American Coastal Insurance Corporation Reports Financial Results for Its Third Quarter Ended September 30, 2026

Net pricing fell 25.6% year over year as the insurance market softened.

Rhea-AI Summary

American Coastal Insurance (ACIC) reported third-quarter 2026 net income of $19.4 million, down from the same quarter a year earlier. Diluted earnings fell to $0.40 from $0.65, while revenue declined 21.8% to $70.704 million. Gross premiums written rose 3.2% to $74.1 million, but net premiums earned fell 19.0% to $65.452 million.

The combined ratio, measuring losses and operating expenses against net premiums earned, increased to 64.7% from 56.9%. Book value per share reached $7.52, up 15.5% since year-end. Nine-month net income declined 24.6% to $60.547 million. Participation in AmRisc’s nationwide excess-and-surplus commercial property portfolio added $37.3 million of premium this year. ACES Specialty received its certificate of authority; the company expects to begin writing excess-and-surplus commercial property through Skyway in Florida, Texas and South Carolina in the coming months.

14 points · 0 major

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0 major · 34 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter gross premiums written rose 3.2% to $74.1 million year over year.
• Moderate pointBook value per share reached $7.52, up 12.1% year over year and 15.5% since year-end.
• Moderate pointAmRisc nationwide excess-and-surplus portfolio participation added $37.3 million of premium so far in 2026.
• Moderate pointThe AmRisc partnership was placed on a permanent footing during the quarter.
• Moderate pointThird-quarter ceded premiums earned, representing reinsurance costs, decreased 10.9% to $73.0 million year over year.
• Moderate pointThird-quarter losses and loss adjustment expenses decreased 13.0% to $8.0 million year over year.

8 minor points

• Minor pointACES Specialty received its certificate of authority.
• Minor point. Forward-looking: it has not happened yet and may not happen.The company expects commercial property writing through Skyway in Florida, Texas and South Carolina in coming months.
• Minor pointThird-quarter favorable prior-year reserve development increased to $5.495 million from $1.124 million.
• Minor pointNine-month favorable prior-year reserve development increased to $6.394 million from $4.593 million.
• Minor pointThird-quarter policy acquisition costs decreased 2.4% to $24.8 million year over year.
• Minor pointNine-month policy acquisition costs fell to $69.928 million from $73.162 million.
• Minor pointThird-quarter general and administrative expenses decreased 15.9% to $9.5 million year over year.
• Minor pointNine-month underlying losses and loss adjustment expenses, a non-GAAP measure, fell to $37.150 million from $40.308 million.

Negative

• Moderate pointThird-quarter net income fell 40.3% to $19.4 million; diluted earnings declined to $0.40 from $0.65.
• Moderate pointThird-quarter revenue decreased 21.8% to $70.704 million year over year.
• Moderate pointThird-quarter net premiums earned declined 19.0% to $65.452 million year over year.
• Moderate pointThird-quarter gross premiums earned decreased 14.9% to $138.5 million year over year.
• Moderate pointThird-quarter net pricing decreased 25.6% year over year as the market softened.
• Moderate pointThird-quarter combined ratio increased 7.8 points to 64.7% from 56.9%.
• Moderate pointThird-quarter annualized GAAP return on equity fell to 22.9% from 47.5%.
• Moderate pointThird-quarter non-GAAP core income declined 33.1% to $20.376 million; core diluted earnings fell to $0.42 from $0.61.
• Moderate pointNine-month gross premiums written declined 11.7% to $439.810 million year over year.
• Moderate pointNine-month gross premiums earned decreased 14.7% to $418.338 million year over year.
• Moderate pointNine-month net premiums earned declined 11.8% to $200.761 million year over year.

23 minor points

• Minor pointThird-quarter underlying combined ratio, a non-GAAP measure, increased 10.6 points to 68.4% from 57.8%.
• Minor pointThird-quarter net loss ratio increased 0.8 points to 12.2% from 11.4%.
• Minor pointThird-quarter expense ratio increased 7.0 points to 52.5% from 45.5%.
• Minor pointThird-quarter catastrophe losses increased to $3.055 million from $425,000.
• Minor pointThird-quarter underlying losses and loss adjustment expenses increased to $10.407 million from $9.910 million.
• Minor pointThird-quarter underlying loss ratio against gross earned premiums increased 1.4 points to 7.5% from 6.1%.
• Minor pointThird-quarter underlying loss ratio against net earned premiums increased 3.6 points to 15.9% from 12.3%.
• Minor pointThird-quarter ceding ratio increased 2.5 percentage points to 52.8% from 50.3%.
• Minor pointThird-quarter annualized non-GAAP core return on equity fell to 24.1% from 44.5%.
• Minor pointNine-month net income declined 24.6% to $60.547 million; diluted earnings fell to $1.23 from $1.61.
• Minor pointNine-month revenue decreased 9.9% to $224.525 million year over year.
• Minor pointNine-month combined ratio increased 7.9 points to 68.5% from 60.6%.
• Minor pointNine-month underlying combined ratio increased 6.2 points to 68.6% from 62.4%.
• Minor pointNine-month net loss ratio increased 2.6 points to 18.5% from 15.9%.
• Minor pointNine-month expense ratio increased 5.3 points to 50.0% from 44.7%.
• Minor pointNine-month losses and loss adjustment expenses increased to $37.043 million from $36.140 million.
• Minor pointNine-month catastrophe losses increased to $6.287 million from $425,000.
• Minor pointNine-month underlying loss ratio against gross earned premiums increased 0.7 points to 8.9% from 8.2%.
• Minor pointNine-month underlying loss ratio against net earned premiums increased 0.9 points to 18.6% from 17.7%.
• Minor pointNine-month general and administrative expenses increased to $30.487 million from $28.605 million.
• Minor pointNine-month annualized GAAP return on equity fell to 23.9% from 39.1%.
• Minor pointNine-month non-GAAP core income declined 27.9% to $56.145 million; core diluted earnings fell to $1.14 from $1.57.
• Minor pointNine-month annualized non-GAAP core return on equity fell to 22.1% from 37.9%.

News Explained

Underlying losses and expenses took a higher share of premiums, while favorable reserve development partly reduced the reported combined ratio.

ACIC reported third-quarter results, with its underlying combined ratio at 68.4%, up from 57.8% a year earlier, despite management’s statement that portfolio quality had not changed.

The company defines the combined ratio as the sum of its net loss and expense ratios; favorable prior-year reserve development reduced the reported ratio by 8.4 percentage points, while catastrophe losses added 4.7 percentage points.

Gross premiums written increased 3.2% year over year while gross premiums earned decreased 14.9%; management said softer market conditions and a 25.6% decline in net pricing contributed to the earned-premium drop. The ceding ratio rose to 52.8% from 50.3%, which the company said was driven by additional catastrophe reinsurance purchased in 2026 to raise the exhaustion point.

Key Figures

Net income: $19.4 million vs. $32.5 million; down 40.3% Diluted EPS: $0.40 vs. $0.65; down 38.5% Gross premiums written: $74.1 million vs. $71.8 million; up 3.2% +5 more

Net income

$19.4 million vs. $32.5 million; down 40.3%

Third quarter 2026 vs. third quarter 2025

Diluted EPS

$0.40 vs. $0.65; down 38.5%

Third quarter 2026 vs. third quarter 2025

Gross premiums written

$74.1 million vs. $71.8 million; up 3.2%

Third quarter 2026 vs. third quarter 2025

Net premiums earned

$65,452 thousand vs. $80,818 thousand; down 19.0%

Third quarter 2026 vs. third quarter 2025

Core income per diluted share

$0.42 vs. $0.61; down 31.1%

Third quarter 2026 vs. third quarter 2025

Combined ratio

64.7% vs. 56.9%; increased 7.8 points

Third quarter 2026 vs. third quarter 2025

Book value per share

$7.52; up 15.5%

September 30, 2026 vs. December 31, 2025

AmRisc portfolio premium

$37.3 million

Premium added so far in 2026 from participation in AmRisc's nationwide E&S commercial property portfolio

Previous Earnings Reports

2 past events · Latest: Aug 05

Same Type 2 events

1. Aug 05

   Quarterly earnings

   24h Move

   -6.1%

   Net income fell as revenue and premiums declined amid softer pricing.

2. Nov 05

   Quarterly earnings

   24h Move

   -1.7%

   Net income and revenue increased year over year, while underlying combined ratio widened.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, modified duration, quota share, aoci

4 terms

gaap financial

"measures that are not based on generally accepted accounting principles ("GAAP")"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

modified duration financial

"had a modified duration of 2.3 years"

A measure of a bond or fixed-income portfolio’s price sensitivity to changes in interest rates, expressed as the approximate percentage change in price for a one percentage-point move in yield. It matters to investors because it quantifies interest-rate risk—higher modified duration means larger price swings for the same rate change, allowing comparison of how different bonds or portfolios will react, like how a longer seesaw arm produces bigger movement.

View in glossary

quota share financial

"Quota Share | (12.7)% | | (12.8)%"

A quota share is a proportional reinsurance arrangement in which an insurer cedes a fixed percentage of its policies, premiums and claims to another insurer so both parties take the same slice of revenue and losses. For investors, quota share deals change how much risk and income remain on a company’s balance sheet, which can smooth earnings, free up capital for growth, and alter profit margins—like handing someone a steady slice of every pie you bake.

aoci financial

"Accumulated Other Comprehensive Income ("AOCI")"

Accumulated Other Comprehensive Income (AOCI) is a section of owners’ equity that records certain unrealized gains and losses that aren’t shown in the company’s regular profit and loss statement—things like currency translation shifts, changes in the value of certain investments, or pension plan adjustments. Think of it as a separate holding jar for value swings the company hasn’t cashed in yet; investors watch it because large or volatile balances can change reported net worth and signal future earnings or balance-sheet risk when those items are realized.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Company to Host Quarterly Conference Call at 5:00 P.M. ET on October 29, 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, Fla., Oct. 29, 2026 (GLOBE NEWSWIRE) -- American Coastal Insurance Corporation (Nasdaq: ACIC) ("ACIC" or the "Company"), a property and casualty insurance holding company, today reported its financial results for the third quarter ended September 30, 2026.

($ in thousands, except for per share data)	Three Months Ended September 30,											Nine Months Ended September 30,
	2026				2025				Change			2026				2025				Change
Gross premiums written	$	74,111			$	71,812			3.2	%		$	439,810			$	498,010			(11.7	)%
Gross premiums earned		138,474				162,757			(14.9	)%			418,338				490,318			(14.7	)%
Net premiums earned		65,452				80,818			(19.0	)%			200,761				227,533			(11.8	)%
Total revenue		70,704				90,395			(21.8	)%			224,525				249,064			(9.9	)%
Income from continuing operations, net of tax		19,397				32,483			(40.3	)%			60,547				80,231			(24.5	)%
Income from discontinued operations, net of tax		—				—			NM				—				42			NM
Consolidated net income	$	19,397			$	32,483			(40.3	)%		$	60,547			$	80,273			(24.6	)%
Net income available to ACIC stockholders per diluted share
Continuing Operations	$	0.40			$	0.65			(38.5	)%		$	1.23			$	1.61			(23.6	)%
Discontinued Operations		—				—			NM				—				—			NM
Total	$	0.40			$	0.65			(38.5	)%		$	1.23			$	1.61			(23.6	)%
Reconciliation of net income to core income:
Plus: Non-cash amortization of intangible assets	$	610			$	609			0.2	%		$	1,830			$	1,828			0.1	%
Less: Income from discontinued operations, net of tax		—				—			NM				—				42			NM
Less: Net realized gains (losses) on investment portfolio		(4	)			—			NM				3,266				1,382			NM
Less: Unrealized gains (losses) on equity securities		(625	)			3,161			NM				4,136				3,429			20.6	%
Less: Net tax impact (1)		260				(536	)		NM				(1,170	)			(626	)		86.9	%
Core income (2)		20,376				30,467			(33.1	)%			56,145				77,874			(27.9	)%
Core income per diluted share (2)	$	0.42			$	0.61			(31.1	)%		$	1.14			$	1.57			(27.4	)%
Book value per share												$	7.52			$	6.71			12.1	%

NM = Not Meaningful
(1)	In order to reconcile net income to the core income measures, the Company included the tax impact of all adjustments using the 21% federal corporate tax rate.
(2)	Core income and core income per diluted share, both of which are measures that are not based on generally accepted accounting principles ("GAAP"), are reconciled above to net income and net income per diluted share, respectively, the most directly comparable GAAP measures. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section below.

Comments from President & Chief Executive Officer, B. Bradford Martz: 

"Our third quarter results reflect the strength of our disciplined underwriting in a softening market. With our net pricing down more than 25% year over year, American Coastal delivered solid results against a very strong prior-year quarter, including net income of $19.4 million, a 64.7% combined ratio and a 24.1% core return on equity. Just as important, our underlying combined ratio was 68.4% for the quarter, in line with the first two quarters of the year, which tells us the quality of our portfolio has not changed even as rates have come down. We also returned to year-over-year growth in gross premiums written for the first time since early 2025.

We continue to generate strong, profitable results while using this part of the cycle to position American Coastal to benefit meaningfully from the next hard market. Book value per share reached $7.52, up 15.5% since year-end. During the quarter, we put our AmRisc partnership on a permanent footing, and our participation in AmRisc’s nationwide E&S commercial property portfolio has added $37.3 million of premium so far this year. We also received our certificate of authority for ACES Specialty and expect to begin writing E&S commercial property through Skyway in Florida, Texas and South Carolina in the coming months. With a strong balance sheet and new avenues for growth, we believe American Coastal is well positioned to compound significant value for shareholders over the long term."

Return on Equity and Core Return on Equity

The calculations of the Company's return on equity and core return on equity are shown below.

($ in thousands)	Three Months Ended September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
Income from continuing operations, net of tax	$	19,397			$	32,483			$	60,547			$	80,231
Return on equity based on GAAP income from continuing operations, net of tax (1)		22.9	%			47.5	%			23.9	%			39.1	%
Income from discontinued operations, net of tax	$	—			$	—			$	—			$	42
Return on equity based on GAAP income from discontinued operations, net of tax (1)		—	%			—	%			—	%			—	%
Consolidated net income	$	19,397			$	32,483			$	60,547			$	80,273
Return on equity based on GAAP net income (1)		22.9	%			47.5	%			23.9	%			39.1	%
Core income	$	20,376			$	30,467			$	56,145			$	77,874
Core return on equity (1)(2)		24.1	%			44.5	%			22.1	%			37.9	%

(1)	Return on equity for the three and nine months ended September 30, 2026 and 2025 is calculated on an annualized basis by dividing the net income or core income for the period by the average stockholders' equity for the trailing twelve months.
(2)	Core return on equity, a measure that is not based on GAAP, is calculated based on core income, which is reconciled on the first page of this press release to net income, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the"Definitions of Non-GAAP Measures"section below.

Combined Ratio and Underlying Ratio

The calculations of the Company's combined ratio and underlying combined ratio are shown below.

($ in thousands)	Three Months Ended September 30,								Nine Months Ended September 30,
	2026		2025		Change				2026		2025		Change
Loss ratio, net (1)	12.2	%	11.4	%	0.8		pts		18.5	%	15.9	%	2.6		pts
Expense ratio, net (2)	52.5	%	45.5	%	7.0		pts		50.0	%	44.7	%	5.3		pts
Combined ratio (CR) (3)	64.7	%	56.9	%	7.8		pts		68.5	%	60.6	%	7.9		pts
Effect of current year catastrophe losses on CR	4.7	%	0.5	%	4.2		pts		3.1	%	0.2	%	2.9		pts
Effect of prior year favorable development on CR	(8.4	)%	(1.4	)%	(7.0	)	pts		(3.2	)%	(2.0	)%	(1.2	)	pts
Underlying combined ratio (4)	68.4	%	57.8	%	10.6		pts		68.6	%	62.4	%	6.2		pts

(1)	Loss ratio, net, is calculated as losses and loss adjustment expenses ("LAE"), net of losses ceded to reinsurers, relative to net premiums earned.
(2)	Expense ratio, net, is calculated as the sum of all operating expenses, less interest expense relative to net premiums earned.
(3)	Combined ratio is the sum of the loss ratio, net, and expense ratio, net.
(4)	Underlying combined ratio, a measure that is not based on GAAP, is reconciled above to the combined ratio, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section below.

Combined Ratio Analysis 

The calculations of the Company's loss ratios and underlying loss ratios are shown below.

	Three Months Ended September 30,													Nine Months Ended September 30,
	2026				2025				Change					2026				2025				Change
Net loss and LAE	$	7,967			$	9,211			$	(1,244	)			$	37,043			$	36,140			$	903
% of Gross earned premiums		5.8	%			5.7	%			0.1		pts			8.9	%			7.4	%			1.5		pts
% of Net earned premiums		12.2	%			11.4	%			0.8		pts			18.5	%			15.9	%			2.6		pts
Less:
Current year catastrophe losses	$	3,055			$	425			$	2,630				$	6,287			$	425			$	5,862
Prior year reserve favorable development		(5,495	)			(1,124	)			(4,371	)				(6,394	)			(4,593	)			(1,801	)
Underlying loss and LAE (1)	$	10,407			$	9,910			$	497				$	37,150			$	40,308			$	(3,158	)
% of Gross earned premiums		7.5	%			6.1	%			1.4		pts			8.9	%			8.2	%			0.7		pts
% of Net earned premiums		15.9	%			12.3	%			3.6		pts			18.6	%			17.7	%			0.9		pts

(1)

Underlying loss and LAE is a non-GAAP financial measure and is reconciled above to loss and LAE, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below.

The calculations of the Company's expense ratios are shown below.

	Three Months Ended September 30,													Nine Months Ended September 30,
	2026				2025				Change					2026				2025				Change
Policy acquisition costs	$	24,832			$	25,439			$	(607	)			$	69,928			$	73,162			$	(3,234	)
General and administrative		9,518				11,321				(1,803	)				30,487				28,605				1,882
Total operating expenses	$	34,350			$	36,760			$	(2,410	)			$	100,415			$	101,767			$	(1,352	)
% of Gross earned premiums		24.8	%			22.6	%			2.2		pts			24.0	%			20.8	%			3.2		pts
% of Net earned premiums		52.5	%			45.5	%			7.0		pts			50.0	%			44.7	%			5.3		pts

Quarter to Date Financial Results

Net income for the third quarter ended September 30, 2026 was $19.4 million, or $0.40 per diluted share, compared to net income of $32.5 million, or $0.65 per diluted share, for the third quarter ended September 30, 2025. The primary driver of the decrease in net income during the third quarter of 2026 was lower net premiums earned driven by decreased gross premiums earned.

The Company's total gross written premium increased by $2.3 million, or 3.2%, to $74.1 million for the third quarter ended September 30, 2026, from $71.8 million for the third quarter ended September 30, 2025. Gross premiums earned decreased $24.3 million, or 14.9%, to $138.5 million for the third quarter ended September 30, 2026 from $162.8 million for the third quarter ended September 30, 2025. The decrease in gross premiums earned was driven in part by a 25.6% year-over-year decrease in our net pricing as the market continued to soften. Ceded premiums earned decreased $8.9 million, or 10.9%, to $73.0 million for the third quarter ended September 30, 2026 from $81.9 million for the third quarter ended September 30, 2025, following the softening market conditions. The breakdown of the quarter-over-quarter changes in these premiums is shown in the table below. More detail regarding the Company's ceded premiums can be seen in the "Reinsurance Costs as a Percentage of Gross Earned Premium" section below.

($ in thousands)	Three Months Ended September 30,
	2026				2025				Change $				Change %
Gross premiums written	$	74,111			$	71,812			$	2,299				3.2	%
Change in gross unearned premiums		64,363				90,945				(26,582	)			(29.2	)%
Gross premiums earned		138,474				162,757				(24,283	)			(14.9	)%
Ceded premiums written		(16,537	)			(9,533	)			(7,004	)			73.5	%
Change in ceded unearned premiums		(56,485	)			(72,406	)			15,921				(22.0	)%
Ceded premiums earned		(73,022	)			(81,939	)			8,917				(10.9	)%
Net premiums earned	$	65,452			$	80,818			$	(15,366	)			(19.0	)%

Losses and LAE decreased by $1.2 million, or 13.0%, to $8.0 million for the third quarter ended September 30, 2026, from $9.2 million for the third quarter ended September 30, 2025. Loss and LAE expense as a percentage of net earned premiums increased 0.8 points to 12.2% for the third quarter ended September 30, 2026, compared to 11.4% for the third quarter ended September 30, 2025. Excluding catastrophe losses and reserve development, the Company's gross underlying loss and LAE ratio for the third quarter ended September 30, 2026 would have been 7.5%, an increase of 1.4 points, from 6.1% for the third quarter ended September 30, 2025.

Policy acquisition costs decreased by $0.6 million, or 2.4%, to $24.8 million for the third quarter ended September 30, 2026, from $25.4 million for the third quarter ended September 30, 2025, primarily due to decreased external management fees as a product of the decrease in gross premiums earned shown above. This was partially offset by a decrease in ceding commission income, also as a result of this change in premiums earned.

General and administrative expenses decreased by $1.8 million, or 15.9%, to $9.5 million for the third quarter ended September 30, 2026, from $11.3 million for the third quarter ended September 30, 2025, driven by a decrease in software amortization. This decrease in amortization corresponds with the decrease seen in other income. In addition, external spending for audit, actuarial and legal services decreased quarter-over-quarter.

Reinsurance Costs as a Percentage of Gross Earned Premium

Reinsurance costs as a percentage of gross earned premium in the third quarter of 2026 and 2025 were as follows:

	2026			2025
Non-at-Risk	(0.5	)%		(0.3	)%
Quota Share	(12.7	)%		(12.8	)%
All Other	(39.6	)%		(37.2	)%
Total Ceding Ratio	(52.8	)%		(50.3	)%

The Company's ceding ratio increased by 2.5 percentage points year-over-year, to 52.8% in the third quarter of 2026 from 50.3% in the third quarter of 2025. The increase was driven by the Company's purchase of additional catastrophe reinsurance coverage in 2026 to raise the exhaustion point, although ceded premiums earned declined 10.9% year-over-year amid lower reinsurance pricing in a softening reinsurance market. Gross premiums earned also decreased in the current year, impacting this ratio.

Investment Portfolio Highlights

The Company's cash, cash equivalents, restricted cash and investment holdings increased from $647.7 million at December 31, 2025, to $707.9 million at September 30, 2026. The Company's cash and investment holdings consist primarily of investments in U.S. government and agency securities, corporate debt, mutual funds and investment grade money market instruments. Fixed maturities represented approximately 70.1% of total investments at September 30, 2026, compared to 71.3% of total investments at December 31, 2025. The Company's fixed maturity investments had a modified duration of 2.3 years at September 30, 2026, compared to 2.5 years at December 31, 2025.

Book Value Analysis

Book value per common share increased 15.5% from $6.51 at December 31, 2025, to $7.52 at September 30, 2026. Underlying book value per common share increased 17.0% from $6.66 at December 31, 2025, to $7.79 at September 30, 2026. An increase in the Company's retained earnings as a result of net income for the nine months ended September 30, 2026 drove the increase in the Company's book value per share. As shown in the table below, removing the effect of Accumulated Other Comprehensive Income ("AOCI"), caused by capital market conditions, increases the Company's book value per common share at September 30, 2026.

($ in thousands, except for share and per share data)
	September 30, 2026				December 31, 2025
Book Value per Share
Numerator:
Common stockholders' equity	$	355,679			$	317,565
Denominator:
Total Shares Outstanding		47,289,189				48,764,802
Book Value Per Common Share	$	7.52			$	6.51
Book Value per Share, Excluding the Impact of AOCI
Numerator:
Common stockholders' equity	$	355,679			$	317,565
Less: Accumulated other comprehensive loss		(12,682	)			(7,242	)
Stockholders' Equity, excluding AOCI	$	368,361			$	324,807
Denominator:
Total Shares Outstanding		47,289,189				48,764,802
Underlying Book Value Per Common Share(1)	$	7.79			$	6.66

(1)

Underlying book value per common share is a non-GAAP financial measure and is reconciled above to book value per common share, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures"section below.

Conference Call Details

Date and Time:	October 29, 2026 - 5:00 P.M. ET
Participant Dial-In:	(United States): 833-461-5787 (International): 585-542-9983 Meeting ID: 694 805 776
Webcast:	To listen to the live webcast, please go to https://investors.amcoastal.comand click on the conference call link at the bottom of the page or go to: https://events.q4inc.com/attendee/694805776
	An archive of the webcast will be available for a limited period of time thereafter.
Presentation:	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.

About American Coastal Insurance Corporation

American Coastal Insurance Corporation (amcoastal.com) is the holding company of the insurance carrier, American Coastal Insurance Company, which was founded in 2007 for the purpose of insuring Condominium and Homeowner Association properties, Apartments and Assisted Living Facilities in the state of Florida. American Coastal Insurance Company has an exclusive partnership for distribution of Condominium Association properties in the state of Florida with AmRisc Group (amriscgroup.com), one of the largest Managing General Agents in the country specializing in hurricane-exposed properties. American Coastal Insurance Company has earned an “A”, (“Exceptional”) Financial Stability Rating from Demotech and maintains an “A” insurance financial strength rating with a Stable outlook from KBRA. ACIC maintains a “BBB” issuer rating with a Stable outlook from KBRA.

Contact Information:

Alexander Baty

Vice President, Finance & Investor Relations, American Coastal Insurance Corp.

investorrelations@amcoastal.com

(727) 425-8076

Glen Akselrod

President & Founder, Bristol Investor Relations

ga@bristolir.com

(905) 326-1888

Definitions of Non-GAAP Measures

The Company believes that investors' understanding of ACIC's performance is enhanced by the Company's disclosure of the following non-GAAP measures. The Company's methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Net income (loss) excluding the effects of amortization of intangible assets, income (loss) from discontinued operations, realized gains (losses) and unrealized gains (losses) on equity securities, net of tax (core income (loss)) is a non-GAAP measure that is computed by adding amortization, net of tax, to net income (loss) and subtracting income (loss) from discontinued operations, net of tax, realized gains (losses) on the Company's investment portfolio, net of tax, and unrealized gains (losses) on the Company's equity securities, net of tax, from net income (loss). Amortization expense is related to the amortization of intangible assets acquired, including goodwill, through mergers and, therefore, the expense does not arise through normal operations. Investment portfolio gains (losses) and unrealized equity security gains (losses) vary independent of the Company's operations. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is net income (loss). The core income (loss) measure should not be considered a substitute for net income (loss) and does not reflect the overall profitability of the Company's business.

Core return on equity is a non-GAAP ratio calculated using non-GAAP measures. It is calculated by dividing the core income (loss) for the period by the average stockholders’ equity for the trailing twelve months (or one quarter of such average, in the case of quarterly periods, or three-quarters of such average, in the case of nine-month periods). Core income (loss) is an after-tax non-GAAP measure that is calculated by excluding from net income (loss) the effect of income (loss) from discontinued operations, net of tax, non-cash amortization of intangible assets, including goodwill, unrealized gains or losses on the Company's equity security investments and net realized gains or losses on the Company's investment portfolio. In the opinion of the Company’s management, core income (loss), core income (loss) per share and core return on equity are meaningful indicators to investors of the Company's underwriting and operating results, since the excluded items are not necessarily indicative of operating trends. Internally, the Company’s management uses core income (loss), core income (loss) per share and core return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis. The most directly comparable GAAP measure is return on equity. The core return on equity measure should not be considered a substitute for return on equity and does not reflect the overall profitability of the Company's business.

Combined ratio excluding the effects of current year catastrophe losses and prior year reserve development (underlying combined ratio) is a non-GAAP measure, that is computed by subtracting the effect of current year catastrophe losses and prior year development from the combined ratio. The Company believes that this ratio is useful to investors, and it is used by management to highlight the trends in the Company's business that may be obscured by current year catastrophe losses and prior year development. Current year catastrophe losses cause the Company's loss trends to vary significantly between periods as a result of their frequency of occurrence and severity and can have a significant impact on the combined ratio. Prior year development is caused by unexpected loss development on historical reserves. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of the Company's business.

Net loss and LAE excluding the effects of current year catastrophe losses and prior year reserve development (underlying loss and LAE) is a non-GAAP measure that is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and LAE. The Company uses underlying loss and LAE figures to analyze the Company's loss trends that may be impacted by current year catastrophe losses and prior year development on the Company's reserves. As discussed previously, these two items can have a significant impact on the Company's loss trends in a given period. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is net loss and LAE. The underlying loss and LAE measure should not be considered a substitute for net loss and LAE and does not reflect the overall profitability of the Company's business.

Book value per common share, excluding the impact of accumulated other comprehensive loss (underlying book value per common share), is a non-GAAP measure that is computed by dividing common stockholders' equity after excluding accumulated other comprehensive income (loss), by total common shares outstanding. The Company uses the trend in book value per common share, excluding the impact of accumulated other comprehensive income (loss), in conjunction with book value per common share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes this non-GAAP measure is useful to investors because it eliminates the effect of interest rates that can fluctuate significantly from period to period and are generally driven by economic and financial factors that are not influenced by management. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of accumulated other comprehensive income (loss), should not be considered a substitute for book value per common share and does not reflect the recorded net worth of the Company's business.

Discontinued Operations

On May 9, 2024, the Company entered into the Sale Agreement with Forza Insurance Holdings, LLC ("Forza") in which ACIC agreed to sell and Forza agreed to acquire 100% of the issued and outstanding stock of the Company's subsidiary, Interboro Insurance Company ("IIC"). Forza's application to acquire IIC was approved by the New York Department of Financial Services on February 13, 2025 and the sale closed on April 1, 2025. The Company received cash proceeds totaling $25,679,000 from the sale resulting in a loss on disposal of $247,000, net of tax impact. The Company also recognized a $1,348,000 loss, net of tax impact, on IIC's fixed maturity portfolio, which was included in Accumulated other comprehensive loss on the Company's Consolidated Balance Sheet prior to the sale.

Forward-Looking Statements

Statements made in this press release, or on the conference call identified above, and otherwise, that are not historical facts are “forward-looking statements”. The Company believes these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions, or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those expressed in, or implied by, the forward-looking statements. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words such as “may,” “will,” “expect,” "endeavor," "project," “believe,” "plan," “anticipate,” “intend,” “could,” “would,” “estimate” or “continue” or the negative variations thereof or comparable terminology. Factors that could cause actual results to differ materially may be found in the Company's filings with the U.S. Securities and Exchange Commission, in the “Risk Factors” section in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements.

Consolidated Statements of Comprehensive Income (Unaudited) In thousands, except share and per share amounts
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2026				2025				2026				2025
REVENUE:
Gross premiums written	$	74,111			$	71,812			$	439,810			$	498,010
Change in gross unearned premiums		64,363				90,945				(21,472	)			(7,692	)
Gross premiums earned		138,474				162,757				418,338				490,318
Ceded premiums earned		(73,022	)			(81,939	)			(217,577	)			(262,785	)
Net premiums earned		65,452				80,818				200,761				227,533
Net investment income		5,881				6,416				16,362				16,720
Net realized investment gains (losses)		(4	)			—				3,266				1,382
Net unrealized gains (losses) on equity securities		(625	)			3,161				4,136				3,429
Total revenue		70,704				90,395				224,525				249,064
EXPENSES:
Losses and loss adjustment expenses		7,967				9,211				37,043				36,140
Policy acquisition costs		24,832				25,439				69,928				73,162
General and administrative expenses		9,518				11,321				30,487				28,605
Interest expense		2,344				2,719				7,032				8,155
Total expenses		44,661				48,690				144,490				146,062
Income before other income (loss)		26,043				41,705				80,035				103,002
Other income (loss)		(80	)			665				84				3,114
Income before income taxes		25,963				42,370				80,119				106,116
Provision for income taxes		6,566				9,887				19,572				25,885
Income from continuing operations, net of tax	$	19,397			$	32,483			$	60,547			$	80,231
Income from discontinued operations, net of tax		—				—				—				42
Net income	$	19,397			$	32,483			$	60,547			$	80,273
OTHER COMPREHENSIVE INCOME:
Change in net unrealized gains (losses) on investments		(4,142	)			1,391				(2,874	)			8,645
Reclassification adjustment for net realized investment losses (gains)		4				—				(3,266	)			(1,382	)
Income tax benefit related to items of other comprehensive income		—				—				700				—
Total comprehensive income	$	15,259			$	33,874			$	55,107			$	87,536
Weighted average shares outstanding
Basic		47,192,404				48,664,597				47,939,067				48,413,364
Diluted		48,409,888				49,917,729				49,140,819				49,713,535
Earnings available to ACIC common stockholders per share
Basic
Continuing operations	$	0.41			$	0.67			$	1.26			$	1.66
Discontinued operations		—				—				—				—
Total	$	0.41			$	0.67			$	1.26			$	1.66
Diluted
Continuing operations	$	0.40			$	0.65			$	1.23			$	1.61
Discontinued operations		—				—				—				—
Total	$	0.40			$	0.65			$	1.23			$	1.61
Dividends declared per share	$	—			$	—			$	—			$	—

Consolidated Balance Sheets (Unaudited) In thousands, except share amounts
	September 30, 2026				December 31, 2025
ASSETS
Investments, at fair value:
Fixed maturities, available-for-sale	$	222,345			$	253,152
Equity securities		56,490				61,685
Other investments		38,129				40,053
Total investments	$	316,964			$	354,890
Cash and cash equivalents		294,689				198,762
Restricted cash		96,237				94,092
Total cash, cash equivalents and restricted cash	$	390,926			$	292,854
Accrued investment income		3,042				3,156
Property and equipment, net		910				723
Premiums receivable, net		51,215				70,447
Reinsurance recoverable on paid and unpaid losses, net		69,821				128,205
Ceded unearned premiums		168,275				109,697
Goodwill		59,476				59,476
Deferred policy acquisition costs, net		45,393				37,815
Intangible assets, net		1,593				3,471
Other assets		9,990				11,998
Total Assets	$	1,117,605			$	1,072,732
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses	$	95,223			$	165,701
Unearned premiums		271,088				249,616
Reinsurance payable on premiums		138,805				66,841
Accounts payable and accrued expenses		95,999				112,781
Operating lease liability		2,967				3,135
Notes payable, net		149,603				149,353
Other liabilities		8,241				7,740
Total Liabilities	$	761,926			$	755,167
Stockholders' Equity:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding	$	—			$	—
Common stock, $0.0001 par value; 100,000,000 shares authorized; 49,305,998 and 48,976,885 issued, respectively; 47,289,189 and 48,764,802 outstanding, respectively		5				5
Additional paid-in capital		442,190				439,742
Treasury shares, at cost: 2,016,809 shares and 212,083 shares, respectively		(19,872	)			(431	)
Accumulated other comprehensive loss		(12,682	)			(7,242	)
Retained earnings (deficit)		(53,962	)			(114,509	)
Total Stockholders' Equity	$	355,679			$	317,565
Total Liabilities and Stockholders' Equity	$	1,117,605			$	1,072,732

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were American Coastal Insurance’s third-quarter 2026 earnings?

American Coastal reported net income of $19.4 million, or $0.40 per diluted share, compared with $32.5 million, or $0.65 per diluted share, in the third quarter of 2025.

Why did ACIC’s third-quarter 2026 earnings decline?

The company identified lower net premiums earned, driven by decreased gross premiums earned, as the primary reason for the earnings decline. Net premiums earned fell 19.0%, while gross premiums earned fell 14.9%. Net pricing decreased 25.6% year over year as the market softened.

Why did American Coastal’s administrative expenses fall in the third quarter of 2026?

General and administrative expenses fell primarily because of lower software amortization. Spending on audit, actuarial and legal services also decreased quarter over quarter. The reduction in amortization corresponded with a decrease in other income.

What does ACIC’s underlying combined ratio exclude?

ACIC’s underlying combined ratio excludes current-year catastrophe losses and prior-year reserve development. This non-GAAP measure was 68.4% in the third quarter of 2026, compared with 57.8% in the third quarter of 2025.