2012 Initiative by Board of Governors - Increase Depopulation Activity Citizens has made several enhancements to its traditional depopulation program, including: o Chairman re-instituted the Depopulation Committee % g (retroactively applied to the 4th y pp o Eliminated the standard 16% ceding commission ( quarter of 2011) o Partnered with OIR to conduct insurer survey regarding barriers to depopulation o C Convened a D d Depopulation S l ti Summit it o Solicited depopulation ideas from interested parties o Improved depopulation communications with consumers o Enhanced policyholder education about potential of policyholder surcharges 2012 Initiative by Board of Governors - Increase Depopulation Activity (Continued) Citizens has made several enhancements to its traditional depopulation program, including: o Enhanced the volume and refinement of data used by take-out companies in evaluating assumed policies o Offer consultative services to assist takeout companies o Depopulation website has been enhanced to include additional takeout company information for consumers o Enhanced personal residential policy system to enable faster processing of assumptions and handle large depopulation volume in a single takeout o Enhanced commercial wind-only system to allow for the assumption of policies and document disbursement Historical Depopulation Activity Total Policies Assu ed 450.000 400.000 350.000 300.000 250.000 200.000 150.000 100.000 50.000 2003 ZTotal Policies Assumed --I--Tota| Exposure Assumed 2004 2005 2003 2004 2005 2006 200? 2008 2009 2010 2011 Nov2012 2006 200? 2008 Total Participating Total Policies Assumed Companies 1 28,219 4 158,416 10 293,684 4 62,853 14 385,084 11 149,645 ss,?s2 3 53,52? 5 229,502 3 2009 2010 2011 Nov2012 Total Assumed Exposure $8,140,681,906 $68,259,426,361 $106,8?0,490,165 $13,888,913,85?' 5120.000.000.00 5105.000.000.0 590.000.000.00 5?5.000.000.00 560.000.000.00 545.000.000.00 530.000.000.00 515.000.000.00 sons 0 Total Exposure Assumed [in thousands] (W CITIZENS I EESURA HIDE 2012 Depopulation Activity 12 307 71,633,157 January 15, 2012 Southern Clal-: Ins Co Dag 5 FLA FEM 3,239 $541,149,552 1: FEM 1 416 326 403 523 February 14, 2012 Florida Peninsula Ins Co DES a PL4 FEM 15,199 $3,332,535,255 Southern Fidel F8-LC lr'IS CD FLA FEM 36,30? 6,2012 arc Southern Oak mg CD Coastal FEM 1,422 $115,417,520 FLA FEM 3,24? $622,061,665 Southern Fidel PS-LC Ins Co FLA FEM 16,530 B, 2012 BY Southern Oak mg CD Coastal FEM 1 456 $146 156 392 FLA FEM 4,605 $533,325,502 Coastal FEM S33 $123,163,634 FLA FEM 3,153 $432,242,013 July 2512 Southern Dal-: Ins Co CIctoberEJ,2IZr12 FirstCommun Ins Co Bankers FLA PRM 2,993 Coastal 325 $221,293,245 PL4 55:51 23,595 $5,595,511,555 Coastal 3,355 $535,119,399 PL4 55:51 25,955 $5,451,542,554 November 5,2512 Southern Oak mg CD Coastal 1,199 $195,152,555 PLA FEM 4,235 $525,211,519 Coastal 12,435 $3,542,255,155 PLA FEM 42,535 $14,145,595,425 Southern Fidel Pec Ins Co PLA FEM 22,322 $5,545,955,549 American Integrity Ins Co Florida Peninsula Ins Co Homeowners Choice Ins Co 1: 171 3 615 600 American Co DES a $4 December 4, 2512 PL4 55:51 4,552 $1,355,352,945 Herita F84-.C Ins Co FLA FEM 42,222 $13,053,330,423 As of 12.10.2012 2012 Depopulation Activity by Company Company Name Company Name Amerian Integrity Ins Co of Florida First Community Ins Co Florida Peninsula Ins Co Florida Peninsula Ins Co Heritage Ins Co Homeowners Choice Ins Co Southern Fidelity Propery & Casualty Ins Co Southern Oak Ins Co Totals Data as of 12.04.2012 2012 29,346 2,998 35,935 42,722 59,968 80,769 25,264 277,002