American Coastal Insurance Corporation

Hello everyone, thank you for joining us and welcome to the American Coastal Insurance Corporation Q3 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Bennett Bradford Martz, President and CEO. Brad, please go ahead.

Thank you. Before beginning our commentary, I must first ask everyone to please see page two of our earnings presentation for more information regarding forward-looking statements. During the third quarter of 2026, American Coastal continued to maintain its market leadership position in Florida commercial residential property insurance, evidenced by one, strong account retention near 90%, two, policy and force growth of roughly 7% year-to-date, three, A 3.2% increase in gross premiums written during the current quarter compared to the same period a year ago, despite downward pressure on average account rates. And finally, but most importantly, delivering a combined ratio of 64.7%, which fueled a core return on equity of over 24%. While our core business continues to produce great results, I'm very excited about how American Coastal's business profile is evolving. During the quarter, we announced our new E&S carrier, Aces Specialty, was formally licensed, and it will be the cornerstone of controlling our E&S growth strategy over the long term. In the near term, we remain on track to formally produce and underwrite our first new E&S property insurance policies on or about the end of the 2026 hurricane season, utilizing one or more third-party carriers who have already who already have the financial rating and licenses needed to commence this important strategic initiative. Our MGA, Skyway Underwriters, already has several submissions in the pipeline. We have cleared and quoted many of these, so it's reasonable to expect we will bind some new business in December. Given the challenges with soft market conditions in commercial property insurance, Our strategy is to remain very selective and disciplined in both the admitted and the non-admitted commercial property markets. Thus, I'm compelled to reiterate that while top line growth is nice when new business makes sense, our focus remains locked in on underwriting profitability and risk adjusted returns on capital. It's currently premature to provide any revenue or earnings guidance for 2027. Our historical process for sharing that annual forward-looking information has been to publish an investor presentation and host a call in January once we have finalized those estimates. The commercial property market remains very dynamic and competitive, with some players doing very reckless and irresponsible things to win new business. This is likely to persist into 2027, but I do expect things to moderate compared to the changes in pricing, terms, and conditions American Coastal experienced this year. ACIC will not require any additional capital to achieve our primary goal of earnings growth over time. We have made the investments required to expand our business and still have excess capital that could be returned to shareholders through a special dividend. assuming no significant catastrophe losses occur in the fourth quarter. Hurricane Isaias will have a minor impact on our fourth quarter, but it is unlikely to influence our board's consideration of declaring a special dividend later this year. I'll now turn it over to our Chief Financial Officer, Lana Castle, for more specifics on our financial results. Lana?

Thank you, Brad, and hello. I'll provide the financial update, but encourage everyone to review the company's press release, earnings and investor presentations, and form 10-Q for more information regarding our performance. As reflected on page 7 of the earnings presentation, American Coastal demonstrated another strong quarter with an income of $19.4 million. Thank you very much. As shown on page 15 of our presentation, revenues decreased 19.7 million. Expenses decreased 4 million in the current year, driven by favorable prior year development and low operating expenses, quarter over quarter. Page 16 shows balance sheet highlights. Cash and investments have increased 9.3% from year-end. The company's liquidity position remains strong. Stockholders' equity increased 38.1 million, or 12%. Book value per share is $7.52, a 15.5% increase from year-end 2025. The company is well-positioned to navigate the shifting market and capitalize on growth opportunities. This concludes our prepared remarks. We'll now open the floor for questions. Thank you.