American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — United Insurance Holdings — Merger or Acquisition (August 2016)
17 slides from American Coastal Insurance's merger presentation, Aug 17, 2016
Slide 1: UPC Insurance and American Coastal Insurance Combination
United Insurance Holdings Corp. NASDAQ: UIHC UPC Insurance and American Coastal Insurance Combination Creating a Leading Specialty Property CAT Underwriter August 17, 2016
Slide 2: Overview of UPC and ACIC
2AUGUST 2016 INVESTOR PRESENTATION: UPC Merger with American Coastal ($000s) Years Ended December 31, YTD 2013 2014 2015 2016 Q2 Balance Sheet Total Assets 434,013 435,377 436,890 507,967 GAAP Equity 208,791 207,391 195,823 193,949 Statutory Surplus 186,502 189,979 174,749 163,484 Income Statement G
Slide 3: Transaction Highlights
3AUGUST 2016 INVESTOR PRESENTATION: UPC Merger with American Coastal Transaction Highlights Transaction • Combination of UPC Insurance and American Coastal in an all stock merger meant to qualify as a tax-free reorganization Consideration Value • Approximately $330 million, based on non-discounted s
Slide 4: Pro Forma Organizational Chart
4AUGUST 2016 INVESTOR PRESENTATION: UPC Merger with American Coastal Pro Forma Organizational Chart Insurance subsidiaries that underwrite policies and bear risk of loss Managing General Agency & Underwriter Claims subsidiary that provides field inspection services Reinsurance subsidiary providing r
Slide 5: Transaction Benefits
5AUGUST 2016 INVESTOR PRESENTATION: UPC Merger with American Coastal Transaction Benefits •Diminished volatility of earnings •Increased access to capital •Potential rating agency benefits Positive effects of increased size, scale, stability and market presence •Reduction in aggregate PML •Expected a
Slide 6: Shareholder Value Creation
6AUGUST 2016 INVESTOR PRESENTATION: UPC Merger with American Coastal Shareholder Value Creation Transaction is expected to be immediately accretive to earnings per share Transaction is expected to be immediately accretive to return on equity Tangible book value per share expected to return to
Slide 7: Daniel Peed, CEO of American Coastal
7AUGUST 2016 INVESTOR PRESENTATION: UPC Merger with American Coastal Daniel Peed, CPCU, ARe CEO of American Coastal Background • Currently serves as CEO of American Coastal and President and CEO of AmRisc, LLC • Mr. Peed has over 30 years of experience in the insurance industry Includes both insur
Slide 8: American Coastal – Highlights
8AUGUST 2016 INVESTOR PRESENTATION: UPC Merger with American Coastal American Coastal – Highlights American Coastal is the largest writer of commercial residential insurance in Florida •Attractive platform for expansion and diversification •Superior underwriting and proven track record 5-year aver
Slide 9: Highly Complementary Platforms and Skills
9AUGUST 2016 INVESTOR PRESENTATION: UPC Merger with American Coastal Highly Complementary Platforms and Skills UPC and American Coastal have highly complementary capabilities and skill sets Commercial lines expertise, portfolio and return on capital optimization very strong Exclusive relationshi
Slide 10: Financially Compelling Transaction
10AUGUST 2016 INVESTOR PRESENTATION: UPC Merger with American Coastal Financially Compelling Transaction Earnings per Share Tangible Book Value Improved Leverage & Capital Ratios Improved Underwriting Results • Immediately accretive to earnings per share • Combined ratio improvements between 9-14% f
Slide 11: Illustrative Overview of the Pro Forma Company
11AUGUST 2016 INVESTOR PRESENTATION: UPC Merger with American Coastal Illustrative Overview of the Pro Forma Company Balance Sheet Income Statement Pro forma figures are shown as the sum of historical values and do not include any merger adjustments. (Dollars in millions) YTD Q2 2016 UPC ACIC Pro Fo
Slide 12: Pro Forma Capital Structure
12AUGUST 2016 INVESTOR PRESENTATION: UPC Merger with American Coastal Pro Forma Capital Structure Data as of 6.30.16 UPC AHC Pro Forma ($ in thousands) Annualized Gross Premiums Written (GPW) 693,424$ 337,880$ 1,031,304$ Annualized Net Premiums Earned (NPE) 431,098$ 192,854$ 623,952$ Debt 25,486$ -$
Slide 13: Conclusion
13AUGUST 2016 INVESTOR PRESENTATION: UPC Merger with American Coastal Conclusion UPC’s merger with ACIC creates a very unique catastrophe property underwriting specialist with over $1 billion of premium in force ACIC’s relationship with AmRisc provides unparalleled access to commercial property expe
Slide 14: Cautionary Statement Regarding Forward Looking Statements
14 Cautionary Statement Regarding Forward Looking Statements This communication contains “forward-looking statements” that involve significant risks and uncertainties. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including: a
Slide 15: Additional Information Regarding the Transaction and Where to Find It
15 Additional Information Regarding the Transaction and Where to Find It This communication does not constitute an offer to sell or the solicitation of an offer to buy the securities of the Company or the solicitation of any vote or approval. This communication is being made in respect of the propos
Slide 16: Participants in the Solicitation
16 Participants in the Solicitation The Company and its directors, executive officers and certain other members of management and employees may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive offic
Slide 17: UPCZS
UPCZS INSURANCE ene Keep the Promise
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