AMERICAN COASTAL INSURANCE Corp

(q)Concentrations of RiskOur current operations subject us to the following concentrations of risk:•a concentration of revenue because we write only property insurance policies;•a concentration of revenue because we source 97% of our commercial lines business from AmRisc, LLC (AmRisc);•a geographic concentration resulting from the fact that 100% of our business is in Florida;•a group concentration of credit risk with regard to our reinsurance recoverable, since all of our reinsurers engage in similar activities and have similar economic characteristics that could cause their ability to repay us to be similarly affected by changes in economic or other conditions; and•a concentration of credit risk with regard to our cash, because we choose to deposit all of our cash at five financial institutions.We mitigate our geographic and group concentrations of risk by entering into reinsurance contracts with financially stable reinsurers, and by securing irrevocable letters of credit from reinsurers when necessary.With regard to our cash balances held at financial institutions, we had $291,030,000 and $196,930,000 in excess of Federal Deposit Insurance Corporation insurance limits at December 31, 2025 and 2024, respectively.