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American Coastal Insurance Corporation Reports Financial Results for Its Fourth Quarter and Year Ended December 31, 2023
ACICUnited Insurance(ACIC) Businesswire·2024-02-29 21:10

Core Viewpoint - American Coastal Insurance Corporation reported significant improvements in financial performance for the fourth quarter and full year ended December 31, 2023, with a notable increase in net income and gross premiums written compared to the previous year [1][14][24]. Financial Performance Summary - For Q4 2023, gross premiums written increased by 13.4% to 135.2millionfrom135.2 million from 119.1 million in Q4 2022 [2][15]. - Total revenues for Q4 2023 were 58.2million,down22.158.2 million, down 22.1% from 74.7 million in Q4 2022, primarily due to a decrease in net premiums earned [2]. - The company reported a consolidated net income of 14.3millionforQ42023,asignificantrecoveryfromanetlossof14.3 million for Q4 2023, a significant recovery from a net loss of 296.8 million in Q4 2022 [14][24]. - For the full year 2023, net income attributable to the company was 309.9million,comparedtoanetlossof309.9 million, compared to a net loss of 469.9 million in 2022 [24][26]. Premiums and Underwriting - Gross premiums earned for the year increased by 17.1% to 670.0millionin2023from670.0 million in 2023 from 572.3 million in 2022 [2][26]. - The company’s personal lines segment reported a pre-tax loss of 5.2millioninQ42023,animprovementfromalossof5.2 million in Q4 2023, an improvement from a loss of 10.6 million in Q4 2022 [4][22]. - The commercial lines segment achieved pre-tax earnings of 27.9millioninQ42023,upfrom27.9 million in Q4 2023, up from 3.7 million in Q4 2022, driven by decreased loss and LAE incurred [20]. Expense Management - Policy acquisition costs decreased by 40.2% to 15.2millioninQ42023from15.2 million in Q4 2023 from 25.4 million in Q4 2022, attributed to increased reinsurance ceding commission income [18]. - General and administrative expenses fell by 20.8% to 8.0millioninQ42023,downfrom8.0 million in Q4 2023, down from 10.1 million in Q4 2022, due to reduced amortization costs [19]. - Operating and underwriting expenses decreased by 35.1% to 2.0millioninQ42023from2.0 million in Q4 2023 from 3.1 million in Q4 2022 [18]. Return on Equity - The company reported a core return on equity of 100.6% for Q4 2023, a significant increase from 13.4% in Q4 2022 [5][30]. - The return on equity based on GAAP income from continuing operations was 97.0% for Q4 2023, compared to 2.7% in Q4 2022 [5]. Book Value and Investment Portfolio - Book value per share increased by 185.8% to 3.61atDecember31,2023,from3.61 at December 31, 2023, from (4.21) at December 31, 2022 [40]. - The company's cash and investment holdings rose from 340.9millionatDecember31,2022,to340.9 million at December 31, 2022, to 369.0 million at December 31, 2023 [38][39].