American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — Q3 2024 Earnings Presentation
12 slides from American Coastal Insurance's earnings presentation, Nov 6, 2024
Slide 1: Earnings Presentation 3rd Quarter 2024
Earnings Presentation 3rd Quarter 2024 November 6th, 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 September 30, 2024 holding company for two P&C carriers: American Coastal Total Assets: $1.14 billion Insurance Company (AmCoastal)
Slide 3: Executive Summary
Executive Summary • Q3-24 Results • Non-GAAP Core Income of $26.9m ($0.54) increased $11.4m (+73.6%) from $15.5m ($0.35) y/y on lower ceded earned premiums resulting from the step down of the 40% gross CAT quota share effective 6.1.2023 to 20% effective 6.1.2024. • Net premiums earned grew $24.2m (+
Slide 4: 2H-2024 Hurricane Estimates
2H-2024 Hurricane Estimates Despite an active hurricane season, ACIC is expected to remain profitable. % of 9.30.24 Hurricane Gross Ceded Net Tax benefit After tax GAAP Equity Debby $ 1.0 $ (0.2) $ 0.8 $ (0.2) $ 0.6 0.24% Helene $ 5.0 $ (1.0) $ 4.0 $ (0.8) $ 3.2 1.22% Sub-Total (3Q) $ 6.0 $ (1.2) $
Slide 5: 3Q-24 Financial Scorecard
3Q-24 Financial Scorecard Key results all compare favorably to Raymond James’ estimates for the current period. Core Earnings per Share (CEPS) Combined Ratio (CR) 3Q-24 = $0.54 3Q-24 = 57.7% vs. vs. Analyst’s Est. = $0.15 Analyst’s Est. = 89.3% Book Value per Share (BVPS) Core Return on Equity (CROE
Slide 6: 3Q-24 Summary of Key Results
3Q-24 Summary of Key Results Combined ratio decreased 5.0 points and core income grew $11.4m ($0.19) due to higher net premiums. 6
Slide 7: 3Q-24 Operating Overview
3Q-24 Operating Overview Earnings before income tax improved +101.7% driven by our reduced quota share cession rate. The impact of the quota share step down from 40% to 20% effective June 1, 2024, had a significant impact on ceded premiums earned and operating expense (policy acquisition costs) y/y.
Slide 8: 2024 Full Year & 4Q-24 Guidance
2024 Full Year & 4Q-24 Guidance We expect to be profitable in the fourth quarter, despite the impact of Hurricane Milton. Estimated range of Net Income Estimated range of Net from Continuing Operations ¹ Premiums Earned ¹ Low High Low High FY-24 E $ 75.0 - $ 80.0 FY-24 E $ 270.0 - $ 280.0 FY-23 A $8
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights Sep 30, Dec. 31, YTD ($ in thousands, except per share amounts) 2024 2023 % Change Selected Balance Sheet Data Cash & investments $ 630,867 $ 311,874 102.3% Accumulated other comprehensive income (loss) $ (11,617) $ (17,137) -32.2% Unpaid loss & LAE reserves $ 194,678 $ 347,
Slide 10: Investment Portfolio Overview
Investment Portfolio Overview • The Company continues to add to its investment positions • Focusing on a resilient and high-quality portfolio in anticipation of future cash yields decreasing. considerate of current market conditions and risks. 10
Slide 11: Commercial Property Valuation Trends
Commercial Property Valuation Trends Valuation changes are slowing down as inflationary pressure moderates. 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
American Coastal Insurance — Q3 2024 Earnings Presentation on 6ix