American Coastal Insurance Corporation · NASDAQ:ACIC
American Coastal Insurance — United Insurance Holdings — Q1 2022 Earnings Presentation
14 slides from American Coastal Insurance's earnings presentation, May 9, 2022
Slide 1: United Insurance Holdings Corporation Investor Presentation
United Insurance Holdings Corporation (Nasdaq: UIHC) Investor Presentation May 9th, 2022
Slide 2: Company Overview
Company Overview 2 UPC Insurance is a specialty underwriter of catastrophe exposed property insurance in the U.S. United Insurance Holding Corp. (NASDAQ: UIHC) was founded in 1999 and is the insurance holding company for 5 P&C carriers and operating affiliates operating under the brand UPC Insurance
Slide 3: Executive Summary
3 • Q1-2022 Results • Core loss of -$29.3m (-$0.68 per share) compared unfavorably to -$19.4m (-$0.45 per share) last year due to higher net retained losses from 10 new catastrophe events and higher loss severity on attritional claims. • Net premiums were driven lower by the renewal rights sales (NE
Slide 4: Q1-2022 Results
Q1-2022 Results 4 Direct results hurt by reinsurance spend intended to provide risk-based capital support Direct results exclude ceded premiums, ceded losses and ceding commissions to show the true underlying results before risk-transfer. Q1-22 Q1-21 Change Core income (loss) (29,341)$ (19,370)$ 51.
Slide 5: Results by Line of Business
Results by Line of Business 5 Commercial continues to perform well but de-risking efforts hurt Personal Lines. $ in millions CL PL Other Total CL PL Other Total Gross Premiums Earned 107.5$ 211.7$ -$ 319.2$ 98.2$ 258.4$ -$ 356.7$ Ceded Premiums Earned (62.0) (156.3) - (218.3) (56.4) (154.3) - (210.7
Slide 6: Personal Lines Renewal Rate Change is Significant
6 Personal Lines Renewal Rate Change is Significant We continued to see improved rate adequacy in Q1, but it takes time to earn through. LA TX All Personal Lines Metric 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 Renewing Policies 79,241 99,964 93,364 71,661 64,016 Renewal Acceptance 84.8% 82.7% 80.8% 8
Slide 7: Premium Relative to Exposure Improving
Premium Relative to Exposure Improving 7 Rate changes are expected to hold premiums relatively flat, but TIV expected to decline further.
Slide 8: Summary of Business In-force
Summary of Business In-force 8 Q1-22 Premium Mix ¹ Reduction in personal lines and growth in commercial continues to move us toward a 50/50 balance. ¹ Calculated using adjusted results 12.31.21 3.31.22 Change 12.31.21 3.31.22 Change 12.31.21 3.31.22 Change 1 FL 198,838 185,032 -6.9% 437,211$ 428,653
Slide 9: Litigation Update
9 Litigation Update Notice of intent (NOI) to litigate is trending up but not all are resulting in new suits YTD NOI’s = 2,000 Settled = 175 (9%) New Suit = 812 (41%) (50% still pending)
Slide 10: Underwriting Priorities
Underwriting Priorities 10 Extreme focus on repositioning our risk portfolio to achieve an underwriting profit. ➢ Mosaic: AI, Big Data and Predictive Analytics – next generation risk selection and profitability tool: • Update portfolio last three years to 1/1/22 rates – 105% combined ratio projected
Slide 11: Mosaic Segmentation Example – Florida Personal Lines
Mosaic Segmentation Example – Florida Personal Lines 11 Our big data + predictive analytics has identified risks with a high propensity to loss FSIC Baseline Exposure Management Rec Letter Inspection No Action A B C Actual EP 199,893,618 29,608,778 8,111,932 16,596,225 145,576,683 69,053,508 34,112,
Slide 12: 2022 Projected Core CAT Program
2022 Projected Core CAT Program 12 Moving from cascading aggregate to a more traditional occurrence structure at 6.1.2022 Combined FHCF 90% of $1.47B xs $632M Nil Reinstatement UPC, FSIC & ACIC $735M $865M Layer 1 $20M xs $20M – Prepaid Placed 77% Layer 2 $65M xs $40M - Prepaid Placed 77% Layer 3 $1
Slide 13: Cautionary Statements
Cautionary Statements 13 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
Slide 14: UPC Insurance
UPCZS INSURANCE
United Insurance Holdings — Q1 2022 Earnings Presentation on 6ix