ACIC has demonstrated a capacity for strong underwriting profitability, with the combined ratio improving from 88.8% in 2024Q4 to 65.6% in 2026Q2, but this improvement is heavily influenced by volatile loss ratios that swung from 71.2% to a low of 11.5% in 2025Q4, raising questions about core operational stability.
American Coastal Insurance Corporation (ACIC) annual income statement — 20-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 |
|---|
| Revenue | 330.38M | 335.44M | 296.66M | 263.68M | 220.78M | 228.69M | 846.66M | 825.12M | 723.94M | 654.42M | 487.12M | 357.57M | 280.23M | 208.08M | 131.23M | 96.42M | 79.99M | 88.47M | 101.06M | 112.6M | 82.45M |
| Revenue Growth % | 3.36% | 13.07% | 12.51% | 19.43% | -3.45% | -72.99% | 2.61% | 13.98% | 10.62% | 34.35% | 36.23% | 27.6% | 34.67% | 58.56% | 36.11% | 20.54% | -9.58% | -12.46% | -10.25% | 36.57% | - |
| Medical Costs & Claims | 98.94M | 46.04M | 140.31M | 122.11M | 177.1M | 182.25M | 844.32M | 737.76M | 611.73M | 540.98M | 416.01M | 270.51M | 183.73M | 149.45M | 95.29M | 67.92M | 67.43M | 64.24M | 17.62M | 17.02M | 82.45M |
| Medical Cost Ratio % | 29.95% | 13.73% | 47.3% | 46.31% | 80.22% | 79.69% | 99.72% | 89.41% | 84.5% | 82.67% | 85.4% | 75.65% | 65.57% | 71.82% | 72.61% | 70.44% | 84.3% | 72.61% | 17.43% | 15.12% | 100% |
| Gross Profit | 231.44M | 289.4M | 156.35M | 141.56M | 43.68M | 46.44M | 2.34M | 87.36M | 112.21M | 113.44M | 71.11M | 87.06M | 96.5M | 58.63M | 35.95M | 28.5M | 12.56M | 24.23M | 83.45M | 95.58M | 0 |
| Gross Margin % | 70.05% | 86.27% | 52.7% | 53.69% | 19.78% | 20.31% | 0.28% | 10.59% | 15.5% | 17.33% | 14.6% | 24.35% | 34.43% | 28.18% | 27.39% | 29.56% | 15.7% | 27.39% | 82.57% | 84.88% | 0% |
| Gross Profit Growth % | - | 85.1% | 10.44% | 224.09% | -5.93% | 1886.1% | -97.32% | -22.15% | -1.08% | 59.54% | -18.33% | -9.78% | 64.59% | 63.09% | 26.12% | 126.95% | -48.17% | -70.96% | -12.69% | - | - |
| Operating Expenses | 98.29M | 146.66M | 44.76M | 45.48M | 42M | 56.85M | 134.44M | 119.96M | 116.45M | 112.53M | 64.1M | 45.2M | 32.09M | 24.14M | 20.23M | 15.49M | 13.97M | 17.91M | 41.84M | 47.64M | 28.88M |
| OpEx / Revenue % | 29.75% | 43.72% | 15.09% | 17.25% | 19.02% | 24.86% | 15.88% | 14.54% | 16.09% | 17.2% | 13.16% | 12.64% | 11.45% | 11.6% | 15.42% | 16.06% | 17.46% | 20.24% | 41.4% | 42.31% | 35.03% |
| Depreciation & Amortization | 9.84M | 20.6M | 8.87M | 10.63M | 23.31M | 11.77M | 11.05M | 12M | 18.48M | 37.53M | 11.71M | 3.33M | 801K | 697K | 684K | 719K | 1.11M | 1.19M | 781K | 720K | 66K |
| Combined Ratio % | 59.7% | 57.45% | 62.38% | 63.56% | 99.24% | 104.56% | 115.6% | 103.95% | 100.59% | 99.86% | 98.56% | 88.29% | 77.02% | 83.43% | 88.03% | 86.5% | 101.76% | 92.85% | 58.83% | 57.43% | 135.03% |
| Operating Income | 133.14M | 142.73M | 111.59M | 96.08M | 1.68M | -10.42M | -132.1M | -32.61M | -4.24M | 910K | 7M | 41.86M | 64.41M | 34.49M | 15.71M | 13.02M | -1.41M | 6.33M | 41.6M | 47.94M | 18.21M |
| Operating Margin % | 40.3% | 42.55% | 37.62% | 36.44% | 0.76% | -4.56% | -15.6% | -3.95% | -0.59% | 0.14% | 1.44% | 11.71% | 22.98% | 16.57% | 11.97% | 13.5% | -1.76% | 7.15% | 41.17% | 42.57% | 22.09% |
| Operating Income Growth % | - | 27.91% | 16.14% | 5615.65% | 116.14% | 92.11% | -305.15% | -669.19% | -565.82% | -87.01% | -83.27% | -35.01% | 86.77% | 119.47% | 20.73% | 1024.43% | -122.25% | -84.79% | -13.22% | 163.21% | - |
| EBITDA | 142.98M | 163.33M | 120.46M | 106.71M | 24.99M | 1.35M | -121.06M | -20.61M | 14.24M | 38.44M | 18.72M | 45.19M | 65.21M | 35.18M | 16.4M | 13.73M | -302K | 7.51M | 42.38M | 48.66M | 18.28M |
| EBITDA Margin % | 43.28% | 48.69% | 40.61% | 40.47% | 11.32% | 0.59% | -14.3% | -2.5% | 1.97% | 5.87% | 3.84% | 12.64% | 23.27% | 16.91% | 12.5% | 14.25% | -0.38% | 8.49% | 41.94% | 43.21% | 22.17% |
| Interest Expense | 10.07M | 10.81M | 12M | 10.88M | 9.48M | 9.3M | 9.58M | 9.78M | 9.87M | 3.25M | 723K | 326K | 410K | 367K | 355K | 548K | 1.77M | 3.18M | 2.81M | 6.08M | 5.02M |
| Non-Operating Income | -10.07M | -10.81M | -2.06M | -10.88M | -9.48M | -9.3M | -9.58M | -9.78M | -9.87M | -3.25M | -723K | -326K | -410K | -367K | -355K | -548K | -1.77M | -3.18M | -2.81M | -6.08M | 0 |
| Pretax Income | 133.14M | 142.73M | 101.66M | 96.08M | 1.68M | -10.42M | -132.1M | -32.61M | -4.24M | 910K | 7M | 41.86M | 64.41M | 34.49M | 15.71M | 13.02M | -1.41M | 6.33M | 41.6M | 47.94M | 13.19M |
| Pretax Margin % | 40.3% | 42.55% | 34.27% | 36.44% | 0.76% | -4.56% | -15.6% | -3.95% | -0.59% | 0.14% | 1.44% | 11.71% | 22.98% | 16.57% | 11.97% | 13.5% | -1.76% | 7.15% | 41.17% | 42.57% | 16% |
| Income Tax | 32.95M | 35.94M | 25.34M | 10.88M | 26.23M | -6.7M | -36.6M | -3.12M | -4.63M | -9.23M | 1.3M | 14.5M | 23.4M | 14.14M | 6.01M | 4.93M | -483K | 2.27M | 8.18M | 8.3M | -4.01M |
| Effective Tax Rate % | 24.75% | 25.18% | 24.93% | 11.32% | 1560.56% | 64.31% | 27.71% | 9.57% | 109.29% | -1014.84% | 18.63% | 34.64% | 36.33% | 41.02% | 38.24% | 37.86% | 34.3% | 35.88% | 19.67% | 17.31% | -30.42% |
| Net Income | 100.2M | 106.84M | 75.72M | 309.91M | -469.86M | -57.92M | -96.45M | -29.87M | 290K | 10.14M | 5.7M | 27.36M | 41.01M | 20.34M | 9.71M | 8.09M | -925K | 4.06M | 33.42M | 39.64M | 17.21M |
| Net Margin % | 30.33% | 31.85% | 25.52% | 117.53% | -212.81% | -25.33% | -11.39% | -3.62% | 0.04% | 1.55% | 1.17% | 7.65% | 14.64% | 9.78% | 7.4% | 8.39% | -1.16% | 4.59% | 33.07% | 35.21% | 20.87% |
| Net Income Growth % | 23.92% | 41.1% | -75.57% | 165.96% | -711.23% | 39.95% | -222.89% | -10400.69% | -97.14% | 78.04% | -79.17% | -33.29% | 101.62% | 109.6% | 19.99% | 974.38% | -122.8% | -87.86% | -15.7% | 130.37% | - |
| EPS (Diluted) | 2.03 | 2.15 | 1.53 | 6.98 | -10.87 | -1.35 | -2.25 | -0.70 | 0.01 | 0.27 | 0.26 | 1.28 | 2.05 | 1.26 | 0.91 | 0.77 | -0.09 | 0.38 | 3.08 | 0.01 | 1.33 |
| EPS Growth % | 23.31% | 40.52% | -78.08% | 164.21% | -705.19% | 40% | -221.43% | - | -97.48% | 3.85% | -79.69% | -37.56% | 62.7% | 38.46% | 18.18% | 980% | -123.03% | -87.66% | - | -99.47% | - |
| EPS (Basic) | - | 2.20 | 1.58 | 7.11 | -10.87 | -1.35 | -2.25 | -0.70 | 0.01 | 0.27 | 0.27 | 1.29 | 2.06 | 1.26 | 0.91 | 0.77 | -0.09 | 0.38 | 3.17 | 0.01 | 1.33 |
| Diluted Shares Outstanding | 49.3M | 49.78M | 49.36M | 44.39M | 43.05M | 42.95M | 42.86M | 42.76M | 42.84M | 37.38M | 21.61M | 21.45M | 20.05M | 16.18M | 10.66M | 10.44M | 10.57M | 10.57M | 10.85M | 11.78M | 12.94M |
Quick answers to the most common questions about buying ACIC stock.
For fiscal year 2025, American Coastal Insurance Corporation (ACIC) reported total revenue of $335.4M. This represents a 306.8% increase compared to $82.5M in 2006.
American Coastal Insurance Corporation (ACIC) is profitable, generating $106.8M in net income for the fiscal year ending 2025 with a net profit margin of 31.8%.
American Coastal Insurance Corporation (ACIC) reported an operating income of $142.7M, resulting in an operating profit margin of 42.6%. This margin reflects the operational efficiency of the business before interest and taxes.
American Coastal Insurance Corporation (ACIC) generated $289.4M in gross profit for the year, representing a gross profit margin of 86.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Volatile loss ratios and earnings
Metrics are mathematically derived from official filings.
Premium Growth Shows Underlying Resilience
Total revenue growth of 25.7% year-over-year in 2025Q2 suggests a hardening market cycle, though sequential declines into 2026 indicate potential pricing headwinds or policy count moderation, as reported in the company's recent financial results.
The strong year-over-year expansion in 2025 points to successful rate increases or new business wins in a competitive Florida homeowners market. However, the recent quarter-over-quarter revenue contraction from 2025Q3 to 2026Q2 may signal that pricing momentum is slowing, or that exposure management is beginning to limit top-line growth. This pattern warrants monitoring to distinguish between intentional underwriting discipline and a loss of competitive traction.
Combined Ratio Volatility Masks Core Profitability
The combined ratio surged to 88.8% in 2024Q4, driven by a 71.2% loss ratio, but has since normalized to the 57-65% range, indicating that recent periods reflect more stable core underwriting performance, according to the company's reported filings.
The dramatic improvement in the combined ratio since the 2024Q4 spike suggests that quarter likely included significant reserve strengthening or a large catastrophe loss event. The subsequent quarters with combined ratios in the low-to-mid 60s indicate a very strong underlying expense and loss structure. The key analytical question is whether the normalized level represents a sustainable run-rate or if prior reserve releases have flattered recent results.
Possible Reserve Releases Boosting Recent Earnings
The exceptionally low loss ratios of 11.5% in 2025Q4 and 14.4% in 2026Q1 appear inconsistent with typical property & casualty insurance operations and may suggest significant favorable reserve development from prior accident years, based on the supplied data.
Loss ratios below 15% in two of the last four quarters are extraordinary for a property carrier and are difficult to explain solely through low current-year claim frequency. This pattern strongly suggests that management has been releasing previously established reserves, which directly inflates current earnings. While this boosts near-term profitability, investors should monitor the company's statutory reserve filings to assess whether this represents true over-reserving in the past or could reduce future flexibility.
Expense Ratio Demonstrates Operating Leverage
With a combined ratio of 65.6% in 2026Q2 against a loss ratio of 51.9%, the implied expense ratio of approximately 13.7% appears exceptionally efficient for a regional insurer and suggests significant scale in its technology and distribution platform, as shown in the company's financial data.
The low expense ratio provides a substantial cushion against loss cost volatility and is a key competitive advantage. This efficiency likely stems from a focused business model in coastal property insurance, avoiding the higher acquisition costs associated with a broad personal or commercial lines portfolio. However, this structural advantage could also indicate high fixed-cost leverage, meaning profitability would deteriorate rapidly if written premium volume were to contract significantly.
2024Q4 Appears to Be a Watershed Loss Event
The 2024Q4 quarter, with a loss ratio of 71.2% and a combined ratio of 88.8%, represents a severe profitability shock that appears to be the catalyst for subsequent reserve actions and the improved run-rate seen in 2025, according to the financial statements.
This quarter's results, coupled with a 67.7% year-over-year decline in EPS, likely marks the recognition of a major catastrophe loss or the culmination of social inflation pressures specific to Florida litigation. The subsequent quarters show a company that has likely recalibrated its pricing and reserving assumptions. The inflection is critical because the post-2024Q4 profitability cannot be fully understood without recognizing it as a reset from an elevated loss level.
Earnings Quality Questioned by Reserve Volatility
The wild swings in loss ratio from 71.2% to 11.5% within a year suggest current earnings may be less indicative of core operational performance and more reflective of accounting judgments around loss reserves, challenging the sustainability of reported profitability.
For an insurer, extreme volatility in the loss ratio is often a red flag for reserve adequacy. If the very low recent loss ratios are indeed driven by reserve releases rather than current-year claims experience, then the reported EPS and operating income are overstated relative to the true economics of the in-force book. This introduces significant uncertainty into valuation models, as future reserve developments could easily reverse these gains, potentially masking underlying adverse loss trends.