American Coastal Insurance (ACIC)
NASDAQ:ACIC
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American Coastal Insurance
(NASDAQ:ACIC)
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Rating:63Neutral
Price Target:
$11.50
▲(0.26% Upside)
Action:Reiterated
Date:05/16/26
ACIC scores as a mid-range opportunity: financial performance is improved but still volatile (revenue and cash-flow variability), while the earnings call supports a constructive outlook driven by strong underwriting and stronger reinsurance/capital position. These positives are tempered by weak technical momentum (trading below key moving averages with negative MACD). Valuation is a supportive offset given the low P/E.
Positive Factors
Underwriting Discipline & Stable Margins
Consistently low combined ratios reflect disciplined underwriting and pricing control across catastrophe‑exposed portfolios. Sustained underwriting profitability supports durable earnings, high ROE, and capital build over multiple quarters, lowering reliance on investment income to drive results.
Negative Factors
Revenue and Cash‑Flow Volatility
Large year‑over‑year swings in revenue and FCF reflect sensitivity to premium timing, catastrophe hits and reinsurance placements. Persistent volatility undermines predictability of internally generated capital, complicating reserve planning, capital returns and consistent execution of growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Underwriting Discipline & Stable Margins
Consistently low combined ratios reflect disciplined underwriting and pricing control across catastrophe‑exposed portfolios. Sustained underwriting profitability supports durable earnings, high ROE, and capital build over multiple quarters, lowering reliance on investment income to drive results.
Read all positive factors
American Coastal Insurance (ACIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$530.20M
Dividend YieldN/A
Average Volume (3M)145.03K
Price to Earnings (P/E)7.1
Beta (1Y)0.46
Revenue Growth10.65%
EPS Growth39.18%
CountryUS
Employees65
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 Cap0.83
Enterprise Value/Revenue1.31
Enterprise Value/Gross Profit1.85
Enterprise Value/Ebitda2.70
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.41
Revenue Forecast (FY)$563.11M
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...
How the Company Makes Money
ACIC makes money primarily through (1) underwriting income and (2) investment income. Underwriting income is generated by collecting insurance premiums from policyholders and paying out claims and claim-adjustment expenses, with profitability depe...
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 | 162.65M | 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 | 794.23M | 1.07B | 1.22B | 1.06B | 2.84B | 2.70B |
| Cash, Cash Equivalents and Short-Term Investments | 1.78B | 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 | 462.53M | 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
Negative
11.47
Price Trends
11.34
Negative
11.30
Negative
11.12
Negative
Market Momentum
-0.19
Positive
44.51
Neutral
72.88
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 11.47 is above the 20-day moving average (MA) of 11.21, above the 50-day MA of 11.34, and above the 200-day MA of 11.12, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of 72.88 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.11B | 4.38 | 37.50% | 2.18% | 3.57% | 198.87% | |
78 Outperform | $1.23B | 7.88 | 14.36% | 1.73% | 10.58% | 96.22% | |
74 Outperform | $706.24M | 5.52 | 43.68% | ― | 1.25% | 157.31% | |
71 Outperform | $655.63M | 13.60 | 10.41% | 3.51% | -2.46% | -11.49% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $530.20M | 7.09 | 33.02% | ― | 10.65% | 39.18% | |
55 Neutral | $396.78M | 23.01 | 3.63% | 5.01% | 2.99% | 14.96% |
* Financial Sector Average
ACIC
American Coastal Insurance
10.85
0.64
6.32%
DGICA
Donegal Group
17.56
-1.38
-7.30%
GBLI
Global Indemnity
27.14
-1.59
-5.54%
UFCS
United Fire Group
48.13
20.90
76.74%
UVE
Universal Insurance Holdings
39.70
14.03
54.67%
HRTG
Heritage Insurance Holdings
23.45
0.03
0.13%
American Coastal Insurance Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
American Coastal Insurance Announces Board Change and New Underwriting Chief
Positive
Feb 20, 2026
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 disag...
Business Operations and StrategyFinancial Disclosures
American Coastal Posts Strong Q4 2025 Earnings Growth
Positive
Feb 19, 2026
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...
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.