American Coastal Insurance Corporation (ACIC), formerly known as United Insurance Holdings Corp., reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on property and casualty insurance primarily in Florida and New York, experienced a notable increase in revenue and profitability for the third quarter compared to the same period in 2023.

For the three months ended September 30, 2024, gross premiums earned rose to $160.2 million, up from $157.8 million in the prior year. Net premiums earned also saw a substantial increase, reaching $74.5 million compared to $50.3 million in Q3 2023. Total revenue for the quarter surged to $82.1 million, a significant jump from $52.5 million in the same quarter last year. This growth in revenue was attributed to a decrease in ceded premiums earned and increases in net investment income.

Net income for the third quarter of 2024 was reported at $28.1 million, a remarkable increase of 166.1% from $10.6 million in Q3 2023. Income from continuing operations, net of tax, also increased to $27.7 million from $15.0 million year-over-year. The earnings per share (EPS) for the quarter improved to $0.57, compared to $0.24 in the previous year.

However, for the nine months ended September 30, 2024, net income decreased significantly to $70.8 million from $295.6 million in the same period of 2023. This decline was primarily due to a non-recurring gain of $238.4 million from the sale of the former subsidiary, United Property & Casualty Insurance Company (UPC), in 2023. Despite this, total revenue for the nine-month period increased slightly to $217.4 million from $213.1 million in 2023.

Strategically, ACIC entered into a Stock Purchase Agreement on May 9, 2024, to sell 100% of Interboro Insurance Company (IIC) to Forza Insurance Holdings, LLC. The results of IIC are classified as discontinued operations, alongside UPC, which was placed into receivership in February 2023. The company’s focus remains on commercial residential insurance in Florida and personal residential insurance in New York.

As of September 30, 2024, ACIC's total stockholders' equity increased to $259.6 million, up from $120.6 million a year earlier. The company also reported a significant increase in cash and cash equivalents, totaling $262.5 million compared to $130.5 million at the same time last year.

Overall, while ACIC demonstrated strong quarterly performance, the year-to-date results reflect the impact of significant prior-year gains and strategic shifts in its operations.