AMERICAN COASTAL INSURANCE (ACIC) 6 Nov 24 2024 Q3 Earnings call transcript
1min read Robert Peed, Chairman of the Board and CEO, sets the tone for the call, highlighting the successful handling of Hurricane Milton and the company's commitment to supporting relief efforts. He also notes the retention of approximately $3.8 million in after-tax losses from Hurricanes Debby and Helene and a strong underwriting profit in the third quarter.
Bradford Martz, President, delves into the details of American Coastal's hurricane losses, including the net impact of $3.2 million for Hurricane Helene and the expected net loss of $16.2 million for Hurricane Milton. He also discusses the company's reinsurance coverage and protection against future events.
Svetlana Castle, CFO, provides a comprehensive financial update, emphasizing the strong quarter with a net income of $28.1 million, a decrease in ceded earned premiums, and an increase in earnings before tax. She also highlights the company's strong liquidity position and improved leverage ratios.
The earnings call reveals several key takeaways for American Coastal Insurance Corporation. The successful handling of Hurricane Milton, the company's commitment to supporting relief efforts, and the retention of after-tax losses all point to a company well-prepared for hurricane season. Furthermore, the financial updates highlight the company's strong performance and growth, with a net income of $28.1 million and a decrease in ceded earned premiums.
The company's participation in its first-ever takeout from Citizens and the launch of a new apartment program signal American Coastal's strategic growth initiatives. Looking ahead, the company is well-protected against potential subsequent events and expects to remain profitable in the fourth quarter and post a strong result for the full year.
The management team's confident tone and clear guidance on hurricane losses, financial performance, and strategic initiatives underscore American Coastal's strong position in the insurance industry. Their focus on underwriting profitability, effective hurricane management, and strategic growth initiatives position the company for continued success and growth in the future.
