AMERICAN COASTAL INSURANCE (ACIC) 6 Nov 242024 Q3 Earnings call transcript

Greetings, and welcome to American Coastal's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Karin Daly, Vice President, the Equity Group and American Coastal's IR representative. Please go ahead.

Thank you, Barak, and good afternoon, everyone. American Coastal Insurance Corporation has also made this broadcast available on its website at www.amcoastal.com. available XX be call. following will replay for days approximately the A

website. you the Investors in company's of find section earnings the Additionally, copies presentation latest can release and of the

Board Speaking and Peed; today Bennett and Svetlana Martz; Financial Bradford Chairman will of President, Chief Officer, R. be Executive Daniel Officer, Castle. Chief the

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may However, estimates, prove forward-looking could the in the the found arise, filings subsequent risks XX-K assumptions in if expressed be the or by company's quarterly results forward-looking most inaccurate of or statements. Commission plans Exchange Form Factors on materially statements U.S. differ and Risk actual annual Form the other with those implied underlying Factors the section and reports materially recent their that from or could in to if or results on actual uncertainties cause Securities report differ XX-Q.

it's revise turn are Dan, forward-looking only Mr. you no speak they on obligation which company required and update Peed. law, except the the as to call or date over statements as by that, undertakes to of statements. With applicable Forward-looking my Daniel made, pleasure the any to may begin.

Karin. you, Thank

its volunteered. In Then off Hurricane Debby Milton Florida, Helene. and were including to time the restoration American to efforts hurricane donations Hurricane that staff. to preparation season relief to continued Atlantic in and have proud Central our emergence after that pleased quarter paid to through active continuity activated The starting Milton, of who quarter impacting seamlessly, of saw supported predicted continue, claims. policyholders, meaning I'm and no with XXXX there were for Floridians, operations American for and landfall Coastal and third Hurricanes is cleanup the of employees the respond AmCoastal immediately business and Coastal efforts made was millions ended, just prepared Significant report disruptions we monetary plan, third

estimate in previously after-tax steady from As and retained $XX.X we after-tax enables profit quarter. losses the reinsurance third stems our in This ratio, a in losses Debby and along underwriting favorably the of and fourth retain million the share announced, quarter. Furthermore, against reduction Helene from pricing approximately total in the we million third the Milton we quota and that This exceptional of Coastal stemming in to significantly the compares with underlying $X.X from peers strong American XX%. $XX.X favorable million as as an has XX% revenue in increased combined quarter. well will

in underlying expect the strong non-cat quarters. continue rate margin as run We new future combined growth as the to by ratio as the revenue well measured

Finally, successfully I'm condo Coastal announce the our first-ever its to in policies The takeout launch participated pleased book that a program. signaled new to Citizens. of apartment added from American takeout and

to excited pleased are for future Coastal. learn here you American more and are We that about the

to turn call of Martz, will I that, over President With ACIC. the Brad

a forward-looking I'll highlight over Dan of Today, that our X CFO. Pages the review recent to the turn Then million mentioned August XX Hurricane loss the color provide hello. X and losses additional Florida received earnings also only it and windstorms about details wind guidance I'll Dan, Thanks, our on our was and Debby To of storm of presentation named quarter. on XXXX. hurricane remainder for additional date, made Category minimal third of tax landfall and estimated impact in year. with with in a $XXX,XXX the damage. so $X X a far after net this claims gross we've in

received date, risk to flood in To very portfolio. a a but Helene landfall Bend to our Florida, of for covered made September, about Category in of hurricane $X.X on net Coast extensive region, wind was the after Hurricane XX loss Big caused much the our estimated storm loss in also translates flood resulting damage not is Helene million damage by stronger policies. peril West X a but Helene claims tax. $X which gross and at we've million, our minor

our Debby, reinsurance catastrophe not Like of Helene for within excess was considered retention an loss event and our core program.

hand, our October in other X wind portfolio the in to given Sarasota on storm Milton, Category its damage caused significant County. Hurricane was that landfall a

XXX received ultimate loss total in we've have today, XXX of $XXX about to million. and gross estimated expect million between and claims the As be and $XXX

below that million core bottom catastrophe range to net of income reinsurance be towards quarter. in Milton a but program making ceded retention, excess appears loss year. it be result our fourth will in our $XX.X event the even and reinsurance guidance, of loss million and Net $XX.X may Milton this our to benefit, will tax trending the first exceed the certainly

XXXX ceded of tower the May reinstate limit premiums we earned between by future XXXX place Lastly, nearly will and reinsurance additional company means any October for full used Milton. events. of our This $XX in roughly incur the to also that million have

the potential of So such retention tax is the the benefit hurricanes previously drop X million guidance to $XX.X on provided named our updates results if the subsequent of Milton as and additional windstorms year, ACIC of quarter to they the Florida fourth impact impact very Rafael. our for quarter reinsurance of occur. Page actual would And any net for earnings net next Hurricane XXXX. well well events the third as two should include this protected against presentation income as

fourth impacted full quarter considering not hurricane activity a level profitable of Coastal premium in increased by prior periods While XXXX. post is for the year, I'm to impacting losses pleased incur the Florida, costs or comparison to in obviously that hurricane expect fact the remain say American strong result any reinstatement and we the the did to

like over Lana. to it I'd that, now With to turn

performance. for earnings press and investor Thank you, XX-Q company's to a and update, everyone our presentations encourage release, Brad, and financial Form provide hello. regarding information the I'll but review more

the which of of increase quarter American a million. reflected gross X, presentation, $XX.X had strong the effective XX% our lower $XX.X million of Coastal ceded Page year-over-year June a an earnings of was As to with premiums XX% a earned XXXX. quota income catastrophe as result is net X down $XX.X share from step of income from Core on million,

Page X million. the of presentation shows to $XXX.X premium gross that grew million $X.X earned

Our was same position our ratio strong. XX% combined and feel decrease our target the is XX.X% We in X is points last reserve XX.X%, which from year. below of period a

per X in $X.X because ceding in of acquisition expenses the contributed policy also income As $X.X a increased our expenses primarily million. was driven due $XXX.X and the presentation, line result increasing is share in increase losses. I'll ratios. increase, to commission the to highlights. executed initiative or mentioned before with These to by is quota decrease a the The earlier. General retain of meet Cash and XX.X% closing tax than increased shown on to value The million by turn and XX.X% catastrophe $XXX.X this from results. an million, increased year-over-year. liquidity our company's balance increase to offset X Page by operating strong Brad XX.X% in a strong company earnings High equity driven to grew of step-down of were of leverage it This direct year-end. a more position administrative XX.X% expectations ceded costs from our This XX.X%. or in to in were increase liquidity $XX.X position. remarks. costs is decrease share resulted strong earned. is underwriting Stockholders' obligations Book policyholder the recent million result significant over previously Martz stronger to more sheet in capitalization $X.X for million now $X.XX, improvement premiums investments profit. Page reflecting our and million, mentioned underwriting shows

That in today, a.m. more your completes happy are we information interest appreciate forward you ACIC We take at with questions. look our December sharing Day upcoming our Lana. prepared remarks on any now XX:XX virtual and and to Thanks, at Investor to X.

like back remarks. for turn the [Operator Instructions] this Dan to I'd be at to no There to appears call Peed time. closing questions

in American you Coastal. and Hey, thanks. to your time for of And your all thanks interest

and our profitable With to excited future our forward are for thanks that, looking We opportunities again. growth. continuing

This concludes today's conference.

this may you your disconnect participation. at time. lines Thank your You for