American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — United Insurance Holdings — Q4 2021 Earnings Presentation
16 slides from American Coastal Insurance's earnings presentation, Feb 23, 2022
Slide 1: United Insurance Holdings Corporation Investor Presentation
United Insurance Holdings Corporation (Nasdaq: UIHC) Investor Presentation February 23, 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 5 P&C carriers and operating affiliates operating under the brand UPC Insurance
Slide 3: Executive Summary
3 • Q4-2021 Results • Core loss of -$1.0m (-$0.02 per share) compared favorably to -$58.1m (-$1.35 per share) last year due to lower net retained losses from catastrophe events. • Stockholders’ equity attributable to UIHC at 12.31.2021 was $312.4m ($7.20 per share) with tangible book value per share
Slide 4: Q4-2021 Results
Q4-2021 Results 4 Core earnings improved dramatically from last year’s -$58m loss to nearly break-even. • We labeled 2021 a transition year because we significantly increased our reinsurance spend to de-risk and de-leverage our portfolio. • Ceded premiums hurt Q4 results, but our lower risk retentio
Slide 5: Key Underwriting Metrics
5 Key Underwriting Metrics Gross loss & expense ratios were better than last year & long-term average. 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 2016 2017 2018 2019 2020 2021 Gross Loss Ratio - Underlying 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2016 2017 2018 2019 2020 2021 Gross Loss Ratio - CA
Slide 6: Results by Line of Business
Results by Line of Business 6 Our Specialty Commercial Continues to Perform Well. • Personal Lines (PL) represents our homeowners’ business and is performing outside of Florida, but Commercial Lines (CL) is what we seek to grow over time. • PL core earnings improved from the same periods (QTD & YTD)
Slide 7: UPC Litigation vs. Industry
UPC Litigation vs. Industry 7 Our decrease in new lawsuits after 7/1/21 is consistent with other homeowner carriers in FL. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 661 705 729 676 668 857 789 461 433 463 399 418 AOB 105 136 146 125 115 221 123 86 76 89 88 116 % AOB 16% 19% 20% 18% 17% 2
Slide 8: Personal Lines Renewal Rate Change is Significant
8 Personal Lines Renewal Rate Change is Significant PL generated over $101 million of additional premium in 2021 from rate actions. Metric 2021 Q1 2021 Q2 2021 Q3 2021 Q4 FY 2021 Renewing Policies 96,261 117,616 108,074 81,548 403,499 PIF Avail. For Renewal 113,188 146,045 141,036 105,499 505,768 Re
Slide 9: Commercial Lines Rate Increases Accelerating
Commercial Lines Rate Increases Accelerating 9 Florida commercial residential is a hardening market and ripe for underwriting profit. 0% 50% 100% 150% 200% 250% 300% Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 6 period moving average (ACIC CAT MP
Slide 10: Premium Relative to Exposure Improving
Premium Relative to Exposure Improving 10 We expect this gap to widen further from additional underwriting improvement initiatives.
Slide 11: Portfolio Optimization is Working
Portfolio Optimization is Working 11 Higher rates + exposure reductions targeting risk (PML) drivers = better results over time.
Slide 12: Summary of Business In-force
Summary of Business In-force 12 12.31.20 12.31.21 Change 12.31.20 12.31.21 Change 12.31.20 12.31.21 Change 1 FL 247,287 198,838 -19.6% 477,533$ 437,211$ -8.4% 109,824$ 89,605$ -18.4% 2 SC 45,655 33,748 -26.1% 60,773$ 50,589$ -16.8% 20,648$ 16,299$ -21.1% 3 MA 29,973 24,992 -16.6% 52,746$ 47,328$ -10
Slide 13: Financial Leverage Increased While Operating Decreased
Financial Leverage Increased While Operating Decreased 13 Equity erosion of ~$83.3m (-21.1%) resulted in our debt/capital ratio increasing to 33.4%. Exposure reduction and lower retention of risk are expected to continue lowering operating leverage. Dec. 31, Dec. 31, ($ in thousands, except per shar
Slide 14: Corporate Strategy
Corporate Strategy 14 We seek to be a top-quartile specialty underwriter of CAT exposed property insurance. Innovative Reinsurance Programs & Long- Standing Partnerships Highly Specialized Coastal Underwriter Sophisticated Risk Selection and Exposure Management Proprietary, Scalable Technology to Pr
Slide 15: Cautionary Statements
Cautionary Statements 15 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 16: UPC Insurance
UPCZS INSURANCE
United Insurance Holdings — Q4 2021 Earnings Presentation on 6ix