American Coastal Insurance Corporation

American Coastal reported net income of $21.9 million and core income of $16.5 million, down $10.3 million year over year due to softer market conditions and one-time prior-year benefits of $4.2 million. Gross written premiums declined 5.3% from 2025, and the combined ratio was 74.3%, up 13.7 points year over year; the underlying combined ratio was 68.7% versus 62.2% in the prior year. Stockholders’ equity rose $23.2 million, or 7.3%, to $340.8 million, and book value per share increased 10.7% from year-end 2025 to $7.21. For the full year, management left earnings guidance unchanged at $85 million to $100 million, including expected catastrophe losses, but lowered revenue guidance to $300 million to $320 million because of continued pricing pressure.

Brad Martz emphasized that the company is still maintaining or possibly growing its leadership position in Florida commercial-residential property insurance, even though the market remains soft and average premiums are under pressure. He said the company is prioritizing underwriting profitability over top-line growth, but continues to look for intelligent growth opportunities where returns are acceptable. He also highlighted the decision to reduce hurricane exposure as evidence that management is actively managing risk and improving the quality and reliability of earnings and cash flows.

Svetlana Castle said the quarter remained strong despite softer conditions, with net income of $21.9 million and core income of $16.5 million, while the underlying combined ratio stayed at 68.7%. She noted gross written premiums were down 5.3%, the combined ratio increased to 74.3%, and balance sheet liquidity remained strong, with cash and investments up $2.3 million even after $36.6 million of special dividends. Stockholders’ equity reached $340.8 million and book value per share was $7.21, up 10.7% from year-end 2025.

Analysts focused on the $8.4 million cost of the hurricane retention buydown, and management said it should support the prospect of a special dividend, though the size is not yet determined. On reserve development, management said the roughly $767,000 of unfavorable development came from one 2019 sinkhole claim and does not appear recurring. Questions also centered on the new E&S venture, with management saying calendar 2026 contribution is likely closer to $50 million, while a full 12-month run rate could be $60 million to $70 million; they also said the refinancing plan is to cut long-term debt from $150 million to $75 million within 6 to 12 months.