American Coastal Insurance : Investor Day Presentation December 2024
ACIC
2024 INVESTOR DAY
DECEMBER 4, 2024
www.amcoastal.com
American Coastal Insurance Corporation
Forward-
Looking
Statements
Statements made in this presentation that are not historical facts are "forward-looking statements". The Company believes these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions, or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those expressed in, or implied by, the forward-looking statements. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward- looking statements do not relate strictly to historical or current facts and may be identified by their use of words such as "may," "will," "expect," "endeavor," "project," "believe," "plan," "anticipate," "intend," "could," "would," "estimate" or "continue" or the negative variations thereof or comparable terminology. Factors that could cause actual results to differ materially may be found in the Company's filings with the U.S. Securities and Exchange Commission, in the "Risk Factors" section in the Company's most recent Annual Report on Form
10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements.
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American Coastal Insurance Corporation
Management
Dan Peed
Brad Martz
Chairman & CEO
President & Former CFO
Chris Griffith
COO & CIO
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American Coastal Insurance Corporation
Management
Brooke Adler
General Counsel
Svetlana Castle
Andy Gray
CFO
Chief Compliance & Risk Officer
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American Coastal Insurance Corporation
Corporate
Overview
American Coastal Insurance Corporation® (ACIC) is a holding company that underwrites commercial residential property insurance policies in
Florida through its wholly owned subsidiary, American Coastal Insurance
Company (AmCoastal), founded in 2007.
AmCoastal has the #1 market share in commercial residential property insurance (commercial lines) in Florida with roughly 4,000 policies and $646 million of premium in-force as of September 30, 2024.
Key Metrics
Nasdaq Ticker:
ACIC
Stock Price (12/3/2024):
$13.27 per share
Market Cap:
$640 M
*Net Premiums Earned:
$270M to $280M
*Net Income from
$75M to $80M
Continuing Operations:
Kroll Credit Rating:
BB+
Headquarters:
St. Petersburg, FL
Employees:
65
*Guidance for FY 2024. Please see full year guidance on slide 25.
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American Coastal Insurance Corporation
Our P&C Carriers
Specialty
CommercialSpecialty
PropertyHomeowners
$636 M 2023
Continuing Operations
Direct Premiums Written
Our commercial lines business,
underwritten by AmCoastal, continues to demonstrate its resilience by posting an underwriting profit for the 17th
consecutive year since its formation in
2007.
Executed definitive agreements to divest
of IIC; discontinued operations.
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American Coastal Insurance Corporation
Strategic Transformation
Divest of IIC
Executed definitive agreements to divest Interboro Insurance Company; anticipate closing during the first quarter of 2025.
Rebrand to American Coastal
The Company began trading on NASDAQ under
ticker 'ACIC' on August 15, 2023.
Disposal of United P&C Ins. Co. (UPC)
UPC ordered into receivership in early 2023.
Personal lines business placed into run-off
Underwriting Initiatives
Increased rates, began non-renewing risks, and reduced exposure by selling large portions of its personal lines business in seven states to a third- party carrier.
Dan Peed appointed as Chairman & CEO
Seeking to de-risk the Company's struggling personal lines business and allocate more resources towards our consistently profitable commercial lines segment.
Our commercial lines
business underwritten
by AmCoastal has
produced exceptional results over the long- term, which we expect to continue.
It is our primary focus
going forward.
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American Coastal Insurance Corporation
Investment Thesis
Deep Underwriting Expertise
Sophisticated multi-model underwriting & best-in-industry data capture capabilities.
Above-average Risk Characteristics
Focusing on low-rise and garden-style condominium buildings.
Consistent Profitability ¹
Pre-tax income (10-year average) of $52.7 M with an attritional loss & LAE ratio of 8.5%.
Recently Completed Strategic Transformation
A compelling investment opportunity in a unique niche market.
AmRisc - an Exclusive Partnership
The leading commercial property managing general agent (MGA) in the U.S.
Strong Reinsurance Support
Low retention minimizes potential volatility from potential hurricane losses.
Favorable Market Conditions
Compounding rate increases YOY, positioning ACIC for future profitable growth.
¹ GAAP results for AmCoastal only
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American Coastal Insurance Corporation
Profitability Metrics
Reset in 2023
GAAP Pre-tax Income*
($ in thousands)
PROFTABILITY HAS
SHIFTED HIGHER IN THE
RECENT HARD MARKET
PROFITABLE EVERY
YEAR SINCE INCEPTION
Inclusive of all major hurricane losses
*Reflects GAAP pre-tax income from American Costal Insurance Company
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A Subsidiary of Truist Insurance Holdings 6th largest insurance Broker in the U.S.
7th largest insurance broker in the world
American Coastal Insurance Corporation
Exclusive Partnership
Exclusive MGA Agreement for the Admitted Commercial Residential Condominium Association Market in Florida
Distribution, underwriting, policy issuance, inspection, claims services and portfolio management
American Coastal provides underwriting strategy, direction and pricing targets to AmRisc.
AmRisc was founded by ACIC
Chairman & CEO, Dan Peed, in 2000.
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Disclaimer
American Coastal Insurance Corporation published this content on December 04, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on December 04, 2024 at 17:46:04.295.