<html><body dir="auto"><head><meta http-equiv="content-type" content="text/html; charset=utf-8"></head><blockquote type="cite"><div><div class="WordSection1"><p class="MsoNormal" align="center" style="text-align:center"><span style="font-family:"Times New Roman","serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Times New Roman","serif"">FOR IMMEDIATE RELEASE<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif"">June 5, 2015<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif"">Contact: Michael Peltier<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif"">(850) 513-3774<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p align="center" style="text-align:center"><b>Citizens Completes Financial Preparations for 2015 Hurricane Season</b><span style="font-size:10.0pt;color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif"">TALLAHASSEE, FL – Citizens Property Insurance Corporation this week completed its 2015 hurricane season preparations by closing a $1.0 billion bond transaction
to secure ready resources in the event of a major storm.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif"">On Tuesday, Citizens closed on the pre-event bonds that will provide the state’s insurer of last resort with readily available cash to pay claims immediately
following a catastrophe. <o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif"">The pre-event transaction consisted of $700 million of Series 2015A-1 fixed rate bonds and $300 million of Series 2015A-2 SIFMA Floating Rate Notes (FRNs). The
bond issue closed on June 2 and was co-led by Bank of America / Merrill Lynch as bookrunner for the Series 2015A-1 Bonds and J.P. Morgan as bookrunner for the Series 2015A-2 SIFMA FRNs.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif"">“An exceptionally strong demand was received from an ever-expanding array of retail and institutional investors,” said Citizens Chief Financial Officer Jennifer
Montero.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif"">In addition to the pre-event financing, Citizens continues to benefit from favorable global pricing to bolster its traditional reinsurance and capital market
risk transfer programs. The risk transfer program will provide more than $3.9 billion in protection following a major storm season and allow Citizens to pay claims in a 1-in-100 year storm without having to levy assessments.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif"">In May, Citizens finalized its 2015 risk transfer program with the purchase of $1.855 billion in traditional reinsurance and $2.05 billion in capital markets
transfer. The total cost for the 2015 program was roughly the same amount Citizens paid for $3.269 billion in coverage last year<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif"">Citizens entered the 2015 hurricane season June 1 in the strongest financial position since its creation in 2002. The state’s insurer of last resort has $7.5
billion in surplus and has reduced its policy count from nearly 1.5 million in October 2012 to fewer than 590,000 policies last week.
<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif"">Four years ago, Floridians faced a potential $11.6 billion assessment following a 1-in-100 year storm. Citizens now has the resources to pay claims in the event
of a “storm of the century” without having to levy assessments on Florida policyholders.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif"">Chris Gardner, Chairman of Citizens Board of Governors, said Citizens’ financial health is the result of a comprehensive approach that includes prudent risk
transfer, depopulation efforts and the Property Insurance Clearinghouse, which since January 2014 have combined to transfer nearly 550,000 policyholders to financially secure private companies.
<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif"">“Like our counterparts in the private sector, Citizens continues to strengthen its financial position and ability to serve its customers,” Gardner said. “Florida
has been lucky to have had nearly a decade of no storms and we have worked hard to take advantage of that good fortune. Citizens is ready.”<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-family:"Times New Roman","serif"">###<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><sub><span style="font-family:"Times New Roman","serif"">In 2002, the Florida Legislature created Citizens Property Insurance Corporation (Citizens), a not-for-profit alternative insurer, whose public purpose is to provide insurance to,
and serve the needs of, property owners who cannot find coverage in the private insurance market.<o:p></o:p></span></sub></p>
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