Core Insights - American Coastal Insurance Corporation reported its financial results for Q4 and the year ended December 31, 2024, highlighting a decrease in net income and challenges faced due to increased losses and expenses [1][17][24]. Financial Performance - Gross premiums written increased by 9.7% to 128.3 million in Q4 2023 [2][18]. - Net income for Q4 2024 was 0.10 per diluted share, down from 0.31 per diluted share, in Q4 2023 [17][24]. - For the year ended December 31, 2024, net income was 1.54 per diluted share, compared to 6.98 per diluted share, in 2023 [24][25]. Loss and Expense Analysis - Loss and LAE (Loss Adjustment Expenses) increased by 344.8% to 6.7 million in Q4 2023, with the loss ratio net rising to 40.5% [17][29]. - Policy acquisition costs surged by 102.3% to 11.3 million in Q4 2024, driven by increased overhead costs [22][31]. Combined Ratio and Underlying Metrics - The combined ratio for Q4 2024 was reported at 91.9%, significantly higher than 59.9% in Q4 2023, reflecting the impact of catastrophe losses [10][11]. - The underlying combined ratio, excluding current year catastrophe losses, was 65.9% for Q4 2024, compared to 63.7% in Q4 2023 [10][11]. Investment and Book Value - The company's cash and investment holdings increased from 540.8 million at the end of 2024, indicating strong cash flow from operations [36]. - Book value per share rose by 35.5% from 4.89 at December 31, 2024, driven by retained earnings from net income [37][38].
American Coastal Insurance Corporation Reports Financial Results for Its Fourth Quarter and Year Ended December 31, 2024