ACIC

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5:00 p.m. ET President and Chief Executive Officer - Bennett Bradford Martz Chief Financial Officer - Svetlana Castle Vice President, Finance and Investor Relations - Alexander Baty Operator: Hello, everyone. Thank you for joining us, and welcome to the American Coastal Insurance Corporation Q2 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Bennett Bradford Martz, President and CEO. Brad, please go ahead. B. Martz: Thank you. 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. For more information regarding these statements, please note the language on Slide 2 of our earnings presentation. During the second quarter of 2026, American Coastal continued to maintain its market leadership position in Florida commercial-residential property insurance, but also experienced continued downward rate pressure, causing gross premiums written to decrease roughly 5% compared to the same period a year ago. Some minor non-hurricane catastrophe losses incurred of approximately $3.1 million also impacted comparability with the prior year, given the lack of any such losses in 2025. Despite top and bottom line compression year-over-year, our underlying combined ratio of 68.7% was very respectable, as was the 26.6% return on equity in the current quarter. During the open window -- trading window, that is, in the second quarter, the company repurchased nearly 1.4 million shares of its common stock, bringing the year-to-date total shares repurchased to just over 1.8 million. And I'm happy to announce that the Board of Directors has increased our authority to buy back up to roughly $30.6 million worth of our common stock in the future. Our earnings presentation was revamped this quarter with the intent to improve the messaging around what makes ACIC special. I strongly encourage anyone looking to learn more about our company to read that document each period along with our other filings. As disclosed on Page 9 of our earnings presentation, we recently seized an opportunity to reduce our first event hurricane retention from $49 million to only $23.5 million before income tax, effective August 1. The outlook for hurricanes making landfall in Florida this year, along with continued softening of reinsurance pricing, allowed us to mitigate downside risk from potential hurricanes this year. This change is further evidence that ACIC is continuously monitoring the market and always on the lookout for opportunities to improve our risk-adjusted performance. For the sake of clarity, our reinsurance strategy is to buy more protection when pricing is cost-effective and retain more risk on our balance sheet when it's not. Our second and third event retentions remain unchanged at $25 million and $2 million, respectively. Thus, we are confident to state that American Coastal should remain profitable this year, even with 3 full retentions. Lowering American Coastal's potential risk from hurricanes improves the overall quality and reliability of our earnings and cash flows. Accordingly, our earnings guidance for the full year currently remains unchanged at $85 million to $100 million, inclusive of net average annual losses expected from catastrophes. Actual earnings before income tax could be higher or lower, depending on actual catastrophe frequency and/or severity. Conversely, our guidance for total revenue is being revised downward to between $300 million and $320 million, given the trajectory of the current pricing environment. Without any significant hurricane losses or other surprises this year, we believe that rates, deductibles, and policy acquisition costs will likely remain under pressure into 2027, but this is likely to be partially offset by lower reinsurance costs. We remain committed to writing new business and looking for intelligent ways to grow. But ACIC will continue to prioritize underwriting profitability as our primary strategic objective. I'd like to now turn it over to our CFO, Lana Castle, for more specifics on our financial results. Lana? Svetlana Castle: 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 7 of the earnings presentation, American Coastal demonstrated another strong quarter with net income of $21.9 million. Core income was $16.5 million, a decrease of $10.3 million driven by softening market conditions, and one-time benefits in the prior year totaling $4.2 million. Gross written premiums are down 5.3% from 2025, with $22.5 million (sic) [ $28.7 million ] of assumed E&S premium offsetting decreases in our direct premiums. Our combined ratio was 74.3%, an increase of 13.7 points from 2025, but in line with our expectations as we navigate the soft market cycle. Our non-GAAP underlying combined ratio, which excludes current year catastrophe losses and prior year development, was 68.7% compared to 62.2% in the prior year. We continue to demonstrate underwriting discipline through the market cycle. Page 16 shows balance sheet highlights. Cash and investments increased $2.3 million, inclusive of our previously declared special dividends of $0.75 per share, or $36.6 million. The company's liquidity position remains strong. Stockholders' equity increased $23.2 million or 7.3% to $340.8 million driven by our underwriting results. Book value per share is $7.21, a 10.7% increase from year-end 2025. This concludes our prepared remarks. We'll now open the floor for questions. Operator: [Operator Instructions] The first question comes from the line of Mitchell Rubin with Raymond James. Your line is open. Please go ahead. Mitchell Rubin: This is Mitch on for Greg. On the first event retention buydown, I appreciated the rationale you provided. What did it cost, and with the new authorization in place, how does the lower retention factor into capital return for the rest of the year? B. Martz: Mitch, thanks for your question. This is Brad. The cost was approximately $8.4 million. So about $4 million of that will be expensed as ceded earned this year from August to December, and the other -- the remainder as ceded earned from January through May 31. So we'll spread that cost over the 10-month period. And I think it factors favorably into the prospect for a special dividend. Obviously, we've stated that if we're profitable and earning sufficient returns on capital and we feel like we have excess capital, the prospect for a special dividend remains good. And considering we've been profitable all 18 years of our operations since our inception in 2007 with this year expecting to be in the 19th consecutive year of underwriting profitability. This should help guarantee the -- a special dividend is declared, but how big is undetermined at this time. Mitchell Rubin: For my second question, so this quarter had around $767,000 of unfavorable reserve development. Could you provide any color on where that showed up and whether it's an area that could be recurring? B. Martz: We don't believe it's recurring. It really all stemmed from a single claim from the 2019 accident year. It was one of our last remaining sinkhole losses that just slightly was above or beyond our excess per risk reinsurance coverage. So unfortunately, the net result was a slight impact to adverse reserve development. But aside from that, the quarter was in line with all other periods. And I fully expect we'll have favorable development for the full year. So nothing to worry about with reserves. Operator: The next question comes from the line of [ Dalton Willett ] with [ Sharmus Capital Partners ]. Unknown Analyst: Just a quick question on some of the market share dynamics. Comparing the same quarter last year, it looks like policy count is slightly up. Can you talk a little bit about where you're at with market share gains or losses and how you guys are thinking about that dynamic? B. Martz: Dalton, sure. Yes, you are correct. Policies in force and total insured value in force as of June 30, 2026, was -- they were both up roughly between 3% and 4% year-over-year. So we're maintaining the exposure base. That is not the problem. Account retention improved over the first quarter, so it was right around 85% for the second quarter. It's very much right where we want it to be. And we've been actively writing new business to help fill in the gaps. So we still see attractive opportunities in the market. Our technical model price is still above historical levels on most of the risks we see. So we're being cautious, definitely more cautious, but it's all about premium retention right now. We don't control the market forces and dynamics. All we can do is try and build the best risk portfolio around those dynamics. But yes, we're maintaining or maybe even growing our market leadership position and feel good about that. I don't feel good about the decline in average premium, but that's going to go up and down over time. Unknown Analyst: Yes, absolutely. And then can you talk a little bit about the $30 million roughly contribution from the new E&S venture with the ACES co-participation and what you guys are seeing there? And if you're still thinking $70 million to $80 million for the full year '26? B. Martz: Yes, it's going fine. This was probably a little bit behind expectations. I don't believe for the full -- when you talk about the full year, when we said what we thought that $70 million would encompass a full 12 months. So if you're thinking calendar year, it's probably going to be closer to $50 million for the full year, somewhere along those lines. But yes, for the first 12 months, we would expect it to be somewhere between $60 million and $70 million. It could be more, it could be less. AmRisc is working extremely hard to find quality risks to utilize that capacity and they're doing a good job. They're fighting the same fight. We're fighting with rate decreases and erosion of other terms and conditions, but they're disciplined underwriters too. We've got a lot of trust and faith in them. And the revenue will be very important to help offset weakness in our core condominium book of business. But the reality is, our mind is always on the bottom line, not the top line. We'd love -- like I said at the intro, we'd love to grow and find attractive opportunities to grow, but we're only going to do so if we can earn an acceptable return on capital. Unknown Analyst: And then last one if I can. Next year you guys have the senior notes coming due. I know there's been talk of refinancing, you may not need to keep all of that. So can you talk a little bit about how much of that you might plan on refinancing? And then, some debt-to-cap ratio that would take you -- say if you only kept $50 million of that, you would be nicely below your 20% to 25% debt-to-cap target. Is that kind of the plan to get there from here? B. Martz: Yes, it is. We still believe a 20% debt-to-capital ratio, 20% or less I should say is appropriate for a company with our earnings power and risk profile. So depending on interest rates, we're exploring traditional bank debt. We're exploring the bond market. We're exploring all avenues and would expect to get a refinance done within the next 6 to 12 months. So we would prefer to have this put to bed and taken care of prior to the next hurricane season to mitigate any risk of storms impacting our ability to refinance. But our current plan is to cut the debt in half. That's -- the current outlook is to reduce the outstanding long-term debt from $150 million to $75 million. And we've got the cash on hand today to do that. Unknown Analyst: Congrats on another strong quarter. Operator: The next question comes from the line of Matt Dhane with Tieton Capital Management. Matthew Dhane: It's Tieton Capital Management. I did want to ask, the multifamily apartment initiative that you folks have rolled out, how has that developed relative to your expectations? And help me understand how the competitive landscape has been for that new focus area? B. Martz: Yes, certainly. Happy to do so. The apartment, multifamily and assisted living facility is definitely on the disappointing side. We are currently running into challenges with -- by not having an AM Best rating. We plan to solve for that by -- through the formation of ACES specialty, which we have already commenced discussions with AM Best about getting that rated this year once it's fully capitalized and licensed. And secondarily, we're also evaluating various fronting relationships, including the structure we already have in place with Fortegra to potentially give Skyway access to AM Best-rated paper of sufficient quality and size to access that risk. The brokers love American Coastal. We've been told that over and over. There's nothing wrong with our product, nothing wrong with our company. But the lenders you have strict security requirements around the AM Best rating. And unfortunately, we've lost some business to mid-term cancellations because of that. And that has slowed down the quoting and binding activity in apartments. So we're kind of in a holding pattern at the moment. But we have enormous opportunity in front of us once we solve that constraint, which we're actively working on and hope to have a solution operational during the tail end of the fourth quarter to start writing both apartments and ALFs as well as other classes of commercial property that are also more rating-sensitive inside and outside of Florida after hurricane season. That's our plan. Matthew Dhane: And so once you do have this, the lack of the rating cured and have the solution in place, Brad, would you expect that it should be -- there is a good amount of business that you should be able to write at reasonable rates? And like you said, the brokers like your product. And do you believe that we'll see some business later on fairly quickly after that then? B. Martz: Yes, there's enormous opportunity out there. We definitely feel and have been told by multiple parties that the opportunity is there. Competition is definitely there as well. That has not helped matters that there's excess capacity in the marketplace. And the incumbents are fighting hard to retain those policies. But we have a strategy and feel like we can gain a lot more traction with the E&S AM Best-rated paper at Skyway's disposal. Operator: The next question comes from the line of [ Akshay Tanna ], private investor. Akshay Tanna: Brad and team. My question is on the treasury shares. I see the treasury shares increased, and that's mainly because of the buybacks. I was wondering if you have plans to cancel them or maybe help us understand why keep them. B. Martz: Yes, there's -- that is the plan. And as I stated at the beginning, we have reloaded our capacity and increased it now. So we're still going to be on the lookout for additional opportunities to repurchase stock and cancel those shares to reduce the overall share count, which obviously doesn't necessarily have an immediate effect for all shareholders or really just benefits sellers. But certainly reducing some of the share count suggests we believe in our business. We're heavily weighted on insider ownership here, and increasing our concentration of investment in the stock is just something we feel compelled to do when you're trading at 5x trailing. So we're happy to do it. The limitation is going to be the average daily trading volume. It just takes a little bit of time to deploy that capacity. Akshay Tanna: And I know we've discussed about premiums coming down and then competition intensifying as well. And as I look at the Florida commercial residential property, market share that gets shared. I'm looking at a couple of companies that have increased market share. So like Slide is one. I'm just curious on the long-term threats to the earning part of the core business. Can you maybe talk a little bit more about it? B. Martz: Well, I can't comment on what other companies are doing. I can just tell you that you can measure market share in a number of different ways. Whether you do it based on total insured value, policy count, premium, etc. We feel like we're still the largest writer of it. We're in great position, and we're again, defending our book of business. We're only losing what we want to lose, where we want to lose it. The stuff we want to keep, we're keeping. Retention is right where we want it, account retention, that is. But that being said, there's obviously challenges on the premium side because of increased interest and competition. So we're mindful of that. We know how to manage the cycle. We've seen this before. And if we have to shrink the book because pricing becomes irrational, we will, but that's not the expectation at the moment. We're still in a very good position and many, many periods away from being at pricing levels where we would have to consider that and meaning ceding market share. So I don't see that as a near-term problem. It could be a longer-term problem, depending on how long this part of the cycle lasts. But for right now, we're still actively writing and finding new business opportunities as well. So we're winning new business. Retention is where we want it, and That's what we're focused on. Operator: [Operator Instructions] There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. American Coastal Insurance (ACIC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Net Income: $21.9 million for Q2 2026. Quarterly Income: $16.5 million, a decrease of $10.3 million driven by softening market conditions and one-time benefits in the prior year. Gross Premiums Written: Decreased roughly 5% year-over-year, with gross rates and premiums down 5.3% from 2025. Combined Ratio: 74.3%, an increase of 13.7 points from 2025. Underlying Combined Ratio (non-GAAP): 68.7%, compared to 62.2% in the prior year. Return on Equity: 26.6% in the current quarter. Catastrophe Losses: Approximately $3.1 million in non-hurricane catastrophe losses incurred. Stockholders' Equity: Increased $23.2 million or 7.3% to $340.8 million. Book Value Per Share: $721, a 10.7% increase from year-end 2025. Share Repurchases: Repurchased nearly 1.4 million shares in Q2, bringing year-to-date total to just over 1.8 million shares. Full-Year Earnings Guidance: Unchanged at $85 million to $100 million, inclusive of net average annual losses expected from catastrophes. Full-Year Revenue Guidance: Revised downward to between $300 million and $320 million. Warning! GuruFocus has detected 2 Warning Sign with ACIC. Is ACIC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 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 underlying combined ratio of 68.7% and a 26.6% return on equity for Q2 2026. The company reduced its first-event hurricane retention from $49 million to $23.5 million, enhancing downside protection and earnings reliability. ACIC maintained its market leadership in Florida commercial residential property insurance, with policies in force and total insured value up 3-4% year-over-year. The company repurchased nearly 1.4 million shares in Q2 and increased its buyback authorization to $30.6 million, signaling confidence in the business. Management expects to remain profitable even with three full retentions, and the lower retention supports the prospect of a special dividend. The company has a strong liquidity position, with stockholders' equity up 7.3% to $340.8 million and book value per share up 10.7% from year-end 2025. Gross premiums written decreased roughly 5% year-over-year due to continued downward rate pressure in the market. Net income fell to $16.5 million, a decrease of $10.3 million, impacted by softening market conditions and one-time benefits in the prior year. The combined ratio increased to 74.3%, up 13.7 points from 2025, reflecting the soft market cycle. The company experienced $767,000 of unfavorable reserve development from a single 2019 sinkhole claim, though management does not view it as recurring. The multifamily apartment initiative has been disappointing due to the lack of an AM Best rating, causing lost business and a holding pattern in that segment. Full-year revenue guidance was revised downward to $300-$320 million, and rates, deductibles, and policy acquisition costs are expected to remain under pressure into 2027. Q: What did the first event retention buydown cost, and how does the lower retention factor into capital return for the rest of the year? A: CEO Brad Martz stated the cost was approximately $8.4 million, with about $4 million expensed as seeded earn from August to December and the remainder from January through May 31. He noted this favorably impacts the prospect for a special dividend, stating that given the company's 18-year history of profitability and expectation of a 19th consecutive year, a special dividend should be guaranteed, though the size is undetermined. Q: Can you provide color on the $767,000 of unfavorable reserve development this quarter and whether it could be recurring? A: CEO Brad Martz clarified that the adverse development is not expected to be recurring. It stemmed from a single sinkhole claim from the 2019 accident year that slightly exceeded the excess per risk reinsurance coverage. He expects favorable development for the full year and stated there is nothing to worry about with reserves. Q: Can you talk about market share dynamics, policy count, and how you're thinking about the competitive landscape? A: CEO Brad Martz confirmed that policies in force and total insured value were both up roughly 3-4% year-over-year. Account retention improved to around 85% in Q2, right where the company wants it. He noted the company is maintaining or growing its market leadership position, though average premium is declining due to market forces. The company remains cautious but is actively writing new business where technical model prices remain above historical levels. Q: What are you seeing with the new E&S venture with ACES co-participation, and are you still thinking $70-80 million for full year 2026? A: CEO Brad Martz indicated the venture is slightly behind expectations, with calendar year 2026 likely closer to $50 million. However, for the first 12 months, he expects $60-70 million. AmRisc is working hard to find quality risks, and the revenue will be important to offset weakness in the core condominium book. He emphasized the company's focus remains on the bottom line, only growing where acceptable returns on capital can be earned. Q: With senior notes coming due next year, how much do you plan to refinance and what debt-to-capital ratio would that achieve? A: CEO Brad Martz stated the company still believes a 20% or less debt-to-capital ratio is appropriate. The current plan is to cut long-term debt in half from $150 million to $75 million, with cash on hand available to do so. They are exploring traditional bank debt and the bond market, expecting to complete refinancing within the next 6-12 months, preferably before the next hurricane season. Q: How has the multifamily apartment initiative developed relative to expectations, and what is the competitive landscape? A: CEO Brad Martz described the apartment, multifamily, and assisted living facility initiative as "on the disappointing side" due to challenges from not having an AM Best rating. The company plans to solve this through ACES Specialty, with discussions already commenced with AM Best for a rating this year. They are also evaluating fronting relationships, including the existing structure with Fortegra. Brokers love the company, but lenders have strict security requirements around AM Best ratings, causing some business losses to midterm cancellations. Q: Once the AM Best rating constraint is cured, should we expect business to be written quickly at reasonable rates? A: CEO Brad Martz confirmed there is enormous opportunity, though competition is present with excess capacity in the marketplace. He stated the company has a strategy and expects to gain much more traction with E&S and Best-rated paper at Skyway's disposal, with a solution expected to be operational during the tail end of Q4 to start writing apartments, ALFs, and other commercial property classes. Q: Regarding treasury shares from buybacks, do you have plans to cancel them? A: CEO Brad Martz confirmed the plan is to cancel shares to reduce the overall share count. He noted the company has reloaded and increased buyback capacity to roughly $30.6 million. With heavy insider ownership and the stock trading at five times trailing earnings, the company feels compelled to repurchase shares. The main limitation is average daily trading volume, which takes time to deploy capacity. Q: Can you discuss long-term threats to the earning power of the core business given increasing competition? A: CEO Brad Martz stated the company remains the largest writer of Florida commercial residential property insurance, defending its book and only losing what it wants to lose. Retention is where they want it. He acknowledged challenges on the premium side from increased competition but noted the company knows how to manage cycles. While shrinking the book is possible if pricing becomes irrational, that is not the near-term expectation, and they remain many periods away from pricing levels that would require considering seeding market share. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Company to Host Quarterly Conference Call at 5:00 P.M. ET on August 5, 2026The 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., Aug. 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 second quarter ended June 30, 2026. Comments from President & Chief Executive Officer, B. Bradford Martz: “Our second quarter reflects the discipline we've committed to at every stage of the market cycle. As Florida pricing comes off a generational peak, we remain focused on underwriting profitability rather than chasing new business at inadequate rates. That brought core income during the quarter to $16.5 million while still delivering a 68.7% underlying combined ratio and a 20% core return on equity, both among the best in the industry. What matters most is that American Coastal got stronger. Book value per share grew more than 20% over the past year to $7.21, Kroll upgraded our rating during the quarter, and our June 1 reinsurance renewal secured broader protection at a lower cost that mitigates much of the impact of rate change on net premiums earned. We built the number one commercial-residential franchise in the peak zone for hurricane risk in the world, and our E&S growth platform is how we intend to take that same underwriting discipline into other classes of commercial property as well as new geographies. With E&S already adding $28.7 million of premium year to date and a track record of profitability every year since 2007, we're confident we can keep compounding value and extend our business to new markets with sustainable competitive advantages.” 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 second quarter ended June 30, 2026 was $21.9 million, or $0.44 per diluted share, compared to net income of $26.4 million, or $0.53 per diluted share, for the second quarter ended June 30, 2025. The primary driver of the change in net income during the second quarter of 2026 was lower net premiums earned driven by decreased gross premiums earned. The Company's total gross written premium decreased by $12.0 million, or 5.3%, to $216.3 million for the second quarter ended June 30, 2026, from $228.3 million for the second quarter ended June 30, 2025. Gross premiums earned decreased $26.8 million, or 16.2%, to $138.7 million for the second quarter ended June 30, 2026 from $165.5 million for the second quarter ended June 30, 2025. These changes are attributed to a 24% decrease in our net pricing year-over-year as the market continued to soften. Ceded premiums earned decreased $18.0 million, or 20.7%, to $69.0 million for the second quarter ended June 30, 2026 from $87.0 million for the second quarter ended June 30, 2025. The breakdown of the quarter-over-quarter changes in these premiums is shown in the table below. More detail regarding the Company's ceded premiums can be seen in the "Reinsurance Costs as a Percentage of Gross Earned Premium" section below. Losses and LAE increased by $3.3 million, or 21.3%, to $18.8 million for the second quarter ended June 30, 2026, from $15.5 million for the second quarter ended June 30, 2025. Loss and LAE expense as a percentage of net earned premiums increased 7.2 points to 27.0% for the second quarter ended June 30, 2026, compared to 19.8% for the second quarter ended June 30, 2025. Excluding catastrophe losses and reserve development, the Company's gross underlying loss and LAE ratio for the second quarter ended June 30, 2026, would have been 10.8%, an increase of 0.6 points, from 10.2% for the second quarter ended June 30, 2025. Policy acquisition costs decreased by $1.6 million, or 6.6%, to $22.7 million for the second quarter ended June 30, 2026, from $24.3 million for the second quarter ended June 30, 2025, primarily due to decreased external management fees as a product of the decrease in gross premiums shown above. This was partially offset by a decrease in ceding commission income as a result of the Company's quota share reinsurance coverage decreasing from 20% to 15%, effective June 1, 2025. General and administrative expenses increased by $2.5 million, or 32.1%, to $10.3 million for the second quarter ended June 30, 2026, from $7.8 million for the second quarter ended June 30, 2025, driven by increased salary-related expenses, primarily due to a non-recurring employee retention tax credit refund that was received during the second quarter of 2025. This change was partially offset by a decrease in amortization. This decrease in amortization corresponds with the decrease seen in other income. Reinsurance Costs as a Percentage of Gross Earned Premium Reinsurance costs as a percentage of gross earned premium in the second quarter of 2026 and 2025 were as follows: Ceded premiums earned related to the Company's quota share reinsurance coverage decreased as the result of a decrease in the cession rate from 20% to 15% effective June 1, 2025. The Company's excess-of-loss coverage remained relatively flat, however, pricing decreases driven by a softening reinsurance market allowed the Company to purchase additional coverage in the current year to both raise the exhaustion point of our catastrophe coverage and replace the coverage lost with the decrease in quota share coverage. These actions resulted in a decrease in our overall ceding ratio, while enhancing our coverage in the current year. Investment Portfolio Highlights The Company's cash, cash equivalents, restricted cash and investment holdings increased from $647.7 million at December 31, 2025, to $650.0 million at June 30, 2026. The Company's cash and investment holdings consist primarily of investments in U.S. government and agency securities, corporate debt, mutual funds and investment grade money market instruments. Fixed maturities represented approximately 71.6% of total investments at June 30, 2026, compared to 71.3% of total investments at December 31, 2025. The Company's fixed maturity investments had a modified duration of 2.3 years at June 30, 2026, compared to 2.5 years at December 31, 2025. Book Value Analysis Book value per common share increased 10.7% from $6.51 at December 31, 2025, to $7.21 at June 30, 2026. Underlying book value per common share increased 10.9% from $6.66 at December 31, 2025, to $7.39 at June 30, 2026. An increase in the Company's retained earnings as a result of net income for the six months ended June 30, 2026 drove the increase in the Company's book value per share. As shown in the table below, removing the effect of Accumulated Other Comprehensive Income ("AOCI"), caused by capital market conditions, increases the Company's book value per common share at June 30, 2026. Conference Call Details 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, Apartments and Assisted Living Facilities 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 an “A”, (“Exceptional”) Financial Stability Rating from Demotech and maintains an “A” insurance financial strength rating with a Stable outlook from KBRA. ACIC maintains a “BBB” issuer rating with a Stable outlook from KBRA. Contact Information:Alexander BatyVice President, Finance & Investor Relations, American Coastal Insurance [email protected](727) 425-8076 Glen AkselrodPresident & Founder, Bristol Investor [email protected](905) 326-1888 Definitions of Non-GAAP Measures The Company believes that investors' understanding of ACIC's performance is enhanced by the Company's disclosure of the following non-GAAP measures. The Company's methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited. Net income (loss) excluding the effects of amortization of intangible assets, income (loss) from discontinued operations, realized gains (losses) and unrealized gains (losses) on equity securities, net of tax (core income (loss)) is a non-GAAP measure that is computed by adding amortization, net of tax, to net income (loss) and subtracting income (loss) from discontinued operations, net of tax, realized gains (losses) on the Company's investment portfolio, net of tax, and unrealized gains (losses) on the Company's equity securities, net of tax, from net income (loss). Amortization expense is related to the amortization of intangible assets acquired, including goodwill, through mergers and, therefore, the expense does not arise through normal operations. Investment portfolio gains (losses) and unrealized equity security gains (losses) vary independent of the Company's operations. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is net income (loss). The core income (loss) measure should not be considered a substitute for net income (loss) and does not reflect the overall profitability of the Company's business. Core return on equity is a non-GAAP ratio calculated using non-GAAP measures. It is calculated by dividing the core income (loss) for the period by the average stockholders’ equity for the trailing twelve months (or one quarter of such average, in the case of quarterly periods, or one half of such average, in the case of six-month periods). Core income (loss) is an after-tax non-GAAP measure that is calculated by excluding from net income (loss) the effect of income (loss) from discontinued operations, net of tax, non-cash amortization of intangible assets, including goodwill, unrealized gains or losses on the Company's equity security investments and net realized gains or losses on the Company's investment portfolio. In the opinion of the Company’s management, core income (loss), core income (loss) per share and core return on equity are meaningful indicators to investors of the Company's underwriting and operating results, since the excluded items are not necessarily indicative of operating trends. Internally, the Company’s management uses core income (loss), core income (loss) per share and core return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis. The most directly comparable GAAP measure is return on equity. The core return on equity measure should not be considered a substitute for return on equity and does not reflect the overall profitability of the Company's business. Combined ratio excluding the effects of current year catastrophe losses and prior year reserve development (underlying combined ratio) is a non-GAAP measure, that is computed by subtracting the effect of current year catastrophe losses and prior year development from the combined ratio. The Company believes that this ratio is useful to investors, and it is used by management to highlight the trends in the Company's business that may be obscured by current year catastrophe losses and prior year development. Current year catastrophe losses cause the Company's loss trends to vary significantly between periods as a result of their frequency of occurrence and severity and can have a significant impact on the combined ratio. Prior year development is caused by unexpected loss development on historical reserves. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of the Company's business. Net loss and LAE excluding the effects of current year catastrophe losses and prior year reserve development (underlying loss and LAE) is a non-GAAP measure that is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and LAE. The Company uses underlying loss and LAE figures to analyze the Company's loss trends that may be impacted by current year catastrophe losses and prior year development on the Company's reserves. As discussed previously, these two items can have a significant impact on the Company's loss trends in a given period. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is net loss and LAE. The underlying loss and LAE measure should not be considered a substitute for net loss and LAE and does not reflect the overall profitability of the Company's business. Book value per common share, excluding the impact of accumulated other comprehensive loss (underlying book value per common share), is a non-GAAP measure that is computed by dividing common stockholders' equity after excluding accumulated other comprehensive income (loss), by total common shares outstanding plus dilutive potential common shares outstanding. The Company uses the trend in book value per common share, excluding the impact of accumulated other comprehensive income (loss), in conjunction with book value per common share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes this non-GAAP measure is useful to investors because it eliminates the effect of interest rates that can fluctuate significantly from period to period and are generally driven by economic and financial factors that are not influenced by management. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of accumulated other comprehensive income (loss), should not be considered a substitute for book value per common share and does not reflect the recorded net worth of the Company's business. Discontinued Operations On May 9, 2024, the Company entered into the Sale Agreement with Forza Insurance Holdings, LLC ("Forza") in which ACIC agreed to sell and Forza agreed to acquire 100% of the issued and outstanding stock of the Company's subsidiary, Interboro Insurance Company ("IIC"). Forza's application to acquire IIC was approved by the New York Department of Financial Services on February 13, 2025 and the sale closed on April 1, 2025. The Company received cash proceeds totaling $25,679,000 from the sale resulting in a loss on disposal of $247,000, net of tax impact. The Company also recognized a $1,348,000 loss, net of tax impact, on IIC's fixed maturity portfolio, which was included in Accumulated other comprehensive loss on the Company's Consolidated Balance Sheet prior to the sale. Forward-Looking Statements Statements made in this press release, or on the conference call identified above, and otherwise, 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. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words such as “may,” “will,” “expect,” "endeavor," "project," “believe,” "plan," “anticipate,” “intend,” “could,” “would,” “estimate” or “continue” or the negative variations thereof or comparable terminology. 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 the Company's 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.

American Coastal Insurance (ACIC) came out with quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -21.43%. A quarter ago, it was expected that this property and casualty insurance company would post earnings of $0.44 per share when it actually produced earnings of $0.39, delivering a surprise of -11.36%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. American Coastal, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $75.1 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.79%. This compares to year-ago revenues of $84.24 million. The company has topped consensus revenue estimates two 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 12.7% since the beginning of the year versus the S&P 500's gain of 13%. 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 future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.13 on $82.59 million in revenues for the coming quarter and $0.96 on $310.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Kingstone Companies, Inc (KINS), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly earnings of $0.95 per share in its upcoming report, which represents a year-over-year change of +26.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Kingstone Companies, Inc's revenues are expected to be $66.4 million, up 27% from the year-ago quarter. 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 Kingstone Companies, Inc (KINS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in American Coastal Insurance Corporation? Here are five stocks we like better. Second-quarter net income was $21.9 million, while gross written premiums fell 5.3% year over year amid lower pricing and $3.1 million in non-hurricane catastrophe losses. The reported combined ratio rose to 74.3%, and the underlying combined ratio increased to 68.7% from 62.2%. American Coastal lowered its first-event hurricane retention to $23.5 million from $49 million at an $8.4 million cost, while maintaining pretax earnings guidance of $85 million to $100 million. However, it reduced total revenue guidance to $300 million-$320 million because of continued market pricing pressure. The company repurchased nearly 1.4 million shares during the quarter and expanded its buyback authorization to about $30.6 million. Management also plans to refinance senior notes due next year and reduce long-term debt from $150 million to $75 million. American Coastal Insurance (NASDAQ:ACIC) reported second-quarter net income of $21.9 million as the Florida commercial residential property insurer navigated lower pricing and catastrophe losses while maintaining what management described as disciplined underwriting. President and CEO Bennett Bradford Martz said gross written premiums declined roughly 5% from the prior-year period amid continued downward rate pressure. The quarter also included approximately $3.1 million in non-hurricane catastrophe losses, compared with no such losses in 2025. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “Despite top and bottom line compression year-over-year, our underlying combined ratio of 68.7% was very respectable,” Martz said, adding that quarterly return on equity was 26.6%. CFO Lana Castle said core income totaled $16.5 million, down $10.3 million from a year earlier. The decline reflected softening market conditions as well as $4.2 million of one-time benefits recorded in the prior-year quarter. → 3 Drone Stocks That Should Soar After the Summer Slump Gross written premiums fell 5.3% from 2025. Castle said $22.5 million of assumed excess-and-surplus, or E&S, premium partially offset declines in the company’s direct premium business. The reported combined ratio was 74.3%, up 13.7 percentage points from the prior-year period. The underlying combined ratio, excluding current-year catastrophe losses and prior-year development, was 68.7%, compared with 62.2% a year earlier. Cash and investments increased $2.3 million, inclusive of previously declared special dividends totaling $36.6 million, or $0.75 per share. Stockholders’ equity rose $23.2 million, or 7.3%, to $340.8 million. Book value per share increased 10.7% from year-end 2025 to $7.21. Management said unfavorable reserve development of approximately $767,000 stemmed from a single 2019 accident-year sinkhole claim that exceeded the company’s excess-per-risk reinsurance coverage. Martz said he does not expect the development to recur and expects favorable development for the full year. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Effective Aug. 1, American Coastal reduced its first-event hurricane retention to $23.5 million before income taxes from $49 million. Martz said the change was enabled by the outlook for Florida hurricanes and lower reinsurance pricing, allowing the company to reduce potential downside from a storm. The additional protection cost approximately $8.4 million, according to Martz. About $4 million will be recognized as ceded earned premium from August through December, with the remainder recognized from January through May 2027. The company’s second- and third-event retentions remain $25 million and $2 million, respectively. Martz said American Coastal expects to remain profitable even with three full retention events. The company maintained its full-year earnings guidance of $85 million to $100 million before income taxes, inclusive of expected average annual catastrophe losses. Actual earnings could vary based on catastrophe frequency and severity. However, management reduced its total revenue outlook to between $300 million and $320 million because of current market pricing. Martz said rates, deductibles and policy acquisition costs could remain under pressure into 2027 if there are no major hurricanes or other unexpected developments, though lower reinsurance costs may partially offset those pressures. During the second-quarter trading window, the company repurchased nearly 1.4 million common shares, bringing year-to-date repurchases to more than 1.8 million shares. The board expanded the company’s repurchase authorization to approximately $30.6 million. Martz said the company intends to cancel repurchased treasury shares and continues to view buybacks as an attractive use of capital. He also said the lower hurricane retention supports the potential for another special dividend if the company has sufficient excess capital, although the size of any potential dividend has not been determined. American Coastal’s senior notes are due next year, and management said it is evaluating bank debt, bond-market financing and other refinancing alternatives. Martz said the company expects to refinance within six to 12 months and would prefer to complete the process before the next hurricane season. The current plan is to reduce long-term debt to $75 million from $150 million, which would bring the company below its target debt-to-capital ratio of 20% or less. Martz said the company has sufficient cash on hand to reduce the debt balance by half. American Coastal’s policies in force and total insured value in force were each up roughly 3% to 4% year over year as of June 30. Account retention improved to about 85% in the second quarter, according to Martz. While average premium has declined, Martz said the company is maintaining its exposure base, continuing to write new business and seeking to preserve underwriting profitability rather than pursuing premium growth at unacceptable returns. The company expects its E&S venture with ACES participation to contribute closer to $50 million of premium during calendar 2026, rather than the previously discussed $70 million figure for a full 12-month period. For the venture’s first 12 months, management expects between $60 million and $70 million, subject to market conditions. Management also described its apartment, multifamily and assisted-living initiatives as below expectations because the company lacks an AM Best rating that lenders often require. Martz said American Coastal is pursuing an AM Best rating for ACES Specialty and evaluating fronting relationships that could provide access to rated paper. The company hopes to have a solution in place toward the end of the fourth quarter, enabling it to pursue apartments, assisted-living facilities and other rating-sensitive commercial property business after hurricane season. American Coastal Insurance Company (NASDAQ:ACIC) is a specialized property and casualty insurer focused on coastal residential and commercial lines across the Southeastern United States. Headquartered in St. Petersburg, Florida, the company underwrites policies designed to address windstorm and non-windstorm perils in areas exposed to hurricane risk. Since its founding in 2007, American Coastal has positioned itself to meet the insurance needs of homeowners, condominium associations, and small business owners operating near coastal zones. Through a diversified portfolio of personal lines products, American Coastal offers homeowners insurance, dwelling fire, mobile home, condominium unitowners and renters policies. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "American Coastal Insurance Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

United Fire Group (UFCS) came out with quarterly earnings of $1.3 per share, beating the Zacks Consensus Estimate of $0.7 per share. This compares to earnings of $0.9 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +85.71%. A quarter ago, it was expected that this property and casualty insurance company would post earnings of $0.87 per share when it actually produced earnings of $1.16, delivering a surprise of +33.33%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. United Fire, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $383.73 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.21%. This compares to year-ago revenues of $335.47 million. The company has topped consensus revenue estimates four 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. United Fire shares have added about 41.3% since the beginning of the year versus the S&P 500's gain of 9.4%. While United Fire has outperformed 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 United Fire 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 future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.49 on $388 million in revenues for the coming quarter and $4.69 on $1.53 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, American Coastal Insurance (ACIC), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This property and casualty insurance company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -22.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. American Coastal Insurance's revenues are expected to be $75.7 million, down 10.1% from the year-ago quarter. 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 United Fire Group, Inc (UFCS) : Free Stock Analysis Report American Coastal Insurance Corporation (ACIC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year decline in earnings on lower revenues when American Coastal Insurance (ACIC) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This property and casualty insurance company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -22.2%. Revenues are expected to be $75.7 million, down 10.1% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For American Coastal, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +4.76%. On the other hand, the stock currently carries a Zacks Rank of #5. So, this combination makes it difficult to conclusively predict that American Coastal will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that American Coastal would post earnings of $0.44 per share when it actually produced earnings of $0.39, delivering a surprise of -11.36%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. American Coastal doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Bowhead Specialty Holdings Inc. (BOW), another stock in the Zacks Insurance - Property and Casualty industry, is expected to report earnings per share of $0.47 for the quarter ended June 2026. This estimate points to a year-over-year change of +27%. Revenues for the quarter are expected to be $164.29 million, up 23.3% from the year-ago quarter. The consensus EPS estimate for Bowhead Specialty Holdings Inc. has been revised 0.6% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.39%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Bowhead Specialty Holdings Inc. will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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 Bowhead Specialty Holdings Inc. (BOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research