American Coastal Insurance Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income for the three months ended September 30, 2026, was $19.4 million ($0.40 per diluted share), a 40.3% decrease from $32.5 million ($0.65 per diluted share) in the prior year period.
• Net income for the nine months ended September 30, 2026, was $60.5 million ($1.23 per diluted share), a 24.5% decrease from $80.2 million ($1.61 per diluted share) in the prior year period.
• Total revenue for the third quarter was $70.7 million, down 21.8% year-over-year; for the nine months, it was $224.5 million, down 9.9%.
• Gross premiums written increased 3.2% to $74.1 million in the third quarter but decreased 11.7% to $439.8 million for the nine months.
• Gross premiums earned decreased 14.9% to $138.5 million in the third quarter and 14.7% to $418.3 million for the nine months.
• Net premiums earned decreased 19.0% to $65.5 million in the third quarter and 11.8% to $200.8 million for the nine months.
• The combined ratio for the third quarter was 64.7% (vs. 56.9% in 2025); for the nine months, it was 68.5% (vs. 60.6% in 2025).
• The underlying combined ratio for the third quarter was 68.4% (vs. 57.8% in 2025); for the nine months, it was 68.6% (vs. 62.4% in 2025).
• Core income for the third quarter was $20.4 million ($0.42 per share), down 33.1% year-over-year; for the nine months, it was $56.1 million ($1.14 per share), down 27.9%.
• Core return on equity was 24.1% for the third quarter and 22.1% for the nine months.
• Book value per share was $7.52 as of September 30, 2026, up 15.5% from $6.51 at year-end 2025.
• Total cash, cash equivalents, and restricted cash increased to $707.9 million at September 30, 2026, from $647.7 million at December 31, 2025.
• Total investments decreased to $317.0 million at September 30, 2026, from $354.9 million at December 31, 2025.
• Stockholders' equity increased to $355.7 million at September 30, 2026, from $317.6 million at December 31, 2025.

Guidance and Future Outlook:

• Management stated the company is positioned to benefit meaningfully from the next hard market cycle.
• The company expects to begin writing E&S commercial property through Skyway in Florida, Texas, and South Carolina in the coming months.
• Management believes the company is well positioned to compound significant value for shareholders over the long term.

Business Segments and Product Lines:

• The company returned to year-over-year growth in gross premiums written for the first time since early 2025.
• The AmRisc partnership was placed on a permanent footing, adding $37.3 million of premium so far in 2026.
• The company received its certificate of authority for ACES Specialty.
• Net pricing was down more than 25% year-over-year due to a softening market.
• Ceded premiums earned decreased 10.9% year-over-year in the third quarter to $73.0 million.
• The ceding ratio increased to 52.8% in the third quarter of 2026 from 50.3% in the prior year period.

Market and Competitive Landscape:

• The property and casualty market continued to soften, resulting in decreased net pricing and lower reinsurance pricing.
• The company purchased additional catastrophe reinsurance coverage in 2026 to raise the exhaustion point.
• The company maintains an "A" (Exceptional) Financial Stability Rating from Demotech and an "A" rating with a Stable outlook from KBRA.
• ACIC maintains a "BBB" issuer rating with a Stable outlook from KBRA.

Risks and Challenges:

• Current year catastrophe losses impacted the combined ratio, contributing 4.7% to the third-quarter ratio and 3.1% to the nine-month ratio.
• Prior year reserve favorable development reduced the combined ratio by 8.4% in the third quarter and 3.2% for the nine months.
• The company faces risks related to interest rate fluctuations impacting Accumulated Other Comprehensive Income (AOCI).
• Forward-looking statements note that actual results could differ materially from estimates due to risks and uncertainties.

Management Commentary and Tone:

• B. Bradford Martz, President & CEO, described the results as reflecting "strength of our disciplined underwriting in a softening market."
• Management noted the underlying combined ratio of 68.4% was in line with the first two quarters of the year, indicating portfolio quality remained stable despite rate decreases.
• The tone was confident regarding the company's balance sheet strength and new growth avenues.

Other Key Points:

• The sale of Interboro Insurance Company to Forza Insurance Holdings closed on April 1, 2025, resulting in cash proceeds of $25.7 million and a net loss on disposal of $0.2 million.
• The company recognized a $1.3 million net loss on the fixed maturity portfolio of the sold subsidiary, included in AOCI prior to the sale.
• No dividends were declared for the three or nine months ended September 30, 2026.
• The company hosts a quarterly conference call on October 29, 2026, at 5:00 P.M. ET.
• An earnings presentation is available at investors.amcoastal.com/events-and-presentations.