The following is a summary of the American Coastal Insurance Corporation (ACIC) Q4 2023 Earnings Call Transcript:
Financial Performance:
American Coastal Insurance Company (ACIC) reported Q4 core income of $17.7 million and an annualized core return on equity of 100.6%.
The consolidated net loss ratio improved to 21.2% for Q4 '23, from 54.3% in the same period in 2022.
The net income attributable to the company for 2023 was $309.9 million, or $7.11 per diluted share.
The commercial line segment showed significant improvements with pretax earnings amounting to $27.9 million for Q4 2023, up from $3.7 million for the same period in 2022.
The book value per common share rose by 29.8% from $2.78 at the end of Q3 2023 to $3.61 at the end of the year.
Business Progress:
ACIC has had a record year in 2023, with major improvements in underwriting, expense reduction, and favourable external environment.
The company raised approximately $38 million from its at-the-market offering to support the specialty underwriting expansion.
The firm is expecting further rate increases in 2024 between 10% and 20% over the average 2023 rates.
ACIC is exploring opportunities in excessive and surplus (E&S) lines of business and reinsurance, among others, and expects its quota share to decrease by a third to a half in the following year.
ACIC plans to sell Interboro towards the end of 2024.
ACIC continues its strong relationship with AmRisc and does not anticipate any significant changes as a result of changes in AmRisc's ownership.
More details: American Coastal Insurance IR
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