PresentationB. MartzPresident & CEO Hello. I'm Brad Martz, President and CEO of American Coastal Insurance Corporation. Here with me is our CFO, Svetlana Castle, who will also be presenting, and we welcome you to our Flash strategic update. This presentation is intended to share some exciting developments at ACIC. They are anticipated to create shareholder value by driving revenue and earnings growth over time. Accordingly, statements made in this presentation contain forward-looking statements as defined ...

American Coastal described itself as the market leader for Florida condominium associations, citing a number one market share and roughly 4,300 of approximately 17,000 condominium associations eligible for its product. Management said this represents most of the company’s $637 million of premium in-force at the end of the third quarter. Martz attributed the company’s track record—an underwriting profit every year since inception and 18 consecutive years of profitability in Florida—to underwriting discipline ...

American Coastal Insurance (NasdaqCM:ACIC) Update / briefing January 14, 2026 11:00 AM ET Company ParticipantsLana Castle - CFOBrad Martz - President and CEOBrad MartzHello. I'm Brad Martz, President and CEO of American Coastal Insurance Corporation. Here with me is our CFO, Lana Castle, who will also be presenting, and we welcome you to our Flash Strategic Update. This presentation is intended to share some exciting developments at ACIC that are anticipated to create shareholder value by driving revenue an ...

Core Viewpoint - Investors should closely monitor American Coastal Insurance Corporation (ACIC) stock due to significant movements in the options market, particularly the high implied volatility of the Feb 20, 2026 $9.25 Put option [1] Company Analysis - American Coastal Insurance is currently rated as Zacks Rank 3 (Hold) within the Insurance - Property and Casualty industry, which ranks in the top 39% of the Zacks Industry Rank [3] - Over the past 60 days, one analyst has raised the earnings estimate for the current quarter, while no analysts have lowered their estimates, resulting in a Zacks Consensus Estimate for the current quarter increasing from breakeven earnings per share to 43 cents [3] Options Market Insights - The high implied volatility surrounding American Coastal Insurance shares indicates that options traders are anticipating a significant price movement, which could suggest an upcoming event that may lead to a substantial rally or sell-off [2][4] - Options traders often seek out options with high implied volatility to sell premium, a strategy that aims to benefit from the decay of option value, hoping that the underlying stock does not move as much as initially expected by expiration [4]

Summary of American Coastal Insurance Conference Call Company Overview - **Company**: American Coastal Insurance Corporation (Ticker: ACIC) - **Industry**: Specialty insurance focused on commercial residential property insurance in Florida - **Market Position**: Holds the number one market share, insuring approximately 4,300 out of 17,000 condominium associations in Florida [2][3] Core Business Strategy - **Focus Shift**: Transitioned from personal loans and homeowners insurance to commercial residential insurance, with plans to expand outside Florida [3][4] - **Underwriting Profitability**: Achieved consistent underwriting profit since inception in 2007, even during adverse conditions [4][5] - **Risk Characteristics**: Targets low-rise, garden-style commercial residential buildings with an average total insured value of about $16 million, focusing on properties valued between $5 million and $60 million [5][12] Financial Performance - **2025 Financials**: As of September 2025, gross premium earned was nearly $500 million, with net premium earned at $228 million, reflecting a 15% growth [20][21] - **Return on Equity**: Core return on equity stands at 37.9% [21] - **Stockholders' Equity**: Reported at $1.2 million with total cash and cash equivalents increasing to $270 million from $137 million at the end of 2024 [21][22] Reinsurance Strategy - **Risk Transfer**: Utilizes extensive reinsurance to mitigate volatility, with a main catastrophe reinsurance program covering named hurricanes and tropical storms [16][17] - **Retention Levels**: Retains $30 million on the first event and $19 million on the second event, with total coverage of $1.3 billion [16] - **New Programs**: Introduced an aggregate CAT reinsurance program in 2025, providing additional protection against high-severity, high-frequency catastrophe events [17] Growth Opportunities - **New Product Launches**: Launched new underwriting programs for apartments and assisted living facilities through their own Managing General Agency (MGA) named Skyway [19][20] - **Market Expansion**: Plans to leverage underwriting capabilities to enter new products and geographies, enhancing growth potential [29][30] Capital Allocation and Shareholder Value - **Dividends and Buybacks**: Plans to focus on special dividends, increasing from $0.50 to $0.75 per share for 2024, with potential buybacks contingent on stock price performance [23][24] - **Long-term Leverage Goals**: Aims to maintain a leverage ratio of less than 25% [23] Market Conditions and Outlook - **Insurance Cycle**: Acknowledges the current softening cycle in the insurance market but remains optimistic about underwriting profitability through careful risk selection [14][30] - **Earnings Volatility Management**: Emphasizes the importance of reducing earnings volatility through strategic reinsurance rather than maximizing average earnings [25][26] Key Takeaways - **Strong Financial Position**: The company has a robust capital base and liquidity, allowing for growth without immediate debt financing [22] - **Focus on Underwriting Profit**: Prioritizes underwriting profit over aggressive growth, ensuring sustainable long-term performance [30][31] - **Strategic Partnerships**: Maintains a beneficial partnership with AmRisc for underwriting, while also developing internal capabilities through Skyway [10][11]

Group 1 - American Coastal Insurance Corporation declared a special cash dividend of $0.75 per share, payable on January 9, 2026, to shareholders of record on January 2, 2026 [1] - The company will host a fireside chat on January 14, 2026, to discuss its strategic initiatives, operational strategies, and financial outlook [2] - The fireside chat will be available in listen-only mode on the company's website, and stakeholders can submit questions in advance until December 31, 2025 [3] Group 2 - American Coastal Insurance Corporation is the holding company for American Coastal Insurance Company, which specializes in insuring condominium and homeowner association properties in Florida [4] - The company has an exclusive partnership with AmRisc Group for the distribution of condominium association properties in Florida [4] - American Coastal Insurance Company has received a Financial Stability Rating® of A, Exceptional from Demotech and an A- insurance financial strength rating with a Positive outlook from Kroll [4]

Core Insights - American Coastal Insurance Corporation (ACIC) will participate in several investor conferences in December 2025 to discuss strategic priorities, growth initiatives, and market outlook [1][2]. Company Overview - American Coastal Insurance Corporation is the holding company for American Coastal Insurance Company, which was established in 2007 to insure Condominium and Homeowner Association properties, as well as Apartments in Florida [4]. - The company has an exclusive partnership with AmRisc Group for the distribution of Condominium Association properties in Florida, focusing on hurricane-exposed properties [4]. - American Coastal Insurance Company has received a Financial Stability Rating of "A", "Exceptional" from Demotech, and an "A-" insurance financial strength rating with a Positive outlook from Kroll [4]. - ACIC holds a 'BBB-' issuer rating with a Positive outlook from Kroll [4]. Upcoming Events - The company will present at the Wolfe Research Small and Mid-Cap Conference on December 2, 2025, virtually [5]. - A presentation is scheduled for December 3, 2025, at 1:00 PM ET, with a replay available on the company's website [3]. - The company will also participate in Sidoti's Year End Virtual Investor Conference on December 10-11, 2025, with a live presentation on December 10 at 1:45 PM ET [3][5].

Core Viewpoint - American Coastal Insurance (ACIC) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which aggregates EPS estimates from sell-side analysts for the current and following years [2]. - The recent upgrade reflects a 48.1% increase in the Zacks Consensus Estimate for American Coastal over the past three months, with expected earnings of $2.00 per share for the fiscal year ending December 2025, showing no year-over-year change [9]. Impact on Stock Prices - Changes in earnings estimates are strongly correlated with near-term stock price movements, primarily due to institutional investors who adjust their valuations based on these estimates [5]. - The upgrade to Zacks Rank 2 positions American Coastal in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. - The system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, while the next 15% receive a "Buy" rating [10].

Financial Performance - Gross premiums written decreased by 22.8% from $93,016,000 in Q3 2024 to $71,812,000 in Q3 2025[182] - Net premiums earned increased by 8.4% from $74,486,000 in Q3 2024 to $80,818,000 in Q3 2025[182] - Consolidated net income rose by 15.5% from $28,119,000 in Q3 2024 to $32,483,000 in Q3 2025[184] - Core income per diluted share increased from $0.54 in Q3 2024 to $0.61 in Q3 2025, reflecting a growth of 12.9%[182] - Total revenues increased by 9.9% from $82,136,000 in Q3 2024 to $90,395,000 in Q3 2025[184] - ACIC net income for Q3 2025 increased by $4,364,000, or 15.5%, to $32,483,000 from $28,119,000 in Q3 2024, driven by continuing operations[223] - ACIC net income for the nine months ended September 30, 2025 increased by $9,501,000, or 13.4%, to $80,273,000 from $70,772,000 in the same period in 2024[235] Policy and Premiums - Policies in-force grew by 8.6% from 3,971 policies at September 30, 2024 to 4,343 policies at September 30, 2025[179] - Gross written premiums for the nine months ended September 30, 2025 decreased by $9,056,000, or 1.8%, to $498,010,000 from $507,066,000 in the same period in 2024[236] - Net premiums earned increased by $27,035,000, or 13.5%, to $227,533,000 for the nine months ended September 30, 2025, compared to $200,498,000 for the same period in 2024[237] Expenses and Loss Ratios - Total operating expenses increased by $2,618,000, or 5.7%, to $48,690,000 in Q3 2025 from $46,072,000 in Q3 2024, primarily due to increased policy acquisition costs[227] - Loss and LAE decreased by $2,563,000, or 21.8%, to $9,211,000 in Q3 2025 from $11,774,000 in Q3 2024[229] - The net loss and LAE as a percentage of net earned premiums decreased by 4.4 points to 11.4% in Q3 2025 from 15.8% in Q3 2024[229] - Total operating expenses increased by $23,812,000, or 30.5%, to $101,767,000 for the nine months ended September 30, 2025, compared to $77,955,000 for the same period in 2024[242] - Policy acquisition costs rose by $28,686,000, or 64.5%, to $73,162,000 for the nine months ended September 30, 2025, primarily due to a decrease in ceding commission income[243] - General and administrative expenses decreased by $4,874,000, or 14.6%, to $28,605,000 for the nine months ended September 30, 2025, largely due to a non-recurring employee retention tax credit refund[244] Cash and Investments - As of September 30, 2025, the company's total cash, cash equivalents, restricted cash, and investment portfolio amounted to $695,047,000, an increase from $540,811,000 at December 31, 2024, representing a growth of approximately 28.6%[198] - The company's cash and cash equivalents increased to $267,872,000 at September 30, 2025, compared to $137,036,000 at December 31, 2024, reflecting a growth of approximately 95.7%[199] - Net cash provided by operating activities decreased by $123,130,000, or 51.0%, to $118,777,000 for the nine months ended September 30, 2025, compared to $241,907,000 for the same period in 2024[250] - Net sales of investments totaled $12,896,000 during the nine months ended September 30, 2025, compared to net purchases of investments of $162,893,000 during the same period in 2024[253] - Cash provided by financing activities decreased by $10,847,000, or 93.3%, to $774,000 for the nine months ended September 30, 2025, compared to $11,621,000 for the same period in 2024[254] Reinsurance and Coverage - The company recognized a loss of $247,000 on the disposal of IIC, net of tax impacts, during the sale to Forza Insurance Holdings[178] - The company's catastrophe reinsurance program provides occurrence-based coverage up to approximately $1,330,000,000 for a first occurrence and $1,676,000,000 in the aggregate, with a first event GAAP retention of $29,750,000[202] - The new catastrophe aggregate excess of loss coverage effective January 1, 2025, provides $40,000,000 of aggregate limit with a $20,000,000 per occurrence cap after a $40,000,000 annual aggregate deductible[204] - The company’s core catastrophe reinsurance program includes coverage for a 1-in-203-year return period, indicating a probability of a single occurrence exceeding protection purchased of roughly 0.5%[202] Investment Portfolio - The company's total investments as of September 30, 2025, were $335,911,000, which is 48.3% of the total assets, compared to $341,418,000 or 63.2% at December 31, 2024, indicating a decrease in the proportion of investments[199] - The estimated fair value of U.S. government and agency securities decreased from $154,660,000 (28.7% of total) at December 31, 2024, to $96,087,000 (13.8% of total) at September 30, 2025[199] - The company’s total fixed maturities decreased from $281,001,000 (52.0% of total) at December 31, 2024, to $246,499,000 (35.5% of total) at September 30, 2025[199] - The company’s equity securities increased from $36,794,000 (6.8% of total) at December 31, 2024, to $52,585,000 (7.5% of total) at September 30, 2025[199] Shareholder Actions - As of September 30, 2025, the company had sold 4,373,000 shares under an equity distribution agreement, resulting in net proceeds of approximately $38,190,000[249] - The company made a capital contribution of $8,269,000 to its reinsurance subsidiary during the nine months ended September 30, 2025, compared to $1,265,000 in the same period of 2024[247]

Core Viewpoint - American Coastal Insurance (ACIC) reported quarterly earnings of $0.61 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and showing an increase from $0.54 per share a year ago [1] Earnings Performance - The earnings surprise for the quarter was +56.41%, with a previous quarter surprise of +42.11% when earnings were $0.54 against an expectation of $0.38 [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] Revenue Performance - American Coastal reported revenues of $90.4 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 6.20%, compared to $82.14 million in the same quarter last year [3] - The company has also topped consensus revenue estimates three times over the last four quarters [3] Stock Performance and Outlook - American Coastal shares have declined approximately 10.4% since the beginning of the year, while the S&P 500 has gained 15.1% [4] - The future performance of the stock will depend on management's commentary during the earnings call and the earnings outlook [4][5] Earnings Estimates and Industry Outlook - The current consensus EPS estimate for the upcoming quarter is breakeven on revenues of $83.98 million, and $1.35 on revenues of $326.12 million for the current fiscal year [8] - The Zacks Industry Rank for Insurance - Property and Casualty is in the top 26% of over 250 Zacks industries, indicating a favorable outlook for the sector [9]