TAMPA, Fla.--(BUSINESS WIRE)--November 11, 2025--
American Integrity Insurance Group, Inc. (NYSE: AII), a Tampa-based property and casualty insurance holding company and one of Florida's leading providers of residential property insurance, today reported financial results for the third quarter of 2025.
As previously disclosed, on May 9, 2025, the Company successfully completed its initial public offering ("IPO"). The financial results for the third quarter of 2025 included in this earnings release are those of American Integrity Insurance Group, Inc. For the purposes of this earnings release and the financial information provided herein, references to "American Integrity" or the "Company" prior to the consummation of the IPO refer to American Integrity Insurance Group, LLC and such references after the consummation of the IPO refer to American Integrity Insurance Group, Inc.
For the third quarter of 2025, American Integrity reported net income available to common shareholders of $13.2 million, or $0.67 per diluted share, and adjusted net income(1) available to common shareholders of $14.0 million, or $0.71 per diluted share.
Third Quarter 2025 Financial Highlights
Highlights for the quarter include:
-- Gross premiums written of $239.1 million, an increase of 48.5% compared
to the third quarter of 2024
-- Policies-in-force ended at 406,094, up 48.6% over September 30, 2024
-- Net premiums earned of $52.0 million, an increase of 28.5% compared to
the third quarter of 2024
-- Combined ratio of 78.9%, a decrease of 15.4 percentage points, compared
to 94.3% in the third quarter of 2024
-- Net investment income of $6.9 million, an increase of 83.8% compared to
the third quarter of 2024
-- Assumed 1,891 policies from Citizens Property Insurance Corporation
("Citizens")
Robert Ritchie, Chief Executive Officer, commented,
"We delivered another quarter of robust results, driven by the strength of our distribution partnerships and a favorable market environment. Legislative reform in Florida continues to have a profound and positive impact, contributing to stability in non-catastrophe loss frequency and severity, along with a benign catastrophe environment through the third quarter of 2025.
"I'm pleased with our performance and am even more energized by the opportunities ahead to expand our business and deliver lasting value for our shareholders. Our re-entry into the Tri-County region of Florida is well underway and gaining momentum. This expansion represents a significant new market opportunity that we expect will support sustained voluntary policy growth through 2026. We've also refocused our sales and production teams on Florida's middle-aged home segment, another large and underpenetrated market. In addition, we recently entered the commercial residential market and expect to issue our first policies in the fourth quarter.
"As we pursue these multiple avenues for growth, we remain grounded in our core values and unwavering in our commitment to disciplined underwriting, prudent risk management, and responsible expansion. We believe the foundation we've built, anchored in integrity, focus, and resilience, positions American Integrity to thrive in any market environment and continue to create long-term shareholder value."
(1) Adjusted net income and adjusted earnings per share 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.
Third Quarter 2025 Commentary
-- Gross premiums written in the third quarter of 2025 increased by 48.5%
to $239.1 million from $161.0 million in the third quarter of 2024. Gross
premiums earned in the third quarter of 2025 increased by 34.2% to $221.9
million from $165.4 million in the third quarter of 2024. Net premiums
earned in the third quarter of 2025 increased by 28.5% to $52.0 million
from $40.5 million in the third quarter of 2024. The increase in gross
premiums written, gross premiums earned, and net premiums earned in the
third quarter of 2025 as compared to the third quarter of 2024 was driven
primarily by new and renewal policies written through the voluntary
market and from our strategic participation in the Citizens take-out
program.
-- Ceded premiums earned in the third quarter of 2025 increased by 36.1%
to $170.0 million compared to $124.9 million in the third quarter of 2024
due to the increase in gross premiums earned and the placement of our
2025-2026 catastrophe excess-of-loss reinsurance program effective June
1, 2025. The Company purchased more reinsurance coverage compared to
prior years, reflecting an increase in in-force premium and total insured
value (TIV).
-- Net investment income in the third quarter of 2025 increased 83.8% to
$6.9 million compared to $3.8 million in the third quarter of 2024, which
was primarily driven by an increase in invested assets driven by the
increased premiums in-force and the proceeds from our IPO.
-- Losses and loss adjustment expenses ("LAE") for the third quarter of
2025 increased 18.5% to $29.7 million compared to $25.0 million for the
third quarter of 2024, driven primarily by higher gross premiums earned.
The loss ratio was 54.1% for the third quarter of 2025, compared to 59.0%
for the third quarter of 2024.
-- Policy acquisition expenses for the third quarter of 2025 decreased
19.7% to $6.3 million compared to $7.8 million for the third quarter of
2024, driven by an increase in non-catastrophe ceded commission
allocation.
-- The expense ratio was 24.8% for the third quarter of 2025 compared to
35.3% for the third quarter of 2024. The decrease in the expense ratio
was primarily the result of an increase in net premiums earned partially
offset by higher salaries and consulting fees incurred to support the
public company operations and ongoing growth.
-- The combined ratio was 78.9% for the third quarter of 2025 compared to
94.3% for the third quarter of 2024.
-- Income tax (benefit) expense was $5.6 million and $2.0 million for the
third quarter of 2025 and 2024, respectively. Our effective tax rate for
the three months ended September 30, 2025 and 2024 was 29.9% and 31.1%,
respectively. On May 7, 2025, the Company reorganized its structure
through a tax-free transaction following the contribution by the members
of American Integrity Insurance Group, LLC of all of their equity
interests in American Integrity Insurance Group, LLC to the Company in
exchange for shares of the Company's common stock, which changed its tax
status from a limited liability company, treated as a partnership for
federal income tax purposes, to a corporation subject to United States
federal income tax, under Subchapter C of the Internal Revenue Code (the
"Corporate Contribution"). Conversion from a non-taxable entity to a
corporation is considered a change in tax status, and has been reflected
in the financial statements in accordance with the relevant accounting
guidance.
-- Shareholders' equity increased to $315.9 million as of September 30,
2025, compared to $162.4 million as of December 31, 2024. Growth in
shareholders' equity was due, in part, to net income and proceeds
received in the IPO.
-- Annualized return on equity was 17.0%, an increase from 11.9% in the
third quarter of 2024.
Results of
Operations
Three Months Ended September 30,
---------------------------------------------------
($ in thousands) 2025 2024 $ Change % Change
------------- ------------- --------- ----------
Gross premiums
written $ 239,100 $ 160,977 $ 78,123 48.5%
Change in gross
unearned
premiums (17,151) 4,384 (21,535) (491.2)%
-------- -------- ------- ------
Gross premiums
earned 221,949 165,361 56,588 34.2%
Ceded premiums
earned (169,950) (124,897) (45,053) 36.1%
-------- -------- ------- ------
Net
premiums
earned 51,999 40,464 11,535 28.5%
Policy fees 2,805 1,928 877 45.5%
Net investment
income 6,906 3,757 3,149 83.8%
Net realized
gains (losses)
on investments 41 18 23 127.8%
Other income 275 376 (101) (26.9)%
-------- -------- ------- ------
Total Revenues 62,026 46,543 15,483 33.3%
-------- -------- ------- ------
Losses and loss
adjustment
expenses 29,652 25,017 4,635 18.5%
Policy
acquisition
expenses 6,254 7,790 (1,536) (19.7)%
General and
administrative
expenses 7,347 7,185 162 2.3%
-------- -------- ------- ------
Total Expenses 43,253 39,992 3,261 8.2%
-------- -------- ------- ------
Income
before
taxes 18,773 6,551 12,222 186.6%
Income tax
(benefit)
expense 5,610 2,038 3,572 175.3%
-------- -------- ------- ------
Net
Income $ 13,163 $ 4,513 $ 8,650 191.7%
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