American Coastal Insurance Company (ACIC) is a licensed and admitted Florida based insurance company currently writing Condominium and Homeowner Association properties. ACIC received its Certificate of Authority in June 2007 and by September 2007 began writing business. ACIC was initially capitalized with $50 million surplus and is focused on a high degree of longevity and security.  As of June 30, 2010, the surplus has grown to almost $85 million. There is no debt, LOC, preferred capital or other leverage used in the capitalization of ACIC. Since inception ACIC has invested all assets in highly rated bonds, money market accounts, CD’s or cash. Due to our conservative approach, there have been no asset losses in relation to the recent financial market distress which impacted Citizens and many other insurance companies. The total assets at the end of the second quarter 2010 were over $210 million. ACIC wrote approximately $160 million in 2009 and we expect to write approximately $200 million in 2010. Demotech recently reaffirmed the Financial Stability rating of “A” Exceptional for American Coastal for 2010.

ACIC’s current primary underwriting target is “Best of Class” Florida Garden Style Condominiums. “Best of Class” risks place an emphasis on positive secondary wind underwriting characteristics such as roof shape, bracing, hurricane straps where needed and age of roof coverings for all ISO 1-6 construction. The ACIC filed rating plan is designed to provide competitive pricing along with enhanced coverage such as ISO Broad and Special Causes of Loss Forms as well as several extensions of coverage. 

Catastrophe exposure management is critical to companies writing hurricane exposed properties. ACIC’s reinsurance protection for 2010 is over two times the Florida minimum requirements. We have designed the catastrophe reinsurance protection to meet or exceed the standard protection levels for “A” rated carriers, and plan to maintain this approach in the future. Catastrophe reinsurance is provided by a commercial placement with all “A-”or better rated reinsurers and the Florida Hurricane Catastrophe Fund, including a Reinstatement Premium Protection program.

Underwriting services are contracted to AmRisc, LP, which is the largest Managing General Agent in the country specializing in hurricane exposed properties. They were formed in late 2000 and have weathered the many Hurricane and Tropical Storms since then (Charley, Frances, Jean, Ivan, Katrina, Wilma, Ike, etc.). AmRisc's conservative approach and sound Catastrophe portfolio management has allowed them to grow from underwriting approximately $25million premium in 2001 to well over $500million premium in 2010. They currently underwrite for six different insurance companies as well as numerous Lloyds syndicates.

All of AmRisc’s claims, including ACIC, are handled by CJW and Associates (CJW).  CJW is a Third Party Claims administrator that was formed in 1981.  It is based in Orlando, FL, has over 170 employees and is widely respected as one of the leaders in the catastrophe claims handling arena.

We are excited to provide the State of Florida stable capacity that is desperately needed in the condominium market. American Coastal is executing on a long term business plan and intends to be able to provide secure capacity with quality claims service for many years to come. If you manage a Condominium or Homeowners Association, contact your agent to see if you fit our underwriting criteria. If you are an agent looking to access our capacity please contact AmRisc for further direction.

Thank you for your interest and if you have any questions please feel free to contact me.

Timothy Singletary, ARe, ARM
President of American Coastal
(888) 919-8145