AMERICAN COASTAL INSURANCE Corp Q3 FY2024 earnings call

• The third quarter saw the active Atlantic hurricane season with Hurricanes Debby, Helene, and Milton. Operations continued seamlessly during Milton with no disruptions to policyholders and preparedness for claims. - Supported relief efforts through donations and employee volunteer time. - Estimated after-tax losses from Debby ($3.8M) and Helene ($3.2M), and $16.2M in after-tax losses from Milton in Q4. - Total revenue of $82.1M in Q3 due to favorable reinsurance pricing and reduction of quota share from 40% to 20%. - Successfully participated in first takeout from Citizens, adding policies to condo book and launching new apartment program. - Strong underlying combined ratio and steady financials.

In the third quarter of 2024, American Coastal had total revenue of $82.1 million. After-tax losses from Hurricane Debby were estimated at approximately $3.8 million, from Hurricane Helene at about $3.2 million, and from Hurricane Milton in the fourth quarter at $16.2 million. Gross premium earned grew to $160.2 million, with a combined ratio of 57.7% which is below the target of 65% and a decrease from 62.7% in the same period last year. Net income was $28.1 million, core income was $26.9 million (an increase of $11.4 million year-over-year), cash and investments grew 83.1% to $571.1 million, and stockholders’ equity increased 53.8% to $259.6 million.

• Expect new non-cat margin run rate and strong revenue growth to continue in future quarters. - Estimated $3.8M after-tax losses from Debby and Helene, $16.2M in Q4 from Milton. - Net retention would drop to $10.3M net of reinsurance and income tax benefit for future named windstorms. - Expect to remain profitable in Q4 and post strong result for full year 2024.

• Factors causing actual results to differ materially from forward-looking statements include inaccurate estimates, assumptions, or new risks/uncertainties. - Risks detailed in company’s filings with SEC in risk factor sections of 10-K and subsequent 10-Q.

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