American Coastal Insurance

A Small Niche Player Dominating Florida P&C

Market Cap: $537,690,000

P/B: 2.03x (understated book value)

Net Debt: +14,750,000

EV: $522,940,000

Shares Outstanding: 48,350,000

Business Overview

American Coastal Insurance is the largest Property and Casualty balance sheet underwriter in the state of Florida with 4,239 policies. The business is a niche provider of Hurricane/Wind coverage and focuses solely on underwriting commercial residential property, in specific garden-style condominiums that meet specific construction criteria. The business was founded by Daniel Peed in 2007 and has been profitable since its inception, which is a testament to the quality of the business and its management team. American Coastal, until 2023 was a subsidiary of United Insurance Holdings Company before it was spun off following UIHC going into receivership with the Florida Department of Financial Services after Hurricane Ian. It is important to note that UIHC was primarily a personal lines insurer vs American Coastal which is solely focused on Commercial Residential underwriting which carries with it a distinct set of underwriting risk and policy pricing flexibility. The company is in the process of transforming from a small subsidiary of a much larger persona l lines company to a stand-alone niche underwriter focused on underwriting profit and generating “broker-style” fees from its new venture into the Managing General Agent (MGA) business.