American Coastal Insurance (ACIC) Q4 2024 earnings summary

Executive summary

• Achieved Q4 2024 net income of $4.9M ($0.10/share), with full-year net income of $75.7M, both down year-over-year due to Hurricane Milton, but maintained optimism for future performance.

• Launched a new Florida apartment insurance program, writing 19 new risks totaling $2.3M in premium, with strong broker interest and a focus on selective underwriting and risk diversification.

• Grew policy count and gross premiums written, driven by new business, strong renewals, and policy assumptions from Citizens, with Florida commercial residential remaining the core segment.

• Profitability was impacted by Hurricane Milton, resulting in a Q4 combined ratio of 91.9% and full-year combined ratio of 67.5%.

• Book value per share increased 35.5% to $4.89 at year-end 2024.

Financial highlights

• Q4 net income was $4.9M; core income was $6M, both down over 65% year-over-year due to $20.53M retention from Hurricane Milton.

• Gross premium earned in Q4 grew to $162.7M; net premiums earned increased 49.7% year-over-year to $73.5M.

• Full-year 2024 pre-tax income reached $102M, up nearly 6% year-over-year, despite $23M more in net catastrophe losses.

• Cash and investments increased 73.4% to $540.8M; stockholders' equity rose to $235.7M, with a $24M dividend paid in January 2025.

• Book value per share at year-end was $4.89, up 35.5% year-over-year.

Outlook and guidance

• 2025 net income guidance is $70M–$90M, with expected return on beginning equity over 30%.

• 2025 net premiums earned expected at $290M–$320M, up from $274M in FY2024.

• Targeting a combined ratio of 65% before catastrophe losses, with margins intact despite 5–10% lower pricing on renewals.

• Apartment program goal for 2025 is $20M in premium, with expectations for a larger shift in business mix in 2026–2027.