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Sep 30, 2022
American Coastal Insurance Q3 2022 Earnings Report
Reported financial results for the third quarter ended September 30, 2022.
Key Takeaways
United Insurance Holdings Corp. reported a net loss attributable to UIHC of $70.9 million, or $1.65 per diluted share, compared to a net loss of $14.3 million, or $0.33 per diluted share, for the third quarter of 2021. The results were impacted by decreased gross written premiums, unfavorable prior year loss development, Hurricane Ian, and the impairment of goodwill in the personal lines segment.
Gross written premium decreased by 20.9% to $255.2 million due to the transition of the Northeast business and underwriting actions in personal lines.
Net loss attributable to UIHC was $70.9 million, or $1.65 per diluted share, compared to $14.3 million, or $0.33 per diluted share, for the third quarter of 2021.
The combined ratio was 165.4%, driven by a loss ratio of 100.9% and an expense ratio of 64.5%.
Book value per common share decreased 74.2% from $7.20 at December 31, 2021, to $1.86 at September 30, 2022.
American Coastal Insurance
American Coastal Insurance
American Coastal Insurance Revenue by Segment
American Coastal Insurance Revenue by Geographic Location
Revenue by Segment
Commercial property Revenue
CapyFin.comRevenue by Geographic Location
Florida Revenue
CapyFin.com Forward Guidance
The company is withdrawing United Property & Casualty Insurance Company from the personal lines business in the states of Florida, Louisiana and Texas. Interboro Insurance Company will continue to write personal lines business in the state of New York. The withdrawal allows the company to focus capacity on commercial residential business written by American Coastal Insurance Company. The withdrawal plan will generally begin with non-renewals on January 1, 2023.
Positive Outlook
- Focus capacity on commercial residential business.
- Withdrawal plan allows for better resource allocation.
- Continued personal lines business in New York.
- Reduces exposure in high-risk states.
- Improves long-term financial stability.
Challenges Ahead
- Loss of personal lines revenue in Florida, Louisiana, and Texas.
- Potential disruption during the transition.
- Impact on agents and customers in affected states.
- Reputational risk from withdrawing from markets.
- Uncertainty regarding the performance of the remaining business.