American Coastal Insurance, formerly known as United Insurance Holdings, has entered into an equity distribution agreement under which it may offer and sell up to 8,000,000 shares of its common stock, potentially raising up to $69.12 million.
American Coastal shares began trading on the Nasdaq market under the symbol ACIC from August 15th, 2023, and on September 26th, 2023, the last reported sale price of its common stock was $8.64 per share.
The insurer has entered into the distribution agreement with Raymond James & Associates, Inc., and American Coastal says that it may offer and sell up to 8,000,000 of its shares from time to time via Raymond James, acting as agent.
According to a prospectus supplement filed with the sec, the property and casualty insurance holding company intends to use any net proceeds from the offering for general corporate purposes, including to create capacity for expanding specialty underwriting, and for the potential contribution to its statutory entities for capital adequacy purposes.
Primarily, American Coastal offers commercial and homeowners’ residential property insurance in Florida, and also personal residential insurance in New York.
Earlier this year, the company placed its reinsurance program for the ongoing 2023 Atlantic hurricane season, purchasing catastrophe XoL reinsurance up to an exhaustion point of $1.3 billion.
