American Coastal Insurance (ACIC) Investor update summary

Franchise and underwriting

• #1 admitted commercial-residential insurer in Florida, with ~4,450 policies and $573M premium in force; profitable every year since 2007.

• Core Florida business insures low-rise condominium building envelopes, common areas and ancillary structures, excluding contents and liability; typical policy covers six buildings, ~$16M TIV and ~$120,000 premium.

• Focus on low-rise commercial buildings up to $100M TIV; flexible, judgment-based pricing applies to >75% of the portfolio, with Florida commercial property above $5M TIV exempt from filed rates.

• Risk selection uses hundreds of factors, catastrophe models and inspections of 100% of insured properties.

• AmRisc is the exclusive distribution and underwriting partner; Skyway is the commercial-property MGA and ACES an emerging specialty E&S carrier.

Reinsurance and catastrophe exposure

• June 1, 2026 program provides more than $1.7B of first-event named-windstorm limit, protecting to a ~286-year return time versus a 130-year rating-agency requirement.

• Retentions are $23.5M for the first event and $25M for the second; the third-event retention is $2M, with $76M total across three events.

• Management targets profitability after one full retention in a quarter and three in a calendar year; more than four retentions in one state and season is highly unusual.

• More than 30 reinsurers comprise a diversified, highly rated and collateralized panel; three-year reinsurance costs are down ~36–40% while coverage broadened.

• Multi-year placement locks in $764M of limit ahead of the 2027 renewal; severe or frequent catastrophe years are expected to be earnings events rather than capital events.

Growth strategy

• Nationwide AmRisc co-participation is expected to generate $70–80M of annual written premium, with first-full-year premium estimated at roughly $70M and volume adjusted to returns and capacity needs.

• Florida, Texas and South Carolina represent a $3.8B market opportunity; 5% share would generate roughly $200M of new premiums over three to five years.

• E&S operations are expected to start on or about Dec. 1, 2026, using an unaffiliated fronting partner's A-rated paper; ACES approval is pending, with ACES and Skyway expected to contribute new E&S premium in 2027.

• New E&S business is expected to have a combined ratio 5–10 points higher than the Florida condo portfolio, mainly due to reinsurance costs and lack of Florida Hurricane Catastrophe Fund coverage.

• Strategic priorities target a 75% underlying combined ratio and mid-20s ROE alongside broader specialty E&S underwriting growth.