American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — United Insurance Holdings — Q4 2022 Earnings Presentation
10 slides from American Coastal Insurance's earnings presentation, Mar 2, 2023
Slide 1: Investor Presentation March 2nd, 2023
United Insurance Holdings Corporation (Nasdaq: UIHC) Investor Presentation March 2nd, 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 2 P&C carriers: American Coastal Insurance Company (ACIC) and Interboro Insurance Company (IIC) alo
Slide 3: Executive Summary
3 Executive Summary • Q4 Results • GAAP net loss of -$294.9m included $196.6m of current year net catastrophe losses and $58.9m of adverse prior year development. • Core loss of -$273.0m excluded -$30.2m of realized investment losses (before tax) due to asset sales and impairment charges. • Gross lo
Slide 4: Q4-22 & FY-22 Summary Results
Q4-22 & FY-22 Summary Results 4 UIHC’s results were devastated by CAT losses and prior year development in personal lines. $ in millions FY 2022 FY 2021 Change % Chg Gross Premiums Earned 1,223.2$ 1,408.4$ (185.2)$ -13.1% Ceded Premiums Earned (760.6) (818.7) 58.1 -7.1% Net Premiums Earned 462.6 589
Slide 5: Q4-22 Results by Line of Business
Q4-22 Results by Line of Business 5 Commercial lines remained profitable despite the impact of reserve strengthening. Commercial lines (CL) FY22 pre-tax earnings would have been ~$79.2m excluding Hurricane Ian. Additional CL CAT losses were incurred in Q422 due to the 10% co-participation in ACIC’s
Slide 6: Commercial Segment 2020-2022
Commercial Segment 2020-2022 6 We expect hard market conditions to accelerate earnings growth adjusted for CAT risk $ in millions 2020 2021 2022 Total Gross Premiums Earned 389.8$ 410.3$ 464.2$ 1,264.3$ Ceded Premiums Earned (194.5) (237.1) (245.3) (676.9) Net Premiums Earned 195.3 173.2 218.9 587.4
Slide 7: Impact of De-consolidating UPC
Impact of De-consolidating UPC 7 UIHC’s pro-forma financials statements show a much different picture excluding UPC ¹ Pro-forma Balance Sheet at 12.31.22 Pro-forma Income Statement YTD at 12.31.22 ¹ UPC was divested and will be de-consolidated from UIHC’s results effective February 27, 2023. UIHC Le
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights 8 Dec. 31, Dec. 31, Pro-forma ($ in thousands, except per share amounts) 2022 2021 Variance 12.31.22 Selected Balance Sheet Data Cash & investments 715,722$ 964,844$ -25.8% 340,905$ Unpaid loss & LAE reserves, net of reinsurance 314,645$ 87,330$ 260.3% 77,718$ Financial debt
Slide 9: Hurricane Ian: 2022-23 Core CAT Reinsurance Program Impact
Hurricane Ian: 2022-23 Core CAT Reinsurance Program Impact 9 ACIC has $508m of occurrence limit left for Ian and $980m of aggregate limit remaining. $934.8M FHCF 90% of $564.4M xs $370.4M NIL $370.4M $260.4M ACIC RAP Replacement 53.5% of $122.2M xs $260.4M; NIL $382.6M $20M RETENTION: $16.4M UL Laye
Slide 10: Cautionary Statements
Cautionary Statements 10 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
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