American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — United Insurance Holdings — Q3 2021 Earnings Presentation
15 slides from American Coastal Insurance's earnings presentation, Nov 12, 2021
Slide 1: United Insurance Holdings Corporation Investor Presentation
United Insurance Holdings Corporation (NASDAQ: UIHC) Investor Presentation November 11, 2021
Slide 2: Company Overview
Company Overview 2 UPC Insurance is a specialty underwriter of catastrophe exposed property insurance in the U.S. United Insurance Holding Corp. (NASDAQ: UIHC) was founded in 1999 and is the insurance holding company for 5 P&C carriers and operating affiliates operating under the brand UPC Insurance
Slide 3: Corporate Strategy
Corporate Strategy 3 We seek to be a top-quartile specialty underwriter of CAT exposed property insurance Innovative Reinsurance Programs & Long- Standing Partnerships Highly Specialized Coastal Underwriter Sophisticated Risk Selection and Exposure Management Proprietary, Scalable Technology to Pric
Slide 4: Q3-2021 Results and Key Accomplishments
4 • Q3-2021 Results • Core loss of -$15.5m (-$0.36 per share) compared favorably to -$83.8m (-$1.95 per share) last year due to lower net retained losses from named windstorms. • Core income excluding named storms of $9.0m ($0.21 per share) declined from $15.0m ($0.35 per share) in 2020 due to highe
Slide 5: Q3-2021 Results
Q3-2021 Results 5 Reinsurance costs were the primary driver of the y/y decline in core earnings Q3-21 Q3-20 Change Core income (loss) (15,453)$ (83,847)$ -81.6% per diluted share (CEPS) (0.36)$ (1.95)$ Included the following items Net current year catastrophe loss & LAE incurred 37,003$ 140,001$ Net
Slide 6: Q3-2021 Results by Line of Business
Q3-2021 Results by Line of Business 6 Our Specialty Commercial Continues to Perform Well Personal Lines (PL) represents our homeowners’ business and is performing outside of Florida, but Commercial Lines (CL) is what we seek to grow over time. $ in millions PL CL Total Gross Premiums Earned 248.4$ 1
Slide 7: Underwriting Improvement Actions
7 1. Increased Rate Adequacy a) 2020 rate actions averaged ~ 11% across the personal lines portfolio b) 2021 rate actions averaged ~ 14% across the personal lines portfolio through September c) Commercial lines rate increases averaged ~ 19% during Q3-2021 2. Focused on Risk Selection a) Increasing c
Slide 8: Homeowners Rate Change by State
Homeowners Rate Change by State 8 Florida, New York and Texas are UPC’s 3 biggest states and have led the charge
Slide 9: Renewal Rate Change is Significant
9 Renewal Rate Change is Significant Retention remains ~90% despite underwriting actions taken to improve results Q3 was our largest rate change to date
Slide 10: Premium Relative to Exposure Still Improving
Premium Relative to Exposure Still Improving 10 We expect this gap to widen further from additional underwriting improvement initiatives
Slide 11: PML-to-Premium Trending Favorably
11 PML-to-Premium Trending Favorably Portfolio optimization should drive PML down at least -10% by 9/30/22
Slide 12: Litigation Trended Down in Q3-2021
12 Litigation Trended Down in Q3-2021 Early signs of the impact from SB76 are positive since new lawsuits peaked in June We are also having success resolving claims received through the pre-suit notification process with lower loss and defense costs
Slide 13: Final Thoughts
Final Thoughts 13 Leadership changes made & corrective action plan is in place and working Rate increases are significant and acquisition costs have been cut Lower CAT retentions will limit further capital erosion Exposure management will continue to reduce TIV & PML Return to profitability is expec
Slide 14: Cautionary Statements
Cautionary Statements 14 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
Slide 15: UPC Insurance
UPCZS INSURANCE
United Insurance Holdings — Q3 2021 Earnings Presentation on 6ix