pih march2015

1

INVESTOR PRESENTATIONApril 2015

1347 PROPERTY INSURANCE HOLDINGS NASDAQ: PIH

SAFE HARBOR

This document contains forward-looking statements and management may make additional forward looking statements in

response to your questions. Forward-looking statements include statements regarding the intent, belief or current

expectations of the Company and its management about the Company’s business, financial condition and results of

operations, among other factors. In some cases you can identify these statements by forward-looking words such as

“may,” “might,” “will,” “will likely result,” “should,” “anticipates,” “expects,” “intends,” “plans,” “seeks,” “estimates,” “potential,”

“continue,” “believes” and similar expressions, although some forward-looking statements are expressed differently. These

forward-looking statements are based on the Company’s current expectations and assumptions that are subject to risks

and uncertainties that may cause its actual results, performance, or achievements to differ materially from any expected

future results, performance, or achievements expressed or implied by such forward-looking statements. All statements

other than statements of historical fact are statements that could be deemed forward-looking statements. These risks and

uncertainties include, but are not limited to the level of demand for the Company’s coverage and the incidence of

catastrophic events related to its coverage; the Company’s ability to grow and remain profitable in the competitive

insurance industry; its ability to access additional capital; its ability to attract and retain qualified personnel; changes in

general economic, business and industry conditions; and legal, regulatory, and tax developments.

2

3

A homeowners’ insurance company in states where we believe there is a significant potential for generating high

returns on equity with controlled risk

Ticker (NASDAQ: PIH)

Stock Price $7.55 (as of 3/27/2015)

Shares Outstanding 6.36 million

Market Cap $48.0 million (as of 3/27/2015)

Sector / Industry Insurance

AT A GLANCE


Gordon G. PrattChairman

Douglas RaucyPresident and CEO

John Hill, CPAChief Financial Officer

Dean StroudVP of Underwriting

Bob GantleyVP and COO

• Over 20 years of executive insurance industry experience• Current or past director, investor, executive, or advisor to over two dozen

insurance enterprises• Chase Manhattan Bank, Conning & Company, Hales Group, Willis Group, Fund

Management Group

• President and CEO of Maison Insurance Co.• Founder of three homeowners’ insurance companies• Former head of Allstate’s national catastrophe team, over 20 years experience as an

Allstate employee in various positions

• CFO of Maison Insurance Co., previously CFO of three P/C insurance companies• Over 15 years experience in the Florida homeowners’ market• 10 years of experience at a “Big Four” accounting firm

• VP of underwriting for Maison Insurance Co.• Former President of Audubon Insurance Co. (AIG subsidiary)• Over 40 years of homeowner’ underwriting experience

• Over 35 years of experience in the industry, particularly in claims and underwriting• President of ClaimCor, a claim and underwriting technical solutions company

MANAGEMENT BACKGROUNDOVER 100 YEARS OF COMBINED HOMEOWNERS’ INSURANCE EXPERIENCE IN COASTAL STATES

4


Creating a homeowners’ insurance company in states where we believe there is a significant potential for generating high returns on equity with controlled risk

Market Criteria Includes:

Target states with high property premiums in U.S.

Seek favorable legislative environment

Areas where industry giants (State Farm, Allstate, Farmers) are looking to decrease coastalrisk exposure

Locations where management has experience in writing and managing wind-risk andindependent and captive agent contacts

Ability to grow to scale quickly in part due to an existing state-run depopulation program– State-run insurer provides property insurance to marketplace and looks to shrink over time by

allowing private insurers to “take out” policies and assume that risk

TARGETING THE CORRECT MARKETS

5


Integrated Insurance Company Targeting High Potential Markets

Management Team with Experience Establishing and Managing Coastal Business

Favorable Reinsurance Market

Plan for Expansion into Coastal States

COMPELLING INVESTMENT OPPORTUNITY

6


Announced Dec 1, 2014

500,000 shares of common stock over 12 month period

Repurchases will be made from time to timein open market transactions, privately-negotiated transactions, block purchases, orotherwise in accordance with Federalsecurities laws at the discretion of theCompany’s management.

STOCK REPURCHASE PROGRAM

“While investing in the expansion of our

business operations remains our first priority,

the Board’s consent to initiate the program is

a sign of the importance we place in the

Company’s ability to create long-term

profitable growth.”

-CEO Doug Raucy

7

8

BUSINESS OVERVIEW


PIH is a holding company that owns an admitted propertyand casualty insurance company based in Louisiana, doingbusiness as Maison Insurance Company, a managing generalagency (MGA) doing business in Louisiana, Maison ManagersInc., and a claims handling company ClaimCor, LLC

Maison Insurance Company provides full coverage to personalresidential dwellings on a multi-peril form to single familystructures including manufactured housing units.Additionally it provides reduced coverage and wind/hailonly coverage

Company is currently writing in Louisiana, seeking entryinto other coastal markets

ClaimCor, LLC is a claims and underwriting technicalsolutions company, acquired in December 2014. Based in St.Petersburg, Florida, the Company provides turnkey,customized, client centric claim and underwriting technicalsolutions to its business partners

WHAT IS 1347 PIHCorporate structure:

1347 Property Insurance

Holdings, Inc

MaisonInsurance Company

MaisonManagers, Inc

ClaimCor, LLC(Dec 2014)

POLICY COUNT TOTAL ASSETS

21,400 at 12/31/14 $74.2 million

9


Among the highest overall property insurance rates in the country

Low loss costs and attritional (non-catastrophe) loss ratios

Wind/hail-only policies are limited to providing coverage for these types of weather

Favorable regulatory environment

Significant opportunity to rapidly expand independent agent distribution network through ChiefUnderwriting Officer’s 40 years of experience in Louisiana homeowner market

Population 4.6 million

Total Number of Households Approximately 1.7 million

HomeownersDirect Premiums Written $2.6 Billion*

3-year CAGR for Direct Premiums Written (2011-2013) 3.45%

Top Three in Market Share State Farm / Allstate LA Citizens

* Source: U.S. Census, SNL Financial (Louisiana Homeowners Lines of Business) December 31, 2013 Personal Property – Homeowner Multi-peril, fire, allied lines

LOUISIANA MARKET

10


Louisiana Citizens Property Insurance Company(Citizens)

Citizens currently writes homeowners insurance for approximately 7% of Louisiana propertiesas an insurer of last resort

The state of Louisiana implemented an insurance “take-out” program to reduce the number ofproperties insured by Citizens

Under this take-out program, state-approved insurance companies, such as Maison, have theopportunity to assume insurance policies written by Citizens

Occurs annually, on December 1

Take-out company assumes risk / collects unearned premium immediately

LOUISIANA CITIZENSHOW IT WORKS

11


Since its founding, the Company has established a network of agents throughout Louisiana

Focus on service and quality claims handling

Company has seen steady organic policy growth since entering independent agency market

Policies written through independent agents are all-peril, including the wind/hail

New Orleans, LA Baton Rouge, LA

Lafayette, LA Lake Charles, LA

Other Policy Acquisition Opportunities

Renewal rights transactions to gain access to niche markets

Establish partnerships as entry to geographies and property segments

Independent Agency Locations

EFFECTIVE DISTRIBUTIONINCREASING THE POLICY BASE

12


Homeowners’

45%

Wind/Hail only34%

Manufactured Home19%

Dwelling Fire2%

Homeowners’: owner occupied dwellings, obtained through network of independent agents

Wind / Hail Only: protects insured from perils resulting only from wind and / or hail events, obtained through

Louisiana Citizens depopulations

Manufactured Home: began writing policies through a partnership with American Modern Insurance Group

Dwelling Fire: non-owner occupied dwellings

Policy Breakdown as of December 31, 2014

DIVERSE BOOK OF POLICIES

Type of Policy Policy Count% of Total

Policies in Force

Homeowners’ 9,617 45.0%

Wind/Hail only 7,260 33.9%

Manufactured Home 4,093 19.1%

Dwelling Fire 426 2.0%

Total 21,396 100.0%

13


Underwriting discipline to select quality risks for

wind/hail-only and full coverage policies

Develop products tailored for the market

Utilize technology to adequately assess insurance to value

Physically inspect every insured risk written organically throughindependent agents

Manage catastrophe risks through reinsurance, periodic modeling of in-force exposures and individual policy characteristics, e.g., roofengineering

Address classes of risks and rate adequacy with annual rate filings

Responsive, highly efficient, and experienced claims operation

As a result of the acquisition of ClaimCor, PIH will begin to realizeefficiencies and a direct cost savings from internalizing claims servicesduring 2015

DISCIPLINED UNDERWRITING PRACTICES

9.3%

24.8%21.3% 21.4%

0%

10%

20%

30%

40%

50%

Q1 Q2 Q3 Q4

Net Loss Ratio

2014

14


Reinsurance brokers predict increased reinsurance capacity and lower prices − “At July 1, we saw continued significant decreases in U.S. property catastrophe program

pricing.” –David Flandor, Global Head of Business Intelligence at Guy Carpenter

− “Capital available for reinsurance coverage hit a record $575 billion at the end of the third quarter, placing pressure on prices, according to broker Aon Benfield.” –Bloomberg News

Factors Influencing Global Supply of Reinsurance

+ Record levels of reinsurer capital

+ Increased investor interest in catastrophe bonds and similar collateralized facilities

- Continued low market valuations of reinsurers’ shares

= High reinsurance market supply

FAVORABLE REINSURANCE MARKET

The largest cost in homeowners’ insurance is reinsurance

15


Company has created a reinsurance program focused on preserving capital

Expects to utilize traditional reinsurance and the insurance-linked securities market to minimizereinsurance costs with 1-in-100 year event coverage and reinstatements

$1,000,000 xs $2,000,000Company Retention

Catastrophe Occurrence$27,000,000 xs $3,000,000

RPP Cover

$92,000,000

$3,000,000

$30,000,000

Top & Aggregate*$20,000,000 xs $72,000,000

1st Event 2nd Event

Top & Aggregate$19,000,000 xs $0

3rd and Subsequent

Events


RPP Cover


RPP Cover$55,000,000

$72,000,000

Company Retention




Top & Aggregate$19,000,000 xs $72,000,000

2014 Property Catastrophe Reinsurance Structure6/1/2014 – 5/31/2015

REINSURANCE STRUCTURE

16


CURRENT PREMIUM GROWTH

$0.4 $2.8

$8.0

$16.0

$5.7

$14.6

$23.1

$32.7

$0M

$5M

$10M

$15M

$20M

$25M

$30M

$35M

Q1 Q2 Q3 Q4

Cumulative Direct Premiums Written

2013 2014

$0.9 $1.6

$2.4

$5.0 $4.1

$8.9

$13.3

$18.5

$0M

$2M

$4M

$6M

$8M

$10M

$12M

$14M

$16M

$18M

$20M

Q1 Q2 Q3 Q4

Cumulative Net Premiums Earned

2013 2014

2014 highlighted by $32.7 million in direct premiums written (104% year-over-year increase)

17

18

GROWTH STRATEGY


HawaiiTexas Florida

EXPANSION INTO NEW MARKETS

PIH intends, either organically or through acquisition, to expand into other coastal states that fit their selection criteria and when timing is appropriate

Possible first-ever depopulation from Texas Windstorm Insurance Association (TWIA) in 2015

Large market opportunity

Potential partnership opportunities

Company would seek homeowners and “wind-only” policies and other underserved markets

Favorable legislative environment

Large market opportunity

Florida Citizens monthly depopulations



Last hurricane to hit Hawaii was Inikiin 1992, hit only one island, Kauai

Potential partnership opportunities

19


State Aggregate Premium in Targeted Markets % of Targeted Market

Florida (personal property) $12,937 50.4%

Texas (commercial multi-peril) $9,745 38.0%

Louisiana (personal property) $2,461 9.6%

Hawaii (personal property) $531 2.1%

Total $25,674 100.0%

Source: SNL Financial

MARKET OPPORTUNITIES

PIH’s goal is to capture between 2% and 3% of the

Louisiana market in its first three years of operation(approximately $61.5 M)

The following represents the approximate aggregate industry premiums for targeted markets in the states that PIH anticipates writing (in millions):

20


2014 2013

( in thousands ) 4th

Quarter3rd

Quarter2nd

Quarter1st

Quarter2014Year

4th

Quarter 3rd

Quarter2nd

Quarter1st

Quarter2013 Year

Total Revenues $ 5,427 $ 4,536 $ 4,829 $ 4,173 $ 18,965 $ 2,562 $ 1,060 $ 533 $ 936 $ 5,091

Total Expenses 4,111 3,484 3,775 1,866 13,236 1,531 979 1,319 2,406 6,235

Income (loss) before income tax 1,316 1,052 1,054 2,307 5,729 1,031 81 (786) (1,470) (1,144 )

Income tax expense (benefit) 621 420 438 604 2,083 342 29 (263) (504) (396

Net Income (Loss) $ 695 $ 632 $ 616 $ 1,703 $ 3,646 $ 689 $ 52 $ (523) $ (966) $ (748 )

* This use of cash was driven primarily by the purchase of fixed income securities.

QUARTERLY P & L DATA

21


(figures in millions, except per share data)

Company Ticker Price@ 3 / 27 / 2015 Market Cap

Price/Book Value

(LTM)

P/E(LTM)

Universal Insurance Holdings Inc. UVE $24.53 $819.9 4.13 x 11.79 x

HCI Group, Inc. HCI $43.11 $463.9 2.43 8.04

United Insurance Holdings Corp. UIHC $22.07 $458.0 2.27 10.77

Federated National Holding Company FNHC $28.70 $406.3 2.08 9.60

Heritage Insurance Holdings, Inc. HRTG $21.27 $631.7 2.52 11.69

MEAN 2.69 x 10.38 x

1347 Property Insurance Holdings, Inc. PIH $7.55 $48.0 0.99 10.69Source: Bloomberg and Wall Street Research Note: LTM = Latest Twelve Months

PEER COMPARISON

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

0M 200M 400M 600M 800M 1,000M

Price / Book

MarketCap

PIH

FNHCUIHC

HCI

HRTG

UVE

22


A homeowners’ insurance company focused on market geographies withaddressable needs

Dedicated management team with experience launching and rapidly expandingcoastal insurance companies Remaining focused on the markets we know

Clean balance sheet with no legacy issues

IPO and follow-on capital raises placed company in strong financial position tosafely expand

Opportunities for growth through partnerships with agency organizations andexpansion into other states

INVESTMENTS CONSIDERATIONS

23

24

For Additional Information

At The Company

Doug RaucyChief Executive [email protected]

Investor Relations

The Equity Group

Forrest HuntAssociate

[email protected]

CONTACT US

mailto:[email protected]

mailto:[email protected]

pih march2015

Economy & Finance

forwardlooking statements

years experience

years of experience

homeowners insurance

homeowners insurance

statements inresponse

ceo of maison insurance

president of audubon