American Coastal Insurance Corporation

Greetings and welcome to the American Coastal Insurance Corporation's fourth quarter 2025 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 will be placed in the question queue at any time by pressing star 1. As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to your host, Jeremy Hellman, Vice President at the Equity Group, and American Coastal's Investor Relations Representative. Please go ahead, Jeremy.

Thank you, Operator, and good afternoon, everyone. American Coastal Insurance Corporation is broadcast available on its website at www.amcoastal.com. 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-Martz and Chief Financial Officer Svetlana Castle. On behalf of the company, I'd like to note that statements made in 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 underline the forward-looking statements proven accurate or above the risk or under-userized actual results could differ materially from those expressed or applied by the forward-looking statements. 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 the 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 accept as required by applicable law. The company undertakes no obligation to update or revise any forward-looking statements. With that, it is my pleasure to turn it over to Brad Martz. Brad?

Thank you, Jeremy, and welcome, everyone. During the fourth quarter of 2025, American Coastal continued to demonstrate that we are a unique, high-performing specialty underwriter producing strong returns on capital that is very well positioned for the future. A lack of hurricane activity in the current period helped drive solid earnings growth compared to the same period last year that was impacted by catastrophe losses yet remained profitable. Our full-year net income of $106.8 million exceeded our full-year guidance at the beginning of 2025, which was $70 to $90 million. And even with a major hurricane loss, ACIC would have landed above the midpoint of our guidance. Over the last three years, ACIC has produced over $336 million of pre-tax profits and returned over $60 million to shareholders through special dividends. I think it's fair to say our strategic transformation has been nothing short of spectacular. Yet, I believe we're capable of more. As forecasted last quarter, premiums written in the current period rebounded nicely, increasing approximately 59% compared to the third quarter of 2025, but declined 19% year over year due primarily to rate decreases. Rates are falling in our business, due in large part to Florida's legislative reforms that are clearly working as evidenced by reduced reinsurance costs and lower losses incurred. For the full year, our net premiums earned of 306.8 million were also above the midpoint of our 2025 guidance, which was 290 to 320 million. Total revenues increased year-over-year despite a much more competitive environment without sacrificing underwriting discipline. With softer market conditions persisting in commercial property insurance, we expect premium production to remain challenging as our risk appetite is highly correlated to modeled expected returns on capital. Last month, we revealed plans to improve the company's business profile by introducing new revenue and earnings growth pathways in the E&S market. While we are not necessarily looking to grow commercial property exposure in the short term, we do believe there are pockets of opportunity to underwrite new profitable commercial residential property insurance business inside and outside of Florida where we can leverage American Coastal's technical expertise and competitive advantages. Our ENS ambitions and investments are more about putting the company in the best possible position to succeed over time rather than chasing growth in this part of the property cycle. With that, I'd like to now turn it over to our Chief Financial Officer, Lana Castle, for more specifics on our fourth quarter and full year results.