American Coastal Insurance (ACIC) investor relations material

Executive summary

• Net income for Q1 2026 was $19.3 million ($0.39 per share), down from $21.3 million in Q1 2025, primarily due to discontinued operations and lower gross premiums amid a softening commercial property insurance market.

• Gross premiums written declined 24.5% year-over-year to $149.4 million, reflecting increased competition and a 24% decrease in net pricing.

• Combined ratio was 66.0% (up 1 point year-over-year), with underlying combined ratio at 68.3%, both stable and within company targets.

• Book value per share rose 5.4% to $6.86, with tangible book value per share up 6.7% to $5.57.

• Policies in-force increased slightly by 0.4% year-over-year to 4,254 as of March 31, 2026.

Financial highlights

• Net premiums earned were $65.6 million, down 3.9% year-over-year; gross premiums earned fell 12.9% to $141.1 million.

• Loss ratio (net) improved to 15.6% from 16.7% year-over-year; expense ratio was 50.4%, up from 48.3%.

• Return on equity (GAAP) from continuing operations was 24.5%; core return on equity was 24.6%.

• Cash and investments totaled $599.4 million at quarter-end, down 7.5% mainly due to a $36.6 million special dividend payment.

• Book value per share increased to $6.86, up 5.4% from year-end 2025.

Outlook and guidance

• Full-year guidance remains unchanged; Q2 is expected to be the strongest premium production quarter.

• E&S premium growth expected to add about $70 million in written premium for 2026, with about half earning in the current year.

• Management remains focused on disciplined capital deployment, prudent risk selection, and leveraging technology to strengthen competitive positioning.

• No material changes to risk factors or forward-looking statements since the last annual report.

• ACES Specialty Insurance Company approval is pending, but $6.2 million in E&S premiums were assumed in March.