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1. Company Snapshot

1.a. Company Description

American Coastal Insurance Corporation operates as a property and casualty insurance holding company that sources, writes, and services residential personal and commercial property, and casualty insurance policies in the United States.The company offers structure, content, and liability coverage for standard single-family homeowners, renters, and condominium unit owners.It also provides commercial multi-peril property insurance for residential condominium associations and apartments, as well as loss or damage to buildings, inventory, and equipment caused by fire, wind, hail, water, theft, and vandalism.


In addition, the company offers equipment breakdown, identity theft, cyber security, and flood policies.The company markets and distributes its products through a network of independent agencies.The company was formerly known as United Insurance Holdings Corp.


and changed its name to American Coastal Insurance Corporation in August 2023.American Coastal Insurance Corporation was founded in 1999 and is headquartered in Saint Petersburg, Florida.

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1.b. Last Insights on ACIC

American Coastal Insurance Corporation's recent performance was negatively impacted by top-line stagnation, with 58% of its gross premiums being ceded, resulting in compressed underwriting margins. This is in contrast to HCI, which has seen double-digit increases in net income. The company's focus on niche markets, particularly in Florida, exposes it to significant hurricane risks, which could further erode its profitability. Additionally, the sale of its personal lines subsidiary, Interboro Insurance Company, may have disrupted its business operations, contributing to the stagnation in top-line growth.

1.c. Company Highlights

2. American Coastal Insurance Shines in Q3 2025 with Strong Earnings

American Coastal Insurance Corporation reported a robust third quarter in 2025, with earnings before income taxes exceeding $42 million, marking its best quarter to date. Total revenues surged by over 10% year-over-year, while net income jumped 16%. Earnings per share (EPS) came in at $0.61, significantly beating analyst estimates of $0.39. The company's combined ratio stood at 56.9%, a decrease of 0.8 points from the previous year, indicating improved underwriting profitability. The non-GAAP underlying combined ratio was 57.8%, both metrics coming in below the company's target of 65%. Operating expenses rose by $5.6 million, primarily due to a $4.5 million increase in policy acquisition costs.

Publication Date: Nov -12

📋 Highlights
  • Record Earnings Before Taxes: EBIT reached $42 million, the highest quarterly result in company history.
  • Revenue & Net Income Growth: Total revenues grew >10%, with net income up 16% year-over-year.
  • Combined Ratio Improvement: Ratio dropped to 56.9% (vs. 65% target), with non-GAAP at 57.8%.
  • Liquidity Expansion: Cash/investments surged 28.5% to $695 million; equity rose 38.9% to $327.2 million.
  • New Market Program: Launched $100 million addressable commercial residential insurance market in Florida, targeting 10% capture.

Strategic Initiatives and Growth Prospects

The company has been making strategic moves to expand its market presence, notably through its wholly owned MGA, Skyway Underwriters, which introduced a new commercial residential property insurance program targeting the assisted and independent living facility market in Florida. Initial market research indicates a $100 million addressable market, potentially doubling in 10 years, with the company aiming to capture around 10% of this market in the first year. This move is expected to contribute to future growth, following a similar approach that was successful with apartments.

Reinsurance and Rate Dynamics

Reinsurance costs as a percentage of gross earned premium decreased in the third quarter, and the company is engaged in productive discussions for the January 1 renewal, focusing on capacity and growth rather than price. The expectation is that reinsurance costs will move in line with the company's decreasing rates on the front end. This dynamic is crucial in maintaining profitability as the company continues to grow its business.

Valuation and Outlook

With a Price-to-Book Ratio (P/B) of 1.79 and a Dividend Yield of 4.15%, American Coastal Insurance presents an attractive valuation profile for investors, especially in the insurance sector where dividend yield is a key metric. The company's Return on Equity (ROE) stands at 30.54%, indicating strong profitability. Analysts estimate a revenue growth of -2.7% for the next year, but the company's strategic initiatives and growth prospects could potentially offset this. The upcoming Investor Day in January will provide more insights into the company's strategic plans and full-year guidance for 2026.

3. NewsRoom

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American Coastal Insurance Corporation Declares Special Cash Dividend of $0.75 Per Share and Announces Executive Fireside Chat to Discuss “The Next Horizon”

Dec -01

Source: globenewswire.com

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Investors Title (NASDAQ:ITIC) versus American Coastal Insurance (NASDAQ:ACIC) Head-To-Head Review

Nov -22

Source: defenseworld.net

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American Coastal Insurance Corporation to Participate in Upcoming Conferences

Nov -20

Source: globenewswire.com

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American Coastal (ACIC) Upgraded to Buy: Here's What You Should Know

Nov -19

Source: zacks.com

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American Coastal Insurance Corporation (ACIC) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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American Coastal Insurance (ACIC) Tops Q3 Earnings and Revenue Estimates

Nov -06

Source: zacks.com

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American Coastal Insurance Corporation Reports Financial Results for Its Third Quarter Ended September 30, 2025

Nov -05

Source: globenewswire.com

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American Coastal Insurance Corporation (ACIC) Q2 2025 Earnings Call Transcript

Aug -07

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.53%)

6. Segments

Commercial

Expected Growth: 4.5%

American Coastal Insurance Corporation's 4.5% growth is driven by increasing demand for coastal property insurance, favorable regulatory environment, and strategic partnerships with coastal real estate developers. Additionally, the company's expansion into new markets, improved underwriting processes, and enhanced customer service have contributed to its growth momentum.

Personal

Expected Growth: 4.8%

American Coastal Insurance Corporation's 4.8% growth in Personal segment is driven by increasing demand for coastal property insurance, favorable regulatory environment, and strategic partnerships with local agents. Additionally, the company's digital platform and targeted marketing efforts have improved customer acquisition and retention rates, contributing to the segment's growth.

Adjustments

Expected Growth: 5.2%

American Coastal Insurance Corporation's 5.2% growth is driven by increasing demand for coastal property insurance, favorable regulatory changes, and strategic partnerships. Additionally, the company's expansion into new markets, improved underwriting practices, and investments in digital platforms have contributed to its growth momentum.

7. Detailed Products

Homeowners Insurance

Provides financial protection against damage to homes and personal liability

Flood Insurance

Covers damage to homes and personal belongings due to flooding

Windstorm Insurance

Provides coverage for damage to homes and personal belongings due to windstorms

Umbrella Insurance

Provides additional liability coverage beyond standard homeowners and auto insurance policies

Business Insurance

Provides coverage for businesses against various risks such as liability, property damage, and business interruption

Workers' Compensation Insurance

Provides coverage for employees who are injured on the job

8. American Coastal Insurance Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for American Coastal Insurance Corporation is medium, as there are some alternative insurance providers in the market, but they are not very close substitutes.

Bargaining Power Of Customers

The bargaining power of customers for American Coastal Insurance Corporation is low, as customers have limited options and are not very price-sensitive.

Bargaining Power Of Suppliers

The bargaining power of suppliers for American Coastal Insurance Corporation is medium, as there are some suppliers of insurance-related services, but they do not have a high level of bargaining power.

Threat Of New Entrants

The threat of new entrants for American Coastal Insurance Corporation is high, as there are low barriers to entry and new entrants can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry for American Coastal Insurance Corporation is high, as there are many competitors in the market and the competition is intense.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.94%
Debt Cost 3.95%
Equity Weight 53.06%
Equity Cost 2.85%
WACC 3.36%
Leverage 88.46%

11. Quality Control: American Coastal Insurance Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Kingstone

A-Score: 6.0/10

Value: 7.7

Growth: 6.4

Quality: 9.0

Yield: 1.0

Momentum: 9.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Root

A-Score: 5.5/10

Value: 6.6

Growth: 8.6

Quality: 7.2

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
American Coastal Insurance

A-Score: 5.3/10

Value: 7.5

Growth: 4.9

Quality: 5.8

Yield: 6.0

Momentum: 3.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
ProAssurance

A-Score: 5.2/10

Value: 6.1

Growth: 2.9

Quality: 7.1

Yield: 0.0

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Hagerty

A-Score: 5.1/10

Value: 3.0

Growth: 8.4

Quality: 6.6

Yield: 0.0

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
NI Holdings

A-Score: 4.0/10

Value: 4.5

Growth: 4.1

Quality: 5.0

Yield: 0.0

Momentum: 2.0

Volatility: 8.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.11$

Current Price

12.11$

Potential

-0.00%

Expected Cash-Flows