AmCoastal estimates Milton losses of $150-200m, reinstatement protects reinsurance
American Coastal Insurance Corporation (ACIC) and its insurance holding company American Coastal Insurance Company (AmCoastal) estimate a gross loss range of $150 to $200 million from Milton.
ACIC estimates net current accident quarter catastrophe losses incurred from Milton in Q4 2024 to be approximately $16.2 million, net of tax impacts. ACIC expects to incur approximately $13 million of reinstatement premiums that will be amortized as ceded premiums earned over the remaining eight-month coverage period, from October 2024 through May 2025.
Out of the total Milton losses, $7.9 million is retained by AmCoastal, with $8.3 million retained by the firm’s captive reinsurance entity.
Brad Martz, President of American Coastal, commented, “Hurricanes Helene and Milton were severe storms with devastating impact, and our primary focus is on servicing our policyholders. ACIC’s underwriting discipline and robust reinsurance program serve to protect AmCoastal’s balance sheet and reduce volatility from the active Atlantic hurricane season. We estimate a gross loss between $150 and $200 million from Milton, leaving 100 percent of AmCoastal’s $1.26 billion occurrence based reinsurance tower available for subsequent catastrophe events.”
ACIC estimates approximately $3.8 million of net current accident quarter catastrophe losses from Hurricanes Debby and Helene in Q3 2024, net of tax impacts. Out of the total, $2.4 million from Helene is retained by AmCoastal, with $1.4 million retained by ACIC’s captive reinsurance entity.
Martz concluded, “With AmCoastal’s reinsurance tower fully intact and a lower $10.3 million retention on potential second and third events, net of tax impacts, the Company remains strongly positioned for the remainder of the 2024 Atlantic hurricane season, and is expected to remain profitable in the fourth quarter, despite Milton’s impact.”
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