Florida-domiciled American Coastal Insurance Corporation (ACIC), a property and casualty insurance holding company, reported a rise of 3.2% in total gross written premium (GWP) for the third quarter of 2026 to $74.1 million, compared to $71.8 million in Q3’25.
GWP for the first nine months of 2026 dipped by 11.7% to $439.8 million, compared to $498 million in 9M’25.
The insurer’s gross premiums earned (GPE) decreased by $24.3 million, or 14.9%, to $138.5 million for Q3’26 from $162.8 million in Q3’25, driven in part by a 25.6% year-over-year decrease in net pricing as the market continued to soften. For 9M’26, GPE was down 14.7% to $418 million, compared to $490 million for 9M’25.
For Q3’26, ceded premiums earned decreased $8.9 million, or 10.9%, to $73 million from $81.9 million in Q3’25, due to softening market conditions, while for 9M’26 it dipped to $217 million from $262 million in 9M’25.
The insurer reported a Q3’26 combined ratio of 64.7%, rising from 56.9% in Q3’25. The CoR for 9M’26 rose to 68.5% from 60.6% in 9M’25.
However, the insurer’s losses and LAE decreased by $1.2 million, or 13%, to $8 million for Q3’26, from $9.2 million in Q3’25. It should be noted that loss and LAE expense as a percentage of net earned premiums increased 0.8 points to 12.2% for the quarter, compared to 11.4% in Q3’25.
B. Bradford Martz, President & Chief Executive Officer, American Coastal, commented, “Our third quarter results reflect the strength of our disciplined underwriting in a softening market. With our net pricing down more than 25% year over year, American Coastal delivered solid results against a very strong prior-year quarter, including net income of $19.4 million, a 64.7% combined ratio and a 24.1% core return on equity.
“Just as important, our underlying combined ratio was 68.4% for the quarter, in line with the first two quarters of the year, which tells us the quality of our portfolio has not changed even as rates have come down. We also returned to year-over-year growth in gross premiums written for the first time since early 2025.”
He continued, “We continue to generate strong, profitable results while using this part of the cycle to position American Coastal to benefit meaningfully from the next hard market. Book value per share reached $7.52, up 15.5% since year-end. During the quarter, we put our AmRisc partnership on a permanent footing, and our participation in AmRisc’s nationwide E&S commercial property portfolio has added $37.3 million of premium so far this year.
“We also received our certificate of authority for ACES Specialty and expect to begin writing E&S commercial property through Skyway in Florida, Texas and South Carolina in the coming months. With a strong balance sheet and new avenues for growth, we believe American Coastal is well positioned to compound significant value for shareholders over the long term.”
