American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — United Insurance Holdings — IPO Roadshow (November 2012)
21 slides from American Coastal Insurance's IPO roadshow presentation, Nov 30, 2012
Slide 1: United Insurance Holdings Corp. Follow-On Roadshow
United Insurance Holdings Corp. Follow-On Roadshow November 2012 Filed Pursuant to Rule 433 Issuer Free Writing Prospectus dated November 30, 2012 Relating to Preliminary Prospectus dated November 29, 2012 Registration Statement No. 333-184555
Slide 2: Cautionary Statements
Cautionary Statements The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for m
Slide 3: Offering Summary
Offering Size 5,000,000 primary shares and 300,075 secondary shares Approximately $30 million at recent share price Last Trade $5.38 as of November th , Type Follow-on public offering of common stock Over-Allotment 15% (Primary) Exchange and Symbol Currently traded on OTCBB under “UIHC” Concurrent w
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Slide 5: UIHC Investment Highlights
Compelling Market Opportunity Strong Financial Performance Superior Insurance Capabilities Exceptional Management Team Attractive Valuation UIHC Investment Highlights
Slide 6: Management team
Gregory C. Branch Chairman • Chairman of United since inception in 1999 • Former Chairman of Summit Holding Southeast, Inc. • Prior Member of Lloyd’s of London for over 20 years • President/Owner, Branch Properties – Parent company of Seminole Feed John L. Forney CEO • Joined United in June 2012 • F
Slide 7: UIHC is...
An insurance holding company that sources, writes and services residential property and casualty insurance policies using a network of independent agents and a group of wholly- owned insurance subsidiaries. UIHC is………..
Slide 8: Business Overview
• Focused strategy – Opportunity is homeowners’ market in wind-exposed areas from Texas to Maine • Well established relationships with distribution channels – Total active network includes approximately 2,000 agents – Key strategic relationships: FAIA and Allstate • Strong and careful underwriting –
Slide 9: UIHC – What and Where We Write
Total policies in-force: 124,496 (1) Total premium in-force: $241,956 91% 88% (1) Policy numbers exclude flood line of business Data as of September 30, 2012 Premium In-Force by Line of Business Policies In-Force UIHC – What and Where We Write 8% 3% 2% Florida South Carolina Massachusetts Rhode Isla
Slide 10: UIHC Has a Successful Operating History
United has been profitable in all but one of its thirteen years of operations and is well-positioned to grow rapidly in Florida and other markets 1999 2002 2004 2005 2008 2009 2010 2011 PHASE 1: 1999-2007 United begins operations in Florida in 1999 and records profits every year, even in the wake of
Slide 11: Market Opportunity
Increased perception of risk and resulting dislocation in property insurance markets creates an opportunity to establish a successful and defensible market position for UIHC Source: Insurance Information Institute $2-$3B $3-$4B $4-$5B $5-$10B $10-$20B $20B+ TX $13.4 LA $7.9 MS $4.1 AL $4.9 SC $3.1 N
Slide 12: Market Opportunity
UIHC can achieve scale with a diverse book spread across various states Source: SNL Financial UIHC’s Percentage of 2011 Homeowner’s Market S. Carolina Massachusetts Rhode Island 2.18% 0.65% 0.01% NA Market Opportunity Florida 2011 Homeowner’s Market – Direct Premiums Written (Premiums in $000’s)
Slide 13: UIHC is Growing in the Right Way
Not Dependent on “Takeouts” from Citizens Strong independent agent distribution channels The Right Rate for the Right Risk Not competing on price for new business Conservative Risk Metrics Stringent portfolio optimization process for each policy added Robust, Comprehensive Reinsurance Program Buy to
Slide 14: Quality Growth Reflected in Portfolio Metrics
$ in thousands, except policy data Nine Months Ended Years Ended December 31, Sept. 30, 2012 2011 2010 2009 Quality Growth Reflected in Portfolio Metrics Total Insured Value and Policies In-Force Avg. Annual Loss to Premium In-Force Number of Policies In-Force (PIF) 124,496 101,754 80,514 93,022 Gro
Slide 15: 2012 Reinsurance Program
2012 Reinsurance Program • $103 million cost for • Cover includes a diverse and strong group of 24 separate reinsurers • Horizontal and vertical coverage: one-in-100 year single event plus multiple event coverage Total $552.6M First Event Coverage over $536 million of coverage Private Layer 4 (INCR)
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Slide 17: Historical Income Statement
$ in thousands, except per share data For the Nine Months Ended September 30, For the Years Ended December 31, 2012 2011 2011 2010 2009 2008 2007 Historical Income Statement Historical Underwriting Ratios Gross premiums written 195,385 $ 160,337 $ 203,806 $ 158,637 $ 155,840 $ 141,556 $ 145,050 $ Gr
Slide 18: Historical Balance Sheet
$ in thousands As of September 30, As of December 31, 2012 2011 2011 2010 2009 2008 2007 Historical Balance Sheet Growth of Book Value Per Share LTM growth of 24.4% Cash and invested assets 219,391 $ 185,583 $ 165,898 $ 126,242 $ 160,110 $ 155,712 $ 170,634 $ Reinsurance recoverable on paid and unpa
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Slide 21: UIHC Investment Highlights
Compelling Market Opportunity Strong Financial Performance Superior Insurance Capabilities Exceptional Management Team Attractive Valuation UIHC Investment Highlights
United Insurance Holdings — IPO Roadshow (November 2012) on 6ix