AMERICAN COASTAL INSURANCE Corp Files 2023 Annual Report

Ticker: ACIC · Form: 10-K · Filed: Mar 15, 2024 · CIK: 1401521

American Coastal Insurance CORP 10-K Filing Summary
FieldDetail
CompanyAmerican Coastal Insurance CORP (ACIC)
Form Type10-K
Filed DateMar 15, 2024
Risk Level
Pages15
Reading Time18 min
Key Dollar Amounts$0.0001, $34,334,000, $635,709,000
Sentimentneutral

Sentiment: neutral

Topics: 10-K, Financial Report, Insurance, AMERICAN COASTAL INSURANCE, SEC Filing

TL;DR

<b>AMERICAN COASTAL INSURANCE Corp filed its 2023 10-K report, detailing financial performance and operational status.</b>

AI Summary

AMERICAN COASTAL INSURANCE Corp (ACIC) filed a Annual Report (10-K) with the SEC on March 15, 2024. Total assets reported at $212,083,000 for the fiscal year ended December 31, 2023. Net income for the fiscal year ended December 31, 2023, was $16,118,000. Revenue for the fiscal year ended December 31, 2023, was $89,760,000. Debt-to-equity ratio is not explicitly stated but implied by balance sheet figures. The company previously operated under the names UNITED INSURANCE HOLDINGS CORP. and FMG ACQUISITION CORP.

Why It Matters

For investors and stakeholders tracking AMERICAN COASTAL INSURANCE Corp, this filing contains several important signals. The filing provides a comprehensive overview of the company's financial health and strategic direction for the past fiscal year. Investors can analyze key financial metrics such as revenue, net income, and assets to assess the company's performance and future prospects.

Risk Assessment

Risk Level: — AMERICAN COASTAL INSURANCE Corp shows moderate risk based on this filing. The company's financial performance and market position are subject to the inherent risks of the insurance industry, including regulatory changes and competitive pressures, as detailed in the 10-K filing.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand the company's financial health and potential challenges.

Financial Highlights

debt To Equity
N/A
revenue
89,760,000
operating Margin
N/A
total Assets
212,083,000
total Debt
N/A
net Income
16,118,000
eps
0.200951
gross Margin
N/A
cash Position
N/A
revenue Growth
N/A

Revenue Breakdown

SegmentRevenueGrowth
Commercial LinesNot specifiedN/A
Personal LinesNot specifiedN/A

Key Numbers

Key Players & Entities

FAQ

When did AMERICAN COASTAL INSURANCE Corp file this 10-K?

AMERICAN COASTAL INSURANCE Corp filed this Annual Report (10-K) with the SEC on March 15, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by AMERICAN COASTAL INSURANCE Corp (ACIC).

Where can I read the original 10-K filing from AMERICAN COASTAL INSURANCE Corp?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by AMERICAN COASTAL INSURANCE Corp.

What are the key takeaways from AMERICAN COASTAL INSURANCE Corp's 10-K?

AMERICAN COASTAL INSURANCE Corp filed this 10-K on March 15, 2024. Key takeaways: Total assets reported at $212,083,000 for the fiscal year ended December 31, 2023.. Net income for the fiscal year ended December 31, 2023, was $16,118,000.. Revenue for the fiscal year ended December 31, 2023, was $89,760,000..

Is AMERICAN COASTAL INSURANCE Corp a risky investment based on this filing?

Based on this 10-K, AMERICAN COASTAL INSURANCE Corp presents a moderate-risk profile. The company's financial performance and market position are subject to the inherent risks of the insurance industry, including regulatory changes and competitive pressures, as detailed in the 10-K filing.

What should investors do after reading AMERICAN COASTAL INSURANCE Corp's 10-K?

Review the detailed financial statements and risk factors in the 10-K to understand the company's financial health and potential challenges. The overall sentiment from this filing is neutral.

Risk Factors

Filing Stats: 4,420 words · 18 min read · ~15 pages · Grade level 17 · Accepted 2024-03-15 16:22:08

Key Financial Figures

Filing Documents

Forward-Looking Statements 3

Forward-Looking Statements 3 Part I.

Risk Factors 14

Item 1A. Risk Factors 14

Unresolved Staff Comments 26

Item 1B. Unresolved Staff Comments 26

Cybersecurity 26

Item 1C. Cybersecurity 26

Properties 27

Item 2. Properties 27

Legal Proceedings 28

Item 3. Legal Proceedings 28

Mine Safety Disclosures 28

Item 4. Mine Safety Disclosures 28 Part II.

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29

Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures about Market Risk 54

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 54

Financial Statements and Supplementary Data 47

Item 8. Financial Statements and Supplementary Data 47 Auditor's Report (PCAOB ID 34 ) 57 Consolidated Balance Sheets 59 Consolidated Statements of Comprehensive Income (Loss) 60 Consolidated Statements of Stockholders' Equity (Deficit) 61 Consolidated Statements of Cash Flows 62

Notes to Consolidated Financial Statements 63

Notes to Consolidated Financial Statements 63

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 112

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 112

Controls and Procedures 112

Item 9A. Controls and Procedures 112

Other Information 113

Item 9B. Other Information 113

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 113

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 113 Part III.

Directors, Executive Officers and Corporate Governance 114

Item 10. Directors, Executive Officers and Corporate Governance 114

Executive Compensation 114

Item 11. Executive Compensation 114

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 114

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 114

Certain Relationships and Related Transactions, and Director Independence 114

Item 13. Certain Relationships and Related Transactions, and Director Independence 114

Principal Accountant Fees and Services 114

Item 14. Principal Accountant Fees and Services 114 Part IV.

Exhibits and Financial Statement Schedules 115

Item 15. Exhibits and Financial Statement Schedules 115 Exhibit Index 116

Form 10-K Summary 119

Item 16. Form 10-K Summary 119 Signatures 120 Throughout this Annual Report on Form 10-K (Form 10-K), we present amounts in all tables in thousands, except for share amounts, per share amounts, policy and claim counts or where more specific language or context indicates a different presentation. In the narrative sections of this Form 10-K, we show full values rounded to the nearest thousand. 2 AMERICAN COASTAL INSURANCE CORPORATION

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS our exposure to catastrophic events and severe weather conditions; the regulatory, economic and weather conditions present in Florida and New York, the states in which we are most concentrated; our ability to cultivate and maintain agent relationships, particularly our relationship with AmRisc, LLC (AmRisc); the possibility that actual claims incurred may exceed our loss reserves for claims; assessments charged by various governmental agencies; our ability to implement and maintain adequate internal controls over financial reporting, including our ability to remediate any existing material weakn

Business

Item 1. Business INTRODUCTION Company Overview American Coastal Insurance Corporation (referred to in this Form 10-K as we, our, us, the Company or ACIC) is a holding company primarily engaged in the commercial and personal property and casualty insurance business with investments in the United States. On July 10, 2023, we changed our corporate name from United Insurance Holdings Corp. to American Coastal Insurance Corporation. We conduct our business principally through our two wholly-owned insurance subsidiaries: American Coastal Insurance Company (AmCoastal); and Interboro Insurance Company (IIC). Collectively, we refer to the holding company and all our subsidiaries, including non-insurance subsidiaries, as "American Coastal Insurance Corporation," which is the preferred brand identification for our Company. Our Company's primary source of revenue is generated from writing insurance in Florida and New York. Our target market in such areas consists of states where the perceived threat of natural catastrophe has caused large national insurance carriers to reduce their concentration of policies. We believe an opportunity exists for ACIC to write profitable business in such areas. During 2022, we also wrote commercial residential insurance in South Carolina and Texas, however, effective May 1, 2022, we no longer write in these states. In addition, during 2022 we wrote personal residential business in six other states, however on February 27, 2023, our former insurance subsidiary, United Property & Casualty Insurance Company (UPC) was placed into receivership with the Florida Department of Financial Services (the "DFS"), which divested our ownership of UPC. The events leading to receivership and results of this subsidiary for periods prior to receivership, now included within discontinued operations, can be seen in Note 3 of the Notes to Consolidated Financial Statements below. We have historically grown our business through strong organic growth, complemen

Underwriting

Underwriting We price our products at levels that we project will generate an acceptable underwriting profit. We aim to accurately underwrite the risk and profitability of each potential policy. The Company uses pricing algorithms, judgement-based rating and consent to rate methodologies that consider historical attritional loss costs for the rating territory in which the risk resides, as well as modeled expected losses for catastrophes and projected reinsurance costs based on the specific geographic and structural characteristics of the property. We seek to optimize our portfolio by managing our probable maximum loss, total insured value and average annual loss. As part of this optimization process, we use the output from third-party modeling software to analyze our risk exposures, including wind exposures, by zip code or street address. We measure our underwriting profitability by the combined ratio, which is a sum of the ratios of losses, loss adjustment expenses, and underwriting expenses to either gross or net earned premiums. A combined ratio under 100% indicates an underwriting profit. Refer to Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of this report for further details on our combined ratio. Distribution Channels Our commercial lines policies are marketed and distributed to condominium associations by AmRisc, LLC through a network of independent agencies managed by AmRisc, LLC that specialize in commercial residential insurance. AmRisc, LLC is an unaffiliated third-party and represents 100% of our commercial lines revenue based on our exclusive agreement in Florida. As of December 31, 2023, we marketed and distributed our personal lines policies to consumers through approximately 400 independent agencies. 6 AMERICAN COASTAL INSURANCE CORPORATION The Company focused on the independent agency distribution channel since its inception, and we believe independent agents and agencies bu

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