American Coastal Insurance reported lower third-quarter revenue and earnings than a particularly strong year-earlier quarter, even as it returned to growth in gross premiums written. Management said net pricing was down more than 25% year over year in a softening market, but pointed to steady underwriting performance and new channels for expanding its commercial-property business.
The insurer also said its AmRisc partnership is now on a permanent footing and that it has received authority to launch a new specialty operation. The new business is expected to begin writing excess-and-surplus commercial property coverage in Florida, Texas and South Carolina in the coming months.
Third-quarter results
- Net income was $19.4 million, or $0.40 per diluted share, down from $32.5 million, or $0.65 per share, a year earlier. Revenue fell 21.8% to $70.7 million.
- The company’s non-GAAP core income was $20.4 million, or $0.42 per diluted share, compared with $30.5 million, or $0.61, a year earlier. Core income excludes certain investment-related gains and losses and other adjustments.
- The combined ratio was 64.7% and the underlying combined ratio was 68.4%. Both were below 100%, indicating that premiums exceeded claims and underwriting expenses. Management said the underlying ratio was in line with the first two quarters of 2026.
- Gross premiums written rose 3.2% to $74.1 million, the first year-over-year quarterly increase since early 2025, according to management. But gross premiums earned fell 14.9% to $138.5 million, while net premiums earned declined 19.0% to $65.5 million. Written premiums reflect policies issued during a period; earned premiums are recognized over the coverage period.
- For the first nine months of 2026, gross premiums written were down 11.7% to $439.8 million. Net income fell 24.6% to $60.5 million, and core income dropped 27.9% to $56.1 million.
- Book value per share was $7.52, up 12.1% from $6.71 a year earlier. Management said it had increased 15.5% since the end of 2025.
Business expansion
- American Coastal said its AmRisc partnership has been made permanent. Its participation in AmRisc’s nationwide excess-and-surplus commercial-property portfolio generated $37.3 million of premium so far this year.
- The company received a certificate of authority for ACES Specialty and expects to begin writing excess-and-surplus commercial-property policies through Skyway in Florida, Texas and South Carolina in the coming months.
- Management described the quarter’s results as evidence of disciplined underwriting amid falling rates and said it is using the softer market to prepare for a future hard market. The new AmRisc and ACES Specialty activity provides additional avenues for commercial-property growth; the company did not provide further financial targets for those initiatives.