NASDAQ$ACIC

American Coastal Insurance Corporation · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

American Coastal Insurance Corporation reported its financial results for the fourth quarter and year ended December 31, 2024.

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.

Headline financials

Total Revenue

$79.3M

No prior period
EPS (adj)

$0.12

No prior period
Gross Premiums Written

$141M

No prior period
Combined Ratio

91.9%

No prior period
Return on Equity

8.7%

No prior period
Core Return on Equity

10.6%

No prior period
Book Value Per Share

$4.89

No prior period
Net Premiums Earned

$73.5M

No prior period
Loss Ratio, Net

40.5%

No prior period
Expense Ratio, Net

51.4%

No prior period
Underlying Combined Ratio

65.9%

No prior period
Underlying Book Value Per Common Share

$5.21

No prior period
Capital Expenditures

-$11K

No prior period
Net Income

$4.95M

No prior period
Operating Income

$5.87M

No prior period
Gross Profit

$163M

No prior period

Revenue & EPS history

American Coastal Insurance · Revenue · Quarterly

$79.3M

Q4 2024
Beat estimate in 3 of 6 quarters(50%)
ActualEstimate

Forward guidance

The company expects to close the sale of its subsidiary, IIC, on April 1, 2025, which will impact future financial results.

Tailwinds

  • 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.

Headwinds

  • 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.
  • General and administrative expenses rose due to increased overhead costs and external spend.
  • The deconsolidation of UPC is no longer impacting the company in 2024, but prior year results included its positive contribution.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-0.9%

Avg return

Earnings day

+1.8%

Avg return

5 days after

-0.3%

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 2026-2.9%-1.1%
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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