Financial Performance - Gross premiums written decreased by 22.8% from $93,016,000 in Q3 2024 to $71,812,000 in Q3 2025[182] - Net premiums earned increased by 8.4% from $74,486,000 in Q3 2024 to $80,818,000 in Q3 2025[182] - Consolidated net income rose by 15.5% from $28,119,000 in Q3 2024 to $32,483,000 in Q3 2025[184] - Core income per diluted share increased from $0.54 in Q3 2024 to $0.61 in Q3 2025, reflecting a growth of 12.9%[182] - Total revenues increased by 9.9% from $82,136,000 in Q3 2024 to $90,395,000 in Q3 2025[184] - ACIC net income for Q3 2025 increased by $4,364,000, or 15.5%, to $32,483,000 from $28,119,000 in Q3 2024, driven by continuing operations[223] - ACIC net income for the nine months ended September 30, 2025 increased by $9,501,000, or 13.4%, to $80,273,000 from $70,772,000 in the same period in 2024[235] Policy and Premiums - Policies in-force grew by 8.6% from 3,971 policies at September 30, 2024 to 4,343 policies at September 30, 2025[179] - Gross written premiums for the nine months ended September 30, 2025 decreased by $9,056,000, or 1.8%, to $498,010,000 from $507,066,000 in the same period in 2024[236] - Net premiums earned increased by $27,035,000, or 13.5%, to $227,533,000 for the nine months ended September 30, 2025, compared to $200,498,000 for the same period in 2024[237] Expenses and Loss Ratios - Total operating expenses increased by $2,618,000, or 5.7%, to $48,690,000 in Q3 2025 from $46,072,000 in Q3 2024, primarily due to increased policy acquisition costs[227] - Loss and LAE decreased by $2,563,000, or 21.8%, to $9,211,000 in Q3 2025 from $11,774,000 in Q3 2024[229] - The net loss and LAE as a percentage of net earned premiums decreased by 4.4 points to 11.4% in Q3 2025 from 15.8% in Q3 2024[229] - Total operating expenses increased by $23,812,000, or 30.5%, to $101,767,000 for the nine months ended September 30, 2025, compared to $77,955,000 for the same period in 2024[242] - Policy acquisition costs rose by $28,686,000, or 64.5%, to $73,162,000 for the nine months ended September 30, 2025, primarily due to a decrease in ceding commission income[243] - General and administrative expenses decreased by $4,874,000, or 14.6%, to $28,605,000 for the nine months ended September 30, 2025, largely due to a non-recurring employee retention tax credit refund[244] Cash and Investments - As of September 30, 2025, the company's total cash, cash equivalents, restricted cash, and investment portfolio amounted to $695,047,000, an increase from $540,811,000 at December 31, 2024, representing a growth of approximately 28.6%[198] - The company's cash and cash equivalents increased to $267,872,000 at September 30, 2025, compared to $137,036,000 at December 31, 2024, reflecting a growth of approximately 95.7%[199] - Net cash provided by operating activities decreased by $123,130,000, or 51.0%, to $118,777,000 for the nine months ended September 30, 2025, compared to $241,907,000 for the same period in 2024[250] - Net sales of investments totaled $12,896,000 during the nine months ended September 30, 2025, compared to net purchases of investments of $162,893,000 during the same period in 2024[253] - Cash provided by financing activities decreased by $10,847,000, or 93.3%, to $774,000 for the nine months ended September 30, 2025, compared to $11,621,000 for the same period in 2024[254] Reinsurance and Coverage - The company recognized a loss of $247,000 on the disposal of IIC, net of tax impacts, during the sale to Forza Insurance Holdings[178] - The company's catastrophe reinsurance program provides occurrence-based coverage up to approximately $1,330,000,000 for a first occurrence and $1,676,000,000 in the aggregate, with a first event GAAP retention of $29,750,000[202] - The new catastrophe aggregate excess of loss coverage effective January 1, 2025, provides $40,000,000 of aggregate limit with a $20,000,000 per occurrence cap after a $40,000,000 annual aggregate deductible[204] - The company’s core catastrophe reinsurance program includes coverage for a 1-in-203-year return period, indicating a probability of a single occurrence exceeding protection purchased of roughly 0.5%[202] Investment Portfolio - The company's total investments as of September 30, 2025, were $335,911,000, which is 48.3% of the total assets, compared to $341,418,000 or 63.2% at December 31, 2024, indicating a decrease in the proportion of investments[199] - The estimated fair value of U.S. government and agency securities decreased from $154,660,000 (28.7% of total) at December 31, 2024, to $96,087,000 (13.8% of total) at September 30, 2025[199] - The company’s total fixed maturities decreased from $281,001,000 (52.0% of total) at December 31, 2024, to $246,499,000 (35.5% of total) at September 30, 2025[199] - The company’s equity securities increased from $36,794,000 (6.8% of total) at December 31, 2024, to $52,585,000 (7.5% of total) at September 30, 2025[199] Shareholder Actions - As of September 30, 2025, the company had sold 4,373,000 shares under an equity distribution agreement, resulting in net proceeds of approximately $38,190,000[249] - The company made a capital contribution of $8,269,000 to its reinsurance subsidiary during the nine months ended September 30, 2025, compared to $1,265,000 in the same period of 2024[247]
United Insurance(ACIC) - 2025 Q3 - Quarterly Report