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American Coastal Insurance (ACIC)
NASDAQ:ACIC
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American Coastal Insurance
(NASDAQ:ACIC)
Rating:63Neutral
Price Target:
$11.00
▲(2.71% Upside)
American Coastal Insurance (ACIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$492.24M
Dividend YieldN/A
Average Volume (3M)174.86K
Price to Earnings (P/E)6.5
Beta (1Y)0.55
Revenue Growth12.19%
EPS Growth5.12%
CountryUS
Employees65
SectorFinancial
Sector Strength67
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.54
Shares Outstanding48,353,413
10 Day Avg. Volume163,706
30 Day Avg. Volume174,858
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)2.73
Price to Sales (P/S)2.17
P/FCF Ratio2.64
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue2.33
Enterprise Value/Gross Profit-702.98
Enterprise Value/Ebitda9.09
Forecast
1Y Price Target
$15.00Price Target Upside40.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
American Coastal Insurance Business Overview & Revenue Model
Company DescriptionAmerican 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 MoneyAmerican Coastal Insurance (ACIC) generates revenue primarily through the sale of insurance policies. The company collects premiums from its customers in exchange for providing coverage against specific risks. These premiums constitute the primary revenue stream for ACIC. The company may also invest the premiums it collects into various financial instruments, potentially generating additional income from investment returns. Additionally, ACIC may engage in strategic partnerships with reinsurance firms to mitigate its own risk exposure, allowing it to maintain financial stability while expanding its customer base. Factors such as climate change and regulatory environments can influence the company's earnings, as they impact both the demand for insurance products and the overall risk profile of the areas covered by ACIC policies.
American Coastal Insurance Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: 5.21%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant revenue and earnings growth, improved financial metrics, and a credit rating upgrade. However, there were challenges related to increased operating costs and limited growth potential in the upcoming quarter.Q2-2025 Updates
Positive Updates
Significant Revenue and Earnings Growth
American Coastal Insurance Corporation reported a 26% year-over-year increase in revenue and a 51% year-over-year increase in pretax earnings, with a core return on equity of approximately 42%.
Improved Financial Metrics
Net income reached $26.4 million, with core income increasing by $7.2 million year-over-year. The company's combined ratio decreased to 60.6%, below the stated target of 65%.
Stockholder Equity and Liquidity Enhancements
Stockholders' equity increased 24% since year-end to $292.3 million, with cash and investments growing 34.3% since year-end to $726.2 million, reflecting a strong liquidity position.
Credit Rating Upgrade
Kroll Bond Rating Agency upgraded American Coastal Insurance Corporation to BBB minus, improving the outlook from Stable to Positive and reducing the interest rate on senior notes by 100 basis points.
Negative Updates
Increased Operating Costs
Operating costs increased by $6.2 million, driven by a significant 74.8% increase in policy acquisition costs, partially offset by a decrease in general and administrative expenses.
Limited Growth in Third Quarter
Due to a potential adjustment in ceded premiums based on actual modeled average annual loss, growth in adding new exposures is expected to be limited during the third quarter.
Company Guidance
During the second quarter earnings call, American Coastal Insurance Corporation reported significant financial growth and favorable market conditions. The company achieved a 26% year-over-year revenue increase, a 51% rise in pretax earnings, and a core return on equity of approximately 42%. Total insured value grew by 18% to $69.8 billion as of June 30, while policies in-force increased by about 10% since year-end. The company also completed its core catastrophe reinsurance program renewal, resulting in a 12.4% decrease in risk-adjusted costs. Net income for the quarter was $26.4 million, with core income reaching $26.8 million, driven by a $15.1 million increase in net premiums earned. Operating costs rose by $6.2 million, primarily due to a 74.8% increase in policy acquisition costs, which were partly offset by a 34.5% decrease in general and administrative expenses. The combined ratio decreased to 60.6%, below the target of 65%, and the non-GAAP underlying combined ratio was 62.2%. Cash and investments grew by 34.3% to $726.2 million, and stockholders' equity increased by 24% to $292.3 million, with book value per share rising by 22.7% to $6. The company also announced a BBB minus rating upgrade by the Kroll Bond Rating Agency, reflecting a positive outlook and a reduction in the interest rate on senior notes by 100 basis points.American Coastal Insurance Financial Statement Overview
Summary
American Coastal Insurance shows a recovery trajectory with improving profitability and cash flow. Despite historical volatility, the company demonstrates potential for stabilization. The balance sheet indicates moderate leverage, but declining equity ratios warrant caution.Income Statement
American Coastal Insurance has shown a volatile revenue trend with a significant decline from 2020 to 2022, followed by a recovery in 2023 and 2024. The gross profit margin remains strong at 100%, but the net profit margin has been inconsistent, with a notable improvement in 2024. EBIT and EBITDA margins have fluctuated, indicating operational challenges.55
Neutral
Balance Sheet
The company maintains a moderate debt-to-equity ratio, reflecting a balanced approach to leverage. However, the equity ratio has been declining, suggesting increased liabilities relative to assets. Return on equity has improved recently, but historical performance shows volatility, indicating potential risks in financial stability.60
Neutral
Cash Flow
Cash flow from operations has improved significantly in 2024, turning positive after negative figures in previous years. Free cash flow has also shown a positive trend, enhancing liquidity. However, the operating cash flow to net income ratio indicates variability, reflecting potential cash management challenges.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 302.26M | 296.66M | 286.54M | 455.42M | 634.53M | 846.66M |
| Gross Profit | -1.00M | 156.35M | 286.54M | 455.42M | 634.53M | 846.66M |
| EBITDA | 77.48M | 113.66M | 107.69M | 1.95M | 10.32M | -111.81M |
| Net Income | -69.95M | 75.72M | 309.91M | -468.00M | -57.92M | -131.31K |
Balance Sheet | ||||||
| Total Assets | 1.16B | 1.22B | 1.06B | 2.84B | 2.70B | 2.85B |
| Cash, Cash Equivalents and Short-Term Investments | 332.77M | 285.04M | 153.76M | 606.36M | 875.63M | 1.18B |
| Total Debt | 152.41M | 152.34M | 149.46M | 154.16M | 158.50M | 160.35M |
| Total Liabilities | 898.77M | 980.45M | 891.62M | 3.02B | 2.37B | 2.43B |
| Stockholders Equity | 260.88M | 235.66M | 168.76M | -180.18M | 312.41M | 395.75M |
Cash Flow | ||||||
| Free Cash Flow | 145.35M | 243.49M | -136.20M | -176.16M | -300.66M | -21.32M |
| Operating Cash Flow | 145.47M | 243.51M | -136.00M | -173.11M | -295.39M | -10.47M |
| Investing Cash Flow | -181.51M | -179.21M | -2.54M | 236.84M | 251.38M | 36.57M |
| Financing Cash Flow | 233.01M | -13.84M | 26.77M | -25.39M | -12.21M | -11.65M |
American Coastal Insurance Technical Analysis
Neutral
10.71
Price Trends
10.73
Negative
11.02
Negative
11.71
Negative
Market Momentum
-0.13
Positive
53.01
Neutral
45.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACIC, the sentiment is Neutral. The current price of 10.71 is above the 20-day moving average (MA) of 10.59, below the 50-day MA of 10.73, and below the 200-day MA of 11.71, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 45.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ACIC.
American Coastal Insurance Risk Analysis
American Coastal Insurance disclosed 30 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
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $730.95M | 8.17 | 11.68% | 2.45% | 14.28% | 148.61% | |
76 Outperform | $589.49M | 5.96 | 33.49% | ― | 9.35% | 77.04% | |
71 Outperform | $598.14M | 7.14 | 15.20% | 4.21% | 3.40% | 978.24% | |
70 Neutral | $665.77M | 10.30 | 15.60% | 3.30% | 5.64% | -17.95% | |
67 Neutral | $17.02B | 11.60 | 9.79% | 3.95% | 10.61% | 2.06% | |
65 Neutral | $428.24M | 15.14 | 4.13% | 5.00% | -3.71% | -21.68% | |
63 Neutral | $492.24M | 6.49 | 31.54% | ― | 12.19% | 5.12% |
* Financial Sector Average
Performance Comparison
ACIC
American Coastal Insurance
10.71
-0.34
-3.08%
DGICA
Donegal Group
16.86
3.23
23.70%
GBLI
Global Indemnity
28.00
-1.97
-6.57%
UFCS
United Fire Group
29.04
10.57
57.23%
UVE
Universal Insurance Holdings
23.30
4.87
26.42%
HRTG
Heritage Insurance Holdings
20.66
10.33
100.00%
American Coastal Insurance Corporate Events
Business Operations and StrategyFinancial Disclosures
American Coastal Insurance Reports Strong Q2 2025 Results
Positive
Aug 6, 2025
American Coastal Insurance Corporation reported its financial results for the second quarter ended June 30, 2025, showing significant year-over-year growth in total revenue and underwriting profit. The company continues to gain market share in the commercial residential segment, which underscores its competitive strength in the industry.
The most recent analyst rating on (ACIC) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on American Coastal Insurance stock, see the ACIC Stock Forecast page.
Business Operations and Strategy
American Coastal Insurance Renews Reinsurance Program
Positive
May 29, 2025
On June 1, 2025, American Coastal Insurance Corp. renewed its core catastrophe reinsurance program, increasing its occurrence-based limit by 3.9% to approximately $1.676 billion for the 2025/26 period. This renewal enhances ACIC’s coverage, ensuring sufficient protection against significant events, including a 1-in-201-year event, and reflects a strategic adjustment in retention levels, impacting stakeholders by increasing financial resilience against future catastrophic losses.
The most recent analyst rating on (ACIC) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on American Coastal Insurance stock, see the ACIC Stock Forecast page.
Executive/Board ChangesShareholder Meetings
American Coastal Insurance Holds 2025 Annual Meeting
Neutral
May 22, 2025
American Coastal Insurance held its 2025 Annual Meeting where stockholders voted on four proposals. The meeting resulted in the election of Class A directors for a two-year term and the ratification of Deloitte & Touche, LLP as the independent registered public accounting firm for the fiscal year ended December 31, 2025. Additionally, stockholders recommended the compensation of the Company’s named executive officers.
The most recent analyst rating on (ACIC) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on American Coastal Insurance stock, see the ACIC Stock Forecast page.
Financial Disclosures
American Coastal Insurance Reports Q1 2025 Financial Results
Neutral
May 8, 2025
American Coastal Insurance Corporation reported its financial results for the first quarter ended March 31, 2025, showing a 7.2% increase in gross premiums written compared to the previous year. However, despite the growth in premiums, the company experienced a 9.5% decline in consolidated net income, reflecting challenges in maintaining profitability.
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.