Group 1 - ACM Research, Inc. (ACMR) is a semiconductor cleaning equipment provider with a Zacks Rank 1 and has seen a Zacks Consensus Estimate for its current year earnings increase by 18.4% over the last 60 days [1] - Oceaneering International, Inc. (OII) is an engineering and robotics company also carrying a Zacks Rank 1, with a Zacks Consensus Estimate for its current year earnings increasing by 0.7% over the last 60 days [4] - ACM Research has a price-to-earnings ratio (P/E) of 7.97, significantly lower than the industry average of 13.70, and holds a Value Score of A [4] - Oceaneering International has a P/E ratio of 17.89 compared to 25.17 for the S&P, and possesses a Value Score of B [3]

Group 1 - The article discusses American Coastal (NASDAQ: ACIC) as a contrarian underwriter that focuses on carefully pricing highly perceived risks to achieve exceptional returns on equity [1] - The author expresses admiration for great investors and emphasizes a willingness to invest in companies at the right price, particularly in emerging markets [1] - The article highlights the importance of maintaining an investment journal to track past successes and learn from failures, promoting an owner-mindset while largely ignoring macro-environment noise [1] Group 2 - The author mentions being influenced by notable economists and their works, particularly highlighting the impact of the book 'Economics in One Lesson' on their economic thinking [1]

Dividend Announcement - The Board of Directors of American Coastal Insurance Corporation declared a special cash dividend of $0.50 per share of common stock outstanding, payable on January 10, 2025, to shareholders of record on January 2, 2025 [1] Company Overview - American Coastal Insurance Corporation is the holding company of American Coastal Insurance Company, which was founded in 2007 to insure Condominium and Homeowner Association properties and apartments in Florida [2] - The company has an exclusive partnership with AmRisc Group for the distribution of Condominium Association properties in Florida, one of the largest Managing General Agents specializing in hurricane-exposed properties [2] - American Coastal Insurance Company has earned a Financial Stability Rating® of A, Exceptional from Demotech and maintains an A- insurance financial strength rating with a Stable outlook by Kroll [2] - ACIC holds a "BB+" issuer rating with a Stable outlook by Kroll [2]

Financial Performance - Gross premiums written for Q3 2024 were $93.016 million, a slight decrease from $93.986 million in Q3 2023[154]. - Net premiums earned increased significantly to $74.486 million in Q3 2024 from $50.264 million in Q3 2023, representing a 48.1% growth[154]. - Total revenues for Q3 2024 reached $82.136 million, compared to $52.532 million in Q3 2023, marking a 56.4% increase[155]. - Consolidated net income for Q3 2024 was $28.119 million, up from $10.568 million in Q3 2023, reflecting a 166.5% increase[155]. - Core income for Q3 2024 was $26.934 million, compared to $15.513 million in Q3 2023, representing a 73.8% increase[154]. - Total gross written premium decreased by $383,000, or 0.1%, to $507,066,000 for the nine months ended September 30, 2024, compared to $507,449,000 for the same period in 2023[222]. - Net income for the nine months ended September 30, 2024 decreased by $224,855,000, or 76.1%, to $70,772,000 from $295,627,000 for the same period in 2023[221]. Operational Efficiency - The loss ratio for Q3 2024 improved to 15.8%, down from 19.5% in Q3 2023[155]. - The combined ratio for Q3 2024 was 57.7%, a decrease from 62.7% in Q3 2023, indicating improved operational efficiency[155]. - Loss and LAE expense as a percentage of net earned premiums decreased by 7.6 percentage points to 63.5% for the third quarter of 2024, compared to 71.1% for the third quarter of 2023[198]. - The underlying loss and LAE ratio for the third quarter of 2024 was 5.1%, unchanged from the third quarter of 2023[218]. Catastrophe and Reinsurance - AmCoastal's core catastrophe reinsurance program provides coverage up to approximately $1,260,000,000 for a first occurrence, with a retention of $20,500,000[171]. - The all other perils catastrophe excess of loss agreement provides protection up to $172,000,000 in the aggregate, sufficient for a 1-in-450-year return period[172]. - The total catastrophe losses incurred for the three months ended September 30, 2024, amounted to $4,952,000, with a combined ratio impact of 6.6%[184]. - The company recorded a total of 4 catastrophe events during the three months ended September 30, 2024, compared to 2 events in the same period of 2023[184]. - The quota share agreement with UPC Re provides coverage for all catastrophe perils and attritional losses, effectively reducing retention for catastrophe losses[177]. Investment and Cash Flow - Total cash, cash equivalents, restricted cash, and investments amounted to $571,113,000 as of September 30, 2024, up from $311,874,000 at December 31, 2023[166]. - Cash inflows from operating activities totaled $241,907,000 for the nine months ended September 30, 2024, compared to cash outflows of $184,889,000 for the same period in 2023[237]. - Net purchases of investments totaled $162,893,000 for the nine months ended September 30, 2024, compared to net sales of investments of $263,877,000 during the same period in 2023[238]. - Cash provided by financing activities totaled $11,621,000 for the nine months ended September 30, 2024, compared to $38,000 for the same period in 2023, attributed to proceeds from the issuance of common stock[239]. - As of September 30, 2024, the equity portfolio consists of mutual funds totaling $25,950,000, marking the company's entry into equity securities[242]. Policy and Claims - Policies in-force decreased by 1.7% from 23,162 at September 30, 2023, to 22,775 at September 30, 2024[151]. - Unpaid losses and loss adjustment expenses totaled $173,322,000 as of September 30, 2024, down from $347,738,000 as of December 31, 2023[187]. - The cession rate for a specific treaty is set to decrease from 20% to 15% effective June 1, 2025, to June 1, 2026[178]. - The ceding premiums earned for IIC during the three months ended September 30, 2024, were $85,692,000, compared to $107,513,000 for the same period in 2023[181]. - The percentage of net earned premiums for loss and LAE increased by 0.9 points to 19.7% for the nine months ended September 30, 2024, compared to 18.8% for the same period in 2023[226]. Company Transactions - The company is in the process of selling Interboro Insurance Company (IIC) to Forza Insurance Holdings, with the closing subject to regulatory approvals[148]. - The company entered into a Sale Agreement with Forza to sell 100% of the issued and outstanding stock of IIC, with the closing subject to customary conditions[191]. - The company made capital contributions of $1,265,000 to its reinsurance subsidiary during the nine months ended September 30, 2024[233]. - The company entered into an equity distribution agreement for up to 8,000,000 shares, with 4,373,000 shares sold resulting in net proceeds of approximately $38,190,000[234].

Financial Data and Key Metrics Changes - American Coastal Insurance Corporation reported a net income of $28.1 million for Q3 2024, with core income increasing by $11.4 million year-over-year to $26.9 million due to lower ceded earned premiums from a reduction in gross catastrophe quota share from 40% to 20% [19][20] - Total revenue for the third quarter reached $82.1 million, reflecting significant growth driven by favorable reinsurance pricing [9] - The combined ratio improved to 57.7%, down from 62.7% in the same period last year, indicating strong underwriting performance [20] Business Line Data and Key Metrics Changes - The company experienced an increase in gross premium earned, which grew by $2.4 million to $160.2 million [20] - The company successfully participated in its first-ever takeout from Citizens, adding policies to its condo book and launching a new apartment program [10] Market Data and Key Metrics Changes - The company faced significant hurricane activity, with estimated after-tax losses of approximately $3.8 million from Hurricanes Debby and Helene, and $16.2 million from Hurricane Milton expected in Q4 [8][15] - Hurricane Milton, a Category 3 storm, resulted in an estimated gross loss of between $150 million and $200 million, marking the first event ceded to the core catastrophe excess loss reinsurance program this year [15][16] Company Strategy and Development Direction - The company aims to maintain a strong underwriting profit and expects the new non-cat margin run rate to continue in future quarters [9] - American Coastal is focused on enhancing its liquidity and capitalization to meet policyholder obligations following recent catastrophe losses [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in remaining profitable in Q4 2024 despite increased hurricane activity impacting Florida, noting that comparisons to prior periods are affected by the absence of hurricane losses in 2023 [18] - The company is optimistic about future opportunities and continuing profitable growth [25] Other Important Information - Cash and investments grew by 83.1% to $571.1 million, reflecting a strong liquidity position [22] - Stockholders' equity increased by 53.8% to $259.6 million, driven by strong underwriting results [22] Q&A Session Summary Question: No questions were raised during the Q&A session - The operator noted that there were no questions at this time, and the call was turned back to the CEO for closing remarks [24]

Earnings Presentation 3 rd Quarter 2024 November 6th, 2024 Company Overview ACIC is a specialty underwriter of catastrophe exposed property insurance. American Coastal Insurance Corp. (Nasdaq: ACIC) is the insurance holding company for two P&C carriers: American Coastal Insurance Company (AmCoastal) and Interboro Insurance Company (IIC) ¹ along with other operating affiliates. AmCoastal has the #1 market share of commercial residential property insurance (commercial lines) in Florida with roughly 4,000 poli ...

Core Viewpoint - American Coastal Insurance (ACIC) reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, and showing an increase from $0.34 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was 54.29%, with the company previously expected to post earnings of $0.30 per share but actually delivering $0.40 per share, resulting in a surprise of 33.33% [2] - Revenues for the quarter ended September 2024 were $82.14 million, which missed the Zacks Consensus Estimate by 2.81%, compared to $58.71 million in the same quarter last year [3] - Over the last four quarters, the company has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [3] Stock Performance - American Coastal shares have increased approximately 35.6% since the beginning of the year, outperforming the S&P 500's gain of 21.2% [4] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $79.51 million, and for the current fiscal year, it is $1.40 on revenues of $305.88 million [8] - The estimate revisions trend for American Coastal is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The Insurance - Property and Casualty industry is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [9] - Another company in the same industry, HCI Group, is expected to report quarterly earnings of $0.39 per share, reflecting a year-over-year decline of 72.3% [10]

Premiums and Revenue - Gross premiums written for Q3 2024 were $93.016 million, a decrease of 1.0% from $93.986 million in Q3 2023[3]. - Gross premiums earned increased by 1.5% to $160.178 million in Q3 2024, compared to $157.777 million in Q3 2023[3]. - Net premiums earned surged by 48.2% to $74.486 million in Q3 2024, up from $50.264 million in Q3 2023[3]. - Total revenue for Q3 2024 was $82.136 million, reflecting a 56.4% year-over-year increase from $52.532 million in Q3 2023[3]. - Total gross written premium decreased by $1.0 million, or 1.0%, to $93.0 million in Q3 2024 from $94.0 million in Q3 2023[15]. - Net investment income surged to $6,110 million in Q3 2024 compared to $2,087 million in Q3 2023, reflecting a 194% increase[42]. - Total revenues for Q3 2024 reached $82,136 million, up from $52,532 million in Q3 2023, marking a 56% increase[42]. Income and Profitability - Income from continuing operations, net of tax, rose by 84.3% to $27.669 million in Q3 2024, compared to $15.015 million in Q3 2023[3]. - Consolidated net income for Q3 2024 was $28.119 million, a significant increase of 166.1% from $10.568 million in Q3 2023[3]. - Net income for Q3 2024 was $28.1 million, or $0.57 per diluted share, compared to $10.6 million, or $0.24 per diluted share in Q3 2023, with a $12.7 million increase from continuing operations[14]. Financial Ratios and Performance Metrics - The combined ratio improved to 57.7% in Q3 2024, down from 62.7% in Q3 2023, indicating better underwriting performance[10]. - The core return on equity for Q3 2024 was 53.8%, compared to 183.8% in Q3 2023, reflecting a strong performance despite a decrease[7]. - The company reported a loss ratio of 15.8% for Q3 2024, down from 19.5% in Q3 2023, indicating improved loss management[10]. - The underlying combined ratio, which excludes current year catastrophe losses and prior year reserve development, is used to assess business trends without the impact of significant loss events[36]. Expenses and Costs - Policy acquisition costs rose by $7.3 million, or 53.7%, to $20.9 million in Q3 2024 from $13.6 million in Q3 2023, primarily due to a decrease in reinsurance commission income[17]. - General and administrative expenses increased by $2.2 million, or 36.7%, to $8.2 million in Q3 2024 from $6.0 million in Q3 2023, driven by increased overhead costs[18]. - Loss and LAE increased by $2.0 million, or 20.4%, to $11.8 million in Q3 2024 from $9.8 million in Q3 2023, with a decrease in loss and LAE as a percentage of net earned premiums by 3.7 points to 15.8%[15]. Book Value and Equity - Book value per share increased by 93.5% to $5.38 in Q3 2024, up from $2.78 in Q3 2023[3]. - Book value per common share increased by 49.0% from $3.61 at December 31, 2023, to $5.38 at September 30, 2024[24]. - Stockholders' equity rose to $259,582 million as of September 30, 2024, compared to $168,765 million at the end of 2023[43]. Cash and Investments - Cash, restricted cash, and investment holdings increased from $311.9 million at December 31, 2023, to $571.1 million at September 30, 2024, driven by positive cash flows from operations[22]. - The company’s cash and cash equivalents increased to $183,147 million as of September 30, 2024, from $138,930 million at the end of 2023[43]. - The Company's investment portfolio consisted of approximately 84.2% fixed maturities at September 30, 2024, down from 89.4% at December 31, 2023[22]. Ratings and Outlook - The company has a Financial Stability Rating of "A", "Exceptional" from Demotech, and an "A-" insurance financial strength rating with a Stable outlook by Kroll[31]. - The company maintains a 'BB+' issuer rating with a Stable outlook by Kroll, indicating a solid financial position[31]. - Forward-looking statements indicate that actual results may differ from estimates due to various risks and uncertainties[40]. Corporate Events and Communication - American Coastal Insurance Corporation will host its 2024 Investor Day on December 4, 2024, featuring presentations from senior leadership and highlighting operational developments[29]. - Investors are encouraged to submit questions for the Q&A portion of the upcoming Investor Day event[30]. - The company entered into a Sale Agreement to sell 100% of its subsidiary, IIC, to Forza Insurance Holdings, LLC on May 9, 2024[39]. Non-GAAP Measures - Core income (loss) is a non-GAAP measure that excludes amortization, discontinued operations, and investment portfolio gains/losses, providing a clearer view of operational performance[34]. - The company emphasizes the importance of non-GAAP measures for evaluating performance against historical results and establishing financial targets[35].

Core Points - American Coastal Insurance Corporation will host its 2024 Virtual Investor Day on December 4, 2024, at 11:00 a.m. Eastern Time [1] - The management team will present the Company's strategic initiatives, operational strategies, and financial outlook, followed by an interactive Q&A session [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 [3] - The Company has an exclusive partnership with AmRisc Group for the distribution of Condominium Association properties in Florida [3] - American Coastal Insurance Company has received a Financial Stability Rating of "A, Exceptional" from Demotech and an "A-" insurance financial strength rating with a Stable outlook from Kroll [3] - ACIC holds a 'BB+' issuer rating with a Stable outlook from Kroll [3]

ST. PETERSBURG, Fla., Oct. 23, 2024 (GLOBE NEWSWIRE) -- American Coastal Insurance Corporation (Nasdaq Ticker: ACIC) (“the Company”, “American Coastal” or “ACIC”) the insurance holding company of American Coastal Insurance Company (“AmCoastal”), announced estimated hurricane losses for the 2024 third and fourth quarters. The Company also expects to release its financial results for the third quarter ended September 30, 2024, on Wednesday, November 6, 2024, after the close of the market, and will conduct its ...