Financial Data and Key Metrics Changes - The commercial lines segment now comprises over 90% of the third quarter gross written premium and 95% of the gross earned premium, with pretax income of $25.9 million in the third quarter and $90.2 million year-to-date [5] - Core income for the quarter was $14.9 million or $0.34 a share, an increase of nearly $33 million compared to a core loss of $18.1 million or $0.42 a share last year [10] - Net income from continuing operations improved to $14.4 million or $0.33 a share, approximately $42 million better than a net loss of $27.5 million or $0.64 a share in the same period last year [10] - The combined ratio for the third quarter improved over 70 points to 68.7% compared to last year [11] Business Line Data and Key Metrics Changes - The net loss ratio for commercial lines was 19.5% in the third quarter and 19.7% year-to-date, in line with expectations [6] - The commercial lines net expense ratio decreased to 33% in the third quarter and 35.6% year-to-date, down from 43% and 44.2% respectively last year [6] - The underlying combined ratio for the commercial segment was 48.9% in the third quarter and 54.3% year-to-date, down from 57.7% and 66.1% year-over-year [7] - Gross written premium for commercial lines increased by 22% through the third quarter and 31% year-to-date [8] Market Data and Key Metrics Changes - The total insured value for the commercial portfolio was down 14%, while the probable maximum loss at the 100-year return period decreased by 23% year-over-year [8] - Florida continues to be a hard market, with benefits from insurance reform leading to reduced litigation [8] Company Strategy and Development Direction - The company is divesting Interboro, its New York domiciled personal lines carrier, to focus on commercial lines [9] - The outlook for Florida's commercial marketplace remains unchanged, with expectations for a hard market in the near and intermediate terms [9] - The company launched an at-the-market common stock offering to raise between $10 million and $20 million to support exposure growth and optimize reinsurance spend [15] Management's Comments on Operating Environment and Future Outlook - Management noted that Hurricane Idalia had a minimal impact, with current loss estimates well below the reinsurance attachment point [6] - The company expects to continue benefiting from the hard market conditions in Florida, which are conducive to outsized returns on capital [15] Other Important Information - Stockholders' equity increased to $120.6 million or $2.78 a share, a 7.3% increase from the prior quarter [14] - Cash and invested assets totaled nearly $287 million, with total assets of approximately $1.15 billion [14] Q&A Session Summary Question: Current quota share agreements and potential for a captive MGA - Management indicated that they have two 20% quota shares and view them as instrumental in the current catastrophe reinsurance program, with plans to reduce these over time [19] - The company has a Class B reinsurer domiciled in Cayman and plans to utilize it more extensively going forward [20] Question: Current book value of Interboro - The current book value of Interboro is approximately $23 million [21] Question: Split between price and volume in the increase of gross written premiums - The volume is down about 13% to 14%, while the rate is up around 30% [25]

Financial Performance - Gross premiums written for Q2 2023 were $243.885 million, up from $207.632 million in Q2 2022, representing an increase of 17.4%[195] - Net premiums earned for Q2 2023 were $83.169 million, compared to $64.532 million in Q2 2022, reflecting a growth of 28.8%[195] - Total revenues for Q2 2023 reached $79.295 million, an increase from $63.910 million in Q2 2022, marking a rise of 24.0%[195] - Earnings from continuing operations for Q2 2023 were $20.352 million, a significant recovery from a loss of $13.311 million in Q2 2022[195] - Core income for Q2 2023 was $26.192 million, compared to a loss of $10.693 million in Q2 2022, indicating a turnaround in financial performance[195] - Net income from continuing operations for Q2 2023 was $20.352 million, a significant recovery from a loss of $13.311 million in Q2 2022[196] - Net earnings attributable to American Coastal Insurance Corporation for Q2 2023 increased by $86,808,000, or 125.8%, to $17,779,000 from a net loss of $69,029,000 in Q2 2022[231] - Net earnings for the six months ended June 30, 2023 increased by $387,260,000, or 378.9%, to $285,059,000 from a net loss of $102,201,000 for the same period in 2022[258] Premiums and Policies - The number of policies in-force decreased by 49.0%, from 46,401 at June 30, 2022, to 23,664 at June 30, 2023, due to the receivership of the former subsidiary UPC[192] - The company is seeking a buyer for Interboro Insurance Company (IIC) to exit the personal lines business, expecting the sale price to match the book value of the entity[193] - Gross written premiums rose by $36,253,000, or 17.5%, to $243,885,000 in Q2 2023 compared to $207,632,000 in Q2 2022, primarily driven by an increase in commercial premiums written[232] - Direct written premium by state for Florida increased by $57,578,000 to $236,766,000 in Q2 2023 from $179,188,000 in Q2 2022[233] - Total new and renewal policies decreased by 6,942, from 12,962 in June 2022 to 6,020 in June 2023[234] - Gross written premiums for the six months ended June 30, 2023 increased by $80,962,000, or 23.1%, to $431,008,000 from $350,046,000 in the same period in 2022[259] Expenses and Losses - Expenses increased by $7,043,000, or 13.5%, to $59,036,000 for the three months ended June 30, 2023, compared to $51,993,000 for the same period in 2022[235] - Loss and LAE increased by $6,883,000, or 49.1%, to $20,915,000 for the second quarter of 2023, with a net earned premium loss ratio of 25.1%, up 3.4 points from 21.7% in 2022[236] - Catastrophe losses incurred in Q2 2023 totaled $6,540,000, impacting the combined ratio by 7.9%, compared to a loss of $(2,113,000) and a combined ratio impact of (3.3)% in Q2 2022[223] - Unpaid losses and loss adjustment expenses (LAE) totaled $534,676,000 as of June 30, 2023, down from $842,958,000 as of December 31, 2022[227] - Loss and LAE for personal lines decreased by $1,168,000, or 20.0%, to $4,670,000 in Q2 2023 from $5,838,000 in Q2 2022[255] - Loss and LAE expenses decreased by $10,858,000, or 60.2%, to $7,181,000 for the six months ended June 30, 2023, compared to $18,039,000 for the same period in 2022[282] Investment and Cash Flow - Cash, cash equivalents, and investment portfolio totaled $241.714 million at June 30, 2023, down from $340.905 million at December 31, 2022[206] - The company reported net investment income of $2.692 million in Q2 2023, up from $1.839 million in Q2 2022, a growth of 46.5%[196] - Cash outflows from operating activities totaled $232,823,000 for the six months ended June 30, 2023, compared to cash inflows of $8,286,000 during the same period in 2022[292] - Net sales of investments amounted to $258,736,000 for the six months ended June 30, 2023, compared to $83,661,000 during the same period in 2022[293] Reinsurance and Ceding Ratios - The company entered into a quota share reinsurance agreement with TypTap Insurance Company, ceding 100% of UPC's in-force policies in Georgia, North Carolina, and South Carolina effective June 1, 2022[189] - The total ceding ratio for the three months ended June 30, 2023, was 47.4%, a decrease from 50.2% in the same period of 2022[216] - For personal lines, the total ceding ratio for the three months ended June 30, 2023, was 25.9%, compared to 19.6% in 2022[218] - Ceded premiums written for the three months ended June 30, 2023, totaled $339,004 million, up from $191,712 million in the same period of 2022[220] Segment Performance - Pretax earnings for the commercial lines segment increased by $6,595,000, or 35.1%, to $25,381,000 for the second quarter of 2023[239] - Gross written premiums for the commercial lines segment increased by $55,755,000, or 30.8%, to $236,822,000 for the second quarter of 2023[240] - Total expenses for the commercial lines segment increased by $12,233,000, or 38.6%, to $43,903,000 for the second quarter of 2023[244] - Pretax earnings for the personal lines operating segment improved by $11,839,000, or 78.5%, resulting in a pre-tax loss of $3,243,000 for the six months ended June 30, 2023, compared to a loss of $15,082,000 in the same period of 2022[276] - Gross written premiums for the personal lines segment decreased by $23,470,000, or 57.2%, to $17,545,000 for the six months ended June 30, 2023, down from $41,015,000 in the same period of 2022[277]

Investor Presentation Second Quarter 2023 Company Overview ACIC is a specialty underwriter of catastrophe exposed property insurance. American Coastal Insurance Corp. (Nasdaq: ACIC - effective ACIC as of June 30, 2023 8.15.2023) is the insurance holding company for two P&C Total Assets: $1.44 billion carriers: American Coastal Insurance Company (AmCoastal) and Interboro Insurance Company (IIC) along with other Total Equity: $106.5 million operating affiliates. Annualized Revenue: $339.2 million AmCoastal ha ...

Financial Data and Key Metrics Changes - The core income for Q2 2023 was $28.4 million or $0.65 per share, a 236% increase year-over-year from $8.5 million or $0.20 per share [12] - Net income from continuing operations was $22.6 million or $0.52 per share, compared to $5.8 million or $0.14 per share in the same period last year, driven by strong underwriting performance [12] - The combined ratio improved over 9 points to 67.7% compared to the previous year, fueled by a $36 million or 17% increase in premiums written year-over-year [13] Business Line Data and Key Metrics Changes - The commercial lines segment accounted for over 97% of the second quarter gross written premium and 92% of the gross earned premium [7] - Pretax income from the commercial lines segment was $25.4 million in Q2 and $64.3 million year-to-date, with a net loss ratio of 22.0% in Q2 [8] - The net combined ratio in the commercial lines segment was 59.4% in Q2, down from 61.5% year-over-year [8] Market Data and Key Metrics Changes - The total insured value exposure in the commercial lines portfolio decreased by 12.8%, while the probable maximum loss at the 100-year return period decreased by 21% year-over-year [9] - Gross written premium increased by 31% in Q2 and 33.8% year-to-date [9] Company Strategy and Development Direction - The company has transitioned to a commercial specialty insurance business and changed its name to American Coastal Insurance Corporation, effective August 15, 2023 [7] - The company expects the hard market in Florida to create opportunities, as it holds the 1 market share for admitted commercial residential exposure in the state [11] Management's Comments on Operating Environment and Future Outlook - Management believes legislative changes in Florida will mitigate excessive litigation issues and reduce loss costs and insurance rates over time [10] - The Florida residential cat market remains hard, and it will take time for reinsurers and investors to become comfortable with the exposures [11] Other Important Information - Stockholders' equity increased to $106.5 million or $2.45 per share, a 27% increase from the prior quarter [16] - Cash and invested assets totaled nearly $242 million, with total assets exceeding $1.44 billion [16] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with management thanking employees and investors for their support [22][20]

Financial Performance - Gross premiums written for Q1 2023 were $187.123 million, an increase from $142.414 million in Q1 2022, representing a growth of 31.4%[181] - Net premiums earned in Q1 2023 were $87.324 million, compared to $57.746 million in Q1 2022, reflecting a growth of 51.3%[181] - Consolidated net income attributable to United Insurance Holdings Corp. for Q1 2023 was $260.878 million, a significant increase from a loss of $33.172 million in Q1 2022[181] - Earnings from continuing operations before income tax for Q1 2023 were $40.428 million, up from $5.627 million in Q1 2022[181] - Core income for Q1 2023 was $30.906 million, compared to $5.953 million in Q1 2022, indicating a growth of 418.5%[181] - Book value per share increased to $1.93 in Q1 2023, compared to a negative $4.21 in Q1 2022[181] - Total revenue decreased to $104,047,000 in Q1 2023 from $117,361,000 in Q1 2022, a decline of 11.3%[182] - Net income from continuing operations increased to $30,573,000 in Q1 2023, up from $4,647,000 in Q1 2022[182] - The combined ratio improved to 70.5% in Q1 2023 from 191.7% in Q1 2022, indicating enhanced operational efficiency[182] - The loss ratio, net, improved to 21.9% in Q1 2023 from 56.3% in Q1 2022, reflecting better loss management[182] - Net income attributable to United Insurance Holdings Corp. for Q1 2023 increased by $294,050,000, or 886.4%, to $260,878,000 from a net loss of $33,172,000 in Q1 2022[220] Policy and Operations - The number of policies in-force decreased by 51.3% from 48,152 at March 31, 2022, to 23,473 at March 31, 2023, due to the receivership of the former subsidiary UPC[178] - The company ceased writing commercial residential insurance in South Carolina and Texas effective May 1, 2022, and divested ownership of UPC on February 27, 2023[172][173] - A quota share reinsurance agreement was entered into with TypTap Insurance Company, ceding 100% of UPC's in-force policies in Georgia, North Carolina, and South Carolina effective June 1, 2022[175] - The company has historically grown through strategic acquisitions, including the merger of Journey Insurance Company into American Coastal Insurance Company effective June 1, 2022[178] - Gross written premiums for personal lines decreased by $3,968,000, or 27.5%, to $10,482,000 for Q1 2023 from $14,450,000 in Q1 2022[231] - Gross written premiums for commercial lines increased by $48,677,000, or 38.0%, to $176,641,000 in Q1 2023 from $127,964,000 in Q1 2022[241] Expenses and Cost Management - Total expenses significantly reduced to $64,207,000 in Q1 2023 compared to $113,067,000 in Q1 2022, a decrease of 43.2%[182] - Loss and LAE decreased by $13,445,000, or 41.3%, to $19,073,000 in Q1 2023, with the loss ratio as a percentage of net earned premiums dropping to 21.9% from 56.3% in Q1 2022[227] - Policy acquisition costs fell by $25,225,000, or 48.4%, to $26,927,000 in Q1 2023, primarily due to decreases in agent commissions and policy administration fees[228] - General and administrative expenses decreased by $5,598,000, or 36.3%, to $9,837,000 in Q1 2023, driven by a reduction in salary-related expenses due to decreased headcount[229] - Total operating expenses rose by $7,909,000, or 39.3%, to $28,016,000 for Q1 2023 compared to $20,107,000 in Q1 2022[247] Reinsurance and Catastrophe Management - The company purchased catastrophe excess of loss reinsurance protection up to an exhaustion point of approximately $2,500,000,000 for the 2022 hurricane season[198] - After Hurricane Ian, the company has approximately $993 million of aggregate limit remaining, with reinstatement premiums of approximately $15.4 million[199] - The company agreed to terminate a reinsurance agreement resulting in approximately $1,300,000 of ceded premium savings[200] - Reinsurance costs as a percentage of gross earned premium decreased from 53.0% in 2022 to 39.6% in 2023[203] - The exhaustion point of the company's catastrophe reinsurance program is approximately $200,000,000 with a retention of $3,000,000 per occurrence[198] - Unpaid losses and LAE decreased from $842,958,000 as of December 31, 2022 to $748,365,000 as of March 31, 2023, primarily due to ongoing claims settlements related to Hurricane Ian[215] - The company incurred $3,071,000 in catastrophe losses for the three months ended March 31, 2023, with a combined ratio impact of 3.5%[210] Investment and Market Conditions - Cash, cash equivalents, and restricted cash totaled $372,721,000 as of March 31, 2023, up from $340,905,000 at December 31, 2022[193] - The Federal Reserve's interest rate hikes may negatively impact the market value of the company's investment portfolio and rate of return on investments[218] - Net purchases of investments totaled $195,082,000 in Q1 2023, compared to net sales of $70,134,000 in Q1 2022[258] Future Outlook and Concerns - The company has substantial doubt about its ability to continue as a going concern within the next twelve months[253] - Management plans to explore raising additional capital for UIHC and ACIC to strengthen statutory risk-based capital if necessary[253]

Financial Data and Key Metrics Changes - For Q1 2023, the company reported a GAAP net income of $260.9 million or $5.99 per share, compared to a net loss of $33.2 million or $0.77 per share in the previous year, which included a non-recurring gain from discontinued operations of $230.3 million or $5.29 per share [13][14] - Continuing operations pretax income was approximately $40 million, a significant increase from $5.6 million year-over-year, representing a 619% increase [10][14] - The combined ratio improved to 70.5%, down from over 191% last year, indicating a substantial enhancement in operational efficiency [15] Business Line Data and Key Metrics Changes - The commercial lines segment generated a pretax income of approximately $39 million, with gross written premiums up 38% year-over-year and a net loss ratio of 22% [10][16] - The personal lines segment reported a pretax profit of $4.6 million, but was impacted by a $3.2 million pretax loss primarily related to interest expense [16] Market Data and Key Metrics Changes - The company noted that legislative changes in Florida are expected to reduce loss rates by approximately 25%, which may positively impact insurance premium rates over time [9] - The Florida residential cat market remains extremely hard, with expectations for continued challenges in reinsurance placements, but also opportunities for growth in commercial residential exposure [12] Company Strategy and Development Direction - The company is focused on exiting the personal lines business and enhancing its commercial lines segment, which is expected to drive future growth [7][10] - Management is optimistic about the potential for improved financial performance in 2023, following significant restructuring efforts [21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the company's ability to demonstrate significant improvements in financial performance during the remainder of 2023 [21] - The company is working closely with the Florida Department of Financial Services to resolve outstanding balances and leverage net operating loss carryforwards from UPC [18] Other Important Information - As of March 31, 2023, stockholders' equity was $83.5 million, with total assets exceeding $1.44 billion, including over $792 million of reinsurance recoverable [17] - The company has secured over 100% of the limit authorized for its core cat reinsurance program, providing substantial hurricane protection [11][19] Q&A Session Summary - The Q&A session included inquiries about the impact of legislative changes on loss ratios and premium rates, to which management responded positively, indicating expected reductions in loss costs over time [9] - Questions regarding the company's strategy for personal lines and the expected timeline for financial recovery were addressed, with management emphasizing the focus on commercial lines and ongoing restructuring efforts [7][21]

Financial Performance - The company reported personal residential property policies generated written premium of $596,374,000, accounting for 53.1% of total gross written premium in 2022[28]. - Commercial policies produced written premium of $508,243,000, representing 45.2% of total gross written premium in 2022[30]. - The total insured value (TIV) of all policies in-force as of December 31, 2022, was $200,900,672, a decrease from $310,181,753 in 2021[38]. - As of December 31, 2022, the company had 254,275 policies in-force, a significant decrease from 471,724 in 2021[36]. - Approximately 52.5% of the company's policies in-force and 43.4% of total insured value were concentrated in Florida as of December 31, 2022[77]. - The company's exposure in Louisiana and Texas represented approximately 24.9% of policies in-force and 23.3% of total insured value at December 31, 2022[81]. Underwriting and Risk Management - The company aims to achieve consistent and sustainable underwriting profitability through continuous portfolio optimization and risk management strategies[24]. - The company is subject to increased exposure to catastrophic events in Florida, which may disproportionately affect its financial condition[78]. - The company faces increased costs of claims due to one-way attorney fees in Florida, with recent legislative changes aimed at reforming this issue[80]. - The process of estimating loss reserves involves significant judgment and is subject to various internal and external variables[86]. - The company may experience government-levied assessments that could adversely affect its results of operations[90]. - The company is negotiating for catastrophe reinsurance coverage for the June 1, 2023, through May 31, 2024, renewal period, with expected increases in costs[89]. - The inability to obtain reinsurance on acceptable terms could increase loss exposure and limit underwriting capabilities, adversely affecting financial condition[128]. Strategic Focus and Business Operations - The company plans to divest its personal lines business, focusing solely on commercial lines, particularly in Florida[25]. - The company continues to explore strategic options for its personal lines business, particularly IIC in New York[25]. - The company operates under two reportable segments: personal residential property and casualty insurance policies, and commercial residential property and casualty insurance policies[70]. - The company relies on approximately 2,693 independent agencies for marketing its policies, making it dependent on these agents' performance[82]. - The company has reduced its equity securities portfolio to mitigate market volatility impacts on financial condition[22]. Regulatory and Compliance Issues - The company is subject to regulatory restrictions on dividend payments from its insurance subsidiaries, as per Florida and New York law[51]. - The company has a long-term management agreement that requires approval from the Florida Office of Insurance Regulation for any changes[55]. - The company has agreed not to pay ordinary dividends from its insurance subsidiary, IIC, until January 1, 2025, without prior approval from the New York Department of Financial Services[152]. - The company is subject to restrictive covenants that may limit its ability to pursue certain opportunities for expansion, particularly in the commercial property insurance market for coastally exposed risks[154]. - Regulatory changes at the state and federal levels could limit the company's ability to manage risk and profitability, impacting growth and operational flexibility[118][120]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to achieve net-zero carbon emissions in its operations and value chain by no later than 2030[59]. - The company has committed to increasing capital allocated toward ESG investment vehicles and opportunities[59]. - The company has implemented various eco-friendly initiatives, including paperless policy document delivery and energy-efficient lighting[58]. - The company has invested $3,280,000 in a BlackRock ESG exchange-traded fund as of December 31, 2022[59]. Workforce and Management - As of December 31, 2022, the company had 269 employees, with a voluntary attrition rate of 39.3% for the year[68]. - The company's workforce diversity statistics show that 20.0% of executive officers are female, with a change of (22.9) points from December 31, 2021[65]. - The loss of senior management could adversely affect the company's business and financial condition, as attracting and retaining qualified executives is challenging in a competitive industry[101][102]. Financial Risks and Market Conditions - The competitive landscape in the property and casualty insurance industry remains intense, with challenges in maintaining market share and pricing adequacy due to rising reinsurance costs and catastrophe events[115][116]. - The cyclical nature of the property and casualty insurance industry may lead to periods of severe price competition, adversely affecting profitability[140]. - Legal actions and increased litigation costs may materially affect operating results and financial condition, with potential for significant damage awards[141]. - The ongoing COVID-19 pandemic has introduced significant uncertainty, with potential risks including increased claims, regulatory challenges, and impacts on operational efficiency[111][113]. Investment and Capital Structure - The company’s investment portfolio is primarily in fixed income securities, and changes in interest rates could significantly impact net investment income and fair value[134]. - The company has registered up to 101 million securities authorized for issuance, which could lead to stock price decreases if substantial amounts are sold[148]. - Dividend payments on common stock are uncertain and dependent on profits and regulatory restrictions, affecting returns for investors[149]. - Limitations on the ability of subsidiaries to pay dividends could adversely affect the holding company's liquidity and obligations[150]. - Compliance with Senior Notes due 2027 is critical, as failure to meet restrictions could result in default and negatively impact liquidity and financial condition[109][110]. Operational Risks - The company faces risks related to information technology and data security systems, which could negatively impact its financial condition[94]. - The company faces operational and financial risks due to reliance on third-party vendors for critical services, which could lead to significant losses in the event of vendor failures or data breaches[100]. - The company has substantial uncertainty regarding reinsurance recoveries due to its insurance subsidiary, UPC, being ordered into receivership[88]. - Strategic transactions such as mergers and acquisitions may not yield anticipated benefits and could divert management resources, incur unexpected costs, or dilute existing shareholders[103][104]. - The company may face difficulties in accurately assessing the value and liabilities of acquired businesses until operational control is assumed, potentially impacting financial results[105][106]. - Dispositions of business segments could adversely affect stock prices and investor returns, alongside challenges in negotiating sale terms and replacing legacy earnings[106][107]. - Investments in shared ownership entities may expose the company to operational and financial risks, potentially leading to lower-than-expected contributions to earnings[108].

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $294.9 million or $6.84 per share for Q4 2022, compared to a net loss of $2.3 million or $0.05 per share in the previous year [14] - The core loss for Q4 2022 was $273 million or $6.33 per share, compared to a core loss of $1 million or $0.02 per share in the prior year [14] - The gross loss estimate from Hurricane Ian increased from $1 billion at September 30, 2022, to $1.54 billion at year-end [15] Business Line Data and Key Metrics Changes - The commercial lines business reported pre-tax earnings of $3.7 million for Q4 and $35.8 million for the year, with gross written premium for the quarter at $122 million, up 30.4%, and for the year at $508 million, up 20.4% [10] - The combined ratio for the commercial lines was 89.5% for Q4, with an underlying combined ratio of 68.5% [11] - The personal lines business incurred most of the losses, while commercial lines had approximately $16 million of net losses related to current accident year catastrophes [15] Market Data and Key Metrics Changes - The average risk-adjusted rate in the commercial lines increased over 40% in Q4, the highest in 15 years, with the average building valuation up 11% year-over-year [10] - The average hurricane deductible increased from 4.3% to 5.0% year-over-year across the portfolio [10] Company Strategy and Development Direction - The company is continuing its withdrawal from personal lines, having exited various states and entered into an agreement with Slide Insurance Company to offer replacement policies to at least 72,000 policyholders [6][8] - The focus is shifting towards a specialty commercial lines business, with expectations of strong historical performance from American Coastal [12] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the developments leading to the receivership of United P&C but indicated that this closure allows for a more stable and profitable future [16][20] - The Florida catastrophe market is described as significantly harder than in previous years, presenting both challenges and opportunities for pricing and portfolio quality improvement [12] Other Important Information - The company incurred several nonrecurring charges in Q4, including a $23 million impairment loss related to United P&C's investment portfolio and a $20 million write-down of deferred acquisition costs [20] - The company has provided unaudited pro forma financials to illustrate the impact of deconsolidating United P&C from its results [16][17] Q&A Session Summary - No specific questions or answers were provided in the transcript, indicating the end of the Q&A session without further inquiries from participants [21]

United Insurance Holdings Corporation (Nasdaq: UIHC) Investor Presentation March 2nd, 2023 Company Overview UIHC is a specialty underwriter of catastrophe exposed property insurance. United Insurance Holding Corp. (Nasdaq: UIHC) was founded in 1999 and is the insurance holding company for 2 P&C carriers: American Coastal Insurance Company (ACIC) and Interboro Insurance Company (IIC) along with other operating affiliates. ACIC has the #1 market share of commercial residential property insurance (commercial l ...

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $70.9 million or $1.65 per share for Q3 2022, compared to a net loss of $14.3 million or $0.33 per share in the same period last year [20] - Core loss for the quarter was $57.5 million or $1.34 per share, compared to a core loss of $15.5 million or $0.36 per share a year ago [20] - Gross premiums written for the quarter were $255.2 million, a decline of $67.3 million or approximately 21% [24] - Net investment income increased by approximately 23% to $4.3 million due to higher yields [25] Business Line Data and Key Metrics Changes - Personal lines experienced a core loss of $69.8 million, significantly impacted by the loss of financial stability ratings and increased reinsurance costs [8][9] - The total policies in force in personal lines decreased by about 36% since the beginning of 2022, with total return values down 34.6% [11] - Commercial lines reported net premium earned of $59.5 million, with a core income of $1.8 million for the third quarter, demonstrating strong performance despite Hurricane Ian losses [12] Market Data and Key Metrics Changes - The company noted that the Florida market is expected to remain hard due to a skeptical capital and reinsurance market, elevated catastrophe activity, and excessive litigation levels [18] - The impact of Hurricane Ian on the company's catastrophe reinsurance program was significant, with personal lines losses estimated near the top of the program limits [29] Company Strategy and Development Direction - The company has decided to put its core personal lines businesses into runoff, filing plans of withdrawal in Florida, Texas, and Louisiana [14][15] - The focus will shift exclusively to the commercial lines segment, which has shown profitable results [28] Management Comments on Operating Environment and Future Outlook - Management expressed concerns about the viability of the previously announced runoff plan for United Property & Casualty due to Hurricane Ian, indicating it as a significant risk factor going forward [31][32] - The company continues to monitor developments closely and adjust its runoff plan as needed [32] Other Important Information - The company wrote down approximately $13.6 million in goodwill related to its personal lines operations [10] - GAAP equity attributable to UHC stockholders declined to $80.4 million, with a book value per share of $1.86 [34] Q&A Session Summary - The Q&A session concluded without specific questions or answers being documented in the provided content, indicating a lack of engagement during this segment [35]