Earnings Presentation Q3 2024

Company Overview

ACIC is a specialty underwriter of catastrophe exposed property insurance.

¹ IIC 's results are classified as discontinued operations.

2

Executive Summary

• Q3-24Results
• • Non-GAAPCore Income of $26.9m ($0.54) increased $11.4m (+73.6%) from $15.5m ($0.35) y/y on 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 $24.2m (+48.2%)to $74.5m y/y.
  • Our combined ratio of 57.7% was better than our 65.0% target and a decrease of 5.0 points from 62.7% in the same period last year.
  • Current year net catastrophe losses in the quarter were $5.0m before tax (Hurricanes Debby & Helene) and we had $1.4m of favorable prior year reserve development.
  • Stockholders' equity attributable to ACIC, increased to $259.6mor $5.38 per share and $5.63 per share excluding unrealized losses in accumulated other comprehensive income.
• Other Highlights
• • We have received 154 claims from Hurricane Milton and expect about 200 claims in total with an estimated ultimate gross loss between $150 - $200 million and a net loss incurred of $20.5m before income tax during the fourth quarter.
  • Reinstatement premiums are expected to increase ceded premiums earned by approximately $13 million which is amortized over the 8- month period from October 2024 to May 2025. This results in AmCoastal having its full reinsurance tower in place for potential subsequent hurricane events with our net retention now reduced to $10.3 million net of income tax for the next two potential hurricane occurrences.
  • Completed an assumption from Citizens on October 29, 2024, adding 88 new risks with roughly $9.7m of expiring premium.

3

2H-2024 Hurricane Estimates

Despite an active hurricane season, ACIC is expected to remain profitable.

AmCoastal still has over $1.2 billion of catastrophe reinsurance in place for any potential subsequent hurricane events with a lower net retention of $10.3 million after tax (~4% of equity at 9.30.24) per occurrence for 2nd and 3rd event, if incurred.

4

3Q-24 Financial Scorecard

Key results all compare favorably to Raymond James' estimates for the current period.

5

3Q-24 Summary of Key Results

Combined ratio decreased 5.0 points and core income grew $11.4m ($0.19) due to higher net premiums.

6

3Q-24 Operating Overview

Earnings before income tax improved +101.7% driven by our reduced quota share cession rate.

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) y/y.

7

2024 Full Year & 4Q-24 Guidance

We expect to be profitable in the fourth quarter, despite the impact of Hurricane Milton.

• Estimates include net incurred losses of $16.2 million, net of tax impacts, from Hurricane Milton impacting current year earnings and approximately $5 million of additional ceded premiums earned impacting current year net premiums earned, whereas ACIC did not incur any hurricane losses or reinsurance reinstatement premiums in 2023.

8

9

Investment Portfolio Overview

10