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American Coastal Insurance
(NASDAQ:ACIC)
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Rating:67Neutral
Price Target:
$12.50
▲(8.98% Upside)
Action:Reiterated
Date:05/30/26
ACIC scores well on valuation (very low P/E) and maintains constructive fundamentals supported by strong recent underwriting profitability and favorable reinsurance positioning. The overall score is held back by financial volatility and recent revenue/cash-flow weakness, while technical signals indicate the stock is in a weaker momentum phase below major moving averages.
Positive Factors
Underwriting Quality
Consistently low combined ratios reflect disciplined underwriting and risk selection that drive durable margin advantages in property insurance. Over several quarters this reduces earnings volatility, supports strong ROE, and enables capital accumulation to fund growth or absorb catastrophe losses without relying on external financing.
Negative Factors
Premium & Revenue Contraction
A sharp drop in written premiums narrows the revenue base and limits organic growth runway; with the business reliant on periodic high‑season premium flows, earnings become more dependent on pricing, retention, and the concentrated Q2 production quarter, increasing execution risk over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Underwriting Quality
Consistently low combined ratios reflect disciplined underwriting and risk selection that drive durable margin advantages in property insurance. Over several quarters this reduces earnings volatility, supports strong ROE, and enables capital accumulation to fund growth or absorb catastrophe losses without relying on external financing.
Read all positive factors
American Coastal Insurance (ACIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$559.28M
Dividend YieldN/A
Average Volume (3M)145.03K
Price to Earnings (P/E)5.3
Beta (1Y)0.44
Revenue Growth10.65%
EPS Growth39.18%
CountryUS
Employees68
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)2.17
Shares Outstanding48,464,046
10 Day Avg. Volume117,144
30 Day Avg. Volume145,026
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)1.93
Price to Sales (P/S)1.83
P/FCF Ratio8.64
Enterprise Value/Market Cap-0.52
Enterprise Value/Revenue-0.87
Enterprise Value/Gross Profit-1.22
Enterprise Value/Ebitda-1.77
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.13
Revenue Forecast (FY)$563.11M
American Coastal Insurance Business Overview & Revenue Model
Company Description
American Coastal Insurance Corporation, through its subsidiaries, primarily engages in the commercial and personal property and casualty insurance business in the United States. The company provides structure, content, and liability coverage for s...
How the Company Makes Money
ACIC primarily makes money through: (1) Earned premiums: it charges policyholders insurance premiums for property coverage; premium revenue is recognized (earned) over the policy term as coverage is provided. Profitability depends on pricing adequ...
American Coastal Insurance Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call emphasized strong underwriting discipline, solid profitability (net income $19.3M) and a successful reinsurance renewal that materially improves catastrophe protection and reduces risk-adjusted reinsurance costs. Management highlighted stable margins (combined ratio 66%, underlying 68.3%), improved book value and sizable excess capital ($150M–$200M). Key initiatives — E&S expansion, Skyway fronting and AI-driven efficiency — offer growth and margin-leverage potential. Offsetting these positives are front-end rate declines that reduced net premium earned (core income down $1.4M), competitive pressures in Florida, dependence on second-quarter premium production for full-year guidance, modest reductions in other income (-$0.9M) and some remaining uncertainty around final reinsurance retentions and capital-deployment timing. On balance, the positives (strong underwriting, enhanced reinsurance, solid capital and targeted growth initiatives) outweigh the headwinds, supporting a constructive outlook.Positive Updates
Strong Quarterly Profitability
Net income of $19.3 million and core income of $19.3 million; pretax earnings essentially flat year-over-year with net income from continuing operations down only $0.4 million, demonstrating resilient profitability despite market softness.
Negative Updates
Decline in Net Premiums and Core Income Pressures
Management cited decreased net premium earned that drove a $1.4 million year-over-year reduction in core income; average account rate decreases are compressing top-line comparability versus prior periods.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly Profitability
Net income of $19.3 million and core income of $19.3 million; pretax earnings essentially flat year-over-year with net income from continuing operations down only $0.4 million, demonstrating resilient profitability despite market softness.
Read all positive updates
Company Guidance
Management reiterated that full‑year 2026 guidance remains unchanged for now (may be revisited after Q2, the company's strongest premium quarter) and highlighted Q1 results of $19.3M net income and core income (down $1.4M YoY), roughly $65M of net earned premium, a combined ratio of 66% (up 1 point) and a non‑GAAP underlying combined ratio of 68.3% (68.2% prior); pretax earnings were essentially flat, other income declined $0.9M and net income from continuing operations fell $0.4M. On liquidity and capital, cash and investments were $599.4M (down 7.5% from year‑end after a $36.6M special dividend of $0.75/share), stockholders’ equity was $331.7M (up 4.5%), book value per share $6.86 (up 5.4%), and management estimates $150–$200M of excess capital while G&A runs about $10–11M per quarter. On reinsurance and growth, the June 1 core catastrophe program is effectively complete with risk‑adjusted cost decreases, the exhaustion point is now >$1.6B (expected to exceed a 250‑year return period per Verisk with demand surge and a 10% LAE load), lower layers moved to all‑perils (about $4M saving by nonrenewing excess‑of‑$50M AOP layers from an ~ $11M program), quota‑share cession remains ~15%, retention options will be finalized soon, and E&S activity includes Q1 E&S written of $6.2M with an expected ~ $70M of AmRisc‑sourced E&S written in 2026 (about half to be earned this year).American Coastal Insurance Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 334.25M | 335.44M | 296.66M | 263.68M | 220.78M | 228.69M |
| Gross Profit | 237.95M | 289.40M | 156.35M | 141.56M | 43.68M | 46.44M |
| EBITDA | 163.52M | 174.15M | 122.52M | 117.58M | 34.48M | 10.65M |
| Net Income | 104.74M | 106.84M | 75.72M | 309.91M | -469.86M | -57.92M |
Balance Sheet | ||||||
| Total Assets | 997.01M | 1.07B | 1.22B | 1.06B | 2.84B | 2.70B |
| Cash, Cash Equivalents and Short-Term Investments | 229.93M | 311.81M | 285.04M | 334.46M | 606.36M | 875.63M |
| Total Debt | 152.51M | 152.49M | 152.34M | 149.46M | 150.04M | 158.50M |
| Total Liabilities | 665.31M | 755.17M | 980.45M | 891.62M | 3.02B | 2.37B |
| Stockholders Equity | 331.70M | 317.56M | 235.66M | 168.76M | -180.18M | 312.41M |
Cash Flow | ||||||
| Free Cash Flow | 38.65M | 70.87M | 243.49M | -136.20M | -176.16M | -300.66M |
| Operating Cash Flow | 38.85M | 71.03M | 243.51M | -136.00M | -173.11M | -295.39M |
| Investing Cash Flow | -11.18M | 620.00K | -179.21M | -2.54M | 236.84M | 251.38M |
| Financing Cash Flow | -42.96M | -1.08M | -13.84M | 26.77M | -25.39M | -12.21M |
American Coastal Insurance Technical Analysis
Positive
11.47
Price Trends
10.91
Positive
11.13
Positive
11.18
Positive
Market Momentum
0.16
Negative
67.86
Neutral
89.73
Negative
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 11.47 is above the 20-day moving average (MA) of 10.69, above the 50-day MA of 10.91, and above the 200-day MA of 11.18, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 67.86 is Neutral, neither overbought nor oversold. The STOCH value of 89.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACIC.
American Coastal Insurance Risk Analysis
American Coastal Insurance disclosed 29 risk factors in its most recent earnings report. American Coastal Insurance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American Coastal Insurance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.38B | 10.64 | 14.36% | 1.73% | 10.58% | 96.22% | |
77 Outperform | $1.20B | 6.13 | 37.50% | 2.18% | 3.57% | 198.87% | |
75 Outperform | $823.09M | 4.15 | 43.68% | ― | 1.25% | 157.31% | |
71 Outperform | $732.29M | 10.54 | 10.41% | 3.51% | -2.46% | -11.49% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $559.28M | 5.32 | 33.02% | ― | 10.65% | 39.18% | |
55 Neutral | $365.96M | 10.80 | 0.02% | 5.01% | 2.99% | 14.96% |
* Financial Sector Average
ACIC
American Coastal Insurance
11.54
1.25
12.15%
DGICA
Donegal Group
19.29
1.04
5.68%
GBLI
Global Indemnity
25.05
-3.49
-12.22%
UFCS
United Fire Group
53.93
26.84
99.11%
UVE
Universal Insurance Holdings
43.01
18.10
72.63%
HRTG
Heritage Insurance Holdings
27.12
3.96
17.10%
American Coastal Insurance Corporate Events
Executive/Board ChangesShareholder Meetings
American Coastal Shareholders Back Board and Auditor Slate
Positive
May 29, 2026
At American Coastal Insurance’s 2026 Annual Meeting of Stockholders, held with 42,734,499 of 48,342,811 eligible shares represented as of March 27, 2026, investors approved all items on the agenda. Shareholders elected five Class B directors...
Business Operations and Strategy
American Coastal Expands 2026 Catastrophe Reinsurance Protection
Positive
May 15, 2026
Effective June 1, 2026, American Coastal Insurance Corporation renewed and expanded its core catastrophe reinsurance program, increasing its aggregate occurrence-based limit to about $1.918 billion for the 2026/27 season, up 14.4% from the prior y...
Business Operations and StrategyFinancial Disclosures
American Coastal Reports Q1 2026 Results, Profitability Strong
Neutral
May 5, 2026
American Coastal Insurance Corporation reported first-quarter 2026 results on May 5, 2026, showing modestly lower premiums and earnings but maintaining strong profitability metrics. Gross premiums written fell 24.5% year over year to $149.4 millio...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.