American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — Q1 2024 Earnings Presentation
13 slides from American Coastal Insurance's earnings presentation, May 9, 2024
Slide 1: Earnings Presentation 1st Quarter 2024
Earnings Presentation 1st Quarter 2024 May 9th, 2024
Slide 2: Company Overview
Company Overview ACIC is a specialty underwriter of catastrophe exposed property insurance. American Coastal Insurance Corp. (Nasdaq: ACIC) is the insurance ACIC as of March 31, 2024 holding company for two P&C carriers: American Coastal Total Assets: $1.08 billion Insurance Company (AmCoastal) and
Slide 3: Executive Summary
Executive Summary • Q1-24 Results • Non-GAAP Core Income of $24.3m ($0.50) decreased -$6.4m (-20.9%) from $30.7m ($0.70) y/y on higher ceded earned premiums resulting from the 40% gross CAT quota share effective 6.1.2023. • Gross premiums earned grew $24.3m (+17%) to $168.8m y/y due to improving rat
Slide 4: 1Q-24 Summary of Key Results
1Q-24 Summary of Key Results Combined ratio improved 4 points, but core income declined -$6.4m ($0.20) due to reinsurance costs. $ in thousands, except per share amounts Q1-24 Q1-23 Change Net income (loss) $ 23,599 $ 267,280 n/m per diluted share (EPS) $ 0.48 $ 6.14 Reconciliation to core income (l
Slide 5: 1Q-24 Operating Overview
1Q-24 Operating Overview Earnings before income tax were close to last year even with the significant change in ceded premium. $ in millions Q1-24 Q1-23 Change % Chg Gross Premiums Earned $ 168.8 $ 144.5 24.3 16.8% Ceded Premiums Earned (100.1) (57.2) (42.9) 75.0% Net Premiums Earned 68.7 87.3 (18.6
Slide 6: 1Q-24 Segment Results
1Q-24 Segment Results Personal lines profitability was a welcome sight in Q1 driven by lower policy acquisition costs. Three Months Ended Mar 31, 2024 $ in millions CL PL Other Total Gross Premiums Earned $ 160.3 $ 8.6 $ - $ 168.8 Ceded Premiums Earned Net Premiums Earned (97.6) 62.6 (2.5) 6.1 - - (
Slide 7: Balance Sheet Highlights
Balance Sheet Highlights Mar. 31, Dec. 31, Q/Q ($ in thousands, except per share amounts) 2024 2023 % Change Selected Balance Sheet Data Cash & investments $ 504,456 $ 369,023 36.7% Accumulated other comprehensive income (loss) $ (17,335) $ (17,137) 1.2% Unpaid loss & LAE reserves $ 279,556 $ 370,22
Slide 8: AmCoastal Premium and TIV Trends
AmCoastal Premium and TIV Trends Premiums in-force are up +16% y/y but exposures are down -19% vs. Mar-23 Commercial Lines Premium & Total Insured Value (TIV) In-force Risk/Return profile remains strong 8
Slide 9: Persistently Improving CL Portfolio
Persistently Improving CL Portfolio Market conditions are still very firm and supportive of underwriting requirements. 9
Slide 10: IIC Renewal Rate Trends
IIC Renewal Rate Trends Renewal retention was 91.7% in Q1 with a renewal rate change of +11.5%. 10
Slide 11: Projected 2024-25 CAT Reinsurance Program - AmCoastal
Projected 2024-25 CAT Reinsurance Program - AmCoastal Program Illustration Program Expectations • Hurricane coverage with no exposure to secondary perils (secondary perils covered by the AOP CAT program placed at 1/1/24). • Reducing gross CAT quota share from 40% to 20%. • Net result is significant
Slide 12: Projected 2024-25 CAT Reinsurance Program - IIC
Projected 2024-25 CAT Reinsurance Program - IIC Program Illustration Program Expectations • $85M exhaustion point is similar to our expiring program. • However, exposure decreased ~17% y/y. • Targeting retention reduction from $3.0m to $2.5m y/y. 100 YR (50/50 Blend) • All CAT perils coverage. • NY
Slide 13: 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
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