Company to Host Quarterly Conference Call at 5:00 P.M. ET on February 19, 2026
The information in this press release should be read in conjunction with an earnings presentation that is available on the Company's website at investors.amcoastal.com/events-and-presentations.
ST. PETERSBURG, Fla., Feb. 19, 2026 (GLOBE NEWSWIRE) -- February 19, 2026: American Coastal Insurance Corporation (Nasdaq: ACIC) ("ACIC" or the "Company"), a property and casualty insurance holding company, today reported its financial results for the fourth quarter and year ended December 31, 2025.
| ($ in thousands, except for per share data) | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||
| Gross premiums written | $ | 114,512 | $ | 140,739 | (18.6 | )% | $ | 612,522 | $ | 647,805 | (5.4 | )% | |||||||||
| Gross premiums earned | 157,942 | 162,710 | (2.9 | )% | 648,260 | 638,608 | 1.5 | % | |||||||||||||
| Net premiums earned | 79,319 | 73,492 | 7.9 | % | 306,852 | 273,990 | 12.0 | % | |||||||||||||
| Total revenue | 86,375 | 79,267 | 9.0 | % | 335,439 | 296,657 | 13.1 | % | |||||||||||||
| Income from continuing operations, net of tax | 26,564 | 5,868 | NM | 106,795 | 76,319 | 39.9 | % | ||||||||||||||
| Income (loss) from discontinued operations, net of tax | — | (922 | ) | NM | 42 | (601 | ) | NM | |||||||||||||
| Consolidated net income | $ | 26,564 | $ | 4,946 | NM | $ | 106,837 | $ | 75,718 | 41.1 | % | ||||||||||
| Net income available to ACIC stockholders per diluted share | |||||||||||||||||||||
| Continuing Operations | $ | 0.53 | $ | 0.12 | NM | $ | 2.15 | $ | 1.55 | 38.7 | % | ||||||||||
| Discontinued Operations | — | (0.02 | ) | NM | — | (0.01 | ) | NM | |||||||||||||
| Total | $ | 0.53 | $ | 0.10 | NM | $ | 2.15 | $ | 1.54 | 39.6 | % | ||||||||||
| Reconciliation of net income to core income: | |||||||||||||||||||||
| Plus: Non-cash amortization of intangible assets and goodwill impairment | $ | 610 | $ | 608 | 0.3 | % | $ | 2,438 | $ | 2,639 | (7.6 | )% | |||||||||
| Less: Income (loss) from discontinued operations, net of tax | — | (922 | ) | NM | 42 | (601 | ) | NM | |||||||||||||
| Less: Net realized gains (losses) on investment portfolio | — | — | NM | 1,382 | (124 | ) | NM | ||||||||||||||
| Less: Unrealized gains on equity securities | 1,570 | 454 | NM | 4,999 | 1,996 | NM | |||||||||||||||
| Less: Net tax impact (1) | (202 | ) | 32 | NM | (828 | ) | 161 | NM | |||||||||||||
| Core income(2) | 25,806 | 5,990 | NM | 103,680 | 76,925 | 34.8 | % | ||||||||||||||
| Core income per diluted share (2) | $ | 0.52 | $ | 0.12 | NM | $ | 2.08 | $ | 1.56 | 33.3 | % | ||||||||||
| Book value per share | $ | 6.51 | $ | 4.89 | 33.1 | % | |||||||||||||||
| NM = Not Meaningful | |
| (1) | In order to reconcile net income to the core income measures, the Company included the tax impact of all adjustments using the 21% federal corporate tax rate. |
| (2) | Core income and core income per diluted share, both of which are measures that are not based on generally accepted accounting principles ("GAAP"), are reconciled above to net income and net income per diluted share, respectively, the most directly comparable GAAP measures. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section below. |
Comments from President & Chief Executive Officer, B. Bradford Martz:
“We're proud to have finished the year with earnings of $26.6 million for the quarter and earnings of $106.8 million, or $2.15 per share for the full year, exceeding our 2025 guidance. Net premiums earned were in line with our 2025 guidance, contributing to revenue growth of 13.1% year-over-year. Our underwriting results remain strong, with both our quarterly and full year underlying combined ratio outperforming our 65% target. American Coastal continues to strengthen its liquidity position and grow its book value meaningfully, while rewarding shareholders with special dividends each of the last two years. The Company remains strategically positioned to deliver long-term value creation and execute on our growth initiatives moving forward.”
Return on Equity and Core Return on Equity
The calculations of the Company's return on equity and core return on equity are shown below.
| ($ in thousands) | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Income from continuing operations, net of tax | $ | 26,564 | $ | 5,868 | $ | 106,795 | $ | 76,319 | |||||||
| Return on equity based on GAAP income from continuing operations, net of tax(1) | 36.0 | % | 10.4 | % | 36.2 | % | 33.7 | % | |||||||
| Income (loss) from discontinued operations, net of tax | $ | — | $ | (922 | ) | $ | 42 | $ | (601 | ) | |||||
| Return on equity based on GAAP income (loss) from discontinued operations, net of tax(1) | — | % | (1.6 | )% | — | % | (0.3 | )% | |||||||
| Consolidated net income | $ | 26,564 | $ | 4,946 | $ | 106,837 | $ | 75,718 | |||||||
| Return on equity based on GAAP net income(1) | 36.0 | % | 8.7 | % | 36.2 | % | 33.5 | % | |||||||
| Core income | $ | 25,806 | $ | 5,990 | $ | 103,680 | $ | 76,925 | |||||||
| Core return on equity(1)(2) | 35.0 | % | 10.6 | % | 35.2 | % | 34.0 | % | |||||||
| (1) | Return on equity for the three months and years ended December 31, 2025 and 2024 is calculated on an annualized basis by dividing the net income or core income for the period by the average stockholders' equity for the trailing twelve months. |
| (2) | Core return on equity, a measure that is not based on GAAP, is calculated based on core income, which is reconciled on the first page of this press release to net income, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the"Definitions of Non-GAAP Measures"section below. |
Combined Ratio and Underlying Ratio
The calculations of the Company's combined ratio and underlying combined ratio are shown below.
| ($ in thousands) | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||
| Loss ratio, net(1) | 12.5 | % | 40.5 | % | (28.0 | ) | pts | 15.0 | % | 25.3 | % | (10.3 | ) | pts | |||||
| Expense ratio, net(2) | 46.1 | % | 51.4 | % | (5.3 | ) | pts | 45.1 | % | 42.2 | % | 2.9 | pts | ||||||
| Combined ratio (CR)(3) | 58.6 | % | 91.9 | % | (33.3 | ) | pts | 60.1 | % | 67.5 | % | (7.4 | ) | pts | |||||
| Effect of current year catastrophe losses on CR | 1.3 | % | 27.8 | % | (26.5 | ) | pts | 0.5 | % | 9.3 | % | (8.8 | ) | pts | |||||
| Effect of prior year favorable development on CR | (1.6 | )% | (1.8 | )% | 0.2 | pts | (1.9 | )% | (1.4 | )% | (0.5 | ) | pts | ||||||
| Underlying combined ratio(4) | 58.9 | % | 65.9 | % | (7.0 | ) | pts | 61.5 | % | 59.6 | % | 1.9 | pts | ||||||
| (1) | Loss ratio, net, is calculated as losses and loss adjustment expenses ("LAE"), net of losses ceded to reinsurers, relative to net premiums earned. |
| (2) | Expense ratio, net, is calculated as the sum of all operating expenses, less interest expense relative to net premiums earned. |
| (3) | Combined ratio is the sum of the loss ratio, net, and expense ratio, net. |
| (4) | Underlying combined ratio, a measure that is not based on GAAP, is reconciled above to the combined ratio, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the"Definitions of Non-GAAP Measures" section below. |
Combined Ratio Analysis
The calculations of the Company's loss ratios and underlying loss ratios are shown below.
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||
| Net loss and LAE | $ | 9,900 | $ | 29,794 | $ | (19,894 | ) | $ | 46,040 | $ | 69,319 | $ | (23,279 | ) | |||||||||||
| % of Gross earned premiums | 6.3 | % | 18.3 | % | (12.0 | ) | pts | 7.1 | % | 10.9 | % | (3.8 | ) | pts | |||||||||||
| % of Net earned premiums | 12.5 | % | 40.5 | % | (28.0 | ) | pts | 15.0 | % | 25.3 | % | (10.3 | ) | pts | |||||||||||
| Less: | |||||||||||||||||||||||||
| Current year catastrophe losses | $ | 1,060 | $ | 20,405 | $ | (19,345 | ) | $ | 1,485 | $ | 25,561 | $ | (24,076 | ) | |||||||||||
| Prior year reserve favorable development | (1,234 | ) | (1,325 | ) | 91 | (5,827 | ) | (3,704 | ) | (2,123 | ) | ||||||||||||||
| Underlying loss and LAE(1) | $ | 10,074 | $ | 10,714 | $ | (640 | ) | $ | 50,382 | $ | 47,462 | $ | 2,920 | ||||||||||||
| % of Gross earned premiums | 6.4 | % | 6.6 | % | (0.2 | ) | pts | 7.8 | % | 7.4 | % | 0.4 | pts | ||||||||||||
| % of Net earned premiums | 12.8 | % | 14.5 | % | (1.8 | ) | pts | 16.4 | % | 17.3 | % | (0.9 | ) | pts | |||||||||||
| (1) | Underlying loss and LAE is a non-GAAP financial measure and is reconciled above to loss and LAE, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures" section, below. |
The calculations of the Company's expense ratios are shown below.
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||||
| Policy acquisition costs | $ | 24,682 | $ | 26,514 | $ | (1,832 | ) | $ | 97,844 | $ | 70,990 | $ | 26,854 | ||||||||||||
| General and administrative | 11,858 | 11,277 | 581 | 40,463 | 44,756 | (4,293 | ) | ||||||||||||||||||
| Total operating expenses | $ | 36,540 | $ | 37,791 | $ | (1,251 | ) | $ | 138,307 | $ | 115,746 | $ | 22,561 | ||||||||||||
| % of Gross earned premiums | 23.1 | % | 23.2 | % | (0.1 | ) | pts | 21.3 | % | 18.1 | % | 3.2 | pts | ||||||||||||
| % of Net earned premiums | 46.1 | % | 51.4 | % | (5.3 | ) | pts | 45.1 | % | 42.2 | % | 2.9 | pts | ||||||||||||
Quarter to Date Financial Results
Net income for the fourth quarter ended December 31, 2025 was $26.6 million, or $0.53 per diluted share, compared to net income of $4.9 million, or $0.10 per diluted share, for the fourth quarter ended December 31, 2024. Drivers of the favorable change in net income during the fourth quarter of 2025 included decreased losses and LAE compared with the fourth quarter of 2024 as Hurricane Milton made landfall. During the fourth quarter of 2024, the Company's net loss attributable to discontinued operations was $922 thousand. The Company had no discontinued operations during the fourth quarter of 2025.
The Company's total gross written premium decreased by $26.2 million, or 18.6%, to $114.5 million for the fourth quarter ended December 31, 2025, from $140.7 million for the fourth quarter ended December 31, 2024. Gross premium earned decreased $4.8 million, or 3.0%, to $157.9 million for the fourth quarter ended December 31, 2025 from $162.7 million for the fourth quarter ended December 31, 2024. Ceded premiums earned decreased $10.6 million, or 11.9%, to $78.6 million for the fourth quarter ended December 31, 2025 from $89.2 million for the fourth quarter ended December 31, 2024. The breakdown of the quarter-over-quarter changes in these premiums is shown in the table below. More detail regarding the Company's ceded premiums can be seen in the "Reinsurance Costs as a Percentage of Gross Earned Premium" section below.
| ($ in thousands) | Three Months Ended December 31, | ||||||||||||||
| 2025 | 2024 | Change $ | Change % | ||||||||||||
| Gross premiums written | $ | 114,512 | $ | 140,739 | $ | (26,227 | ) | (18.6 | )% | ||||||
| Change in gross unearned premiums | 43,430 | 21,971 | 21,459 | 97.7 | % | ||||||||||
| Gross premiums earned | 157,942 | 162,710 | (4,768 | ) | (2.9 | )% | |||||||||
| Ceded premiums written | (3,953 | ) | (50,684 | ) | 46,731 | (92.2 | )% | ||||||||
| Change in ceded unearned premiums | (74,670 | ) | (38,534 | ) | (36,136 | ) | 93.8 | % | |||||||
| Ceded premiums earned | (78,623 | ) | (89,218 | ) | 10,595 | (11.9 | )% | ||||||||
| Net premiums earned | $ | 79,319 | $ | 73,492 | $ | 5,827 | 7.9 | % | |||||||
Losses and LAE decreased by $19.9 million, or 66.8%, to $9.9 million for the fourth quarter ended December 31, 2025, from $29.8 million for the fourth quarter ended December 31, 2024. Loss and LAE expense as a percentage of net earned premiums decreased 28.0 points to 12.5% for the fourth quarter ended December 31, 2025, compared to 40.5% for the fourth quarter ended December 31, 2024. Excluding catastrophe losses and reserve development, the Company's gross underlying loss and LAE ratio for the fourth quarter ended December 31, 2025, would have been 6.4%, a decrease of 0.2 point from 6.6% for the fourth quarter ended December 31, 2024.
Policy acquisition costs decreased by $1.8 million, or 6.8%, to $24.7 million for the fourth quarter ended December 31, 2025, from $26.5 million for the fourth quarter ended December 31, 2024, primarily due to decreased external management fees as a product of the decrease in written premiums shown above. This was partially offset by a decrease in ceding commission income as a result of the Company's quota share reinsurance coverage decreasing from 20% to 15%, effective June 1, 2025.
General and administrative expenses remained relatively flat, increasing by $0.6 million, or 5.3%, to $11.9 million for the fourth quarter ended December 31, 2025, from $11.3 million for the fourth quarter ended December 31, 2024.
Annual Financial Results
Net income for the year ended December 31, 2025 was $106.8 million, or $2.15 per diluted share, compared to net income of $75.7 million, or $1.54 per diluted share, for the year ended December 31, 2024. Drivers of the change in net income during 2025 included increased gross premiums earned and decreased ceded premiums earned, driving an overall increase in revenues. In addition, the Company saw decreased losses and LAE, partially offset by increased policy acquisition costs. During 2024, the Company's net loss attributable to discontinued operations was $601 thousand, compared to net income of $42 thousand attributable to discontinued operations during 2025.
The Company's total gross written premium decreased by $35.3 million, or 5.4%, to $612.5 million for the year ended December 31, 2025, from $647.8 million for the year ended December 31, 2024. Gross premium earned increased $9.7 million, or 1.5%, to $648.3 million for the year ended December 31, 2025 from $638.6 million for the year ended December 31, 2024. Ceded premiums earned decreased $23.2 million, or 6.4%, to $341.4 million for the year ended December 31, 2025 from $364.6 million for the year ended December 31, 2024. The breakdown of the year-over-year changes in these premiums are shown in the table below.
| ($ in thousands) | Year Ended December 31, | |||||||||||||
| 2025 | 2024 | Change $ | Change % | |||||||||||
| Gross premiums written | $ | 612,522 | $ | 647,805 | $ | (35,283 | ) | (5.4 | )% | |||||
| Change in gross unearned premiums | 35,738 | (9,197 | ) | 44,935 | (488.6 | )% | ||||||||
| Gross premiums earned | 648,260 | 638,608 | 9,652 | 1.5 | % | |||||||||
| Ceded premiums written | (290,212 | ) | (370,210 | ) | 79,998 | (21.6 | )% | |||||||
| Change in ceded unearned premiums | (51,196 | ) | 5,592 | (56,788 | ) | (1,015.5 | )% | |||||||
| Ceded premiums earned | (341,408 | ) | (364,618 | ) | 23,210 | (6.4 | )% | |||||||
| Net premiums earned | $ | 306,852 | $ | 273,990 | $ | 32,862 | 12.0 | % | ||||||
Losses and LAE decreased by $23.3 million, or 33.6%, to $46.0 million for the year ended December 31, 2025, from $69.3 million for the year ended December 31, 2024. Loss and LAE expense as a percentage of net earned premiums decreased 10.3 points to 15.0% for the year ended December 31, 2025, compared to 25.3% for the year ended December 31, 2024. Excluding catastrophe losses and reserve development, the Company's gross underlying loss and LAE ratio for the year ended December 31, 2025, would have been 7.8%, an increase of 0.4 point from 7.4% for the year ended December 31, 2024.
Policy acquisition costs increased by $26.9 million, or 37.9%, to $97.8 million for the year ended December 31, 2025, from $71.0 million for the year ended December 31, 2024, primarily due to decreased ceding commission income as a result of the Company's quota share reinsurance coverage decreasing from 20% to 15%, effective June 1, 2025. In addition, external management fees increased as a result of a one percent increase in the management fee and profit share accrual pursuant to the renewal terms for the contract with AmRisc, LLC, effective June 1, 2024.
General and administrative expenses decreased by $4.3 million, or 9.6%, to $40.5 million for the year ended December 31, 2025, from $44.8 million for the year ended December 31, 2024, driven by a decrease in depreciation and amortization as well as a decrease in external spending for professional and consulting services, audit fees and legal fees.
Reinsurance Costs as a Percentage of Gross Earned Premium
Reinsurance costs as a percentage of gross earned premium in the fourth quarter of 2025 and 2024 were as follows:
| 2025 | 2024 | ||||
| Non-at-Risk | (0.4 | )% | (0.3 | )% | |
| Quota Share | (12.7 | )% | (16.2 | )% | |
| All Other | (36.7 | )% | (38.3 | )% | |
| Total Ceding Ratio | (49.8 | )% | (54.8 | )% | |
Ceded premiums earned related to the Company's quota share reinsurance coverage decreased as the result of a decrease in the cession rate from 20% to 15% effective June 1, 2025. The Company's excess-of-loss coverage remained relatively flat, with cost savings on these contracts in the current year being offset by additional coverage purchased due to exposure growth and the decreased quota share cession rate. Overall, this drove a decrease in the Company's ceding ratio as the Company's replacement excess-of-loss coverage was more cost-effective than the quota share coverage it replaced.
Investment Portfolio Highlights
The Company's cash, restricted cash and investment holdings increased from $540.8 million at December 31, 2024, to $647.7 million at December 31, 2025. This increase was driven by cash flows from operations. The Company's cash and investment holdings consist primarily of investments in U.S. government and agency securities, corporate debt, mutual funds and investment grade money market instruments. Fixed maturities represented approximately 71.3% of total investments at December 31, 2025, compared to 82.3% of total investments at December 31, 2024. The Company's fixed maturity investments had a modified duration of 2.5 years at December 31, 2025, compared to 2.2 years at December 31, 2024.
Book Value Analysis
Book value per common share increased 33.2% from $4.89 at December 31, 2024, to $6.51 at December 31, 2025. Underlying book value per common share increased 27.8% from $5.21 at December 31, 2024, to $6.66 at December 31, 2025. An increase in the Company's retained earnings as a result of net income for the year ended 2025 drove the increase in the Company's book value per share. As shown in the table below, removing the effect of Accumulated Other Comprehensive Income ("AOCI"), caused by capital market conditions, increases the Company's book value per common share at December 31, 2025.
| ($ in thousands, except for share and per share data) | |||||||
| December 31, 2025 | December 31, 2024 | ||||||
| Book Value per Share | |||||||
| Numerator: | |||||||
| Common stockholders' equity | $ | 317,565 | $ | 235,660 | |||
| Denominator: | |||||||
| Total Shares Outstanding | 48,764,802 | 48,204,962 | |||||
| Book Value Per Common Share | $ | 6.51 | $ | 4.89 | |||
| Book Value per Share, Excluding the Impact of AOCI | |||||||
| Numerator: | |||||||
| Common stockholders' equity | $ | 317,565 | $ | 235,660 | |||
| Less: Accumulated other comprehensive loss | (7,242 | ) | (15,666 | ) | |||
| Stockholders' Equity, excluding AOCI | $ | 324,807 | $ | 251,326 | |||
| Denominator: | |||||||
| Total Shares Outstanding | 48,764,802 | 48,204,962 | |||||
| Underlying Book Value Per Common Share(1) | $ | 6.66 | $ | 5.21 | |||
| (1) | Underlying book value per common share is a non-GAAP financial measure and is reconciled above to book value per common share, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the "Definitions of Non-GAAP Measures"section below. |
Conference Call Details
| Date and Time: | February 19, 2026 - 5:00 P.M. ET |
| Participant Dial-In: | (United States): 877-445-9755 (International): 201-493-6744 |
| Webcast: | To listen to the live webcast, please go to https://investors.amcoastal.com and click on the conference call link at the bottom of the page or go to: https://event.webcasts.com/starthere.jsp?ei=1751270&tp_key=849b2696a5 An archive of the webcast will be available for a limited period of time thereafter. |
| Presentation: | The information in this press release should be read in conjunction with an earnings presentation that is available on the Company's website at investors.amcoastal.com/events-and-presentations. |
About American Coastal Insurance Corporation
American Coastal Insurance Corporation (amcoastal.com) is the holding company of the insurance carrier, American Coastal Insurance Company, which was founded in 2007 for the purpose of insuring Condominium and Homeowner Association properties, and Apartments in the state of Florida. American Coastal Insurance Company has an exclusive partnership for distribution of Condominium Association properties in the state of Florida with AmRisc Group (amriscgroup.com), one of the largest Managing General Agents in the country specializing in hurricane-exposed properties. American Coastal Insurance Company has earned a Financial Stability Rating of “A”, "Exceptional" from Demotech, and maintains an “A-” insurance financial strength rating with a Positive outlook by Kroll. ACIC maintains a ‘BBB-’ issuer rating with a Positive outlook by Kroll.
Contact Information:
Alexander Baty
Vice President, Finance & Investor Relations, American Coastal Insurance Corp.
investorrelations@amcoastal.com
(727) 425-8076
Jeremy Hellman
Investor Relations, Vice President, The Equity Group
jhellman@equityny.com
(212) 836-9626
Definitions of Non-GAAP Measures
The Company believes that investors' understanding of ACIC's performance is enhanced by the Company's disclosure of the following non-GAAP measures. The Company's methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.
Net income (loss) excluding the effects of amortization of intangible assets, income (loss) from discontinued operations, realized gains (losses) and unrealized gains (losses) on equity securities, net of tax (core income (loss)) is a non-GAAP measure that is computed by adding amortization, net of tax, to net income (loss) and subtracting income (loss) from discontinued operations, net of tax, realized gains (losses) on the Company's investment portfolio, net of tax, and unrealized gains (losses) on the Company's equity securities, net of tax, from net income (loss). Amortization expense is related to the amortization of intangible assets acquired, including goodwill, through mergers and, therefore, the expense does not arise through normal operations. Investment portfolio gains (losses) and unrealized equity security gains (losses) vary independent of the Company's operations. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is net income (loss). The core income (loss) measure should not be considered a substitute for net income (loss) and does not reflect the overall profitability of the Company's business.
Core return on equity is a non-GAAP ratio calculated using non-GAAP measures. It is calculated by dividing the core income (loss) for the period by the average stockholders’ equity for the trailing twelve months (or one quarter of such average, in the case of quarterly periods). Core income (loss) is an after-tax non-GAAP measure that is calculated by excluding from net income (loss) the effect of income (loss) from discontinued operations, net of tax, non-cash amortization of intangible assets, including goodwill, unrealized gains or losses on the Company's equity security investments and net realized gains or losses on the Company's investment portfolio. In the opinion of the Company’s management, core income (loss), core income (loss) per share and core return on equity are meaningful indicators to investors of the Company's underwriting and operating results, since the excluded items are not necessarily indicative of operating trends. Internally, the Company’s management uses core income (loss), core income (loss) per share and core return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis. The most directly comparable GAAP measure is return on equity. The core return on equity measure should not be considered a substitute for return on equity and does not reflect the overall profitability of the Company's business.
Combined ratio excluding the effects of current year catastrophe losses and prior year reserve development (underlying combined ratio) is a non-GAAP measure, that is computed by subtracting the effect of current year catastrophe losses and prior year development from the combined ratio. The Company believes that this ratio is useful to investors, and it is used by management to highlight the trends in the Company's business that may be obscured by current year catastrophe losses and prior year development. Current year catastrophe losses cause the Company's loss trends to vary significantly between periods as a result of their frequency of occurrence and severity and can have a significant impact on the combined ratio. Prior year development is caused by unexpected loss development on historical reserves. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of the Company's business.
Net loss and LAE excluding the effects of current year catastrophe losses and prior year reserve development (underlying loss and LAE) is a non-GAAP measure that is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and LAE. The Company uses underlying loss and LAE figures to analyze the Company's loss trends that may be impacted by current year catastrophe losses and prior year development on the Company's reserves. As discussed previously, these two items can have a significant impact on the Company's loss trends in a given period. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company's performance. The most directly comparable GAAP measure is net loss and LAE. The underlying loss and LAE measure should not be considered a substitute for net loss and LAE and does not reflect the overall profitability of the Company's business.
Book value per common share, excluding the impact of accumulated other comprehensive loss (underlying book value per common share), is a non-GAAP measure that is computed by dividing common stockholders' equity after excluding accumulated other comprehensive income (loss), by total common shares outstanding plus dilutive potential common shares outstanding. The Company uses the trend in book value per common share, excluding the impact of accumulated other comprehensive income (loss), in conjunction with book value per common share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes this non-GAAP measure is useful to investors because it eliminates the effect of interest rates that can fluctuate significantly from period to period and are generally driven by economic and financial factors that are not influenced by management. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of accumulated other comprehensive income (loss), should not be considered a substitute for book value per common share and does not reflect the recorded net worth of the Company's business.
Discontinued Operations
On May 9, 2024, the Company entered into the Sale Agreement with Forza Insurance Holdings, LLC ("Forza") in which ACIC agreed to sell and Forza agreed to acquire 100% of the issued and outstanding stock of the Company's subsidiary, Interboro Insurance Company ("IIC"). Forza's application to acquire IIC was approved by the New York Department of Financial Services on February 13, 2025 and the sale closed on April 1, 2025. The Company received cash proceeds totaling $25,679,000 from the sale resulting in a loss on disposal of $247,000, net of tax impact. The Company also recognized a $1,348,000 loss, net of tax impact, on IIC's fixed maturity portfolio, which was included in Accumulated other comprehensive loss on the Company's Consolidated Balance Sheet prior to the sale.
Forward-Looking Statements
Statements made in this press release, or on the conference call identified above, and otherwise, that are not historical facts are “forward-looking statements”. The Company believes these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions, or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those expressed in, or implied by, the forward-looking statements. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words such as “may,” “will,” “expect,” "endeavor," "project," “believe,” "plan," “anticipate,” “intend,” “could,” “would,” “estimate” or “continue” or the negative variations thereof or comparable terminology. Factors that could cause actual results to differ materially may be found in the Company's filings with the U.S. Securities and Exchange Commission, in the “Risk Factors” section in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements.
| Consolidated Statements of Comprehensive Income (Unaudited) In thousands, except share and per share amounts | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| REVENUE: | |||||||||||||||
| Gross premiums written | $ | 114,512 | $ | 140,739 | $ | 612,522 | $ | 647,805 | |||||||
| Change in gross unearned premiums | 43,430 | 21,971 | 35,738 | (9,197 | ) | ||||||||||
| Gross premiums earned | 157,942 | 162,710 | 648,260 | 638,608 | |||||||||||
| Ceded premiums earned | (78,623 | ) | (89,218 | ) | (341,408 | ) | (364,618 | ) | |||||||
| Net premiums earned | 79,319 | 73,492 | 306,852 | 273,990 | |||||||||||
| Net investment income | 5,486 | 5,321 | 22,206 | 20,795 | |||||||||||
| Net realized investment gains (losses) | — | — | 1,382 | (124 | ) | ||||||||||
| Net unrealized gains on equity securities | 1,570 | 454 | 4,999 | 1,996 | |||||||||||
| Total revenue | 86,375 | 79,267 | 335,439 | 296,657 | |||||||||||
| EXPENSES: | |||||||||||||||
| Losses and loss adjustment expenses | 9,900 | 29,794 | 46,040 | 69,319 | |||||||||||
| Policy acquisition costs | 24,682 | 26,514 | 97,844 | 70,990 | |||||||||||
| General and administrative expenses | 11,858 | 11,277 | 40,463 | 44,756 | |||||||||||
| Interest expense | 2,660 | 2,784 | 10,815 | 11,996 | |||||||||||
| Total expenses | 49,100 | 70,369 | 195,162 | 197,061 | |||||||||||
| Income before other income | 37,275 | 8,898 | 140,277 | 99,596 | |||||||||||
| Other income (loss) | (657 | ) | (11 | ) | 2,457 | 2,063 | |||||||||
| Income before income taxes | 36,618 | 8,887 | 142,734 | 101,659 | |||||||||||
| Provision for income taxes | 10,054 | 3,019 | 35,939 | 25,340 | |||||||||||
| Income from continuing operations, net of tax | $ | 26,564 | $ | 5,868 | $ | 106,795 | $ | 76,319 | |||||||
| Income (loss) from discontinued operations, net of tax | — | (922 | ) | 42 | (601 | ) | |||||||||
| Net income | $ | 26,564 | $ | 4,946 | $ | 106,837 | $ | 75,718 | |||||||
| OTHER COMPREHENSIVE INCOME: | |||||||||||||||
| Change in net unrealized gains (losses) on investments | 1,161 | (4,049 | ) | 9,806 | 3,355 | ||||||||||
| Reclassification adjustment for net realized investment losses (gains) | — | — | (1,382 | ) | 124 | ||||||||||
| Total comprehensive income | $ | 27,725 | $ | 897 | $ | 115,261 | $ | 79,197 | |||||||
| Weighted average shares outstanding | |||||||||||||||
| Basic | 48,665,133 | 48,095,488 | 48,476,824 | 47,831,412 | |||||||||||
| Diluted | 49,931,377 | 49,589,458 | 49,782,993 | 49,362,985 | |||||||||||
| Earnings available to ACIC common stockholders per share | |||||||||||||||
| Basic | |||||||||||||||
| Continuing operations | $ | 0.55 | $ | 0.12 | $ | 2.20 | $ | 1.60 | |||||||
| Discontinued operations | — | (0.02 | ) | — | (0.01 | ) | |||||||||
| Total | $ | 0.55 | $ | 0.10 | $ | 2.20 | $ | 1.59 | |||||||
| Diluted | |||||||||||||||
| Continuing operations | $ | 0.53 | $ | 0.12 | $ | 2.15 | $ | 1.55 | |||||||
| Discontinued operations | — | (0.02 | ) | — | (0.01 | ) | |||||||||
| Total | $ | 0.53 | $ | 0.10 | $ | 2.15 | $ | 1.54 | |||||||
| Dividends declared per share | $ | 0.75 | $ | 0.50 | $ | 0.75 | $ | 0.50 | |||||||
| Consolidated Balance Sheets (Unaudited) In thousands, except share amounts | |||||||
| December 31, 2025 | December 31, 2024 | ||||||
| ASSETS | |||||||
| Investments, at fair value: | |||||||
| Fixed maturities, available-for-sale | $ | 253,152 | $ | 281,001 | |||
| Equity securities | 61,685 | 36,794 | |||||
| Other investments | 40,053 | 23,623 | |||||
| Total investments | $ | 354,890 | $ | 341,418 | |||
| Cash and cash equivalents | 198,762 | 137,036 | |||||
| Restricted cash | 94,092 | 62,357 | |||||
| Total cash, cash equivalents and restricted cash | $ | 292,854 | $ | 199,393 | |||
| Accrued investment income | 3,156 | 2,964 | |||||
| Property and equipment, net | 723 | 5,736 | |||||
| Premiums receivable, net | 70,447 | 46,564 | |||||
| Reinsurance recoverable on paid and unpaid losses, net | 128,205 | 263,419 | |||||
| Ceded unearned premiums | 109,697 | 160,893 | |||||
| Goodwill | 59,476 | 59,476 | |||||
| Deferred policy acquisition costs, net | 37,815 | 40,282 | |||||
| Intangible assets, net | 3,471 | 5,908 | |||||
| Other assets | 11,998 | 16,816 | |||||
| Assets held for sale | — | 73,243 | |||||
| Total Assets | $ | 1,072,732 | $ | 1,216,112 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Liabilities: | |||||||
| Unpaid losses and loss adjustment expenses | $ | 165,701 | $ | 322,087 | |||
| Unearned premiums | 249,616 | 285,354 | |||||
| Reinsurance payable on premiums | 66,841 | 83,130 | |||||
| Accounts payable and accrued expenses | 112,781 | 86,140 | |||||
| Operating lease liability | 3,135 | 3,323 | |||||
| Notes payable, net | 149,353 | 149,020 | |||||
| Other liabilities | 7,740 | 1,456 | |||||
| Liabilities held for sale | — | 49,942 | |||||
| Total Liabilities | $ | 755,167 | $ | 980,452 | |||
| Stockholders' Equity: | |||||||
| Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding | $ | — | $ | — | |||
| Common stock, $0.0001 par value; 100,000,000 shares authorized; 48,976,885 and 48,417,045 issued, respectively; 48,764,802 and 48,204,962 outstanding, respectively | 5 | 5 | |||||
| Additional paid-in capital | 439,742 | 436,524 | |||||
| Treasury shares, at cost: 212,083 shares | (431 | ) | (431 | ) | |||
| Accumulated other comprehensive loss | (7,242 | ) | (15,666 | ) | |||
| Retained earnings (deficit) | (114,509 | ) | (184,772 | ) | |||
| Total Stockholders' Equity | $ | 317,565 | $ | 235,660 | |||
| Total Liabilities and Stockholders' Equity | $ | 1,072,732 | $ | 1,216,112 | |||
