Overview

* American Coastal Q2 revenue rises 25.9%, driven by higher net premiums earned

* Net income for Q2 increases 38.8% to $26.4 mln, EPS up 35.9%

* Book value per share climbs 29.6%, reflecting improved financial stability

Outlook

* Company sees positive outlook due to recent credit rating upgrades

* Company continues to grow market share in commercial residential insurance

Result Drivers

* NET PREMIUMS - Increase in net premiums earned by 23.8% contributed to revenue growth

* REINSURANCE COVERAGE - Decrease in quota share reinsurance coverage led to higher policy acquisition costs

* EXPENSE MANAGEMENT - Decrease in general and administrative expenses due to a non-recurring tax credit refund

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Gross $228.35

Premiums mln

Written

Q2 EPS $0.53

Q2 Net $26.44

Income mln

Q2 Core 41.6%

ROE

Analyst Coverage

* The one available analyst rating on the shares is "buy"

* The average consensus recommendation for the property & casualty insurance peer group is "buy"

* Wall Street's median 12-month price target for American Coastal Insurance Corp ( ACIC ) is $20.00, about 48.7% above its August 5 closing price of $10.26

* The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)