ACIC Reports Record Q4 2025 Financial Results with 437% Net Income Increase

American Coastal Insurance Corporation (ACIC) experienced a remarkable financial upswing in the fourth quarter of 2025, announcing a net income of $26.6 million—a dramatic rise of 437% from the prior year's $4.9 million. This surge is attributed to a reduction in losses and loss adjustment expenses, particularly following Hurricane Milton's impact in 2024, which resulted in a net loss of $922,000 in discontinued operations—a factor absent in 2025.

During Q4 2025, gross written premiums declined by 18.6% to $114.5 million compared to the same period last year. Despite this, ACIC reported a 9% increase in total revenue, reaching $86.4 million, while net premiums earned rose 8% to $79.3 million. The combined ratio improved significantly, dropping to 58.6% from 91.9%, driven by a reduction in the loss ratio from 40.5% to 12.5%, with the expense ratio slightly improving to 46.1% from 51.4%. Notably, losses and loss adjustment expenses fell by 66.8% to $9.9 million.

For the entire year of 2025, ACIC achieved a net income of $106.8 million, marking a 41.4% increase from 2024's $75.7 million. This growth was supported by an increase in gross premiums earned and a decrease in ceded premiums. While annual gross written premiums declined by 5.4% to $612.5 million, gross premiums earned rose by 1.5% and net premiums earned increased by 12% to $306.9 million. The total annual revenue jumped by 13.1% to $335.4 million.

ACIC's annual combined ratio improved to 60.1% from 67.5% in the previous year, aided by a decreased loss ratio of 15% from 25.3%, despite a slight uptick in the expense ratio to 45.1% from 42.2%. Losses and loss adjustment expenses reduced substantially by 33.6% to $46 million.

Furthermore, ACIC renewed its all other perils catastrophe excess of loss agreement for 2026, with an occurrence limit of up to $95.6 million over a $10 million attachment point. This strategic decision aims to mitigate potential losses from catastrophic events beyond named windstorms and earthquakes.

B. Bradford Martz, ACIC's President and CEO, remarked, "We’re proud to have finished the year exceeding our 2025 guidance, with substantial earnings and strong underwriting results. The company is well-positioned to continue creating long-term value and advancing our growth strategies while maintaining robust liquidity and rewarding shareholders through dividends."