American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — United Insurance Holdings — Q2 2022 Earnings Presentation
11 slides from American Coastal Insurance's earnings presentation, Aug 8, 2022
Slide 1: United Insurance Holdings Corporation Investor Presentation
United Insurance Holdings Corporation (Nasdaq: UIHC) Investor Presentation August 8th, 2022
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 3 P&C carriers and operating affiliates operating under the brand UPC Insurance
Slide 3: Executive Summary
3 Executive Summary • Q2 Results • Core loss of -$64.3m included a -$43.7m valuation allowance (VA) on UIHC’s deferred tax asset. • Core loss of -$20.6m excluding the VA compared favorably to -$24.6m core loss last year due to declines in losses and operating expenses. • Gross current year CAT of $5
Slide 4: Q2-2022 Results
Q2-2022 Results 4 Core loss excluding valuation allowance was -$20.6m, an improvement of $4m (16%) Y/Y A valuation allowance was established against 100% of UIHC’s deferred tax asset driven by our NOL carry forward Prior year reserve development (PYD) and higher loss severity led to a higher direct
Slide 5: Results by Line of Business
Results by Line of Business 5 Commercial (CL) has a great quarter, but reinsurance & loss costs weighed on Personal (PL) $ in millions CL PL Other Total CL PL Other Total Gross Premiums Earned 113.2$ 192.5$ -$ 305.8$ 220.7$ 404.3$ -$ 625.0$ Ceded Premiums Earned (61.8) (132.6) - (194.4) (123.8) (288
Slide 6: Balance Sheet Highlights
Balance Sheet Highlights 6 Equity erosion of ~$145m driven by: • Valuation allowance (VA) = -$43.7m • Net Loss excluding VA = -$58.5m • Change in AOCL = -$42.3m Jun. 30, Dec. 31, ($ in thousands, except per share amounts) 2022 2021 Variance Selected Balance Sheet Data Cash & investments 898,379$ 964
Slide 7: Personal Lines Premium Trend
Personal Lines Premium Trend 7 Additional premium increased 71% despite 25% fewer policies renewing Y/Y Month Addt'l Premium From Rate Change Prem Rate RB PIF 04/30/21 7,335,418 4.11 32,398 05/31/21 8,024,899 4.15 33,357 06/30/21 8,523,362 4.18 34,209 07/31/21 12,315,237 4.38 34,020 08/31/21 10,608,
Slide 8: Commercial Lines Rate Trend
Commercial Lines Rate Trend 8 Renewal rate change over +20% in Q2 demonstrates strong pricing power
Slide 9: Combined Premium & Exposure Trends
Combined Premium & Exposure Trends 9 Premiums holding flat while TIV decreases significantly Trends continue to show premium holding relatively flat while TIV decreases.
Slide 10: Cautionary Statements
Cautionary Statements 10 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 11: UPC Insurance
UPCZS INSURANCE
United Insurance Holdings — Q2 2022 Earnings Presentation on 6ix