American Coastal Insurance Q3 net income rises

American Coastal Insurance

05/11/2025 21:30

Overview

American Coastal Q3 gross premiums written fell 22.8% yr/yr

Net income for Q3 increased 15.5% yr/yr to $32.5 mln

EPS for Q3 rose 14% yr/yr to $0.65

Outlook

Company did not provide specific guidance for future quarters or full-year results in press release

Result Drivers

DECREASED LOSS EXPENSES - Loss and loss adjustment expenses decreased by 22%, contributing to improved net income

LOWER CEDING RATIO - Reduced quota share reinsurance coverage lowered overall ceding ratio, enhancing revenue

HIGHER EXPENSES - Policy acquisition costs and general administrative expenses rose due to increased management fees and salary expenses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Gross Premiums Written
$71.81 mln
Q3 EPS
$0.65
Q3 Net Income
$32.48 mln
Q3 Core ROE
44.50%


Analyst Coverage

The one available analyst rating on the shares is "buy"

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 13.9% above its November 4 closing price of $12.06

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nGNX5zdkjD

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(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.)