American Coastal Insurance Corporation Reports Financial Results for Its Second Quarter Ended June 30, 2025

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].