American Coastal Insurance (ACIC) Investor Day 2024 summary

Strategic transformation and business focus

• Completed exit from personal lines and divestiture of Interboro Insurance Company, with closing expected in Q1 2025, to focus exclusively on profitable commercial specialty property in Florida.

• Rebranded and began trading as ACIC on NASDAQ in August 2023, emphasizing underwriting profitability and commercial residential property insurance.

• Maintains a mature, best-in-class portfolio with above-average risk characteristics and consistent profitability, supported by a long-term exclusive partnership with AmRisc, extended through 2029.

• Commercial lines underwritten by AmCoastal have posted underwriting profits for 17 consecutive years since 2007.

• Operates with strong reinsurance support and favorable market conditions, expecting a hard market environment for 3–5 years.

Underwriting, risk management, and market conditions

• Focuses on low-rise, inland and garden-style condominiums and apartments, avoiding hypercoastal risks to reduce exposure and PML, with average insured value per policy at $14.3 million.

• Utilizes sophisticated modeling tools and a technical pricing approach, with flexibility for large commercial risks in Florida.

• Employs extensive reinsurance and risk transfer programs, targeting catastrophe losses within an average quarter's pre-tax earnings, with a $1.3 billion windstorm protection limit and $20.5 million first event retention.

• Additional reinsurance covers up to $100 million for secondary perils and $60 million for non-catastrophe risks, supporting capital stability.

• Achieved 87.4% premium retention in 2023, with account retention near 85% as of September 2024.

New business developments and growth opportunities

• Launched a new apartment program in October 2024, targeting garden-style and mid-rise buildings with TIV over $5 million, leveraging proprietary Mosaic modeling.

• Skyway Underwriters, a new MGA/MGU, will service the apartment program and enable expansion into other lines and service fee income opportunities.

• Technology investments are complete, with a proprietary Compass platform providing cost and operational advantages.

• Sees significant growth potential in both condos and apartments, aiming for 4,500 condo policies in force by end of 2025 and $100–$300 million premium opportunity in apartments over 2–3 years.

• Resumed underwriting new commercial business after years of capital constraints, supported by improved capitalization.