--- title: "American Coastal Insurance | 8-K: FY2026 Q1 Revenue: USD 71.22 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285257269.md" datetime: "2026-05-05T20:06:32.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285257269.md) - [en](https://longbridge.com/en/news/285257269.md) - [zh-HK](https://longbridge.com/zh-HK/news/285257269.md) --- # American Coastal Insurance | 8-K: FY2026 Q1 Revenue: USD 71.22 M Revenue: As of FY2026 Q1, the actual value is USD 71.22 M. EPS: As of FY2026 Q1, the actual value is USD 0.39. EBIT: As of FY2026 Q1, the actual value is USD 28.1 M. #### Revenue and Premiums - Gross premiums written for the first quarter ended March 31, 2026, were $149,395 thousand, a decrease of 24.5% from $197,852 thousand in the prior year period, attributed to increased competition and a 24% decrease in net pricing year-over-year due to a softening market. - Gross premiums earned decreased by 12.9% to $141,134 thousand in Q1 2026 from $162,101 thousand in Q1 2025. - Net premiums earned were $65,611 thousand in Q1 2026, down 3.9% from $68,272 thousand in Q1 2025. Net premiums earned also declined - $2.7 million (-3.9%) year-over-year to $65.6 million. - Total revenue for Q1 2026 was $71,224 thousand, a 1.4% decrease from $72,202 thousand in Q1 2025. Total Revenue was nearly flat year-over-year. - Net investment income increased to $5,079 thousand in Q1 2026 from $4,511 thousand in Q1 2025. - Net realized investment gains significantly decreased to $6 thousand in Q1 2026, down 99.6% from $1,382 thousand in Q1 2025. - Net unrealized gains (losses) on equity securities improved to $528 thousand in Q1 2026 from - $1,963 thousand in Q1 2025. #### Net Income and Profitability - Consolidated net income for Q1 2026 was $19,254 thousand, a 9.8% decrease from $21,348 thousand in Q1 2025. - Income from continuing operations, net of tax, was $19,254 thousand in Q1 2026, a 2.3% decrease from $19,711 thousand in Q1 2025. - Core income (non-GAAP) was $19,314 thousand in Q1 2026, a 6.5% decrease from $20,651 thousand in Q1 2025. Non-GAAP Core Income for 1Q-26 was $19.3 million, which decreased - $1.3 million (-7%) from $20.7 million year-over-year. - Return on equity based on GAAP net income was 24.5% in Q1 2026, compared to 35.4% in Q1 2025. - Core return on equity (non-GAAP) was 24.6% in Q1 2026, compared to 34.2% in Q1 2025. #### Operating Costs and Ratios - Losses and loss adjustment expenses (LAE) decreased by 10.5% to $10,243 thousand in Q1 2026 from $11,389 thousand in Q1 2025. - Policy acquisition costs decreased by 4.7% to $22,393 thousand in Q1 2026 from $23,466 thousand in Q1 2025, mainly due to decreased external management fees. - General and administrative expenses increased by 12.6% to $10,703 thousand in Q1 2026 from $9,506 thousand in Q1 2025, primarily due to increased salary-related expenses. - Total operating expenses (sum of policy acquisition costs and general and administrative expenses) were $33,096 thousand in Q1 2026, up from $32,972 thousand in Q1 2025. - Interest expense was $2,344 thousand in Q1 2026, down from $2,717 thousand in Q1 2025. - The Combined ratio (CR) was 66.0% in Q1 2026, an increase of 1.0 percentage point from 65.0% in Q1 2025. - The Underlying combined ratio (non-GAAP) was 68.3% in Q1 2026, a slight increase of 0.1 percentage point from 68.2% in Q1 2025. The Non-GAAP underlying combined ratio was 68.3%, nearly identical to the previous year. - The Loss ratio, net, improved by 1.1 percentage points to 15.6% in Q1 2026 from 16.7% in Q1 2025. - The Expense ratio, net, increased by 2.1 percentage points to 50.4% in Q1 2026 from 48.3% in Q1 2025. - Underlying loss and LAE (non-GAAP) decreased to $11,795 thousand in Q1 2026 from $13,583 thousand in Q1 2025. #### Balance Sheet and Investment Highlights - Cash, restricted cash, and investment holdings decreased from $647.7 million at December 31, 2025, to $599.4 million at March 31, 2026, primarily due to a $36.6 million dividend payment. - Total cash, cash equivalents and restricted cash were $238,949 thousand at March 31, 2026, down from $292,854 thousand at December 31, 2025. - Total investments were $360,496 thousand at March 31, 2026, compared to $354,890 thousand at December 31, 2025. - Fixed maturities represented 70.5% of total investments at March 31, 2026, with a modified duration of 2.3 years. - Book value per common share increased by 5.4% to $6.86 at March 31, 2026, from $6.51 at December 31, 2025. Book Value per Share (BVPS) for 1Q-26 was $6.86. - Underlying book value per common share (non-GAAP) increased by 5.7% to $7.04 at March 31, 2026, from $6.66 at December 31, 2025. Excluding unrealized losses in accumulated other comprehensive income, stockholders’ equity was $7.04 per share. - Common stockholders’ equity was $331,698 thousand at March 31, 2026, up from $317,565 thousand at December 31, 2025. Stockholders’ equity increased $14.1 million (+4.5%) from December 31, 2025, to $331.7 million. - Total Assets decreased to $997,006 thousand at March 31, 2026, from $1,072,732 thousand at December 31, 2025. Total Assets were $997 million as of March 31, 2026. - Total Liabilities decreased to $665,308 thousand at March 31, 2026, from $755,167 thousand at December 31, 2025. - Tangible book value per share rose 6.7% to $5.57 per share. - Total Equity was $331.7 million as of March 31, 2026. #### Operational Highlights - American Coastal Insurance Corporation holds the #1 market share of admitted commercial residential property insurance in Florida, with approximately 4,254 policies and $558.9 million of premium in-force. - American Coastal Insurance Company has achieved an underwriting profit every year since its inception in 2007. - The company experienced $1.7 million of favorable prior year reserve development. - The Florida commercial property market continued to soften, with average premiums down -16.6% in March year-over-year. - American Coastal Insurance Company assumed $6.2 million in E&S premiums in March as its quota share supporting AmRisc’s E&S commercial property portfolio commenced. - Excluding a one-time benefit of $1.5 million in Q1 2025, operating expenses would have decreased commensurate with the premium decrease. - American Coastal Insurance Corporation declared special dividends of $0.50 in 2024 and $0.75 in 2025. #### Outlook / Guidance American Coastal Insurance Corporation reported a profitable quarter with combined and underlying combined ratios remaining in line with targets and consistent year-over-year. The company acknowledges a soft commercial market but focuses on selective partnerships, targeted commercial property business, and leveraging AI to strengthen its competitive position. The strategic focus remains on building value through specialization, talent, and prudent risk selection, and the company has effectively completed its 6.1.26 Core CAT reinsurance program renewal, achieving attractive pricing and broadening its reinsurer panel while improving overall per occurrence and aggregate protection. ### Related Stocks - [ACIC.US](https://longbridge.com/en/quote/ACIC.US.md) ## Related News & Research - [American Coastal Insurance Q1 premiums fall on lower pricing](https://longbridge.com/en/news/285268023.md) - [Factorial Files Super 8-K Containing Q1 2026 Financial Results | FAC Stock News](https://longbridge.com/en/news/289602927.md) - [Tyson Foods recasts prior-period segment results, adds International as reportable segment](https://longbridge.com/en/news/289182470.md) - [How Investors Are Reacting To Cardinal Health (CAH) Raising Guidance While Expanding Theranostics Amid Recall](https://longbridge.com/en/news/288985099.md) - [Copper Property CTL Pass Through Trust declares $0.091522 per certificate distribution; May report posted](https://longbridge.com/en/news/288902726.md)