The market expects American Coastal Insurance (ACIC) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expect ...

Core Viewpoint - American Coastal Insurance Corporation is set to release its financial results for Q4 and the full year of 2025 on February 19, 2026, after market close, followed by a conference call at 5:00 p.m. ET [1] Group 1: Financial Results Announcement - The financial results will cover the fourth quarter and the full year ended December 31, 2025 [1] - The conference call will include live remarks and a Q&A session, with participants encouraged to dial in 10 minutes prior to the start [2] Group 2: Conference Call Details - The conference call is scheduled for February 19, 2026, at 5:00 p.m. ET [3] - Participant dial-in numbers are provided: 877-445-9755 for the United States and 201-493-6744 for international callers [3] - The conference call will be available via webcast on the company website and will be archived for approximately 30 days [3] Group 3: Company Overview - American Coastal Insurance Corporation is the holding company for American Coastal Insurance Company, which specializes in insuring condominium and homeowner association properties in Florida [4] - The company has an exclusive partnership with AmRisc Group for the distribution of condominium association properties in Florida [4] - American Coastal Insurance Company has received a Financial Stability Rating of "A", 'Exceptional' from Demotech, and an "A-" insurance financial strength rating with a Positive outlook from Kroll [4] - ACIC holds a 'BBB-' issuer rating with a Positive outlook from Kroll [4]

Core Insights - American Coastal Insurance Corporation (ACIC) is focused on creating shareholder value through revenue and earnings growth initiatives [1] - The company was founded in 2007 to underwrite commercial residential property insurance in Florida, specifically targeting habitational risks such as condominiums and apartments [2][3] Company Overview - ACIC is the market leader for condominium associations in Florida, holding a 1 market share with approximately 4,300 out of 17,000 eligible condominium associations [4] - The company has a premium in-force of $637 million at the end of the third quarter, underwritten in partnership with the AmRisc Group, a leading commercial property managing general agency [4]

Core Viewpoint - American Coastal Insurance is positioning itself for growth through strategic partnerships and the establishment of a new E&S carrier, while providing optimistic financial guidance for 2026 [3][4][12]. Company Overview - American Coastal Insurance, founded in 2007, specializes in underwriting commercial residential property insurance in Florida, focusing on habitational risks such as condominiums and apartments [2]. - The company insures building shells and related structures but does not cover flood, liability, or contents of individual units [2][18]. Market Position - The company claims to be the market leader for Florida condominium associations, with a number one market share and approximately 4,300 of the 17,000 eligible condominium associations [1]. - American Coastal reported $637 million in premium in-force at the end of Q3 [1]. Strategic Initiatives - The company announced a partnership expansion with AmRisc, targeting a 6% participation in AmRisc's nationwide E&S portfolio, which is expected to generate about $75 million in gross written premium by 2026 [6][8][9]. - A new wholly owned E&S carrier, ACES Specialty Insurance Company, is being established with an initial policyholder surplus of $30 million, aiming to transition to direct underwriting [5][12][13]. Financial Guidance - For 2026, American Coastal projects earnings before income tax between $85 million and $100 million, and total revenue between $335 million and $365 million [4][15]. - The company emphasizes a long-term debt-to-capital target of less than 25% and has authorized up to $25 million for share repurchases [4][16]. Reinsurance Strategy - The company plans to retain a small portion of risk to mitigate catastrophe-driven volatility, with a separate catastrophe reinsurance program to cover its share of the portfolio's exposure [10][11]. - Management indicated that retention would likely be capped at approximately $10.8 million, with additional protections in place for catastrophic events [10][16]. Capital Allocation - American Coastal has paid special cash dividends of $0.50 per share in January 2025 and $0.75 per share in January 2026, supporting a stronger capital position [16][17]. - The company has seen steady growth in liquidity and book value over the last 24 months [15][16].

American Coastal Insurance (NasdaqCM:ACIC) Update / briefing January 14, 2026 11:00 AM ET Company ParticipantsLana Castle - CFOBrad Martz - President and CEOBrad MartzHello. I'm Brad Martz, President and CEO of American Coastal Insurance Corporation. Here with me is our CFO, Lana Castle, who will also be presenting, and we welcome you to our Flash Strategic Update. This presentation is intended to share some exciting developments at ACIC that are anticipated to create shareholder value by driving revenue an ...

Core Viewpoint - Investors should closely monitor American Coastal Insurance Corporation (ACIC) stock due to significant movements in the options market, particularly the high implied volatility of the Feb 20, 2026 $9.25 Put option [1] Company Analysis - American Coastal Insurance is currently rated as Zacks Rank 3 (Hold) within the Insurance - Property and Casualty industry, which ranks in the top 39% of the Zacks Industry Rank [3] - Over the past 60 days, one analyst has raised the earnings estimate for the current quarter, while no analysts have lowered their estimates, resulting in a Zacks Consensus Estimate for the current quarter increasing from breakeven earnings per share to 43 cents [3] Options Market Insights - The high implied volatility surrounding American Coastal Insurance shares indicates that options traders are anticipating a significant price movement, which could suggest an upcoming event that may lead to a substantial rally or sell-off [2][4] - Options traders often seek out options with high implied volatility to sell premium, a strategy that aims to benefit from the decay of option value, hoping that the underlying stock does not move as much as initially expected by expiration [4]

Summary of American Coastal Insurance Conference Call Company Overview - **Company**: American Coastal Insurance Corporation (Ticker: ACIC) - **Industry**: Specialty insurance focused on commercial residential property insurance in Florida - **Market Position**: Holds the number one market share, insuring approximately 4,300 out of 17,000 condominium associations in Florida [2][3] Core Business Strategy - **Focus Shift**: Transitioned from personal loans and homeowners insurance to commercial residential insurance, with plans to expand outside Florida [3][4] - **Underwriting Profitability**: Achieved consistent underwriting profit since inception in 2007, even during adverse conditions [4][5] - **Risk Characteristics**: Targets low-rise, garden-style commercial residential buildings with an average total insured value of about $16 million, focusing on properties valued between $5 million and $60 million [5][12] Financial Performance - **2025 Financials**: As of September 2025, gross premium earned was nearly $500 million, with net premium earned at $228 million, reflecting a 15% growth [20][21] - **Return on Equity**: Core return on equity stands at 37.9% [21] - **Stockholders' Equity**: Reported at $1.2 million with total cash and cash equivalents increasing to $270 million from $137 million at the end of 2024 [21][22] Reinsurance Strategy - **Risk Transfer**: Utilizes extensive reinsurance to mitigate volatility, with a main catastrophe reinsurance program covering named hurricanes and tropical storms [16][17] - **Retention Levels**: Retains $30 million on the first event and $19 million on the second event, with total coverage of $1.3 billion [16] - **New Programs**: Introduced an aggregate CAT reinsurance program in 2025, providing additional protection against high-severity, high-frequency catastrophe events [17] Growth Opportunities - **New Product Launches**: Launched new underwriting programs for apartments and assisted living facilities through their own Managing General Agency (MGA) named Skyway [19][20] - **Market Expansion**: Plans to leverage underwriting capabilities to enter new products and geographies, enhancing growth potential [29][30] Capital Allocation and Shareholder Value - **Dividends and Buybacks**: Plans to focus on special dividends, increasing from $0.50 to $0.75 per share for 2024, with potential buybacks contingent on stock price performance [23][24] - **Long-term Leverage Goals**: Aims to maintain a leverage ratio of less than 25% [23] Market Conditions and Outlook - **Insurance Cycle**: Acknowledges the current softening cycle in the insurance market but remains optimistic about underwriting profitability through careful risk selection [14][30] - **Earnings Volatility Management**: Emphasizes the importance of reducing earnings volatility through strategic reinsurance rather than maximizing average earnings [25][26] Key Takeaways - **Strong Financial Position**: The company has a robust capital base and liquidity, allowing for growth without immediate debt financing [22] - **Focus on Underwriting Profit**: Prioritizes underwriting profit over aggressive growth, ensuring sustainable long-term performance [30][31] - **Strategic Partnerships**: Maintains a beneficial partnership with AmRisc for underwriting, while also developing internal capabilities through Skyway [10][11]

Group 1 - American Coastal Insurance Corporation declared a special cash dividend of $0.75 per share, payable on January 9, 2026, to shareholders of record on January 2, 2026 [1] - The company will host a fireside chat on January 14, 2026, to discuss its strategic initiatives, operational strategies, and financial outlook [2] - The fireside chat will be available in listen-only mode on the company's website, and stakeholders can submit questions in advance until December 31, 2025 [3] Group 2 - American Coastal Insurance Corporation is the holding company for American Coastal Insurance Company, which specializes in insuring condominium and homeowner association properties in Florida [4] - The company has an exclusive partnership with AmRisc Group for the distribution of condominium association properties in Florida [4] - American Coastal Insurance Company has received a Financial Stability Rating® of A, Exceptional from Demotech and an A- insurance financial strength rating with a Positive outlook from Kroll [4]

Core Insights - American Coastal Insurance Corporation (ACIC) will participate in several investor conferences in December 2025 to discuss strategic priorities, growth initiatives, and market outlook [1][2]. Company Overview - American Coastal Insurance Corporation is the holding company for American Coastal Insurance Company, which was established in 2007 to insure Condominium and Homeowner Association properties, as well as Apartments in Florida [4]. - The company has an exclusive partnership with AmRisc Group for the distribution of Condominium Association properties in Florida, focusing on hurricane-exposed properties [4]. - American Coastal Insurance Company has received a Financial Stability Rating of "A", "Exceptional" from Demotech, and an "A-" insurance financial strength rating with a Positive outlook from Kroll [4]. - ACIC holds a 'BBB-' issuer rating with a Positive outlook from Kroll [4]. Upcoming Events - The company will present at the Wolfe Research Small and Mid-Cap Conference on December 2, 2025, virtually [5]. - A presentation is scheduled for December 3, 2025, at 1:00 PM ET, with a replay available on the company's website [3]. - The company will also participate in Sidoti's Year End Virtual Investor Conference on December 10-11, 2025, with a live presentation on December 10 at 1:45 PM ET [3][5].

Core Viewpoint - American Coastal Insurance (ACIC) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which aggregates EPS estimates from sell-side analysts for the current and following years [2]. - The recent upgrade reflects a 48.1% increase in the Zacks Consensus Estimate for American Coastal over the past three months, with expected earnings of $2.00 per share for the fiscal year ending December 2025, showing no year-over-year change [9]. Impact on Stock Prices - Changes in earnings estimates are strongly correlated with near-term stock price movements, primarily due to institutional investors who adjust their valuations based on these estimates [5]. - The upgrade to Zacks Rank 2 positions American Coastal in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. - The system maintains a balanced distribution of "buy" and "sell" ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, while the next 15% receive a "Buy" rating [10].