American Coastal Insurance Corporation's Hurricane Updates
American Coastal Insurance Corporation (NASDAQ: ACIC) is addressing recent hurricane impacts and their expected effects on their financial standing. Due to the severe weather events in 2024, the company has prepared an updated forecast of estimated losses resulting from these natural disasters.
Insights on Third Quarter Losses
As part of their recent statements, American Coastal estimates that losses from Hurricanes Debby and Helene during the third quarter of 2024 could reach approximately $3.8 million, accounting for tax impacts.
Of this amount, $2.4 million will be covered by AmCoastal, while $1.4 million will be handled by the company’s captive reinsurance division. Fortunately, the company anticipates that losses from these hurricanes will remain under the excess of loss layers within AmCoastal's reinsurance framework, allowing them to forecast a positive net income for the third quarter of 2024.
Fourth Quarter Projections
Looking ahead to the fourth quarter, the company estimates that Hurricane Milton could generate roughly $16.2 million in catastrophe losses, after tax effects. AmCoastal will retain $7.9 million of this, and their captive reinsurance unit will assume $8.3 million. Moreover, the company is preparing for approximately $13 million in reinstatement premiums, which will be spread across the next eight months.
Management's Perspective on Recent Events
Brad Martz, President of American Coastal, recently expressed the company's dedication to their policyholders amidst the turbulent hurricane season, stating, "Hurricanes Helene and Milton were severe storms with devastating impacts. Our primary focus is on servicing our policyholders." With regard to financial resilience, he emphasized, "Our underwriting discipline and robust reinsurance strategy safeguard AmCoastal's financial health while mitigating fluctuations created by hurricane season. We have calculated the gross losses from Milton between $150 million and $200 million but remain confident with AmCoastal’s significant reinsurance arrangements intact, allowing us to comfortably weather this storm.”
Details of Upcoming Conference Call
The company is set to release its financial results for the third quarter on November 6, at 5:00 p.m. ET. Interested stakeholders are encouraged to join the conference call, as it will offer live remarks from the management followed by a question-and-answer portion. Participants should call in promptly to ensure their place in the discussion.
About American Coastal Insurance Corporation
American Coastal Insurance Corporation serves as the parent organization for American Coastal Insurance Company, founded in 2007 to insulate properties like condominiums and homeowner groups in hurricane-prone regions. The company boasts a successful partnership with AmRisc Group for exclusive distribution of these insurance policies in Florida, solidifying its reputation in the market. The company holds an ‘A’ rating from Demotech and an ‘A-’ rating for financial stability from Kroll, indicating a strong ability to satisfy policy obligations.
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
Frequently Asked Questions
What are the estimated losses for the third quarter of 2024?
The estimated losses from Hurricanes Debby and Helene are around $3.8 million for the third quarter of 2024.
How much loss is expected from Hurricane Milton?
Hurricane Milton is projected to result in approximately $16.2 million in losses for the fourth quarter of 2024.
When will the financial results be released?
The financial results for the third quarter will be released on November 6, 2024.
How can I participate in the conference call?
Participants can join the call by dialing in ten minutes before the scheduled start time at 5:00 p.m. ET.
What is American Coastal Insurance Corporation's core focus?
The company primarily focuses on insuring properties susceptible to hurricanes, especially condominiums and homeowner associations in Florida.
