American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — Q4 2024 Earnings Presentation
16 slides from American Coastal Insurance's earnings presentation, Feb 27, 2025
Slide 1: Earnings Presentation 4th Quarter 2024
Earnings Presentation 4th Quarter 2024 February 27, 2025
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 December 31, 2024 holding company for two P&C carriers: American Coastal Total Assets: $1.22 billion Insurance Company (AmCoastal) a
Slide 3: Executive Summary
Executive Summary • Q4-24 Results • Non-GAAP Core Income of $6.0m ($0.12) decreased $12.0m (-66.7%) from $18.0m ($0.39) y/y on higher incurred losses resulting from Hurricane Milton and higher policy acquisition costs due to lower ceding commission income, offset by lower ceded earned premiums resul
Slide 4: 4Q-24 Financial Scorecard
4Q-24 Financial Scorecard Results remain in line with Raymond James’ estimates for the quarter. Core Earnings per Share (CEPS) Combined Ratio (CR) 4Q-24 = $0.12 4Q-24 = 91.9% vs. vs. Analyst’s Est. = $0.16 Analyst’s Est. = 88.9% Book Value per Share (BVPS) Core Return on Equity (CROE) 4Q-24 = $4.89
Slide 5: 4Q-24 Summary of Key Results
4Q-24 Summary of Key Results A profitable Q4 and our FY24 combined ratio ended near our 65% target, despite the impact of Hurricane Milton 5
Slide 6: 4Q-24 Operating Overview
4Q-24 Operating Overview Despite a full catastrophe retention from Hurricane Milton, the Company remained profitable in Q4 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
Slide 7: Balance Sheet Highlights
Balance Sheet Highlights Strong underwriting results have improved our financial strength and allowed us to pay a $0.50 special dividend, despite an active hurricane season. 7
Slide 8: 2025 Full Year Guidance
2025 Full Year Guidance Our 2025 guidance remains unchanged from our initial December 4, 2024, estimate. 8
Slide 9: Investment Portfolio Overview
Investment Portfolio Overview • The Company continues to add to its investment positions • The Company continues to hold high quality fixed in anticipation of future cash yields decreasing. income investments to mitigate market risk. 9
Slide 10: Average Account Rate Trends & Wind Deductible
Average Account Rate Trends & Wind Deductible While rates trend lower, consistent with reinsurance trends, deductibles and terms remain largely unchanged. 10
Slide 11: Commercial Property Valuation Trends
Commercial Property Valuation Trends Renewed valuations are holding steady in the low single digits vs. expiring. 11
Slide 12: 12/21/2024 Armor Re II CAT Bond: Structure
12/21/2024 Armor Re II CAT Bond: Structure New top layer has a “drop-down” feature that can provide 2nd & 3rd event protection. 12
Slide 13: 1/1/25 AOP: Cat Renewal Structure & Highlights
1/1/25 AOP: Cat Renewal Structure & Highlights 13
Slide 14: 1/1/25 Cat Agg: Structure & Highlights
1/1/25 Cat Agg: Structure & Highlights 14
Slide 15: 2/1/25 Auto Fac: Structure & Highlights
2/1/25 Auto Fac: Structure & Highlights 15
Slide 16: Cautionary Statements
Cautionary Statements This presentation and the accompanying remarks contain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward looking statements include expectations regarding our diversification, growth opportunities, retent
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