Hello, and welcome to the United Insurance Holdings Corp., First Quarter 2023 Financial Results Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Karin Daly, Investor Relations with The Equity Group. Please go ahead, Karin.

Thank you, Kevin, and good afternoon, everyone. United Insurance Holdings Corp. 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 UIHC'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 differ materially may be found in the Company's filings with the U.S. Securities and Exchange Commission in the Risk Factors section in 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, the Company undertakes 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, you may begin.

Thanks, Karin. Hello, and thanks for joining us on our first quarter earnings call. I'm Dan Peed, Chairman and CEO of United Insurance Holdings Corp. I plan to overview the activities from the first quarter, including touching on the operating results in our continuing operations and specifically, our commercial lines segment. I'll also comment on our reinsurance placement and then Brad Martz will expand on the financial results for the first quarter. Over the last two years, we've been exiting our personal lines business written by UPC Insurance Company. This eventually culminated in receivership of United P&C Insurance Company on February 27. We are working diligently with the Department of Financial Services to support policyholders and complete the separation of UPC Insurance Company. The deconsolidation of UPC as of the effective date of February 27, drive some extreme numbers such as the net income of $260 million in our first quarter financial results. However, if you focus on the results of continuing operations as well as the results of our commercial lines portfolio, you'll get a better picture of our current and future business. First, it's worth noting that we do believe that the legislative changes made in May and December of last year will prove to be an effective litigation of some of the excessive litigation issues in Florida over the last half dozen years. The pre-suit notification of intent to litigate, the time to report reduced to one year, the elimination of the one-way attorney fees and the assignment of benefits as well as other changes will work their way through the system to reduce loss costs and subsequently insurance premium rates over time. Industry estimates seem to suggest that these reductions will be approximately a 25% reduction in loss rates. However, it will take some time for…

Thank you, Dan, and hello. This is Brad Martz, the President and CFO of UIHC. I'm pleased to review our financial results but encourage everyone to review the Company's press release, investor presentation and forms, 10-Q and K for more information regarding our performance. Page 3 of our investor presentation supplement provides a summary of the quarter ending March 31, 2023, which included GAAP net income of $260.9 million or $5.99 a share compared to a net loss of $33.2 million or $0.77 a share last year. This included a non-recurring gain from discontinued operations of $230.3 million or $5.29 a share resulting from the deconsolidation of our former affiliate, United Property & Casualty Insurance Company. Last year, we did not have discontinued operations, so certain amounts for 2022 have been recast, consistent with the disclosure requirements for discontinued operations that helped improve comparability between the prior year. Most meaningful results this period, as Dan mentioned, is the earnings from continuing operations before tax of $40.4 million. That compared favorably to $5.6 million last year, an increase of approximately 619% year-over-year. After tax, net income from continuing operations was $30.5 million or $0.78 a share, which also compared favorably to $4.6 million or $0.11 a share a year ago. Page 4 of our investor presentation provides a reconciliation of net income to core income, which is a non-GAAP measure we believe is the best metric of comparability between periods by excluding gains and losses from investments in the discontinued operations as well as non-cash amortization of intangible assets. Core income for the first quarter 2023 was $30.9 million or $0.71 a share compared to only $6 million or $0.14 a share last year. Our combined ratio dropped to 70.5%, a significant improvement from over 191% last year. In current year,…