Effective December 1, 2016, United Insurance Holdings Corp. (UPC Insurance or the Company), through its wholly owned insurance subsidiary United Property and Casualty Insurance Company entered into a quota share reinsurance agreement (the “quota share agreement”) with private reinsurers. Effective January 1, 2017, UPC Insurance renewed its aggregate excess of loss reinsurance agreement (the “aggregate excess of loss agreement,” and, together with the quota share agreement, the “agreements”) with private reinsurers. These agreements provide coverage for in-force, new and renewal business. The quota share agreement provides coverage only for United Property and Casualty Insurance Company, while the aggregate excess of loss agreement provides coverage for United Property and Casualty Insurance Company, Interboro Insurance Company, and Family Security Insurance Company. These new reinsurance programs are designed to work in conjunction with UPC Insurance’s catastrophe excess of loss reinsurance program to provide the Company broad risk transfer protection and to lessen financial volatility.

The quota share agreement includes a cession rate of 20% (15% on single year and 5% over a two-year period) for all subject business. The quota share agreement provides coverage for all catastrophe perils (i.e. hurricanes, tropical storms, tropical depressions and earthquakes), other-catastrophe perils (i.e. weather-related perils other than hurricanes, tropical storms, tropical depressions and earthquakes), and attritional losses. For other-catastrophe perils, the quota share agreement provides coverage alongside the aggregate excess of loss program described herein, after the Company’s retention has been satisfied. For catastrophe perils, the quota share agreement provides ground-up protection that effectively reduces the Company’s retention for catastrophe losses. Quota share agreement reinsurers’ participation in paying attritional losses is subject to an attritional loss ratio cap.

The aggregate excess of loss agreement provides coverage only for other-catastrophe perils. Under this agreement, for other-catastrophe losses in excess of $1,000,000 but less than $15,000,000, UPC will retain, in the aggregate, 50% of those losses up to $30,000,000. The reinsurers will then be liable for all losses excess of $30,000,000 in the aggregate not to exceed an annual aggregate limit of $30,000,000. This program was placed at 85% rather than 50% because of the quota share agreement reinsurers’ participation in paying other-catastrophe losses after the $30,000,000 retention.

On December 13, 2016, the Company issued a press release announcing the execution of the agreements. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

This Item 8.01 and Exhibit 99.1 may contain forward-looking statements about our reinsurance program and related attachment point, total coverage and costs. These statements are subject to the Private Securities Litigation Reform Act of 1995 and are based on management’s estimates, assumptions and projections. These forward-looking statements can generally be identified as such because the context of the statement includes words such as estimate, expect or words of similar nature. The actual changes to our reinsurance program and related attachment point, total coverage and costs may differ materially from those discussed in this report, depending on our reinsurers’ capacity to pay claims and related adjustment provisions in our agreements with the private reinsurers.

Item 9.01(d): Exhibits.

See the Exhibit Index set forth below for a list of exhibits included with this Current Report on Form 8-K.

About UNITED INSURANCE HOLDINGS CORP. (NASDAQ:UIHC)

United Insurance Holdings Corp. is a property and casualty insurance holding company that sources, writes and services residential property and casualty insurance policies using a network of agents and a group of insurance subsidiaries. The Company’s insurance subsidiary is United Property & Casualty Insurance Company. Its other subsidiaries include United Insurance Management, L.C., the managing general agent that manages substantially all aspects of United Property & Casualty Insurance Company’s business; Skyway Claims Services, LLC, which provides services to its insurance affiliate; UPC Re, which provides a portion of the reinsurance protection purchased by its insurance affiliate, and Family Security Holdings, LLC (FSH). The Company’s principal product is homeowners’ insurance, which it offers in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, North Carolina, Rhode Island, South Carolina and Texas.

UNITED INSURANCE HOLDINGS CORP. (NASDAQ:UIHC) Recent Trading Information

UNITED INSURANCE HOLDINGS CORP. (NASDAQ:UIHC) closed its last trading session down -0.03 at 15.04 with 117,854 shares trading hands.