United Insurance(ACIC) - 2024 Q3 - Quarterly Report

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$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$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$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$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].