United Insurance(ACIC) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - American Coastal Insurance Corporation reported a net income of $28.1 million for Q3 2024, with core income increasing by$11.4 million year-over-year to $26.9 million due to lower ceded earned premiums from a reduction in gross catastrophe quota share from 40$82.1 million, reflecting significant growth driven by favorable reinsurance pricing [9] - The combined ratio improved to 57.7%, down from 62.7% in the same period last year, indicating strong underwriting performance [20] Business Line Data and Key Metrics Changes - The company experienced an increase in gross premium earned, which grew by $2.4 million to$160.2 million [20] - The company successfully participated in its first-ever takeout from Citizens, adding policies to its condo book and launching a new apartment program [10] Market Data and Key Metrics Changes - The company faced significant hurricane activity, with estimated after-tax losses of approximately $3.8 million from Hurricanes Debby and Helene, and$16.2 million from Hurricane Milton expected in Q4 [8][15] - Hurricane Milton, a Category 3 storm, resulted in an estimated gross loss of between $150 million and$200 million, marking the first event ceded to the core catastrophe excess loss reinsurance program this year [15][16] Company Strategy and Development Direction - The company aims to maintain a strong underwriting profit and expects the new non-cat margin run rate to continue in future quarters [9] - American Coastal is focused on enhancing its liquidity and capitalization to meet policyholder obligations following recent catastrophe losses [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in remaining profitable in Q4 2024 despite increased hurricane activity impacting Florida, noting that comparisons to prior periods are affected by the absence of hurricane losses in 2023 [18] - The company is optimistic about future opportunities and continuing profitable growth [25] Other Important Information - Cash and investments grew by 83.1% to $571.1 million, reflecting a strong liquidity position [22] - Stockholders' equity increased by 53.8$259.6 million, driven by strong underwriting results [22] Q&A Session Summary Question: No questions were raised during the Q&A session - The operator noted that there were no questions at this time, and the call was turned back to the CEO for closing remarks [24]