AMERICAN COASTAL INSURANCE (ACIC) 8-K 2009 Fourth Quarter and Year-to-Date Highlights

Exhibit 99.1

FOR IMMEDIATE RELEASE

UNITED INSURANCE HOLDINGS CORP. REPORTS 2009 FOURTH QUARTER AND

YEAR-END FINANCIAL RESULTS

2009 Fourth Quarter and Year-to-Date Highlights

* The Company had 93,000 policies-in-force at December 31, 2009, reflecting a 16% increase over December 31, 2008, and a 3% decrease over September 30, 2009

* Gross premiums written for 2009 were $155.8 million representing at 10% year-over-year increase, and were $27.3 million for the fourth quarter representing a 21% decrease over last year’s fourth quarter

* Book value per share increased 12% to $4.55 at December 31, 2009, compared to $4.07 at December 31, 2008

* Cash and investment holdings increased to $160.1 million at December 31, 2009, compared to $155.7 million at December 31, 2008

St. Petersburg, FL – March 25, 2010:United Insurance Holdings Corp. (OTCBB: UIHC; UIHCW; UIHCU) (“United” or “the Company”), a property and casualty insurance holding company, today reported its financial results for the fourth quarter and for the year ended December 31, 2009.

For the fourth quarter, United reported a net loss of $1.2 million, or $0.11 per diluted share, compared to recording net income of $6.8 million, or $0.65 per diluted share, during the same period last year. For the year ended December 31, 2009, United generated net income of $4.1 million, or $0.38 per diluted share, compared to generating net income of $33.4 million, or $3.08 per diluted share, during 2008.

“While the state of Florida did not sustain a hurricane in 2009, we were dealt a perfect storm,” said Don Cronin, United’s CEO. “The combination of the impact of the wind-mitigation credits mandated by the State, a change in the Florida Hurricane Catastrophe Fund attachment point which required us to purchase additional private reinsurance, an overall increase in reinsurance rates and lower investment returns contributed to the decline in income in 2009.”

The Company took actions to reduce the downward pressure on earnings caused by the wind-mitigation credits and the increase in reinsurance costs. First, United filed for a rate increase on its homeowner product to offset the effects of the wind-mitigation credits, and the Florida Office of Insurance Regulation (“OIR”) approved the average 12.7% increase which took effect on September 15, 2009. Then the Company filed for another rate increase on its homeowner product to offset the effects of the increase in reinsurance costs, and the OIR approved the average 14.0% increase which took effect on March 15, 2010. Additionally, United slowed the writing of new policies in the second half of 2009 to control risk exposure that increased as a result of strong policy growth in late 2008 and early 2009.

United Insurance Holdings Corp.

March 25, 2010

“We have acted to reverse the downward pressure on our results, and we should begin to see an improvement in our margins in 2010,” said Mr. Cronin.

2009 Fourth Quarter Financial Review

• Gross written premiums decreased to $27.3 million from $34.7 million during the fourth quarter of 2008. The Company did not assume policies from Citizens during the fourth quarter of 2009, whereas it assumed policies from Citizens during the fourth quarter of 2008 totaling $5.7 million of premiums.

• Net premiums earned decreased to $16.3 million from $20.8 million in the fourth quarter of 2008 due to the decrease in gross written premiums and the increase in monthly reinsurance costs. Reinsurance costs have increased since the Company entered into its reinsurance contracts in June 2009 for the 2009 storm season, and that increase includes a $1.0 million charge in the fourth quarter for the Florida Hurricane Catastrophe Fund.

• Losses and LAE increased to $9.8 million from $3.1 million during the fourth quarter of 2008. The fourth quarter of 2008 benefited from a $4.0 million reduction in losses and LAE related to favorable loss development on claims submitted and paid during 2008, whereas the 2009 redundancy was recognized more smoothly throughout that year.

• Policy acquisition costs increased to $6.9 million in the fourth quarter of 2009 compared to $4.8 million in the prior year period primarily as a result of the increase in polices written in late 2008 and early 2009.

• Operating and underwriting expenses increased $0.9 million to $2.5 million due to a $1.0 million assessment from the Florida Insurance Guaranty Association (“FIGA”). The FIGA assessment raised funds to cover ongoing losses that FIGA continues to incur related to claims from the policyholders of insolvent insurers. In February, the Company began collecting a surcharge from policyholders that it believes will allow for full recovery of this assessment in the coming months.

• As a result of the aforementioned factors, the Company reported a net loss of $1.2 million for the fourth quarter of 2009, compared to net income of $6.8 million reported during 2008.

2009 Year End Financial Review

• Gross written premiums increased to $155.8 million from $141.6 million in the prior year period, primarily resulting from the growth in new business and improved policy retention.

• Net premiums earned decreased $2.9 million to $78.2 million primarily due to the increase in reinsurance costs for the June 2009 – May 2010 reinsurance contract period.

United Insurance Holdings Corp.

March 25, 2010

• United incurred an other-than-temporary impairment charge of $1.9 million in the first quarter of 2009 related to certain equity investments. The Company did not incur any additional impairment charges during the year.

• The Company recorded approximately $6.5 million of policy assumption bonuses from Citizens during 2008, while no such bonus was available during 2009.

• Losses and LAE increased by $12.7 million to $40.8 million primarily due to the 16% year-over-year increase in policies-in-force.

• Policy acquisition costs increased to $23.5 million from $17.6 million in the prior year resulting from the significant growth in new policies.

• Other income decreased by approximately $2.6 million. In the third quarter of 2008, United reversed a $2.6 million liability related to a put option which ceased to exist by operation of law as a result of the Company’s merger with United Insurance Holdings, L.C.

• As a result of the aforementioned factors, United reported net income of $4.1 million for the year ended December 31, 2009, compared to net income of $33.4 million during 2008.

Balance Sheet Highlights

United’s cash and investment holdings totaled $160.1 million at December 31, 2009, compared to $155.7 million at December 31, 2008. United’s cash and investment holdings consist primarily of investments in high-quality money market instruments, U.S. Government and agency securities and high-quality corporate debt. Fixed maturities represented approximately 96% and 93% of United’s total investments at December 31, 2009, and 2008, respectively.

Conference Call

The Company will hold its quarterly conference call to discuss these results on Friday, March 26, 2010, at 10:00 a.m. ET.

The dial-in numbers are:

(866) 861-6730 (US)

(706) 679-0882 (International)

A recorded replay of the call will be available until 11:00 p.m. EDT on March 31, 2010. Listeners may dial 800-642-1687 (Domestic) or 706-645-9291 (International) and use the code 55217732 for the replay.

A live webcast of the call can be accessed atwww.upcic.com in the “Events & Presentations” section. If you are unable to participate in the live call, the webcast version of the conference call will be available at the same link following the call. Listeners interested in participating in the Q&A session should go to the website at least 15 minutes early to register, download and install any necessary audio software.

United Insurance Holdings Corp.

March 25, 2010

About United Insurance Holdings Corp.

Founded in 1999, United Property & Casualty Insurance Company, a subsidiary of United Insurance Holdings Corp., primarily underwrites homeowners insurance in Florida. From its headquarters in St. Petersburg, United’s team of dedicated employees manages a completely integrated insurance company, including sales, underwriting, customer service and claims. The Company distributes its homeowners, dwelling fire and flood products through many agency groups and conducts business through four wholly-owned subsidiaries. Homeowners insurance constitutes the majority of United’s premiums and policies.

Forward-Looking Statements

Statements in this press release that are not historical facts are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “would,” “estimate,” “or “continue” or the other negative variations thereof or comparable terminology are intended to identify forward-looking statements. The forward-looking statements in this press release include statements regarding: the impact of the additional rate increases, the impact of reinsurance costs on our operating results, and the outlook for our business. The risks and uncertainties that could cause our actual results to differ from those expressed or implied herein include, without limitation, the success of the Company’s marketing initiatives, inflation and other changes in economic conditions (including changes in interest rates and financial markets); the impact of new Federal and State regulations that affect the property and casualty insurance market; the costs of reinsurance and the collectibility of reinsurance, assessments charged by various governmental agencies; pricing competition and other initiatives by competitors; our ability to obtain regulatory approval for requested rate changes, and the timing thereof; legislative and regulatory developments; the outcome of litigation pending against us, including the terms of any settlements; risks related to the nature of our business; dependence on investment income and the composition of our investment portfolio; the adequacy of our liability for losses and loss adjustment expense; insurance agents; claims experience; ratings by industry services; catastrophe losses; reliance on key personnel; weather conditions (including the severity and frequency of storms, hurricanes, tornadoes and hail); changes in loss trends; acts of war and terrorist activities; court decisions and trends in litigation, and health care; and other matters described from time to time by us in our filings with the Securities and Exchange Commission, including, but not limited to, the Company’s Annual Report on Form 10-K for the year ended December 31, 2009. In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when a reserve is established for a major contingency. Reported results may therefore, appear to be volatile in certain accounting periods. The Company undertakes no obligations to update, change or revise any forward-looking statement, whether as a result of new information, additional or subsequent developments or otherwise.

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CONTACT:	-OR-	INVESTOR RELATIONS:
United Insurance Holdings Corp.		The Equity Group Inc.
Joe Peiso		Adam Prior
Chief Financial Officer		Vice President
(727) 895-7737 /jpeiso@upcic.com		(212) 836-9606 /aprior@equityny.com
John Rohloff
SEC Reporting Manager
(727) 895-7737 / jrohloff@upcic.com

United Insurance Holdings Corp.

March 25, 2010

Condensed Consolidated Statements of Income

In thousands, except share and per share amounts

	Three Months Ended December 31,						Year Ended December 31,
	2009			2008			2009			2008
	(unaudited)
REVENUE:
Gross premiums written	$	27,312		$	34,748		$	155,840		$	141,556
Gross premiums ceded		(2,355	)		(2,750	)		(91,979	)		(59,251	)
Net premiums written		24,957			31,998			63,861			82,305
Decrease (increase) in net unearned premiums		(8,635	)		(11,228	)		14,320			(1,161	)
Net premiums earned		16,322			20,770			78,181			81,144
Net investment income		1,115			1,583			4,831			6,632
Net realized investment gains (losses)		1,057			(40	)		1,837			1,116
Other-than-temporary impairment of investments		—			—			(1,878	)		—
Commission and fees		720			748			3,180			2,778
Policy assumption bonus		—			51			—			6,493
Other revenue		236			568			2,318			2,899
Total revenue		19,450			23,680			88,469			101,062
EXPENSES:
Losses and loss adjustment expenses		9,823			3,089			40,755			28,063
Policy acquisition costs		6,917			4,788			23,482			17,616
Operating and underwriting expenses		2,490			1,572			8,010			6,460
Salaries and wages		685			1,131			3,473			3,466
General and administrative expenses		593			1,311			3,245			3,607
Interest expense		817			848			3,177			2,811
Total expenses		21,325			12,739			82,142			62,023
Income (loss) before other income		(1,875	)		10,941			6,327			39,039
Other income		—			—			—			2,564
Income (loss) before income taxes		(1,875	)		10,941			6,327			41,603
Provision for (benefit from) income taxes		(694	)		4,092			2,270			8,184
Net income (loss)	$	(1,181	)	$	6,849		$	4,057		$	33,419
OTHER COMPREHENSIVE INCOME:
Change in net unrealized holding gain (loss) on investments		2,182			(1,685	)		4,152			(2,465	)
Reclassification adjustment for net realized investment (gains) and losses		(1,057	)		40			(1,837	)		(1,116	)
Reclassification adjustment for recognized other-than- temporary impairments		—			—			1,878			—
Income tax benefit (expense) related to items of other comprehensive income		(434	)		619			(1,595	)		1,347
Total comprehensive income (loss)	$	(490	)	$	5,823		$	6,655		$	31,185
Weighted average shares outstanding
Basic		10,573,932			10,548,932			10,568,247			10,548,932
Diluted		10,573,932			10,548,932			10,568,247			10,854,743
Earnings per share
Basic	$	(0.11	)	$	0.65		$	0.38		$	3.17
Diluted	$	(0.11	)	$	0.65		$	0.38		$	3.08
Dividends declared per share	$	0.05		$	—		$	0.15		$	—
PRO FORMA COMPUTATION OF INCOME TAXES FOR HISTORICAL PERIOD PRIOR TO THE MERGER (Unaudited):
Historical income before income taxes										$	41,603
Pro forma provision for income taxes											16,048
Pro forma net income										$	25,555
Pro forma earnings per share
Basic										$	2.42
Diluted										$	2.35

United Insurance Holdings Corp.

March 25, 2010

Condensed Consolidated Balance Sheets

In thousands, except share and par value amounts

	December 31, 2009		December 31, 2008
ASSETS
Investments available for sale, at fair value:
Fixed maturities (amortized cost of $125,920 and $116,845, respectively)	$	128,020	$	117,694
Equity securities (cost of $5,000 and $11,462, respectively)		4,704		8,224
Other long-term investments		300		300
Total investments		133,024		126,218
Cash and cash equivalents		27,086		29,494
Accrued investment income		1,119		1,392
Premiums receivable, net		7,544		10,216
Reinsurance recoverable on paid and unpaid losses		25,477		22,604
Prepaid reinsurance premiums		40,285		26,518
Deferred policy acquisition costs, net		9,256		10,214
Property and equipment at cost, net		322		294
Capitalized software, net		1,203		1,232
Income tax receivable		1,605		—
Deferred income tax assets, net		—		2,744
Other assets		837		1,139
Total Assets	$	247,758	$	232,065
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses	$	44,112	$	40,098
Unearned premiums		73,831		74,384
Reinsurance payable		28,162		16,694
Advance premiums		3,824		2,152
Accounts payable and accrued expenses		6,761		10,676
Income taxes payable		—		1,366
Deferred tax liabilities, net		106		—
Other liabilities		1,463		2,465
Notes payable, net		41,428		41,303
Total Liabilities		199,687		189,138
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding for 2009 and 2008		—		—
Common stock, $0.0001 par value; 50,000,000 shares authorized; 10,573,932 and 10,548,932 issued and outstanding for 2009 and 2008, respectively		1		1
Additional paid-in capital		75		—
Accumulated other comprehensive income (loss)		1,108		(1,490	)
Retained earnings		46,887		44,416
Total Stockholders’ Equity		48,071		42,927
Total Liabilities and Stockholders’ Equity	$	247,758	$	232,065