Financial Data and Key Metrics Changes - The company reported a core loss of 33.2 million or 17.8 million or 11.6 million for the quarter, with premiums up by 22.7% year-to-date [8] - The non-CAT loss ratio slightly decreased from 32.4% to 32.3%, while CAT loss ratio significantly dropped from 29% to 13% [6][7] Market Data and Key Metrics Changes - The company continues to see a significant reduction in the number of initial lawsuits in Florida, although pre-suit notifications of intent to litigate are increasing [9][10] - The company is progressing towards a 50-50 balance between personal lines and commercial lines, moving from 63-37 to 61-39 [9] Company Strategy and Development Direction - The company is focused on de-risking and deleveraging its portfolio, resulting in decreased gross and net earned premiums [10] - Continued compounding rate actions and risk selection are being implemented, with expectations for rate increases to persist through at least mid-2023 [11] - The company is working on merging Journey Insurance Company into American Coastal Insurance Company to better allocate capital [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter results reflect the transition to de-risk and deleverage the portfolio, with elevated catastrophe losses impacting performance [10] - There is uncertainty regarding the excessive litigation in Florida, but a growing consensus exists that legislative action is needed to address the issue [36][37] - Management expressed optimism about the Commercial Lines business, which is positioned for profitable growth in a challenging market [11] Other Important Information - The company received regulatory approval to terminate its intercompany pooling agreement, enhancing its ability to raise additional capital [24] - Total assets as of March 31, 2022, were 909 million [23] Q&A Session Summary Question: What is the expected rate of change in the shrinkage of policy count? - Management indicated that a personal line adjusted decline of 6.6% is likely in line with the run rate, but premium will not drop at the same rate due to rate increases [27] Question: Can you provide insight into reinsurance costs as a percentage of gross earned premium? - Management refrained from commenting on future costs due to ongoing negotiations and uncertainty surrounding the Florida special session [30] Question: What items are on the agenda for the upcoming special session in Florida? - Management mentioned potential changes to the Florida Hurricane Catastrophe plan and issues related to roof covering and litigation [34]
United Insurance(ACIC) - 2022 Q1 - Earnings Call Transcript