Financial Data and Key Metrics Changes - American Coastal reported earnings before income taxes of over $42 million for Q3 2025, marking the best quarter to date [4] - Total revenues increased by over 10%, while net income grew by 16% year over year, reaching $32.5 million [4][8] - The combined ratio was 56.9%, a decrease of 0.8 percentage points from 2024, and below the target of 65% [9] - Year-to-date net income from continuing operations was $80.2 million, a 13.8% increase year over year [10] Business Line Data and Key Metrics Changes - The company intentionally slowed premiums written in Q3 to limit exposure growth during hurricane season, achieving its average annual loss target [4][5] - Policy acquisition costs increased by $4.5 million or 21.5% due to higher commissions to MGAs and decreased seeding commission income [8] Market Data and Key Metrics Changes - The company is targeting the assisted living facility market in Florida, which is estimated to be a $100 million market opportunity, with potential growth in the coming years [24][25] - Average premiums are down about 9% since year-end, reflecting the softening cycle in the market [19] Company Strategy and Development Direction - American Coastal is focusing on risk selection and underwriting discipline to find profitable growth opportunities amid a softening commercial property market [4][5] - The introduction of a new commercial residential property insurance program targeting assisted living facilities is seen as a strategic initiative to diversify the risk portfolio [6][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in earning strong returns on capital despite headwinds from the current softening cycle [5] - The company anticipates a rebound in premiums written in Q4 2025, with positive momentum expected to continue into 2026 [5] Other Important Information - Cash and investments grew by 28.5% since year-end to $695 million, indicating a strong liquidity position [10] - Stockholders' equity increased by 38.9% since year-end to $327.2 million, driven by strong results [10] Q&A Session Summary Question: Can you break down the decrease in gross premium written in Q3? - Management clarified that they did not suspend new business but implemented stricter underwriting controls to meet average annual loss targets [14][16] Question: How are the reinsurance renewal discussions going? - Management reported productive discussions with reinsurance partners, indicating strong support for American Coastal, with a focus on capacity rather than pricing [18] Question: What is the market outlook for the assisted living business? - Management estimated the assisted living market to be about $100 million, with a goal to capture 10% in the first year, emphasizing a cautious approach to growth [24][26]