REINSURANCE PROGRAM Significant Historical Event Effects on UPC Historical Event Est. Industry Est. UPC UPC Performance UPC Performance Gross Loss Gross Loss 2017 Net Inc. 3 Risk-Adjusted ($ billion) ($ million) ($ million) ROAE 3 SEVERITY (Single Event) Andrew (FL 1992) $54 $447 $39.1 15.0% Katrina (LA 2005) $59 $506 $39.1 15.0% Galveston (TX 1900) $43 $461 $39.1 15.0% Great New England (1938) $43 $578 $39.1 15.0% FREQUENCY (Multiple Events) Andrew + Katrina $113 $953 $20.0 8.0% Galveston + New England $86 $1,039 $20.0 8.0% MORE PROTECTION. BETTER FINANCIAL STABILITY. GREATER PEACE OF MIND. UPC’s catastrophe reinsurance program is structured to offer unique protection for both severity and frequency— in other words, it is built to protect against both very large storms and multiple storms in the same year. Since 1900, there has never been a hurricane event or season that would have exhausted more than 50% of our reinsurance coverage. UPC Reinsurance Fast Facts • Our reinsurance plan protects against a one-in-more-than-400- year event—plus single and multiple-named storm seasons. • Severity Protection: No single storm since 1900 would exhaust more than 50% of our catastrophe reinsurance protection. • Frequency Protection: No series of events occurring in one year since 1900 would have exhausted more than 32% of our catastrophe reinsurance protection. • Our retention of $55 million is less than 7% of our 06/30/17 equity capital. • Over 85% of our total reinsurance limit is collateralized in cash—we know the money will be there after an event. 1928 Okeechobee ........................... $1,262 M 1938 Great New England ....................... $578 M 1900 Galveston ....................................... $447 M 1992 Andrew .......................................... $461 M 1926 Great Miami Hurricane .............. $1,409 M 2005 Hurricane Season (7 events) 2 ........... $888 M 2004 Hurricane Season (6 events) 1 .......... $628 M $ 2 . 8 B I L L I O N U P C R E I N S U R A N C E C O V E R A G E UPC’s Coverage $2.8 BILLION in total reinsurance protection How Our Reinsurance Program Compares to Historical Events Estimated UPC losses in today’s dollars from selected historical events. 1 2004: Charley, Frances, Jeanne, Ivan, Alex, Gaston 2 2005: Wilma, Katrina, Dennis, Ophelia, Cindy, Emily, Rita 3 Raymond James estimate as of 5/15/2017 less after-tax of actual, estimated and modeled catastrophe losses during 2017