Q3 2024 American Coastal Insurance Corp Earnings Call Transcript
Key Points
- American Coastal Insurance Corp (ACIC) reported a strong net income of $28.1 million for the third quarter.
- The company experienced a significant increase in foreign income, rising by $11.4 million year over year.
- Gross premium earned grew by $2.4 million to $160.2 million, indicating strong revenue growth.
- ACIC successfully reduced its quota share from 40% to 20%, leading to lower seeded earned premiums and higher retained underwriting profit.
- The company maintained a strong liquidity position with cash and investments growing by 83.1% to $571.1 million.
- ACIC incurred significant after-tax losses from hurricanes Debby, Helene, and Milton, totaling approximately $20 million.
- The company expects to incur an additional $13 million in premiums to reinstate reinsurance limits used by Hurricane Milton.
- Operating expenses increased by $9.5 million, driven by higher policy acquisition costs and general administrative expenses.
- The company faced a decrease in seeding commission income due to the quota share step down.
- Comparison to prior periods is impacted by the absence of hurricane losses in 2023, affecting year-over-year performance metrics.
Greetings and welcome to American Coastal's third quarter, 2024 earnings conference call. at this time, all participants are in a listen-only mode, a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. 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, Brock and good afternoon, everyone. American Coastal Insurance Corporation has also made this broadcast available on its website at www.amcoastal.com. a replay will be available for approximately 30 days following the call. additionally, you can find copies of the latest earnings release and presentation in the investors section of the company's website. speaking today will be Chairman of
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