Jeffrey Wade
American Coastal Insurance Company (AmCoastal) is a Florida-based insurance company that has recently been in the news due to its appearance on Florida's Office of Insurance Regulation's (OIR) 'no-fly list'. This list is designed to keep insolvent insurers' officers out of carrier leadership roles. Despite this, American Coastal Insurance has reported strong first-quarter earnings, with an underlying combined ratio of 57.8% and a core ROE of 69.7%. The company has also expanded its portfolio to include apartment properties and has a strong reinsurance program. So, is American Coastal Insurance going out of business?
| Characteristics | Values |
|---|---|
| Year founded | 2007 |
| Purpose | Insuring Condominium and Homeowner Association properties in the state of Florida |
| Partnerships | AmRisc Group, Skyway Underwriters |
| Reinsurance protection | Two times the Florida minimum requirements |
| Rebranded from | United Property & Casualty Insurance |
| Date of rebranding | 15th of August 2023 |
| Stock symbol | ACIC |
| Financial stability grade | A Exceptional |
| Number of policies | 22,848 |
| Number of policies in Florida | 4,200 |
| Stock market performance | Trading Down 1.1% NASDAQ:ACIC |
| Market cap | $524.63 million |
| Price-to-earnings ratio | 7.28 |
| Beta | -0.28 |
| 52-week low | $8.82 |
| 52-week high | $15.08 |
| Q1'25 net income | $21.3 million |
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What You'll Learn
American Coastal Insurance's financial stability
American Coastal Insurance Company (AmCoastal) was founded in 2007 to insure condominium and homeowner association properties in Florida. In 2023, AmCoastal's parent company, United Insurance Holdings, rebranded itself as American Coastal Insurance Corp after its namesake insurance carrier, United Property & Casualty Insurance Co. (UPC), was deemed insolvent.
Despite this turbulent backdrop, American Coastal Insurance has demonstrated financial stability and strong performance. The company received an "A Exceptional" financial stability grade from the Demotech rating firm in 2023. This rating reflects American Coastal's strong financial position and ability to meet its insurance obligations.
In 2024, American Coastal Insurance reported impressive first-quarter earnings, with an underlying combined ratio of 57.8% and a core ROE of 69.7%. These profitability metrics set the company apart from its peers, and its share price is expected to continue performing well.
Additionally, American Coastal Insurance has strong reinsurance agreements in place to manage their risk exposure. The company's catastrophe reinsurance protection meets or exceeds the standard protection levels for AM Best "A"-rated carriers, providing a robust safety net against potential losses.
In summary, American Coastal Insurance has demonstrated financial stability and a successful business model, positioning itself for continued profitability and resilience in the insurance industry.
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Leadership changes at American Coastal Insurance
American Coastal Insurance (AmCoastal) was founded in 2007 to insure condominium and homeowner association properties in Florida. The company has since expanded its portfolio to include apartment properties. In 2023, United Insurance Holdings, the parent company of United Property & Casualty Insurance (UPC), was deemed insolvent and subsequently rebranded as American Coastal Insurance Corp.
In 2024, American Coastal Insurance underwent significant leadership changes. Florida's Office of Insurance Regulation (OIR) notified 12 people at the publicly traded company that they needed to explain why they should be allowed to remain in office despite a 2002 state law that appeared to forbid insolvent insurers' officers from holding carrier leadership roles. As a result, several officers and directors at American Coastal Insurance were removed or reassigned, including Brad Martz, who was replaced as president by Christopher Griffith, the former chief information officer and chief operating officer. The board of directors was also reduced from 10 members to five.
These leadership changes at American Coastal Insurance appear to be part of a broader effort by Florida regulators to enforce the 2002 state law and prevent insolvent insurers' officers from holding carrier leadership positions. This enforcement action has now involved at least 20 officers at more than 10 Florida insurers. While some industry experts support the law, others argue that it is poorly written and unfairly blames individuals for an industry-wide problem.
Despite these leadership changes and the challenges faced by the insurance industry in Florida, American Coastal Insurance has demonstrated a strong financial performance. The company has reported strong first-quarter earnings, with high profitability metrics and an exceptional financial stability grade from the Demotech rating firm. American Coastal Insurance's contrarian underwriting strategy, which focuses on writing property and casualty insurance in high-risk areas like Florida, has been cited as a key factor in its success. The company's careful reinsurance agreements and low-cost operations have also contributed to its strong performance.
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American Coastal Insurance's parent company
American Coastal Insurance Company (AmCoastal) was founded in 2007 to insure condominium and homeowner association properties in Florida. It has since expanded to include apartment properties. AmCoastal is headquartered in St. Petersburg, Florida, and is a trusted provider for residential condominium and homeowner association properties in the state.
In 2023, United Insurance Holdings, the parent company of United Property & Casualty Insurance Co. (UPC), rebranded itself as American Coastal Insurance Corp. (ACIC) following UPC's insolvency. UPC was founded in 1999 and had up to 180,000 policies in Florida at its peak. However, the company ran into trouble in 2021 when it stopped writing new HO policies in Florida and subsequently pulled out of the Florida, Louisiana, Texas, and New York markets in 2022. After Hurricane Ian hit southwest Florida, where UPC had significant exposure, Florida regulators declared UPC insolvent in early 2023.
As a result of the rebranding, the holding company's stock market symbol changed to "ACIC," and it began trading on NASDAQ under the new symbol on August 15, 2023. American Coastal Insurance has received strong financial stability grades from Demotech and KBRA. The company's financial strength and debt ratings indicate its stable outlook.
In 2024, American Coastal Insurance underwent a significant shakeup due to Florida regulators' enforcement of a 2002 state law regarding insolvent insurers' officers. Several officers and directors were removed or reassigned, and the board of directors was reduced from ten to five members. The company's leadership changes included the appointment of Christopher Griffith as president, previously serving as the chief information officer and chief operating officer.
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American Coastal Insurance's stock performance
American Coastal Insurance Company (ACIC) is a licensed insurance company based in Florida. It was founded in 2007 to insure condominium and homeowner association properties in Florida and has since expanded to include apartment properties. The company's stock is publicly traded on the NASDAQ exchange under the ticker symbol "ACIC".
In terms of stock performance, American Coastal Insurance has experienced some volatility in recent years. In May 2025, the company's stock was trading 1.1% down, with a market cap of $524.63 million, a price-to-earnings ratio of 7.28, and a beta of -0.28. The stock's 52-week range was between $8.82 and $15.08.
Prior to this, in 2023, American Coastal Insurance's parent company, United Insurance Holdings, underwent a rebranding after its namesake insurance carrier, United Property & Casualty Insurance (UPC), was deemed insolvent. This event likely had an impact on the stock performance of American Coastal Insurance, although specific data for this period is not readily available.
It is worth noting that in 2023, the Demotech rating firm gave American Coastal Insurance an "A Exceptional" financial stability grade. This indicates that the company was considered financially stable, which may have positively influenced its stock performance during that time.
Additionally, American Coastal Insurance has faced some leadership changes due to Florida's Office of Insurance Regulation (OIR) enforcing a 2002 state law that aims to keep insolvent insurers' officers out of carrier leadership roles. These changes included the removal or reassignment of several officers and directors, as well as a reduction in the size of the board of directors. The impact of these changes on the stock performance of American Coastal Insurance is unclear, but it may have caused some uncertainty among investors.
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American Coastal Insurance's future
American Coastal Insurance Company (AmCoastal) was founded in 2007 to insure condominium and homeowner association properties in Florida. In 2023, its parent company United Insurance Holdings was rebranded as American Coastal Insurance Corp after United Property & Casualty Insurance was deemed insolvent.
In 2024, American Coastal underwent a leadership shakeup when several officers and directors were removed or reassigned due to Florida's Office of Insurance Regulation (OIR) enforcing a 2002 state law to keep insolvent insurers' officers out of carrier leadership roles. The company's board of directors was reduced from 10 members to five, with Christopher Griffith, formerly the chief information officer and chief operating officer, becoming the new president.
Despite these changes, American Coastal Insurance has demonstrated a remarkable comeback, as evidenced by its strong first-quarter earnings and profitability metrics. The company attributes its success to better rates in high-risk areas like Florida and cost-cutting measures. American Coastal has also benefited from its strong reinsurance agreements and properly priced insurance policies.
Looking forward, American Coastal Insurance plans to maintain its focus on writing property and casualty insurance in high-risk states like Florida and New York. The company's contrarian-like underwriting strategy targets states where the perceived threat of natural catastrophes has caused large national insurance carriers to reduce their presence. By leveraging its expertise and experience in catastrophe-exposed areas, American Coastal aims to continue delivering profitable results and providing valuable insurance solutions to its customers.
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Frequently asked questions
No, American Coastal Insurance is not going out of business. In fact, it has been described as making a "remarkable comeback" with strong first-quarter earnings and profitability.
American Coastal Insurance is currently in a strong position, with a stable outlook and an "A Exceptional" financial stability grade from the Demotech rating firm. The company has a unique underwriting strategy that focuses on high-risk areas, and it has been able to maintain strong profitability metrics.
In 2024, there were reports of a significant shakeup at American Coastal Insurance due to Florida regulators' enforcement of a 2002 state law. Several officers and directors were removed or reassigned, and there were changes in the board of directors and leadership positions. However, American Coastal Insurance has not provided specific details about these changes.
