American Coastal Q3 net income falls 40.3%
ACIC paired year-over-year declines in revenue and earnings with higher book value per share and growth in gross premiums written.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
American Coastal Insurance Corporation (ACIC) reported third-quarter 2026 net income of $19.4 million, down 40.3% from $32.5 million a year earlier, and diluted EPS of $0.40 versus $0.65. Total revenue fell 21.8% to $70.7 million, while net premiums earned declined 19.0% to $65.5 million as gross premiums earned fell 14.9% amid a 25.6% decrease in net pricing. Gross premiums written rose 3.2% to $74.1 million.
The combined ratio was 64.7%, versus 56.9% a year earlier; the underlying combined ratio, excluding current-year catastrophe losses and prior-year reserve development, was 68.4% versus 57.8%. Cash, cash equivalents, restricted cash and investment holdings totaled $707.9 million at September 30, 2026. Book value per share was $7.52, up 15.5% since December 31, 2025.
The company said its AmRisc agreement became perpetual and that participation in AmRisc’s nationwide E&S commercial property portfolio added $37.3 million of premium year to date. ACES Specialty received an Arizona certificate of authority; the company intends to begin writing business on or about December 1, 2026. The presentation expects the ACES and Skyway platform to produce $70 million to $80 million in written premium annually.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Minor pointThe presentation reports a Kroll rating upgrade in July.
Negative
- Moderate pointThird-quarter net income fell 40.3% year over year to $19.4 million.
- Moderate pointThird-quarter revenue declined 21.8% year over year to $70.7 million.
Filing Explained
At
8-K Event Classification
Key Figures
Key Terms
underlying combined ratio financial
core income financial
ceding ratio financial
modified duration financial
Earnings Snapshot
The ACES and Skyway platform is expected to produce $70 million to $80 million in written premium annually.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did ACIC earn in Q3 2026?
Why did ACIC's earnings decline in Q3 2026?
When does ACIC expect to begin writing E&S business?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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Registrant’s Telephone Number, Including Area Code: |
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 29, 2026, American Coastal Insurance Corporation (the Company, we, our) issued a press release relating to our earnings for the third quarter ended September 30, 2026 (the Earnings Release). We have attached a copy of the Earnings Release as Exhibit 99.1.
Item 7.01 Regulation FD Disclosure.
The executive officers of the Company intend to use the materials filed herewith, in whole or in part, in one or more meetings with investors and analysts, beginning on October 29, 2026. A copy of the Earnings presentation is attached hereto as Exhibit 99.2.
The information furnished under this Item 2.02 and 7.01, including Exhibit 99.1 and Exhibit 99.2 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference to such filing.
Item 9.01 Financial Statements and Exhibits.
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Exhibit No. |
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Description |
99.1 |
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Earnings release issued by the Company on October 29, 2026 |
99.2 |
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Earnings presentation issued by the Company on October 29, 2026 |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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AMERICAN COASTAL INSURANCE CORPORATION |
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Date: |
October 29, 2026 |
By: |
/s/ B. Bradford Martz |
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B. Bradford Martz, President & Chief Executive Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
AMERICAN COASTAL INSURANCE CORPORATION REPORTS FINANCIAL RESULTS
FOR ITS THIRD QUARTER ENDED SEPTEMBER 30, 2026
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, FL - October 29, 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 third quarter ended September 30, 2026.
($ in thousands, except for per share data) |
Three Months Ended September 30, |
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Nine Months Ended September 30, |
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||||||||||||||||||
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2026 |
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2025 |
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Change |
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2026 |
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2025 |
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Change |
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||||||
Gross premiums written |
$ |
74,111 |
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$ |
71,812 |
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3.2 |
% |
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$ |
439,810 |
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$ |
498,010 |
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(11.7 |
)% |
Gross premiums earned |
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138,474 |
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162,757 |
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(14.9 |
)% |
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418,338 |
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490,318 |
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(14.7 |
)% |
Net premiums earned |
|
65,452 |
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80,818 |
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(19.0 |
)% |
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200,761 |
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227,533 |
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(11.8 |
)% |
Total revenue |
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70,704 |
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90,395 |
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(21.8 |
)% |
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224,525 |
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249,064 |
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(9.9 |
)% |
Income from continuing operations, net of tax |
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19,397 |
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32,483 |
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(40.3 |
)% |
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60,547 |
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80,231 |
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(24.5 |
)% |
Income from discontinued operations, net of tax |
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— |
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— |
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NM |
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— |
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42 |
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|
NM |
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||
Consolidated net income |
$ |
19,397 |
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$ |
32,483 |
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(40.3 |
)% |
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$ |
60,547 |
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$ |
80,273 |
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(24.6 |
)% |
Net income available to ACIC stockholders per diluted share |
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Continuing Operations |
$ |
0.40 |
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$ |
0.65 |
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(38.5 |
)% |
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$ |
1.23 |
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$ |
1.61 |
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(23.6 |
)% |
Discontinued Operations |
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— |
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— |
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NM |
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— |
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— |
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NM |
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Total |
$ |
0.40 |
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$ |
0.65 |
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(38.5 |
)% |
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$ |
1.23 |
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$ |
1.61 |
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(23.6 |
)% |
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Reconciliation of net income to core income: |
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Plus: Non-cash amortization of intangible assets |
$ |
610 |
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$ |
609 |
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|
0.2 |
% |
|
$ |
1,830 |
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$ |
1,828 |
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|
0.1 |
% |
Less: Income from discontinued operations, net of tax |
|
— |
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|
— |
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NM |
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— |
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42 |
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NM |
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||
Less: Net realized gains (losses) on investment portfolio |
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(4 |
) |
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— |
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NM |
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3,266 |
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|
1,382 |
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NM |
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Less: Unrealized gains (losses) on equity securities |
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(625 |
) |
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3,161 |
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NM |
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4,136 |
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3,429 |
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20.6 |
% |
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Less: Net tax impact (1) |
|
260 |
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(536 |
) |
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NM |
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(1,170 |
) |
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(626 |
) |
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86.9 |
% |
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Core income(2) |
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20,376 |
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30,467 |
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(33.1 |
)% |
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56,145 |
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77,874 |
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(27.9 |
)% |
Core income per diluted share (2) |
$ |
0.42 |
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$ |
0.61 |
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(31.1 |
)% |
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$ |
1.14 |
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$ |
1.57 |
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(27.4 |
)% |
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Book value per share |
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$ |
7.52 |
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$ |
6.71 |
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12.1 |
% |
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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.
1
Exhibit 99.1
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, |
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Nine Months Ended September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Income from continuing operations, net of tax |
$ |
19,397 |
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$ |
32,483 |
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$ |
60,547 |
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$ |
80,231 |
|
Return on equity based on GAAP income from continuing operations, net of tax (1) |
|
22.9 |
% |
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|
47.5 |
% |
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|
23.9 |
% |
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|
39.1 |
% |
|
|
|
|
|
|
|
|
|
|
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|
||||
Income from discontinued operations, net of tax |
$ |
— |
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|
$ |
— |
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|
$ |
— |
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|
$ |
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.
2
Exhibit 99.1
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 |
|
Nine Months Ended |
||||||||||||||||||||||
|
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 |
3
Exhibit 99.1
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
4
Exhibit 99.1
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
5
Exhibit 99.1
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.com and 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.
6
Exhibit 99.1
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
7
Exhibit 99.1
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
8
Exhibit 99.1
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.
9
Exhibit 99.1
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 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
10
Exhibit 99.1
Consolidated Balance Sheets (Unaudited)
In thousands, except share amounts
|
|
September 30, |
|
|
December 31, |
|
||
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 |
|
11
amcoastal.com NASDAQ: ACIC Earnings Presentation Third Quarter 2026 Quarter Ended September 30, 2026
amcoastal.com NASDAQ: ACIC 02 Forward-Looking Statements & Non-GAAP Measures This presentation and the accompanying remarks contain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward looking statements include expectations regarding our diversification, growth opportunities, retention rates, liquidity, investment returns and ability to meet our investment objectives and to manage and mitigate market risk with respect to our investments. These statements are based on current expectations, estimates and projections about the industry and market in which we operate, and management's current beliefs and assumptions. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "endeavor," "project," "believe," "anticipate," "intend," "could," "would," "estimate" or "continue" or the negative variations thereof, or comparable terminology, are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainties include, without limitation: the regulatory, economic and weather conditions in the states in which we operate; the impact of new federal or state regulations that affect the property and casualty insurance market; the cost, variability and availability of reinsurance; assessments charged by various governmental agencies; pricing competition and other initiatives by competitors; our ability to attract and retain the services of senior management; the outcome of litigation pending against us, including the terms of any settlements; dependence on investment income and the composition of our investment portfolio and related market risks; our exposure to catastrophic events and severe weather conditions; downgrades in our financial strength ratings; risks and uncertainties relating to our acquisitions, including our ability to successfully integrate the acquired companies; and other risks and uncertainties described in the section entitled "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission (the "SEC"), including our Annual Report in Form 10-K for the year ended December 31, 2025 and 2024. We caution you not to place undue reliance on these forward-looking statements, which are valid only as of the date they were made. Except as may be required by applicable law, we undertake no obligation to update or revise any forward-looking statements to reflect new information, the occurrence of unanticipated events, or otherwise. This presentation contains certain non-GAAP financial measures. These measures should be considered supplementary to our results of operations and financial condition that are presented in accordance with GAAP and should not be viewed as a substitute for GAAP measures. See our earnings release, Form 10-K and Form 10-Q for further information regarding these non-GAAP financial measures.
The Investment Case ACIC is a disciplined, high-return specialty underwriter compounding book value through the cycle. Discipline & Returns 20%+ ROE and a 68.4% underlying combined ratio, earned during a soft market with declining pricing. Catastrophe Protection Structured so a severe hurricane year is an earnings event, not a capital event. Leading Franchise The #1 admitted commercial-residential insurer in Florida; profitable every year since 2007. ¹ Growth Optionality A credible path to broader specialty E&S: AmRisc now, ACES ahead. Preparing to take advantage of the next hard market. Alignment & Capital Roughly 50% insider-owned, compounding book value, and returning capital to shareholders. amcoastal.com NASDAQ: ACIC ¹ GAAP results for AmCoastal only 03
The Leading Florida Franchise How the business is built AmCoastal — the balance-sheet carrier, with the #1 admitted commercial-residential share in Florida. AmRisc — an exclusive distribution and underwriting partner, not a subsidiary. Skyway (SKU) — the managing general agency that produces and underwrites commercial property. ACES — the emerging specialty E&S carrier that expands underwriting reach over time. #1 FL commercial- residential - ~4,628 Direct Policies in force $552.5M Premium in force 2007 Profitable since inception The #1 admitted commercial-residential insurer in Florida, profitable every year since 2007. A perpetual and exclusive agreement with AmRisc, the market leader in catastrophe exposed underwriting. ¹ amcoastal.com NASDAQ: ACIC 04 ¹ In the third quarter the Company executed an amendment to the agreement with AmRisc, making the agreement perpetual in nature.
Third Quarter 2026 Financial Scorecard amcoastal.com NASDAQ: ACIC $0.42 3Q-25: $0.61 Core EPS $7.52 +15.5% vs YE 2025 Book Value / Share 24.1% 3Q-25: 44.5% Core Return on Equity $6.23 +19.3% vs YE 2025 Tangible Book Value / Share 64.7% 3Q-25: 56.9% Combined Ratio 68.4% 3Q-25: 57.8% Underlying Combined Ratio Another profitable quarter: margin and returns continue to be strong despite the soft market cycle. Compared to the prior-year quarter unless noted. Reconciliations in Detailed Financials. 05
Managing the Cycle amcoastal.com NASDAQ: ACIC The market has been softening Our discipline is working Gross written premium up 3.2% year-over-year, on a ~26% decline in net pricing, with E&S contributing $8.6M offsetting the softening market. Ceded premium earned down 10.9% year-over-year, as we begin earning off our new reinsurance program at reduced pricing. We are declining underpriced accounts rather than defending position at the expense of returns. Underlying combined ratio held at 68.4%, an uptick from 57.8% in the prior year, but still best in class and consistent with our prior periods (68.3% and 68.7% in Q1 and Q2 2026, respectively). Return on equity of 22.9%. Book value per share up 15.5% since December 31, 2025, and 12.1% year-over-year and compounding. The Company received ACES Certificate of Authority from Arizona in early October and intends to begin writing business on or about December 1, 2026. We are prioritizing underwriting margin over top-line growth, and the returns show it is working. Pricing remains above its long-run mean; the technical pricing chart is in Detailed Financials. 06
Third Quarter 2026 Results amcoastal.com NASDAQ: ACIC Core income of $20.4M and a 68.4% underlying combined ratio, in line with our targets. Core income declined 33.1%, reflecting lower earned premium as we maintained pricing discipline. $3.1M of current year catastrophe losses offset by $5.5M of favorable prior-year reserve development. Full P&L in Detailed Financials. Earnings Combined Ratio Reconciliation Net premiums earned $65.5M $80.8M Total revenue $70.7M $90.4M Net income $19.4M $32.5M Diluted EPS $0.40 $0.65 Core income $20.4M $30.5M Core EPS (diluted) $0.42 $0.61 Net loss & LAE ratio 12.2% 11.4% Net expense ratio 52.5% 45.5% Combined ratio 64.7% 56.9% Less: current year CAT 4.7% 0.5% Less: unfavorable (favorable) PY development (8.4)% (1.4%) Underlying combined ratio 68.4% 57.8% 3Q-26 3Q-25 3Q-26 3Q-25 07
Compounding Book Value & Returning Capital Alignment & Capital Return ~50% owned by directors and officers. Special dividends of $0.50 (2024) and $0.75 (2025). Debt-to-total-capital improved to 29.6%. Ratings: Upgraded by Kroll in July. Kroll A (Stable), Demotech A (Exceptional), BBB (Stable) issuer. Book value compounding ~39% annually over three years, aligned ownership and capital returned. Book Value per Share $2.78 (Q3-23) → $7.52 (Q3-26) | 3-yr CAGR 39.3% amcoastal.com NASDAQ: ACIC 08
Strong Catastrophe Protection amcoastal.com NASDAQ: ACIC A severe hurricane year is expected to be an earnings event, not a capital event. June 1, 2026 Renewal Outcome ~$1.68B of total per-occurrence limit placed. Reinsurer panel broadened from 25 to 31, with improved per-occurrence and aggregate protection. $400M of cascading coverage down to $50M in third and subsequent events. Multi-Year Coverage means $764M of limit placed ahead of the 2027 renewal excluding FHCF limit. All-perils covered above $23.5M retention for a first event. Managing Net Premiums Quota share cession stepped down from 20% to 15% effective June 1, 2025. Reinsurance ceding ratio remained relatively flat at 52.8% inclusive of expanded coverage purchased. Net premium earned decreased 19.0% to $65.5M, driven by gross premium earned decreasing 14.9% offset by ceded premium earned decreasing 10.9%. 09
A Credible Path to Specialty E&S Growth LIVE NOW 2027 Lever 1 — AmRisc E&S Participation Quota share supporting AmRisc's nationwide E&S commercial property book. Lever 2 — ACES & Skyway Platform ACES specialty carrier has received its Certificate of Authority from Arizona. Commenced in March, $37.3M written premium year-to-date. Expected to produce $70-80M in written premium annually. Expected to begin contributing new E&S business on or about December 1, 2026. Broadening beyond Florida, without chasing underpriced business. amcoastal.com NASDAQ: ACIC 10
High-Quality Investment Portfolio A short-duration, high-quality portfolio adding steady, low-risk investment income. amcoastal.com NASDAQ: ACIC Total cash & investments of $707.9M as of September 30, 2026. 2.3 yrs Portfolio duration 5.09% Yield-to-Maturity 80.5% Rated A or higher A Composite rating Asset composition ($M) Cash Fixed income Equities Other 11
In Summary Q3 confirms the case: disciplined, high-return, well-protected, aligned and building growth. Discipline & Returns 68.4% underlying combined ratio and 24.1% core return on equity Catastrophe Protection 6/1/2026 renewal improved terms and lowered cost; an earnings event, not a capital event. Leading Franchise The #1 admitted commercial-residential insurer in Florida; profitable every year since 2007. Growth Optionality E&S participation live now; ACES contributing in 2027. Alignment & Capital Book value +15.5% year-over-year, ~50% insider-owned, special dividends paid. amcoastal.com NASDAQ: ACIC 12
• Summary of key results • Operating overview • Balance sheet • Liquidity & book value trends • Investment portfolio • Pricing environment Detailed Financials 13
3Q-26 & YTD-26 Summary of Key Results The softening market has put pressure on margins, but we remain in line with our target. amcoastal.com NASDAQ: ACIC 14
3Q-26 Operating Overview The softening market continues to impact the book, but results remain strong. amcoastal.com NASDAQ: ACIC 15 Revenue and earnings are under pressure as the market continues to soften. However, the Company will begin augmenting its existing book with its E&S initiatives on or about December 1, 2026, to provide an avenue for growth.
Balance Sheet Highlights amcoastal.com NASDAQ: ACIC Book value continues to grow, and liquidity remains strong. 16
Historical Pricing Environment amcoastal.com NASDAQ: ACIC We continue to see pricing decrease but remain above historical mean and moving commensurate with reinsurance pricing. 17 Normalized ROE Generational Hard Market