NASDAQ$ACIC

American Coastal Insurance Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported financial results for the third quarter ended September 30, 2020.

United Insurance Holdings Corp. reported its financial results for the third quarter ended September 30, 2020. The company experienced its largest ever quarterly losses due to unprecedented storms, which masked numerous successes in the third quarter, including continued improvement in core ex-hurricane earnings, increased rate earning through the portfolio, a decreased expense ratio, and accelerated rate increases on both commercial and personal lines of business.

  • The company experienced its largest ever quarterly losses due to unprecedented storms.
  • The total gross written premium increased by $48.6 million, or 15.3%, to $365.8 million.
  • Net loss attributable to the Company for the third quarter of 2020 was $74.1 million, or $1.73 per diluted share.
  • Loss and LAE expense as a percentage of net earned premiums increased 39.0 points to 115.8%.

Headline financials

Total Revenue

$213M

Previous: $208M+2.5%
EPS (adj)

-$1.73

Previous: -$0.66-162.1%
Gross Premiums Written

$366M

Previous: $317M+15.3%
Combined Ratio

164.8%

Previous: 125.1%+31.7%
Return on Equity

-58.6%

No prior period
Core Return on Equity

-66.3%

No prior period
Book Value Per Share

$10.54

No prior period
Capital Expenditures

-$9.46M

Previous: -$16.4M+42.4%
Free Cash Flow

-$83.5M

Previous: -$44.7M-86.8%
Net Income

-$74.1M

Previous: -$28.3M-161.9%
Operating Income

-$101M

Previous: -$36.1M-178.7%
Gross Profit

$198M

Previous: $146M+36.0%
Cash & Equivalents

$323M

Previous: $271M+19.5%
Total Assets

$3.06B

Previous: $2.75B+11.3%
Stock-Based Comp

$207K

Previous: $714K-71.0%

Revenue & EPS history

American Coastal Insurance · Revenue · Quarterly

$213M

Q3 2020+2.5%vs Q3 2019

Forward guidance

As we conclude 2020 and move into the new year, we believe the tightening market conditions will not adversely affect our planned rate increases in both our commercial specialty and personal lines of our business. We remain optimistic that we will be well-positioned to reduce volatility through increased reinsurance cessions, while still achieving positive returns.

Tailwinds

  • Tightening market conditions will not adversely affect our planned rate increases in both our commercial specialty and personal lines of our business.
  • Optimistic about being well-positioned to reduce volatility through increased reinsurance cessions.
  • Achieving positive returns.
  • Continued improvement in our core ex-hurricane earnings.
  • Increased rate earning through our portfolio.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.9%

Avg return

Earnings day

+1.8%

Avg return

5 days after

-0.5%

Avg return

30 days after

44%

27 / 62 earnings

Positive

+28.7%

Q3 2023

Best reaction

-43.9%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.6%-0.7%-4.9%
Q4 2025-2.3%+1.3%-0.6%
Q3 2025-1.7%-2.9%-2.3%
Q1 2025+2.5%-4.0%-6.1%
Q4 2024-4.3%+0.7%-9.1%
Q3 2024-1.5%+4.5%+10.1%
Q2 2024-3.3%-9.8%-6.8%
Q1 2024-3.1%+4.9%-2.1%
Q3 2023+28.7%+10.5%+19.6%
Q2 2023-8.8%-8.0%-6.1%
Q4 2022-43.9%+35.8%+5.0%
Q1 2023-43.9%-15.9%+64.8%
Q3 2022-11.2%-12.8%-12.8%
Q2 2022-3.8%+3.8%-10.4%
Q1 2022-4.3%-8.2%-30.4%
Q4 2021+0.6%+2.9%-15.5%
Q3 2021+17.6%+10.3%+2.1%
Q2 2021-3.3%-6.8%-12.7%
Q1 2021+5.0%+2.5%-22.8%
Q4 2020+0.0%+0.6%-5.6%
Q3 2020-8.0%+9.7%+0.0%
Q2 2020+17.2%+24.1%-0.7%
Q1 2020-5.5%-6.2%-0.2%
Q4 2019+4.2%-3.7%+4.1%
Q3 2019+5.4%+8.4%-1.4%
Q2 2019+3.5%+7.7%+7.2%
Q1 2019+3.1%+2.6%-3.6%
Q4 2018-1.7%-4.5%-2.2%
Q3 2018+3.8%+4.2%+0.0%
Q2 2018-1.6%-1.0%-1.3%
Q1 2018-2.9%-4.9%-1.5%
Q4 2016+0.2%-2.7%-0.2%
Q4 2017+0.2%+6.7%+5.7%
Q3 2017+0.2%+0.5%+5.1%
Q2 2017+3.6%+5.7%-9.4%
Q1 2017-2.8%-3.3%-3.2%
Q3 2016+10.4%+21.3%+31.4%
Q2 2016-1.6%-4.5%-0.5%
Q1 2016-2.0%
Q4 2015-3.1%
Q3 2015+6.0%
Q2 2015-3.2%
Q1 2015+3.7%
Q4 2014+0.6%
Q3 2014+6.1%
Q2 2014+0.8%
Q1 2014+3.0%
Q4 2011-6.1%
Q4 2013-6.1%
Q3 2013-2.5%
Q2 2013-1.8%
Q1 2013+0.7%
Q4 2009+5.1%
Q3 2012+2.1%
Q2 2012-1.0%
Q1 2011-5.9%
Q1 2012+0.0%
Q3 2011+1.2%
Q3 2010+1.2%
Q4 2010+0.0%
Q2 2011+0.0%
Q2 2010+0.0%

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