American Coastal Q2 net income falls driven by lower net premiums earned

American Coastal Insurance

05/08/2026 21:30

Overview
US property insurer's Q2 gross premiums written fell 5% yr/yr as market pricing softened
Q2 net income declined 17% yr/yr, driven by lower net premiums earned
Book value per share rose 20% yr/yr to $7.21

Outlook
Company did not provide specific financial guidance for the current quarter or full year

Result Drivers
SOFTENING MARKET - Co said lower gross premiums written and earned were due to a 24% decrease in net pricing as the market continued to soften
HIGHER LOSS RATIO - Losses and LAE increased 21% yr/yr, with net loss ratio rising to 27% from 19.8%
REINSURANCE RENEWAL - Co said June 1 reinsurance renewal secured broader protection at lower cost, mitigating impact of rate change on net premiums earned

Company press release: ID:nGNXbrYFgs

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Gross Premiums Written
 
$216.30 mln
 
Q2 EPS
 
$0.44
 
Q2 Net Income
 
$21.90 mln
 
Q2 Core ROE
 
20.00%
 

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 26.9% above its August 4 closing price of $11.03
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Aug 5 - Global Indemnity Q2 net income rises on premium growth
Aug 4 - Mercury General Q2 net income rises, combined ratio improves
Aug 4 - Goldman Sachs, Talcott launch $1 billion Bermuda reinsurance sidecar

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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.)