# AMERICAN COASTAL INSURANCE Corp (ACIC)

Informational only - not investment advice.

CIK: 0001401521
SIC: 6331 Fire, Marine & Casualty Insurance
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Insurance Carriers](/major-group/63/) > [SIC 6331 Fire, Marine & Casualty Insurance](/industry/6331/)
Latest 10-K filed: 2026-03-09
SEC page: https://www.sec.gov/edgar/browse/?CIK=1401521
Filing source: https://www.sec.gov/Archives/edgar/data/1401521/000140152126000015/acic-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-09 · accession 0001401521-26-000015 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001401521.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 335,439,000 USD | 2025 | verified |
| Net income | 106,837,000 USD | 2025 | verified |
| Assets | 1,072,732,000 USD | 2025 | verified |
| Free cash flow | 70,870,000 USD | 2025 | computed |
| Net margin | 31.85% | 2025 | computed |
| Operating margin | 41.82% | 2025 | computed |
| Revenue YoY | +13.07% | 2025 | computed |
| ROE | 33.64% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | ACIC | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 31.8% | 12.9% | 92 | 53 |
| Operating margin | 41.8% | 13.6% | 100 | 8 |
| Revenue growth | 13.1% | 9.4% | 63 | 53 |
| FCF margin | 21.1% | 19.9% | 57 | 36 |
| ROE | 33.6% | 15.9% | 92 | 53 |
| ROA | 10.0% | 3.9% | 96 | 53 |
| Liabilities / equity | 2.38 | 3.04 | 23 | 53 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6331 Fire, Marine & Casualty Insurance, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 335439000 | USD | 2025 | 2026-03-09 |
| Net income | 106837000 | USD | 2025 | 2026-03-09 |
| Assets | 1072732000 | USD | 2025 | 2026-03-09 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-09. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001401521.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 487,117,000 | 654,420,000 | 723,942,000 | 825,116,000 | 846,656,000 | 228,685,000 | 221,673,000 |  | 296,657,000 | 335,439,000 |
| Net income |  | 5,698,000 | 10,145,000 | 290,000 | -29,872,000 | -96,454,000 | -57,919,000 | -469,855,000 | 309,911,000 | 75,718,000 | 106,837,000 |
| Operating income |  | 6,903,000 | 757,000 | -4,355,000 | -32,725,000 | -132,177,000 | -10,546,000 | -8,661,000 | 93,852,000 | 99,596,000 | 140,277,000 |
| Diluted EPS |  | 0.26 | 0.27 | 0.01 | -0.70 | -2.25 | -1.35 | -10.91 | 6.98 | 1.54 | 2.15 |
| Operating cash flow |  | 65,747,000 | 35,548,000 | 25,759,000 | 149,015,000 | -10,471,000 | -295,391,000 | -173,113,000 | -136,003,000 | 243,509,000 | 71,025,000 |
| Capital expenditures |  | 3,149,000 | 5,237,000 | 4,068,000 | 21,896,000 | 10,848,000 | 5,271,000 | 3,047,000 | 196,000 | 22,000 | 155,000 |
| Dividends paid |  | 4,974,000 | 8,991,000 | 10,268,000 | 10,280,000 | 10,313,000 | 10,350,000 | 2,589,000 | 0.00 | 24,102,000 | 0.00 |
| Assets |  | 999,686,000 | 2,059,921,000 | 2,321,428,000 | 2,467,218,000 | 2,848,941,000 | 2,698,573,000 | 2,837,496,000 | 1,062,378,000 | 1,216,112,000 | 1,072,732,000 |
| Liabilities |  | 758,359,000 | 1,522,796,000 | 1,781,059,000 | 1,943,353,000 | 2,431,342,000 | 2,366,616,000 | 3,019,535,000 | 893,613,000 | 980,452,000 | 755,167,000 |
| Stockholders' equity |  | 241,327,000 | 537,125,000 | 520,230,000 | 503,138,000 | 395,753,000 | 312,406,000 | -182,039,000 | 168,765,000 | 235,660,000 | 317,565,000 |
| Cash and cash equivalents | 84,786,000 | 150,688,000 | 229,556,000 | 112,679,000 | 215,469,000 | 239,420,000 | 212,024,000 | 229,893,000 |  | 137,036,000 | 198,762,000 |
| Free cash flow |  | 62,598,000 | 30,311,000 | 21,691,000 | 127,119,000 | -21,319,000 | -300,662,000 | -176,160,000 | -136,199,000 | 243,487,000 | 70,870,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 1.17% | 1.55% | 0.04% | -3.62% | -11.39% | -25.33% |  |  | 25.52% | 31.85% |
| Operating margin |  | 1.42% | 0.12% | -0.60% | -3.97% | -15.61% | -4.61% | -3.91% |  | 33.57% | 41.82% |
| Return on equity |  | 2.36% | 1.89% | 0.06% | -5.94% | -24.37% | -18.54% |  | 183.63% | 32.13% | 33.64% |
| Return on assets |  | 0.57% | 0.49% | 0.01% | -1.21% | -3.39% | -2.15% | -16.56% | 29.17% | 6.23% | 9.96% |
| Liabilities / equity |  | 3.14 | 2.84 | 3.42 | 3.86 | 6.14 | 7.58 |  | 5.30 | 4.16 | 2.38 |

## As-reported value updates

8 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/ACIC/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001401521.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 43101-Q1 | 2018-03-31 | 180,127,000 |  | 0.20 | reported discrete quarter |
| 43101-Q2 | 2018-06-30 | 183,148,000 |  | 0.34 | reported discrete quarter |
| 2020-Q4 | 2020-12-31 |  | -33,556,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2021-Q1 | 2021-06-30 |  | -23,421,000 |  | reported discrete quarter |
| 2021-Q3 | 2021-09-30 |  | -15,118,000 |  | reported discrete quarter |
| 2021-Q4 | 2021-12-31 |  | -2,869,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2022-Q1 | 2022-03-31 |  | -33,257,000 |  | reported discrete quarter |
| 2022-Q2 | 2022-06-30 |  | -69,055,000 |  | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  | -70,884,000 |  | reported discrete quarter |
| 2022-Q4 | 2022-12-31 |  | -296,770,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2023-Q1 | 2023-03-31 |  | 267,280,000 |  | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  | 17,779,000 | 0.41 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 |  | 10,568,000 | 0.24 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 |  | 14,284,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 73,204,000 |  | 0.48 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 68,656,000 |  | 0.39 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 82,136,000 |  | 0.57 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 79,267,000 |  |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 72,202,000 |  | 0.43 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 86,467,000 |  | 0.53 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 90,395,000 |  | 0.65 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 86,375,000 |  |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 71,224,000 |  | 0.39 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 82,597,000 |  | 0.44 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ACIC's latest 10-K: [/company/ACIC/business/](/company/ACIC/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ACIC's latest 10-K: [/company/ACIC/risk-factors/](/company/ACIC/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1401521/000140152126000037/acic-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and related notes appearing elsewhere in this Form 10-Q, as well as with the Consolidated Financial Statements and related footnotes under Part II. Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2025. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed or implied in these forward-looking statements as a result of certain known and unknown risks and uncertainties. See "Forward-Looking Statements."

EXECUTIVE SUMMARY

Overview

American Coastal Insurance Corporation (referred to in this document as we, our, us, the Company or ACIC) is a holding company primarily engaged in commercial property insurance business with investments in the United States. We conduct our business principally through our wholly-owned insurance subsidiary, American Coastal Insurance Company (AmCoastal). Collectively, we refer to the holding company and all our subsidiaries, including non-insurance subsidiaries, as “American Coastal Insurance Corporation,” which is the preferred brand identification for our Company.

Our Company’s revenue is generated primarily from writing insurance in Florida. Our target market in such areas consists of states where the perceived threat of natural catastrophe has caused large national insurance carriers to reduce their concentration of policies. We believe an opportunity exists for ACIC to write profitable business in such areas.

On May 9, 2024, we entered into a Stock Purchase Agreement (the "Sale Agreement") with Forza Insurance Holdings, LLC (Forza) in which ACIC agreed to sell and Forza agreed to acquire 100% of the issued and outstanding stock of Interboro Insurance Company (IIC), our former insurance subsidiary. Forza’s application to acquire IIC was approved by the New York Department of Financial Services ("NYDFS") on February 13, 2025, and the sale closed on April 1, 2025. The Company received cash proceeds totaling $25,679,000 from the sale resulting in a loss on disposal of $247,000, net of tax impacts. The Company also recognized a $1,348,000 loss, net of tax impacts, on IIC's fixed maturity portfolio, which was included in accumulated other comprehensive loss on the Company's Consolidated Balance Sheets prior to the sale. As a result, IIC results of operations and assets and liabilities are captured within discontinued operations and can be seen in Note 3 of the Notes to Unaudited Condensed Consolidated Financial Statements above.

Our policies in-force increased by 1.2% from 4,402 policies in-force at June 30, 2025 to 4,453 policies in-force at June 30, 2026.

The following discussion highlights significant factors influencing the consolidated financial position and results of operations of American Coastal Insurance Corporation. In evaluating our results of operations, we use premiums written and earned, policies in-force and new and renewal policies by geographic concentration. We also consider the impact of catastrophe losses and prior year development on our loss ratios, expense ratios and combined ratios. In monitoring our investments, we use credit quality, investment income, cash flows, realized gains and losses, unrealized gains and losses, asset diversification and portfolio duration. To evaluate our financial condition, we consider our liquidity, financial strength, ratings, book value per share and return on equity.

35

AMERICAN COASTAL INSURANCE CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2026

2026 Highlights

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","","","Six Months Ended June 30,"],["","2026","","","2025","","","2026","","","2025"],["Gross premiums written","$","216,304","","","$","228,346","","","$","365,699","","","$","426,198"],["Gross premiums earned","","138,730","","","","165,460","","","","279,864","","","","327,561"],["Net premiums earned","","69,698","","","","78,443","","","","135,309","","","","146,715"],["Total revenues","","82,597","","","","86,467","","","","153,821","","","","158,669"],["Income from continuing operations, net of tax","","21,896","","","","28,037","","","","41,150","","","","47,748"],["Income (loss) from discontinued operations, net of tax","","\u2014","","","","(1,595",")","","","\u2014","","","","42"],["Consolidated net income","$","21,896","","","$","26,442","","","$","41,150","","","$","47,790"],["Net income available to ACIC stockholders per diluted share"],["Continuing Operations","$","0.44","","","$","0.56","","","$","0.83","","","$","0.96"],["Discontinued Operations","","\u2014","","","","(0.03",")","","","\u2014","","","","-"],["Total","$","0.44","","","$","0.53","","","$","0.83","","","$","0.96"],["Reconciliation of net income to core income:"],["Plus: Non-cash amortization of intangible assets","$","610","","","$","610","","","$","1,220","","","$","1,219"],["Less: Income (loss) from discontinued operations, net of tax","","\u2014","","","","(1,595",")","","","\u2014","","","","42"],["Less: Net realized gains on investment portfolio","","3,264","","","","\u2014","","","","3,270","","","","1,382"],["Less: Unrealized gains on equity securities","","4,233","","","","2,231","","","","4,761","","","","268"],["Less: Net tax impact (1)","","(1,446",")","","","(340",")","","","(1,430",")","","","(91",")"],["Core income(2)","","16,455","","","","26,756","","","","35,769","","","","47,408"],["Core income per diluted share (2)","$","0.33","","","$","0.54","","","$","0.72","","","$","0.96"],["Book value per share","","","","","","","$","7.21","","","$","6.00"]]
[[/GREPCENT_TABLE]]

(1) In order to reconcile the net income to the core income measure, we included the tax impact of all adjustments using the 21% corporate federal tax rate.

(2) Core income, a measure that is not based on GAAP, is reconciled above to net income, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this Form 10-Q is in "Definitions of Non-GAAP Measures" below.

36

AMERICAN COASTAL INSURANCE CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2026

Consolidated Net Income

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","","","Six Months Ended June 30,"],["","2026","","","2025","","","2026","","","2025"],["REVENUE:"],["Gross premiums written","$","216,304","","","$","228,346","","","$","365,699","","","$","426,198"],["Change in gross unearned premiums","","(77,574",")","","","(62,886",")","","","(85,835",")","","","(98,637",")"],["Gross premiums earned","","138,730","","","","165,460","","","","279,864","","","","327,561"],["Ceded premiums earned","","(69,032",")","","","(87,017",")","","","(144,555",")","","","(180,846",")"],["Net premiums earned","","69,698","","","","78,443","","","","135,309","","","","146,715"],["Net investment income","","5,402","","","","5,793","","","","10,481","","","","10,304"],["Net realized investment gains","","3,264","","","","\u2014","","","","3,270","","","","1,382"],["Net unrealized gains on equity securities","","4,233","","","","2,231","","","","4,761","","","","268"],["Total revenue","","82,597","","","","86,467","","","","153,821","","","","158,669"],["EXPENSES:"],["Losses and loss adjustment expenses","","18,833","","","","15,540","","","","29,076","","","","26,929"],["Policy acquisition costs","","22,703","","","","24,257","","","","45,096","","","","47,723"],["General and administrative expenses","","10,266","","","","7,778","","","","20,969","","","","17,284"],["Interest expense","","2,344","","","","2,719","","","","4,688","","","","5,436"],["Total expenses","","54,146","","","","50,294","","","","99,829","","","","97,372"],["Income before other income","","28,451","","","","36,173","","","","53,992","","","","61,297"],["Other income (loss)","","(48",")","","","1,379","","","","164","","","","2,449"],["Income before income taxes","","28,403","","","","37,552","","","","54,156","","","","63,746"],["Provision for income taxes","","6,507","","","","9,515","","","","13,006","","","","15,998"],["Net income from continuing operations, net of tax","$","21,896","","","$","28,037","","","$","41,150","","","$","47,748"],["Income (loss) from discontinued operations, net of tax","","\u2014","","","","(1,595",")","","","\u2014","","","","42"],["Net income","$","21,896","","","$","26,442","","","$","41,150","","","$","47,790"],["Earnings available to ACIC common stockholders per diluted share","$","0.44","","","$","0.53","","","$","0.83","","","$","0.96"],["Book value per share","","","","","","","$","7.21","","","$","6.00"],["Return on equity based on GAAP net income","","","","","","","","25.0","%","","","37.1","%"],["Loss ratio, net (1)","","27.0","%","","","19.8","%","","","21.5","%","","","18.4","%"],["Expense ratio (2)","","47.3","%","","","40.8","%","","","48.8","%","","","44.3","%"],["Combined ratio (3)","","74.3","%","","","60.6","%","","","70.3","%","","","62.7","%"],["Effect of current year catastrophe losses on combined ratio","","4.5","%","","","\u2014","%","","","2.4","%","","","\u2014","%"],["Effect of prior year development on combined ratio","","1.1","%","","","(1.6",")%","","","(0.7",")%","","","(2.4",")%"],["Underlying combined ratio (4)","","68.7","%","","","62.2","%","","","68.6","%","","","65.0","%"]]
[[/GREPCENT_TABLE]]

(1) Loss ratio, net is calculated as losses and loss adjustment expense (LAE) net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses.

(2) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate this component separately from our loss expenses.

(3) Combined ratio is the sum of the loss ratio, net and the expense ratio, net. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business.

(4) Underlying combined ratio, a measure that is not based on GAAP, is reconciled above to the combined ratio, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this Form 10-Q is in "Definitions of Non-GAAP Measures" below.

37

AMERICAN COASTAL INSURANCE CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2026

Definitions of Non-GAAP Measures

We believe that investors' understanding of ACIC's performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Combined ratio excluding the effects of current year catastrophe losses and prior year reserve development (underlying combined ratio) is a non-GAAP measure, that is computed by subtracting the effect of current year catastrophe losses and prior year development from the combined ratio. We believe that this ratio is useful to investors and it is used by management to highlight the trends in our business that may be obscured by current year catastrophe losses and prior year development. Current year catastrophe losses cause our loss trends to vary significantly between periods as a result of their frequency of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year development is ca

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1401521/000140152126000015/acic-20251231.htm
Complete FY 2025 MD&A: /company/ACIC/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-09
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes appearing in Part II, Item 8 of this Form 10-K. The following discussion provides an analysis of our results of operations and financial condition for 2025 as compared to 2024. Discussion regarding our results of operations and financial condition for 2024 as compared to 2023 is included in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed or implied in these forward-looking statements as a result of certain known and unknown risks and uncertainties. See “Forward-Looking Statements.”

OVERVIEW

American Coastal Insurance Corporation is a holding company primarily engaged in commercial property and casualty insurance business with investments in the United States. On July 10, 2023, we changed our corporate name from United Insurance Holdings Corp. to American Coastal Insurance Corporation. During the periods presented, we conducted our business principally through our wholly owned insurance subsidiary, American Coastal Insurance Company (AmCoastal). Collectively, we refer to the holding company and all our subsidiaries, including non-insurance subsidiaries, as “ACIC,” which is the preferred brand identification for our Company.

Our Company’s revenue is generated from writing insurance in Florida. Our target market in such areas consists of states where the perceived threat of natural catastrophe has caused large national insurance carriers to reduce their concentration of policies. We believe an opportunity exists for ACIC to write profitable business in such areas. On February 27, 2023, our former insurance subsidiary that wrote personal residential business in six states, United Property & Casualty Insurance Company (UPC) was placed into receivership with the Florida Department of Financial Services (the "DFS"), which divested our ownership of UPC. The events leading to receivership and results of this subsidiary, now included within discontinued operations, can be seen in Note 4 of the Notes to Consolidated Financial Statements below.

On May 9, 2024, we entered into a Stock Purchase Agreement (the "Sale Agreement") with Forza Insurance Holdings, LLC (Forza) in which ACIC agreed to sell and Forza agreed to acquire 100% of the issued and outstanding stock of IIC. Forza’s application to acquire IIC was approved by the New York Department of Financial Services ("NYDFS") on February 13, 2025, and the sale closed on April 1, 2025. The Company received cash proceeds totaling $25,679,000 from the sale resulting in a loss on disposal of $247,000, net of tax impacts. The Company also recognized a $1,348,000 loss, net of tax impacts, on IIC's fixed maturity portfolio, which was included in accumulated other comprehensive loss on the Company's Consolidated Balance Sheets prior to the sale. As a result, IIC results of operations and assets and liabilities are captured within discontinued operations and can be seen in Note 4 of the Notes to Consolidated Financial Statements below.

We have historically grown our business through strong organic growth, complemented by strategic acquisitions and partnerships, including our acquisitions of AmCo Holding Company, LLC (AmCo) and its subsidiaries, including AmCoastal, in April 2017.

Our policies in-force increased by 5.20% from 4,099 policies in-force at December 31, 2024, to 4,311 policies in-force at December 31, 2025.

Our business is subject to the impact of weather-related catastrophes on our loss and loss adjustment expenses (LAE). During the year ended December 31, 2025, no named storms made landfall in our geographic footprint. During the years ended December 31, 2024 and 2023, five and two named storms, respectively, made landfall in our geographic footprint, resulting in retained pre-tax catastrophe losses of $25,442,000 and $729,000 respectively.

For the years ended December 31, 2025 and 2024, we have consolidated our Operating and Underwriting Expenses and General and Administrative Expenses lines within our Consolidated Statements of Comprehensive Income into the General and Administrative Expenses line. This was done in an effort to align more closely with our peer group for comparability. Accordingly, we have recast our Consolidated Statements of Comprehensive Income for the year ended December 31, 2023 to align with this format. We have also added a new note to our consolidated financial statements, Note 3, Disaggregation of Relevant Expense Captions, to provide the users of our financial statements with enhanced insight into this expense line.

30

AMERICAN COASTAL INSURANCE CORPORATION

The following discussion highlights significant factors influencing the consolidated financial position and results of operations of ACIC. In evaluating our results of operations, we use premiums written and earned, policies in-force and new and renewal policies by geographic concentration. We also consider the impact of catastrophe losses and prior year development on our loss ratios, expense ratios and combined ratios. In monitoring our investments, we use credit quality, investment income, cash flows, realized gains and losses, unrealized gains and losses, asset diversification and portfolio duration. To evaluate our financial condition, we consider our liquidity, financial strength, ratings, book value per share and return on equity.

Consolidated Net Income (Loss)

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["","2025","","","2024","","","2023"],["REVENUE:"],["Gross premiums written","$","612,522","","","$","647,805","","","$","635,709"],["Change in gross unearned premiums","","35,738","","","","(9,197",")","","","(31,026",")"],["Gross premiums earned","","648,260","","","","638,608","","","","604,683"],["Ceded premiums earned","","(341,408",")","","","(364,618",")","","","(342,623",")"],["Net premiums earned","","306,852","","","","273,990","","","","262,060"],["Net investment income","","22,206","","","","20,795","","","","8,300"],["Net realized investment gains (losses)","","1,382","","","","(124",")","","","(6,789",")"],["Net unrealized gains on equity securities","","4,999","","","","1,996","","","","814"],["Other revenue","","\u2014","","","","\u2014","","","","15"],["Total revenue","","335,439","","","","296,657","","","","264,400"],["EXPENSES:"],["Losses and loss adjustment expenses","","46,040","","","","69,319","","","","46,678"],["Policy acquisition costs","","97,844","","","","70,990","","","","75,436"],["General and administrative expenses","","40,463","","","","44,756","","","","37,559"],["Interest expense","","10,815","","","","11,996","","","","10,875"],["Total expenses","","195,162","","","","197,061","","","","170,548"],["Income before other income","","140,277","","","","99,596","","","","93,852"],["Other income","","2,457","","","","2,063","","","","2,228"],["Income before income taxes","","142,734","","","","101,659","","","","96,080"],["Provision for income taxes","","35,939","","","","25,340","","","","10,876"],["Net income from continuing operations, net of tax","$","106,795","","","$","76,319","","","$","85,204"],["Income (loss) from discontinued operations, net of tax","","42","","","","(601",")","","","224,707"],["Net income","$","106,837","","","$","75,718","","","$","309,911"],["Earnings available to ACIC common stockholders per diluted share","$","2.15","","","$","1.54","","","$","6.98"],["Book value per share","$","6.51","","","$","4.89","","","$","3.61"],["Return on equity based on GAAP net income","","36.2","%","","","33.5","%","","","439.5","%"],["Loss ratio, net (1)","","15.0","%","","","25.3","%","","","17.8","%"],["Expense ratio (2)","","45.1","%","","","42.2","%","","","43.1","%"],["Combined ratio (3)","","60.1","%","","","67.5","%","","","60.9","%"],["Effect of current year catastrophe losses on combined ratio","","0.5","%","","","9.3","%","","","4.9","%"],["Effect of prior year development on combined ratio","","(1.9",")%","","","(1.4",")%","","","(4.9",")%"],["Underlying combined ratio (4)","","61.5","%","","","59.6","%","","","60.9","%"]]
[[/GREPCENT_TABLE]]

(1) Loss ratio, net, is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses.

(2) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses.

(3) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business.

(4) Underlying combined ratio, a measure that is not based on GAAP, is reconciled above to the combined ratio, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this Form 10-K can be found in “Definitions of Non-GAAP Measures”, below.

31

AMERICAN COASTAL INSURANCE CORPORATION

DEFINITIONS OF NON-GAAP MEASURES

We believe that investors’ understanding of ACIC’s performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Combined ratio excluding the effects of current year catastrophe losses and prior year reserve development (underlying combined ratio) is a non-GAAP measure that is computed by subtracting the effect of current year catastrophe losses and prior year development from the combined ratio. We believe that this ratio is useful to investors, and it is used by management to highlight the trends in our business that may be obscured by current year catastrophe losses and prior year development. Current year catastrophe losses cause our loss trends to vary significantly between periods as a result of their frequency of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year development is caused by unexpected loss development on historical reserves. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of our business.

Net loss and LAE excluding the effects of current year catastrophe losses and prior year reserve development (underlying loss and LAE) is a non-GAAP measure that is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and LAE. We use underlying loss and LAE figures to analyze our loss trends that may be impacted by current year catastrophe losses and prior year development on our reserves. As discussed previously, these two items can have a significant impact on our loss trends in a given period. We believe it is useful for investors to evaluate these components both separately and in the aggregate when reviewing our performance. The most directly comparable GAAP measure is net loss and LAE. The underlying loss and LAE measure should not be considered a substitute for net loss and LAE and does n

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/ACIC/mda/fy2025/
All MD&A years: /company/ACIC/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/ACIC/mda/fy2024/): filed 2025-03-10; accession 0001401521-25-000032 (https://www.sec.gov/Archives/edgar/data/1401521/000140152125000032/acic-20241231.htm)
- [FY 2023 MD&A](/company/ACIC/mda/fy2023/): filed 2024-03-15; accession 0001401521-24-000024 (https://www.sec.gov/Archives/edgar/data/1401521/000140152124000024/uihc-20231231.htm)
- [FY 2022 MD&A](/company/ACIC/mda/fy2022/): filed 2023-04-17; accession 0001401521-23-000023 (https://www.sec.gov/Archives/edgar/data/1401521/000140152123000023/uihc-20221231.htm)
- [FY 2021 MD&A](/company/ACIC/mda/fy2021/): filed 2022-03-15; accession 0001401521-22-000010 (https://www.sec.gov/Archives/edgar/data/1401521/000140152122000010/uihc-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6331 Fire, Marine & Casualty Insurance) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ACIC.md · JSON record: /company/ACIC.json · verified financials: /company/ACIC/financials.json / /company/ACIC/financials.csv · machine TOC for the whole site: /llms.txt