Greetings, and welcome to United Insurance Holdings Corp. fourth quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Karin Daly, Vice President at The Equity Group. Thank you, and good afternoon, everyone. UPC Insurance has also made this broadcast available on its website at upcinsurance.com. A replay will be available for approximately 30 days following the call. Additionally, you can find copies of UPC annual release and presentation in the investor section of the company's website. Speaking today will be Chairman of the Board and Chief Executive Officer, R. Daniel Peed, and President and Chief Financial Officer, Bennett Bradford Martz. On behalf of the company, I'd like to note that statements made during this call that are not historical facts are forward-looking statements. The company believes these statements are based on reasonable estimates, assumptions, and plans. However, if these estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those expressed in or implied by the forward-looking statements. Factors that could cause actual results to differ materially may be found in our filings with the U.S. Securities and Exchange Commission in the Risk Factors section of our most recent annual report on Form 10-K, and subsequent quarterly reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and except as required by applicable law, we undertake no obligation to update or revise any forward-looking statements. Now, I'd like to turn the call over to Dan Peed. Dan? Thanks, Karin. Hello, and thanks for joining us on our fourth quarter earnings call. I'm Dan Peed, Chairman and CEO of UPC Insurance. I'm planning to offer an overview and discussion of some of our results and activities, and then Brad Martz will provide more specific numbers, and then we'll take questions. Results for Q4 demonstrate that we are making good progress through our 2021 transition year plan. Core income improved on both a quarter-over-quarter and a year-over-year basis. Year-over-year, it improved from a loss of $58 million in Q4 of 2020 to a loss of $1 million in Q4 of 2021. Quarter-over-quarter, it improved from a loss of $15.5 million in Q3 2021 to a loss of $1 million in Q4 2021. Core income, excluding named windstorms, was down slightly from a profit of $3.3 million in Q4 2020 to a loss of $1 million in Q4 2021. This is due mostly to our de-risking plan, with higher reinsurance costs associated with a significantly reduced hurricane retention. These additional costs are expected to be offset through 2022 as significant and compounding rate increases earn their way through the portfolio. As such, as we exit our transition year of 2021, we expect a growing underlying profitability margin leading to an underwriting profit in 2022 and achievement of our targeted ROEs in 2023. We continue to execute on our strategic plan to bring personal lines and commercial lines to a 50/50 balance. We ended 2021 with a premium mix of 63%-37% personal to commercial, down from 75%-25% at the end of 2020. At this rate, we are ahead of pace to achieve 50-50 in three years. On the personal line side, at the end of Q4, we sold renewal rights to our portfolios in Georgia, North Carolina, and South Carolina. When combined with last year's renewal rights sale of our four Northeast states, we've reduced personal lines TIV by 44%. In our continuing portfolio, through exposure management and risk selection, we've reduced TIV exposure by 15.8% in 2021, and currently have a run rate over 4% per quarter through at least third quarter 2022. While decreasing exposure, we've increased rates in average across the personal lines portfolio of 11.3% in Q4 and 11.5% for the year of 2021. Rates are compounding and accelerating, and we expect to continue to achieve significant rate increases throughout 2022. Compounding rate increases are beginning to earn their way through the portfolio, which will accelerate through 2022 and into 2023. The commercial lines portfolio continues to perform well, with premium ending the year up nearly 20% and exposure approximately flat. In American Coastal, we have a market leader in Florida commercial residential risks, which is positioned extremely well to grow profitably in one of the hardest Florida markets in 15 years. For 2022, we anticipate additional rate increases consistent with the 20% in 2021. In summary, the fourth quarter results reflect our continuation of our plan for a return to underwriting profitability in 2022 and target ROEs in 2023. We are ahead of our three-year schedule in achieving the 50/50 balance between commercial lines and personal lines. We're trimming our personal lines portfolio both by selling renewal rights as well as ongoing exposure management and risk selection. Our commercial lines business is performing well and positioned to grow into the hard market anticipated in Florida for at least the next two-three years. With that, I'll turn it over to Brad Martz. Thank you, Dan, and hello. This is Brad Martz, the President and CFO of UPC Insurance. I'm pleased to review UPC's financial results, but also encourage everyone to review our press release, investor presentation, and Form 10-K for more information regarding the company's performance. For the quarter ended December 31, 2021, UIHC reported a GAAP net loss of $2.3 million, or $0.05 a share, compared to a loss of $33.9 million, or $0.79 a share last year. Our core loss of $1 million, or $0.02 a share, improved significantly compared to a core loss of $58.1 million, or $1.35 a share last year. On page four of our investor presentation, we highlight that our core loss included $12.5 million of net retained cat losses, which were partially offset by $3.5 million of favorable reserve development. Despite our lower hurricane retention and aggregate reinsurance protections, we did not incur any named windstorm losses in the current quarter, which was in stark contrast to the $78 million of net retained losses from named windstorms in the fourth quarter of 2020. Removing the effect of named windstorms improves comparability of our core results with the prior year, which did decrease by $4.3 million, as Dan mentioned, due primarily to our higher reinsurance spend in the current year intended to reduce earnings volatility and protect capital. Gross premiums written for the quarter declined $47.3 million, or approximately 15%, and gross premiums earned decreased 6.1% to $342 million, due to continued exposure management in our personal lines portfolio as well as the cancellation of all policies in Connecticut and Rhode Island, consistent with our intent to transfer that business to HCI Group. Pages eight through 11 of our investor presentation support Dan's comments that we're getting significantly more rate in both commercial lines and personal lines while keeping the risk we want. Page 12 provides a summary of our business in force at December 31, with and without the states where renewal rates were low to demonstrate the good progress we're making toward our goal of a more balanced risk portfolio. Ceded earned premiums were $196.8 million, an increase of $32.4 million, or 20% year- over- year, due primarily to more business being ceded via the 100% quota share reinsurance program for the Northeast region and the 23% quota share cession for American Coastal Insurance Company. These cessions are partially offset by ceded losses and ceding commission income earned in the current period. Other items included in total revenues during the fourth quarter were $7.2 million of fee income that increased year over year due to the renewal rights agreement announced in December to transfer the risk of loss in our Southeast region to HCI Group. Net investment income of $3 million declines year over year due to lower invested assets, and net investment losses of $2.3 million declined due to fixed income sales during the quarter to meet liquidity needs. We also had unrealized gains from equities of $1.5 million. UPC's fourth quarter net loss and loss adjustment expense was $85.5 million, a decrease of $99.6 million, or 54% year over year. Catastrophe losses added roughly 8.5 points to our net loss and combined ratios, with the impact of favorable reserve development being about 2.5 points on those same ratios. Our underlying loss and loss adjustment expense was $76.5 million, down $1.6 million, or 2% year- over- year. This produced an underlying net loss ratio of 52.7%, which was up roughly 13.5 points from 39.1% in Q4 last year. The increase can be attributed mainly to ceded premiums earned, as shown in our ceding ratio of 57.6%, which increased 12.5 points compared to the same period last year. Roughly five points to that change is related to ACIC's American Coastal's 23% quota share, and nearly seven points is related to the HCI quota share in the Northeast region. Page five of our investor presentation breaks down the key ratios for the year compared to the previous five years and our six-year averages. Here, you'll see that our net loss and expense ratios measured against gross premiums earned showed improvement, but risk transferred via reinsurance pressured the same results measured against net premiums earned. Page six of our investor presentation summarizes our results by line of business and continues to show profitable results for commercial lines in the current period, but much improved results for personal lines year-over-year. Given our rapidly evolving insurance portfolio, our Form 10-K will provide additional disclosure and transparency as we move from a single reporting segment to breaking out our results in more detail between personal lines and commercial lines going forward. Page seven of our investor presentation provides an update on litigation trends for United Property & Casualty Insurance Company compared to the industry basket of Florida homeowners carriers. Our experience has been consistent with the industry's, which indicates a downward trend in the frequency of new lawsuits filed in Florida during the second half of 2021. UPC's operating expenses were $72.9 million, a decrease of 26% year-over-year. This decline was driven mainly by higher ceding commission income during the current quarter, which is reflected in lower acquisition costs. However, our net expense ratio increased approximately 0.7 of a point to 50.2% inclusive of all reinsurance costs. Page 13 of our investor presentation provides some select balance sheet data. UPC's total assets were $2.7 billion, including cash and investments of $965 million. The modified duration of our fixed income holdings was approximately four years, with an overall composite rating of A. For the year, our GAAP equity attributable to UIHC stockholders declined approximately 21% to $312.4 million, with a book value per share of $7.20 and tangible book value per share of $5.10. We are still in the process of finalizing our statutory results, but do expect all our carriers to have RBC in excess of 300% upon adding additional capital prior to filing our annual statements subject to regulatory approval. Finally, on page 14 of our investor presentation recaps our strategy to be a top quartile specialty underwriter of cat-exposed property insurance. I firmly believe the company is much better positioned for sustainable long-term success given the reduced exposure base and numerous underwriting improvement initiatives we've implemented during 2021. That concludes our prepared remarks. We thank you for your continued interest in UPC Insurance and are now happy to take any questions. Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question is from Greg Peters with Raymond James. Please go ahead. Good afternoon, everyone. This is actually Sid Schultz calling in for Greg. My first question is more of a broader one. We've been hearing rhetoric around the Florida homeowners market regarding legislative changes. I'm just curious if you guys could provide any insight on what you might be seeing in that? This is Dan. Obviously, we can speak to a couple things. One would be the changes last summer, SB 76. As we saw in our investor presentation, we did see the number of new litigation, new claim, litigant lawsuits drop off through August and September of last year and be reduced by about half through the end of 2021. It's hard to tell the impact that that will have over the long term, but it has given us some ability to respond to the lawsuits better. The 10-day pre-suit notification is important. Then the second part of your question might be more as to rumors about this year. We have heard a lot of rhetoric, but really, we don't have any way to handicap the legislature any better than anybody else. There are some proposals that are on the table that definitely would improve the environment in Florida. The reduced attachment point of the Florida Hurricane Catastrophe Fund would be important, as one of the key things. Okay. That's really. Okay. If that helps you. This is Brad. Yeah. I would just add, we are monitoring it actively. Our team is all over it. Senate Bill 1728, presented by Senator Boyd has got some compelling features that we're actively monitoring. I think Dan's right. It's a little early to speculate with about two and a half weeks left in session. Lots of changes are expected, you know, towards the end of the session. Okay. Yeah, thanks. For my second question, just looking, I know you guys have been able to take rate and reduced exposure and so I'm just curious if there's any other underwriting actions you guys are taking or planning to take that maybe we should keep in mind when looking through 2022 and 2023 or maybe just anything you guys think is important for us to keep in mind? Yeah, thanks. This is Dan again. I'll take a stab at that. We have, I think I've seen the list of about 60 underwriting actions, material underwriting actions that we've taken over the last 18 months. Certainly we are doing a lot of different activities. We're closely monitoring and assessing the age and the condition of the roofs as something that we do better now than we did before. We have developed a technology, an Insurtech tool that actually can assist us in assessing the profitability of each one of the accounts down to the policy level. We have withdrawn from many of our various different products in different states that were small and not going to reach scale. Those are some that are off the top of my head, but we have a long list of underwriting actions that we've taken. Yeah. I would just add, Brad, the big changes obviously are the fact that the Northeast region and Southeast regions are transitioning away. So that's gonna definitely impact, you know, gross premiums written and gross premiums earned as well as net premiums earned when compared to the prior periods. Okay, great. Thanks, guys. Thank you. Thank you. Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. The next question is from Elyse Greenspan with Wells Fargo. Please go ahead. Hi. Thanks. Good evening. My first question, so you guys said you expect to get back to, you know, get to your ROE targets, I guess, in 2023. I just wanna confirm, you know, is that target still for the mid-teens? And then could you give us a sense when you point to, right, getting to underwriting income, right, in 2022, where do you think, you know, the ROE should shake out in 2022 relative to that target? This is Dan. Thanks. You know, our plan has been, and that we've you know really enunciated or we've talked about since last year and even in mid-2020, would be to have 2021 as our transition year. We needed to de-risk and de-leverage the portfolio. We spent more money on reinsurance, and as you can see, we've de-risked the portfolio in many different ways. The second step of that in 2022 would be to achieve an underwriting profit, and that's all we've really specified. Our target ROEs, which are in the mid-teens plus an aggregate annual aggregate retention for cat by the end of 2023. It's hard to... We really can't put a projection, a specific number on 2022, but we would expect to achieve a good underwriting profit. That's the plan. Okay. You guys highlighted that, you know, some of the, you know, reinsurance and other business transfers, right, impacted the underlying loss ratio on a net earned basis in the quarter. Would you expect that to continue? Just help us think about kind of modeling on, you know, the underlying, you know, loss ratios to think about 2022? Sure. Hi, Elyse, this is Brad. The key assumption for 2022 is gonna be the 6/1 reinsurance renewal. You know, the company has taken several steps to mitigate the risk of you know, cost increases at June 1, notably, you know, having some multi-year protection, our reduced exposure base that's ultimately leading to less limit being required year over year. So there are a number of things we've done to properly position ourselves in that regard. So I think we will fare better than most in terms of the overall net effect of potential reinsurance cost increases just based on the fact that we're gonna need significantly less limit year over year. We've also got embedded protections with the amount of cat limit in our quota share, which should be helpful. If there are changes to the Florida Hurricane Catastrophe Fund this year, you know, those could be very, very meaningful. You know, we can't. Obviously, we're not planning on that. We're modeling out our business around a fairly consistent ceding ratio, consistent to 2021. When you guys say, right, underwriting profit, what are you modeling in for 2022 for net cats? I'm assuming there's, you know, a retention plus, you know, some kind of the smaller cat events that we typically see. What are you assuming, you know, could be the net cat load this year? Cat is inherently unpredictable, so we hesitate to give any specific point estimates for cat. I think we've always encouraged people to develop you know estimates consistent with you know our historical experience and but also apply you know prospective changes in our risk portfolio, including you know rate increases. If you're looking at a cat loss ratio, I mean you have to obviously consider the rising rate environment we're in. The frequency and severity of named winds, cat losses from named windstorms or and all other perils is not something we're gonna provide guidance on. Okay. One last one. Brad, I think you mentioned that, you know, you expect all your carriers to have an RBC in excess of 300%, but you did say that you upon adding additional capital. Can you give us any sense on, you know, what capital you expect to add? It's still to be determined. We've still got a few pieces of the annual statements to finalize before we can finalize the actual RBC output. We will make capital contributions to a few of our companies, not all. I mean, we've got some companies that are overcapitalized and are well in excess of 300%, and a couple that are right there and might need a little bit of additional capital prior to filing our annual statements. We've previewed that with our regulators and don't see a problem with doing that. We certainly are committed to ensuring all of our statutory entities have adequate risk-adjusted capitalization. Okay. Thanks for the color. You're welcome. Thank you. Ladies and gentlemen, we have reached the end of the question and answer session, and I would like to turn the call back to Mr. Dan Peed for closing remarks. Thank you. With that, we'll wrap up our call for today. I wanna thank our entire team for their tireless efforts. Thanks to all of you for joining us on our call today. Thanks again. Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.