American Coastal Insurance Corporation, a property and casualty insurance holding company, reported a net income of $26.4 million for the second quarter of 2025, representing a 38.8% increase compared to $19.1 million in the same quarter a year earlier.
The company attributed the increase in net income to higher gross premiums earned and decreased ceded premiums earned, which drove overall revenue growth. This was offset by increased policy acquisition costs quarter-over-quarter, partially offset by decreased general and administrative expenses.
Gross premiums written amounted to $228.3 million, a decrease of $1.1 million, or 0.5%, from $229.4 million.
Gross premiums earned increased 6.4% to $165.5 million from $155.5 million.
Net premiums earned totalled $78.4 million, up 23.8% from $63.4 million.
Total revenue reached $86.5 million, a 25.9% increase from $68.7 million.
The company’s combined ratio in Q2’25 was 60.6%, down 4.3 points from 64.9% in Q2’24. This included a loss ratio of 19.8% and an expense ratio of 40.8%, compared to 24.1% and 40.8%, respectively, a year earlier.
Net loss attributable to discontinued operations was $1.6 million, compared to a net loss of $19,000 in the second quarter of 2024.
Loss and LAE increased by $263,000, or 1.7%, to $15.5 million from $15.3 million.
Excluding catastrophe losses and reserve development, American Coastal’s gross underlying loss and LAE ratio would have been 10.2%, down 0.3 points from 10.5%.
B. Bradford Martz, CEO of American Coastal, said, “I’m pleased our team delivered another strong quarter growing both total revenues and underwriting profits year over year. The Company continued to grow its market share in commercial residential given the exceptional actual and expected return on equity. We remain focused on value creation for our shareholders and believe these results, and the recent credit rating upgrades from Kroll Bond Rating Agency, reflect a very positive outlook for American Coastal.”
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