American Coastal Insurance Corporation

Greetings and welcome to the American Coastal Insurance Corporation second quarter earnings conference call and webcast. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation, and you may be placed into question queue at any time by pressing star 1 on your telephone keypad. If anyone should require operator assistance, please press star 0. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Karen Daly with the Equity Group. Please go ahead, Karen.

Thank you, Kevin, 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 President and Chief Executive Officer Bennett Bradford Marth, 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. However, 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 in 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 statements. With that, it's my pleasure to turn the call over to Brad Martz. Brad?

Thank you and welcome, everyone. I'm pleased to report American Coastal continued to deliver exceptional results during the second quarter by growing revenues 26% year-over-year, growing pre-tax earnings 51% year-over-year, and producing a core return on equity of approximately 42%. In our view, the Florida market for admitted commercial residential property insurance remains relatively healthy, but property insurance rates continue to fall in most territories during the second quarter, so we're monitoring all terms and conditions very carefully. In southeast Florida in particular, where much of our exposure is located, the market is generally firmer than the rest of the state and is even expected to improve in some instances due to ongoing capacity and underwriting constraints. Our risk portfolio continues to perform in line with most key underwriting metrics. These metrics, along with improvements in our balance sheet strength and our catastrophe reinsurance program, are a big reason why we have grown our policies in force roughly 10% since year end. Year to date, total insured value increased approximately 18%, 69.8 billion as of June 30th. However, continuous portfolio optimization and improvements in our overall spread of risk have resulted in modeled expected losses growing at a much slower rate. During the quarter, we completed our core catastrophe reinsurance program renewal effective June 1st, 2025. Page 10 of our earnings presentation provides the final structure and highlights of which are very similar to the projected structure we previewed last period. with a risk-adjusted cost decrease of approximately 12.4%. Seeded premiums are subject to potential adjustment based on actual modeled average annual loss versus our projected AAL at September 30th, so our risk appetite for adding new exposures is likely to be somewhat limited during the third quarter. We expect to resume growth in the fourth quarter towards the end of hurricane season, assuming the underwriting environment is favorable to do so. On July 21st, we also announced that the Coral Bond Rating Agency had upgraded American Coastal Insurance Corporation to BBB-, and moved all of our outlooks from stable to positive. Our team has worked hard to regain investment grade status, and since it reduces the interest rate on our senior notes by 100 basis points, and clearly conveys that our company is headed the right direction, we were very happy to see that. I'll now turn it over to our CFO, Lana Castle, for more specifics on our second quarter results.