American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — Q2 2024 Earnings Presentation
14 slides from American Coastal Insurance's earnings presentation, Aug 7, 2024
Slide 1: Earnings Presentation 2nd Quarter 2024
Earnings Presentation 2nd Quarter 2024 August 7th, 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 June 30, 2024 holding company for two P&C carriers: American Coastal Total Assets: $1.31 billion Insurance Company (AmCoastal) and I
Slide 3: Executive Summary
Executive Summary • Q2-24 Results • Non-GAAP Core Income of $19.6m ($0.40) decreased -$7.5m (-27.6%) from $27.1m ($0.62) y/y on higher ceded earned premiums resulting from the 40% gross CAT quota share effective 6.1.2023. • Gross premiums earned grew $5.6m (+3.7%) to $155.5m y/y. • Our combined rati
Slide 4: 2Q-24 Financial Scorecard
2Q-24 Financial Scorecard Key results all compare favorably to Raymond James’ estimates for the current period. Core Earnings per Share (CEPS) Combined Ratio (CR) 2Q-24 = $0.40 2Q-24 = 64.9% vs. vs. Analyst’s Est. = $0.30 Analyst’s Est. = 74.3% Book Value per Share (BVPS) Core Return on Equity (CROE
Slide 5: 2Q-24 Summary of Key Results
2Q-24 Summary of Key Results Combined ratio increased 1.8 points and core income declined -$7.5m ($0.22) due to reinsurance costs. $ in thousands, except per share amounts Q2-24 Q2-23 Change 2024 2023 Change Net income (loss) $ 19,054 $ 17,779 7.2% $ 42,653 $ 285,059 n/m per diluted share (EPS) $ 0.
Slide 6: 2Q-24 Operating Overview
2Q-24 Operating Overview Earnings before income tax improved +11.2% despite the significant change in ceded premiums. $ in millions Q2-24 Q2-23 Change % Chg Gross Premiums Earned $ 155.5 $ 149.8 5.6 3.7% Ceded Premiums Earned (92.1) (71.8) (20.2) 28.1% Net Premiums Earned 63.4 78.0 (14.6) -18.7% Inv
Slide 7: 2024 Full Year & 2H-24 Guidance
2024 Full Year & 2H-24 Guidance Our new reinsurance cost structure effective 6.1.24 set the stage for earning & total revenue growth y/y. Estimated range of Net Income Estimated range of Net from Continuing Operations ¹ Premiums Earned Low High Low High FY-24 E $ 85.0 - $ 95.0 FY-24 E $ 285.0 - $ 30
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights Jun 30, Dec. 31, YTD ($ in thousands, except per share amounts) 2024 2023 % Change Selected Balance Sheet Data Cash & investments $ 572,580 $ 311,874 83.6% Accumulated other comprehensive income (loss) $ (19,149) $ (17,137) 11.7% Unpaid loss & LAE reserves $ 211,433 $ 347,73
Slide 9: Investment Portfolio Overview
Investment Portfolio Overview • Strong cash generation has propelled successive • Focus on a resilient and high-quality portfolio quarterly growth in investments and liquid assets. considerate of current market conditions and risks. 9
Slide 10: Underwriting Environment
Underwriting Environment Competition remains limited but is getting more aggressive and driving softer market conditions. • TIV down -1.7% and policy count down -5.8% YTD, but 100-YR PML up +3.5% due to model change. • Premiums in-force are up 2.0% to $656m with average premium up +8.3% YTD, but ave
Slide 11: AmCoastal Premium and TIV Trends
AmCoastal Premium and TIV Trends Premiums in-force are up 6.3% but exposures are down -10.4% vs. Jun-23 Commercial Lines Premium & Total Insured Value (TIV) In-force Risk/Return profile remains solid 11
Slide 12: Commercial Property Valuation Trends
Commercial Property Valuation Trends Valuation changes are slowing down as inflationary pressure moderates. 12
Slide 13: 2024-25 CAT Reinsurance Program - AmCoastal
2024-25 CAT Reinsurance Program - AmCoastal Program Illustration Program Highlights $782m 100-YR PML (50/50 Blend AIR & RMS) 13
Slide 14: 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
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