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American Coastal Insurance Corp

American Coastal Insurance Corp

ACIC
$10.25USD↓-1.16%-0.12 today

MARKET CAP

496.8M

P/E (TTM)

5.0x

FWD P/E

9.9x

DAY RANGE

$10 – $11

52W RANGE

$10
$13

AI Summary

Stalk
Sell NowHigh

ACIC is in a Stage 4 decline marked by an active Support Failure pattern and a clear lower-high/lower-low regime. Price trades below declining 9/21 EMAs with failed rally attempts, reinforcing a bearish medium-term posture. Short-term timing remains unfavorable for bullish entries, favoring immediate sell-side execution on continuation or rallies into the EMAs.

  • ↑Earnings yield 1.39% and combined ratio 66% indicate profitable underwriting.
  • ↑Cash and investments grew 28.5% to $695M, supporting buybacks.
  • ↓Q1 2026 revenue dropped 1.4% and EPS to $0.40, missing forecasts.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

American Coastal Insurance Corporation (NASDAQ: ACIC) is a prominent player in the commercial property insurance sector, primarily focusing on regions in Florida. The company operates as a specialty insurance underwriter, navigating the competitive landscape by emphasizing risk management and disciplined underwriting practices. American Coastal has positioned itself to capture growth opportunities, particularly in the excess and surplus (E&S) insurance market, indicating a strategic adaptability to evolving market conditions and legislative changes.

Bull says

  • ↑Earnings yield 1.39% and combined ratio 66% indicate profitable underwriting.
  • ↑Cash and investments grew 28.5% to $695M, supporting buybacks.
  • ↑E&S segment targeting ~$70M premiums by 2026 for expansion.
  • ↑Core ROE topped 34% and book value per share rose 33.2%.
  • ↑Catastrophe reinsurance costs fell ~12.4%, reducing weather risk exposure.
  • ↑High interest rate sensitivity could favor financing returns.

Bear says

  • ↓Q1 2026 revenue dropped 1.4% and EPS to $0.40, missing forecasts.
  • ↓Policy acquisition costs jumped 144.8% YoY, straining underwriting margins.
  • ↓Debt-to-capital at 32% vs. 25% target heightens leverage risk.
  • ↓Negative growth and earnings revisions factors signal potential downturn.
  • ↓Only $5M repurchased hints at cautious capital allocation.
  • ↓Underperformed industry benchmarks amid competitive Florida insurance market.

Investment themes with ACIC

P&C Insurance↑ +0.45%

GWRE · MBI · HCI

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-08-2026neutral

Transcript signals

Bull points

  • During the first quarter of 2026, American Coastal continued to be patient and disciplined in navigating a rapidly softening commercial property insurance market. Most of our risk portfolio continues to produce exceptional results, evidenced by our fantastic loss and combined ratios.
  • This is strong evidence that ACIC continues to protect and defend its market leadership position.
  • I’m pleased to report that our June 1, 2026 Core Catastrophe Reinsurance Program is effectively complete, and we are very pleased with the outcome. The key takeaways are, first, we were able to secure risk-adjusted reinsurance cost decreases that were necessary for us to remain both very competitive and profitable.

Bear points

  • Core income was $19.3 million, a decrease of $1.4 million year-over-year due to decreased net premium earned, partially offset by decreased total expenses.
  • Core income was $19.3 million, a decrease of $1.4 million year-over-year due to decreased net premium earned, partially offset by decreased total expenses.
  • Other income decreased $900,000 in the current year, driven by non-recurring items in 2025.
Read full transcript analysis ›