American Coastal Insurance (ACIC) AI Stock Analysis

• Market Cap: $548.36M
• Dividend Yield: N/A
• Average Volume (3M): 145.03K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.55
• Revenue Growth: 16.34%
• EPS Growth: -1.26%
• Country: US
• Employees: 65
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.52
• Shares Outstanding: 48,656,204
• 10 Day Avg. Volume: 117,144
• 30 Day Avg. Volume: 145,026
• PEG Ratio: 0.15
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 1.83
• P/FCF Ratio: 8.64
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 1.92
• Enterprise Value/Ebitda: 2.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.49
• Revenue Forecast (FY): $586.25M

• Rating: 70 Outperform
• Price Target: $12.50 ▲(9.46% Upside)
• Action: Upgraded Date: 03/03/26
• Date: Action: Upgraded 03/03/26

ACIC’s score is driven primarily by improving profitability and a very attractive valuation (low P/E and high dividend yield). Technicals are supportive with price above key moving averages. The main offset is financial quality risk from highly volatile cash flows, plus earnings-call risks tied to softer premium trends and execution/timing uncertainty around growth initiatives.

Positive Factors

Underwriting Profitability

Sustained low combined ratios indicate disciplined underwriting and favorable loss trends, which support recurring underwriting profitability. Persistently sub‑target underlying ratios reduce capital strain from losses and improve the company's ability to fund growth and reinsurance over multiple cycles.

Stronger Liquidity & Capital Base

Material cash and equity gains bolster solvency and provide a durable capital buffer for catastrophe seasons, support reinsurance placements, and fund strategic initiatives. A larger, more liquid balance sheet improves flexibility for deleveraging, program growth, and opportunistic capital returns.

Strategic E&S Expansion & Partnerships

A structured quota‑share and creation of ACES represent a deliberate diversification beyond Florida condos, adding new premium sources and geographic spread. The partnership and capped reinsurance retention transfer catastrophe risk while enabling measured, scalable entry into higher-margin specialty E&S markets.

Negative Factors

Volatile Cash Generation

Sharp year-to-year cash flow swings reduce predictability of internal funding for reinsurance, debt reduction, or buybacks. Negative free cash flow in 2025 constrains capital allocation, increases reliance on external financing or asset sales, and raises refinancing risk around the 2027 debt maturity.

Declining Written Premiums

A near‑term structural soft market and rate declines (notably post‑Florida reforms) have reduced scale. Continued rate pressure limits top‑line growth and the ability to spread fixed costs; prolonged lower writings necessitate stricter risk selection, which may cap future premium expansion and operating leverage.

Execution & Margin Risk from E&S Expansion

Regulatory timing for ACES and the likelihood that E&S combined ratios exceed the core Florida condo book introduce execution and margin dilution risk. If E&S underwriting or approval timelines slip, or new lines prove structurally lossier, diversification could raise volatility and pressure consolidated underwriting margins.

American Coastal Insurance Business Overview & Revenue Model

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.

How the Company Makes Money

American Coastal Insurance generates revenue primarily through the sale of insurance premiums. Customers pay these premiums in exchange for coverage against specific risks, and the company collects these payments upfront. The main revenue stream comes from underwriting insurance policies, where ACIC assesses risk and sets premium rates accordingly. Additionally, the company may earn income from investment activities, where it invests the collected premiums in various financial instruments until claims are made. Strategic partnerships with agents and brokers also contribute to revenue generation by expanding market reach and enhancing customer acquisition. Overall, ACIC's financial performance is influenced by factors such as claims experience, policy renewals, and the overall economic environment in coastal regions.

American Coastal Insurance Financial Statement Overview

Summary

Income statement strength (improving profitability and strong 2024–2025 results) is offset by weak and highly volatile cash generation, including a sharp negative free cash flow turn in 2025. Balance sheet leverage has improved, but historical swings (including prior negative equity) keep overall financial quality in the mid-range.

Income Statement

Profitability has improved meaningfully versus earlier years: the company moved from sizable losses (2020–2022) to strong positive earnings in 2023–2025, with a very solid net margin in 2025 and strong operating profitability. Revenue growth was robust in 2025 versus 2024, indicating an accelerating top-line trajectory. The main weakness is volatility—2022 shows a severe loss and 2023 shows an unusually high net margin (suggesting results may be influenced by non-recurring items), which lowers confidence in the stability of earnings power.

Balance Sheet

Leverage looks manageable in the most recent periods, with debt-to-equity improving from higher levels in 2023 to a more moderate level by 2025, and equity rebuilding compared with the negative equity position seen in 2022. Return on equity is strong in 2024–2025, consistent with improved profitability. Offsetting this, the balance sheet has shown meaningful swings (including negative equity in 2022 and very high ROE in 2023 that may reflect one-time dynamics), which signals higher-than-average balance-sheet volatility and potential sensitivity to underwriting/market cycles.

Cash Flow

Cash generation is the key weak spot: operating cash flow and free cash flow swing sharply year-to-year, including large negative free cash flow in 2025 following strong positive free cash flow in 2024. This level of volatility reduces visibility into the company’s ability to consistently convert profits into cash. While cash flow can be lumpy for insurers due to working-capital/reserve movements, the magnitude of the negative turn in 2025 is a notable risk flag.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	335.44M	296.66M	263.68M	220.78M	228.69M
Gross Profit	289.40M	156.35M	141.56M	43.68M	46.44M
EBITDA	174.15M	122.52M	117.58M	34.48M	10.65M
Net Income	106.84M	75.72M	309.91M	-469.86M	-57.92M
Balance Sheet
Total Assets	834.83M	1.22B	1.06B	2.84B	2.70B
Cash, Cash Equivalents and Short-Term Investments	1.96B	285.04M	334.46M	606.36M	875.63M
Total Debt	155.62M	152.34M	149.46M	150.04M	158.50M
Total Liabilities	517.26M	980.45M	891.62M	3.02B	2.37B
Stockholders Equity	317.56M	235.66M	168.76M	-180.18M	312.41M
Cash Flow
Free Cash Flow	70.87M	243.49M	-136.20M	-176.16M	-300.66M
Operating Cash Flow	71.03M	243.51M	-136.00M	-173.11M	-295.39M
Investing Cash Flow	620.00K	-179.21M	-2.54M	236.84M	251.38M
Financing Cash Flow	-1.08M	-13.84M	26.77M	-25.39M	-12.21M

American Coastal Insurance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACIC, the sentiment is Positive. The current price of 11.42 is above the 20-day moving average (MA) of 11.32, above the 50-day MA of 11.22, and above the 200-day MA of 10.84, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 52.80 is Neutral, neither overbought nor oversold. The STOCH value of 50.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACIC.

American Coastal Insurance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UVE	82 Outperform	$933.51M	5.15	37.99%	2.18%	4.61%	73.40%
UFCS	80 Outperform	$938.70M	6.27	13.50%	1.73%	12.22%	120.73%
HRTG	79 Outperform	$838.07M	4.62	47.28%	―	5.92%	93.02%
ACIC	70 Outperform	$548.36M	5.73	35.67%	―	16.34%	-1.26%
DGICA	69 Neutral	$617.09M	7.74	12.91%	3.51%	0.93%	224.95%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GBLI	67 Neutral	$412.87M	15.90	0.01%	5.01%	-0.04%	-33.45%

American Coastal Insurance Corporate Events

American Coastal Insurance Announces Board Change and New Underwriting Chief

On February 17, 2026, American Coastal Insurance said long‑time director Sherrill W. Hudson informed the company he would not seek re‑election when his term ends at the 2026 annual meeting, though his departure was not due to any disagreement. To fill the expected board vacancy, the insurer has nominated Deirdre A. Brown, a CPA and current director and risk committee chair of its Amcoastal subsidiary, adding deep accounting, audit and regulatory experience to its governance bench.

Also on February 17, 2026, the company appointed Troy Crawford as Chief Underwriting Officer, expanding his remit from leading underwriting at Amcoastal to overseeing underwriting across the entire enterprise. Under a new at‑will employment agreement, Crawford will manage portfolio performance and underwriting strategy at the parent level, a move that signals a tighter integration of commercial underwriting operations and a continued emphasis on disciplined risk selection for stakeholders.

The most recent analyst rating on (ACIC) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on American Coastal Insurance stock, see the ACIC Stock Forecast page.

American Coastal Posts Strong Q4 2025 Earnings Growth

On February 19, 2026, American Coastal Insurance Corporation reported its financial results for the fourth quarter and full year ended December 31, 2025, showing consolidated net income of $26.6 million for the quarter and $106.8 million, or $2.15 per diluted share, for the year. Despite an 18.6% quarterly and 5.4% annual decline in gross premiums written, total revenue grew 9.0% in the quarter and 13.1% for the year, while net premiums earned rose 7.9% and 12.0%, respectively, and income from continuing operations increased 39.9% to $106.8 million, driving a 33.1% jump in book value per share to $6.51 and underscoring strong underwriting results, improved profitability and enhanced shareholder returns through past special dividends.

Core income, a non-GAAP metric adjusting for intangible amortization, discontinued operations and investment gains, climbed to $25.8 million for the quarter and $103.7 million for the year, with core income per diluted share advancing 33.3% to $2.08. Management highlighted that underlying combined ratios outperformed the company’s 65% target, indicating robust underwriting discipline and reinforcing ACIC’s liquidity, capital position and strategic readiness to continue executing on its growth initiatives and long-term value strategy for stakeholders.

The most recent analyst rating on (ACIC) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on American Coastal Insurance stock, see the ACIC Stock Forecast page.

American Coastal Insurance unveils nationwide E&S expansion strategy

In January 2026, American Coastal Insurance Corporation outlined a strategic expansion of its operations beyond Florida’s admitted market by assuming a 6% net quota share of AmRisc’s nationwide excess and surplus (E&S) commercial property portfolio, backed by a catastrophe reinsurance structure that caps its per-occurrence retention at $10.8 million and relies on highly rated reinsurance partners to cover losses up to a 250-year return period. The company is also forming ACES Specialty Insurance Company as an Arizona-domiciled surplus lines carrier, initially targeting commercial property risks in Florida, South Carolina and Texas via program manager Skyway Underwriters, with the goal of building ACES into a leading national specialty E&S property insurer, while maintaining strict underwriting profitability, low net catastrophe retention, and a capital allocation framework that favors opportunistic buybacks and special dividends over regular payouts; for 2026, ACIC is guiding to total revenue of $335–$365 million and pre-tax earnings of $85–$100 million, emphasizing its aim to remain profitable even under multiple full catastrophe retention events.

The most recent analyst rating on (ACIC) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on American Coastal Insurance stock, see the ACIC Stock Forecast page.

American Coastal Insurance Renews Catastrophe Reinsurance Agreements

Effective January 1, 2026, American Coastal Insurance Corporation renewed its all other perils catastrophe excess of loss agreement, securing up to $95.6 million of occurrence limit above a $10 million attachment point for catastrophe events other than named windstorms and earthquakes, at a cost of about $11.4 million. The company also renewed its catastrophe aggregate excess of loss agreement, providing $40 million of aggregate limit (with a $20 million per occurrence cap) after a $40 million annual aggregate deductible is exceeded, at a cost of approximately $4.9 million, a structure that is intended to meaningfully constrain the insurer’s catastrophe losses and stabilize results for the full year ending December 31, 2026.

The most recent analyst rating on (ACIC) stock is a Buy with a $13.50 price target. To see the full list of analyst forecasts on American Coastal Insurance stock, see the ACIC Stock Forecast page.