ACIC Q1 Net Income Drops; Shares Rise 1.84%

By Bobby Samwell • Tuesday, May 05 16:19 • Permanent Link

American Coastal Insurance Corp. said first-quarter net income fell to $19.3 million, or $0.39 a diluted share, from $21.3 million, or $0.43 a share, a year earlier. The company’s core income slipped to $19.3 million from $20.7 million, while core income per diluted share declined to $0.39 from $0.42.

Gross premiums written dropped 24.5% to $149.4 million from $197.9 million. Gross premiums earned fell 12.9% to $141.1 million from $162.1 million, and net premiums earned edged down 3.9% to $65.6 million from $68.3 million. Total revenue was down 1.4% to $71.2 million from $72.2 million.

The company’s loss and loss adjustment expenses decreased 10.5% to $10.2 million from $11.4 million. As a share of net earned premiums, the loss ratio improved to 15.6% from 16.7%. Underlying loss and LAE fell to $11.8 million from $13.6 million, while the underlying loss ratio held at 8.4% in both periods.

Operating expenses were little changed overall at $33.1 million versus $33.0 million. Policy acquisition costs declined 4.7% to $22.4 million from $23.5 million, while general and administrative expenses rose 12.6% to $10.7 million from $9.5 million. As a result, the expense ratio increased to 50.4% from 48.3%.

The combined ratio widened to 66.0% from 65.0%, while the underlying combined ratio was 68.3% compared with 68.2% a year earlier. Current-year catastrophe losses added 0.2 points to the ratio, and prior-year reserve development reduced it by 2.5 points versus a 3.2-point benefit last year.

Book value per share increased to $6.86 at March 31, 2026, from $6.51 at December 31, 2025. Underlying book value per share rose to $7.04 from $6.66. Common stockholders’ equity increased to $331.7 million from $317.6 million, even as shares outstanding fell to 48.34 million from 48.76 million.

Cash, restricted cash and investments declined to $599.4 million from $647.7 million at year-end, after the company paid about $36.6 million in dividends during the quarter. Fixed maturities made up 70.5% of total investments, down from 71.3% at December 31, 2025. As a result of these announcements, the company's shares have moved 1.84% on the market, and are now trading at a price of $11.865. If you want to know more, read the company's complete 8-K report here.

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