American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — United Insurance Holdings — Q2 2019 Earnings Presentation
10 slides from American Coastal Insurance's earnings presentation, Jul 31, 2019
Slide 1: Investor Presentation 2nd Quarter 2019
Investor Presentation 2nd Quarter 2019 July 31, 2019 St. Petersburg, FL
Slide 2: Financial Highlights
Financial Highlights 6.30.19 6.30.18 Total Assets $2.70 b $2.32b BVPS $12.54 $12.72 Gross Written Premium $768.3 m $664.3m Net Income $8.7 m $ 23.1m Core Income ($0.3) m $ 33.3m Core ROAE (annualized) (0.1)% 12.4% Combined Ratio 106.0% 95.0% Underlying Combined Ratio 93.0% 88.5% 2
Slide 3: Q2-2019 Executive Summary
Q2-2019 Executive Summary I. REVENUE HIGHLIGHTS • Gross Premiums Written of $449.8m: • Up +17% (+$65.1m) y/y • Commercial lines up +28% (+$35.9m) | Personal Lines +11% (+$29.2m) • Florida +19% (+$38.2m) | Non-Florida +12% (+$16.8m) • Gross Premiums Earned (GPE) of $330.0m: • Up +14% (+$40.4m) y/y •
Slide 4: Revenue Growth by Line/Region
Revenue Growth by Line/Region All Regions and Lines Grew ~ 16% in the 1H-19 Personal Lines +13% 21% 14% Strong double digit organic growth across 19% the board 14% 11% 4
Slide 5: Q2-2019 vs. Prior Year: Bottom Line Impacted By CAT Losses & Prior Year Development
Q2-2019 vs. Prior Year Bottom Line Impacted By CAT Losses & Prior Year Development $ in millions Q2-19 PY PY Var Gross Premiums Earned $ 330.0 $ 289.6 $ 40.4 Ceded Premiums Earned (139.6) (118.3) (21.3) Net Premiums Earned 190.4 171.3 19.1 Investment & Other Income 14.4 11.8 2.5 Total Revenue 204.8
Slide 6: Prior Year Development Summary
Prior Year Development Summary Florida Personal Lines drove the Prior Year Reserve Development All States FL Non-FL Q1 was 100% CAT Driven vs. Q2 2013 & Prior $ (11) $ 224 $ (235) 2014 $ (117) $ (55) $ (62) which was 56% CAT / 44% 2015 $ 342 $ 366 $ (24) NonCAT 2016 $ 899 $ 672 $ 228 2017 $ 419 $ 3,
Slide 7: Personal Lines NonCat Loss Ratio Improving
Personal Lines NonCat Loss Ratio Improving NonCAT loss ratio by accident year still trending favorably despite development at 6.30.19 7
Slide 8: Growth & Profit Improvement Actions
Growth & Profit Improvement Actions • Rate changes • Approved = +9.2% FSIC-FL (6/1/19) and 5% UPC-NY (4/1/19) • Pending = +13.3% UPC-FL (est. 10/1/19) and +12.5% FSIC-FL (est. 10/1/19 new & 11/1/19 renewal) • Underwriting changes • Aerial imagery and AI technology being used to evaluate roof shape a
Slide 9: Florida Rate Changes
Florida Rate Changes 3 FL Rate Changes Effective in 2019 Will Generate Approximately $39M in Additional Premium CURRENT Approved EXPECTED PREMIUM IMPACT In-force In-force Renewal Rate Adjusted Adjusted Renewal Premium Adjusted P&L Policies Premium Retention Premium Average Change Retention PIF Premi
Slide 10: Predictive Analytics Model – Back Test & RI Validation
Predictive Analytics Model – Back Test & RI Validation Estimated Non Cat Total Total Total Estimated Estimated Combined Action Non-CAT Inc Loss Cat Incurred Cat Incurred Incurred Non-CAT CAT Total Total Loss Loss Reinsurance Combined Ratio w 27% Estimated State Company Level EP EHY Incurred Loss Rat
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