American Coastal Insurance Corporation Provides Hurricane Loss Updates and Schedules Release of Third Quarter 2024 Financial Results and Conference Call

Rhea-AI Summary

American Coastal Insurance (ACIC) reported estimated hurricane losses for Q3 and Q4 2024. For Q3, net catastrophe losses from Hurricanes Debby and Helene were approximately $3.8 million, with positive net income expected. Q4 losses from Hurricane Milton are estimated at $16.2 million, with additional $13 million in reinstatement premiums to be amortized through May 2025. The company estimates gross losses from Milton between $150-200 million, while maintaining its full $1.26 billion reinsurance tower intact for subsequent events. ACIC expects to remain profitable in Q4 despite Milton's impact.

Positive

• Company expects positive net income for Q3 2024
• Full $1.26 billion reinsurance tower remains available for future events
• Company expects to remain profitable in Q4 2024 despite hurricane impacts
• Lower retention of $10.3 million for potential second and third events

Negative

• Q3 hurricane losses of $3.8 million from Debby and Helene
• Q4 hurricane losses of $16.2 million from Milton
• Additional $13 million in reinstatement premiums to be amortized
• Gross losses between $150-200 million from Hurricane Milton

News Market Reaction – ACIC

+22.22%

1 alert

+22.22% News Effect

On the day this news was published, ACIC gained 22.22%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

ST. PETERSBURG, Fla., Oct. 23, 2024 (GLOBE NEWSWIRE) -- American Coastal Insurance Corporation (Nasdaq Ticker: ACIC) (“the Company”, “American Coastal” or “ACIC”) the insurance holding company of American Coastal Insurance Company (“AmCoastal”), announced estimated hurricane losses for the 2024 third and fourth quarters. The Company also expects to release its financial results for the third quarter ended September 30, 2024, on Wednesday, November 6, 2024, after the close of the market, and will conduct its quarterly conference call at 5:00 p.m. ET.

2024 Third Quarter Update:

The Company estimates net current accident quarter catastrophe losses incurred stemming from Hurricanes Debby and Helene in the third quarter of 2024 to be approximately $3.8 million, net of tax impacts. $2.4 million of this impact from Helene is retained by AmCoastal, with $1.4 million being retained by the Company’s captive reinsurance entity. The Company does not expect losses from Debby or Helene to reach the excess of loss layers of AmCoastal’s reinsurance program and expects to deliver positive net income for the third quarter of 2024.

2024 Fourth Quarter Update:

The Company estimates net current accident quarter catastrophe losses incurred stemming from Hurricane Milton in the fourth quarter of 2024 to be approximately $16.2 million, net of tax impacts. $7.9 million of this impact from Milton is retained by AmCoastal, with $8.3 million being retained by the Company’s captive reinsurance entity. The Company also expects to incur approximately $13 million of reinstatement premiums that will be amortized as ceded premiums earned over the remaining eight month coverage period, from October 2024 through May 2025.

“Hurricanes Helene and Milton were severe storms with devastating impact, and our primary focus is on servicing our policyholders. ACIC’s underwriting discipline and robust reinsurance program serve to protect AmCoastal’s balance sheet and reduce volatility from the active Atlantic hurricane season. We estimate a gross loss between $150 and $200 million from Milton, leaving 100 percent of AmCoastal’s $1.26 billion occurrence based reinsurance tower available for subsequent catastrophe events. With AmCoastal’s reinsurance tower fully intact and a lower $10.3 million retention on potential second and third events, net of tax impacts, the Company remains strongly positioned for the remainder of the 2024 Atlantic hurricane season, and is expected to remain profitable in the fourth quarter, despite Milton’s impact,” said Brad Martz, President of American Coastal.

Third Quarter 2024 Conference Call Details:

The conference call will include live remarks followed by a question and answer (Q&A) session. Interested parties are invited to participate in the conference call and should dial-in 10 minutes before the conference call is scheduled to begin.

Wednesday, November 6, 2024 – 5:00 p.m. ET

Participant Dial-In Numbers:

United States: 877-445-9755
International: 201-493-6744

To listen to the conference call via webcast, please visit the Company website and click on the webcast link at the top of the page or click here. The webcast will be archived and accessible for approximately 30 days following the call.

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 Corporation
investorrelations@amcoastal.com
(727) 425-8076        

Karin Daly
Investor Relations, Vice President, The Equity Group
kdaly@equityny.com
(212) 836-9623

FAQ

What are ACIC's estimated hurricane losses for Q3 2024?

ACIC reported net catastrophe losses of $3.8 million for Q3 2024, stemming from Hurricanes Debby and Helene.

How much are ACIC's estimated losses from Hurricane Milton in Q4 2024?

ACIC estimates net catastrophe losses of $16.2 million from Hurricane Milton in Q4 2024, with gross losses between $150-200 million.

Will ACIC remain profitable in Q4 2024 despite Hurricane Milton?

Yes, ACIC expects to remain profitable in Q4 2024 despite Hurricane Milton's impact, with their reinsurance tower fully intact.

What is ACIC's reinsurance coverage capacity after Hurricane Milton?

ACIC maintains its full $1.26 billion occurrence-based reinsurance tower available for subsequent catastrophe events.