American Coastal Insurance Q1 2026

A note on a high-quality compounder that is simply too cheap

“Over the long term, it’s hard for a stock to earn a much better return than the business which underlies it earns. If the business earns 6% on capital over 40 years and you hold it for 40 years, you’re not going to make much different than a 6% return — even if you originally buy it at a huge discount. Conversely, if a business earns 18% on capital over 20 or 30 years, even if you pay an expensive-looking price, you’ll end up with one hell of a result.”- Charlie Munger

American Coastal Insurance (ACIC) continues to impress year after year. While the market reacted poorly to the report, we were pleased with the numbers and will discuss these briefly.

Rather than copy and paste numbers anyone can read on their own, I would rather spend time giving you our take on the current earnings, the opportunity we see in the business longer term.

To date we have been wrong on the name in terms of stock price appreciation but have been directionally correct in the operations of the business and the financial results the business has churned out.

By the Numbers