Citizens Property Insurance Corporation PERSONAL AND COMMERCIAL LINES ACCOUNTS SELECTED FINANCIAL INFORMATION STATUTORY ACCOUNTING PRINCIPLES

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1 PERSONAL AND COMMERCIAL LINES ACCOUNTS SELECTED FINANCIAL INFORMATION STATUTORY ACCOUNTING PRINCIPLES Years Ended December 31, (In Thousands Unaudited) Statement of Admitted Assets, Liabilities and Accumulated Surplus: Admitted Assets: Cash and short term investments $339,660 $538,604 $350,124 $560,327 $566,472 Bonds $5,539,057 5,489,420 6,126,078 6,290,572 6,323,158 Investment income due and accrued 34,610 28,621 29,760 30,522 30,743 Interaccount receivable (payable) 16,712 22, ,743 28, Due from investment broker 0 5,829 0 Assessments receivable 1,689 3,084 4,965 12,430 19,755 Reinsurance recoverable 1,094 2, ,108 12,015 Deferred income taxes 0 Other assets (1) 43,491 69,558 72,977 99, ,160 Total admitted assets $5,976,313 $6,160,149 $6,761,203 $7,023,169 $7,133,911 Liabilities and membersʹ surplus: Liabilities: Loss Reserves $400,112 $440,054 $644,599 $831,555 $987,256 Loss adjustment expenses 173, , , , ,042 Unearned premiums (net of unearned ceded) 238, , , , ,978 Unearned assessment income 0 Due to investment broker 0 5,507 7,758 Accounts payable and other liabilities (2) 81,160 89,777 96, , ,929 Interest payable 3,743 4,260 4,784 4,787 7,439 Notes payable (net of discount) 938,548 1,079,205 1,372,447 1,391,543 1,611,716 Taxes and fees payable , Total liabilities 1,836,047 2,045,856 2,714,206 3,217,424 3,781,666 Accumulated Surplus (Deficit) Restricted Unrestricted Total Accumulated Surplus (Deficit) 4,140,266 4,114,293 4,046,997 3,805,745 3,352,245 Total liabilities and accumulated surplus $5,976,313 $6,160,149 $6,761,203 $7,023,169 $7,133,911 (1) In 2016, consists of premiums receivable, other receivables under reinsurance contracts, taxes and fees receivable, and other admitted assets. (2) In 2016, consists of advance premiums and suspended cash, reinsurance payable, and other liabilities. Source: Citizens Property Insurance Corporation The amounts reported above should be read in conjunction with Citizensʹ Audited Financial Statements PERSONAL AND COMMERCIAL LINES ACCOUNTS SELECTED FINANCIAL INFORMATION STATUTORY ACCOUNTING PRINCIPLES Years Ended December 31 (In Thousands Unaudited) Statement of Operations Data: PREMIUMS Premiums earned $554,329 $842,553 $1,307,450 $1,755,196 $1,942,089 Reinsurance ceded (116,267) (316,272) (405,845) (450,290) (332,827) Premiums earned (net) 438, , ,605 1,304,906 1,609,262 LOSSES AND EXPENSES INCURRED: Losses incurred, net of reinsurance 258, , , , ,260 Loss adjustment expenses income 116,072 59, , , ,249 Other underwriting expenses incurred (3) 125, , , , ,231 Total losses and expenses incurred 500, , , ,937 1,247,740 UNDERWRITING (LOSS) INCOME (62,048) 9, , , ,522 Net investment income 117,335 85,727 85,669 57,876 86,587 Interest expense, net (31,843) (35,470) (38,286) (39,373) (21,431) LOC fees & notes issued cost (8,397) (8,333) Assessment income 17,069 1, ,292 5,741 Takeout bonus expense (net) and other income (expenses) Gain (Loss) before federal income taxes 25,093 60, , , ,155 Income taxes NET (LOSS) INCOME: 25,093 60, , , ,155 Surplus (deficit), beginning of period 4,114,293 4,046,997 3,805,748 3,352,245 2,901,919 Prior Period adjustment Assessments (net of distributions) Additional pension liability Change in other comprehensive income 228 (12) Change in non admitted assets 652 7,168 7,069 11,178 8,698 Surplus (deficit), end of period $4,140,266 $4,114,293 $4,046,997 $3,805,748 $3,352,244 (3) In 2016, consists of producer commissions (net), taxes and fees, administrative expenses, and other underwriting expenses. Source: Citizens Property Insurance Corporation The amounts reported above should be read in conjunction with Citizensʹ Audited Financial Statements

2 PERSONAL AND COMMERCIAL LINES ACCOUNTS SELECTED FINANCIAL INFORMATION GENERALLY ACCEPTED ACCOUNTING PRINCIPLES Year Ended December 31, (In Thousands Unaudited) ASSETS: Cash and cash equivalents $137,653 $479,466 ($64,648) $497,837 $464,388 Short and long term investments 5,682,266 5,545,776 6,565,722 6,388,374 6,511,426 Investment income due and accrued 34,610 28,621 29,760 30,523 30,743 Deferred policy acquisition costs 60,256 85,699 Deferred financing costs 3,706 6,943 Premiums receivable and other assets (1) 75, , , , ,046 Total Assets 5,929,569 6,215,932 6,978,543 7,288,518 7,450,245 LIABILITIES AND NET ASSETS Loss reserves 400, , , , ,256 Loss adjustment expense reserves 173, , , , ,042 Unearned premiums 238, , , , ,660 Unearned assessment income Long term debt 938,548 1,079,205 1,372,447 1,372,447 1,611,716 Other Liabilities (2) 81,156 97, , , ,986 Taxes and fees payable ,297 5,306 Interest payable 3,743 4,260 4,784 4,787 7,439 Total liabilities 1,836,458 2,093,050 2,897,008 3,374,749 3,919,405 NET ASSETS: Invested in Capital Assets 8,064 10,121 8,079 12,362 Restricted Unrestricted net assets 4,085,047 4,112,761 4,073,456 3,901,407 3,530,840 Total Net Assets 4,093,111 4,122,882 4,081,535 3,913,769 3,530,840 Total liabilities and net assets (deficit) 5,929,569 6,215,932 6,978,543 7,288,518 7,450,245 (1) In 2016, consists of premiums receivable from assuming companies, reinsurance recoverable on paid losses and LAE, capital assets, other assets, and inter account receivable (payable). (2) In 2016, consists of advance premiums and suspended cash, reinsurance premiums payable, and other current liabilities Source: Citizens Property Insurance Corporation The amounts reported above should be read in conjunction with Citizensʹ Audited Financial Statements Citizens Property Insurance Corporation PERSONAL AND COMMERCIAL LINES ACCOUNTS SELECTED FINANCIAL INFORMATION GENERALLY ACCEPTED ACCOUNTING PRINCIPLES Year Ended December 31 (In Thousands Unaudited) REVENUES: Premiums Earned $554,329 $842,553 $1,307,450 $1,755,196 $1,942,089 Less premiums ceded 116, , , , ,827 Premiums earned (net) 438, , ,605 1,304,906 1,609,262 Net investment income 61,531 63,904 81,232 39, ,940 Assessment Income 1,394 1,149 3,576 9,260 Total revenues 500, , ,413 1,353,255 1,729,202 EXPENSES: Losses incurred 258, , , , ,260 Loss adjustment expenses incurred 116,072 59, , , , , , , , ,206 Policy acquisition & other underwriting expenses (1) Interest expense 31,843 35,470 38,286 39,373 17,557 Total expenses 530, , , ,184 1,267,272 Change in net assets (deficit) (29,787) 41, , , ,930 Net income ($29,787) $41,347 $233,113 $382,929 $461,930 (1) In 2016, consists of producer commissions (net), taxes and fees, other underwriting expenses, administrative expenses, and other income Source: Citizens Property Insurance Corporation The amounts reported above should be read in conjunction with Citizensʹ Audited Financial Statements

3 Reconciliation of SAP to GAAP for PLA/CLA (in thousands) 31 Dec Dec Dec Dec Dec 12 Net income Statutory basis 25,093 60, , ,228 $441,156 Adjustments: Policy acquisition costs (25,443) (1,975) Line of credit fees & note issuance costs (1,852) 6,943 Other financing costs Takeout Bonuses Change in allowance for doubtful accounts 470 1,881 (206) 679 (478) Change in unearned assessment income Change in 2012 FIGA Assessment income 1,395 1,149 3,576 9,260 (17,069) Change in unrealized gain (loss) on investments (55,805) (21,823) (4,437) (41,942) 33,352 Change in net assets GAAP basis $29,787 $41,347 $233,113 $382,930 $461,929 Accumulated surplus (deficit) Statutory basis $4,140,266 $4,114,293 $4,046,997 $3,805,746 $3,352,245 Adjustments: Policy acquisition costs 60,256 85,699 Nonadmitted assets, net 13,333 14,453 19,205 25,172 35,672 Line of credit fee and note issuance costs 5,091 6,943 Takeout bonuses Other financing costs Unearned assessment income change GAAP 2012 FIGA Assessment receivable (1,689) (3,084) (4,233) (7,809) (17,069) Provision for Reinsurance Sch. F. Penalty 537 1,847 1,942 Cumulated unrealized (loss) gain on (58,799) (2,780) 19,029 23,466 65,407 investments Total (deficit) net assets GAAP basis $4,093,111 $4,122,882 $4,081,535 $3,913,769 $3,530,839

4 Citizensʹ Personal Lines Account and Commercial Lines Account Liquidity Sources 2017 Liquidity Sources (in millions) Year End 2016 Statutory Surplus $4,140 Projected 2017 Net Income (based on 2017 Budget) 64 Total Internally Funded Liquidity Sources $4,076 Series 2012A Pre Event Bonds Externally Funded Liquidity $770 Total Liquidity Resources $4,846

5 Historical Personal Lines Account and Commercial Lines Account Adjusted GAAP Surplu Fiscal Year Ended Adjusted GAAP Surplus December 31, (in millions) 2016 $4, $4, $4, $3, $3, $3, $2, $2,589.2

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7 Adjusted GAAP for PLA (in thousands) 31 Dec Dec Dec Dec Dec 12 Retained surplus GAAP basis $2,420,129 $2,485,885 $2,520,364 $2,425,626 $2,150,026 Deferred financing costs (4,567) (6,202) Restricted cash FSLSO account Unamortized take out bonuses Net assets related to pre event notes (2,690) (32,060) (56,266) (45,356) (88,295) Adjusted Surplus $2,417,439 $2,453,825 $2,464,098 $2,375,703 $2,055,529 Adjusted GAAP for CLA (in thousands) 31 Dec Dec Dec Dec Dec 12 Retained surplus GAAP basis $1,672,981 $1,636,998 $1,561,171 $1,488,143 $1,380,814 Deferred financing costs (524) (742) Restricted cash FSLSO account Unamortized take out bonuses Net assets related to pre event notes (425) (5,698) (7,724) (6,096) (2,049) Adjusted Surplus $1,672,556 $1,631,300 $1,553,447 $1,481,523 $1,378,023

8 Market Share (1) of Citizens Property Insurance Corporation For Residential Policies that Include Wind Coverage Market Share Based on Total Insured Value 20% 15% 9% 6% 5% Based on Premium 26% 20% 13% 9% 8% Notes: (1) Market share calculations are based on residential property exposure and premium for policies that include wind coverage for admitted carriers as reported to the Florida Office of Insurance Regulation via QUASR in a data extract provided to CPIC as of March 14, Any submissions/changes made to QUASR after this date are not reflected in these numbers. Surplus lines carriers are not included in this calculation. QUASR data cannot be separated by CPIC account. (2) The decrease in Citizensʹ Market Share in 2013 through 2016 is consistent with reductions in exposure due to depopulation, Clearinghouse, and Coastal Commercial Residential policies moving to the private/surplus lines markets outside the depopulation process. (3) State Farm Florida filed QUASR data as ʺtrade secretʺ with the Florida Office of Insurance Regulation beginning first quarter In this analysis, State Farm Floridaʹs 4th quarter 2013 reported data was used as a proxy for 4th quarter 2014, 2015, and 2016 values.

9 Number of Policies Tagged for Depopulation(1) Year Personal Lines Account Commercial Lines Account , ,144 1, ,167 2, , , , , , , (1) Tagged for Depopulation counts do not account for any opt out policies reported after the assumption date

10 PLA/CLA Investments As of Investments Bond Proceeds Amounts (in millions) Tax Exempt Money Market Funds $ 183 Tax Exempt Fixed Rate Municipal Bonds 743 Tax Exempt VRDNʹs Municipal Bonds 28 Total Pre Event Bond Proceeds (1) $ 954 Operating Funds Money Market Funds $ 229 Corporate Bonds, Commercial Paper and CDʹs 2,856 Treasury & Agency Securities 1,662 Municipals 156 Asset Backed Auto Loans 57 Legacy Assets 16 Total Operating Funds $ 4,976 Total Invested Assets $ 5,930 (1) On June 1st 2017, $130 million of Series 2012A PLA/CLA bonds matured.

11 As of May 31, 2017, the in force policies and exposure for each category of business are as follows: Policies Total Premium Account Product Line Inforce Exposure with Surch PLA Personal Residential Multi Peril (PR M) 295,734 57,223,224, ,559,999 Subtotal 295,734 57,223,224, ,559,999 CLA Commercial Residential Multi Peril (CR M) 1,184 5,810,165,007 23,557,993 CLA Commercial Non Residential Multi Peril (CNR M) ,767,680 2,768,308 Subtotal 1,619 6,288,932,687 26,326,301 Total 297,353 63,512,156, ,886,300

12 Total PLA Policies in Force, DWP and Total Insured Value Total CLA Policies in Force, DWP and Total Insured Value DWP Total Insured DWP Total Insured Period Ending Total Policiesin Force Value Period Ending Total Policies Value 31 Dec (in millions) (in millions) 31 Dec in Force (in millions) (in millions) ,118 $471 $55, ,891 $37 $8, ,902 $554 $55, ,121 $63 $12, ,617 $918 $66, ,681 $163 $20, ,391 $1,395 $115, ,615 $192 $37, ,502 $1,749 $184, ,146 $201 $39, ,003,856 $1,694 $241, ,374 $202 $40, ,406 $1,276 $186, ,453 $213 $43, ,652 $918 $122, ,126 $232 $51, ,467 $1,239 $126, ,570 $363 $54, ,857 $1,840 $184, ,911 $566 $77,316

13 Market Share (1) of Citizens Property Insurance Corporation Relative to Other Florida Insurers (2) For Policies that Include Wind Coverage Company Name (2) Market Share as of Dec. 31, 2016 by Total Insured Value by Premium State Farm Florida Insurance Company (3) 7% 6% Universal Property & Casualty Insurance Company 6% 8% Citizens Property Insurance Corporation 5% 8% Federated National Insurance Company 5% 5% Heritage Property & Casualty Insurance Company 4% 5% Notes: (1) Market share calculations are based on residential property exposure and premium for policies that include wind coverage for admitted carriers as reported to the Florida Office of Insurance Regulation via QUASR in a data extract provided to CPIC as of March 14, Any submissions/changes made to QUASR after this date are not reflected in these numbers. Surplus lines carriers are not included in this calculation. QUASR data cannot be separated by CPIC account. (2) Companyʹs listed are the top five based on total insured value (3) State Farm Florida filed QUASR data as ʺtrade secretʺ with the Florida Office of Insurance Regulation beginning first quarter In this analysis, State Farm Floridaʹs 4th quarter 2013 reported data was used as a proxy for 4th quarter 2016 values.

14 PLA/CLA Probable Maximum Losses as of December 31, 2016 (1) Estimated Average Single Event ʺPMLʺ Return Period (billions) 250 years $ years $ years $ years $ years $0.239 (1) PMLs are based on modeled losses as of December 31, 2016 per AIR Touchstone, Version 4.0 reflecting the Standard Sea Surface Temperature (SSST) Event Catalog including Demand Surge, excluding Storm Surge

15 PLA/CLA Emergency Assessment Base Emergency Assessment Base Year (millions) 2016 Emergency Assessment Base/2015 DWP $43, Emergency Assessment Base/2014 DWP $41, Emergency Assessment Base/2013 DWP $39, Emergency Assessment Base/2012 DWP $37, Emergency Assessment Base/2011 DWP $36, Emergency Assessment Base/2010 DWP $32, Emergency Assessment Base/2009 DWP $33, Emergency Assessment Base/2008 DWP $34, Emergency Assessment Base/2007 DWP $36, Emergency Assessment Base/2006 DWP $37, Emergency Assessment Base/2005 DWP $11, Emergency Assessment Base/2004 DWP $9, from SBA bonding capacity report 2017, pg 53 and whole dollar amounts provided by our Financial Advisor Raymond James

16 FHCF Attachment Points and Potential Reimbursement Potential Statewide Aggregate PLA/CLA Accounts Reimbursement to Contract Year ending Attachment Point (in Attachment Point (in PLA/CLA Accounts May 31 billions) billions) from FHCF (in billions)