43K voluntary new business policies sold in the quarter, a record for American Integrity, up 54% vs. the second quarter of 2025 and 44% vs. the first quarter of 2026
$46.4 million of income before income taxes, a new quarterly record for American Integrity
Gross premiums written grew 14% year-over-year to $327 million during the quarter
Successfully renewed 2026-2027 catastrophe excess of loss reinsurance program on June 1, 2026 with a risk-adjusted rate decrease at the upper end of 15-20% declines
TAMPA, Fla.--(BUSINESS WIRE)--August 11, 2026--
American Integrity Insurance Group, Inc. ("American Integrity," "we," "us," "our" or the "Company") (NYSE: AII), reported second quarter 2026 results.
Robert Ritchie, Chief Executive Officer, commented, "We produced record voluntary new business policies and pre-tax earnings in the second quarter, which reflect continued momentum across our business and strong execution against our strategic priorities. During the quarter, we saw meaningful acceleration across each of our key growth initiatives, including the Tri-County region of Florida, middle-aged homes and our expansion states."
Mr. Ritchie continued, "We also successfully completed our June 1 reinsurance renewal, improving our overall risk profile while benefiting from meaningful risk adjusted reductions in reinsurance costs. Combined with the continued benefits of Florida's legislative reforms, we believe we are operating from a position of considerable strength and momentum and remain well positioned to deliver profitable growth and long-term value for our stockholders."
Second Quarter 2026 Highlights:
-- Net income of $34.1 million, or $1.74 per diluted share. Adjusted net
income1 of $34.9 million, or $1.78 per diluted share
-- Book value per share of $18.86, up 22.3% over June 30, 2025 and up
10.1% over March 31, 2026
-- Return on equity of 38.7% and Adjusted return on equity1 of 39.6%
-- Policies in-force and in-force premium were 461,714 and $1,029 million,
respectively, up 15.7% and 11.7%, respectively, over June 30, 2025
-- Wrote 126,308 new and renewal policies in the voluntary market, an
increase of 27.9% compared to the second quarter of 2025
-- 7,636 voluntary new business policies in Tri-County region of
Florida compared to 185 in the second quarter of 2025, a 41x
increase
-- 9,062 voluntary new business policies in our middle-aged home
category compared to 437 in the second quarter of 2025, a 21x
increase
-- Stable premium per policy year-over-year across our overall
book
-- Net premiums earned of $104.7 million, an increase of 58.2% compared to
the second quarter of 2025
-- Combined ratio of 63.4% compared to 72.9% in the second quarter of
2025
-- Assumed just 81 policies, as we determined that fewer policies from
Citizens met our underwriting and targeted profitability standards
-- Renewed the Company's catastrophe excess of loss ("CAT XOL")
reinsurance program effective June 1, 2026, providing $3 billion of total
third-party catastrophe coverage at a total estimated cost of $430 - $440
million
-- The Company benefitted from the upper end of 15-20% CAT XOL
risk-adjusted rate decreases, while retaining its 1-in-130 year probable
maximum loss level and reducing its aggregate retention from $95 million
to $75 million
(1) Adjusted net income, adjusted earnings per share and adjusted return on
equity are non-GAAP financial measures. Please see the discussion below under
the heading "Reconciliation of Non-GAAP Financial Measures" for additional
information concerning these and other non-GAAP financial measures.
Second Quarter 2026 Commentary
-- Gross premiums written in the second quarter of 2026 increased by $39.6
million to $326.6 million from $287.0 million in the second quarter of
2025, primarily driven by growth in our voluntary market writings.
-- Gross premiums earned in the second quarter of 2026 increased by $18.6
million to $242.3 million from $223.7 million in the second quarter of
2025.
-- Ceded premiums earned in the second quarter of 2026 decreased by $20.0
million to $137.6 million compared to $157.6 million in the second
quarter of 2025, primarily due to the reduction in our non-catastrophe
quota share reinsurance arrangement.
-- Net premiums earned in the second quarter of 2026 increased by $38.5
million to $104.7 million from $66.2 million in the second quarter of
2025.
-- Net investment income in the second quarter of 2026 increased $1.4
million to $6.2 million compared to $4.8 million in the second quarter of
2025, primarily due to the increase in our invested assets, driven by the
increased in-force premiums and the proceeds from our IPO.
-- Losses and loss adjustment expenses ("LAE") for the second quarter of
2026 increased $12.0 million to $33.2 million compared to $21.2 million
for the second quarter of 2025. The loss and loss adjustment expenses
ratio was 30.6% for the second quarter of 2026 which was consistent with
the second quarter of 2025 of 30.6%. The net underlying loss and loss
adjustment expense ratio was 30.6% for the second quarter of 2026, down
from 33.1% for the second quarter of 2025.
-- Policy acquisition expenses and general and administrative expenses in
the second quarter of 2026 were $17.4 million and $18.2 million,
respectively, compared to $6.3 million and $22.9 million, respectively,
in the second quarter of 2025. Period over period changes were due to
record setting new business production in the second quarter of 2026, the
absence of one-time IPO-related expenses, the reduction in our
non-catastrophe quota share reinsurance arrangement from 40% to 25% on
January 1, 2026 and the benefit of Citizens take-outs in 2025.
-- The expense ratio was 32.8% for the second quarter of 2026 compared to
42.3% for the second quarter of 2025. The combined ratio was 63.4% for
the second quarter of 2026 compared to 72.9% for the second quarter of
2025.
(2) Net underlying loss and loss adjustment expense ratio is a non-GAAP
financial measure. Please see the discussion below under the heading
"Reconciliation of Non-GAAP Financial Measures" for additional information
concerning this and other non-GAAP financial measures.
Results of Operations
Three Months Ended June 30,
---------------------------------------------------
($ in thousands,
except per share
data) 2026 2025 $ Change % Change
------------- ------------- --------- ----------
Gross premiums
written $ 326,592 $ 286,995 $ 39,597 13.8%
Change in gross
unearned
premiums (84,341) (63,255) (21,086) 33.3%
-------- -------- ------- ------
Gross premiums
earned 242,251 223,740 18,511 8.3%
Ceded premiums
earned (137,555) (157,571) 20,016 (12.7)%
-------- -------- ------- ------
Net premiums
earned 104,696 66,169 38,527 58.2%
Policy fees 3,711 2,967 744 25.1%
Net investment
income 6,250 4,780 1,470 30.8%
Net realized
gains (losses)
on investments (2) 485 (487) (100.4)%
Other income 516 98 418 426.5%
-------- -------- ------- ------
Total Revenues 115,171 74,499 40,672 54.6%
-------- -------- ------- ------
Losses and loss
adjustment
expenses 33,151 21,189 11,962 56.5%
Policy
acquisition
expenses 17,410 6,281 11,129 177.2%
General and
administrative
expenses 18,186 22,932 (4,746) (20.7)%
-------- -------- ------- ------
Total Expenses 68,747 50,402 18,345 36.4%
-------- -------- ------- ------
Income
before
taxes 46,424 24,097 22,327 92.7%
Income tax
(benefit)
expense 12,278 (3,397) 15,675 (461.4)%
-------- -------- ------- ------
Net Income $ 34,146 $ 27,494 $ 6,652 24.2%
-------- -------- ------- ------
Book value per
share(1) $ 18.86 $ 15.42 $ 3.44 22.3%
Loss ratio(2) 30.6% 30.6%
Expense ratio(3) 32.8% 42.3%
Combined
ratio(4) 63.4% 72.9%
Return on
equity(5) 38.7% 45.1%
(1) Book value per share is the ratio of shareholders' equity to shares
outstanding, each as of the balance sheet date.
(2) Loss ratio is the ratio of losses and LAE to net premiums earned plus
policy fees.
(3) Expense ratio is the ratio of policy acquisition expenses and general
and administrative expenses to net premiums earned plus policy fees.
(4) Combined ratio is defined as the sum of the loss ratio and the expense
ratio.
(5) Return on equity is defined as net income, divided by the average
beginning and ending shareholders' equity during the applicable period.
This metric is annualized for interim periods by multiplying the
applicable ratio in order to present return on equity consistently.
Six Months Ended June 30,
---------------------------------------------------
($ in thousands,
except per share
data) 2026 2025 $ Change % Change
------------- ------------- --------- ----------
Gross premiums
written $ 546,596 $ 499,145 $ 47,451 9.5%
Change in gross
unearned
premiums (73,573) (65,249) (8,324) 12.8%
-------- -------- ------- ------
Gross premiums
earned 473,023 433,896 39,127 9.0%
Ceded premiums
earned (286,119) (302,325) 16,206 (5.4)%
-------- -------- ------- ------
Net premiums
earned 186,904 131,571 55,333 42.1%
Policy fees 6,456 5,171 1,285 24.9%
Net investment
income 11,902 8,883 3,019 34.0%
Net realized
gains (losses)
on investments 51 501 (450) (89.8)%
Other income 789 259 530 204.6%
-------- -------- ------- ------
Total Revenues 206,102 146,385 59,717 40.8%
-------- -------- ------- ------
Losses and loss
adjustment
expenses 64,876 42,051 22,825 54.3%
Policy
acquisition
expenses 33,395 9,388 24,007 255.7%
General and
administrative
expenses 34,152 27,940 6,212 22.2%
-------- -------- ------- ------
Total Expenses 132,423 79,379 53,044 66.8%
-------- -------- ------- ------
Income
before
taxes 73,679 67,006 6,673 10.0%
Income tax
expense 19,623 1,416 18,207 1285.8%
-------- -------- ------- ------
Net Income $ 54,056 $ 65,590 $(11,534) (17.6)%
-------- -------- ------- ------
Book value per
share(1) $ 18.86 $ 15.42 $ 3.44 22.3%
Loss ratio(2) 33.6% 30.8%
Expense ratio(3) 34.9% 27.3%
Combined
ratio(4) 68.5% 58.1%
Return on
equity(5) 30.6% 56.5%
(1) Book value per share is the ratio of shareholders' equity to shares
outstanding, each as of the balance sheet date.
(2) Loss ratio is the ratio of losses and LAE to net premiums earned plus
policy fees.
(3) Expense ratio is the ratio of policy acquisition expenses and general
and administrative expenses to net premiums earned plus policy fees.
(4) Combined ratio is defined as the sum of the loss ratio and the expense
ratio.
(5) Return on equity is defined as net income, divided by the average
beginning and ending shareholders' equity during the applicable period.
This metric is annualized for interim periods by multiplying the
applicable ratio in order to present return on equity consistently.
Policies in-force and in-force premium
Policies in-force represents the number of active insurance policies with coverage in effect as of the end of the period referenced. In-force premium represents the annual premium for active insurance policies with coverage in effect as of the end of the period referenced.
June 30,
--------------------------------
($ in thousands) 2026 2025 % Change
---------- -------- ----------
Policies In-Force 461,714 399,138 15.7%
In-Force Premium $1,029,387 $921,252 11.7%
Policies in-force were 461,714 as of June 30, 2026, an increase of 15.7% compared to policies in-force of 399,138 as of June 30, 2025, and an increase of 5.6% compared to policies in-force of 437,308 as of March 31, 2026. The increase in our policies in-force was primarily due to new policies written through the voluntary market and the 2025 Citizens take-outs.
Reconciliation of Non-GAAP Financial Measures:
Adjusted net income and adjusted earnings per share
Adjusted net income is a non-GAAP financial measure defined as net income excluding net realized gains or losses on investments, stock compensation expense incurred in connection with our IPO, and certain non-recurring or non-cash expenses, including those incurred in connection with our IPO, net of tax. We use adjusted net income as an internal performance measure in the management of our operations because we believe it gives us and users of our financial information useful insight into our results of operations and our underlying business performance excluding the impact of realized gains and losses on the sale of securities, and one time items, which we do not view as core to the underlying trends in our business. Adjusted net income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define adjusted net income differently.
Net income increased $6.6 million, or 24.2%, to $34.1 million for the three months ended June 30, 2026 from $27.5 million for the three months ended June 30, 2025. Adjusted net income increased by $3.6 million, or 11.4%, to $34.9 million from $31.3 million for the three months ended June 30, 2025.
Adjusted earnings per share is a non-GAAP measure, which is calculated as adjusted net income available to common shareholders divided by weighted average diluted common shares outstanding. Management believes this metric is meaningful, as it allows investors to evaluate underlying profitability and enhances comparability across periods by excluding items that are heavily impacted by investment market fluctuations and other economic factors and are not indicative of operating trends.
Adjusted net income and adjusted earnings per share for the three and six months ended June 30, 2026 and 2025 reconcile to net income and earnings per share, respectively, as follows:
Three Months Ended June Six Months Ended June
30, 30,
------------------------- ------------------------
($ in thousands,
except per share
data) 2026 2025 2026 2025
------------ ----------- ----------- -----------
Net Income $ 34,146 $ 27,494 $ 54,056 $ 65,590
Add:
Stock
compensation(1)(5) -- 10,433 -- 10,433
Termination of
MSA(1) -- 3,000 -- 3,000
One-time IPO
expenses(1) -- 1,654 -- 1,654
One-time bonus
expenses(1) -- 1,387 -- 1,387
Executive
transition
cost(1)(2) 920 -- 920 --
Less:
Net realized
gains (losses)
on investments (2) 485 51 501
Change in tax
status(3) -- 9,722 -- 9,722
Tax effect(4)(5) 194 2,467 183 2,464
---------- ---------- ---------- ----------
Adjusted net income $ 34,874 $ 31,294 $ 54,742 $ 69,377
Adjusted income
allocated to
participating
securities -- -- -- 2,190
---------- ---------- ---------- ----------
Numerator:
Adjusted net income
available for
common
shareholders $ 34,874 $ 31,294 $ 54,742 $ 67,187
Denominator:
Weighted average
common shares
outstanding:
Basic 19,586,994 16,962,075 19,583,036 15,152,075
Diluted 19,590,448 16,962,075 19,584,870 15,152,075
Earnings per share:
Basic $ 1.74 $ 1.62 $ 2.76 $ 4.18
---------- ---------- ---------- ----------
Diluted $ 1.74 $ 1.62 $ 2.76 $ 4.18
---------- ---------- ---------- ----------
Adjusted earnings per
share:
Basic $ 1.78 $ 1.84 $ 2.80 $ 4.43
---------- ---------- ---------- ----------
Diluted $ 1.78 $ 1.84 $ 2.80 $ 4.43
---------- ---------- ---------- ----------
(1) Material non-recurring items that we do not expect to continue in the
future and believe are not reflective of our ongoing operations and our
performance.
(2) Costs associated with the change in a key executive leadership
position.
(3) The change in tax status of the Company from a non-taxable entity to a
taxable corporation incurred in connection with the IPO resulted in
recognition of a deferred income tax benefit.
(4) We included the tax impact of all adjustments to adjusted net income
using the U.S. federal statutory corporate tax rate of 21%. While the
Company's actual effective tax rates for the three months ended June
30, 2026 and 2025 were 26.4% and (14.1)%, respectively, and for the six
months ended June 30, 2026 and 2025 were 26.6% and 2.1%, respectively,
the use of the statutory rate provides a consistent and simplified
approach for comparability. This approach is applied uniformly,
including to items that may be partially or fully nondeductible for tax
purposes. The tax effect row is presented exclusive of the change in
tax status impact.
(5) Stock-based compensation expense recognized of $10,433 for the three
and six months ended June 30, 2025, approximately $4,241 was
nondeductible for U.S. federal income tax purposes.
Adjusted return on equity
Adjusted return on equity is a non-GAAP financial measure defined as adjusted net income divided by the average of beginning and ending shareholders' equity during the applicable period and is annualized for periods of less than one year. We use adjusted return on equity as an internal performance measure in the management of our operations because we believe it gives us and users of our financial information useful insight into our underlying business performance. Adjusted return on equity should not be viewed as a substitute for any metrics calculated in accordance with GAAP, and other companies may define adjusted return on equity differently.
Adjusted return on equity for the three and six months ended June 30, 2026 and 2025 reconciles to return on equity as follows:
Three Months Ended June 30,
-----------------------------------
($ in thousands) 2026 2025
------------------- --------------
Net income $ 34,146 $ 27,494
Average beginning and ending
shareholders' equity(1) 352,501 243,966
---------- --- ---------
Return on equity 38.7% 45.1%
Adjusted net income (after tax) $ 34,874 $ 31,294
Average shareholders' equity 352,501 243,966
Adjusted return on equity(2) 39.6% 51.3%
Six Months Ended June 30,
---------------------------------
($ in thousands) 2026 2025
------------------ -------------
Net income $ 54,056 $ 65,590
Average beginning and ending
shareholders' equity(1) 353,270 232,133
--------- --- --------
Return on equity 30.6% 56.5%
Adjusted net income (after tax) $ 54,742 $ 69,377
Average shareholders' equity 353,270 232,133
Adjusted return on equity(2) 31.0% 59.8%
(1) Average beginning and ending shareholders' equity represents the
average of shareholders' equity at the beginning and end of the period
presented.
(2) Adjusted return on equity is the adjusted net income (after tax)
divided by the average beginning and ending shareholders' equity.
Net underlying loss and loss adjustment expense ratio
Net underlying loss and loss adjustment expense ratio is a non-GAAP measure. We calculate the net underlying loss and loss adjustment expense ratio by subtracting current year net catastrophe losses and prior year net reserve development from total net losses and LAE and dividing that amount by the sum of total net premiums earned plus policy fees. We use the net underlying loss and LAE ratio to allow us to analyze our loss trends before the impact of catastrophe losses and prior year reserve development. These two items can have a significant impact on our loss trends in a given period. We believe it is useful for investors to evaluate these components both separately and in the aggregate when reviewing our performance. The most directly comparable GAAP measure is the net loss and LAE ratio. The net underlying loss and LAE ratio should not be considered a substitute for the net loss and LAE ratio and does not reflect the overall profitability of our business.
The following tables summarize the loss and LAE ratios and the net underlying loss and LAE ratios for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30,
-------------------------------------
($ in thousands) 2026 2025
------------------- ----------------
Total Net Premiums Earned $ 104,696 $ 66,169
Plus: Policy Fees 3,711 2,967
---------- --- --------
Total Net Premiums Earned Plus Policy
Fees 108,407 69,136
Losses and Loss Adjustment Expenses,
Net $ 33,151 $ 21,189
Loss and Loss Adjustment Expense
Ratio (% Net Premiums Earned Plus
Policy Fees) 30.6% 30.6%
Less:
Current Year Net Catastrophe
Losses -- --
Prior Year Net Reserve
Development -- (1,695)
---------- --- --------
Underlying Loss and Loss Adjustment
Expenses, Net $ 33,151 $ 22,884
Net Underlying Loss and Loss
Adjustment Expense Ratio (% Net
Premiums Earned Plus Policy Fees) 30.6% 33.1%
Six Months Ended June 30,
---------------------------------
($ in thousands) 2026 2025
------------------ -------------
Total Net Premiums Earned $ 186,904 $ 131,571
Plus: Policy Fees 6,456 5,171
--------- --- --------
Total Net Premiums Earned Plus Policy
Fees 193,360 136,742
Losses and Loss Adjustment Expenses,
Net $ 64,876 $ 42,051
Loss and Loss Adjustment Expense Ratio
(% Net Premiums Earned Plus Policy
Fees) 33.6% 30.8%
Less:
Current Year Net Catastrophe
Losses -- --
Prior Year Net Reserve Development -- (1,117)
--------- --- --------
Underlying Loss and Loss Adjustment
Expenses, Net $ 64,876 $ 43,168
Net Underlying Loss and Loss Adjustment
Expense Ratio (% Net Premiums Earned
Plus Policy Fees) 33.6% 31.6%
Gross underlying loss and loss adjustment expense ratio
Gross underlying loss and loss adjustment expense ratio is a non-GAAP measure. We calculate the gross underlying loss and LAE ratio by adding net underlying loss and LAE and ceded non-catastrophe losses and dividing that amount by the sum of total gross premiums earned and policy fees. We use the gross underlying loss and LAE ratio to analyze our loss trends before the impact of reinsurance.
We believe it is useful for investors to evaluate the cost of non-catastrophe losses for every dollar of gross premiums earned. The most comparable GAAP measure is the net loss and LAE ratio. The gross underlying loss and LAE ratio should not be considered a substitute for net loss and LAE ratio and does not reflect the overall profitability of our business.
The following tables summarize the gross underlying loss and LAE ratios for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30,
-----------------------------------
($ in thousands) 2026 2025
------------------- --------------
Total Gross Premiums Earned $ 242,251 $ 223,740
Plus: Policy Fees 3,711 2,967
---------- --- ---------
Total Gross Premiums Earned Plus
Policy Fees 245,962 226,707
Losses and Loss Adjustment Expenses,
Net 33,151 21,189
Less:
Current Year Net Catastrophe Losses -- --
Prior Year Net Reserve Development -- (1,695)
---------- --- ---------
Underlying Loss and Loss Adjustment
Expenses, Net $ 33,151 $ 22,884
Add:
Ceded Non-Catastrophe Loss and
Loss Adjustment Expense 11,443 12,356
---------- --- ---------
Gross Underlying Loss and Loss
Adjustment Expenses $ 44,594 $ 35,240
Loss and Loss Adjustment Expense
Ratio (% Net Premiums Earned Plus
Policy Fees) 30.6% 30.6%
Gross Underlying Loss and Loss
Adjustment Expense Ratio (% Gross
Premiums Earned Plus Policy Fees) 18.1% 15.5%
Six Months Ended June 30,
---------------------------------
($ in thousands) 2026 2025
------------------ -------------
Total Gross Premiums Earned $ 473,023 $ 433,896
Plus: Policy Fees 6,456 5,171
--------- --- --------
Total Gross Premiums Earned Plus Policy
Fees 479,479 439,067
Losses and Loss Adjustment Expenses,
Net 64,876 42,051
Less:
Current Year Net Catastrophe Losses -- --
Prior Year Net Reserve Development -- (1,117)
--------- --- --------
Underlying Loss and Loss Adjustment
Expenses, Net $ 64,876 $ 43,168
Add:
Ceded Non-Catastrophe Loss and
Loss Adjustment Expense 24,205 26,376
--------- --- --------
Gross Underlying Loss and Loss
Adjustment Expenses $ 89,081 $ 69,544
Loss and Loss Adjustment Expense Ratio
(% Net Premiums Earned Plus Policy
Fees) 33.6% 30.8%
Gross Underlying Loss and Loss
Adjustment Expense Ratio (% Gross
Premiums Earned Plus Policy Fees) 18.6% 15.8%
Conference Call
As previously announced, American Integrity will hold a conference call to discuss its second quarter 2026 results at 9:30 a.m. Eastern Time on August 12, 2026. The call can be accessed by dialing +1 (585) 542-9983 (U.S. Local), or +1 (833) 461-5787 (U.S. Toll-Free), and using the conference ID code: 889411051. Please call the conference telephone number 10 minutes before the start time. The earnings call can also be accessed by clicking the webcast link available on the Investor Relations section of the Company's website at www.aii.com.
A replay of the call will be available after 12:00 p.m. Eastern Time on the same day as the call and will be accessible at https://events.q4inc.com/analyst/889411051?pwd=IvBYx9vK. The replay can also be accessed via the Investor Relations section of the Company's website at www.aii.com.
The replay will be available for one year.
About American Integrity Insurance Group, Inc.
American Integrity Insurance Group, Inc. (NYSE: AII) is a leading provider of residential property insurance, focused on delivering innovative, reliable coverage to homeowners throughout the Southeast. Built on a foundation of integrity, resilience, and service, the Company's mission is to be the most trusted and responsive insurance solution in the markets it serves. Founded in 2006 and headquartered in Tampa, American Integrity is committed to protecting policyholders with strength and purpose--today and for generations to come. For more information, visit www.aii.com.
Forward-Looking Statements
Certain statements in this press release and on the related teleconference call may be forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding: our outlook; our business strategy; writing new business and retaining existing policies; new insurance products; availability of reinsurance coverage; expectations regarding future growth; future Citizens take-out opportunities; anticipated future operating results and operating expenses, cash flows, capital resources and liquidity; reserves for losses and loss adjustment expenses; geographic expansion; reduction of our quota share and its impact on our results; competition; future regulatory, judicial and legislative changes; forecasts of future revenues and appropriately planning our expenses; and our plans regarding our capital expenditures and investment portfolios. In some cases, you can identify forward-looking statements by terms such as "anticipates," "believes," "contemplates," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "should," "targets," "will," "would" or the negative of these terms or other similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance, and are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the potential that we may face significant losses due to being a property and casualty insurer and our exposure to catastrophic events and severe weather conditions; our loss reserves are estimates and may be inadequate to cover our actual liability for losses, and actual claims incurred have exceeded, and in the future may exceed, reserves established for claims; the dependence of our financial results on the regulatory, legal, economic and weather conditions in Florida due to the fact that we conduct substantially all of our business in Florida; changing climate conditions may increase the severity and frequency of catastrophic events and severe weather conditions; the severity and frequency of catastrophe events of which are unpredictable; dependence upon the effectiveness of exclusions and other loss limitation methods in the insurance policies we assume or write; reliance upon third-party distribution partners, including independent insurance agents, homebuilder-affiliated agents and national insurance carriers; our ability to pursue Citizens take-out opportunities; cyclical changes in the insurance industry; our ability to obtain reinsurance coverage at commercially reasonable rates, or at all; credit risk of our reinsurers who may suffer a downgrade; the inherent uncertainty of models and our reliance on such models as a tool to evaluate risk, and the dependence of our results upon our ability to accurately price the risks we underwrite; the possibility that our information technology systems may fail or be disrupted; our ability to expand our business and the possible need to acquire additional capital in the future to fund such expansion; the ability of our claims department, or the third-party claims adjusters whom we may engage, to effectively manage or remediate claims as well as unanticipated increases in the severity or frequency of claims; the possibility that actual renewals of our existing policies will not meet expectations; increased competition and market conditions, including changes in our financial stability and credit ratings; the extensive regulatory environment in which we operate that requires approval of rate increases, can mandate rate decreases, and that can dictate underwriting practices and mandate participation in loss sharing arrangements, and other potential further restrictive regulation we may face; mandatory assessments or competition from government entities may create short-term liabilities or affect our ability to underwrite more policies; and other risks identified in "Risk Factors" in our reports filed with the Securities and Exchange Commission. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We do not undertake any obligation to update or revise the forward-looking statements to reflect events that occur or circumstances that exist after the date on which such statements were made, except to the extent required by law.
Consolidated Balance Sheets
(In thousands, except share and per share data)
June 30, 2026 December 31, 2025
--------------- -------------------
(unaudited)
Assets
Fixed maturities,
available-for-sale, at fair
value (amortized cost of
$346,989 and $327,910,
respectively) $ 346,427 $ 330,489
Short-term investments
(amortized cost of $4,739 and
$18,121, respectively) 4,738 18,121
---------- ---------------
Total investments 351,165 348,610
Cash and cash equivalents 288,453 203,902
Restricted cash and cash
equivalents 55,419 40,217
Premiums receivable, net 59,104 45,031
Accrued investment income 3,163 3,458
Prepaid reinsurance premiums 519,574 275,093
Income taxes recoverable 1,545 --
Reinsurance recoverable, net 247,916 269,056
Deferred policy acquisition
costs, net 22,414 5,127
Property and equipment, net 8,951 5,718
Right-of-use assets --
operating leases 38,452 449
Deferred income tax asset, net 5,116 8,636
Other assets 11,009 24,904
---------- ---------------
Total assets $ 1,612,281 $ 1,230,201
========== ===============
Liabilities and shareholders'
equity
Liabilities:
Unpaid losses and loss
adjustment expenses $ 254,178 $ 266,591
Income tax payable -- 2,680
Unearned premiums 555,130 481,557
Reinsurance payable 341,609 96,555
Advance premiums 21,847 11,752
Long-term debt 412 618
Lease liabilities -- operating
leases 33,065 458
Other liabilities and accrued
expenses 36,521 32,968
---------- ---------------
Total liabilities $ 1,242,762 $ 893,179
---------- ---------------
Shareholders' equity:
Common stock, $0.001 par value,
100,000,000 shares authorized,
19,593,427 shares issued and
outstanding at June 30, 2026
and 19,579,009 shares issued
and outstanding at December
31, 2025 $ 20 $ 20
Additional paid-in capital 106,656 105,896
Accumulated other comprehensive
income (loss), net of taxes (420) 1,928
Retained earnings 263,263 229,178
---------- ---------------
Total shareholders' equity $ 369,519 $ 337,022
---------- ---------------
Total liabilities and
shareholders' equity $ 1,612,281 $ 1,230,201
========== ===============
Consolidated Statements of Operations and Comprehensive Income (Unaudited)
(In thousands, except share and per share data)
Three Months Ended June
30, Six Months Ended June 30,
-------------------------- ----------------------------
2026 2025 2026 2025
---------- ---------- ---------- ----------
Revenues:
Gross premiums
written $ 326,592 $ 286,995 $ 546,596 $ 499,145
Change in gross
unearned premiums (84,341) (63,255) (73,573) (65,249)
---------- ---------- ---------- ----------
Gross premiums
earned 242,251 223,740 473,023 433,896
Ceded premiums
earned (137,555) (157,571) (286,119) (302,325)
---------- ---------- ---------- ----------
Net premiums
earned 104,696 66,169 186,904 131,571
Policy fees 3,711 2,967 6,456 5,171
Net investment
income 6,250 4,780 11,902 8,883
Net realized gains
(losses) on
investments (2) 485 51 501
Other income 516 98 789 259
---------- ---------- ---------- ----------
Total revenues 115,171 74,499 206,102 146,385
---------- ---------- ---------- ----------
Expenses:
Losses and loss
adjustment
expenses, net 33,151 21,189 64,876 42,051
Policy acquisition
expenses 17,410 6,281 33,395 9,388
General and
administrative
expenses 18,186 22,932 34,152 27,940
---------- ---------- ---------- ----------
Total expenses 68,747 50,402 132,423 79,379
---------- ---------- ---------- ----------
Income before
income taxes 46,424 24,097 73,679 67,006
Income tax
(benefit) expense 12,278 (3,397) 19,623 1,416
---------- ---------- ---------- ----------
Net income $ 34,146 $ 27,494 $ 54,056 $ 65,590
---------- ---------- ---------- ----------
Other comprehensive
income (loss):
Unrealized holding
gains on
available-for-sale
securities, net of
taxes (605) 1,231 (2,311) 1,688
Reclassification
adjustment for net
realized gains
(losses), net of
taxes 1 (362) (37) (374)
Total other
comprehensive
income (loss) (604) 869 (2,348) 1,314
---------- ---------- ---------- ----------
Comprehensive
income $ 33,542 $ 28,363 $ 51,708 $ 66,904
---------- ---------- ---------- ----------
Earnings per share:
Basic earnings per
share $ 1.74 $ 1.62 $ 2.76 $ 4.18
---------- ---------- ---------- ----------
Diluted earnings
per share $ 1.74 $ 1.62 $ 2.76 $ 4.18
---------- ---------- ---------- ----------
Weighted average
shares outstanding
-- Basic 19,586,994 16,962,075 19,583,036 15,152,075
Weighted average
shares outstanding
-- Diluted 19,590,448 16,962,075 19,584,870 15,152,075
Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
For the Six Months Ended June 30,
-----------------------------------------
2026 2025
-------------- -------------
Cash flows provided by (used
in) operating activities
Net income $ 54,056 $ 65,590
Adjustments to reconcile net
income to net cash provided
by operating activities:
Stock-based compensation
expense 880 10,433
Amortization and
depreciation 1,091 1,147
Deferred income taxes 4,314 (9,829)
Net realized gains (51) (501)
Changes in operating
assets and liabilities:
Premiums receivable (14,073) (7,031)
Accrued investment
income 295 (737)
Prepaid reinsurance
premiums (244,481) (297,587)
Reinsurance recoverable 21,140 69,524
Other assets 8,367 9,299
Unpaid losses and loss
adjustment expense (12,413) (96,922)
Unearned premiums 73,573 65,250
Reinsurance payable 245,054 288,416
Advance premiums 10,095 16,004
Income taxes payable
(recoverable) (4,225) (9,070)
Operating lease
payments (416) (1,053)
Deferred policy
acquisition costs, net
unearned ceding
commissions (17,287) (5,066)
Other liabilities and
accrued expenses 3,924 (2,386)
-------------- -------------
Net cash provided by operating
activities 129,843 95,481
-------------- -------------
Cash flows provided by (used
in) investing activities
Purchases of property and
equipment (4,475) (579)
Proceeds from sales and
maturities of fixed maturity
securities 35,038 103,486
Purchases of fixed maturity
securities (53,784) (162,776)
Proceeds from sales and
maturities of short-term
investments 22,659 --
Purchases of short-term
investments (9,231) --
-------------- -------------
Net cash used in investing
activities (9,793) (59,869)
-------------- -------------
Cash flows provided by (used
in) financing activities
Proceeds from initial public
offering, net of
underwriting discounts and
commissions -- 93,000
Payments on tax withheld on
vesting of restricted stock
awards -- (3,753)
Payments on tax withheld on
vesting of restricted stock
units (120) --
Cash dividends paid (19,971) --
Cash distributions to
members(1) -- (22,875)
Repayment of long-term debt (206) (206)
Payments of initial public
offering costs -- (4,227)
-------------- -------------
Net cash provided by (used in)
financing activities (20,297) 61,939
-------------- -------------
Net increase in cash, cash
equivalents and restricted
cash and cash equivalents 99,753 97,551
Cash, cash equivalents and
restricted cash and cash
equivalents at beginning of
year 244,119 179,272
-------------- -------------
Cash, cash equivalents and
restricted cash and cash
equivalents at end of period $ 343,872 $ 276,823
============== =============
(1) The distributions were made to members prior to the IPO.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260810036636/en/
CONTACT: Company Contact:
Brian Foley, CFO
American Integrity Insurance Group, Inc.
bfoley@aii.com