American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — Q4 2023 Earnings Presentation
12 slides from American Coastal Insurance's earnings presentation, Feb 29, 2024
Slide 1: Earnings Presentation 4th Quarter 2023
Earnings Presentation 4th Quarter 2023 February 29th, 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 December 31, 2023 holding company for two P&C carriers: American Coastal Total Assets: $1.06 billion Insurance Company (AmCoastal) a
Slide 3: Executive Summary
Executive Summary • Q4-23 Results • Non-GAAP Core Income of $17.7m ($0.39) increased $13.3m (+297%) from $5.1m ($0.12) y/y on higher gross premiums earned combined with lower net retained catastrophe losses and operating expenses. • Net income from continuing operations of $17.1m ($0.37) improved $1
Slide 4: 4Q-23 Summary of Key Results
4Q-23 Summary of Key Results Solid results include non-recurring pre-tax charges of $6.4m for reinsurance & $2.0m for software impairment. $ in thousands, except per share amounts Q4-23 Q4-22 ¹ Change 2023 2022 ¹ Change Net income (loss) $ 14,284 $ (296,770) n/m $ 309,911 $ (469,855) n/m per diluted
Slide 5: 4Q-23 Results from Continuing Operations
4Q-23 Results from Continuing Operations Revenue decreased due to higher quota share cessions but was offset by lower loss & operating expenses. $ in millions Q4-23 Q4-22 ¹ Change % Chg Gross Premiums Earned $ 167.5 $ 144.8 22.7 15.7% Ceded Premiums Earned (111.9) (68.0) (43.9) 64.6% Net Premiums Ea
Slide 6: 4Q-23 Reinsurance Charge
4Q-23 Reinsurance Charge ACIC commuted a portion of its 2023 Core CAT program in exchange for a no claims bonus (NCB). Increase (decrease) in ceded premiums earned by period: Premium Amortization (Net) Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Total Original Cost 3,107,582 9,529,918 9,529,918 9,426,332 6,318,75
Slide 7: 4Q-23 Segment Results
4Q-23 Segment Results Commercial loss results were exceptional and rate increases expected to improve PL over time. Three Months Ended Dec 31, 2023 Twelve Months Ended Dec 31, 2023 $ in millions CL PL Other Total CL PL Other Total Gross Premiums Earned $ 159.1 $ 8.4 $ - $ 167.5 $ 594.7 $ 41.2 $ - $
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights Dec. 31, Sep. 30, Q/Q ($ in thousands, except per share amounts) 2023 2023 % Change Selected Balance Sheet Data Cash & investments $ 369,023 $ 286,944 28.6% Unpaid loss & LAE reserves $ 370,221 $ 443,406 -16.5% Financial debt $ 148,688 $ 148,604 0.1% Accumulated other compre
Slide 9: Underwriting Environment
Underwriting Environment The hard market is starting to soften slightly as reinsurance capacity and pricing moderates. • We experienced increased competition for commercial residential policies in Florida during the fourth quarter. This did not have a material impact on our results but could be a he
Slide 10: Premium & Exposure Trends
Premium & Exposure Trends Premiums in-force are up +28% y/y but exposures are down -18% y/y. Commercial Lines Premium & Total Insured Value (TIV) In-force Rate levels are moderating Exposure growth in 2024 expected reverse the downward TIV trend 10
Slide 11: Valuation Trends
Valuation Trends Consistent valuation changes are mitigating underwriting and inflation risks. 11
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
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