American Coastal Insurance's Q2 revenue up 25.9%
Overview
American Coastal Q2 revenue rises 25.9%, driven by higher net premiums earned
Net income for Q2 increases 38.8% to $26.4 mln, EPS up 35.9%
Book value per share climbs 29.6%, reflecting improved financial stability
Outlook
Company sees positive outlook due to recent credit rating upgrades
Company continues to grow market share in commercial residential insurance
Result Drivers
NET PREMIUMS - Increase in net premiums earned by 23.8% contributed to revenue growth
REINSURANCE COVERAGE - Decrease in quota share reinsurance coverage led to higher policy acquisition costs
EXPENSE MANAGEMENT - Decrease in general and administrative expenses due to a non-recurring tax credit refund
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Gross Premiums Written |
| $228.35 mln |
|
Q2 EPS |
| $0.53 |
|
Q2 Net Income |
| $26.44 mln |
|
Q2 Core ROE |
| 41.6% |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the property & casualty insurance peer group is "buy"
Wall Street's median 12-month price target for American Coastal Insurance Corp is $20.00, about 48.7% above its August 5 closing price of $10.26
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 7 three months ago
Press Release: ID:nGNX9jDL9r
