Property and casualty insurance holding company American Coast Insurance Company (ACIC) reported net income of $26.6 million in the fourth quarter of 2025, an increase of 437% from $4.9 million in the same period a year earlier.
The company attributed the increase to lower losses and loss adjustment expenses (LAE) compared to Q4’24 when Hurricane Milton made landfall. In 4Q24, ACIC recorded a net loss of $922,000 from discontinued operations, compared with no discontinued operations in 4Q25.
ACIC’s total premiums decreased 18.6% to $114.5 million in the fourth quarter of 2024 from $140.7 million in the fourth quarter of 2024.
Gross premiums written were $157.9 million, down 3% from $162.7 million, while net premiums totaled $79.3 million, up 8% from $73.5 million.
Total revenue for the quarter increased 9% to $86.4 million from $79.3 million.
The company’s combined ratio increased from 91.9% to 58.6%, of which the loss rate was 12.5%, compared with 40.5% in the same period last year, and the expense ratio was 46.1%, compared with 51.4% in the same period last year.
Losses and LAE decreased 66.8% to $9.9 million from $29.8 million.
For the full year 2025, net profit was $106.8 million, an increase of 41.4% from $75.7 million in 2024, driven by an increase in gross premiums earned and a decrease in ceded premiums earned, resulting in an overall increase in revenue.
Total written premiums fell 5.4% to $612.5 million from $647.8 million. Gross premiums increased by 1.5%, from US$638.6 million to US$648.3 million; net premiums increased by 12%, from US$274 million to US$306.9 million.
Total revenue increased 13.1% from $296.7 million to $335.4 million.
The comprehensive ratio in 2025 is 60.1%, an increase of 7.4 percentage points from 67.5%, the loss rate is 15%, compared with 25.3%, and the expense ratio is 45.1%, compared with 42.2%.
Losses and LAE decreased 33.6% to $46 million from $69.3 million.
ACIC also recently renewed the All Other Catastrophe Excess Loss Agreement for 2026, which establishes an occurrence limit of up to $95.6 million above the $10 million add-on point, limiting losses from catastrophe events other than designated storms and earthquakes.
ACIC President and Chief Executive Officer B. Bradford Martz said, “We are proud to achieve quarterly earnings of $26.6 million this year and full year earnings of $106.8 million, or $2.15 per share, exceeding our 2025 guidance. Net premium income was in line with our 2025 Year-over-year guidance was consistent, with revenue up 13.1% year-over-year. “Our underwriting performance remains strong, our underlying combined ratio exceeded our target of 65% for both the quarter and full year, and American Coast continues to strengthen its liquidity position and significantly grow its book value, while delivering special dividends to shareholders each of the past two years to deliver long-term value creation and execute on our future growth plans.” “