American Coastal Insurance Corporation (ACIC), a property and casualty insurance holding company, reported a net income of $26.6 million for the fourth quarter of 2025, representing a 437% increase from $4.9 million in the same period a year earlier.
The company attributed the increase to lower losses and loss adjustment expenses (LAE) compared with Q4’24, when Hurricane Milton made landfall. In Q4’24, ACIC recorded a net loss attributable to discontinued operations of $922,000, whereas it had no discontinued operations in Q4’25.
In Q4’24, ACIC’s gross written premiums decreased 18.6% to $114.5 million from $140.7 million in Q4’24.
Gross premiums earned stood at $157.9 million, a 3% decline from $162.7 million, while net premiums earned totalled $79.3 million, marking an 8% increase from $73.5 million.
For the quarter, total revenue rose 9% to $86.4 million from $79.3 million.
The company’s combined ratio improved to 58.6% from 91.9%, comprising a loss ratio of 12.5% versus 40.5% a year earlier and an expense ratio of 46.1% versus 51.4%.
Losses and LAE decreased 66.8% to $9.9 million from $29.8 million.
For full year 2025, net income was $106.8 million, up 41.4% from $75.7 million in 2024, driven by increased gross premiums earned and lower ceded premiums earned, resulting in an overall rise in revenues.
Total gross written premiums decreased 5.4% to $612.5 million from $647.8 million. Gross premiums earned increased 1.5% to $648.3 million from $638.6 million, while net premiums earned rose 12% to $306.9 million from $274 million.
Total revenue increased 13.1% to $335.4 million from $296.7 million.
The 2025 combined ratio was 60.1% compared with 67.5%, an improvement of 7.4 percentage points, with a loss ratio of 15% versus 25.3% and an expense ratio of 45.1% versus 42.2%.
Losses and LAE decreased by 33.6% to $46 million from $69.3 million.
ACIC also recently renewed its all other perils catastrophe excess of loss agreement for 2026, providing up to $95.6 million of occurrence limit in excess of the $10 million attachment point, limiting losses from catastrophe events other than named windstorms and earthquakes.
B. Bradford Martz, President & Chief Executive Officer of ACIC, said, “We’re proud to have finished the year with earnings of $26.6 million for the quarter and earnings of $106.8 million, or $2.15 per share for the full year, exceeding our 2025 guidance. Net premiums earned were in line with our 2025 guidance, contributing to revenue growth of 13.1% year-over-year. Our underwriting results remain strong, with both our quarterly and full year underlying combined ratio outperforming our 65% target. American Coastal continues to strengthen its liquidity position and grow its book value meaningfully, while rewarding shareholders with special dividends each of the last two years. The Company remains strategically positioned to deliver long-term value creation and execute on our growth initiatives moving forward.”
