Keep the Promise ® UNITED INSURANCE HOLDINGS CORP. 2017 ANNUAL REPORT FIVE FOUNDATIONS OF UPC INSURANCE
FINANCIAL STABILITY SUPERIOR CLAIMS SERVICE
Our financial strength assures our ability to pay claims Timely, fair resolution of claims Financial stability is the first and most We process claims using professional in-house important of our Five Foundations. We UPC associates who share our commitment to have over $530 million of equity capital in excellence. No matter the situation, we strive our company, and purchase an additional to provide all policyholders a timely response $3 billion of reinsurance – making us one of and fair resolution of their claims. The results the ten largest purchasers of U.S. property are prompt restoration or replacement of the catastrophe reinsurance in the world. No property and high customer satisfaction. historical event or storm season would use much more than half of our reinsurance, tower, and that means you can rest easy EASE OF DOING BUSINESS knowing that UPC Insurance is here today, here tomorrow to meet all of your needs no We’re easy to work with! matter the circumstances. Financial Stability. We know you’re busy, so for both agents and Count on it from UPC. policyholders, we want your experience of doing business with UPC to be easy and efficient. That means the ability to report claims and PRODUCTS THAT WORK access policy information online, easy access to a UPC representative by phone to answer your AK Flexible product options meet unique needs questions, and much more. We offer a selection of customizable products, designed to provide affordable options with superior protection. For both residential and FAIR PRICING commercial lines, we listen to our agents to understand the needs of policyholders and Our sensible pricing supports everyone’s best interests develop products that meet these needs. We pledge always to provide a price that accurately reflects the risk we are assuming in writing a policy. That is fair pricing, and in the long run it works to the benefit of agents and policyholders. We want to be competitive with other carriers, but we won’t cut prices to win business if it jeopardizes our financial stability and ability to pay claims in all circumstances. A LETTER TO SHAREHOLDERS PRESIDENT & CHIEF EXECUTIVE OFFICER JOHN FORNEY
Recently, I have heard several insurance industry CEO’s use the same Charles Dickens quote to describe the state of our industry: “It was the best of times, it was the worst of times.” I like a good quote as much as (probably more than) the next guy, but this one has gotten a little tired from overuse, and besides, at least for our company, it’s not true. No, at UPC Insurance, it’s all good. Consider:
The inside front cover of this report lists the Five Foundations of UPC Insurance. In combination, these foundations comprise our value proposition – to our associates, to our agents, to our reinsurers, to our regulators, and to our investors. We need every one of them. In the six years since we set out to leverage our long, successful history as a Florida personal lines property underwriter to other cat-exposed states and lines of business, we have focused on building value the hard way – one state at a time, one agent at a time, one policy at a time. Since we have not focused on take-outs or acquisitions as our primary means of growth, it has been imperative that we present a compelling value proposition that enables us to grow profitably and create a win-win relationship with our core partners. That’s what the Five Foundations are all about, and while we have not executed perfectly, our strategy and execution have created demonstrable value. Here are two charts that illustrate the point: