{"success":true,"data":{"pressRelease":{"id":"109942","rtpr_id":"nGNXbrYFgs","ticker":"ACIC","exchange":"NASDAQ","all_tickers":["ACIC"],"title":"American Coastal Insurance Corporation Reports Financial Results for Its Second Quarter Ended June 30, 2026","author":"Globe Newswire","published_at":"2026-08-05T20:01:03.456Z","article_body":"Company to Host Quarterly Conference Call at 5:00 P.M. ET on August 5, 2026\nThe information in this press release should be read in conjunction with an\nearnings presentation that is available on the Company's website at\ninvestors.amcoastal.com/events-and-presentations\n(https://www.globenewswire.com/Tracker?data=HKnGfNdlwTj-OgqHvtSytfRWRFUV1Ws7BiNqw20Owvud_5ihW5y-ScSd_2Lm2IqVXqckIhbYjfsGfIJr1xazo04IG14EQMfTwkSLzQPX3q5f9HIm-O4FF4Soa5JRqhWc6AU9yta7MHtU6H3AaRXyJnQOAt5aRJyM2Abu5ufhWRll7YfzvxWjPx4oEhEakh5R).\n\nST. PETERSBURG, Fla., Aug. 05, 2026 (GLOBE NEWSWIRE) -- American Coastal\nInsurance Corporation (Nasdaq: ACIC) (\"ACIC\" or the \"Company\"), a property and\ncasualty insurance holding company, today reported its financial results for\nthe second quarter ended June 30, 2026.\n\n \n ($ in thousands, except for per share data) Three Months Six Months \n Ended June 30, Ended June 30, \n 2026 2025 Change 2026 2025 Change \n Gross premiums written $ 216,304 $ 228,346 (5.3 )% $ 365,699 $ 426,198 (14.2 )% \n Gross premiums earned 138,730 165,460 (16.2 )% 279,864 327,561 (14.6 )% \n Net premiums earned 69,698 78,443 (11.1 )% 135,309 146,715 (7.8 )% \n Total revenue 82,597 86,467 (4.5 )% 153,821 158,669 (3.1 )% \n Income from continuing operations, net of tax 21,896 28,037 (21.9 )% 41,150 47,748 (13.8 )% \n Income (loss) from discontinued operations, net of tax — (1,595 ) NM — 42 NM \n Consolidated net income $ 21,896 $ 26,442 (17.2 )% $ 41,150 $ 47,790 (13.9 )% \n Net income available to ACIC stockholders per diluted share \n Continuing Operations $ 0.44 $ 0.56 (21.4 )% $ 0.83 $ 0.96 (13.5 )% \n Discontinued Operations — (0.03 ) NM — — NM \n Total $ 0.44 $ 0.53 (17.0 )% $ 0.83 $ 0.96 (13.5 )% \n \n Reconciliation of net income to core income: \n Plus: Non-cash amortization of intangible assets $ 610 $ 610 — % $ 1,220 $ 1,219 0.1 % \n Less: Income (loss) from discontinued operations, net of tax — (1,595 ) NM — 42 NM \n Less: Net realized gains on investment portfolio 3,264 — NM 3,270 1,382 NM \n Less: Unrealized gains on equity securities 4,233 2,231 89.7 % 4,761 268 NM \n Less: Net tax impact ((1)) (1,446 ) (340 ) NM (1,430 ) (91 ) NM \n Core income ((2)) 16,455 26,756 (38.5 )% 35,769 47,408 (24.6 )% \n Core income per diluted share ((2)) $ 0.33 $ 0.54 (38.9 )% $ 0.72 $ 0.96 (25.0 )% \n \n Book value per share $ 7.21 $ 6.00 20.2 % \n\n\n\n (NM = Not Meaningful) \n ((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.) \n ((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.) \n \n\nComments from President & Chief Executive Officer, B. Bradford Martz: \n\n“Our second quarter reflects the discipline we've committed to at every\nstage of the market cycle. As Florida pricing comes off a generational peak,\nwe remain focused on underwriting profitability rather than chasing new\nbusiness at inadequate rates. That brought core income during the quarter to\n$16.5 million while still delivering a 68.7% underlying combined ratio and a\n20% core return on equity, both among the best in the industry.\n\nWhat matters most is that American Coastal got stronger. Book value per share\ngrew more than 20% over the past year to $7.21, Kroll upgraded our rating\nduring the quarter, and our June 1 reinsurance renewal secured broader\nprotection at a lower cost that mitigates much of the impact of rate change on\nnet premiums earned. We built the number one commercial-residential franchise\nin the peak zone for hurricane risk in the world, and our E&S growth platform\nis how we intend to take that same underwriting discipline into other classes\nof commercial property as well as new geographies. With E&S already adding\n$28.7 million of premium year to date and a track record of profitability\nevery year since 2007, we're confident we can keep compounding value and\nextend our business to new markets with sustainable competitive advantages.”\n\nReturn on Equity and Core Return on Equity\n\nThe calculations of the Company's return on equity and core return on equity\nare shown below.\n\n \n ($ in thousands) Three Months Ended Six Months Ended \n June 30, June 30, \n 2026 2025 2026 2025 \n Income from continuing operations, net of tax $ 21,896 $ 28,037 $ 41,150 $ 47,748 \n Return on equity based on GAAP income from continuing operations, net of tax ((1)) 26.6 % 43.6 % 25.0 % 37.1 % \n \n Income (loss) from discontinued operations, net of tax $ — $ (1,595 ) $ — $ 42 \n Return on equity based on GAAP income (loss) from discontinued operations, net of tax ((1)) — % (2.5 )% — % — % \n \n Consolidated net income $ 21,896 $ 26,442 $ 41,150 $ 47,790 \n Return on equity based on GAAP net income ((1)) 26.6 % 41.1 % 25.0 % 37.1 % \n \n Core income $ 16,455 $ 26,756 $ 35,769 $ 47,408 \n Core return on equity ((1)(2)) 20.0 % 41.6 % 21.7 % 36.8 % \n\n\n\n ((1)) (Return on equity for the three and six months ended June 30, 2026 and 2025 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.) \n ((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.) \n \n\nCombined Ratio and Underlying Ratio\n\nThe calculations of the Company's combined ratio and underlying combined ratio\nare shown below.\n\n ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 Change 2026 2025 Change \n \n Loss ratio, net ((1)) 27.0 % 19.8 % 7.2 pts 21.5 % 18.4 % 3.1 pts \n Expense ratio, net ((2)) 47.3 % 40.8 % 6.5 pts 48.8 % 44.3 % 4.5 pts \n Combined ratio (CR) ((3)) 74.3 % 60.6 % 13.7 pts 70.3 % 62.7 % 7.6 pts \n Effect of current year catastrophe losses on CR 4.5 % — % 4.5 pts 2.4 % — % 2.4 pts \n Effect of prior year unfavorable (favorable) development on CR 1.1 % (1.6 )% 2.7 pts (0.7 )% (2.4 )% 1.7 pts \n Underlying combined ratio ((4)) 68.7 % 62.2 % 6.5 pts 68.6 % 65.0 % 3.6 pts \n\n\n\n ((1)) (Loss ratio, net, is calculated as losses and loss adjustment expenses (\"LAE\"), net of losses ceded to reinsurers, relative to net premiums earned.) \n ((2)) (Expense ratio, net, is calculated as the sum of all operating expenses, less interest expense relative to net premiums earned.) \n ((3)) (Combined ratio is the sum of the loss ratio, net, and expense ratio, net.) \n ((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.) \n \n\nCombined Ratio Analysis \n\nThe calculations of the Company's loss ratios and underlying loss ratios are\nshown below.\n\n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 Change 2026 2025 Chan \n ge \n Net loss and LAE $ 18,833 $ 15,540 $ 3,293 $ 29,076 $ 26,929 $ 2,147 \n % of Gross earned premiums 13.6 % 9.4 % 4.2 pts 10.4 % 8.2 % 2.2 pts \n % of Net earned premiums 27.0 % 19.8 % 7.2 pts 21.5 % 18.4 % 3.1 pts \n Less: \n Current year catastrophe losses $ 3,118 $ — $ 3,118 $ 3,232 $ — $ 3,232 \n Prior year reserve unfavorable (favorable) development 767 (1,275 ) 2,042 (899 ) (3,469 ) 2,570 \n Underlying loss and LAE ((1)) $ 14,948 $ 16,815 $ (1,867 ) $ 26,743 $ 30,398 $ (3,655 ) \n % of Gross earned premiums 10.8 % 10.2 % 0.6 pts 9.6 % 9.3 % 0.3 pts \n % of Net earned premiums 21.5 % 21.4 % 0.1 pts 19.8 % 20.7 % (0.9 ) pts \n\n\n\n ((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.) \n \n\nThe calculations of the Company's expense ratios are shown below.\n\n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 Change 2026 2025 Chan \n ge \n Policy acquisition costs $ 22,703 $ 24,257 $ (1,554 ) $ 45,096 $ 47,723 $ (2,627 ) \n General and administrative 10,266 7,778 2,488 20,969 17,284 3,685 \n Total operating expenses $ 32,969 $ 32,035 $ 934 $ 66,065 $ 65,007 $ 1,058 \n % of Gross earned premiums 23.8 % 19.4 % 4.4 pts 23.6 % 19.8 % 3.8 pts \n % of Net earned premiums 47.3 % 40.8 % 6.5 pts 48.8 % 44.3 % 4.5 pts \n \n \n\nQuarter to Date Financial Results\n\nNet income for the second quarter ended June 30, 2026 was $21.9 million, or\n$0.44 per diluted share, compared to net income of $26.4 million, or $0.53 per\ndiluted share, for the second quarter ended June 30, 2025. The primary driver\nof the change in net income during the second quarter of 2026 was lower net\npremiums earned driven by decreased gross premiums earned.\n\nThe Company's total gross written premium decreased by $12.0 million, or 5.3%,\nto $216.3 million for the second quarter ended June 30, 2026, from $228.3\nmillion for the second quarter ended June 30, 2025. Gross premiums earned\ndecreased $26.8 million, or 16.2%, to $138.7 million for the second quarter\nended June 30, 2026 from $165.5 million for the second quarter ended\nJune 30, 2025. These changes are attributed to a 24% decrease in our net\npricing year-over-year as the market continued to soften. Ceded premiums\nearned decreased $18.0 million, or 20.7%, to $69.0 million for the second\nquarter ended June 30, 2026 from $87.0 million for the second quarter ended\nJune 30, 2025. The breakdown of the quarter-over-quarter changes in these\npremiums is shown in the table below. More detail regarding the Company's\nceded premiums can be seen in the \"Reinsurance Costs as a Percentage of Gross\nEarned Premium\" section below.\n\n \n ($ in thousands) Three Months Ended June 30, \n 2026 2025 Change $ Change % \n Gross premiums written $ 216,304 $ 228,346 $ (12,042 ) (5.3 )% \n Change in gross unearned premiums (77,574 ) (62,886 ) (14,688 ) 23.4 % \n Gross premiums earned 138,730 165,460 (26,730 ) (16.2 )% \n Ceded premiums written (203,070 ) (222,652 ) 19,582 (8.8 )% \n Change in ceded unearned premiums 134,038 135,635 (1,597 ) (1.2 )% \n Ceded premiums earned (69,032 ) (87,017 ) 17,985 (20.7 )% \n Net premiums earned $ 69,698 $ 78,443 $ (8,745 ) (11.1 )% \n \n \n\nLosses and LAE increased by $3.3 million, or 21.3%, to $18.8 million for the\nsecond quarter ended June 30, 2026, from $15.5 million for the second quarter\nended June 30, 2025. Loss and LAE expense as a percentage of net earned\npremiums increased 7.2 points to 27.0% for the second quarter ended June 30,\n2026, compared to 19.8% for the second quarter ended June 30, 2025. Excluding\ncatastrophe losses and reserve development, the Company's gross underlying\nloss and LAE ratio for the second quarter ended June 30, 2026, would have\nbeen 10.8%, an increase of 0.6 points, from 10.2% for the second quarter ended\nJune 30, 2025.\n\nPolicy acquisition costs decreased by $1.6 million, or 6.6%, to $22.7 million\nfor the second quarter ended June 30, 2026, from $24.3 million for the second\nquarter ended June 30, 2025, primarily due to decreased external management\nfees as a product of the decrease in gross premiums shown above. This was\npartially offset by a decrease in ceding commission income as a result of the\nCompany's quota share reinsurance coverage decreasing from 20% to 15%,\neffective June 1, 2025.\n\nGeneral and administrative expenses increased by $2.5 million, or 32.1%, to\n$10.3 million for the second quarter ended June 30, 2026, from $7.8 million\nfor the second quarter ended June 30, 2025, driven by increased\nsalary-related expenses, primarily due to a non-recurring employee retention\ntax credit refund that was received during the second quarter of 2025. This\nchange was partially offset by a decrease in amortization. This decrease in\namortization corresponds with the decrease seen in other income.\n\nReinsurance Costs as a Percentage of Gross Earned Premium\n\nReinsurance costs as a percentage of gross earned premium in the second\nquarter of 2026 and 2025 were as follows:\n\n \n 2026 2025 \n Non-at-Risk (0.4 )% (0.3 )% \n Quota Share (11.9 )% (15.1 )% \n All Other (37.5 )% (37.2 )% \n Total Ceding Ratio (49.8 )% (52.6 )% \n \n \n\nCeded premiums earned related to the Company's quota share reinsurance\ncoverage decreased as the result of a decrease in the cession rate from 20% to\n15% effective June 1, 2025. The Company's excess-of-loss coverage remained\nrelatively flat, however, pricing decreases driven by a softening reinsurance\nmarket allowed the Company to purchase additional coverage in the current year\nto both raise the exhaustion point of our catastrophe coverage and replace the\ncoverage lost with the decrease in quota share coverage. These actions\nresulted in a decrease in our overall ceding ratio, while enhancing our\ncoverage in the current year.\n\nInvestment Portfolio Highlights\n\nThe Company's cash, cash equivalents, restricted cash and investment holdings\nincreased from $647.7 million at December 31, 2025, to $650.0 million at\nJune 30, 2026. The Company's cash and investment holdings consist primarily\nof investments in U.S. government and agency securities, corporate debt,\nmutual funds and investment grade money market instruments. Fixed maturities\nrepresented approximately 71.6% of total investments at June 30, 2026,\ncompared to 71.3% of total investments at December 31, 2025. The Company's\nfixed maturity investments had a modified duration of 2.3 years at June 30,\n2026, compared to 2.5 years at December 31, 2025.\n\nBook Value Analysis\n\nBook value per common share increased 10.7% from $6.51 at December 31, 2025,\nto $7.21 at June 30, 2026. Underlying book value per common share increased\n10.9% from $6.66 at December 31, 2025, to $7.39 at June 30, 2026. An\nincrease in the Company's retained earnings as a result of net income for the\nsix months ended June 30, 2026 drove the increase in the Company's book value\nper share. As shown in the table below, removing the effect of Accumulated\nOther Comprehensive Income (\"AOCI\"), caused by capital market conditions,\nincreases the Company's book value per common share at June 30, 2026.\n\n \n ($ in thousands, except for share and per share data) \n June 30, December 31, \n 2026 2025 \n Book Value per Share \n Numerator: \n Common stockholders' equity $ 340,788 $ 317,565 \n Denominator: \n Total Shares Outstanding 47,271,828 48,764,802 \n Book Value Per Common Share $ 7.21 $ 6.51 \n \n Book Value per Share, Excluding the Impact of AOCI \n Numerator: \n Common stockholders' equity $ 340,788 $ 317,565 \n Less: Accumulated other comprehensive loss (8,544 ) (7,242 ) \n Stockholders' Equity, excluding AOCI $ 349,332 $ 324,807 \n Denominator: \n Total Shares Outstanding 47,271,828 48,764,802 \n Underlying Book Value Per Common Share ((1)) $ 7.39 $ 6.66 \n\n\n\n ((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.) \n \n \n\nConference Call Details\n\n Date and Time: August 5, 2026 - 5:00 P.M. ET \n \n Participant Dial-In: (United States): 833-461-5787 (International): 585-542-9983 Meeting ID: 181 721 111 \n \n 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://events.q4inc.com/attendee/181721111 An archive of the webcast will be available for a limited period of time thereafter. \n \n 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 (https://investors.amcoastal.com/events-and-presentations/). \n \n \n\nAbout American Coastal Insurance Corporation\n\nAmerican Coastal Insurance Corporation (amcoastal.com) is the holding company\nof the insurance carrier, American Coastal Insurance Company, which was\nfounded in 2007 for the purpose of insuring Condominium and Homeowner\nAssociation properties, Apartments and Assisted Living Facilities in the state\nof Florida. American Coastal Insurance Company has an exclusive partnership\nfor distribution of Condominium Association properties in the state of Florida\nwith AmRisc Group (amriscgroup.com), one of the largest Managing General\nAgents in the country specializing in hurricane-exposed properties. American\nCoastal Insurance Company has earned an “A”, (“Exceptional”) Financial\nStability Rating from Demotech and maintains an “A” insurance financial\nstrength rating with a Stable outlook from KBRA. ACIC maintains a “BBB”\nissuer rating with a Stable outlook from KBRA.\n\nContact Information:\nAlexander Baty\nVice President, Finance & Investor Relations, American Coastal Insurance Corp.\ninvestorrelations@amcoastal.com\n(727) 425-8076\n\nGlen Akselrod\nPresident & Founder, Bristol Investor Relations\nga@bristolir.com\n(905) 326-1888\n\nDefinitions of Non-GAAP Measures\n\nThe Company believes that investors' understanding of ACIC's performance is\nenhanced by the Company's disclosure of the following non-GAAP measures. The\nCompany's methods for calculating these measures may differ from those used by\nother companies and therefore comparability may be limited.\n\nNet income (loss) excluding the effects of amortization of intangible assets,\nincome (loss) from discontinued operations, realized gains (losses) and\nunrealized gains (losses) on equity securities, net of tax (core income\n(loss)) is a non-GAAP measure that is computed by adding amortization, net of\ntax, to net income (loss) and subtracting income (loss) from discontinued\noperations, net of tax, realized gains (losses) on the Company's investment\nportfolio, net of tax, and unrealized gains (losses) on the Company's equity\nsecurities, net of tax, from net income (loss). Amortization expense is\nrelated to the amortization of intangible assets acquired, including goodwill,\nthrough mergers and, therefore, the expense does not arise through normal\noperations. Investment portfolio gains (losses) and unrealized equity security\ngains (losses) vary independent of the Company's operations. The Company\nbelieves it is useful for investors to evaluate these components both\nseparately and in the aggregate when reviewing the Company's performance. The\nmost directly comparable GAAP measure is net income (loss). The core income\n(loss) measure should not be considered a substitute for net income (loss) and\ndoes not reflect the overall profitability of the Company's business.\n\nCore return on equity is a non-GAAP ratio calculated using non-GAAP measures.\nIt is calculated by dividing the core income (loss) for the period by the\naverage stockholders’ equity for the trailing twelve months (or one quarter\nof such average, in the case of quarterly periods, or one half of such\naverage, in the case of six-month periods). Core income (loss) is an after-tax\nnon-GAAP measure that is calculated by excluding from net income (loss) the\neffect of income (loss) from discontinued operations, net of tax, non-cash\namortization of intangible assets, including goodwill, unrealized gains or\nlosses on the Company's equity security investments and net realized gains or\nlosses on the Company's investment portfolio. In the opinion of the\nCompany’s management, core income (loss), core income (loss) per share and\ncore return on equity are meaningful indicators to investors of the Company's\nunderwriting and operating results, since the excluded items are not\nnecessarily indicative of operating trends. Internally, the Company’s\nmanagement uses core income (loss), core income (loss) per share and core\nreturn on equity to evaluate performance against historical results and\nestablish financial targets on a consolidated basis. The most directly\ncomparable GAAP measure is return on equity. The core return on equity measure\nshould not be considered a substitute for return on equity and does not\nreflect the overall profitability of the Company's business.\n\nCombined ratio excluding the effects of current year catastrophe losses and\nprior year reserve development (underlying combined ratio) is a non-GAAP\nmeasure, that is computed by subtracting the effect of current year\ncatastrophe losses and prior year development from the combined ratio. The\nCompany believes that this ratio is useful to investors, and it is used by\nmanagement to highlight the trends in the Company's business that may be\nobscured by current year catastrophe losses and prior year development.\nCurrent year catastrophe losses cause the Company's loss trends to vary\nsignificantly between periods as a result of their frequency of occurrence and\nseverity and can have a significant impact on the combined ratio. Prior year\ndevelopment is caused by unexpected loss development on historical reserves.\nThe Company believes it is useful for investors to evaluate these components\nboth separately and in the aggregate when reviewing the Company's performance.\nThe most directly comparable GAAP measure is the combined ratio. The\nunderlying combined ratio should not be considered as a substitute for the\ncombined ratio and does not reflect the overall profitability of the Company's\nbusiness.\n\nNet loss and LAE excluding the effects of current year catastrophe losses and\nprior year reserve development (underlying loss and LAE) is a non-GAAP measure\nthat is computed by subtracting the effect of current year catastrophe losses\nand prior year reserve development from net loss and LAE. The Company uses\nunderlying loss and LAE figures to analyze the Company's loss trends that may\nbe impacted by current year catastrophe losses and prior year development on\nthe Company's reserves. As discussed previously, these two items can have a\nsignificant impact on the Company's loss trends in a given period. The Company\nbelieves it is useful for investors to evaluate these components both\nseparately and in the aggregate when reviewing the Company's performance. The\nmost directly comparable GAAP measure is net loss and LAE. The underlying loss\nand LAE measure should not be considered a substitute for net loss and LAE and\ndoes not reflect the overall profitability of the Company's business.\n\nBook value per common share, excluding the impact of accumulated other\ncomprehensive loss (underlying book value per common share), is a non-GAAP\nmeasure that is computed by dividing common stockholders' equity after\nexcluding accumulated other comprehensive income (loss), by total common\nshares outstanding plus dilutive potential common shares outstanding. The\nCompany uses the trend in book value per common share, excluding the impact of\naccumulated other comprehensive income (loss), in conjunction with book value\nper common share to identify and analyze the change in net worth attributable\nto management efforts between periods. The Company believes this non-GAAP\nmeasure is useful to investors because it eliminates the effect of interest\nrates that can fluctuate significantly from period to period and are generally\ndriven by economic and financial factors that are not influenced by\nmanagement. Book value per common share is the most directly comparable GAAP\nmeasure. Book value per common share, excluding the impact of accumulated\nother comprehensive income (loss), should not be considered a substitute for\nbook value per common share and does not reflect the recorded net worth of the\nCompany's business.\n\nDiscontinued Operations\n\nOn May 9, 2024, the Company entered into the Sale Agreement with Forza\nInsurance Holdings, LLC (\"Forza\") in which ACIC agreed to sell and Forza\nagreed to acquire 100% of the issued and outstanding stock of the Company's\nsubsidiary, Interboro Insurance Company (\"IIC\"). Forza's application to\nacquire IIC was approved by the New York Department of Financial Services on\nFebruary 13, 2025 and the sale closed on April 1, 2025. The Company received\ncash proceeds totaling $25,679,000 from the sale resulting in a loss on\ndisposal of $247,000, net of tax impact. The Company also recognized a\n$1,348,000 loss, net of tax impact, on IIC's fixed maturity portfolio, which\nwas included in Accumulated other comprehensive loss on the Company's\nConsolidated Balance Sheet prior to the sale.\n\nForward-Looking Statements\n\nStatements made in this press release, or on the conference call identified\nabove, and otherwise, that are not historical facts are “forward-looking\nstatements”. The Company believes these statements are based on reasonable\nestimates, assumptions and plans. However, if the estimates, assumptions, or\nplans underlying the forward-looking statements prove inaccurate or if other\nrisks or uncertainties arise, actual results could differ materially from\nthose expressed in, or implied by, the forward-looking statements. These\nstatements are made subject to the safe-harbor provisions of the Private\nSecurities Litigation Reform Act of 1995. These forward-looking statements do\nnot relate strictly to historical or current facts and may be identified by\ntheir use of words such as “may,” “will,” “expect,” \"endeavor,\"\n\"project,\" “believe,” \"plan,\" “anticipate,” “intend,” “could,”\n“would,” “estimate” or “continue” or the negative variations\nthereof or comparable terminology. Factors that could cause actual results to\ndiffer materially may be found in the Company's filings with the U.S.\nSecurities and Exchange Commission, in the “Risk Factors” section in the\nCompany's most recent Annual Report on Form 10-K and subsequent Quarterly\nReports on Form 10-Q. Forward-looking statements speak only as of the date on\nwhich they are made, and, except as required by applicable law, the Company\nundertakes no obligation to update or revise any forward-looking statements.\n\n \n Consolidated Statements of Comprehensive Income (Unaudited) In thousands, except share and per share amounts \n \n Three Months Ended Six Months Ended \n June 30, June 30, \n 2026 2025 2026 2025 \n REVENUE: \n Gross premiums written $ 216,304 $ 228,346 $ 365,699 $ 426,198 \n Change in gross unearned premiums (77,574 ) (62,886 ) (85,835 ) (98,637 ) \n Gross premiums earned 138,730 165,460 279,864 327,561 \n Ceded premiums earned (69,032 ) (87,017 ) (144,555 ) (180,846 ) \n Net premiums earned 69,698 78,443 135,309 146,715 \n Net investment income 5,402 5,793 10,481 10,304 \n Net realized investment gains 3,264 — 3,270 1,382 \n Net unrealized gains on equity securities 4,233 2,231 4,761 268 \n Total revenue 82,597 86,467 153,821 158,669 \n EXPENSES: \n Losses and loss adjustment expenses 18,833 15,540 29,076 26,929 \n Policy acquisition costs 22,703 24,257 45,096 47,723 \n General and administrative expenses 10,266 7,778 20,969 17,284 \n Interest expense 2,344 2,719 4,688 5,436 \n Total expenses 54,146 50,294 99,829 97,372 \n Income before other income 28,451 36,173 53,992 61,297 \n Other income (loss) (48 ) 1,379 164 2,449 \n Income before income taxes 28,403 37,552 54,156 63,746 \n Provision for income taxes 6,507 9,515 13,006 15,998 \n Income from continuing operations, net of tax $ 21,896 $ 28,037 $ 41,150 $ 47,748 \n Income (loss) from discontinued operations, net of tax — (1,595 ) — 42 \n Net income $ 21,896 $ 26,442 $ 41,150 $ 47,790 \n OTHER COMPREHENSIVE INCOME: \n Change in net unrealized gains on investments 2,512 3,042 1,268 7,254 \n Reclassification adjustment for net realized investment gains (3,264 ) — (3,270 ) (1,382 ) \n Income tax benefit related to items of other comprehensive income 700 — 700 — \n Total comprehensive income $ 21,844 $ 29,484 $ 39,848 $ 53,662 \n \n Weighted average shares outstanding \n Basic 48,094,148 48,434,446 48,318,586 48,285,665 \n Diluted 49,303,289 49,636,088 49,559,755 49,556,882 \n \n Earnings available to ACIC common stockholders per share \n Basic \n Continuing operations $ 0.46 $ 0.58 $ 0.85 $ 0.99 \n Discontinued operations — (0.03 ) — — \n Total $ 0.46 $ 0.55 $ 0.85 $ 0.99 \n Diluted \n Continuing operations $ 0.44 $ 0.56 $ 0.83 $ 0.96 \n Discontinued operations — (0.03 ) — — \n Total $ 0.44 $ 0.53 $ 0.83 $ 0.96 \n \n Dividends declared per share $ — $ — $ — $ — \n \n\n\n\n Consolidated Balance Sheets (Unaudited) In thousands, except share amounts \n \n June 30, December 31, \n 2026 2025 \n ASSETS \n Investments, at fair value: \n Fixed maturities, available-for-sale $ 238,403 $ 253,152 \n Equity securities 57,049 61,685 \n Other investments 37,347 40,053 \n Total investments $ 332,799 $ 354,890 \n Cash and cash equivalents 218,943 198,762 \n Restricted cash 98,280 94,092 \n Total cash, cash equivalents and restricted cash $ 317,223 $ 292,854 \n Accrued investment income 3,441 3,156 \n Property and equipment, net 869 723 \n Premiums receivable, net 119,915 70,447 \n Reinsurance recoverable on paid and unpaid losses, net 117,435 128,205 \n Ceded unearned premiums 224,760 109,697 \n Goodwill 59,476 59,476 \n Deferred policy acquisition costs, net 54,693 37,815 \n Intangible assets, net 2,203 3,471 \n Other assets 10,980 11,998 \n Total Assets $ 1,243,794 $ 1,072,732 \n LIABILITIES AND STOCKHOLDERS' EQUITY \n Liabilities: \n Unpaid losses and loss adjustment expenses $ 118,920 $ 165,701 \n Unearned premiums 335,452 249,616 \n Reinsurance payable on premiums 203,882 66,841 \n Accounts payable and accrued expenses 79,719 112,781 \n Operating lease liability 3,024 3,135 \n Notes payable, net 149,519 149,353 \n Other liabilities 12,490 7,740 \n Total Liabilities $ 903,006 $ 755,167 \n \n Stockholders' Equity: \n Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding $ — $ — \n Common stock, $0.0001 par value; 100,000,000 shares authorized; 49,288,637 and 48,976,885 issued, respectively; 47,271,828 and 48,764,802 outstanding, respectively 5 5 \n Additional paid-in capital 442,558 439,742 \n Treasury shares, at cost: 2,016,809 shares and 212,083 shares, respectively (19,872 ) (431 ) \n Accumulated other comprehensive loss (8,544 ) (7,242 ) \n Retained earnings (deficit) (73,359 ) (114,509 ) \n Total Stockholders' Equity $ 340,788 $ 317,565 \n Total Liabilities and Stockholders' Equity $ 1,243,794 $ 1,072,732 \n \n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/195a0489-6158-4c95-a4cd-808483b3501b)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNXbrYFgs","title":"American Coastal Insurance Corporation Reports Financial Results for Its Second Quarter Ended June 30, 2026","author":"Globe Newswire","ticker":"ACIC","created":"2026-08-05T20:01:03.456Z","tickers":["ACIC"],"exchange":"NASDAQ","article_body":"Company to Host Quarterly Conference Call at 5:00 P.M. ET on August 5, 2026\nThe information in this press release should be read in conjunction with an\nearnings presentation that is available on the Company's website at\ninvestors.amcoastal.com/events-and-presentations\n(https://www.globenewswire.com/Tracker?data=HKnGfNdlwTj-OgqHvtSytfRWRFUV1Ws7BiNqw20Owvud_5ihW5y-ScSd_2Lm2IqVXqckIhbYjfsGfIJr1xazo04IG14EQMfTwkSLzQPX3q5f9HIm-O4FF4Soa5JRqhWc6AU9yta7MHtU6H3AaRXyJnQOAt5aRJyM2Abu5ufhWRll7YfzvxWjPx4oEhEakh5R).\n\nST. PETERSBURG, Fla., Aug. 05, 2026 (GLOBE NEWSWIRE) -- American Coastal\nInsurance Corporation (Nasdaq: ACIC) (\"ACIC\" or the \"Company\"), a property and\ncasualty insurance holding company, today reported its financial results for\nthe second quarter ended June 30, 2026.\n\n \n ($ in thousands, except for per share data) Three Months Six Months \n Ended June 30, Ended June 30, \n 2026 2025 Change 2026 2025 Change \n Gross premiums written $ 216,304 $ 228,346 (5.3 )% $ 365,699 $ 426,198 (14.2 )% \n Gross premiums earned 138,730 165,460 (16.2 )% 279,864 327,561 (14.6 )% \n Net premiums earned 69,698 78,443 (11.1 )% 135,309 146,715 (7.8 )% \n Total revenue 82,597 86,467 (4.5 )% 153,821 158,669 (3.1 )% \n Income from continuing operations, net of tax 21,896 28,037 (21.9 )% 41,150 47,748 (13.8 )% \n Income (loss) from discontinued operations, net of tax — (1,595 ) NM — 42 NM \n Consolidated net income $ 21,896 $ 26,442 (17.2 )% $ 41,150 $ 47,790 (13.9 )% \n Net income available to ACIC stockholders per diluted share \n Continuing Operations $ 0.44 $ 0.56 (21.4 )% $ 0.83 $ 0.96 (13.5 )% \n Discontinued Operations — (0.03 ) NM — — NM \n Total $ 0.44 $ 0.53 (17.0 )% $ 0.83 $ 0.96 (13.5 )% \n \n Reconciliation of net income to core income: \n Plus: Non-cash amortization of intangible assets $ 610 $ 610 — % $ 1,220 $ 1,219 0.1 % \n Less: Income (loss) from discontinued operations, net of tax — (1,595 ) NM — 42 NM \n Less: Net realized gains on investment portfolio 3,264 — NM 3,270 1,382 NM \n Less: Unrealized gains on equity securities 4,233 2,231 89.7 % 4,761 268 NM \n Less: Net tax impact ((1)) (1,446 ) (340 ) NM (1,430 ) (91 ) NM \n Core income ((2)) 16,455 26,756 (38.5 )% 35,769 47,408 (24.6 )% \n Core income per diluted share ((2)) $ 0.33 $ 0.54 (38.9 )% $ 0.72 $ 0.96 (25.0 )% \n \n Book value per share $ 7.21 $ 6.00 20.2 % \n\n\n\n (NM = Not Meaningful) \n ((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.) \n ((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.) \n \n\nComments from President & Chief Executive Officer, B. Bradford Martz: \n\n“Our second quarter reflects the discipline we've committed to at every\nstage of the market cycle. As Florida pricing comes off a generational peak,\nwe remain focused on underwriting profitability rather than chasing new\nbusiness at inadequate rates. That brought core income during the quarter to\n$16.5 million while still delivering a 68.7% underlying combined ratio and a\n20% core return on equity, both among the best in the industry.\n\nWhat matters most is that American Coastal got stronger. Book value per share\ngrew more than 20% over the past year to $7.21, Kroll upgraded our rating\nduring the quarter, and our June 1 reinsurance renewal secured broader\nprotection at a lower cost that mitigates much of the impact of rate change on\nnet premiums earned. We built the number one commercial-residential franchise\nin the peak zone for hurricane risk in the world, and our E&S growth platform\nis how we intend to take that same underwriting discipline into other classes\nof commercial property as well as new geographies. With E&S already adding\n$28.7 million of premium year to date and a track record of profitability\nevery year since 2007, we're confident we can keep compounding value and\nextend our business to new markets with sustainable competitive advantages.”\n\nReturn on Equity and Core Return on Equity\n\nThe calculations of the Company's return on equity and core return on equity\nare shown below.\n\n \n ($ in thousands) Three Months Ended Six Months Ended \n June 30, June 30, \n 2026 2025 2026 2025 \n Income from continuing operations, net of tax $ 21,896 $ 28,037 $ 41,150 $ 47,748 \n Return on equity based on GAAP income from continuing operations, net of tax ((1)) 26.6 % 43.6 % 25.0 % 37.1 % \n \n Income (loss) from discontinued operations, net of tax $ — $ (1,595 ) $ — $ 42 \n Return on equity based on GAAP income (loss) from discontinued operations, net of tax ((1)) — % (2.5 )% — % — % \n \n Consolidated net income $ 21,896 $ 26,442 $ 41,150 $ 47,790 \n Return on equity based on GAAP net income ((1)) 26.6 % 41.1 % 25.0 % 37.1 % \n \n Core income $ 16,455 $ 26,756 $ 35,769 $ 47,408 \n Core return on equity ((1)(2)) 20.0 % 41.6 % 21.7 % 36.8 % \n\n\n\n ((1)) (Return on equity for the three and six months ended June 30, 2026 and 2025 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.) \n ((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.) \n \n\nCombined Ratio and Underlying Ratio\n\nThe calculations of the Company's combined ratio and underlying combined ratio\nare shown below.\n\n ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 Change 2026 2025 Change \n \n Loss ratio, net ((1)) 27.0 % 19.8 % 7.2 pts 21.5 % 18.4 % 3.1 pts \n Expense ratio, net ((2)) 47.3 % 40.8 % 6.5 pts 48.8 % 44.3 % 4.5 pts \n Combined ratio (CR) ((3)) 74.3 % 60.6 % 13.7 pts 70.3 % 62.7 % 7.6 pts \n Effect of current year catastrophe losses on CR 4.5 % — % 4.5 pts 2.4 % — % 2.4 pts \n Effect of prior year unfavorable (favorable) development on CR 1.1 % (1.6 )% 2.7 pts (0.7 )% (2.4 )% 1.7 pts \n Underlying combined ratio ((4)) 68.7 % 62.2 % 6.5 pts 68.6 % 65.0 % 3.6 pts \n\n\n\n ((1)) (Loss ratio, net, is calculated as losses and loss adjustment expenses (\"LAE\"), net of losses ceded to reinsurers, relative to net premiums earned.) \n ((2)) (Expense ratio, net, is calculated as the sum of all operating expenses, less interest expense relative to net premiums earned.) \n ((3)) (Combined ratio is the sum of the loss ratio, net, and expense ratio, net.) \n ((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.) \n \n\nCombined Ratio Analysis \n\nThe calculations of the Company's loss ratios and underlying loss ratios are\nshown below.\n\n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 Change 2026 2025 Chan \n ge \n Net loss and LAE $ 18,833 $ 15,540 $ 3,293 $ 29,076 $ 26,929 $ 2,147 \n % of Gross earned premiums 13.6 % 9.4 % 4.2 pts 10.4 % 8.2 % 2.2 pts \n % of Net earned premiums 27.0 % 19.8 % 7.2 pts 21.5 % 18.4 % 3.1 pts \n Less: \n Current year catastrophe losses $ 3,118 $ — $ 3,118 $ 3,232 $ — $ 3,232 \n Prior year reserve unfavorable (favorable) development 767 (1,275 ) 2,042 (899 ) (3,469 ) 2,570 \n Underlying loss and LAE ((1)) $ 14,948 $ 16,815 $ (1,867 ) $ 26,743 $ 30,398 $ (3,655 ) \n % of Gross earned premiums 10.8 % 10.2 % 0.6 pts 9.6 % 9.3 % 0.3 pts \n % of Net earned premiums 21.5 % 21.4 % 0.1 pts 19.8 % 20.7 % (0.9 ) pts \n\n\n\n ((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.) \n \n\nThe calculations of the Company's expense ratios are shown below.\n\n Three Months Ended June 30, Six Months Ended June 30, \n 2026 2025 Change 2026 2025 Chan \n ge \n Policy acquisition costs $ 22,703 $ 24,257 $ (1,554 ) $ 45,096 $ 47,723 $ (2,627 ) \n General and administrative 10,266 7,778 2,488 20,969 17,284 3,685 \n Total operating expenses $ 32,969 $ 32,035 $ 934 $ 66,065 $ 65,007 $ 1,058 \n % of Gross earned premiums 23.8 % 19.4 % 4.4 pts 23.6 % 19.8 % 3.8 pts \n % of Net earned premiums 47.3 % 40.8 % 6.5 pts 48.8 % 44.3 % 4.5 pts \n \n \n\nQuarter to Date Financial Results\n\nNet income for the second quarter ended June 30, 2026 was $21.9 million, or\n$0.44 per diluted share, compared to net income of $26.4 million, or $0.53 per\ndiluted share, for the second quarter ended June 30, 2025. The primary driver\nof the change in net income during the second quarter of 2026 was lower net\npremiums earned driven by decreased gross premiums earned.\n\nThe Company's total gross written premium decreased by $12.0 million, or 5.3%,\nto $216.3 million for the second quarter ended June 30, 2026, from $228.3\nmillion for the second quarter ended June 30, 2025. Gross premiums earned\ndecreased $26.8 million, or 16.2%, to $138.7 million for the second quarter\nended June 30, 2026 from $165.5 million for the second quarter ended\nJune 30, 2025. These changes are attributed to a 24% decrease in our net\npricing year-over-year as the market continued to soften. Ceded premiums\nearned decreased $18.0 million, or 20.7%, to $69.0 million for the second\nquarter ended June 30, 2026 from $87.0 million for the second quarter ended\nJune 30, 2025. The breakdown of the quarter-over-quarter changes in these\npremiums is shown in the table below. More detail regarding the Company's\nceded premiums can be seen in the \"Reinsurance Costs as a Percentage of Gross\nEarned Premium\" section below.\n\n \n ($ in thousands) Three Months Ended June 30, \n 2026 2025 Change $ Change % \n Gross premiums written $ 216,304 $ 228,346 $ (12,042 ) (5.3 )% \n Change in gross unearned premiums (77,574 ) (62,886 ) (14,688 ) 23.4 % \n Gross premiums earned 138,730 165,460 (26,730 ) (16.2 )% \n Ceded premiums written (203,070 ) (222,652 ) 19,582 (8.8 )% \n Change in ceded unearned premiums 134,038 135,635 (1,597 ) (1.2 )% \n Ceded premiums earned (69,032 ) (87,017 ) 17,985 (20.7 )% \n Net premiums earned $ 69,698 $ 78,443 $ (8,745 ) (11.1 )% \n \n \n\nLosses and LAE increased by $3.3 million, or 21.3%, to $18.8 million for the\nsecond quarter ended June 30, 2026, from $15.5 million for the second quarter\nended June 30, 2025. Loss and LAE expense as a percentage of net earned\npremiums increased 7.2 points to 27.0% for the second quarter ended June 30,\n2026, compared to 19.8% for the second quarter ended June 30, 2025. Excluding\ncatastrophe losses and reserve development, the Company's gross underlying\nloss and LAE ratio for the second quarter ended June 30, 2026, would have\nbeen 10.8%, an increase of 0.6 points, from 10.2% for the second quarter ended\nJune 30, 2025.\n\nPolicy acquisition costs decreased by $1.6 million, or 6.6%, to $22.7 million\nfor the second quarter ended June 30, 2026, from $24.3 million for the second\nquarter ended June 30, 2025, primarily due to decreased external management\nfees as a product of the decrease in gross premiums shown above. This was\npartially offset by a decrease in ceding commission income as a result of the\nCompany's quota share reinsurance coverage decreasing from 20% to 15%,\neffective June 1, 2025.\n\nGeneral and administrative expenses increased by $2.5 million, or 32.1%, to\n$10.3 million for the second quarter ended June 30, 2026, from $7.8 million\nfor the second quarter ended June 30, 2025, driven by increased\nsalary-related expenses, primarily due to a non-recurring employee retention\ntax credit refund that was received during the second quarter of 2025. This\nchange was partially offset by a decrease in amortization. This decrease in\namortization corresponds with the decrease seen in other income.\n\nReinsurance Costs as a Percentage of Gross Earned Premium\n\nReinsurance costs as a percentage of gross earned premium in the second\nquarter of 2026 and 2025 were as follows:\n\n \n 2026 2025 \n Non-at-Risk (0.4 )% (0.3 )% \n Quota Share (11.9 )% (15.1 )% \n All Other (37.5 )% (37.2 )% \n Total Ceding Ratio (49.8 )% (52.6 )% \n \n \n\nCeded premiums earned related to the Company's quota share reinsurance\ncoverage decreased as the result of a decrease in the cession rate from 20% to\n15% effective June 1, 2025. The Company's excess-of-loss coverage remained\nrelatively flat, however, pricing decreases driven by a softening reinsurance\nmarket allowed the Company to purchase additional coverage in the current year\nto both raise the exhaustion point of our catastrophe coverage and replace the\ncoverage lost with the decrease in quota share coverage. These actions\nresulted in a decrease in our overall ceding ratio, while enhancing our\ncoverage in the current year.\n\nInvestment Portfolio Highlights\n\nThe Company's cash, cash equivalents, restricted cash and investment holdings\nincreased from $647.7 million at December 31, 2025, to $650.0 million at\nJune 30, 2026. The Company's cash and investment holdings consist primarily\nof investments in U.S. government and agency securities, corporate debt,\nmutual funds and investment grade money market instruments. Fixed maturities\nrepresented approximately 71.6% of total investments at June 30, 2026,\ncompared to 71.3% of total investments at December 31, 2025. The Company's\nfixed maturity investments had a modified duration of 2.3 years at June 30,\n2026, compared to 2.5 years at December 31, 2025.\n\nBook Value Analysis\n\nBook value per common share increased 10.7% from $6.51 at December 31, 2025,\nto $7.21 at June 30, 2026. Underlying book value per common share increased\n10.9% from $6.66 at December 31, 2025, to $7.39 at June 30, 2026. An\nincrease in the Company's retained earnings as a result of net income for the\nsix months ended June 30, 2026 drove the increase in the Company's book value\nper share. As shown in the table below, removing the effect of Accumulated\nOther Comprehensive Income (\"AOCI\"), caused by capital market conditions,\nincreases the Company's book value per common share at June 30, 2026.\n\n \n ($ in thousands, except for share and per share data) \n June 30, December 31, \n 2026 2025 \n Book Value per Share \n Numerator: \n Common stockholders' equity $ 340,788 $ 317,565 \n Denominator: \n Total Shares Outstanding 47,271,828 48,764,802 \n Book Value Per Common Share $ 7.21 $ 6.51 \n \n Book Value per Share, Excluding the Impact of AOCI \n Numerator: \n Common stockholders' equity $ 340,788 $ 317,565 \n Less: Accumulated other comprehensive loss (8,544 ) (7,242 ) \n Stockholders' Equity, excluding AOCI $ 349,332 $ 324,807 \n Denominator: \n Total Shares Outstanding 47,271,828 48,764,802 \n Underlying Book Value Per Common Share ((1)) $ 7.39 $ 6.66 \n\n\n\n ((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.) \n \n \n\nConference Call Details\n\n Date and Time: August 5, 2026 - 5:00 P.M. ET \n \n Participant Dial-In: (United States): 833-461-5787 (International): 585-542-9983 Meeting ID: 181 721 111 \n \n 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://events.q4inc.com/attendee/181721111 An archive of the webcast will be available for a limited period of time thereafter. \n \n 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 (https://investors.amcoastal.com/events-and-presentations/). \n \n \n\nAbout American Coastal Insurance Corporation\n\nAmerican Coastal Insurance Corporation (amcoastal.com) is the holding company\nof the insurance carrier, American Coastal Insurance Company, which was\nfounded in 2007 for the purpose of insuring Condominium and Homeowner\nAssociation properties, Apartments and Assisted Living Facilities in the state\nof Florida. American Coastal Insurance Company has an exclusive partnership\nfor distribution of Condominium Association properties in the state of Florida\nwith AmRisc Group (amriscgroup.com), one of the largest Managing General\nAgents in the country specializing in hurricane-exposed properties. American\nCoastal Insurance Company has earned an “A”, (“Exceptional”) Financial\nStability Rating from Demotech and maintains an “A” insurance financial\nstrength rating with a Stable outlook from KBRA. ACIC maintains a “BBB”\nissuer rating with a Stable outlook from KBRA.\n\nContact Information:\nAlexander Baty\nVice President, Finance & Investor Relations, American Coastal Insurance Corp.\ninvestorrelations@amcoastal.com\n(727) 425-8076\n\nGlen Akselrod\nPresident & Founder, Bristol Investor Relations\nga@bristolir.com\n(905) 326-1888\n\nDefinitions of Non-GAAP Measures\n\nThe Company believes that investors' understanding of ACIC's performance is\nenhanced by the Company's disclosure of the following non-GAAP measures. The\nCompany's methods for calculating these measures may differ from those used by\nother companies and therefore comparability may be limited.\n\nNet income (loss) excluding the effects of amortization of intangible assets,\nincome (loss) from discontinued operations, realized gains (losses) and\nunrealized gains (losses) on equity securities, net of tax (core income\n(loss)) is a non-GAAP measure that is computed by adding amortization, net of\ntax, to net income (loss) and subtracting income (loss) from discontinued\noperations, net of tax, realized gains (losses) on the Company's investment\nportfolio, net of tax, and unrealized gains (losses) on the Company's equity\nsecurities, net of tax, from net income (loss). Amortization expense is\nrelated to the amortization of intangible assets acquired, including goodwill,\nthrough mergers and, therefore, the expense does not arise through normal\noperations. Investment portfolio gains (losses) and unrealized equity security\ngains (losses) vary independent of the Company's operations. The Company\nbelieves it is useful for investors to evaluate these components both\nseparately and in the aggregate when reviewing the Company's performance. The\nmost directly comparable GAAP measure is net income (loss). The core income\n(loss) measure should not be considered a substitute for net income (loss) and\ndoes not reflect the overall profitability of the Company's business.\n\nCore return on equity is a non-GAAP ratio calculated using non-GAAP measures.\nIt is calculated by dividing the core income (loss) for the period by the\naverage stockholders’ equity for the trailing twelve months (or one quarter\nof such average, in the case of quarterly periods, or one half of such\naverage, in the case of six-month periods). Core income (loss) is an after-tax\nnon-GAAP measure that is calculated by excluding from net income (loss) the\neffect of income (loss) from discontinued operations, net of tax, non-cash\namortization of intangible assets, including goodwill, unrealized gains or\nlosses on the Company's equity security investments and net realized gains or\nlosses on the Company's investment portfolio. In the opinion of the\nCompany’s management, core income (loss), core income (loss) per share and\ncore return on equity are meaningful indicators to investors of the Company's\nunderwriting and operating results, since the excluded items are not\nnecessarily indicative of operating trends. Internally, the Company’s\nmanagement uses core income (loss), core income (loss) per share and core\nreturn on equity to evaluate performance against historical results and\nestablish financial targets on a consolidated basis. The most directly\ncomparable GAAP measure is return on equity. The core return on equity measure\nshould not be considered a substitute for return on equity and does not\nreflect the overall profitability of the Company's business.\n\nCombined ratio excluding the effects of current year catastrophe losses and\nprior year reserve development (underlying combined ratio) is a non-GAAP\nmeasure, that is computed by subtracting the effect of current year\ncatastrophe losses and prior year development from the combined ratio. The\nCompany believes that this ratio is useful to investors, and it is used by\nmanagement to highlight the trends in the Company's business that may be\nobscured by current year catastrophe losses and prior year development.\nCurrent year catastrophe losses cause the Company's loss trends to vary\nsignificantly between periods as a result of their frequency of occurrence and\nseverity and can have a significant impact on the combined ratio. Prior year\ndevelopment is caused by unexpected loss development on historical reserves.\nThe Company believes it is useful for investors to evaluate these components\nboth separately and in the aggregate when reviewing the Company's performance.\nThe most directly comparable GAAP measure is the combined ratio. The\nunderlying combined ratio should not be considered as a substitute for the\ncombined ratio and does not reflect the overall profitability of the Company's\nbusiness.\n\nNet loss and LAE excluding the effects of current year catastrophe losses and\nprior year reserve development (underlying loss and LAE) is a non-GAAP measure\nthat is computed by subtracting the effect of current year catastrophe losses\nand prior year reserve development from net loss and LAE. The Company uses\nunderlying loss and LAE figures to analyze the Company's loss trends that may\nbe impacted by current year catastrophe losses and prior year development on\nthe Company's reserves. As discussed previously, these two items can have a\nsignificant impact on the Company's loss trends in a given period. The Company\nbelieves it is useful for investors to evaluate these components both\nseparately and in the aggregate when reviewing the Company's performance. The\nmost directly comparable GAAP measure is net loss and LAE. The underlying loss\nand LAE measure should not be considered a substitute for net loss and LAE and\ndoes not reflect the overall profitability of the Company's business.\n\nBook value per common share, excluding the impact of accumulated other\ncomprehensive loss (underlying book value per common share), is a non-GAAP\nmeasure that is computed by dividing common stockholders' equity after\nexcluding accumulated other comprehensive income (loss), by total common\nshares outstanding plus dilutive potential common shares outstanding. The\nCompany uses the trend in book value per common share, excluding the impact of\naccumulated other comprehensive income (loss), in conjunction with book value\nper common share to identify and analyze the change in net worth attributable\nto management efforts between periods. The Company believes this non-GAAP\nmeasure is useful to investors because it eliminates the effect of interest\nrates that can fluctuate significantly from period to period and are generally\ndriven by economic and financial factors that are not influenced by\nmanagement. Book value per common share is the most directly comparable GAAP\nmeasure. Book value per common share, excluding the impact of accumulated\nother comprehensive income (loss), should not be considered a substitute for\nbook value per common share and does not reflect the recorded net worth of the\nCompany's business.\n\nDiscontinued Operations\n\nOn May 9, 2024, the Company entered into the Sale Agreement with Forza\nInsurance Holdings, LLC (\"Forza\") in which ACIC agreed to sell and Forza\nagreed to acquire 100% of the issued and outstanding stock of the Company's\nsubsidiary, Interboro Insurance Company (\"IIC\"). Forza's application to\nacquire IIC was approved by the New York Department of Financial Services on\nFebruary 13, 2025 and the sale closed on April 1, 2025. The Company received\ncash proceeds totaling $25,679,000 from the sale resulting in a loss on\ndisposal of $247,000, net of tax impact. The Company also recognized a\n$1,348,000 loss, net of tax impact, on IIC's fixed maturity portfolio, which\nwas included in Accumulated other comprehensive loss on the Company's\nConsolidated Balance Sheet prior to the sale.\n\nForward-Looking Statements\n\nStatements made in this press release, or on the conference call identified\nabove, and otherwise, that are not historical facts are “forward-looking\nstatements”. The Company believes these statements are based on reasonable\nestimates, assumptions and plans. However, if the estimates, assumptions, or\nplans underlying the forward-looking statements prove inaccurate or if other\nrisks or uncertainties arise, actual results could differ materially from\nthose expressed in, or implied by, the forward-looking statements. These\nstatements are made subject to the safe-harbor provisions of the Private\nSecurities Litigation Reform Act of 1995. These forward-looking statements do\nnot relate strictly to historical or current facts and may be identified by\ntheir use of words such as “may,” “will,” “expect,” \"endeavor,\"\n\"project,\" “believe,” \"plan,\" “anticipate,” “intend,” “could,”\n“would,” “estimate” or “continue” or the negative variations\nthereof or comparable terminology. Factors that could cause actual results to\ndiffer materially may be found in the Company's filings with the U.S.\nSecurities and Exchange Commission, in the “Risk Factors” section in the\nCompany's most recent Annual Report on Form 10-K and subsequent Quarterly\nReports on Form 10-Q. Forward-looking statements speak only as of the date on\nwhich they are made, and, except as required by applicable law, the Company\nundertakes no obligation to update or revise any forward-looking statements.\n\n \n Consolidated Statements of Comprehensive Income (Unaudited) In thousands, except share and per share amounts \n \n Three Months Ended Six Months Ended \n June 30, June 30, \n 2026 2025 2026 2025 \n REVENUE: \n Gross premiums written $ 216,304 $ 228,346 $ 365,699 $ 426,198 \n Change in gross unearned premiums (77,574 ) (62,886 ) (85,835 ) (98,637 ) \n Gross premiums earned 138,730 165,460 279,864 327,561 \n Ceded premiums earned (69,032 ) (87,017 ) (144,555 ) (180,846 ) \n Net premiums earned 69,698 78,443 135,309 146,715 \n Net investment income 5,402 5,793 10,481 10,304 \n Net realized investment gains 3,264 — 3,270 1,382 \n Net unrealized gains on equity securities 4,233 2,231 4,761 268 \n Total revenue 82,597 86,467 153,821 158,669 \n EXPENSES: \n Losses and loss adjustment expenses 18,833 15,540 29,076 26,929 \n Policy acquisition costs 22,703 24,257 45,096 47,723 \n General and administrative expenses 10,266 7,778 20,969 17,284 \n Interest expense 2,344 2,719 4,688 5,436 \n Total expenses 54,146 50,294 99,829 97,372 \n Income before other income 28,451 36,173 53,992 61,297 \n Other income (loss) (48 ) 1,379 164 2,449 \n Income before income taxes 28,403 37,552 54,156 63,746 \n Provision for income taxes 6,507 9,515 13,006 15,998 \n Income from continuing operations, net of tax $ 21,896 $ 28,037 $ 41,150 $ 47,748 \n Income (loss) from discontinued operations, net of tax — (1,595 ) — 42 \n Net income $ 21,896 $ 26,442 $ 41,150 $ 47,790 \n OTHER COMPREHENSIVE INCOME: \n Change in net unrealized gains on investments 2,512 3,042 1,268 7,254 \n Reclassification adjustment for net realized investment gains (3,264 ) — (3,270 ) (1,382 ) \n Income tax benefit related to items of other comprehensive income 700 — 700 — \n Total comprehensive income $ 21,844 $ 29,484 $ 39,848 $ 53,662 \n \n Weighted average shares outstanding \n Basic 48,094,148 48,434,446 48,318,586 48,285,665 \n Diluted 49,303,289 49,636,088 49,559,755 49,556,882 \n \n Earnings available to ACIC common stockholders per share \n Basic \n Continuing operations $ 0.46 $ 0.58 $ 0.85 $ 0.99 \n Discontinued operations — (0.03 ) — — \n Total $ 0.46 $ 0.55 $ 0.85 $ 0.99 \n Diluted \n Continuing operations $ 0.44 $ 0.56 $ 0.83 $ 0.96 \n Discontinued operations — (0.03 ) — — \n Total $ 0.44 $ 0.53 $ 0.83 $ 0.96 \n \n Dividends declared per share $ — $ — $ — $ — \n \n\n\n\n Consolidated Balance Sheets (Unaudited) In thousands, except share amounts \n \n June 30, December 31, \n 2026 2025 \n ASSETS \n Investments, at fair value: \n Fixed maturities, available-for-sale $ 238,403 $ 253,152 \n Equity securities 57,049 61,685 \n Other investments 37,347 40,053 \n Total investments $ 332,799 $ 354,890 \n Cash and cash equivalents 218,943 198,762 \n Restricted cash 98,280 94,092 \n Total cash, cash equivalents and restricted cash $ 317,223 $ 292,854 \n Accrued investment income 3,441 3,156 \n Property and equipment, net 869 723 \n Premiums receivable, net 119,915 70,447 \n Reinsurance recoverable on paid and unpaid losses, net 117,435 128,205 \n Ceded unearned premiums 224,760 109,697 \n Goodwill 59,476 59,476 \n Deferred policy acquisition costs, net 54,693 37,815 \n Intangible assets, net 2,203 3,471 \n Other assets 10,980 11,998 \n Total Assets $ 1,243,794 $ 1,072,732 \n LIABILITIES AND STOCKHOLDERS' EQUITY \n Liabilities: \n Unpaid losses and loss adjustment expenses $ 118,920 $ 165,701 \n Unearned premiums 335,452 249,616 \n Reinsurance payable on premiums 203,882 66,841 \n Accounts payable and accrued expenses 79,719 112,781 \n Operating lease liability 3,024 3,135 \n Notes payable, net 149,519 149,353 \n Other liabilities 12,490 7,740 \n Total Liabilities $ 903,006 $ 755,167 \n \n Stockholders' Equity: \n Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding $ — $ — \n Common stock, $0.0001 par value; 100,000,000 shares authorized; 49,288,637 and 48,976,885 issued, respectively; 47,271,828 and 48,764,802 outstanding, respectively 5 5 \n Additional paid-in capital 442,558 439,742 \n Treasury shares, at cost: 2,016,809 shares and 212,083 shares, respectively (19,872 ) (431 ) \n Accumulated other comprehensive loss (8,544 ) (7,242 ) \n Retained earnings (deficit) (73,359 ) (114,509 ) \n Total Stockholders' Equity $ 340,788 $ 317,565 \n Total Liabilities and Stockholders' Equity $ 1,243,794 $ 1,072,732 \n \n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/195a0489-6158-4c95-a4cd-808483b3501b)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-08-05T20:01:04.71740391Z","server_sent_at_ms":1785960064717},"received_at":"2026-08-05T20:01:04.771Z","source_url":"https://www.globenewswire.com/news-release/2026/08/05/3339645/0/en/american-coastal-insurance-corporation-reports-financial-results-for-its-second-quarter-ended-june-30-2026.html"},"analysis":{"id":"98946","press_release_id":"109942","analysis_json":{"industry":{"label":"Insurance","sector":"Financials"},"redFlags":["GAAP net income decreased 17% YoY due to lower premiums earned","Catastrophe losses impacted the combined ratio by 4.5 points in Q2"],"eventType":"earnings","narrative":"American Coastal reported Q2 net income of $21.9 million ($0.44/share), down 17% year-over-year, driven by lower net premiums earned as pricing softened.\n\nUnderwriting profitability remained robust with a 68.7% underlying combined ratio and core income of $16.5 million, reflecting disciplined risk selection.\n\nBook value per share grew 20% over the past year to $7.21, supported by retained earnings and a 20% core return on equity.","sentiment":"mixed","agentHooks":{"shouldPost":false,"suggestedAngle":"Strong underwriting metrics (UCR 68.7%) support book value growth despite premium decline."},"keyFigures":{"eps":0.44,"revenue":"$82.6 million","guidance":"","revenueYoy":"(4.5%)","customDimensions":{"core_roe":"20.0%","net_income":21896000,"core_income":16455000,"net_premiums_earned":69698000,"book_value_per_share":7.21,"core_income_per_share":0.33,"gross_premiums_written":216304000,"underlying_combined_ratio":"68.7%"}},"quotedText":"What matters most is that American Coastal got stronger. Book value per share grew more than 20% over the past year to $7.21","namedEntities":{"people":[{"name":"B. Bradford Martz","role":"President & CEO"}],"products":[],"companies":[{"name":"American Coastal Insurance Corporation","ticker":"ACIC"},{"name":"American Coastal Insurance Company"},{"name":"AmRisc Group","relationship":"distribution partner"},{"name":"Kroll Bond Rating Agency (KBRA)","relationship":"rating agency"}],"dollarAmounts":[{"amount":"$21.9 million","context":"Q2 2026 net income"},{"amount":"$16.5 million","context":"Q2 2026 core income"},{"amount":"$216.3 million","context":"Q2 2026 gross premiums written"},{"amount":"$25,679,000","context":"cash proceeds from sale of Interboro Insurance Company"}]},"materialImpact":{"score":3,"reasoning":"Core income and combined ratio show strong underwriting discipline and profitability (68.7% underlying combined ratio, 20% core ROE). However, GAAP net income dropped 17% YoY due to lower premiums earned and catastrophe losses. Book value per share grew 20% YoY."},"tickerRelevance":{"others":[],"primary":"ACIC"},"globalImportance":25,"audienceRelevance":20,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"small-mid-cap","eventGravity":"routine_earnings","sectorWeight":"insurance"}},"event_type":"earnings","event_type_secondary":null,"sentiment":"mixed","material_impact_score":3,"narrative":"American Coastal reported Q2 net income of $21.9 million ($0.44/share), down 17% year-over-year, driven by lower net premiums earned as pricing softened.\n\nUnderwriting profitability remained robust with a 68.7% underlying combined ratio and core income of $16.5 million, reflecting disciplined risk selection.\n\nBook value per share grew 20% over the past year to $7.21, supported by retained earnings and a 20% core return on equity.","key_figures":{"eps":0.44,"revenue":"$82.6 million","guidance":"","revenueYoy":"(4.5%)","customDimensions":{"core_roe":"20.0%","net_income":21896000,"core_income":16455000,"net_premiums_earned":69698000,"book_value_per_share":7.21,"core_income_per_share":0.33,"gross_premiums_written":216304000,"underlying_combined_ratio":"68.7%"}},"named_entities":{"people":[{"name":"B. Bradford Martz","role":"President & CEO"}],"products":[],"companies":[{"name":"American Coastal Insurance Corporation","ticker":"ACIC"},{"name":"American Coastal Insurance Company"},{"name":"AmRisc Group","relationship":"distribution partner"},{"name":"Kroll Bond Rating Agency (KBRA)","relationship":"rating agency"}],"dollarAmounts":[{"amount":"$21.9 million","context":"Q2 2026 net income"},{"amount":"$16.5 million","context":"Q2 2026 core income"},{"amount":"$216.3 million","context":"Q2 2026 gross premiums written"},{"amount":"$25,679,000","context":"cash proceeds from sale of Interboro Insurance Company"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-05T22:57:18.433Z","global_importance":25,"audience_relevance":20,"importance_components":{"tickerTier":"small-mid-cap","eventGravity":"routine_earnings","sectorWeight":"insurance"}},"durationMs":38849,"modelName":"glm-4.7"}}