American Coastal Insurance Corporation (ACIC) saw its stock price plummet 7.01% in after-hours trading on Thursday, following the release of the company's financial results for the fourth quarter and full year 2024.

The property and casualty insurer reported a 66.2% year-over-year decline in net income from continuing operations to $5.9 million for the fourth quarter of 2024. This significant drop was primarily driven by a surge in catastrophe losses and higher expenses, despite an increase in premiums written.

For the full year 2024, ACIC's net income fell 10.4% compared to the previous year, weighed down by higher catastrophe losses and operating expenses. The company's combined ratio, a key profitability metric for insurers, deteriorated to 67.5% from 60.9% in 2023, reflecting the impact of catastrophe events during the year.