Michael Burry’s Top 10 Stock Picks Heading into 2025

8) American Coastal Insurance Corporation (NASDAQ:ACIC)

Scion Asset Management’s Stake Value: $2,657,461

Number of Hedge Fund Holders: 15

American Coastal Insurance Corporation (NASDAQ:ACIC) operates as an insurance firm. It underwrites condominium and homeowner association properties.

In the recent earnings call, American Coastal Insurance Corporation (NASDAQ:ACIC) mentioned that the core catastrophe reinsurance program was renewed, with the anticipation to fuel revenue and earnings. Wall Street analysts believe that the company remains well-positioned to thrive in the insurance market, considering the forward-looking guidance which suggests positive growth in net income from continuing operations and net premiums earned.

Wall Street expects that the divestiture of Interboro Insurance Company should help in streamlining its operations.  This, along with American Coastal Insurance Corporation (NASDAQ:ACIC)’s proactive reinsurance strategy, should enhance the company’s market position. Its focus is mainly on low-rise commercial property insurance in Florida, with the help of its exclusive managing general agency agreement and long-term partnership.

American Coastal Insurance Corporation (NASDAQ:ACIC), the insurance holding company of American Coastal Insurance Company (“AmCoastal”), announced that AmCoastal entered into a 5-year extension of its exclusive Managing Agency Contract with AmRisc, LLC effective June 1, 2024, and expiring January 1, 2029.

American Coastal Insurance Corporation (NASDAQ:ACIC)’s continuous portfolio optimization process aims to balance risk appetite and underwriting profit opportunities with its available capital and reinsurance capacity in a bid to achieve consistent and sustainable underwriting profitability. Notably, deep underwriting expertise and strong reinsurance support are expected to act as tailwinds for the company in the near term.