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American Coastal Insurance
(NASDAQ:ACIC)
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Rating:61Neutral
Price Target:
$11.00
▲(1.29% Upside)
Action:Reiterated
Date:08/10/26
The score is primarily held back by financial volatility and inconsistent cash flow (including negative TTM cash generation), alongside a technically weak price trend below major moving averages. These risks are partly offset by a low P/E valuation and an earnings call that reaffirmed earnings guidance while outlining risk-reduction actions (reinsurance changes, buybacks, and planned debt reduction), despite trimmed revenue guidance and ongoing soft-market pressures.
Positive Factors
Underwriting Strength & ROE
Consistently strong underlying underwriting metrics and a high return on equity indicate disciplined risk selection and pricing. Durable underwriting outperformance supports recurring profitability, helps rebuild capital through cycles, and reduces reliance on investment gains for earnings.
Negative Factors
Inconsistent Cash Generation
Volatile and recently negative trailing cash flow undermines an insurer's capacity to fund claims, buy reinsurance, and execute debt reduction consistently. Persistent cash conversion weakness raises risk that earnings won't reliably translate to sustainable free cash for capital needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Underwriting Strength & ROE
Consistently strong underlying underwriting metrics and a high return on equity indicate disciplined risk selection and pricing. Durable underwriting outperformance supports recurring profitability, helps rebuild capital through cycles, and reduces reliance on investment gains for earnings.
Read all positive factors
American Coastal Insurance (ACIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$455.56M
Dividend YieldN/A
Average Volume (3M)145.03K
Price to Earnings (P/E)4.6
Beta (1Y)0.51
Revenue Growth3.29%
EPS Growth21.74%
CountryUS
Employees68
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)2.08
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<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$13.00Price Target Upside19.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.91
Revenue Forecast (FY)$516.93M
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:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: the company remains profitable with healthy underlying underwriting metrics (68.7% underlying combined ratio), strong quarterly net income ($21.9M) and a high ROE (26.6%), improved book value and an active capital return program. However, soft market dynamics are pressuring premiums (GWP down ~5%), reported combined ratio widened to 74.3% (up 13.7 points), core income declined, revenue guidance was trimmed, and certain strategic growth initiatives (E&S cadence and multifamily) are behind expectations or constrained by rating/fronter issues. Management has taken proactive steps (reinsurance retention buy-down, buybacks, planned debt reduction) to preserve earnings quality and capital returns, but near-term top-line and margin pressures persist.Positive Updates
Positive Net Income and Core Earnings
Reported net income of $21.9 million for Q2 2026; core income of $16.5 million, demonstrating ongoing profitability despite a soft market (core income decreased $10.3 million year-over-year).
Negative Updates
Decline in Gross Written Premiums
Gross written premiums decreased roughly 5.0%–5.3% year-over-year as the pricing environment softened and average premium declined.
Read all updates
Q2-2026 Updates
Positive
Negative
Positive Net Income and Core Earnings
Reported net income of $21.9 million for Q2 2026; core income of $16.5 million, demonstrating ongoing profitability despite a soft market (core income decreased $10.3 million year-over-year).
Read all positive updates
Company Guidance
Guidance for the year was largely unchanged on earnings but narrowed on top line: management reaffirmed full‑year earnings before tax of $85 million to $100 million (inclusive of expected net annual catastrophe losses) while lowering total revenue guidance to $300 million–$320 million; they also emphasized the company should remain profitable even with three full hurricane retentions, though actual EBT could be higher or lower depending on catastrophe frequency/severity. To reduce hurricane risk they bought down the first‑event retention from $49.0 million to $23.5 million (effective Aug. 1) at a cost of about $8.4 million (≈$4.0 million ceded Aug–Dec, remainder ceded Jan–May), with second/third event retentions unchanged at $25.0 million and $2.0 million; management expects rate/deductible/ acquisition cost pressure into 2027 partially offset by lower reinsurance costs. Quarterly and balance‑sheet metrics supporting the outlook included Q2 net income $21.9 million and core income $16.5 million, a ROE of 26.6%, reported combined ratio 74.3% (underlying combined ratio 68.7% vs. 62.2% prior year), gross written premiums down ~5–5.3% YoY, policies and TIV up ~3–4% YoY, Q2 account retention ~85%, cash & investments +$2.3 million, shareholders’ equity $340.8 million (↑$23.2 million, book value $7.21, +10.7% YTD), Q2 buybacks nearly 1.4 million shares (YTD >1.8 million) with buyback authority increased to ~$30.6 million, and a plan to reduce long‑term debt from $150 million to $75 million targeting ≤20% debt‑to‑capital.American Coastal Insurance Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 330.38M | 335.44M | 296.66M | 263.68M | 220.78M | 228.69M |
| Gross Profit | 231.44M | 289.40M | 156.35M | 141.56M | 43.68M | 46.44M |
| EBITDA | 153.05M | 174.15M | 122.52M | 117.58M | 34.48M | 10.65M |
| Net Income | 100.20M | 106.84M | 75.72M | 309.91M | -469.86M | -57.92M |
Balance Sheet | ||||||
| Total Assets | 1.24B | 1.07B | 1.22B | 1.06B | 2.84B | 2.70B |
| Cash, Cash Equivalents and Short-Term Investments | 328.04M | 311.81M | 285.04M | 334.46M | 606.36M | 875.63M |
| Total Debt | 152.54M | 152.49M | 152.34M | 149.46M | 150.04M | 158.50M |
| Total Liabilities | 903.01M | 755.17M | 980.45M | 891.62M | 3.02B | 2.37B |
| Stockholders Equity | 340.79M | 317.56M | 235.66M | 168.76M | -180.18M | 312.41M |
Cash Flow | ||||||
| Free Cash Flow | -31.04M | 70.87M | 243.49M | -136.20M | -176.16M | -300.66M |
| Operating Cash Flow | -30.61M | 71.03M | 243.51M | -136.00M | -173.11M | -295.39M |
| Investing Cash Flow | -1.49M | 620.00K | -179.21M | -2.54M | 236.84M | 251.38M |
| Financing Cash Flow | -57.90M | -1.08M | -13.84M | 26.77M | -25.39M | -12.21M |
American Coastal Insurance Technical Analysis
Negative
10.86
Price Trends
10.48
Negative
10.78
Negative
11.06
Negative
Market Momentum
-0.36
Positive
37.00
Neutral
24.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACIC, the sentiment is Negative. The current price of 10.86 is above the 20-day moving average (MA) of 10.03, above the 50-day MA of 10.48, and below the 200-day MA of 11.06, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 37.00 is Neutral, neither overbought nor oversold. The STOCH value of 24.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
87 Outperform | $1.02B | 4.89 | 42.41% | ― | 1.45% | 102.69% | |
81 Outperform | $1.20B | 5.53 | 38.78% | 1.85% | 3.96% | 234.26% | |
81 Outperform | $2.31B | 7.22 | 30.79% | 0.89% | 22.83% | 86.58% | |
81 Outperform | $516.09M | 5.92 | 25.95% | ― | ― | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $455.56M | 4.57 | 30.43% | ― | 3.29% | 21.74% | |
59 Neutral | $25.47M | -0.62 | -74.55% | ― | -48.50% | -159.93% |
* Financial Sector Average
ACIC
American Coastal Insurance
9.51
-0.55
-5.50%
UVE
Universal Insurance Holdings
43.76
19.71
81.92%
HRTG
Heritage Insurance Holdings
34.42
12.19
54.84%
PRHI
Presurance Holdings
6.33
0.76
13.75%
HCI
HCI Group
187.08
24.87
15.33%
AII
American Integrity Insurance Group, Inc.
26.63
8.19
44.40%
American Coastal Insurance Corporate Events
Business Operations and StrategyFinancial Disclosures
American Coastal Insurance Reports Weaker Q2 2026 Results
Negative
Aug 5, 2026
American Coastal Insurance Corporation reported second-quarter 2026 results on August 5, 2026, showing year-over-year declines in gross premiums written, total revenue and consolidated net income, with net income falling 17.2% to $21.9 million and...
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...
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.