American Coastal Insurance (ACIC) investor relations material

Executive summary

• Net income for Q1 2026 was $19.3 million ($0.39 per share), down 9.8% year-over-year, primarily due to lower net premiums earned and discontinued operations in 2025, while maintaining disciplined underwriting in a softening commercial property insurance market.

• Combined ratio was 66.0%, up 1 point year-over-year, with underlying combined ratio stable at 68.3%, reflecting continued market leadership and margin preservation.

• Book value per share rose 5.4% to $6.86, with stockholders’ equity up 4.5% to $331.7 million since year-end 2025.

• Policy count and exposure base increased year-over-year, with account retention within target range despite increased competition and selective exits from unprofitable accounts.

• Gross premiums written declined 24.5% year-over-year to $149.4 million, reflecting increased competition and a 24% decrease in net pricing.

Financial highlights

• Net premiums earned declined 3.9% year-over-year to $65.6 million, with total revenue nearly flat as lower reinsurance costs offset premium decreases.

• Losses and LAE dropped 10.5% to $10.2 million, with the loss ratio improving by 1.1 points to 15.6%.

• Cash and investments totaled $599.4 million at quarter-end, down 7.5% from year-end, mainly due to a $36.6 million special dividend payment.

• Revenues and expenses remained consistent year-over-year; other income decreased by $900,000 due to non-recurring items in 2025.

• Policy acquisition costs decreased 4.7% to $22.4 million, while general and administrative expenses increased 12.6% to $10.7 million.

Outlook and guidance

• Full-year guidance remains unchanged; Q2 is expected to be the strongest premium production quarter and will be key to meeting annual targets.

• E&S premium growth expected to add about $70 million in written premium for 2026, with about half earning in the current year, mainly from AmRisc portfolio participation.

• The Florida commercial property market continued to soften, with average premiums down 16.6% year-over-year in March.

• Management remains focused on disciplined capital deployment, selective partnerships, and leveraging AI to strengthen competitive positioning.

• ACES Specialty Insurance Company approval is pending, but $6.2 million in E&S premiums were assumed in March.