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    AII
    Earnings call· Jun 2026(Q2 FY26)

    American Integrity Insurance Group Q2 FY26 earnings call AII

    Aug 12, 2026 Source

    Executive summary

    American Integrity Insurance Group Q2 FY26 — Record Production and Strong Underwriting Economics

    American Integrity Insurance Group delivered a record-setting second quarter, driven by robust voluntary new business production and strong underwriting economics. The company achieved significant milestones, including surpassing $1 billion in enforced premium and expanding its presence in key Florida markets and Southeast states. Management emphasized the durability of Florida's legislative reforms and the strength of its distribution network, positioning the company for continued profitable growth.

    Highlights

    5

    • Voluntary new business policies written reached a company record of 43,000, representing growth of 54% YoY and 44% QoQ.

    • Income before taxes hit a record $46.4 million, an increase of 93% from the prior year quarter.

    • Policies in force increased to approximately 462,000, up 15.7% YoY, surpassing $1 billion of enforced premium.

    • The combined ratio improved significantly to 63.4% from 72.9% in the prior year period.

    • Book value per share grew to $18.86, an increase of 22.3% YoY and 10.1% since Q1 2026.

    Concerns

    2

    • Plateau in new construction volumes in Florida

    • Potential for elevated core loss ratio in Q3 due to non-cat quota share

    Guidance & targets

    1
    CategoryTargetConfidence
    Annual catastrophe reinsurance cost
    $430 million to $440 million
    medium materiality
    High

    Operational metrics

    37
    Voluntary new business policies written
    43,000up 54% YoY, up 44% QoQ
    Q2 FY26

    This is a company record, first time ever.

    Income before taxes
    $46.4 millionup 93% YoY
    Q2 FY26

    record for the entire company for a single quarter.

    Policies in force
    462,000up 15.7% YoY, up 5.6% QoQ
    Q2 FY26

    These are both important milestones and they demonstrate the scale our platform is achieving.

    Gross premiums written
    $327 millionup 13.8% YoY
    Q2 FY26

    Transcript states '$326 billion' which is an ASR error; corrected to '$327 million' based on context of prior year '$287 million' and 13.8% growth. This growth was driven by continued expansion in the voluntary market across our key growth initiatives.

    Retention rate
    84.4%up from 83.6% in Q1 FY26
    Q2 FY26

    Retention continued to climb.

    Voluntary new business policies written
    7,600up 40x YoY
    Q2 FY26

    This compares to 200 in the prior year period.

    Voluntary new business policies written
    9,000up 21x YoY
    Q2 FY26

    This compares to fewer than 450 in the prior year period.

    Voluntary new business gross premium written production
    approximately one-thirdcompared with only a very small contribution in the prior year quarter
    Q2 FY26

    highlighting the momentum we are currently seeing in the market.

    Voluntary new business gross written premium
    24%compared to approximately 4% in the prior year period
    Q2 FY26

    We view this as an attractive opportunity because it combines significant market size with an area where we have considerable operating history and underwriting expertise.

    New business policies written
    up 40%YoY
    Q2 FY26

    from a 23% increase year over year in just Q1 2026.

    New business gross premiums written
    up 50%YoY
    Q2 FY26
    Voluntary new business policies
    18%
    Q2 FY26

    These states represented approximately 18% of voluntary new business policies and 10% of voluntary new business gross premiums written during the quarter.

    Voluntary new business gross premiums written
    10%
    Q2 FY26

    These states represented approximately 18% of voluntary new business policies and 10% of voluntary new business gross premiums written during the quarter.

    Risk-adjusted reinsurance rate reductions
    15% to 20%upper end of market declines
    June 1 renewal

    We successfully renewed our program with meaningful risk-adjusted rate reductions at the upper end of the 15 to 20 percent declines observed in the market.

    Peak season exposure
    19%growth
    June 1 renewal

    Despite approximately 19% growth in peak season exposure, our first event retention remained unchanged at 35 million.

    First event retention
    $35 millionunchanged
    June 1 renewal

    our first event retention remained unchanged at 35 million.

    Aggregate four event retention
    $75 milliondeclined from $95 million
    June 1 renewal

    Additionally, our aggregate four event retention declined from 95 million to 75 million, further improving our net risk profile.

    Total catastrophe protection
    $3 billion
    June 1 renewal

    The renewed program provides approximately $3 billion of total catastrophe protection, including approximately $2.25 billion of third-party coverage for a single catastrophic event.

    Third-party catastrophe coverage (single event)
    $2.25 billion
    June 1 renewal

    including approximately $2.25 billion of third-party coverage for a single catastrophic event.

    Net income (GAAP)
    $34.1 millioncompared to $27.5 million in prior year
    Q2 FY26

    We generated net income of $34.1 million or $1.74 per diluted share

    Adjusted net income
    $34.9 millioncompared to $31.3 million in prior year
    Q2 FY26

    and adjusted net income of $34.9 million or $1.78 per diluted share during the second quarter.

    Diluted EPS (GAAP)
    $1.74compared to $1.62 in prior year
    Q2 FY26

    We generated net income of $34.1 million or $1.74 per diluted share

    Adjusted diluted EPS
    $1.78compared to $1.84 in prior year
    Q2 FY26

    and adjusted net income of $34.9 million or $1.78 per diluted share during the second quarter.

    Gross premiums earned
    $242.3 millionup 8.3% YoY
    Q2 FY26

    Gross premiums earned increased 8.3% to $242.3 million compared to $223.7 million in the prior year period.

    Net premiums earned
    $104.7 millionup 58.2% YoY
    Q2 FY26

    net premiums earned increased 58.2% to 104.7 million compared to 66.2 million in the prior year period.

    Non-catastrophe quota share cession
    25%down from 40%
    effective Jan 1, 2026

    driven primarily by the reduction in our non-catastrophe quota share session from 40% to 25% beginning January 1, 2026.

    Net investment income
    $6.3 millionup 30.8% YoY
    Q2 FY26

    Net investment income increased 30.8% to $6.3 million compared to $4.8 million in the prior year period.

    Net loss ratio
    30.6%consistent with 30.6% in prior year
    Q2 FY26

    Our net loss ratio was 30.6% consistent with 30.6% in the prior year period.

    Net underlying loss and loss adjustment expense ratio
    30.6%down from 33.1% in prior year
    Q2 FY26

    Our net underlying loss and loss adjustment expense ratio was 30.6%. down from 33.1% in the prior year period.

    Gross underlying loss and loss adjustment expense ratio
    18.1%
    Q2 FY26

    Our growth underlying loss and loss adjustment expense ratio was 18.1% during the quarter, which we continue to view as a very attractive result

    Policy acquisition expenses
    $17.4 millioncompared to $6.3 million in prior year
    Q2 FY26

    The increase was primarily driven by record levels of the voluntary new business production, the absence of citizens takeout windfall, which carries minimal upfront acquisition costs, costs and lower seating commission income resulting from the reduction in our quota share.

    General and administrative expenses
    $18.2 millioncompared to $22.9 million in prior year
    Q2 FY26

    primarily driven by the absence of one time IPO expenses recognized in the second quarter of 2025. Partially offset by the reduction of our quota share.

    Expense ratio
    32.8%down from 42.3% in prior year
    Q2 FY26

    Our expense ratio decreased to 32.8% compared to 42.3% in the prior year period.

    Shareholders' equity
    $369.5 millioncompared to $337 million at year end
    Q2 FY26

    Shareholders' equity increased to $369.5 million at quarter end compared to $337 million at year end.

    Investment portfolio duration
    approximately two years
    Q2 FY26

    We expect our duration of approximately two years, our credit quality, and asset mix to remain largely consistent with how we previously managed our investment.

    Book yield on investments
    mid-fours
    Q2 FY26

    I think book yield, you can kind about that in the mid fours.

    New money rates on investments
    high-fours, maybe even approaching five
    Q2 FY26

    I think new money rates are high fours, maybe even approaching five, depending on the product

    Industry KPIs

    8
    MetricValueDetails
    Combined ratio63.4%%
    ROE operating ROE38.7% (ROE), 39.6% (Adjusted ROE)%
    Catastrophe lossesNone
    Book value per share$18.86USD/share
    Net investment income$6.3 millionUSD
    Retention persistency84.4%%
    Net premiums written earned$327 million (written), $104.7 million (earned)USD
    Prior year reserve developmentNone

    Product announcements

    2
    ProductTypeDetails
    Dwelling fire productexpansion
    Marine small boat owner productexpansion

    Risks & headwinds

    2
    Plateau in new construction volumes in FloridaCurrent

    plateau of new builds and new construction

    Mitigation: Diversification of distribution (builder agents, national accounts, independent agents) and expansion into Tri-County, middle-aged homes, and other states allows for maintaining healthy new business production.

    Potential for elevated core loss ratio in Q3 due to non-cat quota shareQ3 FY26

    a little bit of elevated, um, core loss ratio in that quarter

    Mitigation: This is a timing dynamic; the company expects to get this back through increased ceding commission settled at the end of the treaty in Q4.

    What to watch in Q3 FY26

    4

    Net underlying loss ratio impact from quota share

    Q4 FY26
    Currentelevated in Q3 if no major cat losses
    TargetNormalization or offset by ceding commission in Q4

    Why it matters

    Understanding the true underlying profitability and the impact of quota share dynamics.

    So Tommy the quota share is a non-cat quota share but it actually allows us to see that some de minimis cat losses to that treaty. So what you said was correct whereby in a clean cat year, that kind of creates a little bit of elevated, um, core loss ratio in that quarter but then what happens is we actually get that back through increased seating commission going forward⏳ but we don't kind of settle that until the end of the treaty which would be in q4 so there is a little bit of timing dynamics there.

    Q&A highlights

    8

    How does the margin on the growing middle-aged home business compare to traditional business?

    Management stated that pricing, underwriting, and selection for middle-aged homes are consistent with their combined ratio plans. They expect the underlying gross loss ratio to be a few points higher but the premium collected accommodates this, making it profitable.

    “we model and expect uh the underlying gross loss ratio to be a few points higher than uh the overall portfolio but as bob said the premium we're collecting accommodates for that so we're very happy with the business that we're generating and the long-term profitability of that segment.”

    asked by Michael Phillips · answered by Unknown Speaker

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Growth Initiatives Traction

    American Integrity reported significant traction across its three primary growth initiatives: the Tri-County region of Florida, middle-aged homes, and expansion states in the Southeast. Tri-County voluntary new business policies increased 40x YoY to over 7,600, while middle-aged homes saw a 21x increase to over 9,000 policies. These areas leverage the company's deep underwriting expertise and existing agency relationships, contributing to a broader and more diversified earnings engine.

    02

    Southeast Expansion Momentum

    Production in Georgia, South Carolina, and North Carolina accelerated meaningfully, with new business policies written increasing 40% YoY in Q2, up from 23% YoY in Q1 2026. These states represented approximately 18% of voluntary new business policies and 10% of voluntary new business gross premiums written, demonstrating the portability of the company's distribution relationships and operating model. The company is also evaluating broadening product offerings in these states.

    03

    Distribution Network Strength

    The company's growth is primarily driven by longstanding agency relationships, which value stability, responsiveness, and ease of doing business. This established network allows American Integrity to attract high-quality business and consolidate a larger share from existing partners. Management views this as a very important competitive advantage, enabling the generation of more submissions and higher-quality business from partners who understand their underwriting philosophy.

    04

    Favorable Florida Market Dynamics

    Florida's legislative reforms continue to yield intended results, with litigation activity declining, loss-cost trends remaining favorable, and reinsurance pricing improving. This has led to increased insurance availability and more moderate pricing for consumers, creating a healthy and sustainable marketplace without irrational competition. Management believes that as consumers increasingly experience these benefits, the reforms become more durable over time⏳, fostering a stable operating environment.

    05

    Reinsurance Program Renewal Success

    The company successfully renewed its catastrophe excess of loss program with meaningful risk-adjusted rate reductions at the upper end of the 15-20% market declines. Despite 19% growth in peak season exposure, the first event retention remained unchanged at $35 million, and aggregate four-event retention declined from $95 million to $75 million, improving the net risk profile. The renewed program provides approximately $3 billion of total catastrophe protection.

    06

    Quota Share Reduction Impact

    The reduction in the non-catastrophe quota share cession from 40% to 25% (effective January 1, 2026) significantly increased net premiums earned by 58.2% to $104.7 million. This strategic decision allows more of the value created by the underwriting platform to accrue to American Integrity and its stockholders. This combination of strong underlying growth and increased retention is seen as expanding the long-term earning power of the company.

    AI-generated summary of the company’s earnings call. Not investment advice.