American Coastal Insurance Corporation

Company overview

Legal structure: Holding company primarily engaged in the commercial property and casualty insurance business in the United States.
Principal operating subsidiary: American Coastal Insurance Company (AmCoastal).
Name history: Changed from United Insurance Holdings Corp. to American Coastal Insurance Corporation on July 10, 2023.
Related operations: Interboro Insurance Company (IIC) previously wrote insurance outside Florida; IIC was sold, with the sale closing April 1, 2025.
- Sale details: Forza Insurance Holdings, LLC acquired 100% of IIC; cash proceeds of $25,679,000; loss on disposal of $247,000 (net of tax); recognized a $1,348,000 loss on IIC’s fixed-maturity portfolio (included in accumulated other comprehensive loss prior to sale). IIC’s results and assets/liabilities are reported in discontinued operations (Note 4).
Financial strength ratings (as of December 31, 2025):
- American Coastal Insurance Company (AmCoastal): Demotech A; Kroll A-
- ACIC: Demotech BBB-
- These ratings support the acceptability of policies in the secondary mortgage market and for mortgage lending.

Core focus: Writing Florida-based commercial property insurance, with emphasis on states where large national carriers reduce policy concentration because of catastrophe risk.
Strategic objective: Be a top-quartile underwriter of catastrophe-exposed property insurance.
Portfolio management: Continuous portfolio optimization to balance risk appetite and underwriting profit opportunities with available capital and reinsurance capacity to achieve consistent profitability for the company and its reinsurers over time.
Capital and risk discipline: Seek a balance of price, underwriting rules, deductibles, and coverages to earn a return on capital that exceeds the cost of capital across market cycles; manage risk through re-underwriting and inspections to ensure appropriate insurance-to-value with verified data quality and integrity.

Primary products (Florida): Commercial multi-peril property insurance for residential condominium associations, apartments, and assisted living facilities.
- Coverage includes buildings, inventory, and equipment against covered causes of loss such as fire, wind, hail, water, theft, and vandalism.
Not-At-Risk offerings: Equipment breakdown, identity theft, and flood policies that earn commissions while ACIC retains no risk of loss (risk ceded to other private companies).
Distribution partnerships:
- AmRisc: Exclusive managing general agency (MGA) relationship for condominium products.
- Skyway Underwriters: Affiliated MGA through which apartment and assisted living products began being written in 2025.
Underwriting and pricing approach:
- Pricing methods include pricing algorithms, judgment-based rating, and consent-to-rate methodologies that incorporate historical attritional loss costs by rating territory, modeled catastrophe losses, and projected reinsurance costs based on property characteristics (geography and structure).
- Portfolio optimization considers probable maximum loss (PML), total insured value (TIV), and average annual loss (AAL).
- Risk analysis uses outputs from third-party modeling software to analyze wind exposures by zip code or street address.
- Data and processes: AI technology assists with the intake and underwriting evaluation process, including guidelines and building characteristics.

Underwriting profitability is measured by the combined ratio (losses + loss adjustment expenses + underwriting expenses divided by earned premiums). A combined ratio below 100% indicates underwriting profit.

United Property & Casualty Insurance Company (UPC) was placed into receivership in 2023; its results prior to receivership are included in discontinued operations and referenced in Note 4 of the Consolidated Financial Statements.
The 2023 and 2024 discussions related to UPC are in ACIC’s 2023 and 2024 Form 10-K filings.