ACIC
American Coastal InsuranceCDocument history
Earnings documents stored for ACIC.
Investor releaseQuarter not tagged2026-05-06American Coastal (ACIC) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
Zacks
American Coastal (ACIC) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
American Coastal Insurance (ACIC) reported $71.22 million in revenue for the quarter ended March 2026, representing a year-over-year decline of 1.4%. EPS of $0.39 for the same period compares to $0.42 a year ago. The reported revenue represents a surprise of -6.01% over the Zacks Consensus Estimate of $75.78 million. With the consensus EPS estimate being $0.44, the EPS surprise was -11.36%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how American Coastal performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Loss Ratio: 15.6% versus the two-analyst average estimate of 22%. Expense Ratio: 50.4% versus the two-analyst average estimate of 43.5%. Combined Ratio: 66% compared to the 65.5% average estimate based on two analysts. Net premiums earned: $65.61 million compared to the $74.8 million average estimate based on two analysts. The reported number represents a change of -3.9% year over year. Net investment income: $5.08 million versus the two-analyst average estimate of $5.18 million. The reported number represents a year-over-year change of +12.6%. View all Key Company Metrics for American Coastal here>>> Shares of American Coastal have returned +4.9% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Coastal Insurance Corporation (ACIC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-05-06American Coastal: Q1 Earnings Snapshot
Associated Press
American Coastal: Q1 Earnings Snapshot
SAINT PETERSBURG, Fla. (AP) — SAINT PETERSBURG, Fla. (AP) — American Coastal Insurance Corporation (ACIC) on Tuesday reported first-quarter profit of $19.3 million. On a per-share basis, the Saint Petersburg, Florida-based company said it had net income of 39 cents. The property and casualty insurance company posted revenue of $71.2 million in the period. American Coastal shares have dropped 6% since the beginning of the year. In the final minutes of trading on Tuesday, shares hit $11.87, a climb of nearly 2% in the last 12 months. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on ACIC at https://www.zacks.com/ap/ACIC
Investor releaseQuarter not tagged2026-05-06American Coastal Insurance (ACIC) Lags Q1 Earnings and Revenue Estimates
Zacks
American Coastal Insurance (ACIC) Lags Q1 Earnings and Revenue Estimates
American Coastal Insurance (ACIC) came out with quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -11.36%. A quarter ago, it was expected that this property and casualty insurance company would post earnings of $0.42 per share when it actually produced earnings of $0.51, delivering a surprise of +21.43%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. American Coastal, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $71.22 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 6.01%. This compares to year-ago revenues of $72.2 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. American Coastal shares have lost about 7.8% since the beginning of the year versus the S&P 500's gain of 5.2%. While American Coastal has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for American Coastal was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near...
Investor releaseQuarter not tagged2026-05-06American Coastal Insurance Q1 Earnings Call Highlights
MarketBeat
American Coastal Insurance Q1 Earnings Call Highlights
American Coastal reported a profitable Q1 with $19.3 million net income and a combined ratio of 66%, while management said the non‑GAAP underlying combined ratio remained around 68.3%, indicating stable underwriting margins. The June 1 catastrophe reinsurance renewal delivered risk‑adjusted cost decreases, raised the exhaustion point to over $1.6 billion, and shifted lower layers to an all‑perils structure with new cascading layers to add vertical and aggregate protection. The company began E&S operations in Q1 (about $6.2M assumed) and expects roughly $50–$80 million (management cited ~$70M written) of incremental E&S premium in 2026, with an AM Best‑rated fronting option targeted to be operational in Q3 and producing premium in Q4. Interested in American Coastal Insurance Corporation? Here are five stocks we like better. American Coastal Insurance (NASDAQ:ACIC) executives said the company delivered another profitable quarter while navigating what management described as a rapidly softening commercial property insurance market, highlighting stable underwriting margins, a completed June 1 catastrophe reinsurance renewal, and early progress in its excess and surplus (E&S) initiative. President and CEO Bennett Bradford Martz said American Coastal remained “patient and disciplined” as average account rate decreases pressured premium comparisons. Martz argued premium production “only tells part of the story,” pointing instead to retention, policy count, and exposures as indicators of market position. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook Martz said the company’s account retention was in line with targets and that policy count and exposure base increased at quarter-end compared with the same period a year ago, which he characterized as evidence the company is defending its market leadership position. Chief Financial Officer Svetlana Castle reported net income of $19.3 million for the first quarter of 2026. Castle said core income was also $19.3 million, down $1.4 million year-over-year due to decreased net premium earned, partially offset by lower total expenses. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Castle said the company’s combined ratio was 66%, up 1 point from 2025 and “in line with our previously stated target.” She added that the company’s non-GAAP underlying combined ratio—which excludes cu...
Investor releaseQuarter not tagged2026-05-06American Coastal Insurance Corporation Reports Financial Results for Its First Quarter Ended March 31, 2026
GlobeNewswire
American Coastal Insurance Corporation Reports Financial Results for Its First Quarter Ended March 31, 2026
Company to Host Quarterly Conference Call at 5:00 P.M. ET on May 5, 2026 The information in this press release should be read in conjunction with an earnings presentation that is available on the Company's website at investors.amcoastal.com/events-and-presentations. ST. PETERSBURG, Fla., May 05, 2026 (GLOBE NEWSWIRE) -- American Coastal Insurance Corporation (Nasdaq: ACIC) ("ACIC" or the "Company"), a property and casualty insurance holding company, today reported its financial results for the first quarter ended March 31, 2026. NM = Not Meaningful (1) In order to reconcile net income to the core income measures, the Company included the tax impact of all adjustments using the 21% federal corporate tax rate. (2) Core income and core income per diluted share, both of which are measures that are not based on generally accepted accounting principles ("GAAP"), are reconciled above to net income and net income per diluted share, respectively, the most directly comparable GAAP measures. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section below. Comments from President & Chief Executive Officer, B. Bradford Martz: “I’m pleased to report another profitable quarter for American Coastal. Our 66.0% combined ratio and 68.3% underlying combined ratio remain in line with our targets. More importantly, these ratios were consistent year-over-year, leading us to consistent earnings throughout the market cycle. While the commercial market continues through a soft cycle, periods like these create opportunities for carriers with discipline, patience, and a long-term view of value creation. We are being deliberate about where and how we deploy capital through selective partnerships, targeted classes of commercial property business, and leaning into AI in ways that will strengthen our competitive position without compromising underwriting standards. Our focus remains on building value through specialization, talent, and prudent risk selection so that American Coastal can successfully navigate a very dynamic marketplace.” Return on Equity and Core Return on Equity The calculations of the Company's return on equity and core return on equity are shown below. (1) Return on equity for the three months ended March 31, 2026 and 2025 is calculated on an annualized basis by dividing the...
TranscriptFY2026 Q12026-05-05FY2026 Q1 earnings call transcript
Earnings source - 58 paragraphs
FY2026 Q1 earnings call transcript
Greetings and welcome to the American Coastal Insurance Corporation's first quarter 2026 earnings conference call and webcast. At this time, all participants are in a listen-only mode. A question and answer session will follow a formal presentation. If anyone should require operator assistance during the conference, press star zero on your telephone keypad. As a reminder that this conference is being recorded. It is now my pleasure to turn the call over to your host, Jeremy Hellman, Vice President at The Equity Group and American Coastal Insurance Corporation. Thank you.
Thank you, operator, and good afternoon, everyone. 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. 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 Bradford Martz, and Chief Financial Officer, Svetlana 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 statements.
Factors that could cause actual results to differ materially may be found in the company's filings with the U.S. Securities and Exchange Commission in the Risk Factors section in our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and 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. Brad?
Thank you, and welcome, everyone. During the first quarter of 2026, American Coastal continued to be patient and disciplined in navigating a rapidly softening commercial property insurance market. Most of our risk portfolio continues to produce exceptional results, evidenced by our fantastic loss and combined ratios. Average account rate decreases are distorting comparability with gross premiums, but premium production only tells part of the story. Looking deeper reveals American Coastal's account retention was in line with our targets, and our policy count and exposure base actually increased at the end of the current quarter versus the same period a year ago. This is strong evidence that ACIC continues to protect and defend its market leadership position. The key to ACIC's long-term success has been our ability to maintain an adequate margin throughout the cycle.
Having a strong underlying combined ratio is what ultimately enables us to retain catastrophe risk and produce an acceptable risk-adjusted return on capital over time. Despite losing rate on the front end, we are maintaining margin because loss costs and reinsurance costs are also moving the right direction. I'm pleased to report that our June 1st, 2026 core catastrophe reinsurance program is effectively complete, and we are very pleased with the outcome. The key takeaways are, First, we were able to secure risk-adjusted reinsurance cost decreases that were necessary for us to remain both very competitive and profitable. Second, we increased our exhaustion point up to over $1.6 billion, expected to exceed the 250-year return time using the most recent version of Verisk's hurricane model, including demand surge and a 10% load for loss adjustment expenses.
Third, we have moved our lower layers to an all-perils basis that will allow us to non-renew the January first all other perils catastrophe reinsurance program next year while maintaining robust protection against potential non-hurricane CAT events. Lastly, we have more aggregate protection against frequency and severity resulting from a potentially active hurricane season. Pages 11, 12, and 13 of our earnings presentation provide some additional information regarding our reinsurance program renewals. For the core CAT in particular, American Coastal is still evaluating various retention options, and that is expected to be completed very soon. Once finalized, we will disclose more details regarding our hurricane retentions as well as the expected total cost of the 6/1 renewal. I want to personally thank our reinsurance partners for their incredible support and thoughtfulness as we keep moving forward together.
I'd like to now turn it over to our CFO, Lana Castle, for more specifics on our financial results.
Thank you, Brad, and hello. 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. As reflected on page five of the earnings presentation, American Coastal demonstrated another strong quarter with net income of $19.3 million. Core income was $19.3 million, a decrease of $1.4 million year-over-year due to decreased net premium earned, partially offset by decreased total expenses. Our combined ratio was 66%, an increase of 1 point from 2025 and in line with our previously stated target. Our non-GAAP underlying combined ratio, which excludes current year catastrophe losses and prior year development, was 68.3% compared to 68.2 in the prior year. We continue to demonstrate underwriting discipline through the market cycle, as indicated by our stable margin.
As shown on page six of our presentation, revenues and expenses remain consistent year-over-year. Other income decreased $900,000 in the current year, driven by non-recurring items in 2025. Net income from continuing operations remained relatively flat, decreasing $400,000 in the current year, inclusive of this non-recurring income. Page seven shows balance sheet highlights. Cash and investments decreased 7.5% from year-end to $599.4 million, driven by the payment of our previously declared special dividend of $0.75 per share of $36.6 million. The company's liquidity position remains strong. Stockholders' equity increased 4.5% to $331.7 million, driven by our underwriting results. Book value per share is $6.86, a 5.4% increase from year-end 2025.
The company is well-positioned to navigate the shifting market and capitalize on opportunities as they present themselves. I will now turn it over to Brad Martz for closing remarks.
Thank you, Lana. Today, we estimate we have between $150 million and $200 million of excess capital in our company. That provides us with tremendous strategic and financial flexibility moving forward. Margins remain solid. We are obviously losing some premium on the front end, but with earnings, pre-tax earnings essentially being flat year-over-year, and maintaining a strong combined ratio, we feel like that is representative of the disciplined underwriting we continue to do here at American Coastal Insurance. That concludes our prepared remarks for today. We are happy to field any questions at this time.
Thank you. If you'd like to ask a question, press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star followed by two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from Michael Phillips with Oppenheimer & Company. Please state your question.
Yeah, thanks. Good evening, everybody. Maybe a first couple questions, Brad, around just the impact, I guess, for modeling purposes of the new reinsurance. How should we think of, I mean, a lot of moving parts here, right? How should we think about, I guess, on a consolidated basis, maybe either just the net to direct, net to gross premiums, this year and maybe even next year, maybe more so this year, as compared to what it was in 2025?
Mike, thanks for your question. We appreciate that. I would prefer to defer that question until we've finalized our ultimate retention decisions, only because I think that has an impact on ceded premiums as well as, you know, how to model losses in the second half of the year. We are very close. We're hoping to have that finalized before today's call. While the program excess of $50 million is essentially done, we are looking at various cost benefit analyses of reducing likely, you know, second and third event retentions to ensure that we are remaining profitable in a three-loss scenario. That has been one of our primary goals to make sure we can maintain underwriting profitability even with three full retention events in Florida.
I think it's probably a little early. We can still suggest and refer you to the full year guidance that remains unchanged at this time. I think that is, you know, the best estimates we can provide at this moment. After the second quarter, you know, it is possible we'll want to revisit that guidance. Not at this time.
Okay, good. I guess maybe I was going to ask this later, but since you mentioned it, the first quarter results so far don't give any reason to change the revenue guidance that you gave earlier?
No. Second quarter is our strongest premium production quarter of the year. It has, you know, the potential to, you know, essentially make or break that guidance. I want to be cautious in potentially using to, you know, the first three months of the year to revise our estimate for the full year. For right now, we're still striving for those estimates on a full year basis. It will depend on, you know, how strong the second quarter is.
Okay. Yeah, no, that makes sense. Thanks, Brad. Can you I guess remind where you see the opportunities for the E&S carrier? I think it's mainly just if I'm right here, Texas and Florida for now. Is that right? Then kind of just longer term, just thoughts on how you see that expanding.
Yeah, absolutely. You know, we finally assumed some E&S business in the first quarter. It's about $6.2 million of E&S premium that came in through our participation on the AmRisc E&S portfolio, which we were excited about. That does still track with our initial full year guidance, although, you know, anything could happen. It could certainly come in above that or below that. Where we're seeing opportunities for Skyway is really going to be dependent on market conditions. We're evaluating all classes of commercial property very, very carefully. Our core products in both condominiums, apartments, and assisted living facilities are where we're going to lead. We're gonna continue to focus on properties with risk characteristics that are very similar to our portfolio in Florida.
We are also working with various fronting partners to stand up a fronted AM Best rated option for use in Florida and outside of Florida for Skyway to have additional underwriting capacity that will likely produce some premium by the fourth quarter. We're still in the process of setting that up. Hope to have it operational in the third quarter with premium production starting in the fourth quarter. Not a huge uplift from E&S via Skyway Underwriters in 2026. It's more of a 2027 initiative. I think most of our E&S premium, you know, somewhere between $50 million and $80 million is going to be coming from the assumption of and co-participation on the AmRisc portfolio for 2026.
Yeah, perfect. Thank you. That's very helpful. Thanks, Brad. Maybe just lastly on the loss or expense side. Your G&A expense kind of averages around $10 million or $11 million a quarter. Any reason to think that could change any time over the next year or so, either direction?
No, it's been relatively stable. Obviously, we had some non-recurring benefits in the prior year that are distorting the expense ratio in the current period. As far as our fixed costs, we've got a very good handle on those and, you know, have a strategy to continue to try and do more with less. You know, we're gaining some operating efficiencies through various uses of technology and AI tools, which we're super excited about. It's very premature to actually get into any real details. You know, our mantra, one of our strategic objectives for this year was to operationalize AI, and we're off to a very good start.
Okay. No, awesome. Thanks, and congrats on those strong margins. Appreciate your time.
You're welcome.
Your next question comes from Mitchell Rubin with Raymond James. Please state your question.
Hey, good afternoon, guys. We've heard some market rhetoric around increasing competition in Florida. Can you provide some color on the trends you're seeing with retention levels on renewals and new business?
Yeah. Retention, historically in our business, Mitch, has been between, you know, 75% and 95%. That's where we target account retention, with kind of the sweet spot being in the low to mid-80s. It was slightly below that in the first quarter, but well within our targeted range. We saw it bounce back pretty nicely in March after, you know, we made a voluntary decision to walk away from a few large, very large accounts in January, where we did see some, what I would consider to be reckless competition come in and significantly undercut, both on price and on deductible, which was, you know, just not consistent with how we underwrite.
We're gonna be disciplined in those situations and cede market share to those willing to burn their way into the market. It's rare that that's happening. It's not a daily occurrence. I would say competition and capacity is obviously robust, but most of that is healthy competition, and we're doing a good job of defending our market leadership position, as evidenced by the fact that, you know, our policy count and our exposure base is relatively stable. It is tough flooding out there, no question about it. What we feel very good about our ability to compete moving forward given the job we've done on the reinsurance renewal. The risk-adjusted cost decreases there.
Again, I'm gonna refrain from giving specific numbers today, but right now they are exceeding our average year-over-year average premium changes. With reinsurance costs in line or better than what we're losing on the front end with our rates, it will continue to allow us to compete very aggressively and maintain our best accounts.
Well, thank you for the color there. That's very helpful. Sticking with the reinsurance renewal, can you walk us through some of the more meaningful structural changes in the renewal, relative to last year's program?
Yeah, I'll reiterate them again for you in case you wanna dive into more details. Just, you know, stop me and let me know. We have more overall limit. That's number one. Introducing some new cascading layers that, you know, work like a top and drop where it's you've got a lot more vertical limit for a first event, yet a more aggregate limit for second and subsequent events, assuming those layers, you know, are not eroded. The increased protection for both frequency and severity is extending return times, you know, even higher year-over-year. We feel very good about it, whether you're looking at it from a first event, a second, or a third event perspective.
Some more robust coverage, at a very attractive risk-adjusted rate decrease. Combined with, I guess, the third-biggest change is the movement to an all perils tower away from a hurricane-only tower. Historically, we had separated the non-hurricane and the hurricane risk because of the noise and the volatility associated with our old discontinued personal lines business. We just have exceptional loss experience when it comes to the SCS, severe convective storm stuff. It made perfect sense for us to think about including the lower layers, placing the lower layers on an all perils basis.
You know, that way that would save us approximately $4 million by non-renewing the layers excess of $50 million on the AOP CAT renewal at 1/1. You know, we'll certainly obviously consider various options within our retention, you know, with that renewal because there's still some additional spend there. In total, that program was about $11 million, if I remember correctly. There's still significant spend there to manage the potential frequency and severity of non-hurricane CAT. We're trying to drive simplicity and standardization across the board with this risk transfer approach. We got a lot more overall limit out of our gross CAT quota share as well.
While we're maintaining the 15% cession rate with, you know, earned premiums going down in this part of the cycle, we are actually, you know, technically shrinking that reinsurance spend via the quota share. We view that as a positive. We're very happy with where we landed this year.
That was great. Really helpful. Thanks for the answers.
Your next question comes from Bill Dezellem with Tieton Capital. Please state your question.
Thank you. Would you please go into a bit more detail on the new initiatives that you're doing on the E&S front and the timing on when that may lead to total American Coastal growth?
Sure. Hi, Bill. Reiterating timing, obviously we got E&S kicked off in the month of March with the initial $6.2 million of written. Full year is still, like I said, somewhere going. It's going to depend on how much capacity AmRisc can put to work, right? We've given them a certain amount of capacity. They're fighting hard to win and write quality business. You know, I would expect that number's going to add about $70 million in E&S premium to our company this year that we did not have last year. That's solid new growth coming from that segment.
For 2027 and beyond, I think it's gonna look very similar to what we've done with apartments, where you could expect, you know, $20 million-$30 million annually of new business, through a thoughtful, sort of very disciplined approach to finding niches where we know how to compete, we know how we're gonna win, and we can earn an attractive return on capital. Some of that is obviously market dependent and, you know, what's going on with terms and conditions, for sure. You know, if market changes, maybe we can do a lot more, a lot faster.
In giving current market conditions and our outlook for where markets are headed, especially if this is a relatively benign hurricane season, which is forecast, given the current prediction for a super El Niño year, you know, it could be slower for us to attract and write new business.
That may be the first time that I've ever heard a quasi, a plea for more hurricanes.
I wouldn't go that far. We don't wish that on anybody. Yeah, I mean, it would chase off some of the capacity that's out there doing irresponsible things and maybe firm up pricing a little bit, which would give us, you know, some more comfort and margin for error as we branch into the new territories with our core products. We're very confident in our ability to compete both in and outside of Florida, but we have underwriting experience in places like Texas and South Carolina with commercial residential. We've been there before. We've got a good game plan. Yeah, sometimes, you know, you just gotta be patient with the insurance cycle.
Thanks, Brad. All joking aside, I want to make sure I'm getting an apples to apples comparison here. This quarter you had $65 million of net earned premiums. When you're talking about the $70 million of E&S premium with AmRisc this year, that would essentially be equivalent to that number or set enough to add quarter, the equivalent of one additional quarter to your business revenue.
Not quite because I was mixing and matching written and earned a little bit here. I was talking about written with the $70 million target currently. Again, which could go up, which could go down, that's written. On an earn basis, I would expect about half of that to earn this year.
Thank you for the clarification. Very good point. Assuming that you had 100% retention or additional new business next year, both of which are faulty assumptions, but if that were the case, statement would hold for 2027, that would essentially be the equivalent of an additional quarter.
I think that's fair. I do think, again, with current assumption of continued soft market conditions, you know, we can expect, you know, reinsurance costs to be ultimately very competitive. We still have tools in our arsenal to manage the ceded premium that would potentially allow for even more growth on a net premium earn basis after reinsurance spend. Depending on our risk appetite and what's going on with the cost of reinsurance capital, I do think the outlook gets even better given some of those elements that are within our control. We'll have to wait and see. Yes, ideally, we'd like to be growing revenues and earnings at all times. That's ideal.
That's just not something, you know We're not gonna be focused on growing top line in a market that where you won't like the results if we do it.
No, that's, I really appreciate both that and the perspective of how those premiums are ultimately flowing in and the implications that could have. Thank you very much.
You are welcome.
Thank you. Your next question comes from [Akshay Fola], private investor. Please go ahead.
Hello, Brad. I had a question on capital allocation. You mentioned $200 million of having $200 million of excess capital, and we only see about $5 million of stock purchases in Q1. I understand there's probably an additional $20 million of repurchases authorized that could be done. Can you please expand on the reasoning for, you know, leaving behind only doing $5 million of stock purchases with $200 million of excess capital? Thank you.
Yes. Thanks for your question. It's a good one. We certainly have excess capital in the system, between our statutory ordinary dividend capacity, the amount of equity and capital we've amassed in our captives as well as the unregulated unrestricted cash we have on hand. We're being a little cautious about share repurchase primarily because of the fact that it would further reduce the outstanding float, which and the liquidity in our stock. I think that's one we really would prefer to maintain for severe potential dislocation in the price. The stock is still very cheap and by almost any measure, it is attractive to us.
We could see some additional use of that board authorization in the second half of the year. I definitely don't wanna rule that out, but we also have to be in an open trading window. Open the window for us has been closed and is generally closed half of every quarter. There's that constraint as well. I think share buybacks are definitely on the table for discussion as is debt reduction and special dividends to shareholders. A lot of that will depend on timing, what's going on with interest rates, what happens with, you know, our results for the full year. We'll be mindful and watch that stock price.
If it gets too cheap, you know, that's something we will give serious consideration to.
Thank you. Just to like comment on that. You know, like, looking at where the share price is traded, it's kind of like the chicken or the egg problem. Once you know the market gets clarity on the next hard market or rates increasing or the actual growth trajectory of the company, the price tends to go up. Doing buyback during those times, you know, it just increases your cost of capital. Whereas now we have uncertainty on the rates. The share price for that reason is trading or one of the reasons why it's trading where it is. Like, you have the best opportunity by doing these terms.
You know, like, it's that balance, I'm sure which you understand. Yeah. Just wanted to kind of comment on that. Thank you. Thank you for your time.
Yeah. All fair points. You're welcome. Thank you.
Thank you. Ladies and gentlemen, that was our last question for today. With that, we will conclude today's call, and all parties may disconnect. Thank you and have a good day.
Investor releaseQuarter not tagged2026-04-22American Coastal Insurance Corporation Schedules First Quarter Financial Results and Conference Call
GlobeNewswire
American Coastal Insurance Corporation Schedules First Quarter Financial Results and Conference Call
ST. PETERSBURG, Fla., April 21, 2026 (GLOBE NEWSWIRE) -- American Coastal Insurance Corporation (Nasdaq Ticker: ACIC) (“the Company”, “American Coastal” or “ACIC”), the insurance holding company of American Coastal Insurance Company (“AmCoastal”), announced today that it expects to release its financial results for the first quarter ended March 31, 2026, on Tuesday, May 5, 2026, after the close of the market. Its quarterly conference call will be held immediately thereafter, on Tuesday, May 5, 2026, at 5:00 p.m. ET. The conference call will include live remarks followed by a question and answer (Q&A) session. Interested parties are invited to participate in the conference call and should dial-in ten (10) minutes before the conference call is scheduled to begin. First Quarter 2026 Conference Call Details: Tuesday, May 5, 2026 – 5:00 p.m. ET Participant Dial-In Numbers: United States: 877-445-9755 International: 201-493-6744 To listen to the conference call via webcast, please visit the Company's website and click on the webcast link at the top of the page or click here. The webcast will be archived and accessible for approximately 30 days following the call. About American Coastal Insurance Corporation: American Coastal Insurance Corporation (amcoastal.com) is the holding company of the insurance carrier, American Coastal Insurance Company, which was founded in 2007 for the purpose of insuring Condominium and Homeowner Association properties, and apartments in the state of Florida. American Coastal Insurance Company has an exclusive partnership for distribution of Condominium Association properties in the state of Florida with AmRisc Group (amriscgroup.com), one of the largest Managing General Agents in the country specializing in hurricane-exposed properties. American Coastal Insurance Company has earned a Financial Stability Rating of “A”, Exceptional’ from Demotech, and maintains an “A-” insurance financial strength rating with a Positive outlook by Kroll. ACIC maintains a ‘BBB-’ issuer rating with a Positive outlook by Kroll. Contact Information: Alexander Baty Vice President, Finance & Investor Relations, American Coastal Insurance Corporation [email protected] (727) 425-8076 Jeremy Hellman Investor Relations, Vice President, The Equity Group [email protected] (212) 836-9626
Investor releaseQuarter not tagged2026-02-20Here's What Key Metrics Tell Us About American Coastal (ACIC) Q4 Earnings
Zacks
Here's What Key Metrics Tell Us About American Coastal (ACIC) Q4 Earnings
For the quarter ended December 2025, American Coastal Insurance (ACIC) reported revenue of $86.38 million, up 9% over the same period last year. EPS came in at $0.51, compared to $0.12 in the year-ago quarter. The reported revenue represents a surprise of +3.56% over the Zacks Consensus Estimate of $83.41 million. With the consensus EPS estimate being $0.42, the EPS surprise was +21.43%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how American Coastal performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Loss Ratio: 12.5% compared to the 23.8% average estimate based on two analysts. Expense Ratio: 46.1% compared to the 45% average estimate based on two analysts. Combined Ratio: 58.6% versus 68.8% estimated by two analysts on average. Net premiums earned: $79.32 million versus the two-analyst average estimate of $76.91 million. The reported number represents a year-over-year change of +7.9%. Net investment income: $5.49 million versus the two-analyst average estimate of $5.8 million. The reported number represents a year-over-year change of +3.1%. View all Key Company Metrics for American Coastal here>>> Shares of American Coastal have returned -2.1% over the past month versus the Zacks S&P 500 composite's -0.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Coastal Insurance Corporation (ACIC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-02-20American Coastal Insurance Q4 Earnings Call Highlights
MarketBeat
American Coastal Insurance Q4 Earnings Call Highlights
American Coastal beat guidance, reporting full-year net income of $106.8 million and low combined ratios (58.6% Q4, 60.1% FY), lifting book value per share ~33% to $6.51 and enabling a $0.75 special dividend. Written premiums fell about 19% year-over-year due to rate decreases but rebounded ~59% sequentially in Q4; management is intentionally selective—walking away from risks that don’t meet return hurdles—while noting reinsurance costs are trending lower. The company is pursuing growth in the E&S market via its ACES unit (expected to be ≤5% of 2026 revenue) and a two-year AmRisc partnership targeting roughly $100 million of premiums, even as cash and investments rose to $647.7 million and management aims to reduce leverage over time. Interested in American Coastal Insurance Corporation? Here are five stocks we like better. American Coastal Insurance (NASDAQ:ACIC) executives said the company delivered strong fourth-quarter and full-year 2025 results, aided by lower catastrophe losses compared with the prior-year period and supported by what management described as continued underwriting discipline amid a more competitive commercial property market. President and CEO Bennett Bradford Martz told investors that the company’s full-year net income of $106.8 million exceeded its initial 2025 guidance range of $70 million to $90 million. Martz also noted that over the last three years the company produced more than $336 million of pre-tax profits and returned more than $60 million to shareholders through special dividends. → Corning’s Surprise AI Boom: Is It Already Too Late to Buy? CFO Svetlana Castle reported fourth-quarter 2025 net income of $26.6 million and core income of $25.8 million. She attributed the year-over-year core income increase primarily to a $20.5 million decrease in incurred losses, noting that Hurricane Milton made landfall in the fourth quarter of 2024 and drove catastrophe losses that hit the company’s retention that year. For the full year, Castle said net income was $106.8 million and core income was $103.7 million, an increase of $26.8 million. The company’s combined ratio was 58.6% for the quarter and 60.1% for the full year. American Coastal’s non-GAAP underlying combined ratio—excluding current-year catastrophe losses and prior-year development—was 58.9% for the quarter, down 7 points from the prior year, and 61.5% for the full year, wh...
Investor releaseQuarter not tagged2026-02-20American Coastal Insurance Corporation Q4 2025 Earnings Call Summary
Moby
American Coastal Insurance Corporation Q4 2025 Earnings Call Summary
Full year net income of $106.8 million exceeded the high end of initial guidance, driven by a lack of hurricane activity and strong specialty underwriting performance. Strategic transformation over the last three years has produced over $336 million in pretax profits, supported by Florida's legislative reforms which have reduced reinsurance costs and incurred losses. Premiums written declined 19% year-over-year due to rate decreases and intentional exposure management to meet annual loss targets, though premiums rebounded 59% sequentially from Q3 2025. Management is maintaining strict underwriting discipline, choosing to walk away from risks that no longer meet return on capital hurdle rates in a softening market environment. The company is pivoting toward the E&S market to create new revenue pathways, leveraging technical expertise in commercial residential property without chasing growth for growth's sake. Revenue growth was significantly bolstered by stepping down the gross catastrophe quota share from 20% to 15% in mid-2025, following a prior step down from 40% to 20% in 2024. The new E&S entity, ACES, is expected to contribute 5% or less of total 2026 revenue as it initially operates as a collateralized reinsurer pending A.M. Best rating. Management expects premium production to remain challenging in the short term due to softer market conditions and a risk appetite highly correlated to modeled returns. A new partnership with AmRisc is expected to produce over $100 million in full-year premiums from a nationwide commercial E&S property portfolio starting in March 2026. The company aims to reduce financial leverage by the end of 2027, targeting a total debt level between $50 million and $75 million upon refinancing. Future margin protection will depend on successfully pushing for reinsurance and loss cost reductions commensurate with falling premium rates during the June 1 renewal cycle. The underlying combined ratio of 61.5% for the full year outperformed the company's 65% target, reflecting high-quality organic earnings. A special dividend was declared, bringing total capital returned to shareholders to over $60 million in the last three years. Regulatory approval for the ACES entity in Arizona remains pending, with the certificate of authority still under review following the completion of background checks. Management views the current stock price as...
Investor releaseQuarter not tagged2026-02-20American Coastal Insurance Corporation Reports Financial Results for Its Fourth Quarter and Year Ended December 31, 2025
GlobeNewswire
American Coastal Insurance Corporation Reports Financial Results for Its Fourth Quarter and Year Ended December 31, 2025
Company to Host Quarterly Conference Call at 5:00 P.M. ET on February 19, 2026 The information in this press release should be read in conjunction with an earnings presentation that is available on the Company's website at investors.amcoastal.com/events-and-presentations. ST. PETERSBURG, Fla., Feb. 19, 2026 (GLOBE NEWSWIRE) -- February 19, 2026: American Coastal Insurance Corporation (Nasdaq: ACIC) ("ACIC" or the "Company"), a property and casualty insurance holding company, today reported its financial results for the fourth quarter and year ended December 31, 2025. Comments from President & Chief Executive Officer, B. Bradford Martz: “We're proud to have finished the year with earnings of $26.6 million for the quarter and earnings of $106.8 million, or $2.15 per share for the full year, exceeding our 2025 guidance. Net premiums earned were in line with our 2025 guidance, contributing to revenue growth of 13.1% year-over-year. Our underwriting results remain strong, with both our quarterly and full year underlying combined ratio outperforming our 65% target. American Coastal continues to strengthen its liquidity position and grow its book value meaningfully, while rewarding shareholders with special dividends each of the last two years. The Company remains strategically positioned to deliver long-term value creation and execute on our growth initiatives moving forward.” Return on Equity and Core Return on Equity The calculations of the Company's return on equity and core return on equity are shown below. Combined Ratio and Underlying Ratio The calculations of the Company's combined ratio and underlying combined ratio are shown below. Combined Ratio Analysis The calculations of the Company's loss ratios and underlying loss ratios are shown below. The calculations of the Company's expense ratios are shown below. Quarter to Date Financial Results Net income for the fourth quarter ended December 31, 2025 was $26.6 million, or $0.53 per diluted share, compared to net income of $4.9 million, or $0.10 per diluted share, for the fourth quarter ended December 31, 2024. Drivers of the favorable change in net income during the fourth quarter of 2025 included decreased losses and LAE compared with the fourth quarter of 2024 as Hurricane Milton made landfall. During the fourth quarter of 2024, the Company's net loss attributable to discontinued operations was $922 thous...
Investor releaseQuarter not tagged2026-02-20American Coastal Insurance Corp (ACIC) Q4 2025 Earnings Call Highlights: Strong Net Income and ...
GuruFocus.com
American Coastal Insurance Corp (ACIC) Q4 2025 Earnings Call Highlights: Strong Net Income and ...
This article first appeared on GuruFocus. Release Date: February 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. American Coastal Insurance Corp (NASDAQ:ACIC) reported a strong net income of $106.8 million for the full year, exceeding their initial guidance of $70 to $90 million. The company achieved a combined ratio of 58.6% for the quarter and 60.1% for the full year, indicating strong underwriting performance. ACIC's cash and investments grew by 19.8% in 2025, reflecting a robust liquidity position. Stockholders' equity increased by 34.8% since year-end, driven by strong underwriting results. The company returned over $60 million to shareholders through special dividends over the last three years, showcasing a commitment to shareholder value. Premiums written declined by 19% year over year due to rate decreases, despite a 59% rebound compared to the third quarter of 2025. The competitive environment in the commercial property insurance market remains challenging, impacting premium production. The debt to total capital ratio stands at 32%, above the company's long-term target of around 25%. The expansion into new markets such as South Carolina and Texas may result in slightly higher combined ratios compared to the Florida book. The company's new entity, ACES, is still pending regulatory approval, which could delay its contribution to revenue growth. Warning! GuruFocus has detected 1 Warning Sign with ACIC. Is ACIC fairly valued? Test your thesis with our free DCF calculator. Q: Can you comment on the gross premium results this quarter, which were down around 19%, and the rate environment? A: (Brad Martz, CEO) Quarter over quarter, premium rebounded almost 60%, which we are satisfied with. The slowdown was intentional to manage exposure limits, and while October started slow, we are maintaining discipline in a challenging market. We are confident in our revenue guidance for 2026 despite the volatility in written premiums. Q: How are you prioritizing deleveraging, funding ACEs, and potential capital return in 2026? A: (Brad Martz, CEO) The debt matures at the end of 2027, so there's no immediate need to address it. Our focus is on earning an underwriting profit and increasing shareholder equity. We plan to reduce financial leverage over time and may consider share repurchases if the stock remains...