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What were the key takeaways from American Coastal's earnings call?

What factors drove the changes in American Coastal's revenue and profit?

Did American Coastal beat or miss consensus estimates last quarter?

What is American Coastal's gross profit margin?

What is the market's earnings forecast for American Coastal next quarter?

What guidance did American Coastal's management provide for the next earnings period?

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- **Record Q3 Performance**: $42.5M pre-tax earnings, 10% revenue growth, 16% net income expansion.
- **Strategic Premium Management**: 15% YoY premium decline in Q3 (voluntary underwriting controls) → Q4 rebound expected.
- **New ALF Growth Engine**: $100M addressable market, targeting 10%+ share in 2026 with Florida cat fund eligibility.
- **Strong Financial Position**: 56.9% combined ratio vs. 65% target, $695M cash/assets, 37% book value growth.
- **2026 Outlook**: Rebound in premiums + ALF expansion to drive growth; reinsurance costs aligning with softening market.

**【CEO Opening Remarks】**
- Q3 2025: Record $42.5M pre-tax earnings, 10% total revenue growth, 16% YoY net income growth to $32.5M.
- Intentional premium slowdown (15% YoY) during hurricane season to meet modeled AAL target; expects Q4 rebound.
- New ALF program targeting $100M addressable market, writing 10%+ in 2026.

**【CFO Financial Commentary】**
- Core income $30.5M (+12.5% YoY), driven by 20%→15% cat QoS step-down and new business.
- Combined ratio 56.9% (vs. 65% target), non-GAAP underlying ratio 57.8%.
- Policy acquisition costs +21.5% YoY ($4.5M increase in MGA commissions).
- Balance sheet: $695M cash/assets (+28.5%), book value $6.71/share (+37.2% YoY).

**【Q&A Highlights】**
- **Premium Decline Breakdown**: 100% due to stricter underwriting controls vs. 0% suspension; 9% rate decline vs. 13% target.
- **Reinsurance Strategy**: 2026 renewals show ample capacity, costs aligning with primary rates; 2025 cat QoS cost down 10% YoY.
- **ALF Program**: Florida-focused, eligible for state cat fund; targeting $10M+ written in 2026.
- **2026 Outlook**: Q4 premium rebound + new ALF program to drive top-line growth; 2026 Investor Day for full guidance.

American Coastal Insurance Corporation (ACIC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ACIC

ACIC fundamentals

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