American Coastal Insurance (ACIC) investor relations material

Executive summary

• Maintained profitability and market leadership in Florida commercial residential property insurance in Q2 2026, despite a softening market, lower net premiums, and increased competition.

• Net income for Q2 2026 was $21.9 million, down 17.2% year-over-year, with core income at $16.5 million and a 68.7% underlying combined ratio.

• Book value per share increased to $7.21, up 10.7% since year-end 2025 and over 20% year-over-year, supported by retained earnings and capital management.

• Specialty E&S segment contributed $28.7 million in premium year-to-date, supporting diversification and future growth.

• Sale of Interboro Insurance Company completed in April 2025, with results now reported as discontinued operations.

Financial highlights

• Gross premiums written declined 5.3% year-over-year to $216.3 million; net premiums earned decreased 11.1% to $69.7 million; total revenue fell 4.5% to $82.6 million.

• Combined ratio for Q2 2026 was 74.3%, up from 60.6% prior year; underlying combined ratio was 68.7%.

• Return on equity was 26.6% for Q2, down from 41.1% prior year.

• Diluted EPS from continuing operations was $0.44 for Q2, down from $0.56 prior year.

• Cash and investments increased to $650.0 million at June 30, 2026.

Outlook and guidance

• Full-year earnings guidance unchanged at $85 million–$100 million, but total revenue guidance revised down to $300 million–$320 million due to pricing environment.

• Management remains focused on underwriting profitability over premium growth as market pricing softens; E&S platform expansion expected to drive growth into new classes and geographies.

• Additional reinsurance purchased in August 2026 lowered first event retention from $49 million to $23.5 million.

• Profitability expected even with three full hurricane retentions.