American Coastal Insurance (ACIC) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2025 results, with net income of $106.8 million and Q4 net income of $26.6 million, both exceeding guidance.

• Core income for Q4 2025 was $25.8 million, up 330% year-over-year, driven by lower catastrophe losses and improved underwriting.

• Revenue grew 13.1% year-over-year, supported by solid underwriting and improved combined ratios.

• Book value per share increased 33.2% to $6.51, including a $0.75 per share special dividend in Q4.

• Strategic transformation, disciplined underwriting, and expansion into E&S markets contributed to outperformance versus peers.

Financial highlights

• Q4 2025 net income was $26.6 million, with EPS of $0.53; full-year net income reached $106.8 million, with EPS of $2.15.

• Net premiums earned for FY 2025 were $306.9 million, up 12% year-over-year.

• Combined ratio was 58.6% for Q4 and 60.1% for the year; underlying combined ratio was 61.5%, below the 65% target.

• Revenues for 2025 increased $38.8 million (13.1%) year-over-year, driven by quota share step-downs.

• Book value per share at year-end was $6.51, up 33% from the prior year.

Outlook and guidance

• Premium production expected to remain challenging due to a softer commercial property insurance market, with average premiums down 13% in December.

• E&S market expansion and new revenue pathways are being pursued for long-term growth, not immediate scale.

• Revenue guidance for 2026 remains solid despite volatility in written premiums.

• ACES (new E&S entity) expected to contribute 5% or less of 2026 revenue, with larger impact anticipated from 2027 onward.

• Successfully renewed catastrophe reinsurance programs for 2026 with lower risk-adjusted rates and a broader reinsurer panel.