American Coastal Insurance Corporation Reports Financial Results for its First Quarter Ended March 31, 2025
American Coastal Insurance Corporation (NASDAQ: ACIC) reported its Q1 2025 financial results, showing mixed performance. The company's gross premiums written increased 7.2% to $197.9 million, while net income decreased 9.5% to $21.3 million ($0.43 per diluted share) compared to Q1 2024.
Key metrics include a combined ratio of 65% and a return on equity over 30%. The company's net premiums earned increased 9% to $68.3 million, while total revenue grew 8.4% to $72.2 million. Book value per share improved significantly, rising 26.5% year-over-year to $5.40.
The company reduced its quota share reinsurance coverage from 40% to 20% effective June 1, 2024, leading to increased policy acquisition costs but a more cost-effective overall reinsurance structure. Loss and LAE decreased by 8.8% to $11.4 million, while the loss ratio improved to 16.7% from 19.9% year-over-year.
American Coastal Insurance Corporation (NASDAQ: ACIC) ha riportato i risultati finanziari del primo trimestre 2025, mostrando performance contrastanti. I premi lordi sottoscritti sono aumentati del 7,2%, raggiungendo 197,9 milioni di dollari, mentre il utile netto è diminuito del 9,5%, attestandosi a 21,3 milioni di dollari (0,43 dollari per azione diluita) rispetto al primo trimestre 2024.
I principali indicatori includono un rapporto combinato del 65% e un rendimento del capitale proprio superiore al 30%. I premi netti guadagnati sono cresciuti del 9%, raggiungendo 68,3 milioni di dollari, mentre il fatturato totale è aumentato dell'8,4%, arrivando a 72,2 milioni di dollari. Il valore contabile per azione è migliorato significativamente, salendo del 26,5% su base annua a 5,40 dollari.
L'azienda ha ridotto la copertura di riassicurazione quota parte dal 40% al 20%, a partire dal 1° giugno 2024, comportando un aumento dei costi di acquisizione delle polizze ma una struttura di riassicurazione complessivamente più efficiente in termini di costi. Le perdite e le spese per sinistri (LAE) sono diminuite dell'8,8%, attestandosi a 11,4 milioni di dollari, mentre il rapporto sinistri è migliorato, passando dal 19,9% al 16,7% su base annua.
American Coastal Insurance Corporation (NASDAQ: ACIC) reportó sus resultados financieros del primer trimestre de 2025, mostrando un desempeño mixto. Las primas brutas emitidas aumentaron un 7,2% hasta 197,9 millones de dólares, mientras que el ingreso neto disminuyó un 9,5% a 21,3 millones de dólares (0,43 dólares por acción diluida) en comparación con el primer trimestre de 2024.
Los indicadores clave incluyen un índice combinado del 65% y un retorno sobre el capital superior al 30%. Las primas netas devengadas aumentaron un 9% hasta 68,3 millones de dólares, mientras que los ingresos totales crecieron un 8,4% hasta 72,2 millones de dólares. El valor en libros por acción mejoró significativamente, aumentando un 26,5% interanual hasta 5,40 dólares.
La compañía redujo su cobertura de reaseguro por cuota desde el 40% al 20%, efectivo desde el 1 de junio de 2024, lo que llevó a un aumento en los costos de adquisición de pólizas pero a una estructura de reaseguro más rentable en general. Las pérdidas y gastos relacionados (LAE) disminuyeron un 8,8% hasta 11,4 millones de dólares, mientras que el índice de pérdidas mejoró del 19,9% al 16,7% interanual.
American Coastal Insurance Corporation (NASDAQ: ACIC)는 2025년 1분기 재무 실적을 발표하며 혼조된 성과를 보였습니다. 회사의 총 보험료 수입은 7.2% 증가한 1억 9,790만 달러를 기록한 반면, 순이익은 9.5% 감소한 2,130만 달러(희석 주당 0.43달러)로 2024년 1분기 대비 줄었습니다.
주요 지표로는 종합비율 65%와 자기자본이익률 30% 이상이 포함됩니다. 순보험료 수입은 9% 증가한 6,830만 달러, 총수익은 8.4% 증가한 7,220만 달러를 기록했습니다. 주당 장부 가치는 전년 대비 26.5% 상승한 5.40달러로 크게 개선되었습니다.
회사는 2024년 6월 1일부터 쿼터 쉐어 재보험 적용 비율을 40%에서 20%로 줄여, 보험 계약 취득 비용은 증가했으나 전반적으로 비용 효율적인 재보험 구조를 구축했습니다. 손실 및 손해조정비(LAE)는 8.8% 감소한 1,140만 달러였으며, 손실 비율은 전년 동기 대비 19.9%에서 16.7%로 개선되었습니다.
American Coastal Insurance Corporation (NASDAQ : ACIC) a publié ses résultats financiers du premier trimestre 2025, montrant une performance mitigée. Les primes brutes émises ont augmenté de 7,2% pour atteindre 197,9 millions de dollars, tandis que le revenu net a diminué de 9,5% à 21,3 millions de dollars (0,43 dollar par action diluée) par rapport au premier trimestre 2024.
Les indicateurs clés comprennent un ratio combiné de 65% et un rendement des capitaux propres supérieur à 30%. Les primes nettes acquises ont augmenté de 9% pour atteindre 68,3 millions de dollars, tandis que le chiffre d'affaires total a progressé de 8,4% pour atteindre 72,2 millions de dollars. La valeur comptable par action s'est nettement améliorée, augmentant de 26,5% d'une année sur l'autre pour atteindre 5,40 dollars.
La société a réduit sa couverture de réassurance en quote-part de 40% à 20% à compter du 1er juin 2024, ce qui a entraîné une augmentation des coûts d'acquisition des polices, mais une structure de réassurance globalement plus rentable. Les pertes et charges liées aux sinistres (LAE) ont diminué de 8,8% pour s'établir à 11,4 millions de dollars, tandis que le ratio de sinistralité s'est amélioré, passant de 19,9% à 16,7% d'une année sur l'autre.
American Coastal Insurance Corporation (NASDAQ: ACIC) veröffentlichte seine Finanzergebnisse für das erste Quartal 2025 und zeigte eine gemischte Leistung. Die Bruttobeiträge stiegen um 7,2% auf 197,9 Millionen US-Dollar, während der Nettogewinn um 9,5% auf 21,3 Millionen US-Dollar (0,43 US-Dollar je verwässerte Aktie) im Vergleich zum ersten Quartal 2024 sank.
Wichtige Kennzahlen umfassen eine Combined Ratio von 65% und eine Eigenkapitalrendite von über 30%. Die verdienten Nettoprämien stiegen um 9 % auf 68,3 Millionen US-Dollar, während der Gesamtumsatz um 8,4 % auf 72,2 Millionen US-Dollar wuchs. Der Buchwert je Aktie verbesserte sich deutlich und stieg im Jahresvergleich um 26,5 % auf 5,40 US-Dollar.
Das Unternehmen reduzierte seine Rückversicherungsquote von 40 % auf 20 % mit Wirkung zum 1. Juni 2024, was zu höheren Policenerwerbskosten führte, aber eine insgesamt kosteneffizientere Rückversicherungsstruktur ermöglichte. Verluste und Schadenregulierungsaufwendungen (LAE) sanken um 8,8 % auf 11,4 Millionen US-Dollar, während die Schadenquote sich von 19,9 % auf 16,7 % verbesserte.
- Gross premiums written increased 7.2% to $197.9 million
- Net premiums earned grew 9% to $68.3 million
- Book value per share increased 26.5% year-over-year to $5.40
- Loss ratio improved to 16.7% from 19.9%
- Strong return on equity of 32.7% for continuing operations
- More cost-effective reinsurance structure implemented
- Net income decreased 9.5% to $21.3 million
- Combined ratio deteriorated to 65% from 53.2%
- Policy acquisition costs increased significantly by 144.8% to $23.5 million
- Core income decreased 15.3% to $20.7 million
- Core income per diluted share declined 16% to $0.42
Insights
ACIC reported mixed Q1 results with revenue growth but profit decline; strategic reinsurance shift increased expenses despite strong book value growth.
American Coastal Insurance Corporation delivered a 7.2% increase in gross premiums written to
The combined ratio increased significantly to
The expense ratio increase stems from a strategic shift to retain more risk, as ACIC reduced quota share reinsurance from
Results benefited from two one-time items:
The company's financial position strengthened considerably, with book value per share increasing
The investment portfolio grew to
Company to Host Quarterly Conference Call at 5:00 P.M. ET on May 8, 2025
The information in this press release should be read in conjunction with an earnings presentation that is available on the Company's website at investors.amcoastal.com/Presentations.
ST. PETERSBURG, Fla., May 08, 2025 (GLOBE NEWSWIRE) -- American Coastal Insurance Corporation (Nasdaq: ACIC) ("ACIC" or the "Company"), a property and casualty insurance holding company, today reported its financial results for the first quarter ended March 31, 2025.
| ($ in thousands, except for per share data) | Three Months Ended | ||||||||||
| March 31, | |||||||||||
| 2025 | 2024 | Change | |||||||||
| Gross premiums written | $ | 197,852 | $ | 184,601 | 7.2 | % | |||||
| Gross premiums earned | 162,101 | 160,270 | 1.1 | ||||||||
| Net premiums earned | 68,272 | 62,631 | 9.0 | ||||||||
| Total revenue | 72,202 | 66,598 | 8.4 | ||||||||
| Income from continuing operations, net of tax | 19,711 | 23,709 | (16.9 | ) | |||||||
| Income (loss) from discontinued operations, net of tax | 1,637 | (110 | ) | NM | |||||||
| Consolidated net income | $ | 21,348 | $ | 23,599 | (9.5 | ) | |||||
| Net income available to ACIC stockholders per diluted share | |||||||||||
| Continuing Operations | $ | 0.40 | $ | 0.48 | (16.7 | ) | % | ||||
| Discontinued Operations | 0.03 | — | 100.0 | % | |||||||
| Total | $ | 0.43 | $ | 0.48 | (10.4 | ) | % | ||||
| Reconciliation of net income to core income: | |||||||||||
| Plus: Non-cash amortization of intangible assets | $ | 609 | $ | 812 | (25.0 | ) | % | ||||
| Less: Income (loss) from discontinued operations, net of tax | 1,637 | (110 | ) | NM | |||||||
| Less: Net realized gains on investment portfolio | 1,382 | — | 100.0 | % | |||||||
| Less: Unrealized losses on equity securities | (1,963 | ) | (50 | ) | NM | ||||||
| Less: Net tax impact(1) | 250 | 181 | 38.1 | ||||||||
| Core income(2) | 20,651 | 24,390 | (15.3 | ) | |||||||
| Core income per diluted share(2) | $ | 0.42 | $ | 0.50 | (16.0 | ) | % | ||||
| Book value per share | $ | 5.40 | $ | 4.27 | 26.5 | % | |||||
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
(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 Chief Executive Officer, B. Bradford Martz:
“We achieved our target combined ratio of
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 | ||||||
| March 31, | |||||||
| 2025 | 2024 | ||||||
| Income from continuing operations, net of tax | $ | 19,711 | $ | 23,709 | |||
| Return on equity based on GAAP income from continuing operations, net of tax(1) | 32.7 | % | 68.0 | % | |||
| Income (loss) from discontinued operations, net of tax | $ | 1,637 | $ | (110 | ) | ||
| Return on equity based on GAAP income (loss) from discontinued operations, net of tax(1) | 2.7 | % | (0.3 | )% | |||
| Consolidated net income | $ | 21,348 | $ | 23,599 | |||
| Return on equity based on GAAP net income(1) | 35.4 | % | 67.7 | % | |||
| Core income | $ | 20,651 | $ | 24,390 | |||
| Core return on equity(1)(2) | 34.2 | % | 70.0 | % | |||
(1) Return on equity for the three months ended March 31, 2025 and 2024 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 | ||||||||
| March 31, | |||||||||
| 2025 | 2024 | Change | |||||||
| Consolidated | |||||||||
| Loss ratio, net(1) | 16.7 | % | 19.9 | % | (3.2 | ) | pts | ||
| Expense ratio, net(2) | 48.3 | % | 33.3 | % | 15.0 | pts | |||
| Combined ratio (CR)(3) | 65.0 | % | 53.2 | % | 11.8 | pts | |||
| Effect of current year catastrophe losses on CR | — | % | 0.3 | % | (0.3 | ) | pts | ||
| Effect of prior year (favorable) unfavorable development on CR | (3.2 | )% | — | % | (3.2 | ) | pts | ||
| Underlying combined ratio(4) | 68.2 | % | 52.9 | % | 15.3 | 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.
| ($ in thousands) | Three Months Ended | |||||||||||
| March 31, | ||||||||||||
| 2025 | 2024 | Change | ||||||||||
| Loss and LAE | $ | 11,389 | $ | 12,474 | $ | (1,085 | ) | |||||
| % of Gross earned premiums | 7.0 | % | 7.8 | % | (0.8 | ) | pts | |||||
| % of Net earned premiums | 16.7 | % | 19.9 | % | (3.2 | ) | pts | |||||
| Less: | ||||||||||||
| Current year catastrophe losses | $ | — | $ | 211 | $ | (211 | ) | |||||
| Prior year reserve (favorable) unfavorable development | (2,194 | ) | 24 | (2,218 | ) | |||||||
| Underlying loss and LAE(1) | $ | 13,583 | $ | 12,239 | $ | 1,344 | ||||||
| % of Gross earned premiums | 8.4 | % | 7.6 | % | 0.8 | pts | ||||||
| % of Net earned premiums | 19.9 | % | 19.6 | % | 0.3 | 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.
| ($ in thousands) | Three Months Ended | ||||||||||
| March 31, | |||||||||||
| 2025 | 2024 | Change | |||||||||
| 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 Gross earned premiums | 20.3 | % | 13.0 | % | 7.3 | pts | |||||
| % of Net earned premiums | 48.3 | % | 33.3 | % | 15.0 | pts | |||||
Quarter to Date Financial Results
Net income attributable to the Company for the quarter ended March 31, 2025 was
The Company's total gross written premium increased by
| ($ in thousands) | Three Months Ended March 31, | ||||||||||||
| 2025 | 2024 | Change $ | Change % | ||||||||||
| Direct Written and Assumed Premium | |||||||||||||
| Direct premium | $ | 197,902 | $ | 184,601 | $ | 13,301 | 7.2 | % | |||||
| Assumed premium(1) | (50 | ) | — | (50 | ) | 100.0 | |||||||
| Total commercial property gross written premium | $ | 197,852 | $ | 184,601 | $ | 13,251 | 7.2 | % | |||||
(1) Assumed premium written for 2025 primarily included commercial property business assumed from unaffiliated insurers subsequently cancelled.
Loss and LAE decreased by
Policy acquisition costs increased by
General and administrative expenses decreased by
Reinsurance Costs as a Percentage of Gross Earned Premium
Reinsurance costs as a percentage of gross earned premium in the first quarter of 2025 and 2024 were as follows:
| 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 the Company's catastrophe excess of loss contracts increased year-over-year, driven by a decrease in quota share reinsurance coverage from
Investment Portfolio Highlights
The Company's cash, restricted cash and investment holdings increased from
Book Value Analysis
Book value per common share increased
| ($ in thousands, except for share and per share data) | March 31, 2025 | December 31, 2024 | |||||
| Book Value per Share | |||||||
| Numerator: | |||||||
| Common stockholders' equity | $ | 260,880 | $ | 235,660 | |||
| Denominator: | |||||||
| Total Shares Outstanding | 48,308,466 | 48,204,962 | |||||
| Book Value Per Common Share | $ | 5.40 | $ | 4.89 | |||
| Book Value per Share, Excluding the Impact of AOCI | |||||||
| Numerator: | |||||||
| Common stockholders' equity | $ | 260,880 | $ | 235,660 | |||
| Less: Accumulated other comprehensive loss | (12,836 | ) | (15,666 | ) | |||
| Stockholders' Equity, excluding AOCI | $ | 273,716 | $ | 251,326 | |||
| Denominator: | |||||||
| Total Shares Outstanding | 48,308,466 | 48,204,962 | |||||
| Underlying Book Value Per Common Share(1) | $ | 5.67 | $ | 5.21 | |||
(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: | May 8, 2025 - 5:00 P.M. ET |
| Participant Dial-In: | (United States): 877-445-9755 (International): 201-493-6744 |
| Webcast: | To listen to the live webcast, please go to https://investors.amcoastal.com and click on the conference call link at the top of the page or go to: https://event.webcasts.com/starthere.jsp?ei=1714251&&tp_key=72a100c363 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/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, and Apartments 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 a Financial Stability Rating of “A”, "Exceptional" from Demotech, and maintains an “A-” insurance financial strength rating with a Stable outlook by Kroll. ACIC maintains a ‘BB+’ issuer rating with a Stable outlook by Kroll.
| Contact Information: |
| Alexander Baty |
| Vice President, Finance & Investor Relations, American Coastal Insurance Corp. |
| investorrelations@amcoastal.com |
| (727) 425-8076 |
| Karin Daly |
| Investor Relations, Vice President, The Equity Group |
| kdaly@equityny.com |
| (212) 836-9623 |
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). 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 plus dilutive potential 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
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 | |||||||
| In thousands, except share and per share amounts | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2025 | 2024 | ||||||
| REVENUE: | |||||||
| Gross premiums written | $ | 197,852 | $ | 184,601 | |||
| Change in gross unearned premiums | (35,751 | ) | (24,331 | ) | |||
| Gross premiums earned | 162,101 | 160,270 | |||||
| Ceded premiums earned | (93,829 | ) | (97,639 | ) | |||
| Net premiums earned | 68,272 | 62,631 | |||||
| Net investment income | 4,511 | 4,017 | |||||
| Net realized investment gains | 1,382 | — | |||||
| Net unrealized losses on equity securities | (1,963 | ) | (50 | ) | |||
| Total revenues | $ | 72,202 | $ | 66,598 | |||
| EXPENSES: | |||||||
| Losses and loss adjustment expenses | 11,389 | 12,474 | |||||
| Policy acquisition costs | 23,466 | 9,595 | |||||
| General and administrative expenses | 9,506 | 11,252 | |||||
| Interest expense | 2,717 | 2,719 | |||||
| Total expenses | 47,078 | 36,040 | |||||
| Income before other income | 25,124 | 30,558 | |||||
| Other income | 1,070 | 810 | |||||
| Income before income taxes | 26,194 | 31,368 | |||||
| Provision for income taxes | 6,483 | 7,659 | |||||
| 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 | |||
| OTHER COMPREHENSIVE INCOME: | |||||||
| Change in net unrealized gains (losses) on investments | 4,212 | (198 | ) | ||||
| Reclassification adjustment for net realized investment gains | (1,382 | ) | — | ||||
| Total comprehensive income | $ | 24,178 | $ | 23,401 | |||
| Weighted average shares outstanding | |||||||
| Basic | 48,135,231 | 47,323,356 | |||||
| Diluted | 49,564,721 | 48,969,550 | |||||
| Earnings available to ACIC common stockholders per share | |||||||
| Basic | |||||||
| Continuing operations | $ | 0.41 | $ | 0.50 | |||
| Discontinued operations | 0.03 | — | |||||
| Total | $ | 0.44 | $ | 0.50 | |||
| Diluted | |||||||
| Continuing operations | $ | 0.40 | $ | 0.48 | |||
| Discontinued operations | 0.03 | — | |||||
| Total | $ | 0.43 | $ | 0.48 | |||
| Dividends declared per share | $ | — | $ | — | |||
| Consolidated Balance Sheets | |||||||
| In thousands, except share amounts | |||||||
| March 31, 2025 | December 31, 2024 | ||||||
| ASSETS | |||||||
| Investments, at fair value: | |||||||
| Fixed maturities, available-for-sale | $ | 282,960 | $ | 281,001 | |||
| Equity securities | 29,210 | 36,794 | |||||
| Other investments | 23,617 | 23,623 | |||||
| Total investments | $ | 335,787 | $ | 341,418 | |||
| Cash and cash equivalents | 167,155 | 137,036 | |||||
| Restricted cash | 65,885 | 62,357 | |||||
| Accrued investment income | 2,990 | 2,964 | |||||
| Property and equipment, net | 4,803 | 5,736 | |||||
| Premiums receivable, net | 61,749 | 46,564 | |||||
| Reinsurance recoverable on paid and unpaid losses | 202,391 | 263,419 | |||||
| Ceded unearned premiums | 121,138 | 160,893 | |||||
| Goodwill | 59,476 | 59,476 | |||||
| Deferred policy acquisition costs | 46,342 | 40,282 | |||||
| Intangible assets, net | 5,299 | 5,908 | |||||
| Other assets | 12,147 | 16,816 | |||||
| Assets held for sale | 74,484 | 73,243 | |||||
| Total Assets | $ | 1,159,646 | $ | 1,216,112 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Liabilities: | |||||||
| Unpaid losses and loss adjustment expenses | $ | 256,289 | $ | 322,087 | |||
| Unearned premiums | 321,105 | 285,354 | |||||
| Reinsurance payable on premiums | 53,761 | 83,130 | |||||
| Accounts payable and accrued expenses | 65,883 | 86,140 | |||||
| Operating lease liability | 3,302 | 3,323 | |||||
| Notes payable, net | 149,104 | 149,020 | |||||
| Other liabilities | 986 | 1,456 | |||||
| Liabilities held for sale | 48,336 | 49,942 | |||||
| Total Liabilities | $ | 898,766 | $ | 980,452 | |||
| Commitments and contingencies | |||||||
| Stockholders' Equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 5 | 5 | |||||
| Additional paid-in capital | 437,566 | 436,524 | |||||
| Treasury shares, at cost; 212,083 shares | (431 | ) | (431 | ) | |||
| Accumulated other comprehensive loss | (12,836 | ) | (15,666 | ) | |||
| Retained earnings (deficit) | (163,424 | ) | (184,772 | ) | |||
| Total Stockholders' Equity | $ | 260,880 | $ | 235,660 | |||
| Total Liabilities and Stockholders' Equity | $ | 1,159,646 | $ | 1,216,112 | |||
FAQ
What were ACIC's Q1 2025 earnings per share?
How much did American Coastal Insurance's gross premiums written grow in Q1 2025?
What was ACIC's combined ratio in the first quarter of 2025?
How did ACIC's book value per share change in Q1 2025?
What was American Coastal Insurance's return on equity in Q1 2025?
