Q2 2025 American Coastal Insurance Corp Earnings Call
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My pleasure to turn the call over to Karen Daily with the equity group. Please go ahead Karen.
Thank you, Kevin and good afternoon, everyone.
American Coastal insurance Corporation has also made this broadcast available on its website at www Dot a M coastal dot com.
A replay will be available for approximately 30 days following the call.
Additionally, you can find copies of the latest earnings release and presentation in the investors section of the company's website.
Speaking today will be president and Chief Executive Officer, Bennett breath, Marts, and chief financial officers that lot of castle.
On behalf of the company I'd like to note that statements made during this call that are not historical facts are forward looking statements.
The company believes these statements are based on reasonable estimates assumptions and plans. However, if the estimates assumptions or plans underlying the forward looking statements prove inaccurate or if other risks or uncertainties arise actual results could differ materially from those expressed in or implied by the forward looking.
Speaker #4: Greetings and welcome to the American Coastal Insurance Corporation's second quarter earnings conference call and webcast. At this time, all participants are in a listen-only mode.
Speaker #4: A question and answer session will follow the formal presentation, and you may be placed into question queue at time by pressing star one on your telephone keypad.
Speaker #4: If anyone should quire operator assistance, ase press star zero. As a reminder, this conference is being recorded. It's not my pleasure to turn the call over to Karin Daly with the Equity Group.
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Factors that could cause actual results to differ materially may.
It may be found in the company's filings with the U S Securities and Exchange Commission and the risk factors section in their most recent annual report on Form 10-K, and subsequent quarterly reports on Form 10-Q.
Speaker #4: Please go ahead, Karin.
Speaker #5: Thank you, Kevin, and good noon, everyone. The American Coastal Insurance Corporation has also made this broadcast available on its website at www.amcoastal.com. A replay will be available for approximately 30 days following the call.
Forward looking statements speak only as of the date on which they are made and except as except as required by applicable law. The company undertakes no obligation to update or revise any forward looking statements with that it's my pleasure to turn the call over to Brad Martz.
Speaker #5: Additionally, you can find copies of the latest earnings release and presentation in the Investors section of the company's website. Speaking today will be President and Chief Executive Officer, Bennett Martz, and Chief Financial Officer, Svetlana Castle.
Ed.
Thank you and welcome everyone.
Pleased to report American coastal continued to deliver exceptional results during the second quarter by growing revenues, 26% year over year growing pre tax earnings 51% year over year and producing a core return on equity of approximately 42%.
Speaker #5: On behalf of the company, I'd like note that statements made during this call that are not historical facts are forward-looking statements. The company believes these statements are based on reasonable estimates, assumptions, and plans.
Yeah, our view the Florida market for admitted commercial residential property insurance remains relatively healthy, but property insurance rates continued to fall and most territories during the second quarter, but we're monitoring all terms and conditions very carefully.
Speaker #5: However, if the estimates, assumptions, or plans underlying the forward-looking statements prove inaccurate, or if other risks or uncertainties arise, actual results could differ materially those expressed in or implied by the forward-looking statements.
In southeast, Florida in particular, where much of our exposure is located.
Speaker #5: Factors that could cause actual results to differ materially may be found in the company's filings with the US Securities and Exchange Commission. In the risk factors section in their most recent annual report on Form 10K and subsequent quarterly reports on Form 10Q.
<unk> is generally firmer than the rest of the state and as even expected to improve in some instances due to ongoing capacity and underwriting constraints.
Our risk portfolio continues to perform in line with most key underwriting metrics. These metrics along with improvements in our balance sheet strength and our catastrophe reinsurance program or a big reason why we have grown our policies in force roughly 10% since year end year.
Speaker #5: Forward-looking statements speak only as of the date which they are made, and except as required by applicable law, the company undertakes no obligation to update or revise any forward-looking statements.
Speaker #5: With that, it's my pleasure to turn the call over to Brad Martz. Brad?
Year to date total insured value increased approximately 18% $69 8 billion as of June 30th.
Speaker #6: Thank you and welcome, everyone. I'm pleased to report American Coastal continued to deliver exceptional results during the second quarter by growing revenues, 26% year over year, growing pre-tax earnings, 51% year over year, and producing a core return on equity of approximately 42%.
However, continuous portfolio optimization and improvements in our overall spread of risk have resulted in modeled expected losses growing at a much slower rate.
During the quarter, we completed our core catastrophe reinsurance program renewal effective June one 2025 page 10 of our earnings presentation provides.
Speaker #6: In our view, the Florida market for admitted commercial residential property insurance remains relatively healthy, but property insurance rates continue to fall in most territories during the second quarter, so we're itoring all terms and conditions very carefully.
The final structure.
And highlights of which are very similar to the projected structure, we previewed last period.
The risk adjusted cost decrease of approximately 12, 4%.
Speaker #6: In Southeast Florida, in particular, where much of our exposure is located, the market is generally firmer than the rest of the state, and is even expected to improve in some instances due to ongoing capacity and underwriting constraints.
Ceded premiums are subject to potential adjustment based on actual modeled average annual loss versus our projected a L. At September 30th sorry.
So our risk appetite for adding new exposures is likely to be somewhat limited during the third quarter.
Speaker #6: Our risk portfolio continues to perform in line with most key underwriting metrics. These metrics, along with improvements in our balance sheet strength and our catastrophe reinsurance program, are a big reason why we have grown our policies and force roughly 10% since year end.
We expect to resume growth in the fourth quarter towards the end of hurricane season.
The underwriting environment is favorable to do so.
On July 21, we also announced that the Kroll Bond rating agency had upgraded American coastal insurance Corporation.
Speaker #6: Year to date, total insured value increased approximately 18%, 69.8 billion as of June 30th. However, continuous portfolio optimization and improvements in our overall spread risk have resulted in modeled expected losses growing at a much slower rate.
To triple B minus and moved all of our outlooks.
Outlook from stable to positive.
Our team has worked hard to regain investment grade status.
And since it reduces the interest rate on our senior notes by 100 basis points and clearly conveys that our company is the right direction, we were very happy to see that.
Speaker #6: During the quarter, we completed our core catastrophe reinsurance program renewal effective June 1st, 2025. Page 10 of our arnings presentation provides the final structure.
I'll now turn it over to our CFO mono castle for more specifics on our second quarter results.
Speaker #6: And highlights of which are very similar to the projected structure we previewed last period. With the risk adjusted cost decrease of approximately 12.4%. Seated premiums are subject to potential adjustment based on actual modeled average annual loss versus our ected AAL at September 30th.
Thank you, Brett and Hello, Amanda Castle, Chief Financial Officer of American Coastal Insurance Corporation, and I will provide the financial update but encourage everyone to review the company's press release earnings and Investor presentations and Form 10-Q for more information regarding our performance.
Speaker #6: So our risk appetite for adding new exposures is likely to be somewhat limited during the third quarter. We expect to resume growth in fourth quarter towards the end of hurricane season, assuming the underwriting environment is favorable to do so.
As reflected on page five of the earnings presentation American coastal demonstrated another strong quarter with net income of $26 4 million or income was $26 8 million, an increase of $7 2 million and year over year due to a $15 1 million increase in net premiums earned as a product of <unk>.
Speaker #6: On July 21st, we also announced that the Coral Bond Rating Agency had upgraded American Coastal Insurance Corporation to triple B-minus and moved all of our outlooks from stable to positive.
Stepping down our gross quota share from 40% to 20% effective June one 2024, and further from 20% to 15% effective June one 2025.
Speaker #6: Our team has worked hard to regain investment-grade status. And since it reduces the interest rate on our senior notes by 100 basis points and clearly conveys that our company is headed in the right direction, we were very happy to see that.
This was partially offset by increased operating cost of $6 2 million driven by a $10 <unk> million or 74, 8% increase in policy acquisition costs offset by $4 1 million or 34, 5% decrease in general and administrative expenses.
Speaker #6: I'll now turn it over to our CFO, Lana Castle, for more specifics on our second quarter results.
Policy acquisition cost increased due to a decrease in ceding commission income because of the step down and increased external management fees, while G&A decreased due to the receipt of $2 9 million of complete attention ducks greater coupons.
Speaker #7: Thank you, Brad, and hello. I'm Lana Castle, Chief Financial Officer of American Coastal Insurance Corporation. I'll provide the financial update but encourage everyone to review the company's press release, earnings and investor presentations, and Form 10-Q for more information regarding our performance.
These refunds were previously disclosed as a game contingency and are non recurring.
Our combined ratio was 66% a decrease of four three points from 'twenty to 'twenty, four and lower than our stated 65% target.
Speaker #7: As reflected on page 5 of the earnings presentation, American Coastal demonstrated another strong quarter with net income 26.4 million. Core income was 26.8 million, an increase of 7.2 million year over year due to a 15.1 million increase in net premiums earned, as a product of stepping down our gross quarter share from 40% to 20%, effective June 1st, 2024, and further from 20% to 15%, effective June 1st, 2025.
Our non-GAAP underlying combined ratio, which excludes current year catastrophe losses and prior year development was 62, 2% also below our 65% target who continue to feel our reserve position is strong.
Page six of the presentation provides additional detail on our financial results the.
The increased operating cost mentioned earlier were in line with expectations and were more than offset by the increase in net premiums earned create and net earning strong.
Speaker #7: This was partially offset by increased operating costs of 6.2 million driven by a 10.3 million or 74.8% increase in policy quisition costs, offset by a 4.1 million or 34.5% decrease in general and administrative expenses.
Page seven shows balance sheet highlights cash and investments grew 34, 3% since year end to $726 2 million, reflecting the company's strong liquidity position.
Speaker #7: Policy acquisition costs increased due to a rease in seeding commission income because of the step down and increased external management fees, while G&A decreased due to the receipt of 2.9 million of employee retention tax credit refunds.
Included in this balance is $25 7 million of cash received from the sale of our inter border subsidiary announced in April 2025.
Stockholders equity increased 24% since year end to 290 to $2 3 million driven by our strong results.
Speaker #7: These refunds were previously disclosed as a gain contingency and unknown recurring. Our combined ratio was 60.6%. A decrease of 4.3 points from 2024 and lower than our stated 65% target.
Book value per share of 622, 7% increase from year end 2024.
The company continues to be in a strong position to execute on its 2025 initiatives.
Speaker #7: Our non-GAAP underlying combined ratio which excludes current year catastrophe losses and prior year development was 62.2%, also below our 65% target. We continue to feel our reserve position is strong.
I'll now turn it over to Brad Martz for closing remarks.
Thanks Rommel.
That completes our prepared remarks for today's call and we are now happy to field any questions.
Speaker #7: Page 6 of the presentation provides additional detail on our cial results. The increased operating costs mentioned earlier were in line with expectations and were more than offset by the increase in net premiums earned, creating net earnings shown.
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Speaker #7: Page 7 shows balance sheet highlights. Cash and investments grew 34.3% since year end to 726.2 million, reflecting the company's strong liquidity position. Included in this balance is 25.7 million of cash received from the sale of our inter-border subsidiary announced in April 2025.
Once again Thats star one to be placed in the question queue.
Please while we poll for questions. Our first question is coming from Greg Peters from Raymond James Your line is alive.
Hey, good afternoon.
In your Investor deck you.
Talk about Skyway underwriters.
Speaker #7: Stockholders' equity increased 24% since year-end to $292.3 million, driven by a strong result. Book value per share is $6, reflecting a 22.7% increase from year-end 2024.
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On page nine of the dock.
Interesting.
This quote to bind ratio and it seem like it improved pretty noticeably in June.
Speaker #7: The company continues to be in a ong position to execute on its 2025 initiatives. I'll now turn it over to Brad Martz for closing remarks.
How do I think about.
Hmm.
The market that you guys are going after with Skyway underwriters in the context your comments about the <unk>.
Speaker #6: Thanks, Lana. That completes our prepared remarks for today's call, and we are now happy to field any questions.
<unk> environment for your other core business.
Okay.
Thanks for the question Greg this spread.
Speaker #8: Thank you, Lana. Inducting your estion and answer session. If you'd like to be placed into question queue, please press star one on your telephone keypad.
We are cautiously optimistic about our ability to grow our presence in the apartment space in Florida on an admitted basis.
Speaker #8: A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue.
Most of the apartment risks are written in the E&S market today.
Speaker #8: Once again, that's star one to be placed into question queue. In one moment, please, while we pull up for questions. Our first question is coming from Greg Peters from Raymond James.
<unk> a compelling alternative.
And.
You have to see a lot of submissions.
Speaker #8: Your line is now live.
Two finally issue a policy.
Speaker #9: Hey, good afternoon. in your investor deck, you talk about Skyway underwriters and I've I've thought on page 9 of this of the deck, it's kind of interesting because there's this quote to bind ratio and it seemed like it improved pretty noticeably in June.
We haven't been chasing everything thats coming to us, but we're seeing nice deal flow.
And.
I think it's that submission to bind ratio thats, probably more important to us.
As an indicator of us just being cautious and being selective and being patient.
We're not chasing rate.
Rates in the E&S market in Florida tend to be.
Speaker #9: How do I think the market that you guys are going after with Skyway underwriters in the context of your comments about the pricing environment for your other core business?
Little bit more volatile than the admitted market as you can imagine so.
While we price our business like E&S.
It.
It's not something that we're forced to grow.
That's the good part about having an executive chairman who has an underwriter in.
Speaker #6: Thanks for the question, Greg. This is Brad. you know, we're cautiously optimistic about our ability to to grow our presence in the apartment space in Florida on an admitted basis.
There is no no requirement or any.
Anything internally that suggests we have to hit our $20 million Permian goal will take on risk as it presents an opportunity based on the expected return on capital and that's really how we're approaching it.
Speaker #6: Obviously, most of the apartment risks are written in the E&S market today. we're offering a compelling alternative and you know, you you have to see a of submissions.
And can you remind me on this is for this apartment business. This is just.
You are not taking on any liability exposure insurance.
Speaker #6: The to finally issue a policy. we haven't been you ow chasing everything that's coming to us, but we're seeing nice deal flow. And you know, I think it's that submission to to bind ratio that's probably more important as an indicator of us just being cautious and being selective and being patient.
Just.
Physical damage rate.
Correct, Yes, great clarification, we are not in the casualty business. This is this is a property book only so.
On the liability exposure.
Great.
And.
Speaker #6: we're not chasing rate. rates in the &S market in Florida tend to be you know a little bit more volatile than the admitted market, as you can imagine.
Lots of Great information that you are providing on slide 10 on your reinsurance program.
Speaker #6: So while we price our business like E&S, it it, it it's not something that we're forced to grow. that's the good part about having an executive chairman who who's an underwriter and and, you know, there's no no requirement or anything internally that suggests we we have to hit our $20 million premium goal.
And very rarely do we see companies.
Talk about third event cover.
So maybe maybe you can spend a second and unpack obviously the first advantage is pretty straightforward.
But talk about the second and third of course.
I imagine there are other parts of the tower that are used in the first or second event that might limit the.
Speaker #6: You know, we'll we'll e on risk as it presents an opportunity based on the expected return on capital. And that that's really how we're approaching it.
<unk> ability of whats.
What's possible for a third event cover but <unk>.
Perhaps you could provide some clarification on that.
Speaker #9: And can you remind me on this is, you know, for this apartment business, this is just this is you're not taking on any liability exposures here.
Yes, certainly.
The group retention outlined on page 10 of the earnings presentation are really stimulating.
Speaker #9: This is just physical damage, right?
Three sort of normal events call it a $100 million.
Speaker #6: Correct. Yeah, great clarification. We are not in the casualty business. This is this is a property book only. So no liability exposure.
Dollars of gross loss.
That's kind of how we think about it with the with an average annual loss in the in the $50 million range, if you double that and say okay.
Speaker #9: Great. And and, you ow, lots of great information that you're providing in slide 10 on your reinsurance program. and very rarely do we see companies that talk about third event cover.
Normal than like a Milton that we currently have reserved at 90.
And our our incurred losses on Milton or are under $25 million, but we've got it reserved at 90.
It.
Suggests that that's.
What the retention would be based on the utilization of limit, but obviously it really depends on the first event as you astutely point out.
Speaker #9: So maybe maybe you can spend a second in unpack. Obviously, the first event is pretty straightforward. But talk about the second and third event because I imagine if there are other parts of the tower that are used in a first or second event, that might limit the availability of what's what's possible for a third event cover.
There are a number of different scenarios, depending on frequency and severity that could change those retention numbers.
But.
That's how the program is designed that the key variable is the Florida Hurricane catastrophe fund.
We're showing it drawn here attaching at around $300 million, Mark that's likely to move up based on our exposure growth that we're that we've reported to the Cat fund as of June 30th.
Speaker #9: But perhaps you can provide some clarification on that.
Speaker #6: Yes, certainly. The group retention outlined on page 10 of the earnings presentation are are really simulating you know three sort of normal events: call it 100 million, dollars of of gross loss, that's kind of how we think about it with a with an average annual loss in the in the 50 million dollar range.
So there will be more coverage ultimately I think that's going to push the total exhaustion point of our program up based on this.
Structure illustration of that is just a projection.
But that being said, we've got no gaps in coverage and.
Speaker #6: You know, if if you double that and say, "Okay, you ow, a normal event like a Milton that we currently have reserved at 90," and our our incurred losses on Milton are are under 25 million, but we've got it reserved at 90, suggests that that that's what the retention would be based on the utilizational limit.
All of the limited nurse.
Uh huh.
Around the Cat fund.
Catherine is in our and I should say rather.
The unique enhancement we made this year.
We didn't have last year is a cascading feature of some of the limit up top.
Speaker #6: But obviously, it really depends on the first event, as you astutely point out. You know, there are a number of different scenarios depending on frequency and severity that could change those retention numbers.
Historically those top players.
Fixed attachment and exhaustion points now if there is significant erosion in the Florida Hurricane catastrophe fund you can see the <unk>.
Speaker #6: but that that's how the program is designed, that the key variable is the Florida Hurricane Catastrophe Fund. we're showing it drawn ere attaching it around the 300 million dollar mark.
Armour re to cat bonds for example.
It's drawn as $200 million excess of $50 million, even though it's showing an attachment point well above that.
Speaker #6: That's likely to move up based on our exposure growth. That that we're that we've reported to to the cap fund as of June 30th.
Because it does first dropped to 300 million to fill in any erosion of kept on limit lost for a second event and then would potentially drop even further to $50 million for a third event. So there are all kinds of different scenarios for frequency and severity.
Speaker #6: so that there will be more coverage ultimately. I ink that's going to push the total exhaustion point of our program up based on this structural illustration that that is just a projection.
But on this what we've outlined here is just an expected normalized stress tests for three normalized sort of cat, one cat II <unk> III type events.
Speaker #6: but that being said, you know, we've got no gaps in coverage. And you know, all of the liminers around the cap fund. Cap fund is an earning, I should say, rather.
Perfect makes sense.
Thanks, a lot for the detail.
Youre welcome.
Thank you. Your next question today is coming from build to Zelem from Titan Capital Management. Your line is now live.
Speaker #6: the unique enhancement we made this year that we didn't have last year is a cascading feature of some of the the limit up top.
Thank you I actually would like to follow up on the apartment a binding ratio a bit.
Was that a 45% is higher than what you had been experiencing.
Speaker #6: historically, those top layers you know, had fixed attachment and exhaustion points. Now, if there is significant erosion in the Florida Hurricane Catastrophe Fund, you can see the armor read to cap bond, for example, it's drawn as 200 million excess of 50 million, even though it's you know, showing an attachment point well above that.
<unk> seen earlier in the year, which would you walk through the implications I mean, it is literally that the that you had that much higher quality apartments coming to you or is it more a function of gaining experience.
Understanding and getting comfortable with the market and and being willing to to bind.
Speaker #6: it's because it does first drop to 300 million, to fill in any erosion of a cap fund limit lost for a second event, and then would potentially drop even further to 50 million for third event.
More coverage than you were earlier in the year wont walk me through the dynamics if you would please.
Speaker #6: So there all kinds of different scenarios for frequency and severity. but on an this what we've outlined here is just an expected normalized stress test for three normalized sort of cap one, cap two, cap three type events.
Sure. Thanks for the question Bill.
I definitely would agree we are gaining.
Our experience and knowledge and.
Building deeper relationships with our distribution partners every day so.
Speaker #9: Perfect. Makes sense. and thanks a lot for the detail.
What we knew in January is up significantly improved today.
Speaker #6: You're come.
Speaker #8: Thank you. Next question. Today is coming from Bill de Zelem from Tyson Capital Management. line is now live.
That being said the quote to bind ratios a little bit random.
Speaker #10: Thank you. I actually would like follow up on the apartment binding ratio. because that 45% is higher than what you had been experiencing earlier in the year, would you would you walk through the implications?
June is a big month for.
Production and property insurance in general in Florida in the second quarter is obviously, our strongest premium production quarter of the year and June we just happened to see more and more risk that fit our eye than we had in the previous months. So it's a combination of some seasonality and a little bit of randomness.
Speaker #10: I an, is this literally that the that you had that much higher quality apartments coming to you, or is it more a function of gaining experience understanding and getting comfortable with the market, and and being willing to to to bind more coverage than you were earlier in the year?
But I will.
Not miss an opportunity to say our capabilities or our <unk>.
Proving.
Day by day, and the underwriting distribution of the apartment program.
Speaker #10: Walk me through the the dynamics, if you , please.
Well I'll ask you to step out on a limb the first half your quote to bind ratio was 29% on average.
Speaker #6: Sure. thanks for the question, Bill. I I definitely would agree we are gaining experience and and knowledge and building deeper relationships with with our distribution partners every day.
Directionally.
Is that number going up in the second half or down in the second half.
Hard to say you know.
I don't have a perfect crystal ball on on the.
Speaker #6: So you know, what we knew in January is is significantly improved you know today. that being said, the quote to bind ratio is a little bit random.
The underwriting environment, obviously, if it remains relatively healthy I think there's opportunity to grow.
Speaker #6: You know, we just in June is a big month for production in in property insurance in general in Florida, second quarter is obviously our strongest premium production.
If rates continue to decrease and returns.
Impacted by various changes in terms and conditions it could slow so.
Speaker #6: Quarter of the year and June you know, we just happen to see more more risk that fit our eye than than we had in the previous months.
It really we're going to be opportunistic and very thoughtful about.
Growing this this business.
Speaker #6: so it's a bination of some seasonality and a little bit of randomness. But I I will you know, not miss an portunity to say, you know, our capabilities are are improving you ow, day by day in in, in the underwriting distribution of the apartment program.
But I'd love to see us meet or exceed our plan for the year, but again, it's a soft target it's not something.
I am pushing.
Aggressively internally I'd much rather see us right.
A high quality book of business.
With a better expected margin than than just put a bunch of premium on the books.
Speaker #10: Well, I'll ask you to step out on a limb. The first half, your quote to bind ratio was 29% on average. Directionally, is that number going up in the second half or down in the second half?
Alright, Thanks, Brad and then in your opening remarks, you referenced is that a geography, where you have concentration is it that is a better market.
Harder market than Florida on average would you dive into that comment a bit further please.
Speaker #6: Hard to say. You know, I I don't have a perfect crystal ball on on the the underwriting environment. Obviously, if it remains relatively healthy, I think there's opportunity to grow.
Sure the southeast, Florida also affectionately known as Tri County.
Includes 90 Dade Broward and Palm Beach counties and to a lesser extent Martin County.
Speaker #6: if rates continue to decrease and returns you know are impacted by various changes in s and conditions, you know, it could slow. So it really we're going to be opportunistic and and very thoughtful about you ow growing this this business.
The southeast region of the state is always going to be the most challenging.
It's the peak exposure zones in the world for for Hurricane risk.
And there's more demand than there is supply of quality carriers willing to write there and have the experience and knowledge and knowhow to successfully underwrite in that particular part of the state. So we've got a strong presence there.
Speaker #6: but you know, I'd love to see us meet or exceed our our plan for the year, but again, it's a soft target. It's not something I'm I'm pushing aggressively internally.
Well for our book.
Speaker #6: I'd much rather see us right, you know, a high-quality book of business with a a better expected margin than than just put a bunch premium on the books.
Considering that that market is what I would I would.
Characterize it as firmer than than the rest of Florida, where that is perceived to be less risky.
Speaker #10: All right. Thanks, Brad. And and then in your opening remarks, you referenced that the geography where you have concentration is a is better is a better market harder market than Florida on average.
In our apartment business I Should've mentioned.
A lot of this premium that we're we're writing in the apartments is not in.
The peak zones, where our kinds of businesses. So it is helping diversify our portfolio from from an exposure management perspective.
Speaker #10: Would would you dive into that comment a bit further, please?
And.
We're happy to see that.
Speaker #6: Sure. The southeast Florida, you ow, also affectionately known as Tri-County, includes Miami-Dade, Broward, and Palm Beach counties. to a lesser ent, Martin County. You know, that that southeast region of the state is is always going to be the the most challenging it's the peak exposure zone in world for for hurricane risk.
Thank you that is a that is helpful and I guess I have one additional question relative to the employee tax retention.
Credit.
You have now received all of the credits that you'll be receiving or are there still still some lingering out there that you were hoping to receive.
Speaker #6: And you know, there's there's more demand than there's supply of of quality carriers willing to to write there. And have the experience and knowledge and know-how to to successfully underwrite in that particular part of the state.
I believe we received everything at this point a lot of can you confirm that that's accurate.
Yes, Brad that confirmed all have been received.
Speaker #6: So we've got a strong presence. that bodes well for our book. considering that you know, that market is what I would I would characterize it as firmer than than the rest of Florida, where that's perceived to be less risky.
Okay, great. Thank you both.
Youre welcome.
Welcome.
Thank you we reached end of our question and answer session and ladies and gentlemen that does conclude today's teleconference and webcast. You may disconnect. Your lines at this time and have a wonderful day, we thank you for your participation today.
Speaker #6: And our apartment business, I should have mentioned, you know, is a lot of its premium that we're we're writing in the apartments is not in you know, the peak zones where where our condo business is.
Speaker #6: So it is helping diversify our folio from from an exposure management perspective. and you ow, we're we're appy to see that.
Speaker #10: Thank you. That is that that is helpful. And I guess I have one additional question. relative to the employee tax retention credit, you have now received all of the credits that ou'll be receiving, or are there still still some lingering out there that you are hoping to receive?
Speaker #6: I believe we've we've everything at this point. Lana, can you confirm that that's accurate?
Speaker #7: Yes, Brad, I confirmed all have been received.
Speaker #6: Thank you.
Speaker #10: Great. Thank you both.
Speaker #6: You're come.
Speaker #8: Thank ou.
Speaker #7: You're come.
Speaker #8: Thank you. We reach end our question and answer session. Ladies and gentlemen, that does conclude today's teleconferencing webcast. You may disconnect your es at this time and have a wonderful day.