Professional
Added to YB: 2023-08-09
Pitch date: 2023-08-09
ACIC [bullish]
American Coastal Insurance Corporation
+70.7%
current return
Author Info
Sohra Peak is a NY-based fund focused on undervalued small-caps with long-term potential. Follow the founder on Twitter.
Company Info
American Coastal Insurance Corporation, through its subsidiaries, primarily engages in the commercial and personal property and casualty insurance business in the United States.
Market Cap
$492.2M
Pitch Price
$7.51
Price Target
22.00 (+74%)
Dividend
N/A
EV/EBITDA
2.62
P/E
6.20
EV/Sales
1.03
Sector
Insurance
Category
value
Sohra Peak Holding - American Coastal Insurance Corporation (ACIC)
ACIC: Niche FL condo/HOA windstorm insurer. 40% market share, 23% avg ROE since 2007, never unprofitable despite major hurricanes. Relationship with AmRisc MGA key competitive advantage: best underwriting, broker dominance, high customer switching costs. Legal reform and hard market tailwinds. No major competition. 35% upside to $16-$22 in 2-3 years on earnings growth + return of capital. New MGA initiative could add significant value. Key risk is 1-in-154 year $1B+ hurricane loss.
Read full article (63 min)