American Coastal Insurance's Q4 2024: Navigating Contradictions in Apartment Market Strategy, Reinsurance, and Pricing Dynamics

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Financial Performance and Catastrophe Management:
- American Coastal Insurance Corporation reported pretax income of approximately $102 million for the full year 2024, up nearly 6% year-over-year, despite incurring $23 million more in net catastrophe losses.
- The growth was driven by strong underwriting results and effective catastrophe management, including the successful placement of a new catastrophe aggregate program.

Apartment Program Launch and Expansion:
- The company successfully launched a new apartment program in Florida, writing 19 new apartment risks totaling approximately $2.3 million of premium.
- This expansion is part of a strategic initiative to grow the apartment book, with an aspirational target of $200 million to $300 million of premium, as the market opportunity is analyzed to be within this range.

Reinsurance Enhancements and Strengthened Financial Position:
- American Coastal Insurance Corporation enhanced its reinsurance protections with a new 3-year catastrophe bond, upsized from $100 million to $200 million.
- This strategic move, along with the successful renewal of other reinsurance programs and a strong liquidity position, has significantly improved the company's financial resilience.

Operational Growth and Renewal Retention:
- Despite retaining a full retention loss from Hurricane Milton, the company achieved 55% year-over-year growth in total revenues for Q4.
- This was attributed to new business growth, strong renewal account retention, and policy assumption from Citizens, which contributed to an increase in policy count.