8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): May 9, 2024

American Coastal Insurance Corporation
(Exact name of registrant as specified in its charter)
Delaware		001-35761		75-3241967
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)
800 2nd Avenue S.				33701
Saint Petersburg,	FL
(Address of principal executive offices)				(Zip Code)
		(727)	633-0851
		(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, $0.0001 par value per share	ACIC	Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On May 9, 2024, American Coastal Insurance Corporation (the Company, we, our) issued a press release relating to our earnings for the first quarter ended March 31, 2024 (the Earnings Release). We have attached a copy of the Earnings Release as Exhibit 99.1.

Item 7.01: Regulation FD Disclosure.

The executive officers of the Company intend to use the materials filed herewith, in whole or in part, in one or more meetings with investors and analysts, beginning on May 9, 2024. A copy of the Earnings presentation is attached hereto as Exhibit 99.2.

The information furnished under this Item 2.02 and 7.01, including Exhibit 99.1 and Exhibit 99.2 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference to such filing.

Item 9.01. Financial Statements and Exhibits

Exhibit No.	Description
99.1	Earnings release issued by the Company on May 9, 2024
99.2	Earnings presentation issued by the Company on May 9, 2024
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized.

		AMERICAN COASTAL INSURANCE CORPORATION
May 9, 2024	By:	/s/ B. Bradford Martz
		B. Bradford Martz, President

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

AMERICAN COASTAL INSURANCE CORPORATION REPORTS FINANCIAL RESULTS

FOR ITS FIRST QUARTER ENDED MARCH 31, 2024

Company to Host Quarterly Conference Call at 5:00 P.M. ET on May 9, 2024

The information in this press release should be read in conjunction with an earnings presentation that is available on the Company's website at investors.amcoastal.com/Presentations.

St. Petersburg, FL - May 9, 2024:American Coastal Insurance Corporation (Nasdaq: ACIC)("ACIC" or "the Company"), a property and casualty insurance holding company, today reported its financial results for the first quarter ended March 31, 2024.

($ in thousands, except for per share data)	Three Months Ended
	March 31,
	2024		2023		Change
Gross premiums written	$	197,458	$	187,123	5.5	%
Gross premiums earned	$	168,822	$	144,476	16.9	%
Net premiums earned	$	68,730	$	87,324	(21.3)	%
Total revenue	$	73,204	$	90,320	(19.0)	%
Income from continuing operations, net of tax	$	23,599	$	30,367	(22.3)	%
Income from discontinued operations, net of tax	$	—	$	236,913	NM
Consolidated net income	$	23,599	$	267,280	(91.2)	%
Net income available to ACIC stockholders per diluted share
Continuing Operations	$	0.48	$	0.70	(31.4)	%
Discontinued Operations	—		5.44		NM
Total	$	0.48	$	6.14	(92.2)	%
Reconciliation of net income to core income:
Plus: Non-cash amortization of intangible assets and goodwill impairment	$	812	$	812	—	%
Less: Income from discontinued operations, net of tax	$	—	$	236,913	NM
Less: Net realized losses on investment portfolio	$	—	$	(83)	NM
Less: Unrealized gains (losses) on equity securities	$	(50)	$	474	NM
Less: Net tax impact (1)	$	181	$	88	NM
Core income(2)	$	24,280	$	30,700	(20.9)	%
Core income per diluted share (2)	$	0.50	$	0.70	(28.6)	%
Book value per share	$	4.27	$	2.08	NM

NM = Not Meaningful

(1) In order to reconcile net income to the core income measures, the Company included the tax impact of all adjustments using the 21% federal corporate tax rate.

(2) Core income and core income per diluted share, both of which are measures that are not based on GAAP, are reconciled above to net income and net income per diluted share, respectively, the most directly comparable GAAP measures. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.

Comments from Chief Executive Officer, Dan Peed: “I am happy to report that we had a strong first quarter, driven by expanding net earned premiums, coupled with a very low underlying combined ratio. American Coastal’s earnings reflect our ability to adapt and unlock value in an evolving insurance landscape, and underscores our commitment to delivering value to policy holders and shareholders. First quarter net income continued trending upward to $23.6 million, or up 38% from the fourth quarter of 2023. This growth highlights American Coastal's outperformance in key operational metrics and reaffirms our position as a market leader in our specialty business.”

1

Exhibit 99.1

Return on Equity and Core Return on Equity

The calculations of the Company's return on equity and core return on equity are shown below.

($ in thousands)	Three Months Ended
	March 31,
	2024			2023
Income from continuing operations, net of tax	$	23,599		$	30,367
Return on equity based on GAAP income from continuing operations, net of tax (1)	67.7		%	195.4		%
Income from discontinued operations, net of tax	$	—		$	236,913
Return on equity based on GAAP income from discontinued operations, net of tax (1)	—		%	NM
Consolidated net income attributable to ACIC	$	23,599		$	267,280
Return on equity based on GAAP net income (1)	67.7		%	NM
Core income	$	24,280		$	30,700
Core return on equity (1)(2)	69.7		%	197.6		%

(1) Return on equity for the three months ended March 31, 2024 and 2023 is calculated on an annualized basis by dividing the net income or core income for the period by the average stockholders' equity for the trailing twelve months.

(2) Core return on equity, a measure that is not based on GAAP, is calculated based on core income, which is reconciled on the first page of this press release to net income, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section below.

2

Exhibit 99.1

Combined Ratio and Underlying Ratio

The calculations of the Company's combined ratio and underlying combined ratio on a consolidated basis and attributable to both the Company's personal lines and commercial lines operating segments are shown below.

($ in thousands)	Three Months Ended
	March 31,
	2024		2023		Change
Consolidated
Loss ratio, net(1)	23.1	%	18.9	%	4.2	pts
Expense ratio, net(2)	35.2	%	43.4	%	(8.2)	pts
Combined ratio (CR)(3)	58.3	%	62.3	%	(4.0)	pts
Effect of current year catastrophe losses on CR	1.1	%	3.0	%	(1.9)	pts
Effect of prior year favorable development on CR	(0.6)	%	(3.6)	%	3.0	pts
Underlying combined ratio(4)	57.8	%	63.0	%	(5.2)	pts
Personal Lines
Loss ratio, net(1)	71.4	%	29.0	%	42.4	pts
Expense ratio, net(2)	36.7	%	111.5	%	(74.8)	pts
Combined ratio (CR)(3)	108.1	%	140.5	%	(32.4)	pts
Effect of current year catastrophe losses on CR	8.9	%	6.0	%	2.9	pts
Effect of prior year favorable development on CR	(6.2)	%	(4.5)	%	(1.7)	pts
Underlying combined ratio(4)	105.4	%	139.0	%	(33.6)	pts
Commercial Lines
Loss ratio, net(1)	18.4	%	17.7	%	0.7	pts
Expense ratio, net(2)	34.6	%	35.6	%	(1.0)	pts
Combined ratio (CR)(3)	53.0	%	53.3	%	(0.3)	pts
Effect of current year catastrophe losses on CR	0.3	%	2.7	%	(2.4)	pts
Effect of prior year favorable development on CR	(0.1)	%	(3.5)	%	3.4	pts
Underlying combined ratio(4)	52.8	%	54.1	%	(1.3)	pts

(1) Loss ratio, net is calculated as losses and loss adjustment expenses (LAE), net of losses ceded to reinsurers, relative to net premiums earned.

(2) Expense ratio, net is calculated as the sum of all operating expenses less interest expense relative to net premiums earned.

(3) Combined ratio is the sum of the loss ratio, net and expense ratio, net.

(4) Underlying combined ratio, a measure that is not based on GAAP, is reconciled above to the combined ratio, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.

3

Exhibit 99.1

Combined Ratio Analysis

The calculations of the Company's loss ratios and underlying loss ratios are shown below.

($ in thousands)	Three Months Ended
	March 31,
	2024			2023			Change
Loss and LAE	$	15,906		$	16,412		$	(506)
% of Gross earned premiums	9.4		%	11.5		%	(2.1)		pts
% of Net earned premiums	23.1		%	18.9		%	4.2		pts
Less:
Current year catastrophe losses	$	754		$	2,615		$	(1,861)
Prior year reserve favorable development	(432)			(3,165)			2,733
Underlying loss and LAE (1)	$	15,584		$	16,962		$	(1,378)
% of Gross earned premiums	9.2		%	11.7		%	(2.5)		pts
% of Net earned premiums	22.7		%	19.4		%	3.3		pts

(1) Underlying loss and LAE is a non-GAAP financial measure and is reconciled above to loss and LAE, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.

The calculations of the Company's expense ratios are shown below.

($ in thousands)	Three Months Ended
	March 31,
	2024			2023			Change
Policy acquisition costs	$	11,793		$	26,972		$	(15,179)
Operating and underwriting	2,809			2,168			641
General and administrative	9,573			8,793			780
Total Operating Expenses	$	24,175		$	37,933		$	(13,758)
% of Gross earned premiums	14.3		%	26.3		%	(12.0)		pts
% of Net earned premiums	35.2		%	43.4		%	(8.2)		pts

4

Exhibit 99.1

Quarter to Date Financial Results

Net income attributable to the Company for the first quarter ended March 31, 2024, was $23.6 million, or $0.48 per diluted share, compared to net income of $267.3 million, or $6.14 per diluted share, for the first quarter ended March 31, 2023. Drivers of net income during 2024 include increased gross premiums earned and decreased expenses, driven by decreases in policy acquisition costs and losses and LAE incurred, partially offset by lower revenues as the result of higher ceded premiums earned. During the first quarter of 2024, none of the Company's net income was attributable to discontinued operations, compared to $236.9 million of net income attributable to discontinued operations in the first quarter of 2023.

The Company's total gross written premium increased by $10.3 million, or 5.5%, to $197.5 million for the three months ended March 31, 2024, from $187.1 million for the three months ended March 31, 2023. This increase was driven primarily by increased premiums written in Florida as the Company continues to focus on its commercial book of business. In addition, the Company saw an increase in written premiums across the personal lines business, due primarily to rate increases. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums by state and gross written premium by line of business are shown in the table below.

($ in thousands)	Three Months Ended March 31,
	2024		2023		Change $		Change %
Direct Written and Assumed Premium by State (1)
Florida	$	184,601	$	176,611	$	7,990	4.5	%
New York	12,857		10,482		2,375		22.7
Texas	—		(9)		9		(100.0)
Total direct written premium by state	197,458		187,084		10,374		5.5
Assumed premium (2)	—		39		(39)		(100.0)
Total gross written premium by state	$	197,458	$	187,123	$	10,335	5.5	%
Gross Written Premium by Line of Business
Commercial property	$	184,601	$	176,641	$	7,960	4.5	%
Personal property	12,857		10,482		2,375		22.7
Total gross written premium by line of business	$	197,458	$	187,123	$	10,335	5.5	%

(1) The Company ceased writing in Texas as of May 31, 2022.

(2) Assumed premium written for 2023 and 2024 primarily included commercial property business assumed from unaffiliated insurers.

Loss and LAE decreased by $0.5 million, or 3.1%, to $15.9 million for the three months ended March 31, 2024, from $16.4 million for the three months ended March 31, 2023. Loss and LAE expense as a percentage of net earned premiums increased 4.2 points to 23.1% for the three months ended March 31, 2024, compared to 18.9% for the three months ended March 31, 2023. Excluding catastrophe losses and reserve development, the Company's gross underlying loss and LAE ratio for the three months ended March 31, 2024, would have been 9.2%, a decrease of 2.5 points from 11.7% for the three months ended March 31, 2023.

Policy acquisition costs decreased by $15.2 million, or 56.3%, to $11.8 million for the three months ended March 31, 2024, from $27.0 million for the three months ended March 31, 2023, primarily due to an increase in ceding commission income due to changes in the terms of the Company's quota share reinsurance agreements effective June 1, 2023. This was partially offset by increased external management fees and premium taxes related to the Company's increased commercial lines gross written premium.

Operating and underwriting expenses increased by $0.6 million, or 27.3%, to $2.8 million for the three months ended March 31, 2024, from $2.2 million for the three months ended March 31, 2023, driven by increased underwriting costs quarter-over-quarter. This was partially offset by decreased overhead costs such as rent, printing, postage and utilities as a result of cost saving initiatives by the Company.

General and administrative expenses increased by $0.8 million, or 9.1%, to $9.6 million for the three months ended March 31, 2024, from $8.8 million for the three months ended March 31, 2023, driven by increased external legal and audit fees.

5

Exhibit 99.1

Commercial Lines Operating Segment Highlights

Pre-tax earnings attributable to the Company's commercial lines operating segment totaled $32.8 million for the quarter ended March 31, 2024, compared to $38.9 million for the quarter ended March 31, 2023. Drivers of the quarter-over-quarter decrease in pre-tax earnings included increased ceded premiums driven by the changes in the Company's quota share contracts effective June 1, 2023, increased general and administrative expenses driven by increased allocated overhead expenses such as salaries, legal and auditing fees, and increased allocated operating expenses. This was partially offset by increased gross premiums earned quarter-over-quarter as the Company continues to focus on its specialty commercial lines underwriting.

Quarter-over-quarter, policy acquisition costs decreased $13.0 million driven by an increase in ceding commission income due to changes in the terms of the Company's quota share reinsurance agreements during the second half of 2023. The Company saw a decrease of $2.3 million in losses and LAE incurred due to decreased non-catastrophe and catastrophe losses quarter-over-quarter, partially offset by a decrease in favorable development on prior year losses (favorable development was experienced for both quarters).

Personal Lines Operating Segment Highlights

Pre-tax income attributable to the Company's personal lines operating segment totaled $1.1 million for the quarter ended March 31, 2024, compared to a pre-tax net loss of $1.9 million for the quarter ended March 31, 2023. This increase in pre-tax earnings can be attributed to decreased expenses of $5.6 million, driven by decreased general and administrative expenses of $3.8 million, driven by decreased allocated overhead expenses such as salary expenses. Policy acquisition costs also decreased $2.2 million, driven by decreased agent commission expense quarter-over-quarter. Finally, operating expenses decreased $1.4 million, driven by a reduction in the Company's overhead spending and decreased allocation of investments in technology.

These decreased expenses were partially offset by decreased net premiums earned of $2.6 million, driven by increased gross unearned premiums and a $1.8 million increase in losses and LAE incurred, driven by increased non-catastrophe losses quarter-over-quarter.

Reinsurance Costs as a Percentage of Gross Earned Premium

Reinsurance costs as a percentage of gross earned premium in the first quarter of 2024 and 2023 were as follows:

	2024		2023
Non-at-Risk	(0.3)	%	(0.5)	%
Quota Share	(29.8)	%	(6.1)	%
All Other	(29.2)	%	(33.0)	%
Total Ceding Ratio	(59.3)	%	(39.6)	%

Ceded premiums earned related to the Company's catastrophe excess of loss contracts decreased, driven by the need for less coverage for the 2023-2024 treaty year due to the reduction in the Company's geographic footprint and exposure, as well as the utilization of quota share reinsurance coverage for the Company's commercial lines operating segment, partially offset by rate increases on the coverage experienced in the current year. The utilization of quota share reinsurance coverage, as described, increased the Company's ceding ratio overall.

Reinsurance costs as a percentage of gross earned premium in the first quarter of 2024 and 2023 for the Company's personal lines and commercial lines operating segments were as follows:

	Personal				Commercial
	2024		2023		2024		2023
Non-at-Risk	(2.7)	%	(1.6)	%	(0.2)	%	(0.4)	%
Quota Share	—	%	—	%	(31.5)	%	(6.7)	%
All Other	(26.1)	%	(28.8)	%	(29.2)	%	(33.3)	%
Total Ceding Ratio	(28.8)	%	(30.4)	%	(60.9)	%	(40.4)	%

6

Exhibit 99.1

Investment Portfolio Highlights

The Company's cash, restricted cash and investment holdings increased from $369.0 million at December 31, 2023 to $504.5 million at March 31, 2024. The Company's cash and investment holdings consist of investments in U.S. government and agency securities, corporate debt and investment grade money market instruments. Fixed maturities represented approximately 89.7% of total investments at March 31, 2024 compared to 91.6% of total investments at December 31, 2023. The Company's fixed maturity investments had a modified duration of 3.2 years at March 31, 2024, compared to 3.4 years at December 31, 2023.

Book Value Analysis

Book value per common share increased 18.3% from $3.61 at December 31, 2023, to $4.27 at March 31, 2024. Underlying book value per common share increased 16.5% from $3.97 at December 31, 2023 to $4.63 at March 31, 2024. An increase in the Company's retained earnings as the result of net income in the first three months of 2024, drove the increase in the Company's book value per share. As shown in the table below, removing the effect of AOCI increases the Company's book value per common share, as the Company has experienced unfavorable capital market conditions resulting in an accumulated other comprehensive loss position at March 31, 2024.

($ in thousands, except for share and per share data)	March 31, 2024		December 31, 2023
Book Value per Share
Numerator:
Common stockholders' equity	$	203,992	$	168,765
Denominator:
Total Shares Outstanding	47,799,465		46,777,006
Book Value Per Common Share	$	4.27	$	3.61
Book Value per Share, Excluding the Impact of Accumulated Other Comprehensive Income (AOCI)
Numerator:
Common stockholders' equity	$	203,992	$	168,765
Less: Accumulated other comprehensive loss	(17,335)		(17,137)
Stockholders' Equity, excluding AOCI	$	221,327	$	185,902
Denominator:
Total Shares Outstanding	47,799,465		46,777,006
Underlying Book Value Per Common Share(1)	$	4.63	$	3.97

(1) Underlying book value per common share is a non-GAAP financial measure and is reconciled above to book value per common share, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section below.

7

Exhibit 99.1

Conference Call Details

Date and Time:    May 9, 2024 - 5:00 P.M. ET

Participant Dial-In:    (United States): 877-445-9755

    (International): 201-493-6744

Webcast:    To listen to the live webcast, please go to https://investors.amcoastal.com and click on the conference call link at the top of the page or go to: https://event.webcasts.com/starthere.jsp?ei=1668133&tp_key=4d1ed0c96d

An archive of the webcast will be available for a limited period of time thereafter.

Presentation:     The information in this press release should be read in conjunction with an earnings presentation that is available on the Company's website at investors.amcoastal.com/Presentations.

About American Coastal Insurance Corporation

American Coastal Insurance Corporation (amcoastal.com) is the holding company of the insurance carrier, American Coastal Insurance Company, which was founded in 2007 for the purpose of insuring Condominium and Homeowner Association properties, and apartments in the state of Florida. American Coastal Insurance Company has an exclusive partnership for distribution of Condominium Association properties in the state of Florida with AmRisc Group (amriscgroup.com), one of the largest Managing General Agents in the country specializing in hurricane-exposed properties. American Coastal Insurance Company has earned a Financial Stability Rating of ‘A, Exceptional’ from Demotech.

American Coastal Insurance Corporation’s portfolio of investments also includes Interboro Insurance Company, a New York domiciled personal lines carrier founded in 1914.

Contact Information:

Alexander Baty

Vice President, Finance & Investor Relations, American Coastal Insurance Corp.

investorrelations@amcoastal.com

(727) 425-8076

Karin Daly

Investor Relations, Vice President, The Equity Group

kdaly@equityny.com

(212) 836-9623

8

Exhibit 99.1

Definitions of Non-GAAP Measures

The Company believes that investors' understanding of ACIC's performance is enhanced by the Company's disclosure of the following non-GAAP measures. The Company's methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Net income (loss) excluding the effects of amortization of intangible assets, income (loss) from discontinued operations, realized gains (losses) and unrealized gains (losses) on equity securities, net of tax (core income (loss)) is a non-GAAP measure that is computed by adding amortization, net of tax, to net income (loss) and subtracting income (loss) from discontinued operations, net of tax, realized gains (losses) on the Company's investment portfolio, net of tax, and unrealized gains (losses) on the Company's equity securities, net of tax, from net income (loss). Amortization expense is related to the amortization of intangible assets acquired, including goodwill, through mergers and, therefore, the expense does not arise through normal operations. Investment portfolio gains (losses) and unrealized equity security gains (losses) vary independent of the Company's operations. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is net income (loss). The core income (loss) measure should not be considered a substitute for net income (loss) and does not reflect the overall profitability of the Company's business.

Core return on equity is a non-GAAP ratio calculated using non-GAAP measures. It is calculated by dividing the core income (loss) for the period by the average stockholders’ equity for the trailing twelve months (or one quarter of such average, in the case of quarterly periods). Core income (loss) is an after-tax non-GAAP measure that is calculated by excluding from net income (loss) the effect of income (loss) from discontinued operations, net of tax, non-cash amortization of intangible assets, including goodwill, unrealized gains or losses on the Company's equity security investments and net realized gains or losses on the Company's investment portfolio. In the opinion of the Company’s management, core income (loss), core income (loss) per share and core return on equity are meaningful indicators to investors of the Company's underwriting and operating results, since the excluded items are not necessarily indicative of operating trends. Internally, the Company’s management uses core income (loss), core income (loss) per share and core return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis. The most directly comparable GAAP measure is return on equity. The core return on equity measure should not be considered a substitute for return on equity and does not reflect the overall profitability of the Company's business.

Combined ratio excluding the effects of current year catastrophe losses and prior year reserve development (underlying combined ratio) is a non-GAAP measure, that is computed by subtracting the effect of current year catastrophe losses and prior year development from the combined ratio. The Company believes that this ratio is useful to investors, and it is used by management to highlight the trends in the Company's business that may be obscured by current year catastrophe losses and prior year development. Current year catastrophe losses cause the Company's loss trends to vary significantly between periods as a result of their frequency of occurrence and severity and can have a significant impact on the combined ratio. Prior year development is caused by unexpected loss development on historical reserves. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of the Company's business.

Net loss and LAE excluding the effects of current year catastrophe losses and prior year reserve development (underlying loss and LAE) is a non-GAAP measure that is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and LAE. The Company uses underlying loss and LAE figures to analyze the Company's loss trends that may be impacted by current year catastrophe losses and prior year development on the Company's reserves. As discussed previously, these two items can have a significant impact on the Company's loss trends in a given period. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is net loss and LAE. The underlying loss and LAE measure should not be considered a substitute for net loss and LAE and does not reflect the overall profitability of the Company's business.

Book value per common share, excluding the impact of accumulated other comprehensive loss (underlying book value per common share), is a non-GAAP measure that is computed by dividing common stockholders' equity after excluding accumulated other comprehensive income (loss), by total common shares outstanding plus

9

Exhibit 99.1

dilutive potential common shares outstanding. The Company uses the trend in book value per common share, excluding the impact of accumulated other comprehensive income (loss), in conjunction with book value per common share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes this non-GAAP measure is useful to investors because it eliminates the effect of interest rates that can fluctuate significantly from period to period and are generally driven by economic and financial factors that are not influenced by management. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of accumulated other comprehensive income (loss), should not be considered a substitute for book value per common share and does not reflect the recorded net worth of the Company's business.

Discontinued Operations

On February 27, 2023, the Florida Department of Financial Services was appointed as receiver of the Company's former subsidiary, United Property & Casualty Insurance Company ("UPC"). As such, prior year financial results and Consolidated Balance Sheet components have been reclassified to reflect continuing and discontinued operations appropriately.

Forward-Looking Statements

Statements made in this press release, or on the conference call identified above, and otherwise, 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 statements. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words such as “may,” “will,” “expect,” "endeavor," "project," “believe,” "plan," “anticipate,” “intend,” “could,” “would,” “estimate” or “continue” or the negative variations thereof or comparable terminology. 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 Factors” section in the Company's 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.

10

Exhibit 99.1

Consolidated Statements of Comprehensive Income

In thousands, except share and per share amounts

	Three Months Ended
	March 31,
	2024		2023
REVENUE:
Gross premiums written	$	197,458	$	187,123
Change in gross unearned premiums	(28,636)		(42,647)
Gross premiums earned	168,822		144,476
Ceded premiums earned	(100,092)		(57,152)
Net premiums earned	68,730		87,324
Net investment income	4,508		2,589
Net realized investment losses	—		(83)
Net unrealized gains (losses) on equity securities	(50)		474
Other revenue	16		16
Total revenues	$	73,204	$	90,320
EXPENSES:
Losses and loss adjustment expenses	15,906		16,412
Policy acquisition costs	11,793		26,972
Operating expenses	2,809		2,168
General and administrative expenses	9,573		8,793
Interest expense	2,719		2,719
Total expenses	42,800		57,064
Income before other income	30,404		33,256
Other income	810		588
Income before income taxes	31,214		33,844
Provision for income taxes	7,615		3,477
Income from continuing operations, net of tax	$	23,599	$	30,367
Income from discontinued operations, net of tax	—		236,913
Net income	$	23,599	$	267,280
OTHER COMPREHENSIVE INCOME (LOSS):
Change in net unrealized gains (losses) on investments	(198)		4,231
Reclassification adjustment for net realized investment losses	—		83
Income tax benefit related to items of other comprehensive income (loss)	—		—
Total comprehensive income	$	23,401	$	271,594
Weighted average shares outstanding
Basic	47,323,356		43,124,825
Diluted	48,969,550		43,574,840
Earnings available to ACIC common stockholders per share
Basic
Continuing operations	$	0.50	$	0.70
Discontinued operations	—		5.49
Total	$	0.50	$	6.19
Diluted
Continuing operations	$	0.48	$	0.70
Discontinued operations	—		5.44
Total	$	0.48	$	6.14
Dividends declared per share	$	—	$	—

11

Exhibit 99.1

Consolidated Balance Sheets

In thousands, except share amounts

	March 31, 2024		December 31, 2023
ASSETS
Investments, at fair value:
Fixed maturities, available-for-sale	$	178,316	$	180,703
Equity securities	6,214		—
Other investments	14,217		16,487
Total investments	$	198,747	$	197,190
Cash and cash equivalents	285,400		153,762
Restricted cash	20,309		18,070
Accrued investment income	2,534		2,104
Property and equipment, net	10,351		3,658
Premiums receivable, net	53,990		47,274
Reinsurance recoverable on paid and unpaid losses	257,090		341,102
Ceded unearned premiums	137,760		159,147
Goodwill	59,476		59,476
Deferred policy acquisition costs	27,290		25,041
Intangible assets, net	8,511		9,323
Other assets	15,853		36,141
Assets held for disposal	—		8,095
Total Assets	$	1,077,311	$	1,060,383
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses	$	279,556	$	370,221
Unearned premiums	321,693		293,057
Reinsurance payable on premiums	38,387		317
Payments outstanding	1,971		2,116
Accounts payable and accrued expenses	81,725		75,284
Operating lease liability	105		776
Other liabilities	1,111		1,159
Notes payable, net	148,771		148,688
Liabilities held for disposal	—		—
Total Liabilities	$	873,319	$	891,618
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.0001 par value; 1,000,000 authorized; none issued or outstanding	—		—
Common stock, $0.0001 par value; 100,000,000 shares authorized; 48,011,548 and 46,989,089 issued, respectively; 47,799,465 and 46,777,006 outstanding, respectively	5		5
Additional paid-in capital	435,543		423,717
Treasury shares, at cost; 212,083 shares	(431)		(431)
Accumulated other comprehensive loss	(17,335)		(17,137)
Retained earnings (deficit)	(213,790)		(237,389)
Total Stockholders' Equity	$	203,992	$	168,765
Total Liabilities and Stockholders' Equity	$	1,077,311	$	1,060,383

12

EX-99.2

1st Quarter 2024 May 9th, 2024 Earnings Presentation

2 Company Overview ACIC is a specialty underwriter of catastrophe exposed property insurance. American Coastal Insurance Corp. (Nasdaq: ACIC) is the insurance holding company for two P&C carriers: American Coastal Insurance Company (AmCoastal) and Interboro Insurance Company (IIC) ¹ along with other operating affiliates. AmCoastal has the #1 market share of commercial residential property insurance (commercial lines) in Florida with roughly 4,100 policies and $652 million of premium in-force. IIC’s homeowners & fire insurance products (personal lines) are written exclusively in New York with approximately 18,640 policies and $36 million of premium in-force. ¹ ACIC as of March 31, 2024 Total Assets: $1.08 billion Total Equity: $204 million Annualized Revenue: $293 million Employees: 70 Headquarters: St. Petersburg, FL Credit Rating: BB+ (Kroll) Specialty Commercial Property Specialty Homeowners ¹ ¹ ACIC previously disclosed its strategic intent to divest of IIC and exit personal lines.

3 Executive Summary • Q1-24 Results • Non-GAAP Core Income of $24.3m ($0.50) decreased -$6.4m (-20.9%) from $30.7m ($0.70) y/y on higher ceded earned premiums resulting from the 40% gross CAT quota share effective 6.1.2023. • Gross premiums earned grew $24.3m (+17%) to $168.8m y/y due to improving rate adequacy and valuation in all lines. • Our combined ratio of 58.3% improved 4 points from 62.3% in the same period last year. • PL combined ratio improved over 32 points y/y and earned a pre-tax profit of $1.1m • Current year net catastrophe losses of $0.8m was partially offset by $0.4m of favorable prior year reserve development. • Stockholders’ equity attributable to ACIC, increased to $204.0m or $4.27 per share and $4.63 per share excluding unrealized losses in accumulated other comprehensive income. • Other Highlights • Issued a new $200 million catastrophe bond (Armor Re II) at 10.25% (25bp below guidance & upsized from $150 million) in April 2024. • Nearing completion for the 6/1 catastrophe reinsurance renewals with firm order terms (FOTs) released on May 1, 2024. • Made significant progress on divesting Interboro Insurance Company with definitive agreements nearly complete.

4 1Q-24 Summary of Key Results Combined ratio improved 4 points, but core income declined -$6.4m ($0.20) due to reinsurance costs. $ in thousands, except per share amounts Q1-24 Q1-23 Change Net income (loss) 23,599$ 267,280$ n/m per diluted share (EPS) 0.48$ 6.14$ Reconciliation to core income (loss), net of tax: Investment gains (losses) (39)$ 309$ Amortization of intangible assets (641)$ (641)$ Gain (loss) from discontinued operations -$ 236,913$ Total adjustments (681)$ 236,581$ Core income (loss) 24,280$ 30,700$ -20.9% per diluted share (CEPS) 0.50$ 0.70$ Net loss & LAE ratio 23.1% 18.9% Net expense ratio 35.2% 43.4% Combined ratio 58.3% 62.3% (4.0) pts Less: Net current year catastrophe loss & LAE 1.1% 3.0% Less: Net (favorable) unfavorable reserve development -0.6% -3.6% Underlying combined ratio 57.8% 63.0% (5.2) pts

5 1Q-24 Operating Overview Earnings before income tax were close to last year even with the significant change in ceded premium. 40% quota share had a significant impact on net earned premiums and OPEX y/y. We expect to reduce the external quota share to 20% as of 6/1/24 which will drive revenue growth. $ in millions Q1-24 Q1-23 Change % Chg Gross Premiums Earned 168.8$ 144.5$ 24.3 16.8% Ceded Premiums Earned (100.1) (57.2) (42.9) 75.0% Net Premiums Earned 68.7 87.3 (18.6) -21.3% Investment & Other Income 4.5 2.5 2.0 80.0% Unrealized G(L) on Equities (0.0) 0.5 (0.5) -100.0% Total Revenue 73.2 90.3 (17.1) -18.9% Underlying Loss & LAE 15.6 17.0 (1.4) -8.2% Current year CAT Loss & LAE 0.8 2.6 (1.8) -69.2% Prior year development (F)/U (0.4) (3.2) 2.8 -87.5% Net Loss & LAE 15.9 16.4 (0.5) -3.0% Operating Expense 24.2 37.9 (13.8) -36.4% Interest Expense 2.7 2.7 0.0 0.0% Total Expenses 42.8 57.1 (14.3) -25.0% Other income (expense) 0.8 0.6 0.2 33.3% Earnings from continuing operations before tax 31.2$ 33.8$ (2.6)$ -7.7% Provision (benefit) for income tax 7.6 3.5 4.1 117.1% Net income from continuing operations 23.6$ 30.4$ (6.8)$ -22.4% Net Loss Ratio 23.1% 18.9% 4.2 pts Net Expense Ratio 35.2% 43.4% -8.2 pts Combined Ratio 58.3% 62.3% -4 pts Less: Current year catastrophe loss & LAE 1.1% 3.0% -1.9 pts Less: Prior year reserve development (F)/U -0.6% -3.6% 3 pts Underlying Combined Ratio 57.8% 63.0% -5.2 pts

6 1Q-24 Segment Results Personal lines profitability was a welcome sight in Q1 driven by lower policy acquisition costs. CL – Commercial lines PL – Personal lines Interboro was near break-even for Q1, but PL OPEX benefited from the collection of $2.5m of return agent commissions that had a full valuation allowance against the receivable. Other is mostly the interest expense on our long-term debt. $ in millions CL PL Other Total Gross Premiums Earned 160.3$ 8.6$ -$ 168.8$ Ceded Premiums Earned (97.6) (2.5) - (100.1) Net Premiums Earned 62.6 6.1 - 68.7 Investment & other revenue 3.4 0.8 0.3 4.5 Unrealized G(L) on Equities (0.0) - - (0.0) Total Revenue 66.0 6.9 0.3 73.2 Underlying Loss & LAE 11.5 4.1 - 15.6 Current year CAT Loss & LAE 0.2 0.5 - 0.8 Prior year development (0.1) (0.3) - (0.4) Total Loss 11.6 4.3 - 15.9 Operating & Interest Expense 21.7 2.3 3.0 26.9 Total Expenses 33.3 6.6 3.0 42.8 Other income (loss) - 0.8 - 0.8 Income (Loss) before tax 32.7$ 1.1$ (2.7)$ 31.2 Income tax expense (benefit) 7.6 Net income (loss) from continuing operations 23.6 Net Loss Ratio 18.4% 71.4% 23.1% Net Expense Ratio 34.6% 36.7% 35.2% Combined Ratio 53.0% 108.1% 58.3% CAT Loss 0.3% 8.9% 1.1% PY Development (F)/U -0.1% -6.2% -0.6% Underlying Combined Ratio 52.8% 105.4% 57.8% Three Months Ended Mar 31, 2024

7 Balance Sheet Highlights Higher liquidity and stronger capitalization resulted in significant improvements to our leverage ratios. Mar. 31, Dec. 31, Q / Q ($ in thousands, except per share amounts) 2024 2023 % Change Selected Balance Sheet Data Cash & investments 504,456$ 369,023$ 36.7% Accumulated other comprehensive income (loss) $ (17,137) (17,335) $ 1.2% Unpaid loss & LAE reserves 279,556$ 370,221$ -24.5% Reinsurance recoverable 257,090$ 341,102$ -24.6% Net Loss & LAE reserves 22,466$ 29,119$ -22.8% Financial debt 148,771$ 148,688$ 0.1% Stockholders' equity attributable to ACIC 203,992$ 168,765$ 20.9% Total capital 352,763$ 317,453$ 11.1% Leverage Ratios Debt-to-total capital 42.2% 46.8% -10.0% Net premiums earned-to-stockholders' equity (annualized) 134.8% 167.0% -19.3% Per Share Data Common shares outstanding 47,799,465 46,777,006 2.2% Book value per common share 4.27$ 3.61$ 18.3% Underlying book value per common share 4.63$ 3.97$ 16.5% Tangible book value per common share 2.85$ 2.14$ 33.1% Underlying tangible book value per common share 3.21$ 2.50$ 28.4%

AmCoastal Premium and TIV Trends 8 Premiums in-force are up +16% y/y but exposures are down -19% vs. Mar-23 Commercial Lines Premium & Total Insured Value (TIV) In-force Risk/Return profile remains strong

9 Persistently Improving CL Portfolio Market conditions are still very firm and supportive of underwriting requirements.

IIC Renewal Rate Trends 10 Renewal retention was 91.7% in Q1 with a renewal rate change of +11.5%.

11 Projected 2024-25 CAT Reinsurance Program - AmCoastal Program Illustration Program Expectations • Hurricane coverage with no exposure to secondary perils (secondary perils covered by the AOP CAT program placed at 1/1/24). • Reducing gross CAT quota share from 40% to 20%. • Net result is significant total revenue growth partially offset by increases to fixed excess of loss reinsurance costs, net losses, and PAC y/y during the treaty year from 6.1.24 to 5.31.25. • Captive utilization expected to improve underwriting results and expected returns. • Targeting 1st event retention to be less than our expected underwriting profit before CAT losses in a typical quarter. • Total Open Market occurrence limit of ~$640M, up ~$265M year-over-year. • Inclusive of a $65M FORA replacement layer. • Secured $200M 3-year CAT Bond; upsized from $150M offering. • AIR exhaustion point increasing from 167-YR to 208-YR return period. • Purchasing on 1@100% with reinstatement premium protection (RPP) or Prepaid basis, dependent on market appetite. • Seek to minimize reinstatement premium exposure.

12 Projected 2024-25 CAT Reinsurance Program - IIC Program Illustration Program Expectations • $85M exhaustion point is similar to our expiring program. • However, exposure decreased ~17% y/y. • Targeting retention reduction from $3.0m to $2.5m y/y. • All CAT perils coverage. • NY homeowners’ exposure only. • Seeking RPP coverage on all layers. 100 YR (50/50 Blend)

13 Cautionary Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements include expectations regarding our diversification, growth opportunities, retention rates, liquidity, investment returns and our ability to meet our investment objectives and to manage and mitigate market risk with respect to our investments. These statements are based on current expectations, estimates and projections about the industry and market in which we operate, and management's beliefs and assumptions. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "endeavor," "project," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the negative variations thereof, or comparable terminology, are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainties include, without limitation: the regulatory, economic and weather conditions in the states in which we operate; the impact of new federal or state regulations that affect the property and casualty insurance market; the cost, variability and availability of reinsurance; assessments charged by various governmental agencies; pricing competition and other initiatives by competitors; our ability to attract and retain the services of senior management; the outcome of litigation pending against us, including the terms of any settlements; dependence on investment income and the composition of our investment portfolio and related market risks; our exposure to catastrophic events and severe weather conditions; downgrades in our financial strength ratings; risks and uncertainties relating to our acquisitions including our ability to successfully integrate the acquired companies; and other risks and uncertainties described in the section entitled "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission (the "SEC"), including our Annual Report in Form 10-K for the year ended December 31, 2022 and 2023 and our Form 10-Q for the periods ending March 31, 2023 (Form 10-Q/A), June 30, 2023, September 30, 2023, and March 31, 2024 including amendments and recast results. We caution you not to place undue reliance on these forward looking statements, which are valid only as of the date they were made. Except as may be required by applicable law, we undertake no obligation to update or revise any forward-looking statements to reflect new information, the occurrence of unanticipated events, or otherwise. This presentation contains certain non-GAAP financial measures. See our earnings release, Form 10-K , Form 10-Q, and Form 10-Q/A for further information regarding these non-GAAP financial measures.

XML

Cover Page Document	May 09, 2024
Document Information [Line Items]
Amendment Flag	false
Document Type	8-K
Document Period End Date	May 09, 2024
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common stock, $0.0001 par value per share
Entity Registrant Name	American Coastal Insurance Corporation
Entity Incorporation, State or Country Code	DE
Entity File Number	001-35761
Entity Tax Identification Number	75-3241967
Entity Address, Address Line One	800 2nd Avenue S.
Entity Address, Postal Zip Code	33701
Entity Address, City or Town	Saint Petersburg,
Entity Address, State or Province	FL
City Area Code	(727)
Local Phone Number	633-0851
Trading Symbol	ACIC
Security Exchange Name	NASDAQ
Entity Central Index Key	0001401521