FALSE000140152100014015212025-02-272025-02-27

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 27, 2025

American Coastal Insurance Corporation
(Exact name of registrant as specified in its charter)
Delaware001-3576175-3241967
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
570 Carillon Parkway, Suite 10033716
Saint Petersburg,FL
(Address of principal executive offices)(Zip Code)
(727)633-0851
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common stock, $0.0001 par value per shareACICNasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition

On February 27, 2025, American Coastal Insurance Corporation (the Company, we, our) issued a press release relating to our earnings for the fourth quarter and year ended December 31, 2024 (the Earnings Release). We have attached a copy of the Earnings Release as Exhibit 99.1.

Item 7.01: Regulation FD Disclosure.
The executive officers of the Company intend to use the materials filed herewith, in whole or in part, in one or more meetings with investors and analysts, beginning on February 27, 2025. A copy of the Earnings presentation is attached hereto as Exhibit 99.2.

The information furnished under this Item 2.02 and 7.01, including Exhibit 99.1 and Exhibit 99.2 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference to such filing.

Item 9.01. Financial Statements and Exhibits
Exhibit
No.		 Description
     
Earnings release issued by the Company on February 27, 2025
Earnings presentation issued by the Company on February 27, 2025
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized.
    
  AMERICAN COASTAL INSURANCE CORPORATION
February 27, 2025
By:/s/ B. Bradford Martz
  B. Bradford Martz, President & Chief Executive Officer



Exhibit 99.1
image.jpg
FOR IMMEDIATE RELEASE
AMERICAN COASTAL INSURANCE CORPORATION REPORTS FINANCIAL RESULTS
FOR ITS FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2024

Company to Host Quarterly Conference Call at 5:00 P.M. ET on February 27, 2025
The information in this press release should be read in conjunction with an earnings presentation that is available on the Company's website at investors.amcoastal.com/Presentations.
 
St. Petersburg, FL - February 27, 2025: American Coastal Insurance Corporation (Nasdaq: ACIC) ("ACIC" or the "Company"), a property and casualty insurance holding company, today reported its financial results for the fourth quarter and year ended December 31, 2024.
($ in thousands, except for per share data)Three Months EndedYear Ended
December 31,December 31,
20242023Change20242023Change
Gross premiums written$140,739 $128,260 9.7 %$647,805 $635,709 1.9 %
Gross premiums earned162,710 159,094 2.3 638,608 604,683 5.6 
Net premiums earned73,492 49,141 49.6 273,990 262,060 4.6 
Total revenue79,267 51,251 54.7 296,657 264,400 12.2 
Income from continuing operations, net of tax5,868 17,380 (66.2)76,319 85,204 (10.4)
Income (loss) from discontinued operations, net of tax(922)(3,096)70.2 (601)224,707 NM
Consolidated net income$4,946 $14,284 (65.4)%$75,718 $309,911 NM
Net income available to ACIC stockholders per diluted share
Continuing Operations$0.12 $0.38 (68.4)%$1.55 $1.92 (19.3)%
Discontinued Operations$(0.02)$(0.07)71.4 (0.01)5.06 NM
Total$0.10 $0.31 (67.7)%$1.54 $6.98 NM
Reconciliation of net income to core income:
Plus: Non-cash amortization of intangible assets and goodwill impairment$608 $811 (25.0)%$2,639 $3,247 (18.7)%
Less: Income (loss) from discontinued operations, net of tax(922)(3,096)70.2 (601)224,707 NM
Less: Net realized losses on investment portfolio— (2)NM(124)(6,789)98.2 
Less: Unrealized gains on equity securities454 22 NM1,996 814 NM
Less: Net tax impact (1)
32 166 (80.7)%161 1,937 (91.7)
Core income(2)
5,990 18,005 (66.7)76,925 92,489 (16.8)
Core income per diluted share (2)
$0.12 $0.39 (69.2)%$1.56 $2.08 (25.0)%
Book value per share$4.89 $3.61 35.5 %
NM = Not Meaningful
(1) In order to reconcile net income to the core income measures, the Company included the tax impact of all adjustments using the 21% federal corporate tax rate.
(2) Core income and core income per diluted share, both of which are measures that are not based on generally accepted accounting principles ("GAAP"), are reconciled above to net income and net income per diluted share, respectively, the most directly comparable GAAP measures. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.



1
Exhibit 99.1

Comments from Chief Executive Officer, B. Bradford Martz:

“American Coastal, our insurance subsidiary, remains a leader in the Florida commercial residential market. The Company remained profitable in the 2024 fourth quarter with a combined ratio of 91.9%, despite the devastating impact and full catastrophe retention from Hurricane Milton, leading to a 67.5% combined ratio for the full year. This underscores the strength of our reinsurance strategy in safeguarding our balance sheet while mitigating the financial impact of catastrophic events.

Furthermore, American Coastal’s written premium increased 9.7% from the prior year fourth quarter and renewal retention remained steady. In December, we announced the launch of our apartment program, and, to date, we have received hundreds of high-quality submissions from our six broker partners, affirming the strong demand for American Coastal’s products.”


Return on Equity and Core Return on Equity

The calculations of the Company's return on equity and core return on equity are shown below.
($ in thousands)Three Months EndedYear Ended
December 31,December 31,
2024202320242023
Income from continuing operations, net of tax$5,868 $17,380 $76,319 $85,204 
Return on equity based on GAAP income from continuing operations, net of tax (1)
10.4 %98.6 %33.7 %120.8 %
Income (loss) from discontinued operations, net of tax$(922)$(3,096)$(601)$224,707
Return on equity based on GAAP income (loss) from discontinued operations, net of tax (1)
(1.6)%(17.6)%(0.3)%NM
Consolidated net income$4,946 $14,284 $75,718$309,911
Return on equity based on GAAP net income (1)
8.7 %81.0 %33.5 %NM
Core income$5,990$18,005 $76,925$92,489
Core return on equity (1)(2)
10.6 %102.1 %34.0 %131.1 %
(1) Return on equity for the three months and years ended December 31, 2024 and 2023 is calculated on an annualized basis by dividing the net income or core income for the period by the average stockholders' equity for the trailing twelve months.
(2) Core return on equity, a measure that is not based on GAAP, is calculated based on core income, which is reconciled on the first page of this press release to net income, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section below.


2
Exhibit 99.1
Combined Ratio and Underlying Ratio

The calculations of the Company's combined ratio and underlying combined ratio on a consolidated basis and attributable to Interboro Insurance Company ("IIC"), now captured within discontinued operations, are shown below.
($ in thousands)Three Months EndedYear Ended
December 31,December 31,
20242023Change20242023Change
Consolidated
Loss ratio, net(1)
40.5 %13.7 %26.8  pts25.3 %17.8 %7.5  pts
Expense ratio, net(2)
51.4 %46.2 %5.2  pts42.2 %43.1 %(0.9) pts
Combined ratio (CR)(3)
91.9 %59.9 %32.0  pts67.5 %60.9 %6.6  pts
Effect of current year catastrophe losses on CR27.8 %(0.8)%28.6  pts9.3 %4.9 %4.4  pts
Effect of prior year favorable development on CR(1.8)%(3.0)%1.2  pts(1.4)%(4.9)%3.5  pts
Underlying combined ratio(4)
65.9 %63.7 %2.2  pts59.6 %60.9 %(1.3) pts
IIC
Loss ratio, net(1)
73.4 %78.5 %(5.1) pts71.2 %81.6 %(10.4) pts
Expense ratio, net(2)
47.1 %39.0 %8.1  pts43.4 %50.8 %(7.4) pts
Combined ratio (CR)(3)
120.5 %117.5 %3.0  pts114.6 %132.4 %(17.8) pts
Effect of current year catastrophe losses on CR0.8 %10.6 %(9.8) pts4.1 %12.6 %(8.5) pts
Effect of prior year favorable development on CR(0.7)%13.2 %(13.9) pts(3.6)%2.0 %(5.6) pts
Underlying combined ratio(4)
120.4 %93.7 %26.7  pts114.1 %117.8 %(3.7) pts
(1) Loss ratio, net is calculated as losses and loss adjustment expenses ("LAE"), net of losses ceded to reinsurers, relative to net premiums earned.
(2) Expense ratio, net is calculated as the sum of all operating expenses, less interest expense relative to net premiums earned.
(3) Combined ratio is the sum of the loss ratio, net and expense ratio, net.
(4) Underlying combined ratio, a measure that is not based on GAAP, is reconciled above to the combined ratio, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section below.






























3
Exhibit 99.1
Combined Ratio Analysis

The calculations of the Company's loss ratios and underlying loss ratios are shown below.
($ in thousands)Three Months EndedYear Ended
December 31,December 31,
20242023Change20242023Change
Loss and LAE$29,794 $6,710 $23,084 $69,319 $46,678 $22,641 
% of Gross earned premiums18.3 %4.2 %14.1  pts10.9 %7.7 %3.2  pts
% of Net earned premiums40.5 %13.7 %26.8  pts25.3 %17.8 %7.5  pts
Less:
Current year catastrophe losses$20,405 $(406)$20,811 $25,561 $12,783 $12,778 
Prior year reserve favorable development(1,325)(1,482)157 (3,704)(12,694)8,990 
Underlying loss and LAE (1)
$10,714 $8,598 $2,116 $47,462 $46,589 $873 
% of Gross earned premiums6.6 %5.4 %1.2  pts7.4 %7.7 %(0.3) pts
% of Net earned premiums14.5 %17.5 %(3.0) pts17.3 %17.8 %(0.5) pts
(1) Underlying loss and LAE is a non-GAAP financial measure and is reconciled above to loss and LAE, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.


The calculations of the Company's expense ratios are shown below.
($ in thousands)Three Months EndedYear Ended
December 31,December 31,
20242023Change20242023Change
Policy acquisition costs$26,514 $13,138 $13,376 $70,990 $75,436 $(4,446)
General and administrative11,277 9,561 1,716 44,756 37,559 7,197 
Total Operating Expenses$37,791 $22,699 $15,092 $115,746 $112,995 $2,751 
% of Gross earned premiums
23.2 %14.3 %8.9  pts18.1 %18.7 %(0.6) pts
% of Net earned premiums
51.4 %46.2 %5.2  pts42.2 %43.1 %(0.9) pts

















4
Exhibit 99.1
Quarterly Financial Results
Net income for the fourth quarter of 2024 was $4.9 million, or $0.10 per diluted share, compared to $14.3 million, or $0.31 per diluted share, for the fourth quarter of 2023. Of this income, $5.9 million is attributable to continuing operations for the three months ended December 31, 2024, a decrease of $11.5 million from net income of $17.4 million for the same period in 2023. Quarter-over-quarter revenues increased, driven by a decrease in ceded premiums earned, and an increase in gross premiums earned and net investment income. This was offset by increased expenses quarter-over-quarter, driven by an increase in loss and LAE and policy acquisition costs, as described below. The Company's loss from discontinued operations, also contributed to this change in net income, with the loss decreasing $2.2 million quarter-over-quarter, as the deconsolidation of the Company's former subsidiary, United Property and Casualty Insurance Company ("UPC"), is not impacting the Company in 2024.

The Company's total gross written premium increased $12.5 million, or 9.7%, to $140.7 million for the fourth quarter of 2024, from $128.3 million for the fourth quarter of 2023. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums by state and gross written premium by line of business are shown in the table below.

($ in thousands)Three Months Ended December 31,
20242023Change $Change %
Direct Written and Assumed Premium by State
Florida $135,661 $128,260 $7,401 5.8 %
New York— — — — 
Total direct written premium by state135,661 128,260 7,401 5.8 
Assumed premium5,078 — 5,078 100.0 
Total gross written premium by state$140,739 $128,260 $12,479 9.7 %
Gross Written Premium by Line of Business
Commercial property$140,739 $128,260 $12,479 9.7 %
Personal property— — — — 
Total gross written premium by line of business$140,739 $128,260 $12,479 9.7 %


Loss and LAE increased by $23.1 million, or 344.8%, to $29.8 million for the fourth quarter of 2024, from $6.7 million for the fourth quarter of 2023. Loss and LAE expense as a percentage of net earned premiums increased 26.8 points to 40.5% for the fourth quarter of 2024, compared to 13.7% for the fourth quarter of 2023. Excluding catastrophe losses and reserve development, the Company's gross underlying loss and LAE ratio for the fourth quarter of 2024 would have been 6.6%, a 1.2 point increase from the fourth quarter of 2023.

Policy acquisition costs increased by $13.4 million, or 102.3%, to $26.5 million for the fourth quarter of 2024, from $13.1 million for the fourth quarter of 2023, primarily due to a decrease in reinsurance commission income attributable to the change in our quota share reinsurance cession rate from 40% to 20% effective June 1, 2024. In addition, our management fees attributable to our commercial property premiums increased as the result of additional premiums written quarter-over-quarter.

General and administrative expenses increased by $1.7 million, or 17.7%, to $11.3 million for the fourth quarter of 2024, from $9.6 million for the fourth quarter of 2023, driven by increased overhead costs, such as amortization of capitalized software, equipment costs and salaries, and external spend for audit, actuarial and legal services.

IIC Quarterly Results Highlights

Net loss attributable to IIC totaled $633 thousand for the fourth quarter of 2024 compared to a net loss of $274 thousand for the fourth quarter of 2023. Drivers of the quarter-over-quarter increase included: an increase in general and administrative expenses of $406 thousand as the result of increased costs such as software licensing costs and salary expenses, offset by increased revenues of $355 thousand, which were driven by an increase in gross earned premiums of $1.4 million, offset by increased ceded premiums earned of $1.0 million.

5
Exhibit 99.1

Annual Financial Results
Net income attributable to the Company for the year ended December 31, 2024 was $75.7 million, or $1.54 per diluted share, compared to net income of $309.9 million, or $6.98 per diluted share, for the year ended December 31, 2023. Drivers of net income during 2024 included increased gross premiums earned partially offset by increased ceded premiums earned. Net investment income also increased, driving additional total revenues year-over-year. This increase in revenue was offset by increased expenses year-over-year, driven by increases in losses and LAE incurred and general and administrative expenses, partially offset by decreased policy acquisition costs. During 2024, the Company experienced a net loss attributable to discontinued operations of $601 thousand, compared to $224.7 million of net income attributable to discontinued operations during 2023, as the deconsolidation of the Company's former subsidiary, UPC, is not impacting the Company in 2024.

The Company's total gross written premium increased by $12.1 million, or 1.9%, to $647.8 million for the year ended December 31, 2024, from $635.7 million for the year ended December 31, 2023. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums by state and gross written premium by line of business are shown in the table below.
($ in thousands)Year Ended December 31,
20242023Change $Change %
Direct Written and Assumed Premium by State (1)
Florida $642,727 $635,602 $7,125 1.1 %
New York— — — — 
Texas— (9)9 (100.0)
Total direct written premium by state642,727 635,593 7,134 1.1 
Assumed premium (2)
5,078 116 4,962 4,277.6 
Total gross written premium by state$647,805 $635,709 $12,096 1.9 %
Gross Written Premium by Line of Business
Commercial property$647,805 $635,709 $12,096 1.9 %
Personal property— — — — 
Total gross written premium by line of business$647,805 $635,709 $12,096 1.9 %
(1) The Company ceased writing in Texas as of May 31, 2022.
(2) Assumed premium written for 2023 and 2024 primarily included commercial property business assumed from unaffiliated insurers.


Loss and LAE increased by $22.6 million, or 48.4%, to $69.3 million for the year ended December 31, 2024, from $46.7 million for the year ended December 31, 2023. Loss and LAE expense as a percentage of net earned premiums increased 7.5 points to 25.3% for the year ended December 31, 2024, compared to 17.8% for the year ended December 31, 2023. Excluding catastrophe losses and reserve development, the Company's gross underlying loss and LAE ratio for the year ended December 31, 2024, would have been 7.4%, a decrease of 0.3 points from 7.7% for the year ended December 31, 2023.

Policy acquisition costs decreased by $4.4 million, or 5.9%, to $71.0 million for the year ended December 31, 2024, from $75.4 million for the year ended December 31, 2023, primarily due to an increase in ceding commission income as the result of the Company including quota share reinsurance coverage in their core catastrophe reinsurance programs beginning June 1, 2023. This resulted in ceding commission income for the full year ended December 31, 2024, compared to only seven months of the year ended December 31, 2023. This was partially offset by increased external management fees and premium taxes related to the Company's increased commercial lines gross written premium.

General and administrative expenses increased by $7.2 million, or 19.1%, to $44.8 million for the year ended December 31, 2024, from $37.6 million for the year ended December 31, 2023, driven by increased overhead costs, such as amortization of capitalized software and salaries, as well as external spend for audit, actuarial and legal services.



6
Exhibit 99.1
IIC Annual Results Highlights

Net loss attributable to IIC totaled $1.3 million for the year ended December 31, 2024, compared to a net loss of $3.0 million for the year ended December 31, 2023. Drivers of the year-over-year decreased loss included: an increase in net premiums earned of $6.5 million, driven by an increase in gross premiums earned of $5.1 million, while ceded premiums earned decreased $1.4 million. This was partially offset by increased expenses of $3.9 million, driven by an increase in loss and LAE incurred of $2.6 million, which was driven by current year non-catastrophe losses, and an increase in general and administrative expenses of $853 thousand as the result of increased costs, such as software licensing costs and salary expenses. IIC's policy acquisition costs also increased $426 thousand, driven by the increase in premiums described above.

Reinsurance Costs as a Percentage of Gross Earned Premium

Reinsurance costs as a percentage of gross earned premium in the fourth quarter of 2024 and 2023 were as follows:
20242023
Non-at-Risk(0.3)%(0.2)%
Quota Share(16.2)%(31.4)%
All Other(38.3)%(37.4)%
Total Ceding Ratio(54.8)%(69.0)%

Ceded premiums earned related to the Company's catastrophe excess of loss contracts remained relatively flat quarter-over-quarter. The Company's utilization of quota share reinsurance coverage resulted in less excess of loss coverage needed for the 2023-2024 catastrophe year; however, the cost savings associated with this reduction in necessary coverage were offset by rate increases on catastrophe excess of loss coverage for the same period. This utilization of quota share reinsurance coverage increased the Company's ceding ratio overall during 2023. Effective June 1, 2024, the Company decreased its quota share reinsurance coverage from 40% to 20%, lowering the Company's quota share ceding ratio and overall ceding ratio.

Reinsurance costs as a percentage of gross earned premium in the fourth quarter of 2024 and 2023 for IIC, captured within discontinued operations, were as follows:
IIC
20242023
Non-at-Risk(2.4)%(2.7)%
Quota Share— %— %
All Other(28.4)%(20.9)%
Total Ceding Ratio(30.8)%(23.6)%

Investment Portfolio Highlights

The Company's cash, restricted cash and investment holdings increased from $311.9 million at December 31, 2023, to $540.8 million at December 31, 2024. This increase is driven by positive cash flows from operations. The Company's cash and investment holdings consist of investments in U.S. government and agency securities, corporate debt and investment grade money market instruments. Fixed maturities represented approximately 82.3% of total investments at December 31, 2024, compared to 89.4% of total investments at December 31, 2023. The Company's fixed maturity investments had a modified duration of 2.2 years at December 31, 2024, compared to 3.4 years at December 31, 2023.








7
Exhibit 99.1
Book Value Analysis

Book value per common share increased 35.5% from $3.61 at December 31, 2023, to $4.89 at December 31, 2024. Underlying book value per common share increased 31.2% from $3.97 at December 31, 2023, to $5.21 at December 31, 2024. An increase in the Company's retained earnings as a result of net income for the year ended December 31, 2024, drove the increase in the Company's book value per share. As shown in the table below, removing the effect of Accumulated Other Comprehensive Income ("AOCI"), caused by capital market conditions, increases the Company's book value per common share at December 31, 2024.
($ in thousands, except for share and per share data)December 31, 2024December 31, 2023
Book Value per Share
Numerator:
Common stockholders' equity$235,660 $168,765 
Denominator:
Total Shares Outstanding48,204,962 46,777,006 
Book Value Per Common Share$4.89 $3.61 
Book Value per Share, Excluding the Impact of AOCI
Numerator:
Common stockholders' equity$235,660 $168,765 
Less: Accumulated other comprehensive loss(15,666)(17,137)
Stockholders' Equity, excluding AOCI$251,326 $185,902 
Denominator:
Total Shares Outstanding48,204,962 46,777,006 
Underlying Book Value Per Common Share(1)
$5.21 $3.97 
(1) Underlying book value per common share is a non-GAAP financial measure and is reconciled above to book value per common share, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section below.
8
Exhibit 99.1

Conference Call Details

Date and Time:    February 27, 2025 - 5:00 P.M. ET

Participant Dial-In:    (United States): 877-445-9755
    (International): 201-493-6744

Webcast:    To listen to the live webcast, please go to https://investors.amcoastal.com and click on the conference call link at the top of the page or go to: https://event.webcasts.com/starthere.jsp?ei=1705069&tp_key=6c7e737025

An archive of the webcast will be available for a limited period of time thereafter.

Presentation:     The information in this press release should be read in conjunction with an earnings presentation that is available on the Company's website at investors.amcoastal.com/Presentations.

About American Coastal Insurance Corporation

American Coastal Insurance Corporation (amcoastal.com) is the holding company of the insurance carrier, American Coastal Insurance Company, which was founded in 2007 for the purpose of insuring Condominium and Homeowner Association properties, and apartments in the state of Florida. American Coastal Insurance Company has an exclusive partnership for distribution of Condominium Association properties in the state of Florida with AmRisc Group (amriscgroup.com), one of the largest Managing General Agents in the country specializing in hurricane-exposed properties. American Coastal Insurance Company has earned a Financial Stability Rating of “A”, "Exceptional" from Demotech, and maintains an “A-” insurance financial strength rating with a Stable outlook by Kroll. ACIC maintains a ‘BB+’ issuer rating with a Stable outlook by Kroll.

Contact Information:
Alexander Baty
Vice President, Finance & Investor Relations, American Coastal Insurance Corp.
investorrelations@amcoastal.com
(727) 425-8076
Karin Daly
Investor Relations, Vice President, The Equity Group
kdaly@equityny.com
(212) 836-9623













9
Exhibit 99.1
Definitions of Non-GAAP Measures

The Company believes that investors' understanding of ACIC's performance is enhanced by the Company's disclosure of the following non-GAAP measures. The Company's methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Net income (loss) excluding the effects of amortization of intangible assets, income (loss) from discontinued operations, realized gains (losses) and unrealized gains (losses) on equity securities, net of tax (core income (loss)) is a non-GAAP measure that is computed by adding amortization, net of tax, to net income (loss) and subtracting income (loss) from discontinued operations, net of tax, realized gains (losses) on the Company's investment portfolio, net of tax, and unrealized gains (losses) on the Company's equity securities, net of tax, from net income (loss). Amortization expense is related to the amortization of intangible assets acquired, including goodwill, through mergers and, therefore, the expense does not arise through normal operations. Investment portfolio gains (losses) and unrealized equity security gains (losses) vary independent of the Company's operations. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is net income (loss). The core income (loss) measure should not be considered a substitute for net income (loss) and does not reflect the overall profitability of the Company's business.

Core return on equity is a non-GAAP ratio calculated using non-GAAP measures. It is calculated by dividing the core income (loss) for the period by the average stockholders’ equity for the trailing twelve months (or one quarter of such average, in the case of quarterly periods). Core income (loss) is an after-tax non-GAAP measure that is calculated by excluding from net income (loss) the effect of income (loss) from discontinued operations, net of tax, non-cash amortization of intangible assets, including goodwill, unrealized gains or losses on the Company's equity security investments and net realized gains or losses on the Company's investment portfolio. In the opinion of the Company’s management, core income (loss), core income (loss) per share and core return on equity are meaningful indicators to investors of the Company's underwriting and operating results, since the excluded items are not necessarily indicative of operating trends. Internally, the Company’s management uses core income (loss), core income (loss) per share and core return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis. The most directly comparable GAAP measure is return on equity. The core return on equity measure should not be considered a substitute for return on equity and does not reflect the overall profitability of the Company's business.

Combined ratio excluding the effects of current year catastrophe losses and prior year reserve development (underlying combined ratio) is a non-GAAP measure, that is computed by subtracting the effect of current year catastrophe losses and prior year development from the combined ratio. The Company believes that this ratio is useful to investors, and it is used by management to highlight the trends in the Company's business that may be obscured by current year catastrophe losses and prior year development. Current year catastrophe losses cause the Company's loss trends to vary significantly between periods as a result of their frequency of occurrence and severity and can have a significant impact on the combined ratio. Prior year development is caused by unexpected loss development on historical reserves. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of the Company's business.

Net loss and LAE excluding the effects of current year catastrophe losses and prior year reserve development (underlying loss and LAE) is a non-GAAP measure that is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and LAE. The Company uses underlying loss and LAE figures to analyze the Company's loss trends that may be impacted by current year catastrophe losses and prior year development on the Company's reserves. As discussed previously, these two items can have a significant impact on the Company's loss trends in a given period. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is net loss and LAE. The underlying loss and LAE measure should not be considered a substitute for net loss and LAE and does not reflect the overall profitability of the Company's business.

Book value per common share, excluding the impact of accumulated other comprehensive loss (underlying book value per common share), is a non-GAAP measure that is computed by dividing common stockholders' equity after excluding accumulated other comprehensive income (loss), by total common shares outstanding plus
10
Exhibit 99.1
dilutive potential common shares outstanding. The Company uses the trend in book value per common share, excluding the impact of accumulated other comprehensive income (loss), in conjunction with book value per common share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes this non-GAAP measure is useful to investors because it eliminates the effect of interest rates that can fluctuate significantly from period to period and are generally driven by economic and financial factors that are not influenced by management. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of accumulated other comprehensive income (loss), should not be considered a substitute for book value per common share and does not reflect the recorded net worth of the Company's business.

Discontinued Operations

On May 9, 2024, the Company entered into the Sale Agreement with Forza Insurance Holdings, LLC ("Forza") in which ACIC will sell and Forza will acquire 100% of the issued and outstanding stock of the Company's subsidiary, IIC. Forza's application to acquire IIC was approved by the New York Department of Financial Services on February 13, 2025. The Company and Forza have agreed to close on April 1, 2025.

In addition, on February 27, 2023, the Florida Department of Financial Services was appointed as receiver of the Company's former subsidiary, UPC. As such, prior year financial results and Consolidated Balance Sheet components have been reclassified to reflect continuing and discontinued operations appropriately.

Forward-Looking Statements

Statements made in this press release, or on the conference call identified above, and otherwise, 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. 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.
11
Exhibit 99.1
Consolidated Statements of Comprehensive Income
In thousands, except share and per share amounts
Three Months EndedYear Ended
December 31,December 31,
2024202320242023
REVENUE:
Gross premiums written$140,739 $128,260 $647,805 $635,709 
Change in gross unearned premiums21,971 30,834 (9,197)(31,026)
Gross premiums earned162,710 159,094 638,608 604,683 
Ceded premiums earned(89,218)(109,953)(364,618)(342,623)
Net premiums earned73,492 49,141 273,990 262,060 
Net investment income 5,321 2,075 20,795 8,300 
Net realized investment losses— (2)(124)(6,789)
Net unrealized gains on equity securities454 22 1,996 814 
Other revenue— 15 — 15 
Total revenues$79,267 $51,251 $296,657 $264,400 
EXPENSES:
Losses and loss adjustment expenses29,794 6,710 69,319 46,678 
Policy acquisition costs26,514 13,138 70,990 75,436 
General and administrative expenses11,277 9,561 44,756 37,559 
Interest expense2,784 2,719 11,996 10,875 
Total expenses 70,369 32,128 197,061 170,548 
Income before other income8,898 19,123 99,596 93,852 
Other income (loss)(11)1,071 2,063 2,228 
Income before income taxes8,887 20,194 101,659 96,080 
Provision for income taxes3,019 2,814 25,340 10,876 
Income from continuing operations, net of tax$5,868 $17,380 $76,319 $85,204 
Income (loss) from discontinued operations, net of tax(922)(3,096)(601)224,707 
Net income$4,946 $14,284 $75,718 $309,911 
OTHER COMPREHENSIVE INCOME:
Change in net unrealized gains (losses) on investments(4,049)6,696 3,355 5,998 
Reclassification adjustment for net realized investment losses— 2 124 6,808 
Income tax benefit related to items of other comprehensive income— — — — 
Total comprehensive income$897 $20,982 $79,197 $322,717 
Weighted average shares outstanding
Basic48,095,488 44,713,148 47,831,412 43,596,432 
Diluted49,589,458 45,712,715 49,362,985 44,388,804 
Earnings available to ACIC common stockholders per share
Basic
Continuing operations$0.12 $0.39 $1.60 $1.96 
Discontinued operations(0.02)(0.07)(0.01)5.15 
Total$0.10 $0.32 $1.59 $7.11 
Diluted
Continuing operations$0.12 $0.38 $1.55 $1.92 
Discontinued operations(0.02)(0.07)(0.01)5.06 
Total$0.10 $0.31 $1.54 $6.98 
Dividends declared per share$0.50 $— $0.50 $— 
12
Exhibit 99.1
Consolidated Balance Sheets
In thousands, except share amounts
December 31, 2024December 31, 2023
ASSETS 
Investments, at fair value:  
Fixed maturities, available-for-sale$281,001 $138,387 
Equity securities36,794 — 
Other investments23,623 16,487 
Total investments$341,418 $154,874 
Cash and cash equivalents137,036 138,930 
Restricted cash62,357 18,070 
Accrued investment income2,964 1,767 
Property and equipment, net5,736 3,658 
Premiums receivable, net46,564 45,924 
Reinsurance recoverable on paid and unpaid losses263,419 340,820 
Ceded unearned premiums160,893 155,301 
Goodwill59,476 59,476 
Deferred policy acquisition costs40,282 21,149 
Intangible assets, net5,908 8,548 
Other assets16,816 36,718 
Assets held for sale73,243 77,143 
Total Assets$1,216,112 $1,062,378 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses$322,087 $347,738 
Unearned premiums285,354 276,157 
Reinsurance payable on premiums83,130 — 
Payments outstanding699 706 
Accounts payable and accrued expenses86,140 74,783 
Operating lease liability3,323 739 
Other liabilities757 672 
Notes payable, net149,020 148,688 
Liabilities held for sale49,942 44,130 
Total Liabilities$980,452 $893,613 
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.0001 par value; 1,000,000 authorized; none issued or outstanding— — 
Common stock, $0.0001 par value; 100,000,000 shares authorized; 48,417,045 and 46,989,089 issued, respectively; 48,204,962 and 46,777,006 outstanding, respectively
5 5 
Additional paid-in capital436,524 423,717 
Treasury shares, at cost; 212,083 shares(431)(431)
Accumulated other comprehensive loss(15,666)(17,137)
Retained earnings (deficit)(184,772)(237,389)
Total Stockholders' Equity$235,660 $168,765 
Total Liabilities and Stockholders' Equity$1,216,112 $1,062,378 
13
4th Quarter 2024 February 27, 2025 Earnings Presentation

 
2 Company Overview ACIC is a specialty underwriter of catastrophe exposed property insurance. American Coastal Insurance Corp. (Nasdaq: ACIC) is the insurance holding company for two P&C carriers: American Coastal Insurance Company (AmCoastal) and Interboro Insurance Company (IIC) ¹ along with other operating affiliates. AmCoastal has the #1 market share of commercial residential property insurance (commercial lines) in Florida with roughly 4,018 policies and $646.1 million of premium in-force. IIC’s homeowners & fire insurance products (personal lines) are written exclusively in New York with approximately 19,000 policies and $40.0 million of premium in-force. ¹ ACIC as of December 31, 2024 Total Assets: $1.22 billion Total Equity: $235.7 million Annualized Revenue: $296.7 million Employees: 64 Headquarters: St. Petersburg, FL Credit Rating: BB+ (Kroll) Specialty Commercial Property Specialty Homeowners ¹ ¹ IIC ‘s results are classified as discontinued operations.

 
3 Executive Summary • Q4-24 Results • Non-GAAP Core Income of $6.0m ($0.12) decreased $12.0m (-66.7%) from $18.0m ($0.39) y/y on higher incurred losses resulting from Hurricane Milton and higher policy acquisition costs due to lower ceding commission income, offset by lower ceded earned premiums resulting from the step down of the 40% gross CAT quota share effective 6.1.2023 to 20% effective 6.1.2024. • Net premiums earned grew $24.4m (+49.7%) to $73.5m y/y. • Our combined ratio of 91.9% was impacted by Hurricane Milton, which drove 27.8 points of this ratio. Our Non-GAAP underlying combined ratio (which excludes current catastrophe losses and PY development) was 65.9%. FY24 ended with a combined ratio of 67.5%. • Current year net catastrophe losses in the quarter were $20.4m before tax (Hurricane Milton) and we had $1.3m of favorable prior year reserve development. • Stockholders’ equity attributable to ACIC, decreased $23.9 million from September 30, 2024, to $235.7m or $4.89 per share and $5.21 per share excluding unrealized losses in accumulated other comprehensive income. This was driven by the $0.50 special dividend declared during the fourth quarter. • Other Highlights • We successfully launched our new apartment product, having bound 19 policies with $2.3m of premium as of February 25, 2025. • Successful placement of an additional Catastrophe Bond effective December 20, 2024, which was oversubscribed and provides an additional $200 million in cascading coverage up to a third event. • In addition to the renewal of our January 1, 2025, AOP CAT and February 1, 2025, Excess Per Risk programs at a lower risk-adjusted cost, we placed a new catastrophe aggregate excess of loss agreement (CAT AGG), providing $40m of aggregate limit excess of $40m from all catastrophe perils for the full year ending December 31, 2025 to reduce potential earnings volatility from increased frequency.

 
4 4Q-24 Financial Scorecard Results remain in line with Raymond James’ estimates for the quarter. 4Q-24 = $0.12 vs. Analyst’s Est. = $0.16 4Q-24 = $4.89 vs. Analyst’s Est. = $5.05* 4Q-24 = 91.9% vs. Analyst’s Est. = 88.9% 4Q-24 = 10.6% vs. Analyst’s Est. = 11.9% Core Earnings per Share (CEPS) Book Value per Share (BVPS) Combined Ratio (CR) Core Return on Equity (CROE) *Analyst Est. adjusted for special dividend

 
5 4Q-24 Summary of Key Results A profitable Q4 and our FY24 combined ratio ended near our 65% target, despite the impact of Hurricane Milton

 
6 4Q-24 Operating Overview Despite a full catastrophe retention from Hurricane Milton, the Company remained profitable in Q4 The impact of the quota share step down from 40% to 20% effective June 1, 2024, had a significant impact on ceded premiums earned and operating expense (policy acquisition costs) y/y.

 
7 Balance Sheet Highlights Strong underwriting results have improved our financial strength and allowed us to pay a $0.50 special dividend, despite an active hurricane season.

 
8 2025 Full Year Guidance Our 2025 guidance remains unchanged from our initial December 4, 2024, estimate.

 
9 Investment Portfolio Overview • The Company continues to hold high quality fixed income investments to mitigate market risk. • The Company continues to add to its investment positions in anticipation of future cash yields decreasing.

 
10 Average Account Rate Trends & Wind Deductible While rates trend lower, consistent with reinsurance trends, deductibles and terms remain largely unchanged.

 
11 Commercial Property Valuation Trends Renewed valuations are holding steady in the low single digits vs. expiring.

 
12 12/21/2024 Armor Re II CAT Bond: Structure New top layer has a “drop-down” feature that can provide 2nd & 3rd event protection.

 
13 1/1/25 AOP: Cat Renewal Structure & Highlights

 
14 1/1/25 Cat Agg: Structure & Highlights

 
15 2/1/25 Auto Fac: Structure & Highlights

 
16 Cautionary Statements This presentation and the accompanying remarks contain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward looking statements include expectations regarding our diversification, growth opportunities, retention rates, liquidity, investment returns and ability to meet our investment objectives and to manage and mitigate market risk with respect to our investments. These statements are based on current expectations, estimates and projections about the industry and market in which we operate, and management’s current beliefs and assumptions. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "endeavor," "project," "believe," "anticipate," "intend," "could," "would," "estimate" or "continue" or the negative variations thereof, or comparable terminology, are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainties include, without limitation: the regulatory, economic and weather conditions in the states in which we operate; the impact of new federal or state regulations that affect the property and casualty insurance market; the cost, variability and availability of reinsurance; assessments charged by various governmental agencies; pricing competition and other initiatives by competitors; our ability to attract and retain the services of senior management; the outcome of litigation pending against us, including the terms of any settlements; dependence on investment income and the composition of our investment portfolio and related market risks; our exposure to catastrophic events and severe weather conditions; downgrades in our financial strength ratings; risks and uncertainties relating to our acquisitions, including our ability to successfully integrate the acquired companies; and other risks and uncertainties described in the section entitled "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission (the "SEC"), including our Annual Report in Form 10-K for the year ended December 31, 2024 and 2023. We caution you not to place undue reliance on these forward looking statements, which are valid only as of the date they were made. Except as may be required by applicable law, we undertake no obligation to update or revise any forward-looking statements to reflect new information, the occurrence of unanticipated events, or otherwise. This presentation contains certain non-GAAP financial measures. These measures should be considered supplementary to our results of operations and financial condition that are presented in accordance with GAAP and should not be viewed as a substitute for GAAP measures. See our earnings release, Form 10-K , Form 10-Q and Form 10-Q/A for further information regarding these non-GAAP financial measures.

 
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Cover Page Document
Feb. 27, 2025
Document Information [Line Items]  
Amendment Flag false
Document Type 8-K
Document Period End Date Feb. 27, 2025
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common stock, $0.0001 par value per share
Entity Registrant Name American Coastal Insurance Corporation
Entity Incorporation, State or Country Code DE
Entity File Number 001-35761
Entity Tax Identification Number 75-3241967
Entity Address, Address Line One 570 Carillon Parkway, Suite 100
Entity Address, Postal Zip Code 33716
Entity Address, City or Town Saint Petersburg,
Entity Address, State or Province FL
City Area Code (727)
Local Phone Number 633-0851
Trading Symbol ACIC
Security Exchange Name NASDAQ
Entity Central Index Key 0001401521
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