American Coastal Insurance (ACIC) Status Update summary

Strategic partnership and market expansion

• Expanded partnership with AmRisc includes a 6% participation in their nationwide E&S portfolio, expected to generate about $75 million in gross written premium for 2026, starting March 1.

• A new catastrophe reinsurance program will limit retention to $10.8 million, with excess loss coverage up to the 250-year probable maximum loss.

• The E&S market is seen as critical for long-term growth, with a shift in commercial property insurance from admitted to E&S lines.

• Florida strategy remains unchanged due to the cost advantage of the Florida Hurricane Catastrophe Fund, but E&S is preferred for other states and non-qualifying risks.

Launch of new E&S carrier and underwriting strategy

• Formation of ACES Specialty Insurance Company, a wholly owned E&S carrier, is underway with $30 million in initial surplus and pending Arizona regulatory approval.

• ACES will initially assume risk as a collateralized reinsurer and aims to become a direct underwriter after obtaining state approvals and an AM Best rating.

• Initial underwriting focus will be on five commercial property classes in Florida, Texas, and South Carolina, with potential expansion to other CAT-exposed geographies.

• Distribution will continue through national wholesale partners and internal MGA Skyway Underwriters.

Reinsurance program and financial guidance

• Robust reinsurance program renewed for 2026, including all other perils and aggregate catastrophe reinsurance, with $106 million coverage per event and $20 million aggregate limit.

• 2026 guidance targets $85–$100 million in pre-tax earnings and $335–$365 million in total revenue.

• Liquidity and book value have grown steadily, with special cash dividends paid in 2025 and 2026.

• Long-term capital allocation targets less than 25% debt-to-capital and opportunistic stock buybacks, though none have occurred yet.