American Coastal Insurance (ACIC) Sidoti's Year End Virtual Investor Conference summary

Business overview and strategy

• Focuses on commercial residential property insurance in Florida, holding the top market share among condominium associations.

• Transitioned from personal lines to a pure commercial model, divesting all personal lines by early 2023.

• Targets low-rise, inland properties with insured values between $5M–$60M, avoiding high-value oceanfront risks.

• Maintains consistent underwriting profits, even after major hurricane events.

• Leverages a capital-light model with a low PE multiple and strong reinsurance partnerships.

Underwriting and risk management

• Exclusive five-year underwriting partnership with AmRisc, recently extended through 2029.

• Sets underwriting guidelines and reviews risk portfolio monthly, focusing on property-only risks with no liability exposure.

• Enjoys pricing flexibility as an admitted carrier for properties above $5M, accessing state catastrophe funds.

• Maintains a combined ratio target of 65–75%, adjusting for market cycles.

• Regularly updates insured values to keep pace with inflation and replacement costs.

Reinsurance and financial protection

• Purchases robust catastrophe reinsurance, with $30M retention on first event and $1.3B total coverage.

• Added aggregate CAT reinsurance in 2025, covering all perils above $40M with a $20M cap per occurrence.

• Maintains AOP (all other perils) coverage up to $100M, with $10M retention, and excess per risk coverage up to $60M.

• Focuses on reducing earnings volatility and protecting capital, especially after recent strategic transformation.

• Willing to take more risk as capital base strengthens, co-participating in reinsurance layers for higher returns.