjustments		Consolidated
REVENUE:
Gross premiums written	$	127,964		$	14,450		$	—	$	142,414
Change in gross unearned premiums	(20,499)			818			—		(19,681)
Gross premiums earned	107,465			15,268			—		122,733
Ceded premiums earned	(62,022)			(2,965)			—		(64,987)
Net premiums earned	45,443			12,303			—		57,746
Net investment income	1,127			268			9		1,404
Net realized gains	2			35			—		37
Net unrealized losses on equity securities	(769)			—			(1)		(770)
Other revenue	—			15			—		15
Total revenues	45,803			12,621			8		58,432
EXPENSES:
Losses and loss adjustment expenses	14,114			12,201			—		26,315
Policy acquisition costs	16,678			3,630			—		20,308
Operating expenses	1,109			2,507			91		3,707
General and administrative expenses (2)	2,320			5,363			381		8,064
Interest expense	—			—			2,359		2,359
Total expenses	34,221			23,701			2,831		60,753
Income (loss) before other income	11,582			(11,080)			(2,823)		(2,321)
Other income	—			(277)			1,610		1,333
Income (loss) before income taxes	$	11,582		$	(11,357)		(1,213)		(988)
Provision for income taxes							(715)		(715)
Net income (loss)							$	(498)	$	(273)
Less: Net income attributable to noncontrolling interests							(85)		(85)
Net income (loss) attributable to UIHC							$	(413)	$	(188)
Loss ratio, net (3) (4) (7)	31.1		%	99.2		%			45.6		%
Expense ratio (3) (5) (7)	44.2		%	93.5		%			55.6		%
Combined ratio (3) (6) (7)	75.3		%	192.7		%			101.1		%
Total segment assets	$	949,359		$	156,443		$	17,507	$	1,123,309

(1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations.

(2) Included in our General and Administrative expenses is $1,074,000 and $885,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively.

(3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below.

(4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses.

(5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses.

(6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business.

XML

Investments (Tables)

3 Months Ended

Mar. 31, 2023

Debt and Equity Securities, FV-NI

Schedule of Available-for-sale Securities Reconciliation

The following table details fixed-maturity available-for-sale securities, by major investment category, at March 31, 2023 and December 31, 2022:

	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2023
U.S. government and agency securities	$	3,491	$	—	$	82	$	3,409
Foreign government	1,000		—		9		991
States, municipalities and political subdivisions	31,924		15		3,357		28,582
Public utilities	8,913		—		1,093		7,820
Corporate securities	99,324		58		13,659		85,723
Mortgage-backed securities	64,285		—		8,283		56,002
Asset-backed securities	30,536		36		2,366		28,206
Total fixed maturities	$	239,473	$	109	$	28,849	$	210,733
December 31, 2022
U.S. government and agency securities	$	2,490	$	—	$	105	$	2,385
Foreign government	1,000		—		9		991
States, municipalities and political subdivisions	30,958		2		4,065		26,895
Public utilities	8,936		—		1,242		7,694
Corporate securities	99,062		20		15,739		83,343
Mortgage-backed securities	65,251		—		9,136		56,115
Asset-backed securities	30,038		9		2,788		27,259
Total fixed maturities	$	237,735	$	31	$	33,084	$	204,682

Equity Securities Fair Value

Equity securities are summarized as follows:

	March 31, 2023				December 31, 2022
	Estimated Fair Value		Percent of Total		Estimated Fair Value		Percent of Total
Mutual funds	$	16,181	100.0	%	$	15,657	100.0	%

Schedule of Realized Gain (Loss)

The following table details our realized gains (losses) by major investment category for the three months ended March 31, 2023 and 2022, respectively:

	2023				2022
	Gains (Losses)		Fair Value at Sale		Gains (Losses)		Fair Value at Sale
Three Months Ended March 31,
Fixed maturities	$	4	$	5,292	$	41	$	12,192
Equity securities	—		—		—		—
Short-term investments	—		126		—		—
Total realized gains	4		5,418		41		12,192
Fixed maturities	(87)		(41)		(4)		251
Equity securities	—		—		—		—
Short-term investments	—		—		—		—
Total realized losses	(87)		(41)		(4)		251
Net realized investment gains (losses)	$	(83)	$	5,377	$	37	$	12,443

Investments Classified by Contractual Maturity Date

The table below summarizes our fixed maturities at March 31, 2023 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturities of those obligations.

	March 31, 2023
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	7,097	3.0	%	$	7,016	3.3	%
Due after one year through five years	50,754		21.2		46,402		22.0
Due after five years through ten years	82,508		34.5		69,386		32.9
Due after ten years	4,293		1.8		3,721		1.8
Asset and mortgage-backed securities	94,821		39.5		84,208		40.0
Total	$	239,473	100.0	%	$	210,733	100.0	%

Investment Income

The following table summarizes our net investment income by major investment category:

	Three Months Ended March 31,
	2023		2022
Fixed maturities	$	1,272	$	1,431
Equity securities	81		66
Cash and cash equivalents	1,304		22
Other investments	6		55
Other assets	—		—
Investment income	2,663		1,574
Investment expenses	(74)		(170)
Net investment income	$	2,589	$	1,404

Schedule of Unrealized Loss on Investments

The following table presents an aging of our unrealized investment losses by investment class:

	Less Than Twelve Months					Twelve Months or More
	Number of Securities(1)	Gross Unrealized Losses		Fair Value		Number of Securities(1)	Gross Unrealized Losses		Fair Value
March 31, 2023
U.S. government and agency securities	1	$	9	$	990	2	$	73	$	1,421
Foreign governments	1	9		991		—	—		—
States, municipalities and political subdivisions	8	49		3,732		45	3,308		23,324
Public utilities	—	—		—		12	1,093		7,819
Corporate securities	35	547		10,964		115	13,112		71,582
Mortgage-backed securities	12	248		3,749		116	8,035		52,254
Asset-backed securities	7	36		3,013		54	2,330		22,632
Total fixed maturities	64	$	898	$	23,439	344	$	27,951	$	179,032
December 31, 2022
U.S. government and agency securities	3	$	105	$	2,385	—	$	—	$	—
Foreign governments	1	9		991		—	—		—
States, municipalities and political subdivisions	21	540		7,306		31	3,525		18,853
Public utilities	8	193		2,286		4	1,049		5,408
Corporate securities	78	2,279		24,594		77	13,460		57,765
Mortgage-backed securities	48	1,282		15,259		80	7,854		40,856
Asset-backed securities	16	795		6,397		46	1,993		19,028
Total fixed maturities	175	$	5,203	$	59,218	238	$	27,881	$	141,910

(1) This amount represents the actual number of discrete securities, not the number of shares or units of those securities. The numbers are not presented in thousands.

Schedule of Fair Value of Financial Instruments Measured on a Recurring Basis

The following table presents the fair value of our financial instruments measured on a recurring basis by level at March 31, 2023 and December 31, 2022:

	Total		Level 1		Level 2		Level 3
March 31, 2023
U.S. government and agency securities	$	3,409	$	—	$	3,409	$	—
Foreign government	991		—		991		—
States, municipalities and political subdivisions	28,582		—		28,582		—
Public utilities	7,820		—		7,820		—
Corporate securities	85,723		—		85,723		—
Mortgage-backed securities	56,002		—		56,002		—
Asset-backed securities	28,206		—		28,206		—
Total fixed maturities	210,733		—		210,733		—
Mutual funds	16,181		16,181		—		—
Total investments	$	226,914	$	16,181	$	210,733	$	—
December 31, 2022
U.S. government and agency securities	$	2,385	$	—	$	2,385	$	—
Foreign government	991		—		991		—
States, municipalities and political subdivisions	26,895		—		26,895		—
Public utilities	7,694		—		7,694		—
Corporate securities	83,343		—		83,343		—
Mortgage-backed securities	56,115		—		56,115		—
Asset-backed securities	27,259		—		27,259		—
Total fixed maturities	204,682		—		204,682		—
Mutual Funds	15,657		15,657		—		—
Total equity securities	15,657		15,657		—		—
Other investments (1)	125		—		125		—
Total investments	$	220,464	$	15,657	$	204,807	$	—

(1) Other investments included in the fair value hierarchy exclude these limited partnership interests that are measured at estimated fair value using the net asset value per share (or its equivalent) practical expedient.

Schedule of Investments in Limited Partnerships

The information presented in the table below is as of March 31, 2023:

	Book Value		Unrealized Gain		Unrealized Loss		Fair Value
March 31, 2023
Limited partnership investments (1)	$	2,917	$	633	$	—	$	3,550

Restrictions on Cash and Cash Equivalents

The following table presents the components of restricted assets:

	March 31, 2023		December 31, 2022
Trust funds	$	49,046	$	45,364
Cash on deposit (regulatory deposits)	625		624
Total restricted cash	$	49,671	$	45,988

Securities Owned and Other Investments Not Readily Marketable Disclosure

The table below shows the carrying value of those securities held on deposit with regulators.

	March 31, 2023		December 31, 2022
Invested assets on deposit (regulatory deposits)	$	2,491	$	2,616

XML

Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share

The following table shows the computation of basic and diluted EPS for the three month periods ended March 31, 2023 and 2022, respectively:

	Three Months Ended March 31,
	2023		2022
Numerator:
Net income (loss) attributable to UIHC common stockholders	$	267,280	$	(33,172)
Denominator:
Weighted-average shares outstanding	43,124,825		42,980,691
Effect of dilutive securities	450,015		—
Weighted-average diluted shares	43,574,840		42,980,691
Earnings available to UIHC common stockholders per share
Basic	$	6.19	$	(0.77)
Diluted	$	6.14	$	(0.77)

XML

Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment, net consists of the following:

	March 31, 2023		December 31, 2022
Computer hardware and software (software in progress of $76 and $82, respectively)	$	8,134	$	8,164
Office furniture and equipment	798		1,414
Leasehold improvements	316		753
Leased vehicles(1)	11		1,080
Total, at cost	9,259		11,411
Less: accumulated depreciation and amortization	(4,536)		(6,118)
Property and equipment, net	$	4,723	$	5,293

XML

Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

The following is a summary of intangible assets excluding goodwill recorded as intangible assets on our Unaudited Condensed Consolidated Balance Sheets:

	March 31, 2023		December 31, 2022
Intangible assets subject to amortization	$	10,560	$	11,372
Indefinite-lived intangible assets(1)	1,198		1,398
Total	$	11,758	$	12,770

(1) Indefinite-lived intangible assets are comprised of state insurance and agent licenses, as well as perpetual software licenses.

Schedule of Acquired Finite-Lived Intangible Assets by Major Class

Intangible assets subject to amortization consisted of the following:

	Weighted-average remaining amortization period (in years)	Gross carrying amount		Accumulated amortization		Net carrying amount
March 31, 2023
Value of business acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	4.0	34,661		(24,910)		9,751
Trade names acquired	1.0	6,381		(5,572)		809
Total		$	83,830	$	(73,270)	$	10,560
December 31, 2022
Value of business acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	4.3	34,661		(24,300)		10,361
Trade names acquired	1.3	6,381		(5,370)		1,011
Total		$	83,830	$	(72,458)	$	11,372

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated amortization expense of our intangible assets to be recognized by the Company during the remainder of 2023 and over the next five years is as follows:

Year ending December 31,	Estimated Amortization Expense
Remaining in 2023	$	2,435
2024	2,640
2025	2,438
2026	2,438
2027	609
2028	—

XML

Reinsurance (Tables)

3 Months Ended

Mar. 31, 2023

Reinsurance Disclosures [Abstract]

Reinsurance Recoverables

Reinsurance recoverable at the balance sheet dates consists of the following:

	March 31,		December 31,
	2023		2022
Reinsurance recoverable on unpaid losses and loss adjustment expenses	$	646,011	$	732,254
Reinsurance recoverable on paid losses and loss adjustment expenses	146,339		64,292
Reinsurance recoverable (1)	$	792,350	$	796,546

XML

Liability for Unpaid Losses and Loss Adjustment Expense (Tables)

3 Months Ended

Mar. 31, 2023

Insurance [Abstract]

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The table below shows the analysis of our reserve for unpaid losses for the three months ended March 31, 2023 and 2022 on a GAAP basis:

	March 31,
	2023		2022
Balance at January 1	$	842,958	$	250,642
Less: reinsurance recoverable on unpaid losses	732,254		176,096
Net balance at January 1	$	110,704	$	74,546
Incurred related to:
Current year	19,577		29,379
Prior years	(3,165)		(3,064)
Total incurred	$	16,412	$	26,315
Paid related to:
Current year	10,654		11,219
Prior years	14,108		18,358
Total paid	$	24,762	$	29,577
Net balance at March 31	$	102,354	$	71,284
Plus: reinsurance recoverable on unpaid losses	646,011		168,289
Balance at March 31	$	748,365	$	239,573
Composition of reserve for unpaid losses and LAE:
Case reserves	$	284,679	$	119,969
IBNR reserves	463,686		119,604
Balance at March 31	$	748,365	$	239,573

XML

Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The table below presents all long-term debt outstanding as of March 31, 2023 and December 31, 2022:

		Effective Interest Rate	Carrying Value at
	Maturity		March 31, 2023		December 31, 2022
Senior Notes	December 15, 2027	7.25%	$	150,000	$	150,000
Florida State Board of Administration Note (1)	July 1, 2026	N/A	—		—
Truist Term Note Payable (2)	May 26, 2031	N/A	—		—
Total long-term debt			$	150,000	$	150,000

Debt Issuance Cost Rollforward

The table below presents the rollforward of our debt issuance costs paid, in conjunction with the debt instruments described above, during the three months ended March 31, 2023 and 2022:

	2023		2022
Balance at January 1,	$	1,645	$	1,998
Additions	—		—
Amortization	(83)		(84)
Balance at March 31,	$	1,562	$	1,914

XML

Commitments and Contingencies Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Lease, Cost

The components of lease expenses were as follows:

	Three Months Ended March 31,
	2023		2022
Operating lease expense	$	222	$	160
Financing lease expense:
Amortization of leased assets	7		129
Net lease expense	$	229	$	289

Lease Assets and Liabilities

The classification of operating and finance lease asset and liability balances within the Unaudited Condensed Consolidated Balance Sheets was as follows:

	Financial Statement Line	March 31, 2023		December 31, 2022
Assets
Operating lease assets	Other assets	$	1,096	$	1,278
Financing lease assets	Property and equipment, net	2		51
Total lease assets		$	1,098	$	1,329
Liabilities
Operating lease liabilities	Operating lease liability	$	1,412	$	1,689
Financing lease liabilities	Other liabilities	—		2
Total lease liabilities		$	1,412	$	1,691

Weighted Average Lease Terms

Weighted average remaining lease term and discount rate related to operating and finance leases were as follows:

	March 31, 2023		December 31, 2022
Weighted average remaining lease term (months)
Operating leases	23		25
Financing leases	—		9
Weighted average discount rate
Operating leases	3.70	%	3.79	%
Financing leases	—	%	3.27	%

Lessee, Operating Lease, Liability, Maturity

At March 31, 2023, future minimum gross lease payments relating to these non-cancellable operating and finance lease agreements were as follows:

	Operating Leases		Finance Leases		Total
Remaining in 2023	$	682	$	—	$	682
2024	593		—		593
2025	222		—		222
2026	11		—		11
2027	—		—		—
Thereafter	—		—		—
Total undiscounted future minimum lease payments	1,508		—		1,508
Less: Imputed interest	(96)		—		(96)
Present value of lease liabilities	$	1,412	$	—	$	1,412

XML

Credit Losses (Tables)

3 Months Ended

Mar. 31, 2023

Credit Loss [Abstract]

Credit Loss Allowance Activity [Table]

The following tables summarize our allowance for expected credit losses by pooled asset for the three months ended March 31, 2023 and 2022:

March 31, 2023	December 31, 2022		Provision for expected credit losses		Write-offs		March 31, 2023
Premiums Receivable	$	32	$	(34)	$	29	$	27
Reinsurance Recoverables	333		(183)		—		150
Total	$	365	$	(217)	$	29	$	177
March 31, 2022	December 31, 2021		Provision for expected credit losses		Write-offs		March 31, 2022
Premiums Receivable	$	16	$	(14)	$	10	$	12
Reinsurance Recoverables	58		22		—		80
Total	$	74	$	8	$	10	$	92

XML

Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The table below details the components of accumulated other comprehensive loss at period end:

	Pre-Tax Amount		Tax (Expense) Benefit		Net-of-Tax Amount
December 31, 2022	$	(33,041)	$	2,094	$	(30,947)
Changes in net unrealized losses on investments	5,574		(315)		5,259
Reclassification adjustment for realized losses	(1,260)		315		(945)
Impact of deconsolidation of discontinued operations	$	(3)	$	1,007	$	1,004
March 31, 2023	$	(28,730)	$	3,101	$	(25,629)

XML

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2023

Stockholders' Equity Note [Abstract]

Schedule of Dividends Declared

Our Board of Directors declared dividends on our outstanding shares of common stock to stockholders of record as follows for the periods presented (in thousands, except per share amounts):

	Three Months Ended March 31,
	2023				2022
	Per Share Amount		Aggregate Amount		Per Share Amount		Aggregate Amount
First Quarter	$	—	$	—	$	0.06	$	2,589

XML

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity

The following table presents certain information related to the activity of our non-vested stock option grants:

	Number of Stock Options	Weighted Average Exercise Prices		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2022	1,250,685	$	3.71	7.66	$	—
Granted	—	—		—	—
Less: Forfeited	—	—		—	—
Less: Expired	161,925	3.05		—	—
Less: Exercised	—	—		—	—
Outstanding as of March 31, 2023	1,088,760	$	3.81	8.55	$	451
Vested as of March 31, 2023(1)	532,797	$	7.26	7.79	$	112
Exercisable as of March 31, 2023	270,861	$	6.57	7.89	$	112

(1) The vested shares are calculated based on all vested shares at March 31, 2023, inclusive of those that have since expired. The weighted average exercise prices, weighted-average remaining contractual term and aggregate intrinsic value is calculated based on only vested shares that are outstanding and exercisable at March 31, 2023.

Schedule of Nonvested Share Activity

The following table presents certain information related to the activity of our non-vested common stock grants:

	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2022	714,239	$	2.73
Granted	—	—
Less: Forfeited	856	3.59
Less: Vested	44,457	4.40
Outstanding as of March 31, 2023	668,926	$	2.62

Share-based Payment Arrangement, Activity

The following table presents our total stock-based compensation expense:

	Three Months Ended March 31,
	2023		2022
Employee stock-based compensation expense
Pre-tax	$	309	$	390
Post-tax (1)	244		308
Director stock-based compensation expense
Pre-tax	26		62
Post-tax (1)	21		49

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The following weighted-average assumptions were used to value the stock options granted:

	2023		2022
Expected annual dividend yield	—	%	—	%
Expected volatility	—	%	49.66	%
Risk-free interest rate	—	%	2.92	%
Expected term	N/A		6 years

XML

Accounting Changes and Error Corrections (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The impact of the restatement on the financial statements for the affected quarterly periods are presented below.

Restated Condensed Consolidated Balance Sheets (Unaudited)

	As of March 31, 2023
	As Previously Reported		Adjustment	As Restated
ASSETS
Property and equipment, net	18,118		(13,395)	4,723
Other Assets	15,426		2,050	17,476
Assets held for disposal	—		13,395	13,395
Total Assets	$	1,445,386	2,050	$	1,447,436
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Other liabilities	36,242		(6,169)	30,073
Liabilities held for disposal	—		1,817	1,817
Total Liabilities	$	1,361,898	(4,352)	$	1,357,546
Stockholders' Equity:
Retained earnings (deficit)	$	(286,422)	6,402	$	(280,020)
Total Stockholders' Equity (Deficit)	$	83,488	6,402	$	89,890

	As of December 31, 2022
	As Previously Reported	Adjustment	As Restated
ASSETS
Property and equipment, net	19,591	(14,298)	5,293
Deferred policy acquisition costs, net	60,979	(8,610)	52,369
Assets held for disposal	1,411,907	22,908	1,434,815
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued expenses	75,374	(988)	74,386
Other liabilities	17,466	(11,617)	5,849
Liabilities held for disposal	1,642,212	12,605	1,654,817

Restated Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

	Three Months Ended March 31, 2023
REVENUE:	As Previously Reported		Adjustment		As Restated
Management fee income	9,668		(9,668)		—
Other revenue	4,075		(4,059)		16
Total revenue	104,047		(13,727)		90,320
EXPENSES:
Losses and loss adjustment expenses	19,073		(2,661)		16,412
Policy acquisition costs	26,927		45		26,972
Operating expenses	5,651		(3,483)		2,168
General and administrative expenses	9,837		(1,044)		8,793
Total expenses	61,488		(7,143)		54,345
Income before other income	39,840		(6,584)		33,256
Income before income taxes	40,428		(6,584)		33,844
Provision for income taxes	9,855		(6,378)		3,477
Income from continuing operations, net of tax	$	30,573	$	(206)	$	30,367
Income from discontinued operations, net of tax	230,305		6,608		236,913
Net income	$	260,878	$	6,402	$	267,280
Earnings available to UIHC common stockholders per share
Basic
Continuing operations	$	0.71	$	(0.01)	$	0.70
Discontinued operations	5.34		0.15		5.49
Total	$	6.05	$	0.14	$	6.19
Diluted
Continuing operations	$	0.70	$	—	$	0.70
Discontinued operations	5.29		0.15		5.44
Total	$	5.99	$	0.15	$	6.14

	Three Months Ended March 31, 2022
REVENUE:	As Previously Reported		Adjustment		As Restated
Management fee income	50,206		(50,206)		—
Other revenue	8,738		(8,723)		15
Total revenue	117,361		(58,929)		58,432
EXPENSES:
Losses and loss adjustment expenses	32,518		(6,203)		26,315
Policy acquisition costs	52,152		(31,844)		20,308
Operating expenses	10,603		(6,896)		3,707
General and administrative expenses	15,435		(7,371)		8,064
Total expenses	113,067		(52,314)		60,753
Income (loss) before other income	4,294		(6,615)		(2,321)
Income (loss) before income taxes	5,627		(6,615)		(988)
Provision (benefit) for income taxes	980		(1,695)		(715)
Income (loss) from continuing operations, net of tax	$	4,647	$	(4,920)	$	(273)
Loss from discontinued operations, net of tax	(37,904)		4,920		(32,984)
Net loss	$	(33,257)	$	—	$	(33,257)

Restated Condensed Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended March 31, 2023
	As Previously Reported		Adjustment		As Restated
OPERATING ACTIVITIES
Net income (loss)	$	260,878	$	6,402	$	267,280
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Disposition of former subsidiary	(229,183)		(9,257)		(238,440)
Changes in operating assets and liabilities:
Other liabilities	(6,416)		2,855		(3,561)

Restated Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended

(Unaudited)

	Three Months Ended March 31, 2023
	As Previously Reported		Adjustment		As Restated
Net Income for the three months ended March 31, 2023	$	260,878	$	6,402	$	267,280
Retained Earnings (Deficit) as of March 31, 2023	(286,422)		6,402		(280,020)
Stockholders Equity (Deficit) attributable to UIHC at March 31, 2023	83,488		6,402		89,890
Total Stockholders' Equity (Deficit)	83,488		6,402		89,890

XML

Organization, Consolidation and Presentation (Details)	3 Months Ended
	Mar. 31, 2023 subsidiary
Number of Wholly-Owned Subsidiaries
Number of Wholly Owned Subsidiaries	2

XML

Discontinued Operations and Disposal Groups (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Increase (Decrease) in Unearned Premiums	$ 145,540	$ 39,731
Investment Income, Net	2,589	1,404
Other revenue	16	15
Revenues	90,320	58,432
Losses and loss adjustment expenses	16,412	26,315
Policy acquisition costs	26,972	20,308
Operating Costs and Expenses	2,168	3,707
General and administrative expenses	8,793	8,064
Costs and Expenses	54,345	60,753
Operating Income (Loss)	33,256	(2,321)
Provision for income taxes	3,477	(715)
Fixed maturities (amortized cost of $559,163 and $672,139	210,733		$ 204,682
Equity Securities, FV-NI	16,181		15,657
Other investments (amortized cost of $16,780 and $17,131	3,550		3,675
Cash and Cash Equivalents	92,586		70,903
Restricted Cash	49,671		45,988
Accrued Investment Income	1,818		1,605
Property and equipment, net	4,723		5,293
Premiums receivable, net (credit allowance of $28 and $32)	48,120		39,301
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments (credit allowance of $552 and $563)	792,350		796,546
Prepaid Reinsurance Premiums	65,702		90,496
Deferred policy acquisition costs	59,897		52,369
Other assets, net	17,476		3,920
Disposal Group, Including Discontinued Operation, Assets	13,395		1,434,815
Unpaid losses and loss adjustment expenses	748,365	239,573	842,958	$ 250,642
Unearned Premiums	301,625		258,978
Reinsurance Payable	33,908		30,503
Payments outstanding	2,326		2,000
Accounts Payable	89,582		74,386
Other Liabilities	30,073		5,849
Notes Payable	148,438		148,355
Disposal Group, Including Discontinued Operation, Liabilities	1,817		1,654,817
Assets	1,447,436	1,123,309	2,837,496
Liabilities	1,357,546		3,019,535
Continuing Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross premiums written	187,123	142,414
Increase (Decrease) in Unearned Premiums	(42,647)	(19,681)
Gross premiums earned	144,476	122,733
Ceded premiums earned	(57,152)	(64,987)
Premiums Earned, Net, Property and Casualty	87,324	57,746
Investment Income, Net	2,589	1,404
Gain (Loss) on Investments	(83)	37
Increase (Decrease) in Equity Securities, FV-NI	474	(770)
Other revenue	16	15
Revenues	90,320	58,432
Losses and loss adjustment expenses	16,412	26,315
Policy acquisition costs	26,972	20,308
Operating Costs and Expenses	2,168	3,707
General and administrative expenses	8,793	8,064
Interest expense	2,719	2,359
Costs and Expenses	57,064	60,753
Operating Income (Loss)	33,256	(2,321)
Other income	588	1,333
Provision for income taxes	3,477	(715)
Assets	1,434,041
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross premiums written	(120,608)	146,828
Increase (Decrease) in Unearned Premiums	198,154	59,726
Gross premiums earned	77,546	206,554
Ceded premiums earned	(48,203)	(163,443)
Premiums Earned, Net, Property and Casualty	29,343	43,111
Investment Income, Net	2,182	1,075
Gain (Loss) on Investments	1,343	(1,806)
Increase (Decrease) in Equity Securities, FV-NI	2,080	(1,498)
Other revenue	2,717	3,063
Revenues	37,665	43,945
Losses and loss adjustment expenses	35,226	65,064
Policy acquisition costs	(1,352)	5,708
Operating Costs and Expenses	3,996	8,541
General and administrative expenses	1,284	7,941
Interest expense	22	20
Costs and Expenses	39,176	87,274
Operating Income (Loss)	(1,511)	(43,329)
Other income	0	9
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	(1,511)	(43,320)
Provision for income taxes	16	(10,336)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	(1,527)	$ (32,984)
Discontinued Operations | Service Entities
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Property and equipment, net	13,395		14,299
Deferred policy acquisition costs	0		8,609
Assets	13,395		22,908
Accrued Sales Commission	1,817		987
Unearned Policy Fees	0		2,652
Liabilities	1,817		3,639
Discontinued Operations | UPC Insurance
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Fixed maturities (amortized cost of $559,163 and $672,139	1,380		171,781
Equity Securities, FV-NI	272		23,363
Other investments (amortized cost of $16,780 and $17,131	12,882		12,952
Cash and Cash Equivalents	224,824		158,990
Restricted Cash	7,758		7,730
Accrued Investment Income	875		1,457
Premiums receivable, net (credit allowance of $28 and $32)	22,733		46,736
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments (credit allowance of $552 and $563)	548,929		834,863
Prepaid Reinsurance Premiums	75,262		122,533
Deferred policy acquisition costs	(89)		(2,046)
Other assets, net	51,625		33,548
Disposal Group, Including Discontinued Operation, Assets	946,451		1,411,907
Unpaid losses and loss adjustment expenses	920,431		1,103,980
Unearned Premiums	98,655		286,842
Reinsurance Payable	12,612		29,394
Payments outstanding	144,238		213,058
Accounts Payable	1,361		(872)
Other Liabilities	3,476		14,658
Notes Payable	4,118		4,118
Disposal Group, Including Discontinued Operation, Liabilities	$ 1,184,891		$ 1,651,178

XML

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Segment Reporting Information
Increase (Decrease) in Unearned Premiums	$ 145,540	$ 39,731
Investment Income, Net	2,589	1,404
Unrealized Gain (Loss) on Investments	2,554	(2,268)
Other revenue	16	15
Revenues	90,320	58,432
Losses and loss adjustment expenses	16,412	26,315
Policy acquisition costs	26,972	20,308
Operating Costs and Expenses	2,168	3,707
General and administrative expenses	8,793	8,064
Costs and Expenses	54,345	60,753
Operating Income (Loss)	33,256	(2,321)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	33,844	(988)
Provision for income taxes	3,477	(715)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	267,280	(33,257)
Net Income (Loss) Attributable to Noncontrolling Interest	0	(85)
Net Income (Loss), Parent	$ 267,280	$ (33,172)
Loss Ratio	18.90%	45.60%
Underwriting Expense Ratio	43.40%	55.60%
Combined Ratio	62.30%	101.10%
Assets	$ 1,447,436	$ 1,123,309	$ 2,837,496
Insurance Agency Management Fee	0	0
Continuing Operations
Segment Reporting Information
Gross premiums written	187,123	142,414
Increase (Decrease) in Unearned Premiums	(42,647)	(19,681)
Gross premiums earned	144,476	122,733
Ceded premiums earned	(57,152)	(64,987)
Premiums Earned, Net, Property and Casualty	87,324	57,746
Investment Income, Net	2,589	1,404
Gain (Loss) on Investments	(83)	37
Unrealized Gain (Loss) on Investments	474	(770)
Other revenue	16	15
Revenues	90,320	58,432
Losses and loss adjustment expenses	16,412	26,315
Policy acquisition costs	26,972	20,308
Operating Costs and Expenses	2,168	3,707
General and administrative expenses	8,793	8,064
Interest expense	2,719	2,359
Costs and Expenses	57,064	60,753
Operating Income (Loss)	33,256	(2,321)
Other income	588	1,333
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	33,844	(988)
Provision for income taxes	3,477	(715)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	30,367	(273)
Net Income (Loss) Attributable to Noncontrolling Interest	0	(85)
Net Income (Loss), Parent	30,367	(188)
Assets	1,434,041
Commercial Lines Reporting Segment
Segment Reporting Information
Gross premiums written	176,641	127,964
Increase (Decrease) in Unearned Premiums	(44,607)	(20,499)
Gross premiums earned	132,034	107,465
Ceded premiums earned	(53,374)	(62,022)
Premiums Earned, Net, Property and Casualty	78,660	45,443
Investment Income, Net	1,786	1,127
Gain (Loss) on Investments	(83)	2
Unrealized Gain (Loss) on Investments	473	(769)
Other revenue	0	0
Revenues	80,836	45,803
Losses and loss adjustment expenses	13,901	14,114
Policy acquisition costs	25,166	16,678
Operating Costs and Expenses	96	1,109
General and administrative expenses	2,754	2,320
Interest expense	0	0
Costs and Expenses	41,917	34,221
Operating Income (Loss)	38,919	11,582
Other income	0	0
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	$ 38,919	$ 11,582
Loss Ratio	17.70%	31.10%
Underwriting Expense Ratio	35.60%	44.20%
Combined Ratio	53.30%	75.30%
Assets	$ 1,304,499	$ 949,359
Personal Lines Reporting Segment
Segment Reporting Information
Gross premiums written	10,482	14,450
Increase (Decrease) in Unearned Premiums	1,960	818
Gross premiums earned	12,442	15,268
Ceded premiums earned	(3,778)	(2,965)
Premiums Earned, Net, Property and Casualty	8,664	12,303
Investment Income, Net	782	268
Gain (Loss) on Investments	0	35
Unrealized Gain (Loss) on Investments	0	0
Other revenue	16	15
Revenues	9,462	12,621
Losses and loss adjustment expenses	2,511	12,201
Policy acquisition costs	1,806	3,630
Operating Costs and Expenses	1,948	2,507
General and administrative expenses	5,907	5,363
Interest expense	0	0
Costs and Expenses	12,172	23,701
Operating Income (Loss)	(2,710)	(11,080)
Other income	803	(277)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	$ (1,907)	$ (11,357)
Loss Ratio	29.00%	99.20%
Underwriting Expense Ratio	111.50%	93.50%
Combined Ratio	140.50%
Assets	$ 118,700	$ 156,443
Adjustments and Reconciling Items
Segment Reporting Information
Gross premiums written	0	0
Increase (Decrease) in Unearned Premiums	0	0
Gross premiums earned	0	0
Ceded premiums earned	0	0
Premiums Earned, Net, Property and Casualty	0	0
Investment Income, Net	21	9
Gain (Loss) on Investments	0	0
Unrealized Gain (Loss) on Investments	1	(1)
Other revenue	0	0
Revenues	22	8
Losses and loss adjustment expenses	0	0
Policy acquisition costs	0	0
Operating Costs and Expenses	124	91
General and administrative expenses	132	381
Interest expense	2,719	2,359
Costs and Expenses	2,975	2,831
Operating Income (Loss)	(2,953)	(2,823)
Other income	(215)	1,610
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	(3,168)	(1,213)
Provision for income taxes	3,477	(715)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(6,645)	(498)
Net Income (Loss) Attributable to Noncontrolling Interest	0	(85)
Net Income (Loss), Parent	(6,645)	(413)
Assets	$ 10,842	$ 17,507

XML

Investments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Schedule of Available-for-sale Securities
Credit Loss Change, Available-for-Sale Investments	$ 0	$ 0

XML

Investments - Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Available-for-sale Securities
Fair Value	$ 210,733	$ 204,682
U.S. Government and Agency Securities
Schedule of Available-for-sale Securities
Fixed maturities, cost	3,491	2,490
Fair Value	3,409	2,385
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax	0	0
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	82	105
Foreign Government
Schedule of Available-for-sale Securities
Fixed maturities, cost	1,000	1,000
Fair Value	991	991
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax	0	0
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	9	9
States, Municipalities and Political Subdivisions
Schedule of Available-for-sale Securities
Fixed maturities, cost	31,924	30,958
Fair Value	28,582	26,895
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax	15	2
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	3,357	4,065
Public Utilities
Schedule of Available-for-sale Securities
Fixed maturities, cost	8,913	8,936
Fair Value	7,820	7,694
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax	0	0
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	1,093	1,242
Corporate Securities
Schedule of Available-for-sale Securities
Fixed maturities, cost	99,324	99,062
Fair Value	85,723	83,343
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax	58	20
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	13,659	15,739
Mortgage-backed securities
Schedule of Available-for-sale Securities
Fixed maturities, cost	64,285	65,251
Fair Value	56,002	56,115
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax	0	0
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	8,283	9,136
Asset-backed Securities
Schedule of Available-for-sale Securities
Fixed maturities, cost	30,536	30,038
Fair Value	28,206	27,259
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax	36	9
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	2,366	2,788
Fixed Maturities
Schedule of Available-for-sale Securities
Fixed maturities, cost	239,473	237,735
Fair Value	210,733	204,682
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax	109	31
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	$ 28,849	$ 33,084

XML

Investments - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Fair Value at Sale
Fair value at sale	$ 5,418	$ 12,192
Fair value at sale	(41)	251
Net fair value at sale	5,377	12,443
Debt Securities, Available-for-Sale, Realized Gain	4	41
Debt Securities, Available-for-Sale, Realized Loss	(87)	(4)
Debt Securities, Available-for-Sale, Realized Gain (Loss)	(83)	37
Fixed Maturities
Fair Value at Sale
Fair value at sale	5,292	12,192
Fair value at sale	(41)	251
Debt Securities, Available-for-Sale, Realized Gain	4	41
Debt Securities, Available-for-Sale, Realized Loss	(87)	(4)
Equity Securities
Fair Value at Sale
Fair value at sale	0	0
Fair value at sale	0	0
Equity Securities, FV-NI, Realized Gain	0	0
Equity Securities, FV-NI, Realized Loss	0	0
Short-term Investments
Fair Value at Sale
Fair value at sale	126	0
Fair value at sale	0	0
Debt Securities, Available-for-Sale, Realized Gain	0	0
Debt Securities, Available-for-Sale, Realized Loss	$ 0	$ 0

XML

Investments - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value
Total	$ 210,733	$ 204,682
Fixed Maturities
Cost or Amortized Cost
Due in one year or less	7,097
Due after one year through five years	50,754
Due after five years through ten years	82,508
Due after ten years	4,293
Asset and mortgage backed securities	94,821
Cost or adjusted/amortized cost	$ 239,473	237,735
Percent of Total
Due in one year or less	3.00%
Due after one year through five years	21.20%
Due after five years through ten years	34.50%
Due after ten years	1.80%
Asset and mortgage backed securities	39.50%
Total	100.00%
Fair Value
Due in one year or less	$ 7,016
Due after one year through five years	46,402
Due after five years through ten years	69,386
Due after ten years	3,721
Asset and mortgage backed securities	84,208
Total	$ 210,733	$ 204,682
Percent of Total
Due in one year or less	3.30%
Due after one year through five years	22.00%
Due after five years through ten years	32.90%
Due after ten years	1.80%
Asset and mortgage backed securities	40.00%
Total	100.00%

XML

Investments - Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net Investment Income
Investment income	$ 2,663	$ 1,574
Investment expenses	(74)	(170)
Net investment income	2,589	1,404
Fixed Maturities
Net Investment Income
Investment income	1,272	1,431
Equity Securities
Net Investment Income
Investment income	81	66
Cash and cash equivalents
Net Investment Income
Investment income	1,304	22
Other Investments
Net Investment Income
Investment income	6	55
Other Assets
Net Investment Income
Investment income	$ 0	$ 0

XML

Investments - Schedule of Unrealized Loss on Investments (Details) $ in Thousands	Mar. 31, 2023 USD ($) security	Dec. 31, 2022 USD ($) security
U.S. Government and Agency Securities
Twelve Months or More
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security	1	3
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 9	$ 105
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 990	$ 2,385
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security	2	0
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 73	$ 0
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	$ 1,421	$ 0
States, Municipalities and Political Subdivisions
Twelve Months or More
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security	8	21
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 49	$ 540
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 3,732	$ 7,306
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security	45	31
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 3,308	$ 3,525
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	$ 23,324	$ 18,853
Public Utilities
Twelve Months or More
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security	0	8
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 0	$ 193
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 0	$ 2,286
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security	12	4
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 1,093	$ 1,049
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	$ 7,819	$ 5,408
Corporate Securities
Twelve Months or More
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security	35	78
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 547	$ 2,279
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 10,964	$ 24,594
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security	115	77
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 13,112	$ 13,460
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	$ 71,582	$ 57,765
Mortgage-backed securities
Twelve Months or More
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security	12	48
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 248	$ 1,282
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 3,749	$ 15,259
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security	116	80
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 8,035	$ 7,854
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	$ 52,254	$ 40,856
Asset-backed Securities
Twelve Months or More
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security	7	16
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 36	$ 795
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 3,013	$ 6,397
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security	54	46
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 2,330	$ 1,993
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	$ 22,632	$ 19,028
Fixed Maturities
Twelve Months or More
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security	64	175
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 898	$ 5,203
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 23,439	$ 59,218
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security	344	238
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 27,951	$ 27,881
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	$ 179,032	$ 141,910
Foreign Government
Twelve Months or More
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security	1	1
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 9	$ 9
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 991	$ 991
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security	0	0
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 0	$ 0
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer	$ 0	$ 0

XML

Investments - Schedule of Fair Value of Financial Instruments Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	$ 210,733	$ 204,682
Debt Securities, Trading, and Equity Securities, FV-NI	226,914	220,464
U.S. Government and Agency Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	3,409	2,385
Foreign Government
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	991	991
States, Municipalities and Political Subdivisions
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	28,582	26,895
Public Utilities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	7,820	7,694
Corporate Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	85,723	83,343
Mortgage-backed securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	56,002	56,115
Asset-backed Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	28,206	27,259
Fixed Maturities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	210,733	204,682
Equity Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139		15,657
Other Long-term Investments
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139		125
Mutual Fund
Schedule of Available-for-sale Securities
Equity securities, fair value	16,181	15,657
Level 1
Schedule of Available-for-sale Securities
Debt Securities, Trading, and Equity Securities, FV-NI	16,181	15,657
Level 1 | U.S. Government and Agency Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 1 | Foreign Government
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 1 | States, Municipalities and Political Subdivisions
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 1 | Public Utilities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 1 | Corporate Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 1 | Mortgage-backed securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 1 | Asset-backed Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 1 | Fixed Maturities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 1 | Equity Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139		15,657
Level 1 | Other Long-term Investments
Schedule of Available-for-sale Securities
Other Investments		0
Level 1 | Mutual Fund
Schedule of Available-for-sale Securities
Equity securities, fair value	16,181	15,657
Level 2
Schedule of Available-for-sale Securities
Debt Securities, Trading, and Equity Securities, FV-NI	210,733	204,807
Level 2 | U.S. Government and Agency Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	3,409	2,385
Level 2 | Foreign Government
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	991	991
Level 2 | States, Municipalities and Political Subdivisions
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	28,582	26,895
Level 2 | Public Utilities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	7,820	7,694
Level 2 | Corporate Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	85,723	83,343
Level 2 | Mortgage-backed securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	56,002	56,115
Level 2 | Asset-backed Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	28,206	27,259
Level 2 | Fixed Maturities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	210,733	204,682
Level 2 | Equity Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139		0
Level 2 | Other Long-term Investments
Schedule of Available-for-sale Securities
Other Investments		125
Level 2 | Mutual Fund
Schedule of Available-for-sale Securities
Equity securities, fair value	0	0
Level 3
Schedule of Available-for-sale Securities
Debt Securities, Trading, and Equity Securities, FV-NI	0	0
Level 3 | U.S. Government and Agency Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 3 | Foreign Government
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 3 | States, Municipalities and Political Subdivisions
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 3 | Public Utilities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 3 | Corporate Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 3 | Mortgage-backed securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 3 | Asset-backed Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 3 | Fixed Maturities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139	0	0
Level 3 | Equity Securities
Schedule of Available-for-sale Securities
Fixed maturities (amortized cost of $559,163 and $672,139		0
Level 3 | Other Long-term Investments
Schedule of Available-for-sale Securities
Other Investments		0
Level 3 | Mutual Fund
Schedule of Available-for-sale Securities
Equity securities, fair value	$ 0	$ 0

XML

Investments - Schedule of Other Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Other Investments
Fair Value	$ 210,733	$ 204,682
Other Long-term Investments
Other Investments
Fair Value		125
Fixed maturities, cost	2,917	$ 3,072
Limited Partnership
Other Investments
Fixed maturities, cost	2,917
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax	633
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax	0
Fair Value of Limited Partnership Interest	$ 3,550

XML

Investments - Equity Securities, FV-NI (Details) - Mutual Fund - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt and Equity Securities, FV-NI
Fair value	$ 16,181	$ 15,657
Percent of Total	100.00%	100.00%

XML

Investments - Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Restricted Cash and Cash Equivalents Items
Assets Held-in-trust	$ 49,046	$ 45,364
Restricted Cash	49,671	45,988
Regulatory Assets, Fair Value Disclosure	625	624
Security Deposit	$ 2,491	$ 2,616

XML

Earnings per Share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator
Net income attributable to UIHC common stockholders	$ 267,280	$ (33,172)
Denominator
Weighted-average shares outstanding	43,124,825	42,980,691
Effect of dilutive securities	450,015	0
Weighted-average diluted shares	43,574,840	42,980,691
Basic earnings per share	$ 6.19	$ (0.77)
Diluted earnings per share	$ 6.14	$ (0.77)

XML

Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 1,008	$ 1,272
Software in progress	76		$ 82
Property, Plant and Equipment, Disposals		616	13,202
Accumulated Depreciation, Depletion and Amortization, Sale or Disposal of Property, Plant and Equipment	603		12,691
Leased Vehicle Disposal	1,069		1,222
Accumulated Depreciation - Leased Vehicles Disposed of		$ 1,037	1,114
Gain on Leased Vehicle Disposal	$ 422		738
Building Disposal			13,369
Accumulated Depreciation, Buildings Disposed of			5,129
Gain on Building Disposal			$ 12,164

XML

Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment
Total, at cost	$ 9,259	$ 11,411
Less: Accumulated Depreciation and Amortization, Property, Plant, and Equipment	(4,536)	(6,118)
Property, Plant and Equipment, Net	4,723	5,293
Office Equipment
Property, Plant and Equipment
Total, at cost	798	1,414
Computer Equipment
Property, Plant and Equipment
Total, at cost	8,134	8,164
Leasehold Improvements
Property, Plant and Equipment
Total, at cost	316	753
Vehicles
Property, Plant and Equipment
Total, at cost	$ 11	$ 1,080

XML

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets	$ 812	$ 812
Goodwill	59,476		$ 59,476
Goodwill, Impairment Loss	13,569
Goodwill, Impaired, Accumulated Impairment Loss	13,569
Goodwill - Commercial Lines			59,476
Gain (Loss) on Disposition of Intangible Assets	$ 200		$ 2,359

XML

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Acquired Finite-Lived Intangible Assets
Finite-Lived Intangible Assets, Gross	$ 83,830		$ 83,830
Finite-Lived Intangible Assets, Accumulated Amortization	(73,270)		(72,458)
Finite-Lived Intangible Assets, Net	10,560		11,372
Value of Business Acquired
Acquired Finite-Lived Intangible Assets
Finite-Lived Intangible Assets, Gross	42,788		42,788
Finite-Lived Intangible Assets, Accumulated Amortization	(42,788)		(42,788)
Finite-Lived Intangible Assets, Net	0		0
Customer Relationships
Acquired Finite-Lived Intangible Assets
Finite-Lived Intangible Assets, Gross	34,661		34,661
Finite-Lived Intangible Assets, Accumulated Amortization	(24,910)		(24,300)
Finite-Lived Intangible Assets, Net	$ 9,751		10,361
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	4 years	4 years 4 months
Trade Names
Acquired Finite-Lived Intangible Assets
Finite-Lived Intangible Assets, Gross	$ 6,381		6,381
Finite-Lived Intangible Assets, Accumulated Amortization	(5,572)		(5,370)
Finite-Lived Intangible Assets, Net	$ 809		$ 1,011
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	1 year	1 year 4 months

XML

Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year	$ 2,435
Finite-Lived Intangible Asset, Expected Amortization, Year One	2,640
Finite-Lived Intangible Asset, Expected Amortization, Year Three	2,438
Finite-Lived Intangible Asset, Expected Amortization, Year Four	2,438
Finite-Lived Intangible Asset, Expected Amortization, Year Four	609
Finite-Lived Intangible Asset, Expected Amortization, Year Five	$ 0

XML

Goodwill and Intangible Assets - Reconciliation (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Indefinite-lived Intangible Assets (Excluding Goodwill)	$ 1,198	$ 1,398
Finite-Lived Intangible Assets, Net	10,560	11,372
Intangible Assets, Net (Excluding Goodwill)	$ 11,758	$ 12,770

XML

Reinsurance (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Reinsurance Retention Policy
Document Period End Date	Mar. 31, 2023
Event Retention Level	$ 16,400
Catastrophe Excess of Loss
Reinsurance Retention Policy
Reinsurance, Excess Retention, Amount Reinsured, Per Policy	2,500,000
All Other Perils Excess of Loss
Reinsurance Retention Policy
Reinsurance, Excess Retention, Amount Reinsured, Per Policy	101,000
Interboro Insurance
Reinsurance Retention Policy
Event Retention Level	3,000
Interboro Insurance | Catastrophe Excess of Loss
Reinsurance Retention Policy
Reinsurance, Excess Retention, Amount Reinsured, Per Policy	$ 200,000

XML

Reinsurance Recoverables (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Reinsurance Recoverable
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments	$ 646,011	$ 732,254	$ 168,289	$ 176,096
Reinsurance Recoverable for Paid Claims and Claims Adjustments	146,339	64,292
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments	$ 792,350	$ 796,546

XML

Liability for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Liability for Unpaid Claims and Claims Adjustment Expense
Unpaid losses and loss adjustment expenses	$ 748,365	$ 239,573	$ 842,958	$ 250,642
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments	646,011	168,289	732,254	176,096
Liability for Unpaid Claims and Claims Adjustment Expense, Net	102,354	71,284	$ 110,704	$ 74,546
Current Year Claims and Claims Adjustment Expense	19,577	29,379
Prior Year Claims and Claims Adjustment Expense	(3,165)	3,064
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims	16,412	26,315
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Current Year	10,654	11,219
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years	14,108	18,358
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid	24,762	29,577
Liability for Unpaid Claims and Claims Adjustment Expense, Reported Claims, Amount	284,679	119,969
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount	$ 463,686	$ 119,604

XML

Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 13, 2017	May 26, 2016	Sep. 22, 2006	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument
Notes Payable				$ 148,438	$ 148,355
BB&T Term Note Payable
Debt Instrument
Notes Payable		$ 5,200
Interest rate (percentage)		1.65%
Debt Instrument, Term		15 years
Florida State Board of Administration
Debt Instrument
Notes Payable			$ 20,000
Debt Instrument, Term			20 years
150M Senior Notes
Debt Instrument
Notes Payable	$ 150,000
Interest rate (percentage)	6.25%
Debt Instrument, Term	10 years

XML

Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Dec. 13, 2017	May 26, 2016
Debt Instrument
Long-term Debt, Fair Value	$ 150,000	$ 150,000
150M Senior Notes
Debt Instrument
Debt Instrument, Maturity Date	Dec. 15, 2027
Interest rate (percentage)			6.25%
Debt Instrument, Interest Rate, Effective Percentage	7.25%
Long-term Debt, Fair Value	$ 150,000	150,000
BB&T Term Note Payable
Debt Instrument
Debt Instrument, Maturity Date	May 26, 2031
Interest rate (percentage)				1.65%
Long-term Debt, Fair Value	$ 0	0
Florida State Board of Administration
Debt Instrument
Debt Instrument, Maturity Date	Jul. 01, 2026
Long-term Debt, Fair Value	$ 0	$ 0

XML

Debt Issuance Cost Rollforward (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Debt Issuance Costs, Gross	$ 0		$ 0
Accumulated Amortization, Debt Issuance Costs	(83)		(84)
Debt Issuance Costs, Net	$ 1,562	$ 1,645	$ 1,914	$ 1,998

XML

Commitments and Contingencies Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2023
Lease Costs
Operating Lease, Expense	$ 222	$ 160
Finance Lease, Right-of-Use Asset, Amortization	7	129
Lease, Cost	229	$ 289
Operating Leases, Income Statement, Sublease Revenue	$ 33		$ 297

XML

Commitments and Contingencies Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Lessee, Lease, Description
Operating Lease, Right-of-Use Asset	$ 1,096	$ 1,278
Finance Lease, Right-of-Use Asset, after Accumulated Amortization	2	51
Total Lease Assets	1,098	1,329
Operating Lease, Liability	1,412	1,689
Finance Lease, Liability	0	2
Total Lease Liability	$ 1,412	$ 1,691

XML

Commitments and Contingencies Weighted Average Lease Terms (Details)	Mar. 31, 2023 Rate	Dec. 31, 2022 Rate
Weighted Average Terms
Operating Lease, Weighted Average Discount Rate, Percent	3.70%	3.79%
Operating Lease, Weighted Average Remaining Lease Term	1 year 11 months	2 years 1 month
Finance Lease, Weighted Average Discount Rate, Percent	0.00%	3.27%
Finance Lease, Weighted Average Remaining Lease Term	0 years	9 months

XML

Commitments and Contingencies Schedule of Future Minimum Rental Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Future Minimum Rental Payments
Lessee, Operating Lease, Liability, to be Paid, Year One	$ 682
Finance Lease, Liability, to be Paid, Year One	0
Total Lease Future Payments Year 1	682
Lessee, Operating Lease, Liability, to be Paid, Year Two	593
Finance Lease, Liability, to be Paid, Year Two	0
Total Lease Future Payments Year 2	593
Lessee, Operating Lease, Liability, to be Paid, Year Three	222
Finance Lease, Liability, to be Paid, Year Three	0
Total Lease Future Payments Year 3	222
Lessee, Operating Lease, Liability, to be Paid, Year Four	11
Finance Lease, Liability, to be Paid, Year Four	0
Total Lease Future Payments Year 4	11
Lessee, Operating Lease, Liability, to be Paid, Year Five	0
Finance Lease, Liability, to be Paid, Year Five	0
Total Lease Future Payments Year 5	0
Lessee, Operating Lease, Liability, to be Paid, after Year Five	0
Finance Lease, Liability, to be Paid, after Year Five	0
Total Lease Future Payments Thereafter	0
Operating Leases, Future Minimum Payments Due	1,508
Finance Lease, Liability, Payment, Due	0
Total Lease Future Payments	1,508
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	(96)
Finance Lease, Liability, Undiscounted Excess Amount	0
Total Lease Liability Undiscounted Excess Amount	(96)
Operating Lease, Liability	1,412	$ 1,689
Finance Lease, Liability	0	2
Total Lease Liability	$ 1,412	$ 1,691

XML

Commitments and Contingencies Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Partnership unfunded commitments	$ 4,242	$ 4,238

XML

Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Credit Loss Allowance Activity
Premium Receivable, Allowance for Credit Loss	$ 27	$ 12	$ 32	$ 16
Reinsurance Recoverable, Allowance for Credit Loss	150	80	333	58
Financing Receivable, Allowance for Credit Loss	0		0
Total Credit Loss Allowances	177	92	$ 365	$ 74
Premium Receivable, Credit Loss Expense (Reversal)	(34)	(14)
Reinsurance Recoverable, Credit Loss Expense (Reversal)	(183)	22
Total Credit Loss Allowance Expenses	(217)	8
Premium Receivable, Allowance for Credit Loss, Writeoff	29	10
Reinsurance recoverable, allowance for credit loss, writeoff	0	0
Total Credit Loss Allowance Writeoffs	$ 29	$ 10

XML

Statutory Accounting and Regulation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Insurance [Abstract]
Statutory capital and surplus balance	$ 125,777		$ 103,663
Statutory Net Income [Line Items]
Statutory net income (loss)	16,027	$ 2,125
Statutory capital and surplus balance	125,777		103,663
Statutory net income (loss)	16,027	2,125
American Coastal Insurance Company
Insurance [Abstract]
Statutory capital and surplus balance	101,811		77,511
Statutory Net Income [Line Items]
Statutory net income (loss)	18,230	6,110
Statutory capital and surplus balance	101,811		77,511
Statutory net income (loss)	18,230	6,110
Interboro Insurance
Insurance [Abstract]
Statutory capital and surplus balance	23,966		26,152
Statutory Net Income [Line Items]
Statutory net income (loss)	(2,203)	(3,985)
Statutory capital and surplus balance	23,966		$ 26,152
Statutory net income (loss)	$ (2,203)	$ (3,985)

XML

Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss)
AOCI before Tax, Attributable to Parent	$ (28,730)		$ (33,041)
Accumulated Other Comprehensive Income (Loss), Tax (Expense) Benefit	3,101		2,094
Accumulated Other Comprehensive Income (Loss), Net of Tax	(25,629)		$ (30,947)
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment and Tax	(4,231)	$ 27,689
Reclassification adjustment for net realized investment (gains) losses	(83)	$ (1,769)
Impact of deconsolidation of former entity, tax impact	1,007
Impact of deconsolidation of former entity, pre-tax	(3)
Impact of deconsolidation of former entity, net of tax	1,004
Consolidated Entity Excluding Noncontrolling Interests
Accumulated Other Comprehensive Income (Loss)
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment and Tax	5,574
OCI, Debt Securities, Available-for-Sale, Gain (Loss), before Adjustment, Tax	(315)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	5,259
Reclassification adjustment for net realized investment (gains) losses	(1,260)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	315
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent	$ (945)

XML

Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Class of Stock
Dividends declared per share (in usd per share)	$ 0	$ 0.06
Aggregate amount of dividends	$ 0	$ 2,589
Common Stock, Dividends, Per Share, Cash Paid		$ 2,589

XML

Stockholders' Equity Narrative (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Stockholders' Equity Narrative [Abstract]
Stock Repurchase Program, Authorized Amount	$ 25,000

XML

Stock-Based Compensation - Stock-based Compensation Expense (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) year	Mar. 31, 2022 USD ($)
Employee
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized Stock Compensation Expense	$ 1,709
Weighted average remaining expense period | year	1.8
Pre-Tax Expense	$ 309	$ 390
Post-Tax Expense	244	308
Director
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized Stock Compensation Expense	$ 10
Weighted average remaining expense period | year	0.1
Pre-Tax Expense	$ 26	62
Post-Tax Expense	$ 21	$ 49

XML

Stock-Based Compensation - Non-Vested Common Stock Grants (Details) - Restricted Stock - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award
Granted shares	0	114,866
Less: Forfeited shares	856
Less: Vested shares	44,457
Outstanding shares	668,926		714,239
Granted (fair value)	$ 0	$ 3.59
Less: Forfeited (fair value)	3.59
Less: Vested (fair value)	4.40
Outstanding (fair value)	$ 2.62		$ 2.73

XML

Stock-Based Compensation - Weighted-Average Assumptions - Stock Options (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2022 Rate	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term		6 years
Expected volatility	49.66%
Risk-free interest rate	2.92%

XML

Stock-Based Compensation - Non-Vested Stock Options (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Share-based Payment Arrangement, Option, Exercise Price Range
Granted shares	0
Less: Forfeited shares	0
Outstanding shares	1,088,760	1,250,685
Vested Shares	532,797
Exercisable shares	270,861
Granted (Weighted-Average Exercise)	$ 0
Less: Forfeited (Weighted-Average Exercise)	0
Less: Exercised, (Weighted Average Exercise Price)	0
Outstanding (Weight-Average Exercise)	3.81	$ 3.71
Vested (Weighted-Average Exercise)	7.26
Exercisable (Weighted-Average Exercise)	$ 6.57
Outstanding Options, weighted average remaining contractual term	8 years 6 months	7 years 8 months
Vested weighted average remaining contractual term	7 years 10 months
Exercisable weighted average remaining contractual term	7 years 11 months
Granted Options, Intrinsic Value	$ 0
Forfeited Options, Intrinsic Value	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price	$ 3.05
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	161,925
Exercised Options, Intrinsic Value	$ 0
Outstanding Options, Intrinsic Value	451,000	$ 0
Vested Options, Intrinsic value	112,000
Exercisable Options, Intrinsic Value	$ 112,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term		6 years

XML

Accounting Changes and Error Corrections (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Property and equipment, net	$ 4,723		$ 5,293
Other assets, net	17,476		3,920
Assets	1,447,436	$ 1,123,309	2,837,496
Disposal Group, Including Discontinued Operation, Assets	13,395		1,434,815
Other Liabilities	30,073		5,849
Disposal Group, Including Discontinued Operation, Liabilities	1,817		1,654,817
Liabilities	1,357,546		3,019,535
Retained Earnings	(280,020)		(546,296)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	89,890	276,879	(182,039)	$ 331,957
Deferred policy acquisition costs	59,897		52,369
Accounts Payable	89,582		74,386
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	267,280	(33,257)
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax	(238,440)	0
Other liabilities	(3,561)	8,291
Liabilities and Equity	1,447,436		2,837,496
Insurance Agency Management Fee	0	0
Other revenue	16	15
Revenues	90,320	58,432
Losses and loss adjustment expenses	16,412	26,315
Policy acquisition costs	26,972	20,308
Operating Costs and Expenses	2,168	3,707
General and administrative expenses	8,793	8,064
Costs and Expenses	54,345	60,753
Operating Income (Loss)	33,256	(2,321)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	33,844	(988)
Provision for income taxes	$ 3,477	$ (715)
Basic earnings per share	$ 6.19	$ (0.77)
Diluted earnings per share	$ 6.14	$ (0.77)
Continuing Operations
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Assets	$ 1,434,041
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	30,367	$ (273)
Other revenue	16	15
Revenues	90,320	58,432
Losses and loss adjustment expenses	16,412	26,315
Policy acquisition costs	26,972	20,308
Operating Costs and Expenses	2,168	3,707
General and administrative expenses	8,793	8,064
Interest expense	2,719	2,359
Costs and Expenses	57,064	60,753
Operating Income (Loss)	33,256	(2,321)
Other income	588	1,333
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	33,844	(988)
Provision for income taxes	$ 3,477	$ (715)
Basic earnings per share	$ 0.70	$ 0
Diluted earnings per share	$ 0.70	$ 0
Discontinued Operations
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 236,913	$ (32,984)
Other revenue	2,717	3,063
Revenues	37,665	43,945
Losses and loss adjustment expenses	35,226	65,064
Policy acquisition costs	(1,352)	5,708
Operating Costs and Expenses	3,996	8,541
General and administrative expenses	1,284	7,941
Interest expense	22	20
Costs and Expenses	39,176	87,274
Operating Income (Loss)	(1,511)	(43,329)
Other income	0	9
Provision for income taxes	$ 16	$ (10,336)
Basic earnings per share	$ 5.49	$ (0.77)
Diluted earnings per share	$ 5.44	$ (0.77)
Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Property and equipment, net	$ 18,118		19,591
Other assets, net	15,426
Assets	1,445,386
Disposal Group, Including Discontinued Operation, Assets	0		1,411,907
Other Liabilities	36,242		17,466
Disposal Group, Including Discontinued Operation, Liabilities	0		1,642,212
Liabilities	1,361,898
Retained Earnings	(286,422)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	83,488
Deferred policy acquisition costs			60,979
Accounts Payable			75,374
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	260,878	$ (33,257)
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax	(229,183)
Other liabilities	(6,416)
Insurance Agency Management Fee	9,668	50,206
Other revenue	4,075	8,738
Revenues	104,047	117,361
Losses and loss adjustment expenses	19,073	32,518
Policy acquisition costs	26,927	52,152
Operating Costs and Expenses	5,651	10,603
General and administrative expenses	9,837	15,435
Costs and Expenses	61,488	113,067
Operating Income (Loss)	39,840	4,294
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	40,428	5,627
Provision for income taxes	$ 9,855	980
Basic earnings per share	$ 6.05
Diluted earnings per share	$ 5.99
Previously Reported | Continuing Operations
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 30,573	4,647
Basic earnings per share	$ 0.71
Diluted earnings per share	$ 0.70
Previously Reported | Discontinued Operations
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 230,305	(37,904)
Basic earnings per share	$ 5.34
Diluted earnings per share	$ 5.29
Revision of Prior Period, Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Property and equipment, net	$ (13,395)		(14,298)
Other assets, net	2,050
Assets	2,050
Disposal Group, Including Discontinued Operation, Assets	13,395		22,908
Other Liabilities	(6,169)		(11,617)
Disposal Group, Including Discontinued Operation, Liabilities	1,817		12,605
Liabilities	(4,352)
Retained Earnings	6,402
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	6,402
Deferred policy acquisition costs			(8,610)
Accounts Payable			$ (988)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	6,402	0
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax	(9,257)
Other liabilities	2,855
Insurance Agency Management Fee	(9,668)	(50,206)
Other revenue	(4,059)	(8,723)
Revenues	(13,727)	(58,929)
Losses and loss adjustment expenses	(2,661)	(6,203)
Policy acquisition costs	45	(31,844)
Operating Costs and Expenses	(3,483)	(6,896)
General and administrative expenses	(1,044)	(7,371)
Costs and Expenses	(7,143)	(52,314)
Operating Income (Loss)	(6,584)	(6,615)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	(6,584)	(6,615)
Provision for income taxes	$ (6,378)	(1,695)
Basic earnings per share	$ 0.14
Diluted earnings per share	$ 0.15
Revision of Prior Period, Adjustment | Continuing Operations
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (206)	(4,920)
Basic earnings per share	$ (0.01)
Diluted earnings per share	$ 0
Revision of Prior Period, Adjustment | Discontinued Operations
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 6,608	$ 4,920
Basic earnings per share	$ 0.15
Diluted earnings per share	$ 0.15