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August 22, 2024 Reinsurance
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Investor Presentation August 2024

U.S. Markets via PUBT

INVESTOR PRESENTATION

AUGUST 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, including amendments. 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.

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 $656 million of premium in-force as of June 30, 2024.

Key Metrics

Nasdaq Ticker:

ACIC

Stock Price (8/7/2024):

$11.07 per share

Market Cap:

$533 M

*Revenue:

$271 M

*Net Income from

$86 M

Continuing Operations:

Kroll Credit Rating:

BB+

Headquarters:

St. Petersburg, FL

*Employees:

65

*Annualized based on half year 2024 results; as of June 30, 2024 Please see full year guidance on slide 21.

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 avg. >50% YOY, positioning ACIC for future profitable growth.

¹ GAAP results for AmCoastal only

American Coastal Insurance Corporation

Strategic Transformation

Divest in 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; acceleration of personal lines run-off.

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.

American Coastal Insurance Corporation

Our P&C Carriers

Specialty

CommercialSpecialty

PropertyHomeowners

$670 M 2023

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.

American Coastal Insurance Corporation

Partnership Overview

F

U N C T I O N S

AmCoastal (Carrier)

  • Accounting and actuarial
  • Product design and filings
  • Underwriting strategy
  • Direction and pricing targets
  • Reinsurance design and execution
  • Risk management and risk tolerance
  • Claims authority for all large claims (over $500k)
  • Claims resulting in litigation or extra-contractual costs
  • Regulatory compliance and legal services
  • Rating agency reviews and interactions
  • ACIC Board of Directors and executive officer oversight

AmRisc (MGA)

  • Distribution and production from agents
    • Retail (32%); Wholesale (68%)
  • Application of AmCoastal underwriting guidelines, rates and rules
    • with binding authority
  • Claims
    • Sub-contractedfield adjusters and TPA services
    • Claims authority (up to pre-determined authority levels)
    • Management of claims activities; monthly reporting
    • Refers above-authority claims to AmCoastal's claims team
  • Portfolio management, including:
    • Catastrophe modeling and PML / AAL monitoring
    • Optimization of risk and retumetrics

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 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.

American Coastal Insurance Corporation

Underwriting Strategy

$ 13.4 M

$ 165 K

Average insured value

Average annual premium

per policy

per policy

Focus on habitational commercial

residential property in Florida.

Underwriting profitability is job #1

Maintain low net

retention of

catastrophe risk

vs. expected

annual earnings

Cover physical damage to the condo building (no contents, flood, or liability)

Target risk is

Florida low-rise,

garden-style

condo buildings

Aiming to achieve

predictable

risk and profitability

of each potential policy.

Exclusive

distribution with

AmRisc in the

Florida admitted

market

Exposure

managed via 3rd party catastrophe modeling software

Flexible,

judgement-

based pricing for

most risks

Long-term

reinsurance relationships supporting risk transfer strategy

American Coastal Insurance Corporation

Named Windstorm Protection

Core CAT

Reinsurance

Catastrophe reinsurance 1st event coverage up to

$1.3 billion

from named or numbered windstorms

First event retention limited to:

$20.5 million

Our core catastrophe reinsurance program provides protection against hurricanes and tropical storms, named or numbered by the National Hurricane Center, as part of our catastrophe management strategy, which is intended to provide our stockholders an acceptable retuon the risks assumed in our property business, and to reduce variability of earnings, while providing protection to our policyholders.

Second and third event retention limited to:

$13.0 million

We have long-term relationships with a diversified panel of highly rated reinsurers and fully collateralized reinsurance providers that help ensure continuity of our risk transfer strategy over time.

Effective

Jun 1, 2024 - May 31, 2025

Attachments

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Disclaimer

American Coastal Insurance Corporation published this content on 22 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on August 22, 2024 at 15:47:01 UTC.

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