American Coastal Insurance Unveils AmRisc E&S Expansion, Launches ACES, Sets 2026 Guidance

Core Viewpoint - American Coastal Insurance is positioning itself for growth through strategic partnerships and the establishment of a new E&S carrier, while providing optimistic financial guidance for 2026 [3][4][12]. Company Overview - American Coastal Insurance, founded in 2007, specializes in underwriting commercial residential property insurance in Florida, focusing on habitational risks such as condominiums and apartments [2]. - The company insures building shells and related structures but does not cover flood, liability, or contents of individual units [2][18]. Market Position - The company claims to be the market leader for Florida condominium associations, with a number one market share and approximately 4,300 of the 17,000 eligible condominium associations [1]. - American Coastal reported $637 million in premium in-force at the end of Q3 [1]. Strategic Initiatives - The company announced a partnership expansion with AmRisc, targeting a 6% participation in AmRisc's nationwide E&S portfolio, which is expected to generate about $75 million in gross written premium by 2026 [6][8][9]. - A new wholly owned E&S carrier, ACES Specialty Insurance Company, is being established with an initial policyholder surplus of $30 million, aiming to transition to direct underwriting [5][12][13]. Financial Guidance - For 2026, American Coastal projects earnings before income tax between $85 million and $100 million, and total revenue between $335 million and $365 million [4][15]. - The company emphasizes a long-term debt-to-capital target of less than 25% and has authorized up to $25 million for share repurchases [4][16]. Reinsurance Strategy - The company plans to retain a small portion of risk to mitigate catastrophe-driven volatility, with a separate catastrophe reinsurance program to cover its share of the portfolio's exposure [10][11]. - Management indicated that retention would likely be capped at approximately $10.8 million, with additional protections in place for catastrophic events [10][16]. Capital Allocation - American Coastal has paid special cash dividends of $0.50 per share in January 2025 and $0.75 per share in January 2026, supporting a stronger capital position [16][17]. - The company has seen steady growth in liquidity and book value over the last 24 months [15][16].