NASDAQ$ACIC

American Coastal Insurance Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported financial results for the third quarter ended September 30, 2022.

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.

Headline financials

Total Revenue

$124M

Previous: $163M-23.9%
EPS (adj)

-$1.64

Previous: -$0.33-397.0%
Gross Premiums Written

$255M

Previous: $322M-20.9%
Combined Ratio

165.4%

Previous: 116.9%+41.5%
Return on Equity

-121.8%

Previous: -15.8%-670.9%
Core Return on Equity

-98.8%

Previous: -17.0%-481.2%
Book Value Per Share

$1.86

Previous: $7.42-74.9%
Capital Expenditures

-$2.93M

Previous: -$3.82M+23.4%
Free Cash Flow

-$73.8M

Previous: -$18.1M-306.9%
Net Income

-$70.9M

Previous: -$14.3M-394.9%
Operating Income

-$70.8M

Previous: -$18.7M-278.5%
Gross Profit

$114M

Previous: $147M-22.5%
Cash & Equivalents

$181M

Previous: $188M-3.9%
Total Assets

$2.94B

Previous: $3.33B-11.6%
Stock-Based Comp

$290K

Previous: $336K-13.7%

Revenue & EPS history

American Coastal Insurance · Revenue · Quarterly

$124M

Q3 2022-23.9%vs Q3 2021
Beat estimate in 3 of 6 quarters(50%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 2022

Historical avgQ3 2022

-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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