Here are 1-3 brief analogies to describe American Coastal Insurance (ACIC) succinctly:

• The State Farm for Florida property owners.
• A specialized Chubb for Florida coastal properties.
• A regional Allstate focused on Florida property insurance.

• Commercial Residential Property Insurance: Provides financial protection against losses to commercial residential properties, such as condominium associations, homeowners' associations, and apartment buildings, due to perils like hurricanes, windstorms, and fires.

American Coastal Insurance (ACIC) is an insurance company that sells property and casualty insurance policies. As such, its "customers" are its policyholders, rather than other companies purchasing its products for resale or incorporation into their own offerings. The company sells primarily to individuals and entities seeking insurance coverage for properties, typically distributed through independent agents and brokers.

The company's customer base can be categorized as follows:

• Homeowners: Individuals and families who own and occupy their primary residences, seeking coverage against perils like wind, fire, and other property damage.
• Landlords/Non-Owner Occupants: Individuals or entities who own residential properties (such as rental homes or secondary residences) but do not reside in them, requiring dwelling fire insurance.
• Commercial Residential Property Owners: Entities, such as condominium associations, apartment building owners, or commercial landlords, that own multi-family residential or commercial properties requiring specialized property insurance coverage.

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Bennett Bradford Martz, President & Chief Executive Officer

Mr. Martz has served as President since July 2020 and Chief Executive Officer since February 2025. Previously, he was the Chief Financial Officer from October 2012 to January 2024. Prior to joining American Coastal, Mr. Martz held a series of financial leadership roles, becoming CFO in 2007 at Bankers Financial Corporation, a diversified holding company with property and casualty insurance operations. Before 2001, he served as Chief Financial Officer of Bonded Builders Service Corporation, a specialty insurance company focused on national home warranty operations, for approximately six years. His career also includes experience in the technology, homebuilding, and public accounting sectors.

Svetlana Castle, Chief Financial Officer

Ms. Castle was appointed Chief Financial Officer in January 2024. Before joining American Coastal Insurance, she spent 16 years at Bankers Financial Corporation, where she held various progressive roles, including Chief Financial Officer for a group of Florida and Louisiana property and casualty companies and Chief Accounting Officer for the holding company. She possesses 15 years of experience in the insurance industry, with extensive expertise in shared services operations, enterprise risk management, financial reporting, forecasting, and auditing. Ms. Castle holds a Juris Doctor degree, a Master's degree in Accounting, a Bachelor of Arts degree in Accounting, and a Bachelor of Science degree in Education - Mathematics.

Chris Griffith, Chief Information Officer & Chief Operating Officer

Mr. Griffith has served as Chief Information Officer since October 2018 and Chief Operating Officer since July 2021. Prior to his tenure at American Coastal Insurance, he was the Vice President and Chief Information Officer of Safety National Casualty Corp, a specialty insurance and reinsurance provider and a member of the Tokio Marine Group. He brings over 12 years of experience in the insurance industry and more than 20 years of technology-related experience, with a strong background in data and digital innovation, having implemented numerous large-scale transformative projects and led teams of over 200 IT professionals.

J. Andy Gray, Chief Compliance and Risk Officer

Mr. Gray is the Chief Compliance and Risk Officer. He has held various roles at American Coastal Insurance in finance, internal audit, and enterprise risk management since 2017. From 2015 to 2017, Mr. Gray served as CFO of American Coastal Insurance Company. Before joining American Coastal, he held various positions at Thomas Howell Ferguson PA (THF) from 1993 to 2015, becoming a Shareholder in 1997, where he focused on audit, tax, compliance, and strategic planning within the insurance industry.

R. Daniel Peed, Executive Chairman of the Board

Mr. Peed transitioned from his role as Chief Executive Officer to Executive Chairman of the Board in February 2025. He joined the organization in 2017 as non-executive vice chairman when American Coastal was acquired by United Insurance Holdings, and he served as CEO starting in June 2020. Previously, Mr. Peed co-founded and served as President and CEO of AmRisc. In his current role, he provides strategic guidance to support the company's long-term growth and value creation.

The key risks to American Coastal Insurance (ACIC) primarily stem from its concentrated geographical exposure and the inherent volatility of the insurance market it operates within.

1. Geographic Concentration and Catastrophe Risk: American Coastal Insurance is highly concentrated in Florida, making it acutely vulnerable to losses from hurricanes and other natural catastrophes. The frequency and severity of such events are unpredictable and can lead to significant fluctuations in claims, directly impacting the company's financial performance.
2. Reinsurance Market Volatility and Costs: Given its exposure to catastrophic events, ACIC relies heavily on reinsurance to manage its risk. The availability and cost of reinsurance are subject to significant volatility, which can increase the company's operating expenses and impact its profitability. Rising reinsurance costs have been a challenge in the Florida market.
3. Market Challenges and Regulatory Environment: The Florida property and casualty insurance market is characterized by intense competition and a dynamic regulatory landscape. ACIC faces challenges such as potential declines in pricing, increased policy acquisition costs, and the historical presence of issues like roofing scams that can lead to unexpected expenses. Navigating this environment effectively is crucial for the company's sustained profitability.

• The accelerating impact of climate change, leading to increased frequency and severity of extreme weather events (e.g., hurricanes, coastal flooding) which is causing a significant hardening of the reinsurance market. This results in dramatically higher costs for primary insurers like ACIC to secure essential reinsurance coverage, thereby eroding profitability and potentially impacting the ability to underwrite policies in coastal regions at sustainable rates.
• The rise of Insurtech companies leveraging advanced data analytics, artificial intelligence, and machine learning to offer superior risk assessment and pricing models for property insurance, even in catastrophe-prone areas. These tech-driven competitors can potentially underwrite more efficiently, identify lower-risk segments within high-risk zones, and offer more competitive pricing or personalized products, thereby drawing away desirable policyholders from traditional insurers like ACIC.

American Coastal Insurance (ACIC) primarily operates in the Florida property and casualty insurance market, focusing on both personal and commercial residential property insurance.

Addressable Market Sizes for American Coastal Insurance's Main Products:

• Personal Residential Property Insurance (Florida):

  As of mid-2023, the Florida homeowners insurance market included approximately 6.4 million policies, encompassing dwelling fire, mobile home, and tenant and condominium unit owner policies. Florida holds the largest share of the U.S. homeowners premium market, accounting for 10.80% of the national total. The Florida personal property insurance market demonstrated a significant recovery in 2024, achieving its first underwriting profit after eight consecutive years of losses. Active Florida property insurers (excluding Citizens Property Insurance Corporation and insolvent companies) reported an underwriting gain of $206.7 million in 2024, a notable turnaround from a $174.4 million loss in 2023. Pre-tax operating income also substantially increased to $492.3 million in 2024.

• Commercial Multi-Peril Property Insurance for Residential Condominium Associations and Apartments (Florida):

  American Coastal Insurance provides commercial multi-peril property insurance tailored for residential condominium associations and apartments in Florida. While specific overall market size data in dollar figures for this precise segment within Florida is not readily available, the company's focus indicates a significant addressable market given Florida's high concentration of condominium properties and apartments, particularly in coastal regions.

1. Rebound in Premiums and New Business Growth: American Coastal Insurance anticipates a rebound in premiums for the fourth quarter of 2025 and into 2026. This is expected to be driven by the earning of new business premiums written in prior quarters, following a strategic slowdown in premiums written during the third quarter of 2025 to manage exposure through hurricane season.
2. Launch of New Insurance Programs: The company's wholly-owned managing general agent, Skyway Underwriters, recently introduced a new commercial residential property insurance program. This initiative specifically targets the assisted and independent living facility market in Florida, aiming to leverage existing distribution relationships for future growth and profitability.
3. Expansion in the Florida Apartment Insurance Market: ACIC plans to resume growth in the fourth quarter of 2025 with a strategic focus on expanding its footprint within the apartment insurance market across Florida.
4. Strategic Reduction in Quota Share Reinsurance: A decrease in the company's gross catastrophe quota share from 20% to 15%, effective June 1, 2025, has resulted in an increase in net premiums earned. This strategic move allows ACIC to retain a larger portion of premiums, thereby contributing to revenue growth.
5. Favorable Market Conditions in Southeast Florida: Although property insurance rates are declining in some areas, the market in Southeast Florida, where a significant portion of ACIC's exposure lies, is generally more stable and is even projected to improve. This is attributed to ongoing capacity and underwriting constraints in the region, which could support favorable pricing and continued growth for the company.

Share Issuance

• American Coastal Insurance (ACIC) entered into an equity distribution agreement to sell up to 8 million shares, generating approximately $38.19 million in net proceeds.

Capital Expenditures

• American Coastal Insurance's capital expenditures for March 2025 were reported as $96,000.