From the Desk of the CEOJohn Forney, President and Chief ExecutiveOfficer

Greetings from St. Petersburg, FL! Thanks to all our partners for yourongoing support for UPC Insurance as we continue to grow thebusiness and work toward our vision of becoming the premierprovider of property insurance in catastrophe exposed areas.Companies are nothing more (and nothing less) than the collectionof people who bring them to life, and the people at UPC Insuranceare passionate about keeping the promise we make to ourcustomers and partners. I am fortunate to be able to lead such anamazing group of associates, and feel honored that all of our agents,investors, reinsurance partners, and regulators continue to put theirtrust in our company. We work every day to earn that trust again andagain.

• From the Desk ofthe CEO

• UPC on the Move!

• Underwriting MadeEasy

• UPC PostsOutstandingThird Quarter

• Sales Update

• Fast, Fair andFriendly ClaimsService

• IT News

• Legal

UPC ChiefUnderwriting OfficerAwarded Women inInsurance LeadershipAward

We are proud toannounce that JudyCopechal, ChiefUnderwriting Officer at

We recently reported our financial results for the third quarter of2014, and they reflect the fruits of our partnership: licenses in fouradditional states (Virginia, Delaware, Maryland, and Mississippi),bringing the total number of states in which we are licensed to 15;more than $100 million of earned premium during the quarter for thefirst time in company history; and continued strong growth in ournewest line, commercial residential. We now have more than $600million in assets and almost $200 million of equity in our company.That financial strength is there – as it has been for the past 15 years– only to help us pay claims timely and fairly, which we have donethrough 16 separate hurricanes and tropical storms during ourhistory. Throughout this time, we have improved our processes,strengthened our team, and kept our promises. Today, we stillbelieve in “old-world” claims service. One key component of suchservice is freedom of choice.

We believe in freedom of choice in claims repair service, and thatmeans unlike some companies we will never force our customersinto a “managed care solution” for claims that inhibits choice andreduces quality. We pay, you choose. It’s that simple. That’s a win-win solution tailored not to meet our goals, but yours.

Until next time,

John ForneyChief Executive Officer

UPC on the Move!Deepak Menon, VP of Operations and BusinessDevelopment

UPC Insurance, wasnamed one of 2014’sTop 10 Women inInsurance Leadershipby Insurance

Networking News. TheWomen in InsuranceLeadership programhonors extraordinaryaccomplishments ofwomen professionalswhose leadership andperformance haveredefined the insurancebusiness and itsapplication oftechnology.Read More.

Join Us in WelcomingOur Newest UPCAssociates Read Full DetailsHere.

............................SALES

Margaret Miller,State Sales Director forLouisiana

Announcing Additionof Inside Sales TeamWith approximately1,900 appointedagencies, Florida isUPC’s largest territory.While Florida has ateam of experiencedTerritory SalesManagers, it wasimpossible to touch allof our agent-partners.As a result, we haveadded three Inside

UPC is executing its strategy to be the premier provider of propertyinsurance in catastrophe exposed areas from Texas to Maine. UPCcurrently writes in seven states. The product team has already filedprograms in Louisiana, Connecticut, and Georgia. We will also file inNew Hampshire by the end of the year. We are not yet finished. Wehave licenses in four additional states (Mississippi, Maryland, Virginiaand Delaware). Next year will be a very busy year for us. We are inthe process of obtaining the remaining licenses in our target areas.UPC plans on filing products in five additional states in 2015. We aredoing all this in a carefully planned way, ensuring that we have theinfrastructure and resources in place to support our growth prior toentering each additional state.

On the commercial front, UPC is investing in building a premiercommercial team. The team is headed by Judy Copechal, our newChief Underwriting Officer.

The commercial team will improve our product offering in our homestate and expand our commercial footprint into three additionalstates. We currently write commercial residential only, but we are inthe process of evaluating other lines of commercial coverages tooffer our agents. Stay tuned!

Underwriting Made EasyJudy Copechal, AU, Chief Underwriting Officer

Ease of doing business is just one of the five foundations of ourcommitment to keeping the promise to both our agents andpolicyholders. Underwriting and ease are not typically synonymous.It is our goal to help you view them synonymously when you think ofUPC for new business. As UPC’s new Chief Underwriting Officer, mypromise to you is to listen and respond to your feedback on how wecan partner to improve the underwriting process. Please email me atunderwriting@upcinsurance.com. I would love to hear from you!Read more.

CommercialProperty We have announcedpreviously the addition ofcommercial to our suite ofproducts. One of ouraccomplishments is that

we’ve implemented a Commercial Residential Condo Propertyprogram in Florida… See more.

Sales Managers to formour Inside Sales Team:Ellen Craft, KatelynDiFrancesco andCasey Rio. Read More.

............................UNDERWRITING

Judy Copechal, ChiefUnderwriting OfficerMargaret Gutierrez-Leavelle, CommercialUnderwriterElizabeth Corral,Commercial ProductManagerCarol Curry,Commercial LinesManager Mike Calfee, PersonalLines Underwriter

.............................MARKETING

Monika Smolaczyk,Director of MarketingChristina Romero,Marketing Coordinator

.............................CLAIMS

Robin Stokes,National LitigationManager

We are saddened withour recent loss ofJennifer Hawkins whosuddenly andunexpectedly passedaway in October. Jennifer was a UPCClaims employee forover ten years, andserved as our ClaimsOperations Supervisor

UPC Posts Outstanding FinancialResults for Third QuarterB. Bradford Martz, Chief Financial Officer

UPC posted outstanding financial results for the quarter endingSeptember 30, 2014. Strong premium growth, lower reinsurancecosts (despite buying significantly more coverage) and the lack ofcatastrophe losses all helped fuel strong profitability and surpluslevels. See the stats.

Sales UpdateJay Williams, Vice President of Sales & Agency

Relations

Consistent with three of the UPC Foundations – products that work,ease of doing business and fair pricing, we have undergone athorough review of our HO3 product and our DP offering. As a result,we have begun a phased rollout of changes aimed at being yourpremier provider of property insurance. Read more about thesechanges in each state and their effective dates.

Fast, Fair and Friendly ClaimsServiceJohn Langowski, Vice President of Claims

responsible for ourFNOL Call Center andall incoming andoutgoing mailcommunicationsbetween Claims andpolicyholders. We willmiss her greatly.

Tips and AdviceHiring a Contractor? Here’s One Question You Can’t Afford Not to Ask

Each of us occasionally hires local contractors and individuals toservice our homes – painters, lawn services, tree trimmers, powerwashers, etc. If you or one of your policyholders hires such aservice, be sure these service providers have their own tools,ladders and equipment. If you or a policyholder is asked to providesuch items to a service person to conduct work on your home, bewary. By providing equipment to a service person you or yourcustomers hire, you will likely be liable should they suffer injuries orcause damage while using your equipment. Be sure that one of thequestions you ask each service firm is, “Do you have all the toolsand equipment to do the job?”

Pledging to Make UPC the EasiestCarrier to Work WithAndy Swenson, Chief Information Officer

One of the principal tenets of our company is being easy to dobusiness with. To that end, our IT department has been working to

add new capabilities that will simplify each and every interaction withUPC Insurance. In the past few months we have added electronicsignature capabilities for our agents, and once we have refined thatprocess we will be adding electronic signature to other functions aswell.

In addition, we recently updated the menus on our telephone-automated attendant to direct callers to the right customer service orclaims representative as quickly and simply as possible. In thefuture, we will be adding more new systems and tools as wecontinue to enhance as many interactions as possible.

While we embark on this journey, we welcome your suggestions forways we can make UPC Insurance easier to do business with.Please contact us with your ideas!

UPC Insurance is Your SafeBusiness PartnerKimberly Salmon, Esq., General Counsel & ChiefLegal Officer

An agent is entrusted with a fiduciary duty, or position of financialtrust. This duty requires an agent to be knowledgeable about theproducts they sell and the companies that provide them. Thisinvolves finding the product best suited for the client’s risk andfinancial circumstances. An agent is responsible for finding aproduct that is properly underwritten and provides the customer withfull legal rights. But it is just as important for a company toadminister claims in a fair and consumer-focused fashion.

UPC’s legal department is focused not only on the legal complianceof our products, but offering a premier product and keeping thepromise to its policyholders through exceptional claimsadministration service. It is not just about satisfying our customer’sneeds by making promises today, it is about being there for themtomorrow. UPC’s legal department is just another reason UPC is asafe and advantageous business partner for you.

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