American Coastal Insurance Corporation

Greetings, and welcome to American Coastal's third quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Karen Daly, Vice President, the Equity Group, and American Coastal's IR Representative. Please go ahead.

Thank you, Brock, and good afternoon, everyone. American Coastal Insurance Corporation has also made this broadcast available on its website at www.amcoastal.com. A replay will be available for approximately 30 days following the call. Additionally, you can find copies of the latest earnings release and presentation in the investor section of the company's website. Speaking today will be Chairman of the Board and Chief Executive Officer, R. Daniel Pede, President, Bennett Bradford Martz, and Chief Financial Officer, Svetlana Castle. On behalf of the company, I'd like to note that statements made during this call that are not historical facts are forward-looking statements. The company believes these statements are based on reasonable estimates, assumptions, and plans. If the estimates, assumptions, or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those expressed in or implied by the forward-looking statement. Factors that could cause actual results to differ materially may be found in the company's filings with the U.S. Securities and Exchange Commission. In the risk factor section of their most recent annual report on Form 10-K, and subsequent quarterly reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made and except as required by applicable law, the company undertakes no obligation to update or revise any forward-looking statement. With that, it's my pleasure to turn the call over to Mr. Daniel Pede. Dan, you may begin.

Thank you, Karen. The third quarter of 2024 saw the emergence of the active Atlantic hurricane season that was predicted starting with hurricanes Debbie and Helene. Then just after the third quarter ended, Hurricane Milton made landfall in central Florida, impacting millions of Floridians, including Am Coastal staff. In preparation for Hurricane Milton, American Coastal activated its business continuity plan, and I'm pleased to report that our operations continued seamlessly. meaning there were no disruptions to policyholders and we were prepared to immediately respond to claims. Significant cleanup and restoration efforts continue, and American Coastal is proud to have supported relief efforts through monetary donations and paid time off for employees who volunteered. As we previously announced, we estimate that we will retain approximately $3.8 million in after-tax losses stemming from Debbie and Helene, and 16.2 million in after-tax losses retained in Milton in the fourth quarter. This compares favorably against our peers and enables a strong underwriting profit in the third quarter. Furthermore, American Coastal has an exceptional and steady underlying combined ratio, along with the significantly increased total revenue of 82.1 million in the third quarter. This stems from favorable reinsurance pricing as well as the reduction of the quota share from 40% to 20%. We expect a new non-cap margin run rate as measured by the underlying combined ratio as well as the strong revenue growth to continue in future quarters. Finally, I'm pleased to announce that American Coastal successfully participated in its first ever takeout from citizens. The takeout added policies to our condo book and signaled the launch of a new apartment program. We are excited for the future and pleased that you are here to learn more about American Coastal. With that, I will turn the call over to Brad Martz, President of ACIC.