Key Highlights

  • Third quarter consolidated Net Income was $19.4 million, down 40.3% from $32.5 million.
  • Diluted EPS was $0.40, against $0.65 a year earlier, while core income per share was $0.42.
  • The combined ratio was 64.7%, with an underlying combined ratio of 68.4%.
  • Book value per share was $7.52, up 12.1% year over year and 15.5% since year-end.
  • Core Return on Equity was 24.1%, down from 44.5%.

Earnings fall 40.3% against a very strong prior-year quarter

American Coastal Insurance (NASDAQ:ACIC), a St. Petersburg, Florida-based property and casualty insurance holding company, reported third quarter 2026 results on October 29, 2026. Consolidated net income was $19.4 million, or $0.40 per diluted share, versus $32.5 million, or $0.65, a year earlier, a decline of 40.3%.

Core income, a non-GAAP measure, was $20.4 million, down 33.1% from $30.5 million, or $0.42 per diluted share compared with $0.61. For the nine months, net income was $60.5 million, or $1.23 per diluted share, versus $80.3 million, or $1.61.

President and CEO B. Bradford Martz said the results reflect disciplined Underwriting in a softening market and came against a very strong prior-year quarter. He said net pricing was down more than 25% year over year.

Premiums shrink while Written Premium edges up

Gross premiums written rose 3.2% to $74.1 million from $71.8 million. Over nine months, however, gross premiums written fell 11.7% to $439.8 million.

Gross premiums earned dropped 14.9% to $138.5 million, and net premiums earned fell 19.0% to $65.5 million from $80.8 million. Total Revenue declined 21.8% to $70.7 million from $90.4 million. Nine-month total revenue was $224.5 million, down 9.9%.

Investment items moved as well. Unrealized losses on equity securities were $625 thousand in the quarter, against gains of $3.2 million a year earlier, while net realized losses were $4 thousand.

Underwriting margins and returns remain high

The company reported a combined ratio of 64.7% and an underlying combined ratio of 68.4%, which management said was in line with its expectations. Return on equity on a GAAP basis was 22.9%, versus 47.5% in the prior year quarter, and core return on equity was 24.1%, versus 44.5%.

For the nine months, GAAP return on equity was 23.9% compared with 39.1%, and core return on equity was 22.1% versus 37.9%. Both are annualized figures based on average stockholders' equity over the trailing twelve months.

Book value per share reached $7.52 compared with $6.71 a year earlier, a 12.1% increase, and management said it is up 15.5% since year-end.

AmRisc Partnership and positioning for the next hard market

The company said it put its AmRisc partnership on a permanent footing during the quarter. Its participation in AmRisc's nationwide excess and surplus commercial property portfolio has added $37.3 million of premium so far.

Management said it is using this stage of the cycle to position the Business to benefit meaningfully from the next hard market. A conference call was held at 5:00 p.m. Eastern Time on October 29, 2026.

Items to follow include the pace of rate changes, how Earned Premium trends against written premium, and whether the combined ratio stays near this level.

Net income on a nine-month basis was $60.5 million, down 24.6%, and core income per diluted share was $1.14 against $1.57. The 21% federal corporate tax rate was used in reconciling net income to core income, and non-cash amortization of intangible assets was $610 thousand in the quarter.