American Coastal Insurance Corporation Reports Financial Results for Its Fourth Quarter and Year Ended December 31, 2025
Rhea-AI Summary
American Coastal Insurance Corporation (Nasdaq: ACIC) reported fourth-quarter net income of $26.6 million and full-year net income of $106.8 million for 2025, with diluted EPS of $2.15. Core income was $103.7 million and book value per share rose to $6.51.
Revenue rose 13.1% year-over-year to $335.4 million, combined ratio and underlying combined ratio both improved versus 2024, and management said liquidity strengthened while returning capital via special dividends.
Positive
- Net income +41.1% year-over-year to $106.8M
- Core income +34.8% year-over-year to $103.7M
- Return on equity of 36.2% for 2025
- Book value per share up 33.1% to $6.51
- Revenue +13.1% year-over-year to $335.4M
- Underlying combined ratio improved by 7.0 points (Q4)
Negative
- Gross written premiums declined 5.4% year-over-year to $612.5M
- Q4 gross written premiums fell 18.6% to $114.5M
- Policy acquisition costs increased $26.9M year-over-year
- Expense ratio rose by 2.9 points to 45.1% for the year
- Ceded premiums earned decreased $23.2M (6.4%) year-over-year
Key Figures
Market Reality Check
Peers on Argus
ACIC was up 1.16% pre-news with modestly higher volume. Peers were mixed: UVE (+0.97%), DGICB (+1.77%), UFCS (+0.60%), DGICA (+8.96%) and GBLI (-0.67%). Momentum scanner only flagged DGICA moving down, suggesting ACIC’s action relates more to company-specific earnings than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 05 | Q3 2025 earnings | Positive | +2.8% | Q3 2025 net income and revenue grew with continued profitability and balance sheet gains. |
| Aug 06 | Q2 2025 earnings | Positive | +5.2% | Q2 2025 delivered higher net income, strong revenue growth, and better combined ratio. |
| May 08 | Q1 2025 earnings | Positive | -6.4% | Q1 2025 showed premium growth and solid combined ratio despite lower net income. |
| Feb 27 | FY 2024 earnings | Positive | -4.3% | Q4 and FY 2024 highlighted profitable year with growth despite hurricane-driven loss spike. |
| Nov 06 | Q3 2024 earnings | Positive | -5.0% | Q3 2024 reported sharply higher net income and revenue with strong combined ratio. |
Across the last five earnings releases, ACIC often reported strong profitability and book value growth, but share reactions skewed negative or mixed, with three of five earnings events selling off despite positive fundamentals.
Over the past year, ACIC’s earnings reports have highlighted sustained profitability, strong combined ratios and rapid book value per share growth. Q1–Q3 2025 showed rising net income and revenue, alongside higher policy acquisition costs as quota share reinsurance was reduced. The prior FY 2024 report already showed solid full‑year earnings and growth despite hurricane impacts. Today’s Q4 and full‑year 2025 results continue that trend with higher net income, strong core income, and a lower combined ratio, extending the multi‑quarter profitability story.
Historical Comparison
In the last five earnings releases, ACIC’s average 24-hour move was -1.53%, despite generally strong profitability and book value growth, framing expectations for market response to these Q4 and full-year 2025 results.
Earnings have progressed from strong FY 2024 results through Q1–Q3 2025 with rising net income, revenue growth, and robust combined ratios. The new Q4 and full‑year 2025 report extends this trajectory with higher net income, strong core income, and a lower full‑year combined ratio.
Market Pulse Summary
This announcement highlights another profitable year for ACIC, with Q4 2025 net income of $26.6M and FY 2025 net income of $106.8M. A full‑year combined ratio of 60.1%, core income of $103.7M, and book value per share of $6.51 underscore strong underwriting and capital growth. Investors may watch trends in gross written premiums, rising policy acquisition costs tied to reinsurance changes, and catastrophe loss experience as key forward indicators.
Key Terms
loss ratio financial
combined ratio financial
underlying combined ratio financial
catastrophe losses financial
restricted stock units financial
non-GAAP financial
return on equity financial
AI-generated analysis. Not financial advice.
Company to Host Quarterly Conference Call at 5:00 P.M. ET on February 19, 2026
The information in this press release should be read in conjunction with an earnings presentation that is available on the Company's website at investors.amcoastal.com/events-and-presentations.
ST. PETERSBURG, Fla., Feb. 19, 2026 (GLOBE NEWSWIRE) -- February 19, 2026: American Coastal Insurance Corporation (Nasdaq: ACIC) ("ACIC" or the "Company"), a property and casualty insurance holding company, today reported its financial results for the fourth quarter and year ended December 31, 2025.
| ($ in thousands, except for per share data) | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||
| Gross premiums written | $ | 114,512 | $ | 140,739 | (18.6 | )% | $ | 612,522 | $ | 647,805 | (5.4 | )% | |||||||||
| Gross premiums earned | 157,942 | 162,710 | (2.9 | )% | 648,260 | 638,608 | 1.5 | % | |||||||||||||
| Net premiums earned | 79,319 | 73,492 | 7.9 | % | 306,852 | 273,990 | 12.0 | % | |||||||||||||
| Total revenue | 86,375 | 79,267 | 9.0 | % | 335,439 | 296,657 | 13.1 | % | |||||||||||||
| Income from continuing operations, net of tax | 26,564 | 5,868 | NM | 106,795 | 76,319 | 39.9 | % | ||||||||||||||
| Income (loss) from discontinued operations, net of tax | — | (922 | ) | NM | 42 | (601 | ) | NM | |||||||||||||
| Consolidated net income | $ | 26,564 | $ | 4,946 | NM | $ | 106,837 | $ | 75,718 | 41.1 | % | ||||||||||
| Net income available to ACIC stockholders per diluted share | |||||||||||||||||||||
| Continuing Operations | $ | 0.53 | $ | 0.12 | NM | $ | 2.15 | $ | 1.55 | 38.7 | % | ||||||||||
| Discontinued Operations | — | (0.02 | ) | NM | — | (0.01 | ) | NM | |||||||||||||
| Total | $ | 0.53 | $ | 0.10 | NM | $ | 2.15 | $ | 1.54 | 39.6 | % | ||||||||||
| Reconciliation of net income to core income: | |||||||||||||||||||||
| Plus: Non-cash amortization of intangible assets and goodwill impairment | $ | 610 | $ | 608 | 0.3 | % | $ | 2,438 | $ | 2,639 | (7.6 | )% | |||||||||
| Less: Income (loss) from discontinued operations, net of tax | — | (922 | ) | NM | 42 | (601 | ) | NM | |||||||||||||
| Less: Net realized gains (losses) on investment portfolio | — | — | NM | 1,382 | (124 | ) | NM | ||||||||||||||
| Less: Unrealized gains on equity securities | 1,570 | 454 | NM | 4,999 | 1,996 | NM | |||||||||||||||
| Less: Net tax impact (1) | (202 | ) | 32 | NM | (828 | ) | 161 | NM | |||||||||||||
| Core income(2) | 25,806 | 5,990 | NM | 103,680 | 76,925 | 34.8 | % | ||||||||||||||
| Core income per diluted share (2) | $ | 0.52 | $ | 0.12 | NM | $ | 2.08 | $ | 1.56 | 33.3 | % | ||||||||||
| Book value per share | $ | 6.51 | $ | 4.89 | 33.1 | % | |||||||||||||||
| 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 |
| (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:
“We're proud to have finished the year with earnings 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 December 31, | Year Ended December 31, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Income from continuing operations, net of tax | $ | 26,564 | $ | 5,868 | $ | 106,795 | $ | 76,319 | |||||||
| Return on equity based on GAAP income from continuing operations, net of tax(1) | 36.0 | % | 10.4 | % | 36.2 | % | 33.7 | % | |||||||
| Income (loss) from discontinued operations, net of tax | $ | — | $ | (922 | ) | $ | 42 | $ | (601 | ) | |||||
| Return on equity based on GAAP income (loss) from discontinued operations, net of tax(1) | — | % | (1.6 | )% | — | % | (0.3 | )% | |||||||
| Consolidated net income | $ | 26,564 | $ | 4,946 | $ | 106,837 | $ | 75,718 | |||||||
| Return on equity based on GAAP net income(1) | 36.0 | % | 8.7 | % | 36.2 | % | 33.5 | % | |||||||
| Core income | $ | 25,806 | $ | 5,990 | $ | 103,680 | $ | 76,925 | |||||||
| Core return on equity(1)(2) | 35.0 | % | 10.6 | % | 35.2 | % | 34.0 | % | |||||||
| (1) | Return on equity for the three months and years ended December 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 December 31, | Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||
| Loss ratio, net(1) | 12.5 | % | 40.5 | % | (28.0 | ) | pts | 15.0 | % | 25.3 | % | (10.3 | ) | pts | |||||
| Expense ratio, net(2) | 46.1 | % | 51.4 | % | (5.3 | ) | pts | 45.1 | % | 42.2 | % | 2.9 | pts | ||||||
| Combined ratio (CR)(3) | 58.6 | % | 91.9 | % | (33.3 | ) | pts | 60.1 | % | 67.5 | % | (7.4 | ) | pts | |||||
| Effect of current year catastrophe losses on CR | 1.3 | % | 27.8 | % | (26.5 | ) | pts | 0.5 | % | 9.3 | % | (8.8 | ) | pts | |||||
| Effect of prior year favorable development on CR | (1.6 | )% | (1.8 | )% | 0.2 | pts | (1.9 | )% | (1.4 | )% | (0.5 | ) | pts | ||||||
| Underlying combined ratio(4) | 58.9 | % | 65.9 | % | (7.0 | ) | pts | 61.5 | % | 59.6 | % | 1.9 | 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 December 31, | Year Ended December 31, | ||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||
| Net loss and LAE | $ | 9,900 | $ | 29,794 | $ | (19,894 | ) | $ | 46,040 | $ | 69,319 | $ | (23,279 | ) | |||||||||||
| % of Gross earned premiums | 6.3 | % | 18.3 | % | (12.0 | ) | pts | 7.1 | % | 10.9 | % | (3.8 | ) | pts | |||||||||||
| % of Net earned premiums | 12.5 | % | 40.5 | % | (28.0 | ) | pts | 15.0 | % | 25.3 | % | (10.3 | ) | pts | |||||||||||
| Less: | |||||||||||||||||||||||||
| Current year catastrophe losses | $ | 1,060 | $ | 20,405 | $ | (19,345 | ) | $ | 1,485 | $ | 25,561 | $ | (24,076 | ) | |||||||||||
| Prior year reserve favorable development | (1,234 | ) | (1,325 | ) | 91 | (5,827 | ) | (3,704 | ) | (2,123 | ) | ||||||||||||||
| Underlying loss and LAE(1) | $ | 10,074 | $ | 10,714 | $ | (640 | ) | $ | 50,382 | $ | 47,462 | $ | 2,920 | ||||||||||||
| % of Gross earned premiums | 6.4 | % | 6.6 | % | (0.2 | ) | pts | 7.8 | % | 7.4 | % | 0.4 | pts | ||||||||||||
| % of Net earned premiums | 12.8 | % | 14.5 | % | (1.8 | ) | pts | 16.4 | % | 17.3 | % | (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 December 31, | Year Ended December 31, | ||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||
| Policy acquisition costs | $ | 24,682 | $ | 26,514 | $ | (1,832 | ) | $ | 97,844 | $ | 70,990 | $ | 26,854 | ||||||||||||
| General and administrative | 11,858 | 11,277 | 581 | 40,463 | 44,756 | (4,293 | ) | ||||||||||||||||||
| Total operating expenses | $ | 36,540 | $ | 37,791 | $ | (1,251 | ) | $ | 138,307 | $ | 115,746 | $ | 22,561 | ||||||||||||
| % of Gross earned premiums | 23.1 | % | 23.2 | % | (0.1 | ) | pts | 21.3 | % | 18.1 | % | 3.2 | pts | ||||||||||||
| % of Net earned premiums | 46.1 | % | 51.4 | % | (5.3 | ) | pts | 45.1 | % | 42.2 | % | 2.9 | pts | ||||||||||||
Quarter to Date Financial Results
Net income for the fourth quarter ended December 31, 2025 was
The Company's total gross written premium decreased by
| ($ in thousands) | Three Months Ended December 31, | ||||||||||||||
| 2025 | 2024 | Change $ | Change % | ||||||||||||
| Gross premiums written | $ | 114,512 | $ | 140,739 | $ | (26,227 | ) | (18.6 | )% | ||||||
| Change in gross unearned premiums | 43,430 | 21,971 | 21,459 | 97.7 | % | ||||||||||
| Gross premiums earned | 157,942 | 162,710 | (4,768 | ) | (2.9 | )% | |||||||||
| Ceded premiums written | (3,953 | ) | (50,684 | ) | 46,731 | (92.2 | )% | ||||||||
| Change in ceded unearned premiums | (74,670 | ) | (38,534 | ) | (36,136 | ) | 93.8 | % | |||||||
| Ceded premiums earned | (78,623 | ) | (89,218 | ) | 10,595 | (11.9 | )% | ||||||||
| Net premiums earned | $ | 79,319 | $ | 73,492 | $ | 5,827 | 7.9 | % | |||||||
Losses and LAE decreased by
Policy acquisition costs decreased by
General and administrative expenses remained relatively flat, increasing by
Annual Financial Results
Net income for the year ended December 31, 2025 was
The Company's total gross written premium decreased by
| ($ in thousands) | Year Ended December 31, | |||||||||||||
| 2025 | 2024 | Change $ | Change % | |||||||||||
| Gross premiums written | $ | 612,522 | $ | 647,805 | $ | (35,283 | ) | (5.4 | )% | |||||
| Change in gross unearned premiums | 35,738 | (9,197 | ) | 44,935 | (488.6 | )% | ||||||||
| Gross premiums earned | 648,260 | 638,608 | 9,652 | 1.5 | % | |||||||||
| Ceded premiums written | (290,212 | ) | (370,210 | ) | 79,998 | (21.6 | )% | |||||||
| Change in ceded unearned premiums | (51,196 | ) | 5,592 | (56,788 | ) | (1,015.5 | )% | |||||||
| Ceded premiums earned | (341,408 | ) | (364,618 | ) | 23,210 | (6.4 | )% | |||||||
| Net premiums earned | $ | 306,852 | $ | 273,990 | $ | 32,862 | 12.0 | % | ||||||
Losses 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 fourth quarter of 2025 and 2024 were as follows:
| 2025 | 2024 | ||||
| Non-at-Risk | (0.4 | )% | (0.3 | )% | |
| Quota Share | (12.7 | )% | (16.2 | )% | |
| All Other | (36.7 | )% | (38.3 | )% | |
| Total Ceding Ratio | (49.8 | )% | (54.8 | )% | |
Ceded premiums earned related to the Company's quota share reinsurance coverage decreased as the result of a decrease in the cession rate 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) | |||||||
| December 31, 2025 | December 31, 2024 | ||||||
| Book Value per Share | |||||||
| Numerator: | |||||||
| Common stockholders' equity | $ | 317,565 | $ | 235,660 | |||
| Denominator: | |||||||
| Total Shares Outstanding | 48,764,802 | 48,204,962 | |||||
| Book Value Per Common Share | $ | 6.51 | $ | 4.89 | |||
| Book Value per Share, Excluding the Impact of AOCI | |||||||
| Numerator: | |||||||
| Common stockholders' equity | $ | 317,565 | $ | 235,660 | |||
| Less: Accumulated other comprehensive loss | (7,242 | ) | (15,666 | ) | |||
| Stockholders' Equity, excluding AOCI | $ | 324,807 | $ | 251,326 | |||
| Denominator: | |||||||
| Total Shares Outstanding | 48,764,802 | 48,204,962 | |||||
| Underlying Book Value Per Common Share(1) | $ | 6.66 | $ | 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: | February 19, 2026 - 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 bottom of the page or go to: https://event.webcasts.com/starthere.jsp?ei=1751270&tp_key=849b2696a5 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, 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 Positive outlook by Kroll. ACIC maintains a ‘BBB-’ issuer rating with a Positive outlook by Kroll.
Contact Information:
Alexander Baty
Vice President, Finance & Investor Relations, American Coastal Insurance Corp.
investorrelations@amcoastal.com
(727) 425-8076
Jeremy Hellman
Investor Relations, Vice President, The Equity Group
jhellman@equityny.com
(212) 836-9626
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 (Unaudited) In thousands, except share and per share amounts | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| REVENUE: | |||||||||||||||
| Gross premiums written | $ | 114,512 | $ | 140,739 | $ | 612,522 | $ | 647,805 | |||||||
| Change in gross unearned premiums | 43,430 | 21,971 | 35,738 | (9,197 | ) | ||||||||||
| Gross premiums earned | 157,942 | 162,710 | 648,260 | 638,608 | |||||||||||
| Ceded premiums earned | (78,623 | ) | (89,218 | ) | (341,408 | ) | (364,618 | ) | |||||||
| Net premiums earned | 79,319 | 73,492 | 306,852 | 273,990 | |||||||||||
| Net investment income | 5,486 | 5,321 | 22,206 | 20,795 | |||||||||||
| Net realized investment gains (losses) | — | — | 1,382 | (124 | ) | ||||||||||
| Net unrealized gains on equity securities | 1,570 | 454 | 4,999 | 1,996 | |||||||||||
| Total revenue | 86,375 | 79,267 | 335,439 | 296,657 | |||||||||||
| EXPENSES: | |||||||||||||||
| Losses and loss adjustment expenses | 9,900 | 29,794 | 46,040 | 69,319 | |||||||||||
| Policy acquisition costs | 24,682 | 26,514 | 97,844 | 70,990 | |||||||||||
| General and administrative expenses | 11,858 | 11,277 | 40,463 | 44,756 | |||||||||||
| Interest expense | 2,660 | 2,784 | 10,815 | 11,996 | |||||||||||
| Total expenses | 49,100 | 70,369 | 195,162 | 197,061 | |||||||||||
| Income before other income | 37,275 | 8,898 | 140,277 | 99,596 | |||||||||||
| Other income (loss) | (657 | ) | (11 | ) | 2,457 | 2,063 | |||||||||
| Income before income taxes | 36,618 | 8,887 | 142,734 | 101,659 | |||||||||||
| Provision for income taxes | 10,054 | 3,019 | 35,939 | 25,340 | |||||||||||
| Income from continuing operations, net of tax | $ | 26,564 | $ | 5,868 | $ | 106,795 | $ | 76,319 | |||||||
| Income (loss) from discontinued operations, net of tax | — | (922 | ) | 42 | (601 | ) | |||||||||
| Net income | $ | 26,564 | $ | 4,946 | $ | 106,837 | $ | 75,718 | |||||||
| OTHER COMPREHENSIVE INCOME: | |||||||||||||||
| Change in net unrealized gains (losses) on investments | 1,161 | (4,049 | ) | 9,806 | 3,355 | ||||||||||
| Reclassification adjustment for net realized investment losses (gains) | — | — | (1,382 | ) | 124 | ||||||||||
| Total comprehensive income | $ | 27,725 | $ | 897 | $ | 115,261 | $ | 79,197 | |||||||
| Weighted average shares outstanding | |||||||||||||||
| Basic | 48,665,133 | 48,095,488 | 48,476,824 | 47,831,412 | |||||||||||
| Diluted | 49,931,377 | 49,589,458 | 49,782,993 | 49,362,985 | |||||||||||
| Earnings available to ACIC common stockholders per share | |||||||||||||||
| Basic | |||||||||||||||
| Continuing operations | $ | 0.55 | $ | 0.12 | $ | 2.20 | $ | 1.60 | |||||||
| Discontinued operations | — | (0.02 | ) | — | (0.01 | ) | |||||||||
| Total | $ | 0.55 | $ | 0.10 | $ | 2.20 | $ | 1.59 | |||||||
| Diluted | |||||||||||||||
| Continuing operations | $ | 0.53 | $ | 0.12 | $ | 2.15 | $ | 1.55 | |||||||
| Discontinued operations | — | (0.02 | ) | — | (0.01 | ) | |||||||||
| Total | $ | 0.53 | $ | 0.10 | $ | 2.15 | $ | 1.54 | |||||||
| Dividends declared per share | $ | 0.75 | $ | 0.50 | $ | 0.75 | $ | 0.50 | |||||||
| Consolidated Balance Sheets (Unaudited) In thousands, except share amounts | |||||||
| December 31, 2025 | December 31, 2024 | ||||||
| ASSETS | |||||||
| Investments, at fair value: | |||||||
| Fixed maturities, available-for-sale | $ | 253,152 | $ | 281,001 | |||
| Equity securities | 61,685 | 36,794 | |||||
| Other investments | 40,053 | 23,623 | |||||
| Total investments | $ | 354,890 | $ | 341,418 | |||
| Cash and cash equivalents | 198,762 | 137,036 | |||||
| Restricted cash | 94,092 | 62,357 | |||||
| Total cash, cash equivalents and restricted cash | $ | 292,854 | $ | 199,393 | |||
| Accrued investment income | 3,156 | 2,964 | |||||
| Property and equipment, net | 723 | 5,736 | |||||
| Premiums receivable, net | 70,447 | 46,564 | |||||
| Reinsurance recoverable on paid and unpaid losses, net | 128,205 | 263,419 | |||||
| Ceded unearned premiums | 109,697 | 160,893 | |||||
| Goodwill | 59,476 | 59,476 | |||||
| Deferred policy acquisition costs, net | 37,815 | 40,282 | |||||
| Intangible assets, net | 3,471 | 5,908 | |||||
| Other assets | 11,998 | 16,816 | |||||
| Assets held for sale | — | 73,243 | |||||
| Total Assets | $ | 1,072,732 | $ | 1,216,112 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Liabilities: | |||||||
| Unpaid losses and loss adjustment expenses | $ | 165,701 | $ | 322,087 | |||
| Unearned premiums | 249,616 | 285,354 | |||||
| Reinsurance payable on premiums | 66,841 | 83,130 | |||||
| Accounts payable and accrued expenses | 112,781 | 86,140 | |||||
| Operating lease liability | 3,135 | 3,323 | |||||
| Notes payable, net | 149,353 | 149,020 | |||||
| Other liabilities | 7,740 | 1,456 | |||||
| Liabilities held for sale | — | 49,942 | |||||
| Total Liabilities | $ | 755,167 | $ | 980,452 | |||
| Stockholders' Equity: | |||||||
| Preferred stock, | $ | — | $ | — | |||
| Common stock, | 5 | 5 | |||||
| Additional paid-in capital | 439,742 | 436,524 | |||||
| Treasury shares, at cost: 212,083 shares | (431 | ) | (431 | ) | |||
| Accumulated other comprehensive loss | (7,242 | ) | (15,666 | ) | |||
| Retained earnings (deficit) | (114,509 | ) | (184,772 | ) | |||
| Total Stockholders' Equity | $ | 317,565 | $ | 235,660 | |||
| Total Liabilities and Stockholders' Equity | $ | 1,072,732 | $ | 1,216,112 | |||
FAQ
What did ACIC report for net income and EPS for full-year 2025 (ACIC)?
How did American Coastal (ACIC) perform on return on equity for 2025?
What were ACIC's combined ratio and underlying combined ratio trends in 2025?
Why did ACIC's quarter-over-quarter earnings improve in Q4 2025 (ACIC)?
What changes to reinsurance did American Coastal (ACIC) report during 2025?
