American Coastal Insurance Q1 premiums fall on lower pricing

American Coastal Insurance

05/05/2026 22:03

Overview

US property insurer's Q1 gross premiums written fell 25% on increased competition and lower pricing

Q1 net income and EPS declined yr/yr, reflecting impact of discontinued operations in 2025

Book value per share rose 27% yr/yr, driven by retained earnings

Outlook

Company says commercial property market remains soft with increased competition

American Coastal is being deliberate in capital deployment through selective partnerships

Company says focus remains on prudent risk selection amid dynamic marketplace

Result Drivers

SOFT MARKET & COMPETITION - Co said lower gross premiums written and earned were due to increased competition and a 24% decrease in net pricing as the market softened

STABLE UNDERWRITING RESULTS - Combined ratio and underlying combined ratio remained consistent yr/yr, supporting steady earnings, per CEO B. Bradford Martz

LOWER LOSS & POLICY ACQUISITION COSTS - Losses and LAE and policy acquisition costs declined, reflecting lower loss ratio and reduced external management fees

Company press release: ID:nGNX8gQCSv

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Gross Premiums Written
$149.40 mln
Q1 EPS
$0.39
Q1 Net Income
$19.25 mln
Q1 Core ROE
24.60%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the property & casualty insurance peer group is "buy"

Wall Street's median 12-month price target for American Coastal Insurance Corp is $14.00, about 20.2% above its May 4 closing price of $11.65

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)