Investor Presentation August 2024
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
Corporate
Overview
American Coastal Insurance Corporation® (ACIC) is a holding company that underwrites commercial residential property insurance policies in
AmCoastal has the #1 market share in commercial residential property insurance (commercial lines) in
Key Metrics
Nasdaq Ticker: |
ACIC |
Stock Price (8/7/2024): |
|
Market Cap: |
|
*Revenue: |
|
*Net Income from |
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Continuing Operations: |
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Kroll Credit Rating: |
BB+ |
Headquarters: |
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*Employees: |
65 |
*Annualized based on half year 2024 results; as of
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
Recently Completed Strategic Transformation
A compelling investment opportunity in a unique niche market.
The leading commercial property managing general agent (MGA) in the
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
Strategic Transformation
Divest in IIC
Executed definitive agreements to divest
Rebrand to American Coastal
The Company began trading on NASDAQ under ticker 'ACIC' on
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.
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.
Our P&C Carriers
Specialty
CommercialSpecialty
PropertyHomeowners
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.
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
- 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
7th largest insurance broker in the world
Exclusive MGA Agreement for the Admitted
Commercial Residential Market in
Distribution, underwriting, policy issuance, inspection, claims services and portfolio management
American Coastal provides underwriting strategy, direction and pricing targets to
Chairman & CEO,
Underwriting Strategy
|
|
Average insured value |
Average annual premium |
per policy |
per policy |
Focus on habitational commercial
residential property in
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
garden-style
condo buildings
Aiming to achieve
predictable
risk and profitability
of each potential policy.
Exclusive
distribution with
market
Exposure
managed via 3rd party catastrophe modeling software
Flexible,
judgement-
based pricing for
most risks
Long-term
reinsurance relationships supporting risk transfer strategy
|
Named Windstorm Protection |
Core CAT |
|
Reinsurance |
|
Catastrophe reinsurance 1st event coverage up to
from named or numbered windstorms
First event retention limited to:
Our core catastrophe reinsurance program provides protection against hurricanes and tropical storms, named or numbered by the
Second and third event retention limited to:
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
Attachments
Disclaimer
Raleigh man charged with making false statements on auto insurance claim to fraudulently receive $10K
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