American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — Q2 2023 Earnings Presentation
11 slides from American Coastal Insurance's earnings presentation, Aug 10, 2023
Slide 1: Second Quarter 2023 Investor Presentation
Second Quarter 2023 August 10, 2023 Investor Presentation
Slide 2: Company Overview
2 Company Overview ACIC is a specialty underwriter of catastrophe exposed property insurance. American Coastal Insurance Corp. (Nasdaq: ACIC - effective 8.15.2023) is the insurance holding company for two P&C carriers: American Coastal Insurance Company (AmCoastal) and Interboro Insurance Company (I
Slide 3: Executive Summary
3 Executive Summary • Q2-23 Results • Non-GAAP Core Income of $28.4m ($0.65) increased $20.0m (236%) from $8.5m ($0.20) y/y excluding discontinued operations. • Net income from continuing operations of $22.6m ($0.52) improved from $5.8m ($0.14) last year driven by strong underwriting performance in
Slide 4: 2Q-23 Summary Results
4 2Q-23 Summary Results A combined ratio of 67.7% combined with premium growth fueled significant improvements y/y. ¹ 2022 amounts recast for discontinued operations. $ in thousands, except per share amounts Q2-23 Q2-22 ¹ Change 2023 2022 ¹ Change Net income (loss) 18,247$ (69,029)$ n/m 279,125$ (10
Slide 5: 2Q-23 Detailed Results
5 2Q-23 Detailed Results Investment losses and higher catastrophe loss & reinsurance costs were overcome by top line growth. ¹ 2022 amounts recast for discontinued operations. $ in millions Q2-23 Q2-22 ¹ Change % Chg Gross Premiums Earned 158.2$ 129.5$ 28.7 22.2% Ceded Premiums Earned (75.0) (65.0)
Slide 6: 2Q-23 Segment Results
6 2Q-23 Segment Results Corrections made to discontinued operations impacted PL servicing revenue & expense QTD & YTD. CL – Commercial lines PL – Personal lines $ in millions CL PL Other Total CL PL Other Total Gross Premiums Earned 145.8$ 12.4$ -$ 158.2$ 277.8$ 24.8$ -$ 302.7$ Ceded Premiums Earned
Slide 7: Discontinued Operations Recast
7 Discontinued Operations Recast During the second quarter of 2023, the Company determined that it should have also included the servicing portion of our personal lines business specifically related to our former affiliate, United Property & Casualty Insurance Company (UPC) in discontinued operation
Slide 8: 2Q-23 Balance Sheet Highlights
8 2Q-23 Balance Sheet Highlights Quota share reinsurance increased from 10% to 40% at 6.1.23 to improve risk-based capital but it will reduce future underwriting profitability through 5.31.24. Jun. 30, Mar. 31, ($ in thousands, except per share amounts) 2023 2023 % Variance Selected Balance Sheet Da
Slide 9: 2023-24 Core Catastrophe Reinsurance - AmCoastal
9 2023-24 Core Catastrophe Reinsurance - AmCoastal UPC Re’s participation could increase our retention from $10m to $12.3m if Layer 1 is exhausted.
Slide 10: 2023-24 Catastrophe Reinsurance - IIC
10 2023-24 Catastrophe Reinsurance - IIC IIC maintained its $3m occurrence retention and UPC Re did not participate on IIC’s program.
Slide 11: Cautionary Statements
11 Cautionary Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements include expectations regarding our diversification, growth opportunities, retention rates, liquidity, investme
AMERICAN COASTAL INSURANCE — Q2 2023 Earnings Presentation on 6ix