American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — United Insurance Holdings — Merger or Acquisition (August 2016)
18 slides from American Coastal Insurance's merger presentation, Aug 18, 2016
Slide 1: NY Broker Bulletin: UPC and American Coastal Merger Announcement
NY Broker Bulletin # 2016-08-17 UPC and American Coastal Merger Announcement Dear UPC Broker Partner, We have very exciting news to share with you. United Insurance Holdings Corp. (UPC Insurance), a property and casualty insurance holding company (NASDAQ: UIHC), has entered into a Merger Agreement w
Slide 2: UPC Insurance and American Coastal Insurance Combination
Keep the URANCE"| Promise United Insurance Holdings Corp. NASDAQ: UIHC UPC Insurance and American Coastal Insurance Combination Creating a Leading Specialty Property CAT Underwriter August 17, 2016
Slide 3: Overview of UPC and ACIC
Overview of UPC and ACIC UPC Insurance United Insurance Overview UPC Insurance is a specialized personal ar Texa 5, UPC 1 and $203 equity cap 2015 DPW by Geography 2015 DPW by Product 02 equity capital milo million of pital and o $570M in 2015 DPW UPC Financial Highlights v1 2018 2016 a2 426,753 869
Slide 4: Transaction Highlights
Transaction Highlights Keep the URANCE| Promise Transaction + Combination of UPC Insurance and American Coastal in an all stock merger meant to qualify as a tax-free reorganizati + Approximately $330 million, based on non-discounted share v + For purchase accounting, shares have a discounted value o
Slide 5: Pro Forma Organizational Chart
| Keep th Pro Forma Organizational Chart Bee ee ice | | per care er 100% Owned by UC ue cerediy =) ere) ately Insranossubscaries that underwrite polices and bear kof os MenagogGenertAgency® at roves ld ae ins ric a ee ‘transfer capabilities: AUGUST 16 INVESTOR PRESENTATION: UPC Merger with American
Slide 6: Transaction Benefits
Keep Transaction Benefits Combined entity creates a leading specialty insurance underwriter of catastrophe exposed property in the U.S. QO Positive effects of increased size, scale, stability and market ] presence the Promise~ +Diminished pean di earnings +Increased access t al +Potential rating ey
Slide 7: Shareholder Value Creation
Future . Value Creation Shareholder Value Creation Keep \ the INSURANGE" Promise- Transaction is expected to be immediately accretive to earnings per share Transaction is expected to be immediately accretive to return on equity Tangible book value per share expected to return to current level within
Slide 8: Daniel Peed and AmRisc Overview
Keep the Promise~ Daniel Peed, CPCU, ARe UPC. CEO of American Coastal INSURANCE Background * Currently serves as CEO of American Coastal and President and CEO of AmRise, LLC + Mr. Peed has over 30 years of experience in the insurance industry > Includes both insurance and reinsurance underwriting fo
Slide 9: American Coastal — Highlights
Keep American Coastal — Highlights the Promise~ American Coastal is the largest writer of commercial residential insurance in Florida + Attractive platform for expansion and diversification + Superior underwriting and proven track record > 5-year average combined ratio of 63% > 5-year average ROE of
Slide 10: Highly Complementary Platforms and Skills
Highly Complementary Platforms and \0 hee Skills INSU RANGE" Promise- UPC and Americ: Coastal have highly complementary capabilities and skill sets = Personal lines expertise = Geographic diversification well underway ~ expedites ACIC expansion opportunities = Well developed distribution system = Le
Slide 11: Financially Compelling Transaction
Keep he Financially Compelling Transaction Re aS | Promise: + Enhanced Earnings Profile and Improved Margins seHighet-margin:lines:ffom:-ACLCienhancs: Earnings per + Immediately accretive to returns and improve the ability of the pro ares Lage hae fund future growth through internally generated capi
Slide 12: Illustrative Overview of the Pro Forma Company
Illustrative Overview of the nee Pro Forma Company \ the URAN CE"! Promise [ Balance Sheet Jil Income Statement y10 a2 2016 vip a2 2016 acie wT upc Acic Pro Forma Asse ih dt $6390 $ s a807 § s 5157 30.8 196.9 218.0 444 209 faa | Met fremlumaiiin. 149.8 § s 1970 155, A 15.9 | Rovenues 29.0 2 4.3. | N
Slide 13: Pro Forma Capital Structure
Data as of 6.30.16 (S in thousands) Annualized Gross Premiums Written (GPW) Annualized Net Premiums Earned (NPE) Debt Shareholders’ Equity Total Capital Debt / Total Capital Annualized GPW / Total Capital Annualized NPE / Total Capital AUGL 6 INVESTOR PRESENTATION: UPC Merger with American Coast Pro
Slide 14: Conclusion
Keep “| f[———>"|_ ti Conclusion URANGE! Promise: UPC’s merger with ACIC creates a very unique catastrophe property underwriting specialist with over $1 billion of premium in force ACIC’s relationship with AmRisc provides unparalleled access to commercial property expertise and great growth potential
Slide 15: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Keep the RAN GE" Promise fatements” nat involve significant, ales and uncertainties All This i statements other thal an "statement s of Retoreal fact ‘ing statements, ancliding: any statements egarding the icipated. ‘ming ae ‘aings and Ee vel
Slide 16: Additional Information Regarding the Transaction and Where to Find It
Keep Additional Information Regarding the the Transaction and Where to Find It PARTE || Promise This communication does not constitute an offer to sell or the solicitation of an offer to Buy the fecurtics of the Company or the poll ation of any vote or approval. This communication is oh r er m he TL
Slide 17: Participants in the Solicitation
Keep Participants in the Solicitation . eo on ee 2016, its annual report on Form 10-K for the fiscal year ended December 31, 2015, which
Slide 18: UPCZS
UPCZS INSURANCE ene Keep the Promise
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