ACIC · American Coastal Insurance Corporation

American Coastal Insurance Corporation reported a profitable first quarter of 2026, with net income of $19.3 million, or $0.39 per diluted share, compared to $21.3 million, or $0.43 per diluted share, in the prior year period. The year-over-year decline in net income was primarily driven by the absence of income from discontinued operations, which contributed $1.6 million in Q1 2025 following the divestiture of those operations later that year.

The top-line results reflected a challenging market environment. Gross premiums written decreased 24.5% to $149.4 million, which management attributed to increased competition and a 24% decrease in net pricing as the commercial market softens. Net premiums earned declined 3.9% to $65.6 million. Despite the premium contraction, underwriting profitability remained robust. The GAAP combined ratio was 66.0%, only slightly higher than the 65.0% reported in the prior year. The underlying combined ratio, a non-GAAP measure excluding catastrophe losses and prior year reserve development, was 68.3%, consistent with the prior year's 68.2%. The net loss ratio improved to 15.6% from 16.7%, while the expense ratio increased to 50.4% from 48.3%, partly due to the non-recurrence of an employee retention tax credit refund received in Q1 2025.

President and CEO B. Bradford Martz highlighted the company's discipline in navigating the soft cycle, emphasizing selective capital deployment and the use of AI to strengthen competitive positioning without compromising underwriting standards. Book value per share increased 27.1% year-over-year to $6.86, supported by retained earnings. The company paid a dividend of approximately $36.6 million during the quarter, which contributed to a decrease in cash and investments to $599.4 million from $647.7 million at year-end 2025.