CYPRESS PROPERTY & CASUALTY INSURANCE COMPANY Personal Lines Rate Hearing Homeowners Multi-Peril OIR File Number: FCP Room 116, Larson Building May 31, 2012

Summary & Agenda Cypress Property & Casualty Insurance Company Overview Started in 1999, two JUA takeout totaling 18,000 policies. Organic growth to 70,600 Personal Lines policies as of April Added Commercial small business general liability product in 2008 Gained Commercial residential filing approval in 2010 Goals & Objectives of Filing May 31,

Rebuilding of surplus strengthens claims paying ability Influence of SB 1A - wind mitigation credits and presumed factor Inability to leverage legislative funding Managing transition from FHCF historic benefit to private reinsurance higher ROL! Appropriate management of expenses while growing the business May 31, Source: Cypress P&C Annual Statement – P17 Ln26

Filing Objectives Target rates to be adequate and competitive in selected counties and territories match up with distribution partners and market needs. Expand in territories / counties previously limited due to inadequate rates and dislocation of capacity. Driving towards competitive HO6 program in many territories across the state. Provide better and more appropriate coverage for customers versus a Citizens Policy rates are usually the biggest challenge. Achieve Rate Adequacy Align with Cypress Distribution Partners Open territories & markets previously limited Become an alternative to Citizens for our agents and their customers May 31,

5 All Charts After This Page Are For Reference Only Do Not Prepare / Print out In Presentation

May 31, Source: Cypress P&C Homeowners Rate Filing Expense Analysis – Exhibit 5 Source: Cypress P&C Annual Statement – p17 ln6 Overall since 2008 Direct Written Premium has grown by 49% - All Lines HO Product Line expenses have increased 24% while premiums have grown over 30% during the same time frame.