American Coast Insurance Company (ACIC), a Florida-based property and casualty insurance holding company, reported a combined ratio of 66% in the first quarter of 2026, essentially unchanged from 65% in the first quarter of 2025.
The insurer’s total gross written premiums fell $48.5 million, or 24.5%, from $197.9 million in Q1’26 to $149.4 million in Q1’26. Meanwhile, gross premiums fell $21 million, or 13%, to $141.1 million in 1Q26, down from $162.1 million in 1Q25.
ACIC attributed these changes to increased competition and a 24% year-over-year decline in its net pricing as the market weakened.
Meanwhile, ceded premium income for the quarter decreased $18.3 million, or 19.5%, to $75.5 million from $93.8 million in the first quarter of 2025.
The insurer’s total revenue also fell 1.4% in the quarter, to $71 million from $72 million in the first quarter of 2025.
Additionally, losses and LAE decreased $1.2 million, or 10.5%, from $11.4 million in Q1’25 to $10.2 million in Q1’26.
Meanwhile, policy acquisition costs decreased $1.1 million, or 4.7%, to $22.4 million from $23.5 million in the first quarter of 2025, primarily due to lower external management fees due to lower gross premiums.
This was partially offset by lower ceding commission income resulting from a reduction in ACIC’s quota share reinsurance coverage from 20% to 15% effective June 1, 2025.
General and administrative expenses increased $1.2 million, or 12.6%, to $10.7 million in the first quarter of 2026 from $9.5 million in the first quarter of 2025. ACIC reported a 9.8% decline in net income for the quarter to $19.2 million, compared with $21.3 million in the first quarter of 2025.
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.
B. Bradford Martz, President and Chief Executive Officer of American Coast Insurance Company, commented: “I am pleased to report another profitable quarter for American Coast Insurance Company. Our combined ratio of 66.0% and underlying combined ratio of 68.3% remain in line with our targets. More importantly, these ratios are consistent year over year, positioning us to achieve stable profitability throughout the market cycle.
“While commercial markets continue to be in a soft cycle, times like these create opportunities for airlines with discipline, patience and a long-term value creation horizon. We are carefully considering where and how to deploy capital to AI through selective partnerships, targeting commercial real estate business classes and strengthening our competitive position without compromising underwriting standards. Our focus remains on creating value through specialization, talent and prudent risk selection so that US Coast can successfully navigate a very active market.”