EarningsQ3 2026 Earnings Report
DE:0UI Q3 2026 EPS Results
Actual EPS€0.37
Consensus EPS€0.42
Beat/MissMissed by -€0.04
One Year Ago EPS€0.54
DE:0UI Q3 2026 Revenue Results
Actual Revenue€63.10M
Expected Revenue€57.68M
Beat/MissBeat by +€5.42M
YoY Revenue Growth-21.78%
Earnings Announcement Details
QuarterQ3 2026
Date10/29/2026
TimeAfter Close
Conference CallThursday, October 29, 2026
DE:0UI Upcoming Earnings
American Coastal Insurance's next earnings date is estimated for February 24, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:0UI Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive. Strong retention, policy growth, premium growth despite rate pressure, a 64.7% combined ratio, core ROE above 24%, improved liquidity and book value, and progress on the E&S platform outweighed the negative factors. The primary challenges were soft and competitive market conditions, a $10.1 million decline in core income, a higher underlying combined ratio, lower revenue, declining rates and the absence of 2027 guidance.Company Guidance
Market Leadership and Strong Retention
American Coastal maintained its market leadership position in Florida commercial residential property insurance, with strong account retention near 90% and policy-in-force growth of roughly 7% year-to-date.
Gross Premium Growth Despite Rate Pressure
Gross premiums written increased 3.2% in the current quarter compared with the same period a year ago, despite downward pressure on average account rates.
Strong Underwriting Profitability
The company delivered a combined ratio of 64.7%, which fueled a core return on equity of over 24%.
ACES Specialty Licensed
The new E&S carrier, ACES Specialty, was formally licensed and is expected to serve as the cornerstone of American Coastal's long-term E&S growth strategy.
E&S Launch Progress
The company remains on track to produce and underwrite its first new E&S property insurance policies on or about the end of the 2026 hurricane season through one or more third-party carriers. Skyway Underwriters has several submissions in its pipeline, has cleared and quoted many of them, and expects to bind some new business in December.
Disciplined Underwriting Strategy
Management said it remains selective and disciplined in both the admitted and non-admitted commercial property markets, with a focus on underwriting profitability and risk-adjusted returns on capital rather than top-line growth alone.
Capital Strength and Potential Special Dividend
Management said ACIC will not require additional capital to achieve its primary goal of earnings growth over time. The company has made the investments required to expand the business and still has excess capital that could be returned to shareholders through a special dividend, assuming no significant catastrophe losses occur in the fourth quarter.
Limited Hurricane Isaias Impact
Hurricane Isaias is expected to have a minor impact on the fourth quarter and is unlikely to influence the Board's consideration of declaring a special dividend later in the year.
Positive Quarterly Earnings
American Coastal reported third-quarter net income of $19.4 million and core income of $20.4 million, while still producing a core return on equity of over 24%.
Lower Expenses
Expenses decreased $4 million in the current year, driven by favorable prior-year development and lower operating expenses quarter-over-quarter.
Improved Balance Sheet and Liquidity
Cash and investments increased 9.3% from year-end, and management said the company's liquidity position remains strong. Stockholders' equity increased $38.1 million, or 12%, to $355.7 million, driven by underwriting results.
Book Value Growth
Book value per share reached $7.52, representing a 15.5% increase from year-end 2025.
Retention and New Business Offsetting Rate Declines
Management said renewal account retention remains a priority because renewal business tends to be more profitable than new business. AmRisc and Skyway are working to retain the best business, while new business and E&S growth are expected to offset some premium loss from rate changes. The co-participation in the Nationwide portfolio underwritten by AmRisc is helping offset premium weakness this year.
Potential 2027 Revenue Growth
Management said it is possible and feasible to achieve year-over-year revenue growth in 2027, including growth in gross premiums written, gross premiums earned, net premiums earned and total revenues, even if rates continue to decline and including a double-digit rate decrease next year.
Fee Income and E&S Growth Opportunities
Some business expected to be underwritten next year through Skyway could generate fee income beginning in 2027. Management also expects strong partners and additional capacity to allow Skyway to underwrite more business, including business written on behalf of third-party carriers where the company may earn service fees.
Manageable Policy Acquisition Cost Outlook
Management expects the policy acquisition cost ratio to remain relatively consistent going forward. Although E&S policy acquisition costs are slightly higher because of fronting fees, the PAC ratio is not expected to move dramatically next year and is not expected to be a significant headwind to earnings growth.
Expected Moderation in Rate Declines
Management said the current velocity of rate change is slowing and expects pricing declines to moderate compared with the changes experienced this year. It also expects changes in reinsurance costs to provide a very similar, if not greater, offset to rate changes.
Long-Term E&S Diversification
Management expects a dramatically different business mix over the next five years as the company works with multiple capacity providers. It views size, scale and diversification as important to long-term success and expects to use reinsurance to manage net premium risk without necessarily raising additional capital.
DE:0UI Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed