American Coastal Insurance Corporation has announced its financial results for the third quarter of 2025, reporting a net income of $32.5 million, which compares to the $28.1 million seen in the same period last year.
This increase in revenue was offset by increased policy acquisition costs and general and administrative expenses quarter-over-quarter, partially offset by decreased loss and loss adjustment expenses.
During Q3 2024, the company’s net income attributable to discontinued operations was $450 thousand, while it had no discontinued operations during the third quarter of 2025.
American Coastal also reported a 22.8% decrease in gross written premiums, to $71.8 million, for Q3 2025. This compares to the $93.0 million reported in Q3 2024.
Gross premium earned increased 1.6%, to $162.8 million from $160.2 million for Q3 2024, while ceded premiums earned decreased 4.4%, to $81.9 million for this year’s Q3, from $85.7 million for the third quarter 2024.
Q3 2025 net premiums earned stood at $80.8 million, a slight increase of 8.5% compared to Q3 2024’s $74.5 million. Total revenue was $90.4 million, a 10% increase from the $82.2 million reported in Q3 2024.
The company’s combined ratio went down 0.8 pts in Q3 2025, to 56.9% from 57.7% in Q3 2024.
Loss and LAE decreased by 22.0%, to $9.2 million for this year’s third quarter, from the $11.8 million seen in Q3 2024. Loss and LAE expense as a percentage of net earned premiums decreased 4.4 points to 11.4% for Q3 2025.
Excluding catastrophe losses and reserve development, American Coastal’s gross underlying loss and LAE ratio for Q3 2025, would have been 6.1%, an increase of 1.0 point from 5.1% for Q3 2024.
B. Bradford Martz, President & Chief Executive Officer of American Coastal, commented: “We delivered another strong quarter, achieving year-over-year gains in both revenue and earnings. Our underwriting results continue to demonstrate our expertise and competitive advantage, with an underlying combined ratio of 57.8% for the third quarter and 62.4% year-to-date, outperforming our 65% target combined ratio.
“American Coastal is strategically positioned to deliver superior risk-adjusted returns throughout the market cycle, even as market conditions begin to soften, with a disciplined focus on achieving long-term value creation for our stakeholders.”
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