American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — 2024 AIFA Conference
23 slides from American Coastal Insurance's conference presentation, Mar 3, 2024
Slide 1: Investor Presentation
INVESTOR PRESENTATION 2024 AIFA CONFERENCE | MARCH 3 – 5, 2024 www.amcoastal.com
Slide 2: Forward-Looking Statements
Statements made in this presentation that are not historical facts are “forward-looking statements”. The Company believes these statements are American Coastal Insurance Corporation based on reasonable estimates, assumptions and plans. However, if the Forward- estimates, assumptions, or plans underl
Slide 3: Corporate Overview
American Coastal Insurance Corporation Corporate Overview Key Metrics Nasdaq Ticker: ACIC Stock Price (2/28/2024): $13.95 per share Market Cap: $638 M *Revenue: $287 M *Net Income from $82 M Continuing Operations: American Coastal Insurance Corporation® (ACIC) is a holding company Kroll Credit Ratin
Slide 4: Investment Thesis
American Coastal Insurance Corporation Recently Completed Strategic Transformation A compelling investment opportunity in a unique Investment Thesis niche market. Deep Underwriting Expertise AmRisc – an Exclusive Partnership Sophisticated multi-model underwriting & The leading commercial property 08
Slide 5: Strategic Transformation
American Coastal Insurance Corporation Strategic Rebrand to American Coastal The Company began trading on NASDAQ under ticker ‘ACIC’ on August 15, 2023. Transformation Disposal of United P&C Ins. Co. (UPC) UPC ordered into receivership in early 2023; acceleration of personal lines run-off. Personal
Slide 6: Our P&C Carriers
American Coastal Insurance Corporation $670 M 2023 Direct Premiums Written Our P&C Carriers Specialty Specialty Our commercial lines business, Commercial Homeowners underwritten by AmCoastal, continues Property to demonstrate its resilience by posting an underwriting profit for the 17th consecutive
Slide 7: Partnership Overview
American Coastal Insurance Corporation Partnership Overview F AmCoastal (Carrier) AmRisc (MGA) › Accounting and actuarial › Distribution and production from agents U › Product design and filings › Retail (32%); Wholesale (68%) N › Underwriting strategy › Application of AmCoastal underwriting guideli
Slide 8: Exclusive Partnership
American Coastal Insurance Corporation Exclusive Partnership Exclusive MGA Agreement for the Admitted Commercial Residential Market in Florida Distribution, underwriting, policy issuance, inspection, claims services and portfolio management American Coastal provides underwriting strategy, 6th larges
Slide 9: Underwriting Strategy
American Coastal Insurance Corporation Exposure Target risk is Underwriting Underwriting managed via 3rd Florida low-rise, profitability is party catastrophe garden-style job #1 modeling Strategy condo buildings software Maintain low net Aiming to achieve Flexible, retention of predictable judgement
Slide 10: Core CAT Reinsurance
American Coastal Insurance Corporation Named Windstorm Protection Core CAT Reinsurance Our core catastrophe reinsurance program provides protection against Catastrophe reinsurance 1st event coverage up to hurricanes and tropical storms, named or numbered by the National Hurricane Center, as part of
Slide 11: AOP CAT Reinsurance
Secondary Perils Protection American Coastal Insurance Corporation AOP CAT Reinsurance $100 million up to All other perils (AOP) catastrophe reinsurance provides protection from catastrophe loss on the first & second events events other than named windstorms such as hailstorms, tornados, and other s
Slide 12: Excess Per Risk Reinsurance
American Coastal Insurance Corporation Non-catastrophe Protection Excess Per Risk Reinsurance Non-catastrophe reinsurance coverage up to: $60 million Our excess per risk reinsurance protection is designed to limit our losses from non-catastrophe perils including, but not limited to, fire, water dama
Slide 13: Long-Term Profitability
American Coastal Insurance Corporation Long-Term Profitability GAAP Pre-tax Income* ($ in thousands) 10-YR AVERAGE = $52.7M PROFITABLE EVERY YEAR SINCE INCEPTION Inclusive of all major hurricane losses *Reflects GAAP pre-tax income from American Costal Insurance Company
Slide 14: Underwriting Discipline
American Coastal Insurance Corporation Underwriting The Florida property insurance market has experienced several hard and soft Discipline market cycles since our inception in 2007. AmCoastal has a good track record of taking appropriate underwriting action to ensure sustainability and profitability
Slide 15: Favorable Underwriting Trends
American Coastal Insurance Corporation Favorable Hard Market Conditions Underwriting Achieving record rate levels relative to total insured values along with higher deductibles. Trends Reward Risk
Slide 16: Retention Trends
American Coastal Insurance Corporation Retention Trends Retention remains steady amid significant price increases which resulted in a dip below our historical averages in 2023. 87.4% Premium Retention in 2023 81.3% Account Retention in 2023
Slide 17: The Numbers
American Coastal Insurance Corporation The Numbers 01. 03. Financial Select Balance Results Sheet Data 02. Profitability
Slide 18: Financial Results
American Coastal Insurance Corporation Financial Three Months Ended Twelve-Months Ended December 31, Results $ in millions, except per share data Gross Premiums Earned 2023 $167.5 2022 $144.8 % Chg. 15.7% 2023 $636.0 2022 $535.4 % Chg. 18.8% Ceded Premiums Earned (111.9) (68.0) 64.6% (354.1) (266.0)
Slide 19: 2023 Profitability
American Coastal Insurance Corporation 2023 Profitability Sole Focus on Commercial Residential Loss Ratio Expense Ratio Combined Ratio 18.4% 35.3% 53.7% 55.5% Personal lines 109.6% Personal lines 165.1% Personal lines 22.3% Consolidated 43.7% Consolidated 66.0% Consolidated
Slide 20: Select Balance Sheet Data
American Coastal Insurance Corporation Select $ in millions Dec. 31, 2023 Dec. 31, 2022 Balance Total Investments Total Cash and Cash Equivalents $197.2 171.8 $224.0 116.9 Sheet Cash & Investments 369.0 340.9 Data Total Assets Unpaid Losses & LAE Reserves 1,060.4 370.2 2,837.5 843.0 Long-term Debt 1
Slide 21: Management
American Coastal Insurance Corporation Management Dan Peed Brad Martz Brooke Adler Chairman & CEO President & Former CFO General Counsel www.amcoastal.com
Slide 22: Management
American Coastal Insurance Corporation Management Chris Griffith Svetlana Castle Andy Gray COO & CIO CFO Chief Compliance & Risk Officer www.amcoastal.com
Slide 23: Contact Us
American Coastal Insurance Corporation Contact Us Investor Relations Alexander Baty VP of Finance & Investor Relations investorrelations@amcoastal.com (727) 425-8076 Transfer Agent Equiniti Trust Company, LLC Ms. Karin Daly 48 Wall Street, Floor 23 The Equity Group Inc. American Coastal Insurance Co