American Coastal Insurance (ACIC) AI Stock Analysis

• Market Cap: $538.86M
• Dividend Yield: N/A
• Average Volume (3M): 145.03K
• Price to Earnings (P/E): 6.4
• 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): 0.61
• Shares Outstanding: 48,765,300
• 10 Day Avg. Volume: 117,144
• 30 Day Avg. Volume: 145,026
• PEG Ratio: -0.11
• Price to Book (P/B): 2.73
• Price to Sales (P/S): 2.17
• P/FCF Ratio: 2.64
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 2.65
• Enterprise Value/Ebitda: 3.18
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $12.00 ▲(8.60% Upside)

ACIC scores as moderately attractive: strong profitability and improving balance sheet metrics are tempered by weak cash flow trends and historical volatility. Valuation is a clear positive (low P/E and high yield), but technical indicators point to weak near-term momentum, keeping the overall score in the mid-range despite constructive earnings-call and corporate-event signals.

Positive Factors

Underwriting profitability

A sub-65% combined ratio indicates durable underwriting discipline and pricing adequacy versus peers. Sustained low loss and expense incidence supports persistent high operating margins and ROE, giving the company resilience across cycles and capacity to absorb occasional catastrophe years.

Strengthened liquidity and capital

Material increases in cash, investments and equity materially improve capital buffers for catastrophe risk and underwriting growth. Strong liquidity reduces probability of forced capital raises, enables opportunistic buybacks/dividends, and supports scaling specialty lines without eroding solvency over the medium term.

Strategic E&S national expansion with reinsurance cap

Moving beyond Florida via ACES and quota-share access diversifies geographic underwriting exposure and revenue sources. The low net retention and rated catastrophe reinsurance materially limit peak-loss exposure, enabling scalable growth in specialty E&S while preserving underwriting returns and capital efficiency.

Negative Factors

Weak free cash flow conversion

A near-80% FCF decline signals poor conversion of accounting earnings to cash, increasing reliance on investment liquidity or capital markets to fund operations and growth. Persistent weak cash conversion undermines dividend sustainability, buybacks, and creates vulnerability if underwriting margins normalize or catastrophe claims rise.

Softening pricing and premium growth

A softer pricing cycle and declining GWP threaten top-line momentum and indicate reduced pricing power in commercial property markets. If pricing pressure persists, revenue growth will require higher exposure or volume, increasing potential catastrophe or attritional risk and pressuring long-term margin sustainability.

Rising acquisition costs and distribution expense

Higher commissions to MGAs raise fixed expense structure and erode underwriting margins unless offset by yield or loss improvements. As ACIC scales E&S via program managers, sustained elevated acquisition costs could compress ROE, force repricing, or require tighter underwriting, limiting durable profitability gains.

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

Profitability is strong in the TTM period (net margin 25.99%, EBIT/EBITDA margins 38.41%/40.14%) and leverage is moderate (debt-to-equity 0.47) with high ROE (30.54%). The score is held back by weak cash conversion and liquidity risk signals, including a sharp free cash flow decline (-79.59%) and historical volatility in cash flow and equity (including negative equity in 2022).

Income Statement

American Coastal Insurance shows a strong TTM performance with a net profit margin of 25.99% and a revenue growth rate of 2.55%. The EBIT and EBITDA margins are robust at 38.41% and 40.14% respectively, indicating efficient operations. However, historical volatility in revenue growth and profitability, including negative margins in previous years, suggests potential risks.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.47 in the TTM period, reflecting a balanced leverage strategy. Return on equity is strong at 30.54%, indicating effective use of equity. However, historical fluctuations in equity and negative equity in 2022 highlight potential stability concerns.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth at -79.59% in the TTM period, raising concerns about cash generation. The operating cash flow to net income ratio is low, suggesting challenges in converting income to cash. Historical cash flow volatility further underscores potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	327.78M	296.66M	263.68M	220.78M	228.69M	846.66M
Gross Profit	160.09M	156.35M	141.56M	43.68M	46.44M	2.34M
EBITDA	133.24M	122.52M	117.58M	34.48M	10.65M	-111.47M
Net Income	85.22M	75.72M	309.91M	-469.86M	-57.92M	-96.45M
Balance Sheet
Total Assets	1.18B	1.22B	1.06B	2.84B	2.70B	2.85B
Cash, Cash Equivalents and Short-Term Investments	382.97M	285.04M	334.46M	606.36M	875.63M	1.18B
Total Debt	152.46M	152.34M	149.46M	150.04M	158.50M	160.35M
Total Liabilities	851.63M	980.45M	891.62M	3.02B	2.37B	2.43B
Stockholders Equity	327.22M	235.66M	168.76M	-180.18M	312.41M	395.75M
Cash Flow
Free Cash Flow	120.27M	243.49M	-136.20M	-176.16M	-300.66M	-21.32M
Operating Cash Flow	120.38M	243.51M	-136.00M	-173.11M	-295.39M	-10.47M
Investing Cash Flow	988.00K	-179.21M	-2.54M	236.84M	251.38M	36.57M
Financing Cash Flow	-24.69M	-13.84M	26.77M	-25.39M	-12.21M	-11.65M

American Coastal Insurance Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.05
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 11.05 is below the 20-day moving average (MA) of 11.17, below the 50-day MA of 11.40, and above the 200-day MA of 10.73, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of 27.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ACIC.

American Coastal Insurance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GBLI	73 Outperform	$410.09M	14.84	4.01%	5.01%	-0.04%	-33.45%
HRTG	72 Outperform	$805.86M	5.41	41.64%	―	5.92%	93.02%
UFCS	71 Outperform	$916.98M	8.48	13.21%	1.73%	12.22%	120.73%
UVE	70 Outperform	$854.09M	7.19	27.34%	2.18%	4.61%	73.40%
DGICA	69 Neutral	$672.45M	7.69	15.10%	3.51%	0.93%	224.95%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ACIC	65 Neutral	$538.86M	6.38	29.35%	―	16.34%	-1.26%

American Coastal Insurance Corporate Events

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.

American Coastal Insurance Declares Special Cash Dividend

On December 1, 2025, American Coastal Insurance Corporation announced that its Board of Directors declared a special cash dividend of $0.75 per share of common stock. The dividend is set to be paid on January 9, 2026, to shareholders recorded by January 2, 2026. This announcement reflects the company’s strong financial position and commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors.

The most recent analyst rating on (ACIC) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on American Coastal Insurance stock, see the ACIC Stock Forecast page.

American Coastal Insurance Reports Strong Q3 2025 Results

On November 5, 2025, American Coastal Insurance Corporation reported its financial results for the third quarter ending September 30, 2025. The company experienced a 15.5% increase in consolidated net income compared to the same period in 2024, with total revenue rising by 10.1%. The company achieved a strong underwriting performance with a combined ratio of 57.8% for the quarter, outperforming its target. These results highlight American Coastal’s strategic positioning and focus on long-term value creation, even as market conditions begin to soften.

The most recent analyst rating on (ACIC) stock is a Hold 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.