1. REINSURANCE AND THE FLORIDA INSURANCE MARKET Presented by John Auer President & CEO American Strategic Insurance Group

2. AGENDA Overview of ASI General timeline of reinsurance placement Reinsurance program considerations Structure of the 2011 ASI reinsurance program Participating reinsurance companies Factors affecting the price of reinsurance Premium impact

3. OVERVIEW OF ASI American Strategic Insurance group (ASI), headquartered in St. Petersburg, Florida, is the fourth largest property insurer in Florida and currently insures over 350,000 Floridians. ASI is rated A- Excellent by A.M. Best. ASI was founded in 1997 to provide a voluntary insurance market for Florida residential property. In 2003, ASI expanded into commercial lines of property insurance. ASI currently writes approximately $650 million of business in 16 states and D.C. Florida currently represents 56% of ASI’s total nationwide premium volume.

4. Placement complete February March April May Firm order to market Proposal to market Quotes received GENERAL TIMELINE Visit reinsurers

5. REINSURANCE PROGRAM CONSIDERATIONS Solvency –Ensure financial ability to keep our commitments to insureds –PML –Multiple events Pricing Rating Agencies

6. REINSURANCE PROGRAM CONSIDERATIONS Modeling Data –Managing exposure is a priority at ASI and many departments are involved, including Product Development, Underwriting, Finance, Marketing and Agents. –ASI licenses two hurricane models in an effort to better estimate hurricane risk. –ASI gradually incorporates model revisions into rates and overall portfolio management strategies. –ASI focuses on maintaining quality data to ensure that our rates and modeling results are accurate.

7. REINSURANCE STRUCTURE AIR v11 – 1:361 Year RMS v10 – 1:485 Year AIR v12 – 1:196 Year RMS v11 – 1:111 Year (Top of 2010 program –$ 975M) AIR v11 – 1:218 Year RMS v10 – 1:311 Year AIR v12 – 1:136 Year RMS v11 – 1:83 Year

8. REINSURANCE PARTICIPANTS The 2011-2012 ASI catastrophe reinsurance program has 42 participating reinsurers No reinsurer participates on more than 15% of the ASI catastrophe reinsurance program

9. REINSURANCE PRICING Company Specific Price Determinants Reinsurers’ evaluation of the company: Amount of insurance to home value Claims handling practices Underwriting guidelines Quality of data Concentration of business Marketwide Price Determinants Worldwide catastrophe activity Catastrophe models Supply and demand Investment yields

10. CONCENTRATION OF BUSINESS 2010 Market Share by County *FHCF TIV as of 12/31/10 ** ASI data as of 12/31/10 1 2 3 4 5 6 7 8 9 10

11. PREMIUM IMPACT * A 10% increase in private reinsurance costs would result in an additional need of approximately 2.8% of premium plus expenses.