American Coastal Insurance Corporation (ACIC) SEC Filings & Earnings Calls

Loss of key operations and IT leadership; transition risk.

“Resignation of COO/CIO; no immediate replacement announced.”

Market Softening Risk

“These changes are attributed to a 24% decrease in our net pricing year-over-year as the market continued to soften.” · word for word

Margin Pressure Risk

“Loss and LAE expense as a percentage of net earned premiums increased 7.2 points to 27.0% for the second quarter of 2026, compared to 19.8% for the second quarter of 2025.” · word for word

Catastrophe Loss Risk

“Current period catastrophe losses incurred $3,232 (6 months 2026) vs $0 (6 months 2025)”

Premium contraction as Florida pricing declines from generational peak

“Gross premiums written -5.3%; net premiums earned -11.1%”

Underwriting margin deterioration

“Combined ratio +13.7 pts to 74.3%; underlying combined ratio +6.5 pts to 68.7%”

Increased retention risk

“First event retention up to $49M vs $29.75M prior year (+64.7%)”

Market Softening and Pricing Pressure

“These changes are mainly attributed to a decrease of 24% in our net pricing year-over-year as the market softened.” · word for word

Catastrophe Loss Exposure

“A primary liquidity concern with respect to these cash flows is the risk of large magnitude catastrophe events.” · word for word

Reinsurer Credit Risk

“In the event one or more of our reinsurers fail to fulfill their obligation, the surplus of our statutory entity may decline, and we may not be able to fulfill our obligation to policyholders.” · word for word

Premium decline risk

“Gross premiums written down 24.5% YoY”

Geographic Concentration

“As of December 31, 2025, all of our policies in-force were written in Florida and all of our TIV was in Florida.” · word for word

Catastrophe Loss Exposure

“We write all of our policies in Florida, a state that has experienced significant hurricanes in recent years...” · word for word

Reinsurance Dependency

“Our actual losses from catastrophic events may be larger than anticipated should our reinsurers fail to meet their obligations.” · word for word

Key Partner Concentration

“AmCoastal has a managing agency contract (the MGA contract) with AmRisc... The contract between AmCoastal and AmRisc is exclusive.” · word for word

Board and management changes are routine; no material risk identified.

“Departure not due to any disagreement; new appointments have relevant experience.”

Gross premiums written declined 5.4% YoY, indicating potential market share or pricing pressure.

“Gross premiums written $612.5M vs $647.8M prior year.”

Excess capacity in insurance market may pressure rates and underwriting conditions.

“Excess capacity is expected to continue pressuring rates, deductibles, and other conditions in 2026.” · word for word

Catastrophe risk exposure managed via reinsurance but remains a key risk.

“ACIC’s net retention will be limited to $10.8m per occurrence with no reinstatement exposure after a 1st event.” · word for word

Catastrophe exposure managed through reinsurance; retention of $10M per occurrence.

“Company's retention is $10.0 million per occurrence, net of quota share reinsurance coverage.” · word for word

No material risk; dividend indicates financial strength.

“Special dividend declared; no negative signals.”

Concentration risk on AmRisc

“Given the concentration of AmCoastal’s commercial business and operations with AmRisc, AmRisc may have substantial leverage in negotiations with AmCoastal regarding the MGA contract, and amendments to the terms and conditions of the MGA contract or other changes to the commercial relationship between AmRisc and AmCoastal could have a material adverse effect ” · word for word

Catastrophe loss exposure

“Additionally, we face the risk that actual losses incurred from one or more catastrophic events may be above the modeled expected loss resulting in losses exceeding our reinsurance coverage, which may result in a decline in surplus.” · word for word

Market softening could pressure future underwriting margins.

“CEO commentary: 'even as market conditions begin to soften'.”

Expense ratio increased 3.6 pts YoY, indicating cost pressure.

“Expense ratio net 45.5% vs 41.9% in Q3 2024.”