Core Viewpoint - American Coastal Insurance (ACIC) reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, and showing an increase from $0.4 per share a year ago, representing an earnings surprise of +42.11% [1][2] Financial Performance - The company posted revenues of $84.24 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.25%, and up from $68.73 million year-over-year [2] - Over the last four quarters, ACIC has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - American Coastal shares have declined approximately 23.8% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $87.1 million, and for the current fiscal year, it is $1.35 on revenues of $328.62 million [7] - The trend of estimate revisions for American Coastal was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Insurance - Property and Casualty industry is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - American Coastal Insurance Corporation reported a 26% year-over-year increase in revenues and a 51% year-over-year growth in pretax earnings, achieving a core return on equity of approximately 42% [5][6] - Net income for the quarter was $26.4 million, with core income rising to $26.8 million, an increase of $7.2 million year-over-year [9] - The combined ratio improved to 60.6%, a decrease of 4.3 points from the previous year, and the non-GAAP underlying combined ratio was 62.2%, also below the 65% target [10][11] - Cash and investments grew by 34.3% since year-end to $726.2 million, reflecting strong liquidity [11] Business Line Data and Key Metrics Changes - The company’s policies in force increased by approximately 10% since year-end, with total insured value rising by about 18% to $69.8 billion as of June 30 [6] - Policy acquisition costs increased by $10.3 million or 74.8%, while general and administrative expenses decreased by $4.1 million or 34.5% due to the receipt of Employee Retention Tax Credit refunds [9] Market Data and Key Metrics Changes - The Florida market for admitted commercial residential property insurance remains relatively healthy, although property insurance rates continued to decline in most territories during the second quarter [6] - Southeast Florida is experiencing a firmer market compared to the rest of the state, with expectations of improvement due to ongoing capacity and underwriting constraints [6] Company Strategy and Development Direction - The company is cautiously optimistic about growing its presence in the apartment space in Florida, focusing on high-quality risks rather than aggressive growth targets [15][17] - The company aims to maintain a strong underwriting discipline, prioritizing expected returns on capital over sheer premium volume [17][34] Management's Comments on Operating Environment and Future Outlook - Management noted that the underwriting environment is expected to remain healthy, but potential decreases in rates could impact growth opportunities [32] - The company has regained investment grade status, which reduces the interest rate on senior notes by 100 basis points, indicating positive directional momentum [7][8] Other Important Information - The company completed its core catastrophe reinsurance program renewal with a risk-adjusted cost decrease of approximately 12.4% [6] - The company has received all Employee Retention Tax Credit refunds, confirming no lingering credits are expected [37] Q&A Session Summary Question: Insights on Skyway Underwriters and Market Context - Management expressed cautious optimism about growing in the apartment space, emphasizing a selective approach to underwriting [15][16] Question: Apartment Binding Ratio Implications - The increase in the binding ratio is attributed to gaining experience and improved relationships with distribution partners, along with seasonal factors [29][30] Question: Future Binding Ratio Expectations - Management indicated uncertainty about the binding ratio for the second half of the year, suggesting it could either increase or decrease based on market conditions [32] Question: Market Conditions in Southeast Florida - Management highlighted that Southeast Florida is a challenging market with more demand than supply, which bodes well for the company's book of business [35][36] Question: Employee Tax Retention Credit Status - Management confirmed that all expected Employee Retention Tax Credits have been received [37]

Financial Performance - ACIC's Non-GAAP Core Income for Q2 2025 increased by $7.2 million (+36.4%) year-over-year to $26.8 million ($0.54 per share) from $19.6 million ($0.40 per share) [9] - Net premiums earned grew by $15.0 million (+23.8%) year-over-year to $78.4 million [9] - The combined ratio decreased to 60.6% from 64.9% in the prior year, and the Non-GAAP underlying combined ratio decreased to 62.2% from 66.4% [9] - Stockholders' equity increased by $56.6 million from December 31, 2024, to $292.3 million, or $6.00 per share [9] - Net income from continuing operations increased by $8.9 million (+46.6%) year-over-year to $28.0 million [14] Balance Sheet & Investment - Total Assets reached $1.35 billion as of June 30, 2025 [6] - Total Equity was $292.3 million as of June 30, 2025 [6] - Cash & investments increased by 34.3% from December 31, 2024, to $726.243 million [15] - Total Cash & Investments increased by 27.7% from Mar. 31, 2025 to $726.243 million [17] Other Highlights - The company completed its Core CAT reinsurance program effective June 1, 2025, with a risk-adjusted decrease of -12.4% [9] - ACIC was upgraded to investment grade status (BBB-) by KBRA on 7.21.25, saving approximately $1.5 million per year in interest expense [9]

Core Viewpoint - American Coastal Insurance Corporation (ACIC) reported strong financial results for the second quarter of 2025, with significant growth in total revenues and underwriting profits year-over-year, reflecting a positive outlook for the company [4]. Financial Performance - Gross premiums written decreased by $1.1 million, or 0.5%, to $228.3 million for Q2 2025 compared to Q2 2024 [17]. - Gross premiums earned increased by 6.4% to $165.5 million in Q2 2025 from $155.5 million in Q2 2024 [2]. - Net premiums earned rose by 23.8% to $78.4 million in Q2 2025, up from $63.4 million in Q2 2024 [2]. - Total revenue for Q2 2025 was $86.5 million, a 25.9% increase from $68.7 million in Q2 2024 [2]. - Consolidated net income for Q2 2025 was $26.4 million, or $0.53 per diluted share, compared to $19.1 million, or $0.39 per diluted share, in Q2 2024, marking a 38.8% increase [16]. Underwriting Metrics - The loss ratio for Q2 2025 was 19.8%, down from 24.1% in Q2 2024, a decrease of 4.3 percentage points [9]. - The combined ratio improved to 60.6% in Q2 2025 from 64.9% in Q2 2024, reflecting better underwriting performance [9]. - The underlying combined ratio also showed improvement, decreasing to 62.2% in Q2 2025 from 66.4% in Q2 2024 [9]. Expense Management - Policy acquisition costs surged by 74.8% to $24.3 million in Q2 2025, primarily due to a decrease in ceding commission income [21]. - General and administrative expenses decreased by 34.5% to $7.8 million in Q2 2025, attributed to a non-recurring employee retention tax credit refund [22]. Investment Portfolio - The company's cash, restricted cash, and investment holdings increased from $540.8 million at the end of 2024 to $726.2 million by June 30, 2025, driven by cash flows from operations [25]. - Fixed maturities represented approximately 78.0% of total investments at June 30, 2025, compared to 82.3% at the end of 2024 [25]. Book Value - Book value per common share increased by 22.6% from $4.89 at December 31, 2024, to $6.00 at June 30, 2025 [26]. - Underlying book value per common share rose by 18.9% from $5.21 at December 31, 2024, to $6.20 at June 30, 2025 [26].

[Press Release Overview](index=1&type=section&id=Press%20Release%20Overview) ACIC announced Q2 2025 financial results and conference call details, with the CEO highlighting strong performance and market share gains [Announcement & Conference Call](index=1&type=section&id=Announcement%20%26%20Conference%20Call) American Coastal Insurance Corporation (ACIC) announced its financial results for the second quarter ended June 30, 2025, and scheduled a conference call to discuss these results - American Coastal Insurance Corporation (ACIC) reported financial results for its second quarter ended June 30, 2025[2](index=2&type=chunk) - The company will host a quarterly conference call at 5:00 P.M. ET on August 6, 2025[1](index=1&type=chunk) [CEO Commentary](index=2&type=section&id=CEO%20Commentary) CEO B. Bradford Martz expressed satisfaction with a strong quarter, highlighting year-over-year growth in total revenue and underwriting profit, continued market share gains in the commercial residential segment, and a positive outlook reinforced by recent credit rating upgrades - Achieved year-over-year growth in both **total revenue** and **underwriting profit**[4](index=4&type=chunk) - Continued to gain **market share** in the commercial residential segment[4](index=4&type=chunk) - Received recent **credit rating upgrades** from Kroll Bond Rating Agency, reflecting a very positive outlook[4](index=4&type=chunk) [Financial Highlights (Summary Table)](index=1&type=section&id=Financial%20Highlights%20%28Summary%20Table%29) ACIC's Q2 2025 financial highlights include strong growth in net income and EPS, alongside key metrics for return on equity and combined ratio [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) ACIC reported strong financial performance for Q2 2025, with significant increases in net premiums earned, total revenue, and consolidated net income, alongside growth in diluted EPS and book value per share Key Financial Metrics (Three Months Ended June 30) | Metric | 2025 ($ in thousands) | 2024 ($ in thousands) | Change (%) | | :----------------------------------- | :-------------------- | :-------------------- | :--------- | | Gross premiums written | 228,346 | 229,449 | (0.5)% | | Gross premiums earned | 165,460 | 155,450 | 6.4% | | Net premiums earned | 78,443 | 63,381 | 23.8% | | Total revenue | 86,467 | 68,656 | 25.9% | | Income from continuing operations, net of tax | 28,037 | 19,073 | 47.0% | | Consolidated net income | 26,442 | 19,054 | 38.8% | | Net income available to ACIC stockholders per diluted share (Total) | 0.53 | 0.39 | 35.9% | | Core income | 26,756 | 19,611 | 36.4% | | Core income per diluted share | 0.54 | 0.40 | 35.0% | | Book value per share (as of June 30) | 6.00 | 4.63 | 29.6% | [Return on Equity and Core Return on Equity](index=2&type=section&id=Return%20on%20Equity%20and%20Core%20Return%20on%20Equity) The company's GAAP Return on Equity and Core Return on Equity both decreased for the three and six months ended June 30, 2025, compared to the prior year, despite an increase in net income Return on Equity (Annualized) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Return on equity based on GAAP income from continuing operations, net of tax | 43.6% | 45.6% | 37.1% | 51.1% | | Return on equity based on GAAP net income | 41.1% | 45.6% | 37.1% | 51.0% | | Core return on equity | 41.6% | 46.9% | 36.8% | 52.6% | [Combined Ratio and Underlying Ratio](index=3&type=section&id=Combined%20Ratio%20and%20Underlying%20Ratio) ACIC's combined ratio improved for the three months ended June 30, 2025, primarily driven by a significant decrease in the net loss ratio, while the six-month combined ratio saw an increase Combined Ratio (Consolidated) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (pts) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (pts) | | :-------------------------- | :------------------------------- | :------------------------------- | :----------- | :----------------------------- | :----------------------------- | :----------- | | Loss ratio, net | 19.8% | 24.1% | (4.3) | 18.4% | 22.0% | (3.6) | | Expense ratio, net | 40.8% | 40.8% | — | 44.3% | 37.1% | 7.2 | | Combined ratio (CR) | 60.6% | 64.9% | (4.3) | 62.7% | 59.1% | 3.6 | | Underlying combined ratio | 62.2% | 66.4% | (4.2) | 65.0% | 59.7% | 5.3 | [Detailed Quarterly Financial Results](index=4&type=section&id=Detailed%20Quarterly%20Financial%20Results) ACIC's detailed Q2 2025 financial results cover net income, premiums, loss and LAE, acquisition costs, administrative expenses, and reinsurance costs [Net Income and EPS](index=4&type=section&id=Net%20Income%20and%20EPS) Net income for Q2 2025 increased significantly year-over-year, driven by higher gross premiums earned and decreased ceded premiums earned, partially offset by increased policy acquisition costs and a net loss from discontinued operations Net Income and EPS (Three Months Ended June 30) | Metric | 2025 | 2024 | | :----------------------------------- | :----- | :----- | | Net income ($ in millions) | 26.4 | 19.1 | | Diluted EPS | 0.53 | 0.39 | - Drivers of net income included increased **gross premiums earned** and decreased **ceded premiums earned**, leading to an overall increase in revenues[16](index=16&type=chunk) - Offset by increased **policy acquisition costs** and a net loss from discontinued operations of **$1.6 million**[16](index=16&type=chunk) [Gross Written Premium](index=4&type=section&id=Gross%20Written%20Premium) Total gross written premium experienced a slight decrease in Q2 2025, primarily due to a reduction in direct premium Gross Written Premium (Three Months Ended June 30) | Metric | 2025 ($ in thousands) | 2024 ($ in thousands) | Change ($) | Change (%) | | :---------------------------------- | :-------------------- | :-------------------- | :--------- | :--------- | | Direct premium | 228,373 | 229,449 | (1,076) | (0.5)% | | Assumed premium | (27) | — | (27) | (100.0)% | | Total commercial property gross written premium | 228,346 | 229,449 | (1,103) | (0.5)% | [Loss and Loss Adjustment Expenses (LAE)](index=4&type=section&id=Loss%20and%20Loss%20Adjustment%20Expenses%20%28LAE%29) Loss and LAE increased slightly in Q2 2025, but as a percentage of net earned premiums, it decreased significantly, indicating improved underwriting performance, with the underlying gross loss and LAE ratio also showing a decrease Loss and LAE (Three Months Ended June 30) | Metric | 2025 ($ in thousands) | 2024 ($ in thousands) | Change ($) | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | | Net loss and LAE | 15,540 | 15,277 | 263 | | % of Net earned premiums | 19.8% | 24.1% | (4.3) pts | | Gross underlying loss and LAE ratio | 10.2% | 10.5% | (0.3) pts | [Policy Acquisition Costs](index=4&type=section&id=Policy%20Acquisition%20Costs) Policy acquisition costs increased substantially in Q2 2025, primarily due to a decrease in ceding commission income resulting from reduced quota share reinsurance coverage and an increase in external management fees Policy Acquisition Costs (Three Months Ended June 30) | Metric | 2025 ($ in thousands) | 2024 ($ in thousands) | Change ($) | | :---------------------- | :-------------------- | :-------------------- | :--------- | | Policy acquisition costs | 24,257 | 13,939 | 10,318 | - Increase primarily due to a decrease in **ceding commission income** from reduced quota share reinsurance coverage (from **40% to 20%** effective June 1, 2024, and to **15%** effective June 1, 2025)[20](index=20&type=chunk) - External management fees also increased due to a **one percent increase** in the management fee and profit share accrual with AmRisc, LLC[20](index=20&type=chunk) [General and Administrative Expenses](index=4&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses decreased in Q2 2025, driven by a non-recurring employee retention tax credit refund and reduced spending on professional and consulting services General and Administrative Expenses (Three Months Ended June 30) | Metric | 2025 ($ in thousands) | 2024 ($ in thousands) | Change ($) | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | | General and administrative expenses | 7,778 | 11,938 | (4,160) | - Decrease driven by a **non-recurring employee retention tax credit refund** received in Q2 2025[21](index=21&type=chunk) - External spending for professional and consulting services also decreased[21](index=21&type=chunk) [Reinsurance Costs](index=4&type=section&id=Reinsurance%20Costs) The total ceding ratio decreased in Q2 2025, primarily due to a reduction in quota share reinsurance coverage, which was replaced by more cost-effective excess-of-loss coverage Reinsurance Costs as a Percentage of Gross Earned Premium | Category | 2025 | 2024 | | :--------- | :--- | :--- | | Non-at-Risk | (0.3)% | (0.2)% | | Quota Share | (15.1)% | (26.4)% | | All Other | (37.2)% | (32.7)% | | Total Ceding Ratio | (52.6)% | (59.3)% | - Decrease in quota share reinsurance coverage from **40% to 20%** (effective June 1, 2024) and further to **15%** (effective June 1, 2025) lowered the overall ceding ratio[23](index=23&type=chunk) - Replacement excess of loss coverage was more **cost-effective** than higher quota share coverage[23](index=23&type=chunk) [Financial Position & Investments](index=5&type=section&id=Financial%20Position%20%26%20Investments) ACIC's financial position shows significant growth in investment holdings and an increase in book value per share [Investment Portfolio Highlights](index=5&type=section&id=Investment%20Portfolio%20Highlights) The company's cash, restricted cash, and investment holdings significantly increased from December 31, 2024, to June 30, 2025, driven by cash flows from operations, with fixed maturities remaining the largest component of investments Cash and Investment Holdings | Metric | June 30, 2025 ($ in millions) | December 31, 2024 ($ in millions) | | :------------------------------------------ | :------------------------------ | :-------------------------------- | | Total cash, restricted cash and investment holdings | 726.2 | 540.8 | | Fixed maturities as % of total investments | 78.0% | 82.3% | | Modified duration of fixed maturity investments | 2.2 years | 2.2 years | - Increase driven by **cash flows from operations**[24](index=24&type=chunk) - Holdings consist of U.S. government and agency securities, corporate debt, mutual funds, and investment grade money market instruments[24](index=24&type=chunk) [Book Value Analysis](index=6&type=section&id=Book%20Value%20Analysis) Book value per common share and underlying book value per common share both increased significantly from December 31, 2024, to June 30, 2025, primarily due to an increase in retained earnings from net income Book Value Per Share | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Book Value Per Common Share | $6.00 | $4.89 | | Underlying Book Value Per Common Share | $6.20 | $5.21 | - Increase driven by an increase in **retained earnings** as a result of net income for the first half of 2025[26](index=26&type=chunk) [Discontinued Operations](index=8&type=section&id=Discontinued%20Operations) This section details the completed sale of Interboro Insurance Company, including cash proceeds and financial impact [Interboro Insurance Company Sale](index=8&type=section&id=Interboro%20Insurance%20Company%20Sale) ACIC completed the sale of its subsidiary, Interboro Insurance Company (IIC), on April 1, 2025, for $25.679 million in cash, resulting in a loss on disposal and a loss on IIC's fixed maturity portfolio - Sale of Interboro Insurance Company (IIC) to Forza Insurance Holdings, LLC closed on **April 1, 2025**[38](index=38&type=chunk) - Received cash proceeds totaling **$25,679,000** from the sale[38](index=38&type=chunk) - Resulted in a **loss on disposal of $247,000**, net of tax impact, and a **$1,348,000 loss**, net of tax impact, on IIC's fixed maturity portfolio[38](index=38&type=chunk) [Definitions of Non-GAAP Measures](index=7&type=section&id=Non-GAAP%20Measures%20Definitions) This section defines ACIC's key non-GAAP financial measures, such as core income, core return on equity, and underlying ratios [Core Income (Loss)](index=7&type=section&id=Core%20Income%20%28Loss%29) Core income (loss) is a non-GAAP measure that adjusts net income (loss) by excluding amortization of intangible assets, income/loss from discontinued operations, realized gains/losses, and unrealized gains/losses on equity securities, providing a clearer view of the company's operating performance - Computed by adding **amortization (net of tax)** to net income (loss) and subtracting **income (loss) from discontinued operations**, **realized gains (losses) on investment portfolio**, and **unrealized gains (losses) on equity securities** (all net of tax)[32](index=32&type=chunk) - Excludes items not arising through normal operations or varying independently of operations to evaluate performance[32](index=32&type=chunk) [Core Return on Equity](index=7&type=section&id=Core%20Return%20on%20Equity) Core return on equity is a non-GAAP ratio calculated using core income (loss) to evaluate the company's underwriting and operating results, excluding items not necessarily indicative of operating trends - Calculated by dividing **core income (loss)** for the period by the **average stockholders' equity** for the trailing twelve months[33](index=33&type=chunk) - Excludes income/loss from discontinued operations, non-cash amortization of intangible assets, unrealized gains/losses on equity security investments, and net realized gains/losses on investment portfolio[33](index=33&type=chunk) - Used by management to evaluate performance and establish financial targets[33](index=33&type=chunk) [Underlying Combined Ratio](index=8&type=section&id=Underlying%20Combined%20Ratio) The underlying combined ratio is a non-GAAP measure that subtracts the effect of current year catastrophe losses and prior year reserve development from the combined ratio, aiming to highlight business trends obscured by these volatile items - Computed by subtracting the effect of **current year catastrophe losses** and **prior year development** from the combined ratio[35](index=35&type=chunk) - Useful to investors and management to highlight trends not obscured by the frequency and severity of catastrophe losses or unexpected loss development on historical reserves[35](index=35&type=chunk) [Underlying Loss and LAE](index=8&type=section&id=Underlying%20Loss%20and%20LAE) Underlying loss and LAE is a non-GAAP measure that excludes current year catastrophe losses and prior year reserve development from net loss and LAE, allowing for a more accurate analysis of the company's loss trends - Computed by subtracting the effect of **current year catastrophe losses** and **prior year reserve development** from net loss and LAE[36](index=36&type=chunk) - Used to analyze loss trends that may be impacted by these significant and volatile items[36](index=36&type=chunk) [Underlying Book Value Per Common Share](index=8&type=section&id=Underlying%20Book%20Value%20Per%20Common%20Share) Underlying book value per common share is a non-GAAP measure that excludes accumulated other comprehensive income (loss) from common stockholders' equity, providing insight into changes in net worth attributable to management efforts by removing the effect of interest rate fluctuations - Computed by dividing **common stockholders' equity** (excluding accumulated other comprehensive income (loss)) by **total common shares outstanding** plus **dilutive potential common shares outstanding**[37](index=37&type=chunk) - Used to identify and analyze changes in net worth attributable to management efforts, eliminating the effect of interest rates[37](index=37&type=chunk) [Company Information](index=6&type=section&id=Company%20Information) This section provides an overview of ACIC's business, including its focus, partnerships, financial ratings, and conference call details [About American Coastal Insurance Corporation](index=6&type=section&id=About%20American%20Coastal%20Insurance%20Corporation) American Coastal Insurance Corporation is a property and casualty insurance holding company focused on insuring Condominium and Homeowner Association properties and Apartments in Florida, operating with an exclusive partnership with AmRisc Group and maintaining strong financial stability ratings - Holding company of American Coastal Insurance Company, founded in **2007**[30](index=30&type=chunk) - Primary business is insuring **Condominium and Homeowner Association properties**, and **Apartments in Florida**[30](index=30&type=chunk) - Exclusive partnership for distribution of Condominium Association properties in Florida with **AmRisc Group**[30](index=30&type=chunk) - Maintains a Financial Stability Rating of **'A', 'Exceptional' from Demotech**, and an **'A-' insurance financial strength rating with a Positive outlook by Kroll**[30](index=30&type=chunk) [Conference Call & Presentation Details](index=6&type=section&id=Conference%20Call%20%26%20Presentation%20Details) Details for the upcoming quarterly conference call and access to the accompanying earnings presentation are provided for investors - Conference Call Date and Time: **August 6, 2025 - 5:00 P.M. ET**[28](index=28&type=chunk) - Webcast available at investors.amcoastal.com or https://event.webcasts.com/starthere.jsp?ei=1727195&tp_key=9825ec9393[28](index=28&type=chunk) - Earnings presentation available on the Company's website at investors.amcoastal.com/Presentations[29](index=29&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This section provides a standard disclaimer for forward-looking statements, noting that actual results may differ due to risks and uncertainties [Disclaimer](index=8&type=section&id=Disclaimer) The report includes a standard disclaimer regarding forward-looking statements, indicating that these statements are based on estimates and assumptions, and actual results may differ materially due to various risks and uncertainties. The company undertakes no obligation to update these statements - Statements not historical facts are **'forward-looking statements'** based on reasonable estimates, assumptions, and plans[39](index=39&type=chunk) - Actual results could differ materially if underlying estimates, assumptions, or plans prove inaccurate or if other risks arise[40](index=40&type=chunk) - Statements are made subject to the **safe-harbor provisions** of the Private Securities Litigation Reform Act of 1995[40](index=40&type=chunk) - The Company undertakes no obligation to update or revise any forward-looking statements[40](index=40&type=chunk) [Consolidated Financial Statements](index=10&type=section&id=Consolidated%20Financial%20Statements) This section presents ACIC's consolidated financial statements, detailing comprehensive income and balance sheet as of June 30, 2025 [Consolidated Statements of Comprehensive Income](index=10&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The consolidated statements of comprehensive income detail the company's revenue, expenses, net income, and other comprehensive income for the three and six months ended June 30, 2025, and 2024, showing overall growth in net income and total comprehensive income Consolidated Statements of Comprehensive Income (Three Months Ended June 30) | Metric | 2025 ($ in thousands) | 2024 ($ in thousands) | | :------------------------------------------ | :-------------------- | :-------------------- | | Gross premiums written | 228,346 | 229,449 | | Net premiums earned | 78,443 | 63,381 | | Total revenue | 86,467 | 68,656 | | Losses and loss adjustment expenses | 15,540 | 15,277 | | Policy acquisition costs | 24,257 | 13,939 | | General and administrative expenses | 7,778 | 11,938 | | Total expenses | 50,294 | 44,580 | | Income from continuing operations, net of tax | 28,037 | 19,073 | | Net income | 26,442 | 19,054 | | Total comprehensive income | 29,484 | 19,248 | | Diluted EPS (Total) | 0.53 | 0.39 | [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets as of June 30, 2025, and December 31, 2024, show an increase in total assets, primarily driven by higher cash and cash equivalents, and an increase in total stockholders' equity Consolidated Balance Sheets (As of) | Metric | June 30, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | | :------------------------------------------ | :----------------------------- | :------------------------------- | | Total investments | 319,031 | 341,418 | | Total cash, cash equivalents and restricted cash | 407,212 | 199,393 | | Total Assets | 1,346,865 | 1,216,112 | | Unpaid losses and loss adjustment expenses | 219,242 | 322,087 | | Unearned premiums | 383,991 | 285,354 | | Total Liabilities | 1,054,565 | 980,452 | | Total Stockholders' Equity | 292,300 | 235,660 | - Assets held for sale decreased from **$73,243 thousand to $0**, reflecting the completion of the IIC sale[45](index=45&type=chunk) - Common stockholders' equity increased from **$235,660 thousand to $292,300 thousand**[45](index=45&type=chunk)

Core Viewpoint - American Coastal Insurance Corporation is set to release its financial results for the second quarter of 2025 on August 6, 2025, after market close, followed by a conference call at 5:00 p.m. ET [1][2]. Company Overview - American Coastal Insurance Corporation is the holding company for American Coastal Insurance Company, which was established in 2007 to insure condominium and homeowner association properties, as well as apartments in Florida [4]. - The company has an exclusive partnership with AmRisc Group for the distribution of condominium association properties in Florida, focusing on hurricane-exposed properties [4]. - American Coastal Insurance Company has received a Financial Stability Rating of "A, Exceptional" from Demotech and an "A-" insurance financial strength rating with a Positive outlook from Kroll [4]. - The issuer rating for American Coastal Insurance Corporation is 'BBB-' with a Positive outlook from Kroll [4]. Conference Call Details - The conference call for the second quarter results will take place on August 6, 2025, at 5:00 p.m. ET, with participant dial-in numbers provided for both the United States and international callers [3]. - Interested parties are encouraged to join the call 10 minutes prior to the start time [2].

Core Viewpoint - American Coastal Insurance Corporation has received upgrades in its Issuer and Debt ratings from Kroll Bond Rating Agency, reflecting improved financial metrics and a positive outlook for future performance [1][2]. Financial Ratings - Kroll Bond Rating Agency upgraded American Coastal's Issuer Rating from BB+ to BBB- and its Debt Rating from BB+ to BBB- [1]. - The Insurance Financial Strength Rating for American Coastal Insurance Company was affirmed at A- with a Positive outlook [1][2]. Financial Performance - The upgrades are attributed to improvements in financial leverage metrics and strong double-digit EBIT interest coverage [2]. - The change in outlook to Positive indicates expectations of continued favorable operating results and strong risk-adjusted capitalization [2]. Cost Savings - The upgrade to investment grade status will reduce the company's annual interest expense by $1.5 million, supporting its strategy for responsible business growth [3]. Company Overview - American Coastal Insurance Corporation, founded in 2007, specializes in insuring Condominium and Homeowner Association properties in Florida [4]. - The company has an exclusive partnership with AmRisc Group for the distribution of Condominium Association properties in Florida [4]. - American Coastal Insurance Company has received a Financial Stability Rating of "A", Exceptional from Demotech, and maintains an "A-" insurance financial strength rating with a Positive outlook from Kroll [4].

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Core Viewpoint - American Coastal Insurance Corporation held its Q1 2025 earnings conference call on May 8, 2025, with key executives discussing the company's performance and future outlook [1][3]. Group 1: Company Overview - The conference call featured President and CEO Bradford Martz and CFO Svetlana Castle, highlighting the leadership's engagement with investors [1][3]. - The call was made available on the company's website, with a replay option for approximately 30 days, indicating a commitment to transparency and investor relations [3]. Group 2: Financial Communication - The company provided access to the latest earnings release and presentation in the investor section of its website, ensuring stakeholders have the necessary information for analysis [3]. - Forward-looking statements were made during the call, emphasizing the company's reliance on reasonable estimates and assumptions for future performance [4].

Financial Performance - Non-GAAP Core Income decreased by $3.7 million, a -15.3% change year-over-year, to $20.7 million ($0.42 per share) due to higher policy acquisition costs [10] - Net premiums earned increased by $5.7 million, a +9.0% increase year-over-year, reaching $68.3 million [10] - The combined ratio increased to 65.0% from 53.2% in the previous year, while the Non-GAAP underlying combined ratio increased to 68.2% from 52.9% [10] - Net income decreased by $2.251 million, a -9.5% change year-over-year, to $21.348 million [16] - Core income decreased by $3.739 million, a -15.3% change year-over-year, to $20.651 million [16] Balance Sheet and Investments - Total Assets stood at $1.16 billion as of March 31, 2025 [6] - Total Equity was $260.9 million as of March 31, 2025 [6] - Stockholders' equity attributable to ACIC increased by $25.2 million from December 31, 2024, to $260.9 million, or $5.40 per share [10] - Total Cash & Investments increased to $568.827 million, a 5.2% increase from $540.811 million [20] Market and Operations - AmCoastal has roughly 4,239 policies and $660.5 million of premium in-force [5] - The commercial property insurance market in Florida softened, with average premium in-force decreasing by -3.1%, but account retention remained strong at 88.4% [10]