Key Highlights

  • Third quarter consolidated Net Income came to $19.4 million, a 40.3% decline 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 stood at 64.7%, with an underlying combined ratio of 68.4%.
  • Book value per share reached $7.52, up 12.1% year over year and 15.5% since year-end.
  • Core Return on Equity fell to 24.1% from 44.5%.

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

American Coastal Insurance (NASDAQ:ACIC), a property and casualty insurance Holding Company headquartered in St. Petersburg, Florida, released its third quarter 2026 figures on October 29, 2026. Consolidated net income landed at $19.4 million, or $0.40 per diluted share, compared with $32.5 million, or $0.65, in the same period a year earlier. That works out to a drop of 40.3%.

Core income, a non-GAAP measure, totaled $20.4 million, down 33.1% from $30.5 million. On a diluted per share basis, core income was $0.42, against $0.61. Across the first nine months, net income reached $60.5 million, or $1.23 per diluted share, compared with $80.3 million, or $1.61.

President and CEO B. Bradford Martz credited disciplined Underwriting in a softening market for the results, while acknowledging that the quarter was measured against a very strong prior-year period. He added that net pricing fell by more than 25% from a year earlier.

Written premium edges up while Earned Premium shrinks

Gross premiums written increased 3.2% to $74.1 million from $71.8 million. Over the nine-month span, however, gross premiums written declined 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 decreased 21.8% to $70.7 million from $90.4 million, while nine-month total revenue came in at $224.5 million, down 9.9%.

Investment items also moved in the period. Unrealized losses on equity securities amounted to $625 thousand in the quarter, a swing from gains of $3.2 million a year earlier, and net realized losses were $4 thousand.

Underwriting margins and returns stay elevated

The company recorded a combined ratio of 64.7% and an underlying combined ratio of 68.4%, which management described as consistent with its expectations. GAAP return on equity was 22.9%, versus 47.5% in the prior year quarter, while core return on equity was 24.1%, compared with 44.5%.

For the nine months, GAAP return on equity came to 23.9% against 39.1%, and core return on equity was 22.1% against 37.9%. Both measures are annualized and rely on average stockholders' equity over the trailing twelve months.

Book value per share climbed to $7.52 from $6.71 a year earlier, a 12.1% gain. Management said the figure has risen 15.5% since the start of the year.

The AmRisc arrangement and preparation for the next hard market

During the quarter, the company said it placed its AmRisc Partnership on a permanent footing. Its share of AmRisc's nationwide excess and surplus commercial property portfolio has contributed $37.3 million of premium to date.

Management said it is using this phase of the cycle to position the Business so it can capture meaningful benefit 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 relative to written premium, and whether the combined ratio stays near this level.

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