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 ...

Financial Performance - Gross premiums written for Q2 2024 were $229.449 million, a decrease from $236.822 million in Q2 2023, representing a decline of 5.8%[150] - Net premiums earned for Q2 2024 were $63.381 million, down from $78.014 million in Q2 2023, reflecting a decrease of 18.8%[150] - Total revenues for Q2 2024 were $68.656 million, compared to $73.542 million in Q2 2023, indicating a decline of 6.4%[150] - Income from continuing operations for Q2 2024 was $19.073 million, down from $21.244 million in Q2 2023, a decrease of 10.2%[150] - Consolidated net income for Q2 2024 was $19.054 million, compared to $17.779 million in Q2 2023, an increase of 7.2%[150] - Core income for Q2 2024 was $19.611 million, down from $27.073 million in Q2 2023, a decrease of 27.6%[150] - Total revenue for the three months ended June 30, 2024, was $68,656,000, down from $73,542,000 in the prior year, representing a decline of about 12.7%[152] - Net income from continuing operations for the three months ended June 30, 2024, was $19,073,000, compared to $21,244,000 in the same period of 2023, a decline of about 10.2%[152] - Net income for the three months ended June 30, 2024 increased by $1,275,000, or 7.2%, to $19,054,000 from $17,779,000 for the same period in 2023[199] Policy and Operations - Policies in-force decreased by 5.4% from 23,664 at June 30, 2023, to 22,395 at June 30, 2024[147] - The former subsidiary United Property & Casualty Insurance Company was placed into receivership, impacting the company's operations and financial results[146] - The company is in the process of selling Interboro Insurance Company, with the purchase price based on IIC's GAAP shareholders' equity at closing[145] - The company entered into a Sale Agreement with Forza on May 9, 2024, to sell 100% of the issued and outstanding stock of IIC, with the purchase price equal to IIC's GAAP shareholders' equity on the closing date[183] Investment and Assets - Cash, cash equivalents, restricted cash, and investment portfolio totaled $572,580,000 at June 30, 2024, an increase from $311,874,000 at December 31, 2023[162] - As of June 30, 2024, total investments amounted to $310,991 million, representing 54.3% of total assets, compared to $154,874 million or 49.5% as of December 31, 2023[163] - U.S. government and agency securities accounted for $155,733 million, or 27.2% of total investments as of June 30, 2024, up from $26,002 million or 8.3% at the end of 2023[163] - The total fixed maturities increased to $264,446 million, representing 46.2% of total assets, compared to $138,387 million or 44.2% previously[163] - Approximately 87.9% of fixed maturities were rated "A" or better as of June 30, 2024, indicating a strong credit quality in the investment portfolio[163] - The company's equity portfolio consists of mutual funds totaling $15,429,000[227] Reinsurance and Loss Ratios - The loss ratio, net for the three months ended June 30, 2024, was 24.1%, compared to 20.8% for the same period in 2023[152] - The combined ratio for the three months ended June 30, 2024, was 64.9%, compared to 63.1% in the prior year[152] - The underlying combined ratio for the three months ended June 30, 2024, was 66.4%, compared to 62.0% for the same period in 2023[152] - Reinsurance costs as a percentage of gross earned premium for the three months ended June 30, 2024, totaled 59.3%, compared to 47.9% in the same period of 2023[172] - The total ceding ratio for the six months ended June 30, 2024, was 60.1%, up from 43.6% in 2023, indicating increased reliance on reinsurance[172] Cash Flow and Financing - During the six months ended June 30, 2024, cash inflows from operating activities totaled $250,886,000, compared to cash outflows of $232,823,000 in the same period of 2023[223] - Cash provided by financing activities in the first half of 2024 amounted to $11,458,000, attributed to proceeds from the issuance of common stock[225] - The company made capital contributions of $1,265,000 to its reinsurance subsidiary, UPC Re, during the six months ended June 30, 2024[218] Expenses and Cost Management - Total expenses for the three months ended June 30, 2024, were $44,580,000, compared to $51,950,000 for the same period in 2023, a decrease of approximately 14.2%[152] - Expenses attributable to IIC for the three months ended June 30, 2024, increased by $1,210,000, or 17.1%, to $8,296,000 from $7,086,000 for the same period in 2023[187] - General and administrative expenses increased by $3,788,000, or 25.2%, to $18,813,000 for the six months ended June 30, 2024 from $15,025,000 for the same period in 2023[215] - Policy acquisition costs attributable to IIC increased by $357,000, or 9.3%, to $4,182,000 for the six months ended June 30, 2024 from $3,825,000 for the same period in 2023[197] Market Risks - The company is exposed to market risks, including interest rate risk, credit risk, and equity price risk, as disclosed in its Annual Report[227] - The commission for the equity distribution agreement is set at 3.0% of the gross proceeds from the sales of the shares[219]

Financial Data and Key Metrics Changes - The company reported a net income of $19.1 million for Q2 2024, with core income at $19.6 million, a decrease of $7.5 million year-over-year due to higher ceded earned premiums from the 40% gross catastrophe quota share effective June 1, 2023 [13] - Gross premium earned increased by $5.6 million to $165.5 million, while the combined ratio was 64.9%, up 1.8 points from 63.1% in the same period last year [13][14] - Operating expenses decreased by $7.1 million, primarily due to a 41% decrease in policy acquisition costs [14] Business Line Data and Key Metrics Changes - The company has transitioned to focusing solely on profitable Commercial Lines operations following the divestiture of Interboro Insurance Company, which is now classified as discontinued operations [7] - The company expects net income from continuing operations, excluding catastrophes, to be between $85 million and $95 million for the full year, indicating potential earnings growth of 43% to 77% year-over-year in the second half of 2024 [10] Market Data and Key Metrics Changes - The Florida commercial residential marketplace is showing signs of softening, but this is not expected to materially impact the company's expected margin, with a target underlying combined ratio of 65% still achievable [11] - The company plans to participate in the October 2024 Citizens Commercial Residential takeout, having identified several hundred policies that fit its underwriting criteria [12] Company Strategy and Development Direction - The company has diversified its reinsurance panel by adding eight new reinsurers and enhanced its core catastrophe reinsurance program, which is expected to positively impact revenue and earnings growth [9] - The company is focused on disciplined underwriting, maintaining terms and conditions while curbing exposures, particularly in peak zones [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to thrive through all parts of the insurance cycle since 2007, highlighting strong liquidity and capitalization improvements [15][16] - The company anticipates growth opportunities despite a softening market, with plans to selectively increase exposure following the recent reinsurance renewal [21] Other Important Information - Cash and investments grew by 83.6% to $573 million, reflecting a strong liquidity position [14] - Stockholders' equity increased by 32.2% to $223 million, driven by strong underwriting results [15] Q&A Session Summary Question: Discussion on TIV and policy count changes - Management noted that the total insured value (TIV) decreased by just under 2% and policy count by just under 6%, attributing this to disciplined underwriting practices [18][20] Question: Clarification on reinsurance program details - Management confirmed that the first event retention is $16 million, with net maximum reinstatement exposure of $14 million, and explained the complexities of reinstatement costs [22][23] Question: Impact of recent weather events - Management commented that the recent weather event was primarily a rain event, with minimal impact on the commercial residential portfolio, and noted only one small claim [26][27]

Financial Performance - Gross premiums written decreased by 3.1% to $229,449,000 compared to $236,822,000 in the prior year[3] - Net premiums earned fell by 18.8% to $63,381,000 from $78,014,000 year-over-year[3] - Total revenue declined by 6.6% to $68,656,000, down from $73,542,000 in the same quarter last year[3] - Income from continuing operations decreased by 10.2% to $19,073,000 compared to $21,244,000 in the prior year[3] - Consolidated net income increased by 7.2% to $19,054,000 from $17,779,000 year-over-year[3] - Core income fell by 27.6% to $19,611,000 from $27,073,000 in the same quarter last year[3] - Net income for Q2 2024 was $19.1 million, or $0.39 per diluted share, compared to $17.8 million, or $0.41 per diluted share in Q2 2023, reflecting a decrease of $2.1 million in continuing operations[17] - Total gross written premium decreased by $7.4 million, or 3.1%, to $229.4 million in Q2 2024 from $236.8 million in Q2 2023[18] - Total revenues for Q2 2024 were $68,656,000, a decline of 6.4% compared to $73,542,000 in Q2 2023[43] - Net income for Q2 2024 was $19,054,000, an increase of 7.2% from $17,779,000 in Q2 2023[43] Operational Efficiency - The combined ratio for the quarter was 64.9%, an increase of 1.8 percentage points from 63.1% in the prior year[10] - Loss and LAE decreased by $900 thousand, or 5.6%, to $15.3 million in Q2 2024 from $16.2 million in Q2 2023, with the loss ratio increasing to 24.1% from 20.8%[19] - Policy acquisition costs decreased by $9.6 million, or 40.9%, to $13.9 million in Q2 2024, primarily due to increased reinsurance ceding commission income[20] - General and administrative expenses increased by $3.5 million, or 54.7%, to $9.9 million in Q2 2024, driven by higher external service costs[21] - Total operating expenses decreased by $7.1 million, or 21.6%, to $25.9 million in Q2 2024 from $32.9 million in Q2 2023[15] Asset and Liability Management - Total assets increased to $1,311,285,000 as of June 30, 2024, up from $1,062,378,000 at December 31, 2023[44] - Total liabilities rose to $1,088,212,000 as of June 30, 2024, compared to $893,613,000 at December 31, 2023[44] - Cash and cash equivalents increased to $229,431,000 as of June 30, 2024, from $138,930,000 at December 31, 2023[44] - The company’s retained earnings improved to $(193,735,000) as of June 30, 2024, from $(237,389,000) at December 31, 2023[44] Book Value and Investment - Book value per share increased by 78.8% to $4.63 from $2.59 year-over-year[3] - Book value per common share increased by 28.3% from $3.61 at December 31, 2023, to $4.63 at June 30, 2024[26] - The underlying book value per common share increased by 26.7% from $3.97 at December 31, 2023, to $5.03 at June 30, 2024[26] - The company's cash and investment holdings increased from $311.9 million at December 31, 2023, to $572.6 million at June 30, 2024, driven by positive cash flows from operations[25] - The company reported a net unrealized gain on equity securities of $49,000 in Q2 2024, compared to a gain of $141,000 in Q2 2023[43] Strategic Initiatives - The company successfully placed its core catastrophe reinsurance program, increasing the exhaustion point from the prior year[5] - The company is focused on phasing out personal lines operations, having signed agreements for the sale of Interboro Insurance Company[5] - The company has entered into a Sale Agreement to sell 100% of its subsidiary, IIC, to Forza, which is expected to impact future financial results[40] - ACIC maintains a Financial Stability Rating of "A, Exceptional" from Demotech and an "A-" insurance financial strength rating with a Stable outlook by Kroll[30] - The company anticipates continued growth in the Florida market, driven by its exclusive partnership with AmRisc Group for condominium association properties[30] - Forward-looking statements indicate that ACIC expects to navigate potential risks and uncertainties while pursuing growth strategies in the insurance sector[41] Reclassification and Ratings - The company has reclassified prior year financial results to reflect continuing and discontinued operations appropriately, following the appointment of a receiver for its former subsidiary, UPC[40] - ACIC's core return on equity for the period was E%, reflecting strong underwriting performance[35] - The underlying combined ratio, excluding current year catastrophe losses, was D%, which highlights the company's operational efficiency[36] - American Coastal Insurance Corporation (ACIC) reported a core income of $X million for the quarter, reflecting a Y% increase compared to the previous year[34] - The company's combined ratio for the period was Z%, indicating an improvement from the prior year's ratio of A%[36]

Group 1 - American Coastal Insurance Corporation (ACIC) will release its financial results for Q2 2024 on August 7, 2024, after market close [1] - A conference call will be held at 5:00 p.m. ET on the same day, including live remarks and a Q&A session [1] - Interested parties can participate by dialing in 10 minutes before the call, with specific numbers provided for U.S. and international participants [1] 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 [2] - The company has an exclusive partnership with AmRisc Group for the distribution of condominium association properties in Florida [2] - 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 [2]