American Coastal Insurance Corporation (ACIC) reported fourth‑quarter 2025 results that surpassed analyst expectations. Net income for the quarter was $26.6 million, giving earnings per share of $0.53, a $0.11 beat over the consensus estimate of $0.42. Full‑year 2025 net income reached $106.8 million, or $2.15 per share, exceeding the company’s guidance of $70 million to $90 million. Total revenue climbed 13.1 % to $335.4 million, a $2.97 million lift over the $332.43 million forecasted by analysts.
Underwriting strength drove the results. The quarter’s underlying combined ratio was 58.6 %, and the full‑year ratio was 60.1 %, both well below the 65 % target. Losses and loss‑adjusted expenses fell sharply, largely because the 2024 hurricane season, dominated by Hurricane Milton, left the prior year with higher catastrophe losses. Florida’s recent legislative reforms also helped reduce reinsurance costs, further improving the loss ratio, which dropped to 12.5 % in the quarter.
Liquidity and capital position improved markedly. Cash and investments grew 19.8 % to $647.7 million, a correction to the earlier $695 million figure. Book value per share rose to $6.51, and stockholders’ equity increased 34.8 % to $317.6 million. The company also continued to reward shareholders with special dividends in each of the last two years.
Revenue growth was supported by a 19.8 million increase in core income, driven by a $20.5 million reduction in incurred losses from Hurricane Milton and a rebound in the commercial residential property market. Net premiums earned reached $79.32 million, up from $58.52 million in the prior year, reflecting stronger demand in core segments. ACIC also announced plans to expand into the excess‑and‑surplus (E&S) market, positioning the insurer for new revenue and earnings pathways.
Management highlighted the results: “We're proud to have finished the year with earnings of $26.6 million for the quarter and earnings of $106.8 million, or $2.15 per share for the full year, exceeding our 2025 guidance.” CEO B. Bradford Martz added, “Net premiums earned were in line with our 2025 guidance, contributing to revenue growth of 13.1 % year‑over‑year. Our underwriting results remain strong, with both our quarterly and full‑year underlying combined ratio outperforming our 65 % target.” CFO Svetlana Castle noted, “Our combined ratio was 58.6 % for the quarter and 60.1 % for the full year. Our non‑GAAP underlying combined ratio, which excludes current year catastrophe losses and prior year development, was 58.9 % for the quarter, a decrease of 7 points from the prior year.”
Compared with 2024, ACIC’s net income grew from $75.7 million to $106.8 million, and EPS rose from $1.54 to $2.15. Revenue increased from $296.7 million to $335.4 million, underscoring the company’s ability to generate higher premiums while maintaining disciplined underwriting. The combination of strong earnings, improved liquidity, and a strategic push into the E&S market signals a robust trajectory for the insurer.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.