American Coastal Insurance Corporation (ACIC), a property and casualty insurance holding company, reported an underlying combined ratio of 68.7% in the second quarter of 2026, compared with 62.2% in the same period a year earlier.
The Q2’26 combined ratio comprised a loss ratio of 27.0%, up from 19.8% in Q2’25, and an expense ratio of 47.3%, compared with 40.8%.
During the quarter, losses and LAE increased 21.3% to $18.8 million from $15.5 million.
Excluding catastrophe losses and reserve development, the company’s gross underlying loss and LAE ratio would have been 10.8%, an increase of 0.6 points from 10.2%.
Gross premiums written declined 5.3% to $216.3 million from $228.3 million. Gross premiums earned were down 16.2% to $138.7 million from $165.5 million, while net premiums earned fell 11.1% to $69.7 million from $78.4 million.
ACIC’s total revenues declined 4.5% to $82.6 million from $86.5 million.
Net income stood at $21.9 million, representing a 17.2% decrease from $26.4 million in the prior year quarter, reflecting lower net premiums earned driven by a decline in gross premiums earned.
Brad Martz, President & Chief Executive Officer at ACIC, said, “Our second quarter reflects the discipline we’ve committed to at every stage of the market cycle. As Florida pricing comes off a generational peak, we remain focused on underwriting profitability rather than chasing new business at inadequate rates. That brought core income during the quarter to $16.5 million while still delivering a 68.7% underlying combined ratio and a 20% core return on equity, both among the best in the industry.
“What matters most is that American Coastal got stronger. Book value per share grew more than 20% over the past year to $7.21, Kroll upgraded our rating during the quarter, and our June 1 reinsurance renewal secured broader protection at a lower cost that mitigates much of the impact of rate change on net premiums earned. We built the number one commercial-residential franchise in the peak zone for hurricane risk in the world, and our E&S growth platform is how we intend to take that same underwriting discipline into other classes of commercial property as well as new geographies. With E&S already adding $28.7 million of premium year to date and a track record of profitability every year since 2007, we’re confident we can keep compounding value and extend our business to new markets with sustainable competitive advantages.”
