ACIC Reports Strong Performance But Faces Challenges in Premiums

American Coastal Insurance Corporation (ACIC) reported a second-quarter 2026 underlying combined ratio of 68.7%, an increase from 62.2% in the same quarter of the previous year. The combined ratio included a loss ratio of 27.0%, rising from 19.8% in the second quarter of 2025, and an expense ratio of 47.3%, up from 40.8%.

Losses and loss adjustment expenses (LAE) during the quarter increased by 21.3% to $18.8 million compared to $15.5 million in the previous year. Excluding catastrophe losses and reserve development, the gross underlying loss and LAE ratio would have been 10.8%, a slight increase from 10.2% a year earlier. Gross premiums written saw a decline of 5.3%, totaling $216.3 million, down from $228.3 million.

Net income was recorded at $21.9 million, marking a 17.2% decline from the previous year's $26.4 million. This decline is attributed to reduced net premiums earned, following the drop in gross premiums earned. ACIC's President & CEO, Brad Martz, emphasized the company's strategic focus on underwriting profitability during the quarter, noting a growth of over 20% in book value per share and a credit rating upgrade from Kroll.

Martz highlighted ACIC’s strong position in the commercial-residential market, particularly in hurricane-prone areas, and discussed plans to expand into additional commercial property classes and new geographies through their E&S growth platform. The platform has already added $28.7 million in premiums year-to-date, supporting ACIC's goal of maintaining sustainable growth and a competitive edge since 2007.