Why did ACIC's Q2 2024 EPS fall short of forecasts?

American Coastal Insurance Corp (ACIC) experienced a shortfall in its Q2 2024 Earnings Per Share (EPS), primarily due to a decline in revenue from net premiums written, which was partially offset by a decrease in catastrophe losses and an increase in net investment income.

1. **Revenue Shortfall**: The company's total revenue for Q2 2024 was $68.66 million. This fell short of the estimated revenue of $73.2 million, a difference of approximately 6.5%. The reported revenue decline of 19% year-over-year indicates a decrease in premium income, which could be due to various factors such as market conditions, competition, or changes in policy pricing.
2. **Premiums Written**: The company reported gross premiums written (GPW) of $197.5 million, an increase of 5.5%. However, the net premiums written (NPW) decreased to $68.66 million from $73.2 million, reflecting a 6.4% decline. This suggests that the company retained less premium than expected, which could be a result of strategic decisions regarding policy retention rates or market conditions.
3. **Catastrophe Losses**: ACIC experienced a decrease in catastrophe losses to $11.3 million from $13.3 million. This reduction could contribute to the EPS shortfall, as lower catastrophe losses result in higher net income.
4. **Net Investment Income**: The company's net investment income increased to $2.1 million from $1.7 million, which could partially offset the revenue shortfall and impact the EPS.

In summary, ACIC's Q2 2024 EPS fell short of forecasts due to lower revenue from net premiums written, which was partially offset by a decrease in catastrophe losses and an increase in net investment income.

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|ACIC|ACIC.O|American Coastal|2023 Q3|-27.79305036287662|5.2532E7|186|
|ACIC|ACIC.O|American Coastal|2023 Q4|92.82516272245005|5.1251E7|186|
|ACIC|ACIC.O|American Coastal|2024 Q1|-18.950398582816653|7.3204E7|186|
|ACIC|ACIC.O|American Coastal|2024 Q2|-6.643822577574719|6.8656E7|186|

|code|Ticker|Name|Date|Basic EPS|Estimate EPS|market_code|
|---|---|---|---|---|---|---|
|ACIC|ACIC.O|American Coastal|2024 Q1|0.5|0.25|186|
|ACIC|ACIC.O|American Coastal|2024 Q2|0.4|0.3|186|