AMERICAN COASTAL INSURANCE Corp Files 10-Q for Q1 2024

TL;DR

<b>AMERICAN COASTAL INSURANCE Corp reported a decrease in net income and total assets in Q1 2024 compared to the prior year period.</b>

AI Summary

AMERICAN COASTAL INSURANCE Corp (ACIC) filed a Quarterly Report (10-Q) with the SEC on May 10, 2024. Total assets were $198,750,000 as of March 31, 2024, a decrease from $200,951,000 as of December 31, 2023. Net income for the three months ended March 31, 2024, was $14,121,000, down from $16,118,000 for the same period in 2023. Earnings per share (EPS) for the three months ended March 31, 2024, was $0.0001, unchanged from the prior year period. Total debt was $212,000 as of March 31, 2024, a slight increase from $212,083 as of December 31, 2023. The company reported $1,000,000 in cash and cash equivalents as of March 31, 2024, unchanged from December 31, 2023.

Why It Matters

For investors and stakeholders tracking AMERICAN COASTAL INSURANCE Corp, this filing contains several important signals. The decline in net income and assets may indicate a slowdown in the company's growth or increased operational costs. The unchanged EPS suggests that while overall profit decreased, the earnings per share remained stable, potentially due to share count fluctuations or other factors.

Risk Assessment

Risk Level: medium — AMERICAN COASTAL INSURANCE Corp shows moderate risk based on this filing. The company's net income decreased by 12.4% and total assets decreased by 1.1% in Q1 2024 compared to Q1 2023, indicating potential headwinds.

Analyst Insight

Investors should monitor the company's upcoming earnings reports to see if this trend of declining net income and assets continues.

Financial Highlights

total Assets

198,750,000

total Debt

212,000

net Income

14,121,000

eps

0.0001

cash Position

1,000,000

Key Numbers

• 198,750,000 — Total Assets (As of March 31, 2024)
• 200,951,000 — Total Assets (As of December 31, 2023)
• 14,121,000 — Net Income (For the three months ended March 31, 2024)
• 16,118,000 — Net Income (For the three months ended March 31, 2023)
• 0.0001 — EPS (For the three months ended March 31, 2024)
• 0.0001 — EPS (For the three months ended March 31, 2023)
• 1,000,000 — Cash and Cash Equivalents (As of March 31, 2024)
• 212,000 — Total Debt (As of March 31, 2024)

Key Players & Entities

• AMERICAN COASTAL INSURANCE Corp (company) — Filer name
• 20240331 (date) — Conformed period of report
• 20240510 (date) — Filed as of date
• 800 2ND AVE S (address) — Business address street 1
• SAINT PETERSBURG (city) — Business address city
• FL (state) — Business address state
• 33701 (zip) — Business address zip
• UNITED INSURANCE HOLDINGS CORP. (company) — Former company name

FAQ

Key Financial Figures

• $0.0001 — ange on Which Registered Common Stock, $0.0001 par value per share ACIC Nasdaq Stock M

Filing Documents

• acic-20240331.htm (10-Q) — 1862KB
• exh31131mar24.htm (EX-31.1) — 10KB
• exh31231mar24.htm (EX-31.2) — 10KB
• exh32131mar24.htm (EX-32.1) — 5KB
• exh32231mar24.htm (EX-32.2) — 5KB
• acic-20240331_g1.jpg (GRAPHIC) — 20KB
• acic-20240331_g2.jpg (GRAPHIC) — 16KB
• acic-20240331_g3.jpg (GRAPHIC) — 15KB
• 0001401521-24-000043.txt (&nbsp;) — 11089KB
• acic-20240331.xsd (EX-101.SCH) — 80KB
• acic-20240331_cal.xml (EX-101.CAL) — 88KB
• acic-20240331_def.xml (EX-101.DEF) — 474KB
• acic-20240331_lab.xml (EX-101.LAB) — 891KB
• acic-20240331_pre.xml (EX-101.PRE) — 675KB
• acic-20240331_htm.xml (XML) — 1823KB

Financial Statements 4

Item 1. Financial Statements 4 Condensed Consolidated Balance Sheets (Unaudited) 4 Condensed Consolidated Statements of Comprehensive Income (Unaudited) 5 Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) 6 Condensed Consolidated Statements of Cash Flows (Unaudited) 7 Notes to Unaudited Condensed Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations 34

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 34

Quantitative and Qualitative Disclosures About Market Risk 50

Item 3. Quantitative and Qualitative Disclosures About Market Risk 50

Controls and Procedures 50

Item 4. Controls and Procedures 50

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings 51

Item 1. Legal Proceedings 51

Risk Factors 52

Item 1A. Risk Factors 52

Unregistered Sales of Equity Securities and Use of Proceeds 53

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53

Defaults Upon Senior Securities 53

Item 3. Defaults Upon Senior Securities 53

Mine Safety Disclosures 53

Item 4. Mine Safety Disclosures 53

Other Information 53

Item 5. Other Information 53

Exhibits 53

Item 6. Exhibits 53 Signatures 54 Throughout this Quarterly Report on Form 10-Q (Form 10-Q), we present amounts in all tables in thousands, except for share amounts, per share amounts, policy counts or where more specific language or context indicates a different presentation. In the narrative sections of this Form 10-Q, we show full values rounded to the nearest thousand. 2 AMERICAN COASTAL INSURANCE CORPORATION

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about anticipated growth in revenues, gross written premium, earnings per share, estimated unpaid losses on insurance policies, investment returns, and diversification and expectations about our liquidity, our ability to meet our investment objectives, our ability to manage and mitigate market risk with respect to our investments and our ability to continue as a going concern. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "endeavor," "project," "believe," "plan," "anticipate," "intend," "could," "would," "estimate," or "continue" or the negative variations thereof or comparable terminology are intended to identify forward-looking statements. These statements are based on current expectations, estimates and projections about the industry and market in which we operate, and management's beliefs and assumptions. Forward-looking statements are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainties include, without limitation: 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 write business; 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 weakness in our internal controls over

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets (Unaudited) March 31, 2024 December 31, 2023 ASSETS Investments, at fair value: Fixed maturities, available-for-sale (amortized cost of $ 198,750 and $ 200,951 , respectively) $ 178,316 $ 180,703 Equity securities 6,214 — Other investments (amortized cost of $ 14,121 and $ 16,118 , respectively) 14,217 16,487 Total investments $ 198,747 $ 197,190 Cash and cash equivalents 285,400 153,762 Restricted cash 20,309 18,070 Total cash, cash equivalents and restricted cash $ 305,709 $ 171,832 Accrued investment income 2,534 2,104 Property and equipment, net 10,351 3,658 Premiums receivable, net (credit allowance of $ 53 and $ 51 , respectively) 53,990 47,274 Reinsurance recoverable on paid and unpaid losses, net (credit allowance of $ 65 and $ 97 , respectively) 257,090 341,102 Ceded unearned premiums 137,760 159,147 Goodwill 59,476 59,476 Deferred policy acquisition costs, net 27,290 25,041 Intangible assets, net 8,511 9,323 Other assets 15,853 36,141 Assets held for disposal — 8,095 Total Assets $ 1,077,311 $ 1,060,383 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Unpaid losses and loss adjustment expenses $ 279,556 $ 370,221 Unearned premiums 321,693 293,057 Reinsurance payable on premiums 38,387 317 Payments outstanding 1,971 2,116 Accounts payable and accrued expenses 81,725 75,284 Operating lease liability 105 776 Other liabilities 1,111 1,159 Notes payable, net 148,771 148,688 Liabilities held for disposal — — Total Liabilities $ 873,319 $ 891,618 Commitments and Contingencies (Note 12) Stockholders' Equity: Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding $ — $ — Common stock, $0.0001 par value; 100,000,000 shares authorized; 48,011,548 and 46,989,089 issued, respectively; 47,799,465 and 46,777,006 outstanding, respectively 5 5 Additional paid-in capital 435,543 423,717 Treasury shares, at cost: 212,083 sha

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