Investor Briefing. FY18 Q4 Results. Reported February 28, 2019

Similar documents
Fourth Quarter 2018 Results

NASDAQ: FNHC. May 2015

NASDAQ: FNHC. December 2014

FEDERATED NATIONAL HOLDING COMPANY (Exact name of registrant as specified in its charter)

FEDERATED NATIONAL HOLDING COMPANY (Exact name of registrant as specified in its charter)

FedNat Holding Company (NASDAQ: FNHC) Investor Update December 4, 2018

The Hanover Insurance Group

Investor Presentation March 2018

Creating a Super Regional Personal Lines Carrier Acquisition of Narragansett Bay Insurance. August 2017

FedNat Holding Company (NASDAQ: FNHC) Investor Update August 27, 2018

Investor Presentation (NYSE: HRTG) January 2019

Corporate Overview. April 2017

The Hartford Financial Services Group, Inc. October 23, 2017 The Hartford to Acquire Aetna s U. S. Group Life and Disability Business

FedNat Holding Company (NASDAQ: FNHC) Investor Update March 18, 2019

Maiden Holdings, Ltd. Investor Presentation March 2015

2016 AmTrust Financial Conference

Corporate Presentation August 2013 NYSE:HCI

The Hanover Insurance Group, Inc.

Maiden Holdings, Ltd. Investor Presentation June 2015

KEEFE, BRUYETTE & WOODS 2011 INSURANCE CONFERENCE SEPTEMBER 7, 2011

The Acquisition of Regions Insurance Group. April 6, 2018

Maiden Holdings, Ltd.

The Hartford Financial Services Group, Inc. February 4, 2019

SPECIALTY PROPERTY & CASUALTY INSURANCE SOLUTIONS. Investor Presentation

INVESTOR PRESENTATION Q NASDAQ: FNHC

Maiden Holdings, Ltd. Investor Presentation September 2015

Maiden Holdings, Ltd. Investor Presentation March 2014

Investor Presentation (NYSE: HRTG) Fourth Quarter 2018

AIG Acquisition of Validus Holdings: A Step Forward in AIG s Profitable Growth Strategy. Investor Presentation January 22, 2018

Selective Insurance Group, Inc. Bank of America Merrill Lynch Insurance Conference. February 24, Forward Looking Statement

Corporate Presentation

Corporate Presentation

STATE OF THE LINE REPORT

Investor Presentation

Bank of America Merrill Lynch Insurance Conference. The Hanover Insurance Group (THG) February 14, 2013

Third Quarter 2017 Financial Results. May 13, First Quarter Conference Call

Investor Presentation June 2018

Maiden Holdings, Ltd. Investor Presentation May & June 2014

SELECTIVE INSURANCE GROUP, INC.

Barclay s: Insurance Forum May 16, 2017

The Hanover Insurance Group, Inc.

AmTrust Financial. KBW Insurance Conference. September 8, 2010

Financial and operating results for the period ended June 30, 2016

FEDERATED NATIONAL (NASDAQ: FNHC) 22ND ANNUAL CFANY INSURANCE INDUSTRY CONFERENCE. March 19, 2018

INVESTOR Presentation

FBM 4Q17 Earnings Presentation

INVESTOR Presentation

Fourth Quarter 2017 And Full Year 2017 Financial Results And 2018 Key Business Metrics Outlook

The Hartford Financial Services Group, Inc. July 27, 2015 SECOND QUARTER 2015 FINANCIAL RESULTS PRESENTATION

Investor Presentation September 2016

AXIS Capital. Keefe, Bruyette and Woods 2009 Insurance Conference New York, NY. David Greenfield, CFO

Corporate Presentation

Service First. Safety Always. Gabelli & Company Waste Symposium March 2018

Sidoti s Seventeenth Annual Emerging Growth Conference. March 18, 2013

The Allstate Corporation. Bank of America Merrill Lynch Insurance Conference Thomas J. Wilson, Chairman and Chief Executive Officer February 14, 2018

2Q18 Financial and operating results for the period ended June 30, 2018

Driving Profitable Growth

NASDAQ 38th Investor Conference

American International Group, Inc. Second Quarter 2013 Results Conference Call Presentation. August 2, 2013

Hoops and Hurdles. The InsurTech Road to Market. Steve Walsh MAY 2018

2016 Bank of America Merrill Lynch Insurance Conference

March, Employers Holdings, Inc. Investor Presentation

UNIVERSAL INSURANCE HOLDINGS, INC. (Exact name of registrant as specified in its charter)

Selective Insurance Group, Inc.

CARS.COM. First Quarter 2018 Earnings May 9, 2018

The Allstate Corporation. Deutsche Bank Global Financial Services Conference Thomas J. Wilson, Chairman and Chief Executive Officer May 30, 2017

Selective Insurance Group, Inc.

Second Quarter Highlights

Third Quarter Highlights

Q4 AND FULL-YEAR 2017 INVESTOR PRESENTATION. February 23, 2018

Its inclusion in this document is not intended to be an update or reaffirmation of the forward-looking information as of any later date.

Q Investor Presentation. May 10, 2017

Merrill Lynch Insurance Investor Conference

The Hartford Financial Services Group, Inc. May 2016 Overview of The Hartford

Potential Impact of Proposed 2011 Standard Reinsurance Agreement

Lehman Brothers 2007 Global Healthcare Conference March 20, Ronald A. Williams Chairman, CEO and President

Morgan Stanley Financials Conference The Hanover Insurance Group (THG) June 2015

Fourth Quarter and Full Year Highlights

Successful Execution of Business Transformation Driving Sustainable Growth. CL King 15 th Annual Best Ideas Conference 2017 September 14, 2017

FBR Fall Capital Markets Investor Conference. December 2, 2009

The Hartford Financial Services Group, Inc. November 2017 Overview of The Hartford

Update Belinda Miller Acting General Counsel

Financial and operating results for the period ended March 31, 2016

The Hartford Financial Services Group, Inc. May 2018 Investor Overview of The Hartford

Fall 2018 Investor Briefing

WILLIS GROUP HOLDINGS FACT BOOK FOR THE QUARTER ENDED JUNE 30, 2010

The Hartford Financial Services Group, Inc. April 26, 2018 First Quarter 2018 Financial Results Presentation

Q INVESTOR PRESENTATION. May 4, 2018

Corporate Presentation

State of the Line AIS AIS th Anniversary th Anniversary. Copyright 2018 NCCI Holdings, Inc. All Rights Reserved.

OneBeacon Insurance Group, Ltd. Investor Financial Supplement. December 31, 2006

INVESTOR PRESENTATION

Aspen Insurance Holdings Limited

American Financial Group, Inc.

First American Financial KBW Mortgage Finance & Asset Management Conference June 1, 2017

Co-operators General Insurance Company. Management s Discussion and Analysis

J.P Morgan Fixed Income Conference. March 2004

RLI TRANSPORTATION A Division of RLI Insurance Company 2970 Clairmont Road, Suite 1000 Atlanta, GA Phone: Fax:

Banc of America Securities Financial Guarantor Conference Presentation November 27, 2007

Delivering Significant Growth. Investor Update May 7, 2018

Transcription:

Investor Briefing FY18 Q4 Results Reported February 28, 2019 1

Forwardlooking statements and Regulation G Disclosure Statement Forwardlooking statements This presentation may contain "forwardlooking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," and similar expressions identify forwardlooking statements, which speak only as of the date the statement was made. Such statements may include commentary on plans, products and lines of business, marketing arrangements, reinsurance programs and other business developments and assumptions relating to the foregoing. Forwardlooking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future results could differ materially from those described, and the Company disclaims any intention or obligation to update or revise any forwardlooking statements, whether as a result of new information, future events, or otherwise. For further information regarding risk factors that could affect the Company's operations and future results, refer to the Company's reports filed with the Securities and Exchange Commission, including the Company s Annual Report on Form 10K to be filed for the fiscal year ended December 31, 2018. Regulation G Disclosure Statement This presentation includes financial results with respect to adjusted operating income, and adjusted earnings per share, which are nongaap financial measures as defined by the SEC s Regulation G. NonGAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for the Company's financial results prepared in accordance with GAAP. Reconciliations of such nongaap financial measures in this presentation to the most comparable GAAP financial measures can be found in the Company s earnings release for the fourth quarter and full year of 2018, filed with the SEC as an exhibit to a Current Report on Form 8K on March 1, 2019, and also available on the Company s website at https://universalinsuranceholdings.com under Investors with the subheading of Earnings Releases. 2

Universal Insurance Holdings (UVE) Overview Doing business Licensed Leading holding company of personal residential homeowners insurance and services $1B+ #1 MN NH FY18 Direct Premium Written Bestinclass Return on Equity (5yr Average) NY MA IA IL IN MI WV PA VA NJ DE MD 17 States actively doing business >800K Customer policies managed AL GA SC NC 700+ 9,000+ Full time equivalent employees Independent agents in the distribution channel HI FL Ft. Lauderdale, FL Headquarters A Exceptional Demotech financial stability rating 3

Financial Overview Underwriting Services Investments 900.0 ($million) 190.0% 768.4 ($million) ($million) 2,000 800.0 49.9 50.0 688.8 47.1 170.0% 20.0 700.0 632.4 41.0 600.0 500.0 400.0 Net Premium 300.0 Earned 200.0 Combined Ratio 100.0 326.9 504.0 73.5% 73.5% 82.5% 84.4% 87.3% 150.0% 130.0% 110.0% 90.0% 70.0% 60.0 40.0 Revenue 30.0 Policies 20.0 serviced (thousands InForce) 10.0 34.4 556 36.3 625 683 765 829 1,500 1,000 500 25.0 15.0 Net 10.0 investment income and realized 5.0 gains* 8.0 6.2 11.8 16.0 22.7 50.0% FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Combined ratio driven by Hurricane Matthew, Irma, Florence & Michael Protection Solutions: Insurance for personal residential homeowners, renters/tenants, condo unit owners, dwelling/fire, allied lines, other structures, personal property, liability and articles coverages, in addition to commercial residential multiperil. Claims Management: Claims processing and adjustment from claim inception to conclusion Risk Management: Advises on actuarial analysis, distribution, claims payment and policy administration, underwriting and reinsurance negotiations. Distribution: Markets and sells insurance products through independent agents and directtoconsumer online distribution platforms. Fixed Income: Focused on preservation of capital and liquidity for claims payments Equity Securities and Real Estate: Seeks capital appreciation and diversification *Excludes net unrealized gains and losses on investments. 4

Organized around protection and insurance systems capabilities Protection solutions Assurance Systems OAK90 (Formerly Universal Risk Advisors) (Formerly known as Universal Adjusting) (Formerly known as Universal Inspection) 5

with an endmarket focus across the insurance value chain Policy administration / Products Pricing / Underwriting Distribution Claims back office Risk Management (in partnership with Blue Atlantic) Independent Agents (in partnership with Evolution) Insurance offerings Product specifications Actuarial analysis / Risk selection Inspection Customer experience / Channel management Directtoconsumer Sales and Marketing Policy execution Quotes / binding / issuing / renewals Payments & Collections Claims management Risk / Catastrophe assessment Reinsurance programs Actuarial analysis 6

Improving customer experience through digital transformation Revitalized UVE brand and launched all new Investor website. Refreshed Universal Property brand; New online presence to get a quote, bind a policy, download policy docs, and track a claim. New online presence to get a quote, bind a policy, download policy docs, and track a claim. Launching our new digital insurance distribution channel Clovered.com. Enables consumers to learn how to Prepare, Protect, and Recover from the unexpected. Will be enabled in 2019 with a new streamlined process to purchase a policy online. Established as a subsidiary of our new holding company Oak90, to maintain autonomy. 7

Proven track record Bestinclass Return on Average Equity (ROE) Book value growth 35.0% 31.9% 80% 600.0 ($million) 0.8 70% 501.6 0.7 30.0% 500.0 0.6 60% 25.0% 50% 400.0 0.5 20.0% 40% 0.4 300.0 15.0% 30% 199.9 25.9% CAGR 0.3 20% 200.0 0.2 10.0% 10% 0.1 100.0 5.0% 0% 0 0.0% 10% 0.1 UVE 5Year Average FY14 FY18 8

backed by the strength of our employees and agents Average Talent Other Marketing & Online Distribution Underwriting & Risk Management Claims UVE Tenure 7.0+ YRS Talent Management (Core Underwriting Specialists & Risk Management) 150YRS Combined Reinsurance Experience 500+ YRS Combined Claims Experience (Department Management) Independent agent distribution channel (thousands of agencies) 10.0 9.0 7.8 8.6 8.8 9.3 8.0 7.0 6.0 5.0 Other States4.0 3.0 2.0 1.0 Florida 1.7 2.0 2.6 3.2 3.7 4.5 5.3 5.9 Service Strong partner relationships Quality customer advocates Training Inhouse and third party best practices training Technologyenabled point of sale tools Compensation Attractive commission and performance based incentives CY 07' 08' 09' 10' 11' 12' 13' 14' 15' 16' 17' 18' 9

Large and growing Homeowners Multiperil (MP) insurance opportunity P&C Industry Homeowners MP Direct Premium Written (U.S & territories & Canada Homeowners MultiPeril) Opportunistic expansion ($billion) 100.0 90.0 Total 80.0 81.9 86.8 89.2 91.5 94.3 CY13CY17 CAGR 3.6% 65.0% Price Focus on rate adequate markets and positioning for market dislocation events Customer Experience 70.0 60.0 FL as a % of Addressable 50.0 46.4% 40.7% 55.0% 45.0% Leveraging domain expertise in CATexposed conditions to provide seamless experience across the insurance value chain 40.0 30.0 20.0 Geographically Addressable 10.0 18.9 21.4 34.5 25.4% 43.1 Geographic expansion 45.1 20.4% 20.3% 24.3% 35.0% 25.0% Diversification Provide earnings stability and reinsurance pricing benefits from risk profile improvements Writing business in 10 out of the largest 15 states in America* 15.0% CY13 CY14 CY15 CY16 CY17 *Measured by Homeowners MP Direct Premium Written 2017. Not currently writing in TX, CA, IL, OH, CO from the top15 10

Strategic priorities Strengthening the foundation Core franchises 1 Make customer service and continuous improvement a wayoflife 2 Focus on disciplined growth Protection Solutions Distribution 3 Maintain a strong balance sheet 4 Maximize earnings stability Risk Management Claims Management 11

Underwriting 12

Overview of insurance offerings Homeowners coverage Form Type Products offered Carrier HO2 Broad Form (named perils only) Coverage A Dwelling, attached structures (e.g., garages, decks) Coverage B Other structures (e.g., detached garage, shed, fence) Homeowners HO3 Special Form (Most common) HO5 Comprehensive Form HO8 Older Home Form HO6 Condo Form (individual condo unit owner) Condo HO4 Renters Form (tenant occupant) Renters DP1 Named peril only rental or investment property DP2 Named perils only more comprehensive Coverage F Medical Payments (medical payments for others) Coverage C Personal Property (e.g., clothing, furniture) Landlords DP3 Open Peril policies HO3 Special Form (Property values in excess of $1M) Coverage E Personal Liability (Others property damage and bodily injury) Coverage D Loss of Use (e.g., access to your dwelling) Homeowners Commercial Residential CP10 Business & Personal Property Form (e.g., HOA s, Apartments) CP17 Condo Property Form 13

Underwriting overview (thousands) 1,200.0 1,000.0 800.0 600.0 400.0 Other States 200.0 % of Total Policiesinforce 556.3 624.7 682.9 764.5 828.7 9% 12% 15% 19% 23% 70% 60% 50% 40% 30% 20% 10% 0% FY14 FY18 CAGR +10.5% Industry trends Rate improvement in higher exposure areas and interest rate improvements provide tailwinds Technologyenabled innovation improving intelligence ($million) 1,400 1,200 1,000 800 600 400 Other States 200 % of Total Inforce premium 1,058 794 887 956 6% 7% 10% 12% 1,193 15% 40% 35% 30% 25% 20% 15% 10% 5% 0% +10.7% NEUTRAL Ample reinsurance capacity through traditional and alternative programs State / Federal regulation uncertainty on Assignment of Benefits (AOB) ($million) 250,000 200,000 150,000 100,000 12% 50,000 Other States % of Total Total Insured Value (TIV) 198,397 170,037 151,977 131,124 26% 21% 16% 228,707 32% 70% 60% 50% 40% 30% 20% 10% 0% +14.9% Assignment of benefits driving pockets of increased consumer prices Uncertainty in reinsurance catastrophe pricing levels based on active prior years FY14 FY15 FY16 FY17 FY18 14

UVE organically grew into #1 in FL FL Direct premium written growth led to #1 homeowner provider in FL ($million) 2017 Homeowners MP FL segment* UVE 9% State Farm 1,400 0.8 Tower Hill 1,191 0.7 Other Citizens 1,200 1,000 800 600 Other States Florida all lines 400 511 511 563 557 666 653 721 705 780 784 790 758 750 744 883 818 955 861 1,056 924 1,013 0.6 0.5 0.4 0.3 0.2 FedNat Heritage USAA United Security First Progressive 2018 UVE FL Homeowners MP by product Other 1% Landlords 7% Condo 22% 0.1 200 0 Homeowners 70% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 0.1 *Excludes Fire and Allied lines as defined by S&P Global Market Intelligence. 15

Leverage domain expertise in FL for geographic diversification and opportunistically offer or partner on complementary lines Geographic Expansion Commenced writing in DE Commenced writing in MI, AL, VA Commenced writing in NH Commenced writing in SC, HI, NC, GA, MA, MD Commenced writing in IN, PA, MN Commenced writing in NJ & NY Prior to FY13 FY14 FY15 FY16 FY17 FY18 & beyond Launched Commercial residential program through American Platinum Flood partners E&S homeowners partners Auto partners Opportunistically evaluate complementary lines Complementary lines expansion (offerings / partners) 16

Solid performance Revenue (Direct and net premiums) Consolidated GAAP Combined Ratio (Related expense / Net premium earned) ($million) 1,400.0 FY14 FY18 CAGR 1 100.0% 0.95 Direct Premium Written 1,200.0 1,000.0 800.0 600.0 400.0 789.6 883.4 504.0 954.6 632.4 1,055.9 688.8 1,190.9 768.4 0.9 0.85 0.8 0.75 0.7 0.65 0.6 0.55 0.5 0.45 0.4 0.35 0.3 +10.8% +23.8% Combined Ratio Expense Ratio Loss & LAE Ratio 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 73.5% 73.5% 35.8% 36.3% 37.7% 37.2% 82.5% 34.9% 47.6% 84.4% 87.3% 33.4% 33.5% 53.9% 50.9% Increase due to catastrophic events (Hurricane Matthew, Irma, Florence & Michael) 0.25 Net Premium Earned (Net of ceded premium earned) 200.0 326.9 0.2 0.15 0.1 20.0% 10.0% 0.05 0 0.0% FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Direct Premium Earned 777.3 836.8 921.2 999.2 1,121.6 Ceded Premium earned as % of Direct Premium Earned* 57.9% 39.8% 31.4% 31.1% 29.7% *Excludes reinstatement premium 17

Strong balance sheet supported by robust reinsurance program ( All States) 1 st Event coverage in excess of $3.1B Open market CAT contracts $3,146M $3,069M 100% of $140M xs $898M* $2,437M SingleYear 48% MultiYear Est. Mandatory FHCF 90% of $2,342M xs $727M (Florida only) 100% of $218M xs $680M* 2 nd Event 3 rd Event 4 th Event Single year contracts (1 reinstatement) $727M $680M $635M $529M $445M 65% of $45M xs $635M* 65% of $106M xs $529M* 35% $106M xs $529M* 68.33% of $55M xs $35M (1@100%) (All States) RPP for 65% UPCICof $84M xs $445M MultiYear* (placed through May 31, 2019) 35% of $45M xs $635M* 35% of $84M xs $445M* Open Market CAT & FHCF Open Market CAT & FHCF Open Market CAT & FHCF Florida Hurricane CAT Fund (FHCF) Single year contracts 1 reinstatement w/ reinstatement premium protection (RPP) MultiYear Contracts (1 reinstatement w/ RPP) $111M $90M $35M 19.5% of $334M xs $111M 22.5% of $334M xs $111M 59% of $76M xs $35M Net Retention $35M 58% of $355M xs $90M 21% of $55M xs $35M 20% of $55M xs $35M Net Retention $35M Dedicated 3 rd Event Coverage $76M xs $35M (1@100%) Net Retention $35M Dedicated 4 th Event Coverage $76M xs $35M Net Retention $35M xs Net UVE Retention = in excess * Layer cascades to $111M Note: June, 1, 2018 reinsurance program 18

Strong balance sheet supported by robust reinsurance program ( Other States) Open market CAT contracts 1 st Event coverage in excess of $1B 2 nd Event 3 rd Event 4 th Event SingleYear 46% MultiYear $1,038M $898M 100% of $140M xs $898M* 100% of $218M xs $680M* $680M $635M $529M 65% of $45M xs $635M* 65% of $106M xs $529M* 35% of $45M xs $635M* 35% $106M xs $529M* Open Market CAT Open Market CAT Open Market CAT Single year contracts All States (1 reinstatement) $445M 65% of $84M xs $445M* 35% of $84M xs $445M* Single year contracts All States 1 reinstatement w/ reinstatement premium protection (RPP) 19.5% of $334M xs $111M 22.5% of $334M xs $111M 58% of $355M xs $90M Dedicated 3 rd Event $76M xs $35M (1@100%) 4th Event $55M xs $35M Dedicated 4 th Event $76M xs $35M MultiYear Contracts All States (1 reinstatement w/ RPP) $111M $90M $35M 59% of $76M xs $35M* 21% of $55M xs $35M 100% of $15M xs $20M** 100% of $10M xs $10M** 20% of $55M xs $35M $15M xs $20M $10M xs $10M $5M xs $5M Net Retention $5M Available coverage in the 3 rd event depends on the extent of the first two events Available coverage in the 4 th event depends on the extent of the first three events Net Retention $5M Net Retention $5M Single year contracts NonFL (1 reinstatement w/ RPP) Net UVE Retention * Layer cascades to $111M 100% of $5M xs $5M Net Retention $5M $4M xs $1M xs $6M OTHERWISE RECOVERABLE 2 nd Event/3 rd Event/4 th Event/5 th Event xs = in excess ** Layer cascades to $5M Note: June, 1, 2018 reinsurance program 19

Strong balance sheet supported by robust reinsurance program ( ) Coverage in excess of $36M Property and liability per risk Open market CAT contracts $36.8M $31.8M $5.0M xs $13.2M* Property Catastrophe $5.0M xs $8.2M* Property Liability SingleYear 100% $27.1M $24.4M Est. Mandatory FHCF 90% of $20.7M xs $6.4M $2.0M xs $6.2M* $9.0M Property Per Risk XOL $6M xs $3M Single year contracts (1 reinstatement) Florida Hurricane CAT Fund (FHCF) $6.4M $6.2M $2.0M $4.2M xs $2.0M Net Retention $2.0M $3.0M $1.3M $1.0M $500K Property Per Risk XOL $2M xs $1M Multiple Line XOL (A) $500 xs $500K Ret $500K $300K Multiple Line XOL (B) $1M xs 300K Ret $300K xs Single year contracts 1 reinstatement w/ reinstatement premium protection (RPP) Net UVE Retention = in excess *Layer cascades to $2M Note: June, 1, 2018 reinsurance program 20

Services 21

Services overview ($million) 60.0 Revenue 1 0.95 FY14 FY18 CAGR Industry trends Technologyenabled innovation improving the customer experience 50.0 40.0 30.0 34.4 36.3 41.0 47.1 49.9 0.9 0.85 0.8 0.75 0.7 0.65 0.6 0.55 0.5 +9.7% Remote surveillance increasing to improve accuracy and speed of risk management and claims Improved operations with adoption of cloud based reporting tools and automated processes 0.45 0.4 20.0 0.35 0.3 0.25 NEUTRAL Large scale, technologyenabled disruptors pose opportunities and threats to distribution 0.2 10.0 0.15 0.1 0.05 FY14 FY15 FY16 FY17 FY18 0 NEUTRAL Customers expectations increasing Other 14% MGA Policy Fees 41% Risk Management Commission 45% Streamlined technology adoption will put pressure on longterm services pricing 22

Risk Management 15.0% 10.0% 5.0% 0.0% (5.0)% (10.0)% (15.0)% (20.0)% (25.0)% (30.0)% Catastrophe modeling Inhouse reinsurance brokers, underwriters and licensed actuaries with insurance and reinsurance experience Daily operations catastrophe modeling utilizing licensed AIR and RMS models AIR model RMS model Exposure management through proprietary Profitable Measure (IPM) models and rate level scenario analysis Reinsurance partners Strong relationships with traditional reinsurance partners A.M. Best Rating A++ 4% Domiciled Other 6% A or better A.M. Best rating for all reinsurance partners A+ 19% A 77% Domestic 17% London 45% Significant property and casualty and reinstatement premium protection coverage Largest participants: Bermuda 32% Tempest Re Syndicates 10.3% Industry reinsurance pricing 7.1% Utilize single and multiyear capacity and actively monitor pricing trends CY 8.1% (3.2)% (11.6)% (7.1)% (2.5)% (1.9)% (7.0)% (16.9)% 09' 10' 11' 12' 13' 14' 15' 16' 17' 18' Source: Guy Carpenter U.S. Property Catastrophe RateOnLine Index All reinsurance capacity utilized through traditional reinsurers today Broker reinsurance through inhouse fullylicensed reinsurance intermediary Blue Atlantic Reinsurance Company (BARC) in partnership with our inhouse MGA Evolution Risk Advisors 23

Claims management Optimized claims management structure Significant experience $3.5B+ Claims paid over past 15 years* 450K+ Claims over past 15 years Fast Track (onsite, same day settlement capability) Catastrophe Operations National Subrogation ($million) Subrogation Recoveries** 20.0 17.6 18.0 16.0 Inhouse claims department organized by capability Litigation Proprietary claims administration system 14.0 12.0 10.0 8.0 6.0 4.0 2.0 10.0 11.2 $38.8M Over 3yr Streamlined processes to efficiently accelerate close rate Retain small percentage of outside adjusters for surge demand 0.0 FY16 FY17 FY18 Accelerated subrogation efforts against third parties responsible for property damage losses to our insureds *Claims paid in partnership with reinsurers ** Cash receipts 24

Investing in technology: Device agnostic, digitally enabled distribution Go Paperless Environmentally and Socially Conscious Insurance Content Authority Prepare, Protect, Recover, Learn Get a Quote Download policy documents Track certain types of claims Get a Quote Universal Direct Partners Download policy documents Track certain types of claims Get a Quote 25

Investments 26

Investments overview Net investment income and realized gains (losses) Investment Portfolio ($908.2M as of 12/31/18) ($million) 30.0 Other (Preferreds, equities, and municipal bonds) 3.4% Mutual Funds 5.3% U.S. Gov Bonds 7.3% Real Estate, net 2.7% 25.0 22.7 20.0 16.0 24.8 MortgageBacked and AssetBacked Securities 34.1% Corporate Bonds 47.2% Realized gains (losses) Net Investment Income * 15.0 10.0 5.0 8.0 2.4 6.2 5.2 11.8 9.5 13.5 (2.1) <=1yr 14.9% Duration 10yrs 1.7% F i x e d m a t u r i t i e s Perpetual maturity securities 0.6% BBB 13.7% AA 12.3% Rating BB and below & No Rating 0.5% (5.0) FY14 FY15 FY16 FY17 FY18 Unrealized** NA NA NA NA (17.2) 510yrs 34.5% 15yrs 48.2% A 26.1% AAA 47.4% *Includes interest earned on cash and cash equivalents and restricted cash and investment income earned on real estate investments. Net of custodial fees, investment accounting, advisory fees and expenses associated with real estate investments ** Net unrealized gains (losses) on investments 27

Capital deployment 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 250.0 200.0 150.0 100.0 50.0 0.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 250.0 200.0 150.0 100.0 50.0 0.0 ($million) Share Repurchases 29.7 18.6 8.5 18.1 25.3 ~100M over 5yr ($million) Dividends 19.3 22.3 24.2 24.1 25.6 ~115M over 5yr Returning capital to shareholders FY14 FY15 FY16 FY17 FY18 ($million) Repayment of Debt 7.5 8.5 2.1 2.2 1.5 ~22M over 5yr bolstering balance sheet FY14 FY15 FY16 FY17 FY18 ($million) Balance sheet protection and Investments 158.0 196.0 171.1 57.6 78.3 ~660M over 5yr and investing for the future FY14 FY15 FY16 FY17 FY18 28

Fourth Quarter 2018 Results 29

Solid FY18 results against strategic priorities 1 Grow Other States and Florida 4Q18 direct premiums written up 12.3%; FY18 up 12.8% 4Q18 other states direct premiums written up 33.9%; FY18 up 34.6% 4Q18 Florida direct premiums written up 8.7%; FY18 up 9.7% 2 Focus on disciplined growth FY18 diluted GAAP EPS up 9.4% to $3.27, nongaap adjusted EPS* up 39.3% to $4.11 FY18 combined ratio of 87.3% FY18 return on average equity of 24.1% 3 Maintain strong balance sheet Gross catastrophe losses well below 18 19 reinsurance first event ceiling of ~$3.1B YoY Book value per share up 13.8% Total unrestricted cash and invested assets up 13.9% to $1.1B *Reconciliations of such nongaap financial measures in this presentation to the most comparable GAAP financial measures can be found in the Company s earnings release for the fourth quarter and full year of 2018, filed with the SEC as an exhibit to a Current Report on Form 8K on March 1, 2019, and also available on the Company s website at https://universalinsuranceholdings.com under Investors with the subheading of Earnings Releases. 30

4Q18 and FY18 financial results ($million) 250.0 Total Revenue 200.0 150.0 Pretax Income 100.0 margin 50.0 201.3 29.1% Total Revenue Premium volume, pricing, and services driving growth, partially offset by unrealized and realized gains and losses on investments, and reinstatement premiums 216.4 +7.5% (5.2)% 300.0% 250.0% 200.0% 150.0% 100.0% 50.0% 0.0% (50.0)% 900.0 800.0 700.0 600.0 500.0 400.0 300.0 200.0 100.0 751.9 22.7% 823.8 +9.6% 18.6% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% Annualized Return on Average Equity (ROE) 45.0% Return on Average Equity 35.0% 25.0% 15.0% 5.0% 33.0% NM 40.0% 35.0% 1 0.95 30.0% 0.9 0.85 25.0% 0.8 0.75 0.7 20.0% 0.65 0.6 15.0% 0.55 0.5 10.0% 0.45 0.4 0.35 5.0% 0.3 25.7% 24.1% (1.6)pts 1 0.95 0.9 0.85 0.8 0.75 0.7 0.65 0.6 0.55 0.5 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0.25 0.0% 0 4Q17 4Q18 (100.0)% FY17 FY18 0.0% 5.0% 4Q17 4Q18 0.2 0.15 0.1 FY17 FY18 0.05 Income before income tax 58.6 (11.2) 170.5 152.9 15.0% 0 Adjusted operating income* 58.6 3.3 168.3 192.8 ($ per share) Earnings per Diluted Share (EPS) Premium volume, pricing, taxes, and services driving growth, offset by strengthening prior accident years loss reserves GAAP EPS 1.03 (0.18) 2.99 3.27 1.40 NonGAAP Adjusted 1.20 EPS* 1.00 0.80 0.60 0.40 0.20 (0.20) 1.03 (87.4)% 0.13 1 0.95 0.9 0.85 0.8 0.75 0.7 0.65 0.6 0.55 0.5 0.45 0.4 0.35 0.3 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 2.95 4.11 +39.3% 0.25 4Q17 4Q18 0.2 FY17 FY18 1 0.95 0.9 0.85 0.8 0.75 0.7 0.65 0.6 0.55 0.5 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 12.67 4Q17 Book Value, end of period $ book value per share (BVPS) $million book value 0.15 (0.40) 0.1 *Reconciliations of such nongaap financial measures in this presentation to the most comparable GAAP financial measures can be found in the Company s earnings release for the fourth quarter and full year of 2018, filed with the SEC as 0.05 an exhibit to a Current Report (0.60) on Form 8K on March 1, 2019, and 0 also available on the Company s website at https://universalinsuranceholdings.com under Investors with the subheading of Earnings Releases. 14.42 +13.8% 4Q18 1 0.95 0.9 0.85 0.8 0.75 0.7 0.65 0.6 0.55 0.5 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 600.0 500.0 400.0 300.0 200.0 100.0 440.0 4Q17 501.6 +14.0% 4Q18 1 0.95 0.9 0.85 0.8 0.75 0.7 0.65 0.6 0.55 0.5 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 31