American Coastal Insurance Corporation presented a growth plan emphasizing discipline at the 17th Annual Midwest IDEAS Conference on August 26, 2026, highlighting a 35.2% return on equity for 2025 and a 25% annualized return in the first half of 2026.
The insurer reported net revenue of $335 million for 2025, with a combined ratio of 60.1% and an underlying combined ratio of 61.5%. Basic earnings per share reached $2.08, while book value per share increased to $6.51 from $2.45 in 2023 and $7.21 in 2026. Shareholders' equity stood at $341 million as of June 30, 2026, up from $318 million at year-end 2025. The company maintained an 85% account retention rate and operated approximately 4,400 policies with $573 million in premiums in force.
Reinsurance strategy was revised with retention lowered to $23.5 million for the 2026–2027 program from an initial $50 million in June 2026. The reinsurance panel expanded from 25 to 31 participants, securing roughly $760 million in multi-year placements, including a 15% quota share with Arch and multi-year catastrophe bonds. The company’s risk-based capital position stood at 1,300%, exceeding Florida’s 350% requirement and its internal target of 600%.
American Coastal also outlined plans for American Coastal E&S Company (ACES), a new excess and surplus lines venture targeting Arizona licensing by year-end 2026 and operations in the second quarter of 2027. Initial capitalization of $30 million is reserved, with a target of $100 million for AM Best rating compliance. The AmRisc E&S portfolio is projected at approximately $70 million on a 12-month basis, focusing initially on Florida, Texas, and South Carolina.
Capital management includes $150 million in senior notes maturing in late 2027, with plans to refinance approximately $75 million. Share buybacks totaling $19.4 million have been executed under a $50 million authorization, leaving $30 million remaining. The company paid special dividends of $0.50 per share in 2024 and $0.75 per share in 2025. Insider ownership, including founder Dan Pitt’s 28% stake, totals roughly 50%.
Management emphasized disciplined underwriting, noting margins remain intact regardless of market conditions. The company targets a long-term debt-to-capital ratio of 25% or less and continues to evaluate capital return options between dividends and buybacks.
