AMERICAN COASTAL INS CO
Major Rating Factors:
Weak profitability index (1.4 on a scale of 0 to 10) with operating losses during 2019, 2020 and 2021. Average return on equity over the last five years has been poor at -1.3%. Weak overall results on stability tests (2.5) including weak results on operational trends and negative cash flow from operations for 2022. The largest net exposure for one risk is excessive at 5.2% of capital.
Other Rating Factors:
Good long-term capitalization index (5.0) based on fair current risk adjusted capital (severe loss scenario), although results have slipped from the good range over the last two years. Fair reserve development (4.8) as reserves have generally been sufficient to cover claims. In 2020, the two year reserve development was 18% deficient. Good liquidity (5.7) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Other (100%)
Licensed in:
FL
Principal Investments:
Investment grade bonds (72.9%), common stock (6.4%), cash (5.5%), non investment grade bonds (0.2%), other (14.9%)