American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — Q1 2025 Earnings Presentation
13 slides from American Coastal Insurance's earnings presentation, May 8, 2025
Slide 1: Earnings Presentation 1st Quarter 2025
Earnings Presentation 1st Quarter 2025 May 8th, 2025
Slide 2: Company Overview
Company Overview ACIC is a specialty underwriter of catastrophe exposed commercial property insurance. American Coastal Insurance Corp. (Nasdaq: ACIC) is the insurance ACIC as of March 31, 2025 holding company for American Coastal Insurance Company (AmCoastal), a Florida domiciled P&C carrier, and S
Slide 3: Executive Summary
Executive Summary • 1Q-25 Results • Non-GAAP Core Income of $20.7m ($0.42) decreased $3.7m (-15.3%) from $m ($0.50) y/y on higher policy acquisition costs (PAC) due to lower ceding commission income, offset by lower ceded earned premiums resulting from the step down of the 40% gross CAT quota share
Slide 4: 1Q-25 Financial Scorecard
1Q-25 Financial Scorecard Results remain in line with Raymond James’ estimates for the quarter. Core Earnings per Share (CEPS) Combined Ratio (CR) 1Q-25 = $0.42 1Q-25 = 65.0% vs. vs. Analyst’s Est. = $0.45 Analyst’s Est. = 64.1% Book Value per Share (BVPS) Core Return on Equity (CROE) 1Q-25 = $5.40
Slide 5: 1Q-25 Summary of Key Results
1Q-25 Summary of Key Results Net & Core Income declined y/y due to higher policy acquisition costs. Combined ratio was at target of 65%. $ in thousands, except per share amounts Q1-25 Q1-24 Change Net income (loss) $ 21,348 $ 23,599 -9.5% per diluted share (EPS) $ 0.43 $ 0.48 Reconciliation to core
Slide 6: 1Q-25 Operating Overview
1Q-25 Operating Overview While Net Income decreased y/y our results remain strong and combined ratio remains at target. The impact of the quota share step down from 40% to 20% effective June 1, 2024, had a significant impact on ceded premiums earned and operating expense (policy acquisition costs) y
Slide 7: Balance Sheet Highlights
Balance Sheet Highlights Liquidity and equity continued to improve along with operating and financial leverage. Our long-term target for debt/capital is 20% or less. 7
Slide 8: Investment Portfolio Overview
Investment Portfolio Overview • The Company’s cash position increased, partially offset by • The Company’s high quality fixed income investments a decrease in equities driven by first quarter sales. have mitigated the impacts of Q1 market volatility. 8
Slide 9: Average Account Rate Trends & Wind Deductible
Average Account Rate Trends & Wind Deductible The FL admitted market is generally much more stable than the E&S commercial property market over time. 9
Slide 10: Commercial Property Valuation Trends
Commercial Property Valuation Trends Replacement costs are being watched carefully and are holding firm. 10
Slide 11: 2/1/25 Auto Fac: Structure & Highlights (Revised)
2/1/25 Auto Fac: Structure & Highlights (Revised) Structure Illustration Excess Per Risk Program Highlights $65m Excess of loss per risk (XPR) protection placed on a per building basis. Single Building Private Placement Decreased consolidated group retention to $4 million. $35m Increased limit
Slide 12: 6/1/25 Projected Core CAT Program
6/1/25 Projected Core CAT Program Structure Illustration Core Catastrophe Program Highlights TBD TBD Layer 5: $100M xs $300M Occurrence and aggregate limit expected to increase y/y, but Placed x% exhaustion point return time may decrease slightly due to model changes in both AIR & RMS that increas
Slide 13: Cautionary Statements
Cautionary Statements This presentation and the accompanying remarks contain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward looking statements include expectations regarding our diversification, growth opportunities, retent
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