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 $140.7 million in Q4 2024 from $128.3 million in Q4 2023 [2][18]. - Net income for Q4 2024 was $4.9 million, or $0.10 per diluted share, down from $14.3 million, or $0.31 per diluted share, in Q4 2023 [17][24]. - For the year ended December 31, 2024, net income was $75.7 million, or $1.54 per diluted share, compared to $309.9 million, or $6.98 per diluted share, in 2023 [24][25]. Loss and Expense Analysis - Loss and LAE (Loss Adjustment Expenses) increased by 344.8% to $29.8 million in Q4 2024 from $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 $26.5 million in Q4 2024, primarily due to changes in reinsurance commission income [21][30]. - General and administrative expenses rose by 17.7% 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 $311.9 million at the end of 2023 to $540.8 million at the end of 2024, indicating strong cash flow from operations [36]. - Book value per share rose by 35.5% from $3.61 at December 31, 2023, to $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