American Coastal Insurance Corp. (NASDAQ: ACIC), a Delaware-based insurer with a market cap of $523 million and a “GREAT” Financial Health Score from InvestingPro, has renewed and expanded its core catastrophe reinsurance program effective June 1, 2025.
Through its subsidiary American Coastal Insurance Company (AmCoastal), the firm raised its occurrence-based limit by 3.9% to approximately $1.676 billion for the 2025/26 period, up from $1.614 billion the prior year. The first event limit increased 5.4% to $1.33 billion, covering windstorm risks in Florida and other perils, designed to protect against a 1-in-201-year event — exceeding the protection level of a 1-in-100-year event plus a 1-in-50-year event in the same season.
The company’s retention levels also rose, with first event retention at $29.75 million (12.6% of stockholders’ equity as of December 31, 2024), compared to $20.5 million previously. The second event retention increased to $18.5 million from $13 million.
American Coastal Insurance has reported a 23.92% revenue growth over the last 12 months. InvestingPro notes the company’s strong financial standing, with a P/E ratio of 7.19 and Return on Equity of 31%, maintaining robust metrics despite higher risk retention.
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