Greetings, welcome to the United Insurance Holdings Corp. Third Quarter 2022 Financial Results Conference Call and Webcast. At this time, all participants are in listen-only mode. Please note, conference is being recorded. It's now my pleasure to turn the call over to Karin Daly, Vice President with the Equity Group. Please go ahead, Karin.

Thank you, Kevin, and good afternoon, everyone. UPC Insurance has also made this broadcast available on its website at www.upcinsurance.com. A replay will be available for approximately 30 days following the call. Additionally, you can find copies of UPC's earnings release and presentation in the Investors 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 the 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 vary materially may be found in our filings with the US 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. With that, it's my pleasure to turn the call over to Mr. Daniel Peed. Dan?

Thanks Karin. Hello, and thanks for joining us on our third quarter earnings call. I'm Dan Peed, Chairman and CEO of UPC Insurance. I'm planning to offer an overview of some of our activities and then Brad Martz will provide for more specific numbers. Results in the third quarter continue to highlight the performance difference between our personal lines and commercial lines businesses. Please see page five of our investor supplements for more information. Personal lines was disappointing with a core loss of $69.8 million. Key factors include the loss of the UPC Insurance Company's financial stability rating issued by Demotech and the downgrade of UPC Insurance Company's Kroll rating. These impact our renewal retention levels and therefore, gross written premium and grow starting premium. Another significant factor was our increased reinsurance spend coming out of our 61 cat placement, which therefore increases seeded on premium and decreases net earned premium faster than the exposures are decreasing. While current accident year non-cat losses are down, the decrease in earned premium outpaces the decrease in losses driving the poor result. This is compounded by significant strengthening of our prior year reserves reflecting an increased claims severity driven by inflation and the excessive Florida litigation on prior year losses. These results have driven the write-down of our DTA, large valuation allowance in the second quarter and in the third quarter, we wrote down approximately $13.6 million with goodwill against our personal lines operations. In personal lines, we continue to downsize the portfolio with total policies in force down about 36% since the beginning of 2022, and total return values down 34.6%. We also continue to drive rate with an average of 20.4% rate increase and an average 35% rate lift when combining rate plus increased insurance to value. In commercial lines written…

Thank you, Dan. And hello, this is Brad marks the President and CFO of UPC insurance. I'm pleased to review UPCS financial results, but also encourage everyone to review our press release, investor presentation, and Form 10-Q for more information regarding the company's performance. Highlights for the quarter ending September 30th, 2022 included a GAAP net loss of $70.9 million or $1.65 a share compared to a net loss of $14.3 million or $0.33 a share last year. Our core loss of $57.5 million or $1.34 a share compared to a core loss of $15.5 million or $0.36 a share a year ago. On page four of our investor presentation highlights that our core loss included $37.4 million of net retained cat losses in the current accident year and $44.6 million of prior year reserve development. Our cat losses were driven by Hurricane Ian, which included a $16.4 million net retention by American Coastal and United Property & Casualty plus a $20.1 million loss incurred by our captive EPC REIT. The additional retention by our captive was due to UPC REIT replacing one reinsure on a $25 million excess of $20 million layer of the core cat program, who elected determinate their participation upon UPC's downgrade by Demotech during the third quarter. The $20.1 million retained loss excludes the return on reinsurance premium of roughly $15 million, so the net economic impact between losses and seeded premiums was around $5 million related to the captive's participation. Prior year reserved development of $44.6 million resulted from a reallocation of IBNR from current accident year to prior accident years in our personal line segment. Higher loss severity continued to cause older accent ears to perform worse than expected, but our outlook for the current accident your loss ratio improved during the quarter.…