Financial Performance - The company's combined ratio is a key measure of underwriting profitability, with a ratio under 100% indicating an underwriting profit[26]. - 100% of the company's condominium revenue is generated through AmRisc, which manages independent agencies in Florida[27]. - The apartment and assisted living facility policies also generate 100% of their revenue through Skyway Underwriters, which utilizes multiple wholesaler partners[28]. - As of December 31, 2025, the company's risk-based capital (RBC) ratio was 1,757%, significantly exceeding minimum requirements[41]. - The company was fined $400,000 in 2025 related to findings from a statutory financial examination conducted by the Florida Office of Insurance Regulation[38]. - There were no related party transactions for the years ended December 31, 2025, 2024, and 2023, indicating a clean financial record[277]. Environmental Commitment - The company has made a commitment to achieve net-zero carbon emissions by 2030, although it acknowledges that this timeline may need to be recalibrated[56]. Workforce and Diversity - As of December 31, 2025, the company employed 68 individuals, with 11 in the Claims Department and 10 in Sales and Underwriting[61]. - The management team has a gender diversity rate of 44.6%, reflecting a 5.7 percentage point increase from December 31, 2024[65]. - In 2021, a female leader was appointed as General Counsel, and in January 2024, a new female Chief Financial Officer was appointed from outside the organization[67]. - As of December 31, 2025, three of the seven members of the executive leadership team are from underrepresented groups, demonstrating a commitment to ESG goals[67]. - The company emphasizes creating an inclusive environment that reflects the diversity of its policyholders and team[68]. Employee Retention and Benefits - Voluntary attrition rate for the year ended December 31, 2025, was 3.0%, indicating effective employee retention strategies[70]. - Employee benefits include competitive salaries, bonuses, tuition reimbursement, and a robust health care package[73]. Corporate Governance - The company changed its corporate name from United Insurance Holdings Corp. to American Coastal Insurance Corporation on July 10, 2023[71]. - The company operates under one reportable operating segment, with the President and CEO as the chief operating decision maker[72]. - The company has established a culture of accountability and integrity, supported by five core values: collaboration, communication, loyalty, resiliency, and integrity[51]. Transparency and Reporting - The company provides free access to its Annual Reports and other filings through its website, ensuring transparency[75]. - Goodwill is tested for impairment at least annually, with methodologies subject to key judgments and assumptions[275]. Technology and Innovation - The company is focused on leveraging technology and making substantial investments to gain a competitive advantage in the insurance market[34].

Exhibit 99.1 FOR IMMEDIATE RELEASE AMERICAN COASTAL INSURANCE CORPORATION REPORTS FINANCIAL RESULTS FOR ITS FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2025 Company to Host Quarterly Conference Call at 5:00 P.M. ET on February 19, 2026 The information in this press release should be read in conjunction with an earnings presentation that is available on the Company's website at investors.amcoastal.com/events-and-presentations. St. Petersburg, FL - February 19, 2026: American Coastal Insurance Corporation (Nas ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 001-35761 American Coastal Insurance Corporation (Exact Name of Registrant as Specified in its Charter) (State or Other J ...

Financial Performance - Gross premiums written decreased by 22.8% year-over-year to $71,812,000 for Q3 2025, while gross premiums earned increased by 1.6% to $162,757,000[4]. - Net premiums earned rose by 8.5% to $80,818,000 for Q3 2025, contributing to a total revenue increase of 10.1% to $90,395,000[4]. - Consolidated net income increased by 15.5% to $32,483,000 for Q3 2025, with net income available to ACIC stockholders per diluted share rising by 14.0% to $0.65[4]. - Core income increased by 13.1% to $30,467,000 for Q3 2025, with core income per diluted share rising by 13.0% to $0.61[4]. - Net income for Q3 2025 was $32.5 million, or $0.65 per diluted share, up from $28.1 million, or $0.57 per diluted share in Q3 2024, driven by increased gross premiums earned[18]. - Net income for Q3 2025 was $32,483,000, compared to $28,119,000 in Q3 2024, reflecting a growth of 8.4%[44]. - Total revenue for the nine months ended September 30, 2025, was $249,064,000, representing a 14.6% increase from $217,390,000 in the same period of 2024[44]. Expense Management - Total operating expenses increased by 17.7% to $36,760,000 for Q3 2025, with a notable rise in policy acquisition costs[17]. - Policy acquisition costs increased by $4.5 million, or 21.5%, to $25.4 million in Q3 2025 from $20.9 million in Q3 2024[21]. - General and administrative expenses increased by $1.0 million, or 9.7%, to $11.3 million in Q3 2025 from $10.3 million in Q3 2024[22]. Ratios and Returns - The underlying combined ratio improved to 57.8% for Q3 2025, outperforming the target combined ratio of 65%[6]. - The company achieved a return on equity of 47.5% based on GAAP net income for Q3 2025, compared to 56.2% in Q3 2024[8]. - The loss ratio, net, improved to 11.4% for Q3 2025, down from 15.8% in Q3 2024[11]. Asset Management - The company reported a book value per share of $6.71, reflecting a 24.7% increase year-over-year[4]. - Book value per common share increased by 37.2% from $4.89 at December 31, 2024, to $6.71 at September 30, 2025[27]. - Cash and investment holdings increased from $540.8 million at December 31, 2024, to $695.0 million at September 30, 2025, driven by cash flows from operations[25]. - Cash and cash equivalents increased significantly to $267,872,000 as of September 30, 2025, from $137,036,000 at the end of 2024[46]. - Total assets decreased to $1,178,854,000 as of September 30, 2025, down from $1,216,112,000 at the end of 2024[46]. - Unpaid losses and loss adjustment expenses decreased to $188,703,000 from $322,087,000, indicating improved claims management[46]. Strategic Insights - The CEO emphasized the company's strategic positioning for long-term value creation despite softening market conditions[6]. - The company recognized a loss of $247,000 on the disposal of its subsidiary, Interboro Insurance Company, after receiving cash proceeds of $25,679,000 from the sale[39]. Premiums Overview - Total gross written premium decreased by $21.2 million, or 22.8%, to $71.8 million in Q3 2025 from $93.0 million in Q3 2024[19]. - 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[19]. - Ceded premiums earned decreased by $3.8 million, or 4.4%, to $81.9 million in Q3 2025 from $85.7 million in Q3 2024[19]. - The total ceding ratio decreased to 50.3% in Q3 2025 from 53.5% in Q3 2024, reflecting a decrease in quota share reinsurance coverage[24]. - Gross premiums written for Q3 2025 were $71,812,000, a decrease of 22.7% from $93,016,000 in Q3 2024[44]. Shareholder Information - The weighted average shares outstanding for Q3 2025 were 48,664,597, compared to 48,066,358 in Q3 2024[44]. - The company reported a total comprehensive income of $33,874,000 for Q3 2025, slightly down from $35,651,000 in Q3 2024[44].

Financial Performance - Gross premiums written for Q2 2025 were $228.346 million, a slight decrease of 0.5% from $229.449 million in Q2 2024[187]. - Net premiums earned increased by 23.8% to $78.443 million in Q2 2025 from $63.381 million in Q2 2024[187]. - Consolidated net income for the six months ended June 30, 2025, was $47.790 million, up 12.6% from $42.653 million in the same period of 2024[189]. - Core income for Q2 2025 was $26.756 million, up from $19.611 million in Q2 2024, demonstrating strong operational performance[187]. - ACIC net income for Q2 2025 increased by $7,388,000, or 38.8%, to $26,442,000 from $19,054,000 in Q2 2024[229]. - For the six months ended June 30, 2025, net income increased by $5,137,000, or 12.0%, to $47,790,000 from $42,653,000 in the same period in 2024[240]. Loss Management - The company reported a loss ratio of 19.8% for Q2 2025, down from 24.1% in Q2 2024, indicating improved loss management[189]. - The combined ratio improved to 60.6% in Q2 2025 from 64.9% in Q2 2024, suggesting better overall profitability[189]. - The total ceding ratio improved to 52.6% in Q2 2025 from 59.3% in Q2 2024[219]. - Net loss and LAE decreased by $822,000, or 3.0%, to $26,929,000 for the six months ended June 30, 2025, compared to $27,751,000 for the same period in 2024[247]. - Underlying loss and LAE ratio increased to 9.3% for the six months ended June 30, 2025, up 0.3 points from 9.0% in the same period of 2024[247]. Operational Efficiency - The expense ratio remained stable at 40.8% for both Q2 2025 and Q2 2024, reflecting consistent operational efficiency[189]. - General and administrative expenses decreased by $4,160,000, or 34.8%, to $7,778,000 in Q2 2025, driven by a non-recurring employee retention tax credit refund[239]. - General and administrative expenses decreased by $5,906,000, or 25.5%, to $17,284,000 for the six months ended June 30, 2025, driven by a non-recurring employee retention tax credit refund[249]. Policy Growth - Policies in-force increased by 11.0% from 3,964 at June 30, 2024, to 4,402 at June 30, 2025, indicating strong organic growth[184]. - New and renewal policies increased by 339 to 2,728 for the six months ended June 30, 2025 compared to 2,389 in the same period in 2024[243]. Investment and Cash Flow - Total cash, cash equivalents, restricted cash, and investment portfolio reached $726,243,000 as of June 30, 2025, up from $540,811,000 at December 31, 2024, representing a 34.3% increase[202]. - The total investments decreased to $319,031,000 as of June 30, 2025, from $341,418,000 at December 31, 2024, a decline of 6.6%[203]. - Net cash provided by operating activities was $154,392,000 for the six months ended June 30, 2025, down from $250,886,000 in the same period of 2024[257]. - Net sales of investments totaled $25,357,000 during the six months ended June 30, 2025, compared to net purchases of $152,814,000 in the same period of 2024[258]. - Cash provided by financing activities totaled $774,000 for the six months ended June 30, 2025, a decrease from $11,458,000 in the same period of 2024[259]. Reinsurance and Catastrophe Coverage - The company's catastrophe reinsurance program provides coverage up to approximately $1,330,000,000 for a first occurrence and $1,676,000,000 in the aggregate[206]. - The new catastrophe aggregate excess of loss agreement provides $40,000,000 of aggregate limit with a $20,000,000 per occurrence cap effective January 1, 2025[208]. - The company experienced a reduction in reinsurance expense of approximately $6,300,000 and $15,700,000 during the three and six months ended June 30, 2024, respectively, due to a commutation of a private reinsurer's share[209]. - The probability of a single occurrence exceeding the catastrophe reinsurance protection purchased is roughly 0.5% based on a 1-in-201-year return period[206]. - The cession rate for external third-party reinsurance agreements was reduced from 20% to 15% effective June 1, 2025[217]. - Reinsurance costs as a percentage of gross earned premium for the six months ended June 30, 2025, and 2024 were analyzed but specific percentages were not disclosed[217]. Shareholder Value - The book value per share rose to $6.00 as of June 30, 2025, compared to $4.63 a year earlier, reflecting enhanced shareholder value[187]. - As of June 30, 2025, 4,373,000 shares had been sold under the equity distribution agreement, resulting in net proceeds of approximately $38,190,000[254].

Financial Performance - Gross premiums written for Q2 2025 were $228.3 million, a decrease of 0.5% from $229.4 million in Q2 2024[3] - Net premiums earned increased by 23.8% to $78.4 million in Q2 2025, compared to $63.4 million in Q2 2024[3] - Total revenue for Q2 2025 rose by 25.9% to $86.5 million, up from $68.7 million in Q2 2024[3] - Consolidated net income for Q2 2025 was $26.4 million, a 38.8% increase from $19.1 million in Q2 2024[3] - Core income for Q2 2025 was $26.8 million, reflecting a 36.4% increase from $19.6 million in Q2 2024[3] - Total revenue for the first half of 2025 reached $158,669,000, compared to $135,254,000 in the same period of 2024, marking an increase of 17.3%[43] - Net income for Q2 2025 was $26,442,000, up from $19,054,000 in Q2 2024, reflecting a growth of 38.5%[43] - The company reported a basic earnings per share of $0.55 for Q2 2025, compared to $0.40 in Q2 2024, reflecting a growth of 37.5%[43] Underwriting Performance - The combined ratio improved to 60.6% in Q2 2025, down from 64.9% in Q2 2024, indicating better underwriting performance[9] - Loss and LAE increased by $263,000, or 1.7%, to $15.5 million for Q2 2025, while the loss and LAE expense as a percentage of net earned premiums decreased by 4.3 points to 19.8%[19] - Policy acquisition costs increased by $10.4 million, or 74.8%, to $24.3 million for Q2 2025, primarily due to a decrease in ceding commission income[20] Balance Sheet and Investments - The Company's cash and investment holdings increased from $540.8 million at December 31, 2024, to $726.2 million at June 30, 2025, driven by cash flows from operations[24] - Total assets as of June 30, 2025, were $1,346,865,000, an increase from $1,216,112,000 at the end of 2024, indicating a growth of 10.7%[45] - Cash and cash equivalents rose significantly to $315,485,000 in Q2 2025 from $137,036,000 in Q4 2024, showing a substantial increase of 130.6%[45] - Total liabilities increased to $1,054,565,000 as of June 30, 2025, compared to $980,452,000 at the end of 2024, representing a rise of 7.6%[45] - Total stockholders' equity increased to $292,300,000 as of June 30, 2025, from $235,660,000 at the end of 2024, marking a growth of 24.0%[45] Shareholder Value - Book value per share increased by 29.6% to $6.00 in Q2 2025, up from $4.63 in Q2 2024[3] - Book value per common share increased 22.6% from $4.89 at December 31, 2024, to $6.00 at June 30, 2025[26] - The underlying book value per common share increased 18.9% from $5.21 at December 31, 2024, to $6.20 at June 30, 2025[26] Operational Highlights - The CEO highlighted the company's commitment to gaining market share in the commercial residential segment, supported by recent credit rating upgrades[4] - The Company recognized a loss on disposal of $247,000 from the sale of its subsidiary, Interboro Insurance Company, which closed on April 1, 2025[38] - The total ceding ratio decreased from 59.3% in Q2 2024 to 52.6% in Q2 2025 due to a reduction in quota share reinsurance coverage[23] - The company's return on equity based on GAAP net income was 41.1% for Q2 2025, compared to 45.6% for Q2 2024[6] - General and administrative expenses decreased by $4.1 million, or 34.5%, to $7.8 million for Q2 2025, driven by a non-recurring employee retention tax credit refund[21]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________ FORM 10-Q _______________________ ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 001-35761 ____________________ American Coastal Insurance Corporation (Exact ...

[Press Release Overview](index=1&type=section&id=Press%20Release%20Overview) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) American Coastal Insurance Corporation reported its Q1 2025 financial results, showing a 7.2% increase in gross premiums written and an 8.4% increase in total revenue, but consolidated net income decreased by 9.5% to $21.3 million, and diluted EPS fell by 10.4% to $0.43, while book value per share increased by 26.5% year-over-year Q1 2025 vs. Q1 2024 Key Financial Data | Metric | Q1 2025 ($ thousands) | Q1 2024 ($ thousands) | Change (%) | | :--------------------------------- | :-------------------- | :-------------------- | :--------- | | Gross premiums written | 197,852 | 184,601 | 7.2 % | | Net premiums earned | 68,272 | 62,631 | 9.0 % | | Total revenue | 72,202 | 66,598 | 8.4 % | | Consolidated net income | 21,348 | 23,599 | (9.5)% | | Net income per diluted share (Total) | 0.43 | 0.48 | (10.4)% | | Core income | 20,651 | 24,390 | (15.3)% | | Book value per share | 5.40 | 4.27 | 26.5 % | [CEO Commentary](index=3&type=section&id=CEO%20Commentary) CEO B. Bradford Martz highlighted achieving a target combined ratio of 65% and a return on equity over 30% in Q1 2025, attributing the 9% increase in net premiums earned and slight decrease in net loss and LAE to strong account retention, selective new business, and a strategy to retain more business, emphasizing disciplined underwriting for sustainable profitability - Achieved target **combined ratio of 65%** and **return on equity over 30%** in the first quarter of 2025[5](index=5&type=chunk) - Net premiums earned increased **9%** and net loss and loss adjustment expenses decreased slightly compared to the same period last year, driven by strong account retention, selective new business production, and a strategy to retain more business[5](index=5&type=chunk) - The Company remains focused on disciplined underwriting to support sustainable profitability and value creation for shareholders[5](index=5&type=chunk) [Key Performance Ratios](index=3&type=section&id=Key%20Performance%20Ratios) [Return on Equity and Core Return on Equity](index=3&type=section&id=Return%20on%20Equity) The company's GAAP return on equity based on consolidated net income decreased significantly from 67.7% in Q1 2024 to 35.4% in Q1 2025, with core return on equity similarly declining from 70.0% to 34.2% year-over-year Return on Equity (Annualized) | Metric | Q1 2025 | Q1 2024 | | :--------------------------------------------------- | :------ | :------ | | Return on equity based on GAAP income from continuing operations, net of tax | 32.7 % | 68.0 % | | Return on equity based on GAAP net income | 35.4 % | 67.7 % | | Core return on equity | 34.2 % | 70.0 % | [Combined Ratio and Underlying Ratio](index=4&type=section&id=Combined%20Ratio%20Analysis) The consolidated combined ratio increased by 11.8 points to 65.0% in Q1 2025, primarily driven by a 15.0 point increase in the net expense ratio, partially offset by a 3.2 point decrease in the net loss ratio, with the underlying combined ratio also increasing by 15.3 points to 68.2% Combined Ratio Metrics | Metric | Q1 2025 | Q1 2024 | Change (pts) | | :----------------------------------------- | :------ | :------ | :----------- | | Loss ratio, net | 16.7 % | 19.9 % | (3.2) | | Expense ratio, net | 48.3 % | 33.3 % | 15.0 | | Combined ratio (CR) | 65.0 % | 53.2 % | 11.8 | | Underlying combined ratio | 68.2 % | 52.9 % | 15.3 | [Loss Ratios](index=4&type=section&id=Loss%20Ratios) Net loss and LAE decreased by $1.1 million to $11.4 million in Q1 2025, resulting in a 3.2 point decrease in the net loss ratio to 16.7%, while the underlying loss and LAE as a percentage of net earned premiums increased slightly by 0.3 points to 19.9% Loss and LAE Analysis | Metric | Q1 2025 ($ thousands) | Q1 2024 ($ thousands) | Change ($ thousands) | | :-------------------------------------------------- | :-------------------- | :-------------------- | :------------------- | | Loss and LAE | 11,389 | 12,474 | (1,085) | | % of Net earned premiums (Loss ratio, net) | 16.7 % | 19.9 % | (3.2) pts | | Underlying loss and LAE | 13,583 | 12,239 | 1,344 | | % of Net earned premiums (Underlying loss ratio) | 19.9 % | 19.6 % | 0.3 pts | [Expense Ratios](index=4&type=section&id=Expense%20Ratios) Total operating expenses increased significantly by $12.1 million to $33.0 million in Q1 2025, primarily driven by a substantial $13.9 million rise in policy acquisition costs, leading to a 15.0 point increase in the net expense ratio to 48.3% Operating Expenses Analysis | Metric | Q1 2025 ($ thousands) | Q1 2024 ($ thousands) | Change ($ thousands) | | :-------------------------- | :-------------------- | :-------------------- | :------------------- | | Policy acquisition costs | 23,466 | 9,595 | 13,871 | | General and administrative | 9,506 | 11,252 | (1,746) | | Total Operating Expenses | 32,972 | 20,847 | 12,125 | | % of Net earned premiums | 48.3 % | 33.3 % | 15.0 pts | [Detailed Financial Results (Quarter to Date)](index=6&type=section&id=Detailed%20Financial%20Results%20(Quarter%20to%20Date)) [Quarter to Date Financial Results - Net Income](index=6&type=section&id=Net%20Income%20and%20EPS) Net income attributable to the Company for Q1 2025 was $21.3 million ($0.43 per diluted share), down from $23.6 million ($0.48 per diluted share) in Q1 2024, primarily due to increased policy acquisition costs, partially offset by higher gross premiums earned, decreased ceded premiums earned, and lower losses and LAE and G&A expenses, with income from discontinued operations contributing $1.6 million - Net income attributable to the Company for Q1 2025 was **$21.3 million**, or **$0.43 per diluted share**, compared to **$23.6 million**, or **$0.48 per diluted share**, for Q1 2024[13](index=13&type=chunk) - Drivers included increased gross premiums earned and decreased ceded premiums earned, offset by increased policy acquisition costs, partially offset by decreased losses and LAE and general and administrative expenses[13](index=13&type=chunk) - Net income attributable to discontinued operations was **$1.6 million** in Q1 2025, compared to a net loss of **$110 thousand** in Q1 2024[13](index=13&type=chunk) [Quarter to Date Financial Results - Premiums](index=6&type=section&id=Premiums) Total gross written premium increased by 7.2% to $197.9 million for Q1 2025, primarily driven by a $13.3 million increase in direct premium Gross Written Premium | Metric | Q1 2025 ($ thousands) | Q1 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :---------------------------------- | :-------------------- | :-------------------- | :------------------- | :--------- | | Direct premium | 197,902 | 184,601 | 13,301 | 7.2 % | | Assumed premium | (50) | — | (50) | 100.0 % | | Total commercial property gross written premium | 197,852 | 184,601 | 13,251 | 7.2 % | [Quarter to Date Financial Results - Losses and LAE](index=6&type=section&id=Losses%20and%20Loss%20Adjustment%20Expenses%20(LAE)) Loss and LAE decreased by 8.8% to $11.4 million for Q1 2025, with the percentage of net earned premiums decreasing by 3.2 points to 16.7%, though the gross underlying loss and LAE ratio increased by 0.8 points to 8.4% - Loss and LAE decreased by **$1.1 million**, or **8.8%**, to **$11.4 million** for Q1 2025[15](index=15&type=chunk) - Loss and LAE expense as a percentage of net earned premiums decreased **3.2 points** to **16.7%** for Q1 2025[15](index=15&type=chunk) - Excluding catastrophe losses and reserve development, the Company's gross underlying loss and LAE ratio for Q1 2025 would have been **8.4%**, an increase of **0.8 points**[15](index=15&type=chunk) [Quarter to Date Financial Results - Operating Expenses](index=6&type=section&id=Operating%20Expenses) Total operating expenses increased significantly, primarily due to a substantial rise in policy acquisition costs, partially offset by a decrease in general and administrative expenses [Policy Acquisition Costs](index=6&type=section&id=Policy%20Acquisition%20Costs) Policy acquisition costs surged by 144.8% to $23.5 million for Q1 2025, mainly due to a decrease in ceding commission income from reduced quota share reinsurance coverage (40% to 20%) and increased external management fees - Policy acquisition costs increased by **$13.9 million**, or **144.8%**, to **$23.5 million** for Q1 2025[16](index=16&type=chunk) - Primarily due to a decrease in ceding commission income as a result of the Company's decrease in quota share reinsurance coverage from **40% to 20%**, effective June 1, 2024[16](index=16&type=chunk) - External management fees also increased due to a one percent increase in the management fee agreed to in the contract renewal with AmRisc in 2024 and the increase in direct written premiums[16](index=16&type=chunk) [General and Administrative Expenses](index=6&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses decreased by 15.9% to $9.5 million for Q1 2025, primarily due to a non-recurring employee retention tax credit refund received and reduced external spending for audit, actuarial, and legal services - General and administrative expenses decreased by **$1.8 million**, or **15.9%**, to **$9.5 million** for Q1 2025[17](index=17&type=chunk) - Driven by a non-recurring employee retention tax credit refund received during the first quarter of 2025[17](index=17&type=chunk) - External spending for audit, actuarial and legal services decreased quarter-over-quarter[17](index=17&type=chunk) [Reinsurance Costs as a Percentage of Gross Earned Premium](index=6&type=section&id=Reinsurance%20Costs) The total ceding ratio decreased from 61.0% in Q1 2024 to 57.9% in Q1 2025, primarily due to a reduction in quota share reinsurance coverage from 40% to 20%, which led to the purchase of additional, more cost-effective excess-of-loss coverage Reinsurance Costs as a Percentage of Gross Earned Premium | | 2025 | 2024 | | :--- | :--- | :--- | | Non-at-Risk | (0.3)% | (0.2)% | | Quota Share | (16.2)% | (31.5)% | | All Other | (41.4)% | (29.3)% | | Total Ceding Ratio | (57.9)% | (61.0)% | - Ceded premiums earned related to catastrophe excess of loss contracts increased year-over-year, driven by a decrease in quota share reinsurance coverage from **40% to 20%** effective June 1, 2024, which then required additional excess-of-loss coverage to be purchased[19](index=19&type=chunk) - The decrease in quota share reinsurance coverage lowered the Company's overall ceding ratio, as replacement excess of loss coverage was more cost effective[19](index=19&type=chunk) [Investment Portfolio Highlights](index=7&type=section&id=Investment%20Portfolio) The company's cash, restricted cash, and investment holdings increased by $28 million to $568.8 million at March 31, 2025, primarily due to positive cash flows from operations, with fixed maturities constituting 84.3% of total investments and a modified duration of 2.0 years - Cash, restricted cash and investment holdings increased from **$540.8 million** at December 31, 2024, to **$568.8 million** at March 31, 2025, driven by positive cash flows from operations[20](index=20&type=chunk) - Fixed maturities represented approximately **84.3%** of total investments at March 31, 2025, compared to **82.3%** at December 31, 2024[20](index=20&type=chunk) - The Company's fixed maturity investments had a modified duration of **2.0 years** at March 31, 2025, compared to **2.2 years** at December 31, 2024[20](index=20&type=chunk) [Book Value Analysis](index=7&type=section&id=Book%20Value) Book value per common share increased by 10.4% from $4.89 at December 31, 2024, to $5.40 at March 31, 2025, driven by an increase in retained earnings from net income, with underlying book value per common share (excluding AOCI) also increasing by 8.8% to $5.67 Book Value per Common Share | Metric | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Book Value Per Common Share | $5.40 | $4.89 | | Underlying Book Value Per Common Share | $5.67 | $5.21 | - An increase in the Company's retained earnings as a result of net income for the quarter ended March 31, 2025, drove the increase in the Company's book value per share[21](index=21&type=chunk) [Company Information & Non-GAAP Measures](index=8&type=section&id=Company%20Information%20%26%20Non-GAAP%20Measures) [Conference Call Details & Presentation](index=8&type=section&id=Conference%20Call%20%26%20Presentation) The company hosted a quarterly conference call on May 8, 2025, at 5:00 P.M. ET, with an earnings presentation available on its investor relations website - Quarterly conference call held on **May 8, 2025, at 5:00 P.M. ET**[23](index=23&type=chunk) - Earnings presentation is available on the Company's website at investors.amcoastal.com/Presentations[24](index=24&type=chunk) [About American Coastal Insurance Corporation](index=8&type=section&id=About%20the%20Company) American Coastal Insurance Corporation, founded in 2007, is a property and casualty insurance holding company specializing in insuring Condominium and Homeowner Association properties and Apartments in Florida, holding an "A" Financial Stability Rating from Demotech and an "A-" insurance financial strength rating from Kroll - American Coastal Insurance Corporation (ACIC) is a property and casualty insurance holding company, founded in **2007**, for the purpose of insuring Condominium and Homeowner Association properties, and Apartments in the state of Florida[25](index=25&type=chunk) - Has an exclusive partnership for distribution of Condominium Association properties in Florida with AmRisc Group[25](index=25&type=chunk) - Earned a Financial Stability Rating of **"A", "Exceptional"** from Demotech, and maintains an **"A-"** insurance financial strength rating with a Stable outlook by Kroll[25](index=25&type=chunk) [Definitions of Non-GAAP Measures](index=10&type=section&id=Definitions%20of%20Non-GAAP%20Measures) This section defines and reconciles several non-GAAP financial measures, including core income, core return on equity, underlying combined ratio, underlying loss and LAE, and underlying book value per common share, used to provide a clearer view of operating performance by excluding non-indicative items - Core income (loss) is a non-GAAP measure computed by adjusting net income (loss) for amortization of intangible assets, discontinued operations, and realized/unrealized investment gains/losses, net of tax, to focus on normal operations[29](index=29&type=chunk) - Core return on equity is a non-GAAP ratio calculated using core income to evaluate underwriting and operating results, as excluded items are not necessarily indicative of operating trends[30](index=30&type=chunk) - Underlying combined ratio and underlying loss and LAE are non-GAAP measures that exclude current year catastrophe losses and prior year reserve development to highlight business trends obscured by these volatile items[31](index=31&type=chunk)[32](index=32&type=chunk) - Underlying book value per common share is a non-GAAP measure that excludes accumulated other comprehensive loss to analyze the change in net worth attributable to management efforts, eliminating the effect of interest rates[33](index=33&type=chunk)[34](index=34&type=chunk) [Discontinued Operations](index=11&type=section&id=Discontinued%20Operations) The company completed the sale of its subsidiary, Interboro Insurance Company (IIC), to Forza Insurance Holdings, LLC on April 1, 2025, for approximately $26.5 million in cash proceeds, with the gain or loss from deconsolidation not anticipated to be material - On April 1, 2025, the Company completed the sale of its subsidiary, Interboro Insurance Company (IIC), to Forza Insurance Holdings, LLC[35](index=35&type=chunk) - The Company received cash proceeds totaling approximately **$26.5 million** from the sale[35](index=35&type=chunk) - The gain or loss from the deconsolidation of IIC is not anticipated to be material to the financial statements[35](index=35&type=chunk) [Forward-Looking Statements](index=11&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, noting that actual results may differ materially from expectations due to various risks and uncertainties detailed in SEC filings, and the company undertakes no obligation to update these statements - Statements that are not historical facts are "forward-looking statements" based on reasonable estimates, assumptions and plans[36](index=36&type=chunk) - Actual results could differ materially from those expressed in, or implied by, the forward-looking statements if estimates, assumptions, or plans prove inaccurate or if other risks or uncertainties arise[36](index=36&type=chunk) - The Company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable law[36](index=36&type=chunk) [Consolidated Financial Statements](index=12&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Comprehensive Income](index=12&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) For Q1 2025, total revenues increased to $72.2 million from $66.6 million, but total expenses rose significantly to $47.1 million from $36.0 million due to higher policy acquisition costs, resulting in decreased income from continuing operations to $19.7 million (from $23.7 million) and net income of $21.3 million (from $23.6 million), while total comprehensive income slightly increased to $24.2 million Consolidated Statements of Comprehensive Income (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 ($ thousands) | Q1 2024 ($ thousands) | | :---------------------------------------- | :-------------------- | :-------------------- | | Gross premiums written | 197,852 | 184,601 | | Net premiums earned | 68,272 | 62,631 | | Total revenues | 72,202 | 66,598 | | Losses and loss adjustment expenses | 11,389 | 12,474 | | Policy acquisition costs | 23,466 | 9,595 | | General and administrative expenses | 9,506 | 11,252 | | Total expenses | 47,078 | 36,040 | | Income from continuing operations, net of tax | 19,711 | 23,709 | | Income (loss) from discontinued operations, net of tax | 1,637 | (110) | | Net income | 21,348 | 23,599 | | Total comprehensive income | 24,178 | 23,401 | | Diluted EPS (Total) | 0.43 | 0.48 | [Consolidated Balance Sheets](index=13&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to $1,159.6 million from $1,216.1 million, largely due to decreases in reinsurance recoverable and ceded unearned premiums, while total liabilities also decreased to $898.8 million from $980.5 million, driven by lower unpaid losses and LAE and reinsurance payable, and stockholders' equity increased to $260.9 million from $235.7 million due to retained earnings Consolidated Balance Sheets (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :------------------------------------ | :----------------------------- | :------------------------------ | | Total investments | 335,787 | 341,418 | | Cash and cash equivalents | 167,155 | 137,036 | | Reinsurance recoverable on paid and unpaid losses | 202,391 | 263,419 | | Ceded unearned premiums | 121,138 | 160,893 | | Total Assets | 1,159,646 | 1,216,112 | | Unpaid losses and loss adjustment expenses | 256,289 | 322,087 | | Unearned premiums | 321,105 | 285,354 | | Reinsurance payable on premiums | 53,761 | 83,130 | | Total Liabilities | 898,766 | 980,452 | | Total Stockholders' Equity | 260,880 | 235,660 |