American Coastal Insurance's Ratings Boost: What It Means
American Coastal Insurance Corporation Experiences Rating Upgrade
American Coastal Insurance Corporation, a prominent name in the insurance sector, has recently seen a significant improvement in its financial ratings. This exciting news has come from Kroll Bond Rating Agency (KBRA), which upgraded the company’s Issuer Rating from BB+ to BBB- and its Debt Rating from BB+ to BBB-. The insurance holding company, identified by its Nasdaq ticker ACIC, offers a well-deserved change in its rating outlook, moving from Stable to Positive.
Details of the Upgrade
The rating upgrade reflects American Coastal’s dedication to improving its financial leverage metrics and its ongoing commitment to maintaining robust double-digit EBIT interest coverage. KBRA’s positive outlook conveys confidence in American Coastal’s future, suggesting that the company is on track to report strong operating results while maintaining a substantial level of risk-adjusted capitalization. The firm has also developed solid reinsurance programs with reputable counterparties and a high-quality investment portfolio, further solidifying its market position.
CEO's Comments on the Rating Improvement
Brad Martz, the President and CEO of American Coastal, expressed pride in achieving investment-grade status along with a positive outlook. He stated, “We are proud to have regained investment grade status and positive outlooks. This will immediately reduce the Company’s annual interest expense by $1.5 million and supports our strategy to grow the business responsibly.” This financial flexibility is seen as a key to responsibly expanding their business operations in the future.
Company Overview
Founded in 2007, American Coastal Insurance Corporation primarily focuses on insuring condominium and homeowner association properties, as well as apartments within Florida. The insurance carrier, American Coastal Insurance Company (AmCoastal), has established a significant partnership with AmRisc Group, known for specializing in hurricane-exposed properties. This collaboration is crucial, particularly in a state where weather-related risks can impact operating conditions.
Financial Strength Ratings
The company has earned respect for its financial strength, obtaining a Financial Stability Rating of “A, Exceptional” from Demotech and holding an “A-” insurance financial strength rating from Kroll. These ratings affirm American Coastal’s ability to support its policyholders effectively, reinforcing confidence among investors and stakeholders.
Contacting American Coastal Insurance
If you require further information about American Coastal Insurance Corporation or wish to get in touch with their investor relations team, Alexander Baty is the Vice President for Finance and Investor Relations. You can reach him via email at investorrelations@amcoastal.com or call at (727) 425-8076.
Additionally, Karin Daly, Vice President of Investor Relations at The Equity Group, is available for inquiries as well. She can be contacted at kdaly@theequitygroup.com or by phone at (212) 836-9623.
Frequently Asked Questions
What recent ratings upgrades did American Coastal Insurance Corporation receive?
American Coastal Insurance Corporation was upgraded from BB+ to BBB- for both its Issuer and Debt Ratings by Kroll Bond Rating Agency.
How will these rating upgrades impact the company?
The upgrades will lower the company's annual interest expense by approximately $1.5 million and enhance its ability to grow responsibly.
Who is the current CEO of American Coastal Insurance Corporation?
The current CEO is Brad Martz, who leads the company in its future growth strategies.
What is the focus of American Coastal Insurance Corporation?
The company primarily insures condominium and homeowner association properties and apartments in Florida.
How can I contact American Coastal Insurance Corporation?
You can reach out to Alexander Baty or Karin Daly via their provided email addresses or contact numbers for inquiries related to investor relations.
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