UPC Insurance Company Overview and ESG Strategy slide image

UPC Insurance Company Overview and ESG Strategy

Overview of Challenging Market Conditions Florida is the peak exposure zone in the world for windstorm where we have successfully operated since 1999 Atlantic Hurricanes (1) Atlantic Hurricanes Social Inflation Driving Growth in Industry Suits Served Hurricanes Significantly Impacting the FL Market - Average (7.1) 25,000 During the last four years, two of the top ten costliest hurricanes in US history have made landfall in Florida including Hurricanes Irma 20,000 ($32B(2)/2017) and Michael ($14B(2)/2018) 13 12 15,000 10 10 4 8 7 7 3 10,000 2 2 4 2 5,000 2 8 2 5 3 20,854 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q14 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20 1Q21 Florida Homeowners Direct Incurred Loss Ratios (%) 103 93 93 77 70 Florida Litigation Trends (3) Year % of Nationwide Homeowners' Claims Opened in Florida % of Nationwide Homeonwers' Suits Opened in Florida 70 2016 7.8% 64.4% 38 38 32 34 36 26 39 2017 16.5% 68.1% 20 29 29 24 25 20 2018 11.9% 79.9% 2019 8.2% 76.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Insurance Information Institute (1) (2) Only accounts for named storms that reached hurricane status Insured losses adjusted for inflation to reflect 2020 dollars (3) From the Florida Office of Insurance Regulation's analysis of the Florida market, which leverages data from NAIC 6
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