American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — United Insurance Holdings — Q3 2022 Earnings Presentation
13 slides from American Coastal Insurance's earnings presentation, Nov 9, 2022
Slide 1: United Insurance Holdings Corporation Investor Presentation
United Insurance Holdings Corporation (Nasdaq: UIHC) Investor Presentation November 9th, 2022
Slide 2: Company Overview
Company Overview 2 UPC Insurance is a specialty underwriter of catastrophe exposed property insurance. United Insurance Holding Corp. (NASDAQ: UIHC) was founded in 1999 and is the insurance holding company for 3 P&C carriers and operating affiliates operating under the brand UPC Insurance (UPC). UPC
Slide 3: Executive Summary
3 Executive Summary • Q3 Results • GAAP net loss of -$70.9m included a -$13.6m non-recurring goodwill impairment charge related to personal lines withdrawal plans. • Core loss of -$57.5m excluding goodwill impairment compared unfavorably to a -$15.5m core loss last year due to higher loss costs. • G
Slide 4: Q3-22 Results
Q3-22 Results 4 Core loss excluding goodwill impairment was -$57.5m, a decline of -$42.1m from prior year. Loss development continued to exceed expectations for prior accident years driven by higher severity. Q3-22 Q3-21 Change Core income (loss) (57,527)$ (15,453)$ -272.3% per diluted share (CEPS)
Slide 5: Q3-22 Results by Line of Business
Q3-22 Results by Line of Business 5 Commercial lines remained profitable despite the impact of Hurricane Ian. $ in millions CL PL Other Total CL PL Other Total Gross Premiums Earned 119.8$ 182.1$ -$ 301.9$ 340.5$ 586.4$ -$ 926.9$ Ceded Premiums Earned (60.3) (125.4) - (185.7) (184.1) (414.3) - (598.
Slide 6: Hurricane Ian: Core CAT Reinsurance Program Impact
Hurricane Ian: Core CAT Reinsurance Program Impact 6 We have $1.39b of aggregate limit remaining, but UPCIC’s limit for Ian is nearing exhaustion. Our retention for a second event could be up to $31.8m with $16.4m net to ACIC & UPC with another $15.4m to UPC Re. Our captive’s (UPC Re) share of the U
Slide 7: Balance Sheet Highlights
Balance Sheet Highlights 7 Equity erosion of ~$232m driven by: Hurricane Ian = -$35.6m Change in AOCI = -$58.3m Valuation allowance = -$53.9m Goodwill impairment = -$13.6m Prior year development = -$53.8m All Other items = -$16.8m Sep. 30, Dec. 31, ($ in thousands, except per share amounts) 2022 202
Slide 8: Business In-force
Business In-force 8 Personal lines (PL) continues to shrink while Commercial lines (CL) grows. 12.31.21 9.30.22 Change 12.31.21 9.30.22 Change 12.31.21 9.30.22 Change 1 FL 198,838 147,520 -25.8% 437,211$ 392,844$ -10.1% 89,605$ 71,223$ -20.5% 2 TX 67,755 44,181 -34.8% 130,754$ 91,604$ -29.9% 29,915$
Slide 9: Personal Lines Premium Trend
Personal Lines Premium Trend 9 All Personal Lines Metric 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 Renewing Policies 93,364 71,661 64,016 74,306 63,371 Renewal Acceptance 80.8% 82.3% 79.4% 75.1% 70.4% Company Initiated Non-Renewals 11,959 5,046 5,755 10,508 12,270 Renewal Acceptance xNon-Renewals 90.2
Slide 10: Commercial Lines Rate Trend
Commercial Lines Rate Trend 10 Renewal rate change for American Coastal driven by hard market conditions.
Slide 11: Combined Premium & Exposure Trends
Combined Premium & Exposure Trends 11 Premiums still holding flat while exposures decrease.
Slide 12: Cautionary Statements
Cautionary Statements 12 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 13: UPC Insurance
UPCZ® INSURANCE
United Insurance Holdings — Q3 2022 Earnings Presentation on 6ix