Florida domiciled American Coastal Insurance Corporation (ACIC), a property and casualty insurance holding company, reported a combined ratio of 66% for the first quarter of 2026, remaining mostly flat from 65% in Q1’25.
The insurer’s total gross written premium dipped by $48.5 million, or 24.5% to $149.4 million for Q1’26, from $197.9 million in Q1’25. Meanwhile, gross premiums earned decreased by $21 million, or 13% to $141.1 million in Q1’26, down from $162.1 million in Q1’25.
ACIC attributed these changes to increased competition and a 24% year-over-year decrease in its net pricing as the market softens.
Meanwhile, for this quarter, ceded premiums earned decreased by $18.3 million, or 19.5% to $75.5 million, from $93.8 million in Q1’25.
The insurer also saw a decrease of 1.4% in this quarter’s total revenues to $71 million from $72 million in Q1’25.
Additionally, losses and LAE decreased by $1.2 million, or 10.5% to $10.2 million for Q1’26, from $11.4 million in Q1’25.
Meanwhile, policy acquisition costs decreased by $1.1 million, or 4.7% to $22.4 million compared to $23.5 million in Q1’25, primarily due to decreased external management fees due to lower gross premiums.
This was partially offset by a decrease in ceding commission income driven by ACIC’s quota share reinsurance coverage decreasing from 20% to 15%, effective June 1st, 2025.
General and administrative expenses increased by $1.2 million, or 12.6% to $10.7 million for the first quarter of 2026, from $9.5 million for Q1’25. For this quarter, ACIC reported a decrease in net income of 9.8% to $19.2 million, compared to $21.3 million in Q1’25.
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, American Coastal Insurance Corporation, commented, “I’m pleased to report another profitable quarter for American Coastal. Our 66.0% combined ratio and 68.3% underlying combined ratio remain in line with our targets. More importantly, these ratios were consistent year-over-year, leading us to consistent earnings throughout the market cycle.
“While the commercial market continues through a soft cycle, periods like these create opportunities for carriers with discipline, patience, and a long-term view of value creation. We are being deliberate about where and how we deploy capital through selective partnerships, targeted classes of commercial property business, and leaning into AI in ways that will strengthen our competitive position without compromising underwriting standards. Our focus remains on building value through specialisation, talent, and prudent risk selection so that American Coastal can successfully navigate a very dynamic marketplace.”
