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Dec 31, 2024
American Coastal Insurance Q4 2024 Earnings Report
American Coastal Insurance Corporation reported its financial results for the fourth quarter and year ended December 31, 2024.
Key Takeaways
American Coastal Insurance Corporation remained profitable in Q4 2024 with a combined ratio of 91.9%, despite the impact of Hurricane Milton. Gross written premium increased by 9.7% quarter-over-quarter, and the company launched its apartment program.
Gross premiums written increased by 9.7% to $140.7 million in Q4 2024.
Consolidated net income for Q4 2024 was $4.9 million, a decrease from $14.3 million in Q4 2023.
The combined ratio for Q4 2024 was 91.9%, reflecting the impact of Hurricane Milton.
Book value per share increased by 35.5% to $4.89 at December 31, 2024.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company expects to close the sale of its subsidiary, IIC, on April 1, 2025, which will impact future financial results.
Positive Outlook
- The company's reinsurance strategy proved effective in mitigating financial impact from catastrophic events.
- Strong demand for American Coastal's products affirmed by high-quality submissions from broker partners.
- The launch of the apartment program is expected to contribute positively to future growth.
- Increased ceding commission income due to quota share reinsurance coverage.
- Positive cash flows from operations contributed to increased investment holdings.
Challenges Ahead
- Net income decreased significantly quarter-over-quarter due to increased expenses.
- Loss and LAE increased substantially in Q4 2024.
- Policy acquisition costs increased due to a decrease in reinsurance commission income.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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