American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — United Insurance Holdings — Q2 2020 Earnings Presentation
13 slides from American Coastal Insurance's earnings presentation, Aug 5, 2020
Slide 1: Investor Presentation Supplement to Second Quarter 2020 Results
Investor Presentation Supplement to Second Quarter 2020 Results August 5, 2020 St. Petersburg, FL
Slide 2: Q2-2020 Executive Summary
Q2-2020 Executive Summary UPC’s vision of being the premier specialty underwriter of property insurance in catastrophe exposed areas remains unchanged • On July 1st, Dan Peed became UIHC’s new Chairman & CEO New 1 • Mr. Peed is UIHC’s largest shareholder, so no one is more vested in our success Lead
Slide 3: Reintroducing Our New Chairman & CEO - Dan Peed
Reintroducing Our New Chairman & CEO - Dan Peed Background • Mr. Peed has over 30 years of experience in the insurance industry Includes both insurance and reinsurance underwriting focused on commercial property risk • Mr. Peed has served as a UIHC Director and Vice-Chairman since our 2017 merger
Slide 4: Summary of Operating Results
Summary of Operating Results Almost all key metrics improved in Q2-2020 compared to the prior year Q2-2020 Q2-2019 Change Core income $ 8,816 $ (3,459) 354.9% per diluted share (CEPS) $ 0.20 $ (0.08) CEPS excluding named windstorm $ 0.30 $ (0.08) Included the following items Net current year catastr
Slide 5: Q2-2020 Financial Commentary
Q2-2020 Financial Commentary I. REVENUE HIGHLIGHTS • Gross Premiums Written of $439.7m: • Down -2.2% (-$10.1m) y/y • Personal Lines +7.6% (+$21.8m) | Commercial up +10.2% (+$11.0m) | E&S down -78.1% (-$43.0m) • Assumed E&S premiums impacted by termination and cut-off of a quota share treaty effectiv
Slide 6: Underwriting Results Trending Up
Underwriting Results Trending Up Rate increases are driving improvements in the core earnings power of our business Underwriting Profit Trends – All Lines $20,000 $10,000 $- Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 $(10,000) $(20,000) $(30,000) $(40,
Slide 7: More Rate Changes Are Coming
More Rate Changes Are Coming In additional to rate increases, new products are also being introduced in multiple states to improve overall market segmentation & rate adequacy Existing programs: State Co. Line of Business Policy Form Effective Date Rate Change Status Notable Changes: NC UPC Homeowner
Slide 8: Exposure Reduction Underway
Exposure Reduction Underway Targeting a PML reduction of 9.9% by 9/30/21 with renewals beginning in Q3-2020 In-force personal lines portfolio data as of April 30, 2020: 100-Year PIF Premium PML Proxy Current 597,025 $ 948,234,004 $ 1,667,885,409 Projected 585,188 $ 920,858,051 $ 1,503,578,516 Portfo
Slide 9: 6/1/20 Reinsurance Renewal Was Successful
6/1/20 Reinsurance Renewal Was Successful . Quota Share Reinsurance Program – Effective June 1, 2020 - May 31, 2021 United P&C and Family Security ‒ 22.5% Cession rate covering all perils and all states ground up ‒ World class reinsurance panel of A+ markets . Aggregate Reinsurance Program – Effecti
Slide 10: Capital & Liquidity Remains Strong
Capital & Liquidity Remains Strong Jun 30, Dec. 31, ($ in thousands, except per share amounts) 2020 2019 Change Selected Balance Sheet Data Cash & investments $ 1,387,935 $ 1,298,780 +13.1% Improved earnings and increases in the fair value Financial debt 158,340 158,932 of invested assets helped boo
Slide 11: Conclusions & Investment Thesis
Conclusions & Investment Thesis • Significant rate increases fueling growth in earned premium Results • Reducing risk exposures to manage loss and reinsurance costs Improving • Leveraging investments in people and best in class technology platforms • Our strength is in our people Experienced • Leade
Slide 12: Cautionary Statements
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, investment
Slide 13: UPC Insurance - Keep the Promises
UPCZS INSURANCE Keep the Promises
United Insurance Holdings — Q2 2020 Earnings Presentation on 6ix