American Coastal Insurance Corporation has announced its financial results for the third quarter of 2025, reporting a net income of $32.5 million, which compares to the $28.1 million seen in the same period last year.
The property and casualty insurance holding company attributed the increase in net income to gross premiums earned growth and decreased ceded premiums earned, driving an overall increase in revenues.
This increase in revenue was offset by increased policy acquisition costs and general and administrative expenses quarter-over-quarter, partially offset by decreased loss and loss adjustment expenses.
During Q3 2024, the company’s net income attributable to discontinued operations was $450 thousand, while it had no discontinued operations during the third quarter of 2025.
American Coastal also reported a 22.8% decrease in gross written premiums, to $71.8 million, for Q3 2025. This compares to the $93.0 million reported in Q3 2024.
Gross premium earned increased 1.6%, to $162.8 million from $160.2 million for Q3 2024, while ceded premiums earned decreased 4.4%, to $81.9 million for this year’s Q3, from $85.7 million for the third quarter 2024.
Q3 2025 net premiums earned stood at $80.8 million, a slight increase of 8.5% compared to Q3 2024’s $74.5 million. Total revenue was $90.4 million, a 10% increase from the $82.2 million reported in Q3 2024.
The company’s combined ratio went down 0.8 pts in Q3 2025, to 56.9% from 57.7% in Q3 2024.
Loss and LAE decreased by 22.0%, to $9.2 million for this year’s third quarter, from the $11.8 million seen in Q3 2024. Loss and LAE expense as a percentage of net earned premiums decreased 4.4 points to 11.4% for Q3 2025.
Excluding catastrophe losses and reserve development, American Coastal’s gross underlying loss and LAE ratio for Q3 2025, would have been 6.1%, an increase of 1.0 point from 5.1% for Q3 2024.
B. Bradford Martz, President & Chief Executive Officer of American Coastal, commented: “We delivered another strong quarter, achieving year-over-year gains in both revenue and earnings. Our underwriting results continue to demonstrate our expertise and competitive advantage, with an underlying combined ratio of 57.8% for the third quarter and 62.4% year-to-date, outperforming our 65% target combined ratio.
“American Coastal is strategically positioned to deliver superior risk-adjusted returns throughout the market cycle, even as market conditions begin to soften, with a disciplined focus on achieving long-term value creation for our stakeholders.”
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