American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — United Insurance Holdings — 26th Annual Raymond James Insurance Conference (June 2023)
16 slides from American Coastal Insurance's conference presentation, Jun 26, 2023
Slide 1: 26th Annual Raymond James Insurance Conference
Investor Presentation 26th Annual Raymond James Insurance Conference | CFA Society New York New York, NY | June 26th, 2023
Slide 2: Company Overview
Company Overview 2 UIHC 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 two P&C carriers: American Coastal Insurance Company (ACIC) and Interboro Insurance Company (IIC) a
Slide 3: Executive Summary
3 Executive Summary • On July 1, 2020, Dan Peed took over as Chairman & CEO of UIHC seeking to de-risk the Company’s struggling personal lines business and allocate more resources towards our consistently profitable commercial lines segment. • The Company subsequently tightened underwriting guidelin
Slide 4: Investment Thesis
Investment Thesis 4 1 Leadership position with a # 1 market share in Florida commercial residential condominium associations 6 Focus on low-rise and garden-style condominium buildings with above-average risk characteristics 7 Exclusive partnership in Florida between ACIC and AmRisc, the leading comm
Slide 5: ACIC Historical Premiums
ACIC Historical Premiums 5 Premium growth driven primarily by rate increases, not exposure growth. ¹ 2020 and 2021 include adjustment for allocation of ceded premiums $ in thousands ($000) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ¹ 2021 ¹ 2022 Gross Premiums Written 233,349$ 259,349$ 303,36
Slide 6: ACIC Pricing Trends
ACIC Pricing Trends 6 Hard market conditions & reinsurance cost driving rates to highest in over 10 years. Target Model Price = 32% Loss Ratio at 100% Model Price (10.7% Loss Ratio at 300% Model Price).
Slide 7: ACIC Retention Trends
ACIC Retention Trends 7 Retention remains strong amid significant pricing increases. 92% 78% 72% 78% 86% 98% 105% 111% 123% 94% 85% 82% 87% 87% 93% 90% 92% 92% 0% 20% 40% 60% 80% 100% 120% 140% 2014 2015 2016 2017 2018 2019 2020 2021 2022 Premium Retention Account Retention
Slide 8: ACIC Historical Profitability
ACIC Historical Profitability 8 ACIC has been profitable every year since inception inclusive of major hurricane losses. Irma Michael Ian ¹ 2020 and 2021 include adjustment for allocation of ceded premiums ¹ ¹ $ in thousands ($000) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ¹ 2021 ¹ 2022 GAAP
Slide 9: Underwriting Strategy
Underwriting Strategy 9 Focus in on habitational commercial residential property in Florida. ▪ Admitted Lines: Florida ▪ Target Risks: Low-rise, garden-style condominiums ▪ Geographical Specialty: State of Florida ▪ Target Total Insured Value: Up to $75m ▪ Minimum Deductible: $1,000 - $10,000 AOP, 3
Slide 10: Underwriting Partnership
Underwriting Partnership 10 ACIC has a long-standing relationship with AmRisc, LLC since its formation in 2007. ▪ ACIC has an exclusive MGA agreement with AmRisc, LLC to provide a broad range of services – Including distribution, underwriting, policy issuance, inspection, claims services and portfol
Slide 11: Operational Overview
Operational Overview 11 ACIC ultimately sets the strategy and direction for the risk portfolio, while AmRisc executes. ▪ Accounting and actuarial ▪ Product design and filings ▪ Underwriting strategy – Provide direction and pricing targets ▪ Reinsurance design and execution ▪ Risk management and risk
Slide 12: UIHC Balance Sheet Highlights
UIHC Balance Sheet Highlights 12 Stockholders’ equity and BVPS were restored to positive amounts upon de-consolidation of our former affiliate UPC. Mar. 31, Dec. 31, ($ in thousands, except per share amounts) 2023 2022 ¹ % Variance Selected Balance Sheet Data Cash & investments 372,721$ 340,905$ 9.3
Slide 13: 2023-24 Catastrophe Reinsurance Program - ACIC
2023-24 Catastrophe Reinsurance Program - ACIC 13
Slide 14: 2023-24 Catastrophe Reinsurance Program - IIC
2023-24 Catastrophe Reinsurance Program - IIC 14
Slide 15: Compelling Upside Potential
Compelling Upside Potential 15 UIHC appears undervalued based on earnings relative to others. Source: S&P Capital IQ. PitchBook. Note: Market data as of 6/16/2023 2023 E 2024 E Florida Property Universal Insurance Holdings 8.3 6.9 HCI Group 31.5 21.6 Heritage Insurance Holdings 6.8 5.0 Mean 15.5 11.
Slide 16: Cautionary Statements
Cautionary Statements 16 This presentation contains, and our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include expect
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