American Integrity Insurance Group, Inc. 2026 Q2 Earnings Call

Please go ahead. Thank you and good morning, everyone.

We had an outstanding second quarter with record performance across several important measures and meaningful acceleration across our major strategic growth initiatives. Last quarter, we wrote approximately 43,000 voluntary new business policies during the quarter. This is a company record, first time ever, representing growth of approximately 54% compared with the second quarter of last year and 44% sequentially from the first quarter of this year compared with the second quarter of last year and 44% sequentially from the first quarter of this year. At the same time, we generated a record $46.4 million of income before taxes, a record for the entire company for a single quarter. I'm happy to report we also ended the quarter with more than $1 billion of in-force premium and approximately 462,000 policies in force.

These are both important milestones, and they demonstrate the scale our platform is achieving. Taken together, we believe these results demonstrate the increasing strength of American Integrity's organic growth engine. It's never been stronger. The platform we have built for over two decades is generating meaningful voluntary growth through our established distribution relationships. While the improved Florida insurance environment is allowing us to expand thoughtfully in the markets and risk categories where we have significant experience and underwriting expertise. As we discussed last quarter, we believe voluntary market opportunities, expansion into very attractive segments of the Florida market, and thoughtfully selective geographic expansion throughout the Southeast. All three of these will drive our growth. We believe that the second quarter provided further evidence that these initiatives are working, and more importantly, our momentum is broad-based.

As many of you know, over these last several quarters, we have consistently highlighted three primary areas of opportunity. Number one, the Tri-County region of Florida. Number two, middle-aged homes. Number three, our expansion states in the Southeast. During the second quarter, I am pleased to report that every one of these initiatives continues to gain meaningful traction. Let us start with Tri-County. We wrote more than 7,600 voluntary new business policies during the quarter. This compares to fewer than 200 in the prior year period. That is obviously a 40x increase. Second, in middle-aged homes, we wrote more than 9,000 voluntary new business policies during the quarter. This compares to fewer than 450 in the prior year period. That is a 21x increase.

These are particularly attractive areas for us because they represent markets and risks where we have considerable underwriting expertise and experience, historical data, and importantly, very deep and longstanding existing agency relationships. We are not pursuing growth by moving outside our core competencies. As the economics of the Florida insurance market have improved, we are expanding participation in markets that we know very well. Importantly, our voluntary growth is being generated through our traditional distribution channels and underwriting platform. We believe that type of growth creates a broader, more sustainable and increasingly diversified earnings engine for American Integrity. Outside of Florida, production also accelerated very meaningfully as we continued to expand our presence across the Southeast. During the second quarter, new business policies written in Georgia, South Carolina, and North Carolina increased 40% year-over-year, up from a 23% increase year-over-year in just Q1 2026.

Momentum is happening. These markets complement our existing builder and agency distribution relationships, and they provide another avenue for disciplined organic growth. While all these markets remain a relatively small portion of our overall portfolio today, we believe they represent a very attractive opportunity to generate profitable growth while we further diversify our business over time. These markets also allow us to deepen our relationships with existing homeowner-affiliated agents and other distribution partners, both nationally and regionally, who already know American Integrity and want to do more business with us across multiple markets. Another important driver of our success continues to be our distribution network. What is particularly notable about our recent growth is that it is being driven primarily by longstanding agency relationships rather than brand-new distribution partnerships.

For markets such as Tri-County and middle-aged homes, our agency partners already know our underwriting philosophy, they understand our operating platform, and they are ready to respond as we expand our appetite for these risks. We continue to hear a consistent message from our agents. They value stability, responsiveness, and ease of doing business. We are also seeing increased engagement from agency partners who are looking to consolidate more of their business with a smaller number of trusted carriers, and we are one of them. We believe our service level, our underwriting consistency, and our longstanding commitment to the market position us extremely well to capture a larger share of business within existing agency relationships. This is a very important competitive advantage. It is unique to American Integrity. Much of our strongest growth, again, is coming from these established relationships.

We believe this allows us not only to generate more submissions, more volume, but also to attract very high quality business from partners who understand who we are and what we write. That is the value of the distribution franchise that has taken over 20 years to build. This leads to another really important point. The evidence continues to reinforce our view that Florida's legislative reforms are producing the intended results from the reform almost four years ago. Litigation activity for the entire industry, especially for us, continues a solid decline. Loss cost trends remain very favorable, and reinsurance pricing has meaningfully improved. At the same time, consumers are beginning to benefit through increased insurance availability and more moderate pricing. We view the current environment as evidence of a very healthy and sustainable marketplace, and there is not irrational competition.

Importantly, as consumers increasingly experience these benefits, we believe the reforms become more durable over time. From our perspective, that durability creates a much more stable operating environment for both insurers and policyholders. Despite a somewhat softer market environment nationally, our premiums per policy remains generally stable across our portfolio. Given the mix shift of our portfolio, growth and higher value homes, Tri-County, middle-aged homes, and commercial residential business have largely offset modest rate reductions elsewhere in the book. Additionally, our Inflation Guard provides support as rates modestly decline. Overall, we believe we are entering the second half of this year. We will go into it from a position of considerable strength. We are generating record voluntary production. We are expanding successfully and thoughtfully across multiple growth channels. We are benefiting from favorable market dynamics, all while maintaining very attractive underwriting economics.

We believe that combination is expanding the long-term earning power of American Integrity. With that, let me now turn the call over to Jon.

Thanks, Bob. I will spend a few minutes going a bit deeper on what we are seeing in the business and how that is translating into our results, and then provide an update on our recently completed catastrophe reinsurance renewal. Starting with our results, we continue to see strong growth in our core Florida market and across our expansion states in the Southeast. During the second quarter, gross premiums written increased 13.8% to approximately $327 million. Retention continued to climb to 84.4%, up from 83.6% in the first quarter, and policies in force increased to approximately 462,000, up 15.7% year over year, and 5.6% sequentially from the first quarter. The growth reflects strong voluntary production across the business. Looking first at Tri-County, production levels are encouraging, but we remain substantially under-penetrated relative to the size of the opportunity.

As a reminder, Tri-County represents approximately 28% of Florida households while accounting for only a modest portion of our current policies in force. We believe this represents substantial opportunity for profitable growth over time. In addition, approximately one-third of our Florida voluntary new business gross premium written production during the quarter came from Tri-County policies, compared with only a very small contribution in the prior year quarter, highlighting the momentum we are currently seeing in the market. We believe we have strong support from our distribution partners, increasing consumer demand, and favorable economics that will allow us to pursue growth while maintaining our underwriting discipline. The same is true for middle-aged homes. As we've discussed previously, this was historically the core of our business and an area where we have deep underwriting experience and long-standing agency relationships.