Earnings Presentation Q1 2025

Earnings Presentation

1st Quarter 2025

May 8th, 2025

Company Overview

ACIC as of March 31, 2025
Total Assets:	$1.16 billion
Total Equity:	$260.9 million
Annualized Revenue:	$288.8 million
Employees:	63
Headquarters:	St. Petersburg, FL
Credit Rating:	BB+ (Kroll)

American Coastal Insurance Corp. (Nasdaq: ACIC) is the insurance holding company for American Coastal Insurance Company (AmCoastal), a Florida domiciled P&C carrier, and Skyway Underwriters (SKU), a managing general agency, along with other operating affiliates.

AmCoastal is a balance sheet underwriter and has the #1 market share of commercial residential property insurance in Florida with roughly 4,239 policies and $660.5 million of premium in-force. AmCoastal has earned an underwriting profit every year since its inception in 2007.

SKU is a fee-based MGA focused on producing and underwriting commercial property insurance without taking any underwriting risk.

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Executive Summary

• 1Q-25 Results

  • Non-GAAP Core Income of $20.7m ($0.42) decreased $3.7m (-15.3%) from $m ($0.50) y/y on higher policy acquisition costs (PAC) due to lower ceding commission income, offset by lower ceded earned premiums resulting from the step down of the 40% gross CAT quota share effective 6.1.2023 to 20% effective 6.1.2024.

  • Net premiums earned grew $5.7m (+9.0%) to $68.3m y/y.

  • Our combined ratio of 65.0% increased from 53.2% last year due to higher PAC and our Non-GAAP underlying combined ratio (which excludes current catastrophe losses and PY development) was 68.2% which increased from 52.9% in the prior year also due to a higher expense ratio but was in-line with our target of 65.0%.

  • We experienced no catastrophe losses in the quarter and had $2.2m of favorable prior year reserve development.

  • Stockholders' equity attributable to ACIC, increased $25.2 million from December 31, 2024, to $260.9m or $5.40 per share and $5.67 per share excluding unrealized losses in accumulated other comprehensive income. Tangible book value per share increased to $4.06 per share.

• Other Highlights

  • The company completed the sale of Interboro Insurance Company on April 1, 2025, generating over $26 million of cash to the holding company.

  • The commercial property insurance market in Florida continued to soften during the first quarter of 2025 with average premium in-force decreasing -3.1%, but account retention remained strong at 88.4% leading to growth in policies, premiums, and total insured values compared to December 31, 2024.

  • Significant progress was made on the Company's Core Catastrophe reinsurance program renewal. We are seeing strong demand to support our risk transfer needs and expect to announce more details on or about June 1, 2025.

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1Q-25 Financial Scorecard

Core Earnings per Share (CEPS)

1Q-25 = $0.42

vs.

Analyst's Est. = $0.45

Book Value per Share (BVPS)

Combined Ratio (CR)

1Q-25 = 65.0%

vs.

Analyst's Est. = 64.1%

Core Retuon Equity (CROE)

1Q-25 = $5.40

vs.

Analyst's Est. = $5.34

1Q-25 = 35.1%

vs.

Analyst's Est. = 37.3%

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1Q-25 Summary of Key Results

$ in thousands, except per share amountsQ1-25Q1-24Change

Net income (loss)

per diluted share (EPS)

$ 21,348 $

$ 0.43 $

23,599

0.48

-9.5%

Reconciliation to core income (loss), net of tax:

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Disclaimer

American Coastal Insurance Corporation published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 22:06 UTC.