Shares of American Coastal Insurance Corporation (NASDAQ: ACIC) surged 5.26% in after-hours trading on November 6, 2024, after the property and casualty insurer reported stellar financial results for the third quarter ended September 30, 2024.

The company's net income from continuing operations skyrocketed 84.3% year-over-year to $27.7 million, driven by a remarkable 56.4% jump in total revenue to $82.1 million. This impressive top-line growth was fueled by a 48.2% increase in net premiums earned, reflecting ACIC's strong underwriting business expansion and effective risk management strategies.

Notably, ACIC's underwriting profitability improved substantially during the quarter. The company's combined ratio, a key measure of underwriting performance, declined to 57.7% from 62.7% in the prior-year period. This favorable trend was driven by lower catastrophe losses and higher net favorable reserve development, as well as a decrease in reinsurance costs as a percentage of gross earned premiums.