By Navneeta Nandan

Nov 13 - (The Insurer) - American Integrity's share price has climbed 56% since its May 8 IPO debut as of Friday's close, outpacing its fellow newly public rivals, despite a pullback following its Q3 results announcement earlier this week.

The Tampa-based insurer reported $0.71 adjusted earnings per diluted share in the third quarter, beating the $0.64 consensus estimate of six analysts, according to MarketWatch. The group's combined ratio improved by 15.4 points year-on-year to 78.9% in Q3, and its loss ratio improved to 54.1%, both supported by benign weather conditions.

However, its shares fell 5.4% to $24.77 on Wednesday, following the release of its Q3 results after Tuesday’s market close.

Piper Sandler attributed this drop to an unfavorable reserve development charge, which was reported to be at 4.2 points compared to its expectation of no charge.

Since its IPO up to the announcement of Q2 2025 results, which was its first quarterly reporting as a public company, the carrier's shares had peaked to $18.72 a piece. The share price of American Integrity started picking up in the third quarter, soaring up to $26.19 on Tuesday, before it absorbed the impact of the Q3 results.

Paul Newsome, managing director and senior research analyst at Piper Sandler, said the carrier's underlying or attritional loss ratio and unfavourable reserve development was higher than expected, adding: "The stock was down quite sharply yesterday (on Wednesday). So neither of those items were greeted with joy by investors."

He called it "a great year" for the insurer nevertheless and expects it to make it up in the fourth quarter as it wasn't a big number. "There were no hurricanes this year. And when that happens, these companies make an incredible amount of money, so extremely high returns on equity."

Despite the fall, the performance of American Integrity, whose IPO was offered at $16 a piece, has soared 56% to $24.96 a piece on Friday's close. This is ahead of all of its peers who went public in 2025.

Neptune, which went public on October 1 at an offer price of $20 a piece, has seen its share price rise 23.7% to $24.73 as of Friday's close. The flood insurance MGA took a 1.4 percentage point hit on Thursday after its results were announced on Wednesday after markets closed.

Ategrity went public on June 11 and was offered at $17 a piece. It has grown by 13.4% to $19.28 a piece on Friday's close.

Some companies fell below their IPO price. This includes Accelerant, which was offered at $21 on June 24, and has now plummeted 35.4% to $13.56 on Friday. This is followed by Exzeo, offered at $21 on November 5, dropping 14.7% to $17.91. Slide went public on June 18 at $17 a piece and has now dropped 1.4% to $16.76.

Aspen, which made its IPO debut on the same day as American Integrity, was offered at $30 a piece on May 8 and fell 7.8% to $27.66 on August 19, which was the last day of its trading before its share price was affected by the acquisition speculation about its subsequently announced pending takeover by Sompo Group.

Newsome said there were numerous reasons American Integrity outperformed its rivals, including the IPO coming out of a "tracked evaluation".

"Some of those IPOs were less attractive valuations and so that helps right your starting point," he said.

"I think the the market environment for American Integrity helped as well. They are mainly a Florida-based property-owned insurance rider and that business is extremely profitable for everybody in that sub-sector. It's an area where the pricing cycles are a little different than their overall insurance cycle. So it stands out relative from a market perspective relative to others."

Tommy McJoynt, director of equity research at Keefe Bruyette & Woods, also said American Integrity started post-IPO at the low end of valuation multiples relative to the Florida homeowners peer group.

He added that the stock's outperformance was attributed to investors "better appreciating key items", including the insurer's strong organic growth in underpenetrated markets and products lines like tri-county areas, non-new construction homes and commercial residential.

Newsome said: "American Integrity, unlike some of the peers, has actually done a pretty good job of growing is business organically and that is a little different. The overall environment in the back half of this year has been one where insurance companies have struggled with gross softening cycle. Industry is pushing against the ability to grow, so it's got harder for everybody to grow. They were a little bit of the right company at the right time within the right market to be able to to grow."

McJoynt added that the insurer's "robust reinsurance protection gives investors confidence that earnings are insulated from catastrophe volatility".

Anticipation of the cost of property catastrophe for Florida declining sharply next year also helped the carrier as this is a significant expense for Florida property insurers.

Piper Sandler, KBW and William Blairas acted as active bookrunners for American Integrity's IPO.