pih

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INVESTOR PRESENTATION

January 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.

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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 $7.57 (as of 1/9/2015)

Shares Outstanding 6.36 million

Market Cap $48.2 million (as of 1/9/2-15)

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

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


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

TARGETING THE CORRECT MARKETS

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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

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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

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“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

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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 PIH

Corporate structure:

1347 Property

Insurance

Holdings, Inc

Maison

Insurance

Company

Maison

Managers, Inc

ClaimCor, LLC

(Dec 2014)

POLICY COUNT TOTAL ASSETS

18,200 at 9/30/14 $69.1 million

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2012

MaisonInsurance

Company is Formed in October

2012

Completion of secondary

offering, raising $23 million, PIH expects to use proceeds for

growth into new markets

October 2012,Company

names Douglas Raucy

CEO

18,200 policies-in-force at

12/31/2014 compared to

11,500 at 12/31/2013

COMPANY HISTORY

201520142013

December 2012, Maison

participates in Louisiana

“wind/hail-only” depopulation from Citizens, LA’s state-run

insurer

Company reports

profitable operations in

2013 third quarter, begins

to achieve necessary scale

Completion of IPO raising

$17.4 million, Company

utilizes proceeds to

assume a larger number of policies in Louisiana

December 2012, Maison

assumes approx. 3,000 wind/hail-only policies from LA Citizens

December 2013, Maison assumes

approx. 3,500 wind/hail-only

policies from LA Citizens

Company reports profitable

operations in 2014 Third

Quarter; highlighted by $8.5 million in direct written

premiums

PIH signs definitive

agreement to acquire ClaimCor,

LLC

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Dec 1, 2014Company

announces stock

repurchase program


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 ShareState 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

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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

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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

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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

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9.3%

24.8%21.3%

0%

10%

20%

30%

40%

50%

Q1 Q2 Q3

Loss Ratio

2014


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

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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


$25,000,000 xs $30,000,000

RPP Cover


$17,000,000 xs $55,000,000

RPP Cover

$55,000,000

$72,000,000

Company Retention


$27,000,000 xs $3,000,000


$25,000,000 xs $30,000,000


$17,000,000 xs $55,000,000

Top & Aggregate

$19,000,000 xs $72,000,000

2014 Property Catastrophe Reinsurance Structure

6/1/2014 – 5/31/2015

REINSURNACE STRUCTURE

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CURRENT PREMIUM GROWTH

$0.4

$2.8

$8.0

$16.0

$5.7

$14.6

$23.1

$0M

$5M

$10M

$15M

$20M

$25M

Q1 Q2 Q3 Q4

Cumulative Direct Premiums Written

2013 2014

$0.9 $1.6

$2.4

$7.2

$4.1

$8.9

$13.3

$0M

$2M

$4M

$6M

$8M

$10M

$12M

$14M

Q1 Q2 Q3 Q4

Cumulative Net Premiums Earned

2013 2014

Q3 2014 highlighted by $8.5 million in direct premiums written

(63.2% year-over-year increase)

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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

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StateAggregate 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

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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):


CLAIMCOR, LLC. (ACQUIRED DEC 2014)

Current Coverage Territory

“The ClaimCor acquisition is part of our continuing

effort to build a streamlined operation that

supports our growth and lowers our expense ratio.”

- CEO Doug Raucy

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Based in St. Petersburg, FL

Established in 2013

Services include:

• Claim investigations

• Re-inspection services

• Litigation management and alternate

dispute resolution matters

• Flood claim handling

• Commercial and personal lines

underwriting inspections

Benefits to PIH

Compliments the company’s strategic plan and growth objectives

Additional source of revenue, complimentary to other subsidiaries

Will help PIH become a fully-integrated insurance provider

Reduces costs by internalizing services previously contracted to others


2014 2013

(in thousands, expect per-share amounts)

3rd

Quarter2nd

Quarter1st

Quarter4th

Quarter 3rd

Quarter2nd

Quarter1st

Quarter2013 Year

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

Total Expenses 3,484 3,775 1,866 1,531 979 1,319 2,406 6,235

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

Income tax expense (benefit) 420 438 604 342 29 (263) (504) (396

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

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

QUARTERLY P & L DATA

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(figures in millions, except per share data)

Company TickerPrice

@ 1 / 9 / 2015Market Cap

Price/Book Value

(LTM)

P/E(LTM)

Universal Insurance Holdings Inc. UVE $20.18 $691.7 3.57 x 10.83 x

HCI Group, Inc. HCI $44.13 $491.3 2.57 8.32

United Insurance Holdings Corp. UIHC $21.68 $441.3 2.35 10.82

Federated National Holding Company FNHC $25.76 $367.0 1.95 9.51

Heritage Insurance Holdings, Inc. HRTG $19.15 $564.3 2.46 15.20

MEAN 2.58 x 10.94 x

1347 Property Insurance Holdings, Inc. PIH $7.57 $48.6 0.98 7.71

Source: 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

0M 200M 400M 600M 800M

Price / Book

MarketCap

PIH

FNHC

UIHCHCI

HRTG

UVE

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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

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APPENDIX: FINANCIAL STATEMENTS


(in thousands) September 30, 2014 December 31, 2013

Assets (unaudited)

Investments:

Fixed income securities, at fair value (amortized cost of $7,258 and $301, respectively) 7,241 301

Short-term investments pledged, at cost which approximates value $ 201 $ 100

Total investments 7,442 401

Cash and cash equivalents 54,529 15,007

Premiums receivable, net allowance for doubtful accounts of $2 and $0, respectively 1,707 3,805

Ceded unearned premiums 1,608 1,126

Deferred policy acquisition costs 2,886 1,925

Net deferred federal income taxes 395 571

Other assets 491 343

Total Assets $ 69,058 $ 23,178

Liabilities and Shareholders’ Equity

Liabilities:

Loss and loss adjustment expense reserves $ 662 $ 354

Unearned premium reserves 15,902 11,004

Ceded reinsurance premiums payable — 50

Agent commissions payable 397 254

Premiums collected in advance 909 213

Payable to related party 193 2,668

Current income taxes payable 287 —

Accrued expenses and other liabilities 1,508 753

Total Liabilities 19,858 15,296

Shareholders’ Equity:

Common stock, $0.001 par value; authorized 10,000,000 shares; 6,538,125 and 1,000,000

issued and outstanding at September 30, 2014 and December 31, 2013, respectively $ 6 $ 1

Additional paid-in capital 47,622 8,749

Retained earnings (accumulated deficit) 1,583 (868)

Accumulated other comprehensive loss (11) —

Total Shareholders’ Equity 49,200 7,882

Total Liabilities and Shareholders’ Equity $ 69,058 $ 23,178

BALANCE SHEET

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(in thousands, unaudited) Three months ended September 30, Nine months ended September 30,

2014 2013 2014 2013

Revenues:

Net premiums earned $ 4,427 $ 829 $ 13,281 $ 2,438

Net investment income 48 193 76 47

Other income 61 39 181 45

Total revenues 4,536 1,061 13,538 2,530

Expenses:

Net losses and loss adjustment expenses 944 150 2,503 2,639

Amortization of deferred policy acquisition costs 1,111 312 3,054 704

General and administrative expenses 1,429 517 3,568 1,361

Total expenses 3,484 979 9,125 4,704

Income (loss) before income tax expense (benefit) 1,052 82 4,413 (2,174)

Income tax expense (benefit) 420 29 1,462 (738)

Net income (loss) $ 632 $ 53 $ 2,951 $ (1,438)

Less: Beneficial conversion feature on convertible preferred shares — — 500 —

Net income (loss) attributable to common shareholders $ 632 $ 53 $ 2,451 $ (1,436 )

Earnings (loss) per share – net income (loss) attributable to common

shareholders:

Basic: $ 0.10 $ 0.05 $ 0.64 $ (1.44)

Diluted: $ 0.10 $ 0.05 $ 0.63 $ (1.44)

Weighted average shares outstanding (in ‘000s):

Basic: 6,358 1,000 3,832 1,000

Diluted: 6,433 1,000 3,888 1,000

Consolidated Statements of Comprehensive Income (Loss)

Net income (loss) $ 632 $ 53 $ 2,951 $ (1,436)

Other comprehensive loss, net of taxes(1):

Unrealized gains on fixed income securities:

Unrealized gains arising during the period (21 ) — (11 ) —

Other comprehensive loss (21 ) — (11 ) —

Comprehensive income (loss) $ 611 $ 53 $ 2,940 $ (1,436)

1) Net of income tax expense of $11 and $0 for three months ended September 30, 2014 and

September 30, 2013, respectively ($5 and $0 for nine months ended September 30, 2014 and

September 30, 2013, respectively)

CONSOLIDATED STATEMENT OF INCOME

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(in thousands, unaudited) Nine months ended September 30,

2014 2013

Cash provided by (used in):

Operating activities:

Net income (loss) $ 2,951 $ (1,436)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Net deferred income taxes 182 (738)

Stock based compensation expense 116 —

Changes in operating assets and liabilities:

Premiums receivable 2,098 1,252

Ceded unearned premiums (482) (692)

Deferred policy acquisition costs (961) (744)

Loss and loss adjustment expense reserves 308 219

Premiums collected in advance 696 270

Due to related party (2,475) 1,595

Unearned premium reserves 4,898 4,227

Ceded reinsurance premiums payable (50) (74)

Current income taxes payable 287 —

Other, net 766 681

Net cash provided by operating activities 8,334 4,560

Investing activities:

Proceeds from sales of equity investments — 1,875

Purchase of fixed income securities (6,971) —

Net purchases of short-term investments (103) —

Net cash used in investing activities (7,074) 1,875

Financing activities:

Proceeds from issuance of preferred stock, net 2,000 —

Proceeds from issuance of common stock, net 36,262 —

Proceeds from capital contribution — 1,200

Net cash provided by financing activities 38,262 1,200

Net increase in cash and cash equivalents 39,522 7,635

Cash and cash equivalents at beginning of period 15,007 5,525

Cash and cash equivalents at end of period $ 54,529 $ 13,160

CONSOLIDATED STATEMENT OF CASH FLOWS

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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

Business

forwardlooking statements

years experience

years of experience

homeowners insurance

homeowners insurance

statements inresponse

ceo of maison insurance

president of audubon