American Coastal Q2 net income falls driven by lower net premiums earned
ACIC•Outlook
- Company did not provide specific financial guidance for the current quarter or full year
Overview
- US property insurer's Q2 gross premiums written fell 5% yr/yr as market pricing softened
- Q2 net income declined 17% yr/yr, driven by lower net premiums earned
- Book value per share rose 20% yr/yr to $7.21
Result Drivers
- Softening market - Co said lower gross premiums written and earned were due to a 24% decrease in net pricing as the market continued to soften
- Higher loss ratio - Losses and LAE increased 21% yr/yr, with net loss ratio rising to 27% from 19.8%
- Reinsurance renewal - Co said June 1 reinsurance renewal secured broader protection at lower cost, mitigating impact of rate change on net premiums earned
Key Details and Analyst Coverage
| Metric | Beat/Miss | Actual | Consensus Estimate |
| Q2 Gross Premiums Written | $216.30 mln | ||
| Q2 EPS |
