Investors in American Coastal Insurance Corporation (ACIC) need to pay close attention to the stock based on moves in the options market lately. That is because the Feb 20, 2026 $9.25 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the ...

Summary of American Coastal Insurance Conference Call Company Overview - **Company**: American Coastal Insurance Corporation (Ticker: ACIC) - **Industry**: Specialty insurance focused on commercial residential property insurance in Florida - **Market Position**: Holds the number one market share, insuring approximately 4,300 out of 17,000 condominium associations in Florida [2][3] Core Business Strategy - **Focus Shift**: Transitioned from personal loans and homeowners insurance to commercial residential insurance, with plans to expand outside Florida [3][4] - **Underwriting Profitability**: Achieved consistent underwriting profit since inception in 2007, even during adverse conditions [4][5] - **Risk Characteristics**: Targets low-rise, garden-style commercial residential buildings with an average total insured value of about $16 million, focusing on properties valued between $5 million and $60 million [5][12] Financial Performance - **2025 Financials**: As of September 2025, gross premium earned was nearly $500 million, with net premium earned at $228 million, reflecting a 15% growth [20][21] - **Return on Equity**: Core return on equity stands at 37.9% [21] - **Stockholders' Equity**: Reported at $1.2 million with total cash and cash equivalents increasing to $270 million from $137 million at the end of 2024 [21][22] Reinsurance Strategy - **Risk Transfer**: Utilizes extensive reinsurance to mitigate volatility, with a main catastrophe reinsurance program covering named hurricanes and tropical storms [16][17] - **Retention Levels**: Retains $30 million on the first event and $19 million on the second event, with total coverage of $1.3 billion [16] - **New Programs**: Introduced an aggregate CAT reinsurance program in 2025, providing additional protection against high-severity, high-frequency catastrophe events [17] Growth Opportunities - **New Product Launches**: Launched new underwriting programs for apartments and assisted living facilities through their own Managing General Agency (MGA) named Skyway [19][20] - **Market Expansion**: Plans to leverage underwriting capabilities to enter new products and geographies, enhancing growth potential [29][30] Capital Allocation and Shareholder Value - **Dividends and Buybacks**: Plans to focus on special dividends, increasing from $0.50 to $0.75 per share for 2024, with potential buybacks contingent on stock price performance [23][24] - **Long-term Leverage Goals**: Aims to maintain a leverage ratio of less than 25% [23] Market Conditions and Outlook - **Insurance Cycle**: Acknowledges the current softening cycle in the insurance market but remains optimistic about underwriting profitability through careful risk selection [14][30] - **Earnings Volatility Management**: Emphasizes the importance of reducing earnings volatility through strategic reinsurance rather than maximizing average earnings [25][26] Key Takeaways - **Strong Financial Position**: The company has a robust capital base and liquidity, allowing for growth without immediate debt financing [22] - **Focus on Underwriting Profit**: Prioritizes underwriting profit over aggressive growth, ensuring sustainable long-term performance [30][31] - **Strategic Partnerships**: Maintains a beneficial partnership with AmRisc for underwriting, while also developing internal capabilities through Skyway [10][11]

ST. PETERSBURG, Fla., Dec. 01, 2025 (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 its Board of Directors declared a special cash dividend of $0.75 per share of common stock outstanding, payable on January 9, 2026, to shareholders of record on January 2, 2026. Executive Fireside Chat with American Coastal: The Next HorizonAme ...

ST. PETERSBURG, Fla., Nov. 20, 2025 (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 its executive management team will participate in several investor conferences in December. The Company’s leadership, including Bennet Bradford Martz, President and Chief Executive Officer, and Svetlana Castle, Chief Financial Officer, will pro ...

American Coastal Insurance (ACIC) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following ...

Financial Performance - Gross premiums written decreased by 22.8% from $93,016,000 in Q3 2024 to $71,812,000 in Q3 2025[182] - Net premiums earned increased by 8.4% from $74,486,000 in Q3 2024 to $80,818,000 in Q3 2025[182] - Consolidated net income rose by 15.5% from $28,119,000 in Q3 2024 to $32,483,000 in Q3 2025[184] - Core income per diluted share increased from $0.54 in Q3 2024 to $0.61 in Q3 2025, reflecting a growth of 12.9%[182] - Total revenues increased by 9.9% from $82,136,000 in Q3 2024 to $90,395,000 in Q3 2025[184] - ACIC net income for Q3 2025 increased by $4,364,000, or 15.5%, to $32,483,000 from $28,119,000 in Q3 2024, driven by continuing operations[223] - ACIC net income for the nine months ended September 30, 2025 increased by $9,501,000, or 13.4%, to $80,273,000 from $70,772,000 in the same period in 2024[235] Policy and Premiums - Policies in-force grew by 8.6% from 3,971 policies at September 30, 2024 to 4,343 policies at September 30, 2025[179] - Gross written premiums for the nine months ended September 30, 2025 decreased by $9,056,000, or 1.8%, to $498,010,000 from $507,066,000 in the same period in 2024[236] - Net premiums earned increased by $27,035,000, or 13.5%, to $227,533,000 for the nine months ended September 30, 2025, compared to $200,498,000 for the same period in 2024[237] Expenses and Loss Ratios - Total operating expenses increased by $2,618,000, or 5.7%, to $48,690,000 in Q3 2025 from $46,072,000 in Q3 2024, primarily due to increased policy acquisition costs[227] - Loss and LAE decreased by $2,563,000, or 21.8%, to $9,211,000 in Q3 2025 from $11,774,000 in Q3 2024[229] - The net loss and LAE as a percentage of net earned premiums decreased by 4.4 points to 11.4% in Q3 2025 from 15.8% in Q3 2024[229] - Total operating expenses increased by $23,812,000, or 30.5%, to $101,767,000 for the nine months ended September 30, 2025, compared to $77,955,000 for the same period in 2024[242] - Policy acquisition costs rose by $28,686,000, or 64.5%, to $73,162,000 for the nine months ended September 30, 2025, primarily due to a decrease in ceding commission income[243] - General and administrative expenses decreased by $4,874,000, or 14.6%, to $28,605,000 for the nine months ended September 30, 2025, largely due to a non-recurring employee retention tax credit refund[244] Cash and Investments - As of September 30, 2025, the company's total cash, cash equivalents, restricted cash, and investment portfolio amounted to $695,047,000, an increase from $540,811,000 at December 31, 2024, representing a growth of approximately 28.6%[198] - The company's cash and cash equivalents increased to $267,872,000 at September 30, 2025, compared to $137,036,000 at December 31, 2024, reflecting a growth of approximately 95.7%[199] - Net cash provided by operating activities decreased by $123,130,000, or 51.0%, to $118,777,000 for the nine months ended September 30, 2025, compared to $241,907,000 for the same period in 2024[250] - Net sales of investments totaled $12,896,000 during the nine months ended September 30, 2025, compared to net purchases of investments of $162,893,000 during the same period in 2024[253] - Cash provided by financing activities decreased by $10,847,000, or 93.3%, to $774,000 for the nine months ended September 30, 2025, compared to $11,621,000 for the same period in 2024[254] Reinsurance and Coverage - The company recognized a loss of $247,000 on the disposal of IIC, net of tax impacts, during the sale to Forza Insurance Holdings[178] - The company's catastrophe reinsurance program provides occurrence-based coverage up to approximately $1,330,000,000 for a first occurrence and $1,676,000,000 in the aggregate, with a first event GAAP retention of $29,750,000[202] - The new catastrophe aggregate excess of loss coverage effective January 1, 2025, provides $40,000,000 of aggregate limit with a $20,000,000 per occurrence cap after a $40,000,000 annual aggregate deductible[204] - The company’s core catastrophe reinsurance program includes coverage for a 1-in-203-year return period, indicating a probability of a single occurrence exceeding protection purchased of roughly 0.5%[202] Investment Portfolio - The company's total investments as of September 30, 2025, were $335,911,000, which is 48.3% of the total assets, compared to $341,418,000 or 63.2% at December 31, 2024, indicating a decrease in the proportion of investments[199] - The estimated fair value of U.S. government and agency securities decreased from $154,660,000 (28.7% of total) at December 31, 2024, to $96,087,000 (13.8% of total) at September 30, 2025[199] - The company’s total fixed maturities decreased from $281,001,000 (52.0% of total) at December 31, 2024, to $246,499,000 (35.5% of total) at September 30, 2025[199] - The company’s equity securities increased from $36,794,000 (6.8% of total) at December 31, 2024, to $52,585,000 (7.5% of total) at September 30, 2025[199] Shareholder Actions - As of September 30, 2025, the company had sold 4,373,000 shares under an equity distribution agreement, resulting in net proceeds of approximately $38,190,000[249] - The company made a capital contribution of $8,269,000 to its reinsurance subsidiary during the nine months ended September 30, 2025, compared to $1,265,000 in the same period of 2024[247]

American Coastal Insurance (ACIC) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.39 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 +56.41%. A quarter ago, it was expected that this property and casualty insurance company would post earnings of $0.38 per share when it actually produced earnings of $0.54, delivering a surprise of +42. ...

Financial Data and Key Metrics Changes - American Coastal reported earnings before income taxes of over $42 million for Q3 2025, marking the best quarter to date [4] - Total revenues increased by over 10%, while net income grew by 16% year over year, reaching $32.5 million [4][8] - The combined ratio was 56.9%, a decrease of 0.8 percentage points from 2024, and below the target of 65% [9] - Year-to-date net income from continuing operations was $80.2 million, a 13.8% increase year over year [10] Business Line Data and Key Metrics Changes - The company intentionally slowed premiums written in Q3 to limit exposure growth during hurricane season, achieving its average annual loss target [4][5] - Policy acquisition costs increased by $4.5 million or 21.5% due to higher commissions to MGAs and decreased seeding commission income [8] Market Data and Key Metrics Changes - The company is targeting the assisted living facility market in Florida, which is estimated to be a $100 million market opportunity, with potential growth in the coming years [24][25] - Average premiums are down about 9% since year-end, reflecting the softening cycle in the market [19] Company Strategy and Development Direction - American Coastal is focusing on risk selection and underwriting discipline to find profitable growth opportunities amid a softening commercial property market [4][5] - The introduction of a new commercial residential property insurance program targeting assisted living facilities is seen as a strategic initiative to diversify the risk portfolio [6][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in earning strong returns on capital despite headwinds from the current softening cycle [5] - The company anticipates a rebound in premiums written in Q4 2025, with positive momentum expected to continue into 2026 [5] Other Important Information - Cash and investments grew by 28.5% since year-end to $695 million, indicating a strong liquidity position [10] - Stockholders' equity increased by 38.9% since year-end to $327.2 million, driven by strong results [10] Q&A Session Summary Question: Can you break down the decrease in gross premium written in Q3? - Management clarified that they did not suspend new business but implemented stricter underwriting controls to meet average annual loss targets [14][16] Question: How are the reinsurance renewal discussions going? - Management reported productive discussions with reinsurance partners, indicating strong support for American Coastal, with a focus on capacity rather than pricing [18] Question: What is the market outlook for the assisted living business? - Management estimated the assisted living market to be about $100 million, with a goal to capture 10% in the first year, emphasizing a cautious approach to growth [24][26]

Earnings Presentation 3rd Quarter 2025 November 5th, 2025 Company Overview ACIC is a specialty underwriter of catastrophe exposed commercial property insurance. American Coastal Insurance Corp. (Nasdaq: ACIC) is the insurance holding company for American Coastal Insurance Company (AmCoastal), a Florida domiciled P&C carrier, and Skyway Underwriters (SKU), a managing general agency, along with other operating affiliates. AmCoastal is a balance sheet underwriter and has the #1 market share of commercial resid ...

Core Insights - American Coastal Insurance Corporation reported strong financial results for Q3 2025, with net income increasing to $32.5 million, or $0.65 per diluted share, compared to $28.1 million, or $0.57 per diluted share in Q3 2024, reflecting a year-over-year growth of 15.5% [19][20][41] - The company achieved a total revenue of $90.4 million for Q3 2025, up 10.1% from $82.1 million in Q3 2024, driven by increased gross premiums earned and decreased ceded premiums [19][20][41] - The underlying combined ratio improved to 57.8% for Q3 2025, outperforming the target combined ratio of 65%, indicating effective underwriting results [6][12][41] Financial Performance - Gross premiums written decreased by $21.2 million, or 22.8%, to $71.8 million in Q3 2025 from $93.0 million in Q3 2024 [20][21] - Gross premiums earned increased by $2.6 million, or 1.6%, to $162.8 million in Q3 2025 from $160.2 million in Q3 2024 [20][21] - Net premiums earned rose by $6.3 million, or 8.5%, to $80.8 million in Q3 2025 compared to $74.5 million in Q3 2024 [20][21] Expense Analysis - Policy acquisition costs increased by $4.5 million, or 21.5%, to $25.4 million in Q3 2025, primarily due to higher external management fees [22][41] - General and administrative expenses rose by $1.0 million, or 9.7%, to $11.3 million in Q3 2025, driven by increased salary-related expenses [23][41] - Loss and loss adjustment expenses decreased by $2.6 million, or 22.0%, to $9.2 million in Q3 2025, resulting in a loss ratio of 11.4% compared to 15.8% in Q3 2024 [20][21][41] Investment and Book Value - The company's cash and investment holdings increased from $540.8 million at the end of 2024 to $695.0 million by September 30, 2025, reflecting strong cash flows from operations [26][41] - Book value per common share rose by 37.2% from $4.89 at December 31, 2024, to $6.71 at September 30, 2025, driven by retained earnings from net income [27][28][41] Market Position and Strategy - The company maintains a competitive advantage with an underlying combined ratio of 57.8% for Q3 2025, indicating effective risk management and underwriting practices [6][12][41] - American Coastal is strategically positioned to deliver superior risk-adjusted returns throughout the market cycle, focusing on long-term value creation for stakeholders [6][41]