American Coastal Insurance Q3 revenue falls

Overview

• Property and casualty insurer's Q3 revenue fell yr/yr as net premiums earned declined

• Q3 net income and EPS both declined over 38% from prior year, reflecting lower net premiums earned

• Gross premiums written rose 3% yr/yr, first increase since early 2025

Outlook

• Company expects to begin writing E&S commercial property in FL, TX and SC in coming months

• Company says it is positioning to benefit from a future hard insurance market

Result Drivers

• LOWER PREMIUMS EARNED - Co said decline in net income was primarily due to lower net premiums earned, which fell as gross premiums earned declined

• SOFTENING MARKET - Co attributed lower gross premiums earned to a 25.6% yr/yr decrease in net pricing amid softening market conditions

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 28 - Employers Holdings Q3 net premiums earned falls

• Oct 27 - Slide Insurance Q3 revenue, net income rise; lifts FY outlook

• Oct 28 - Markel agrees Enstar ADC with $120 million risk premium, reports 91.9% Q3 combined ratio

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)