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].
United Insurance(ACIC) - 2024 Q3 - Quarterly Results