American Integrity Insurance Group (NYSE:AII) reported first-quarter 2026 net income available to common shareholders of $19.9 million, or $1.02 per diluted share, down from $35.9 million, or $2.78 per diluted share, in the prior-year period, as management said last year’s results benefited from elevated Citizens Property Insurance takeout activity.
Chief Financial Officer Brian Foley said the latest quarter offers “a more representative view of the underlying earnings power of the business” as Citizens-related activity has moderated. Foley, who recently joined the company after previously working with American Integrity as an investment banker at KBW during its public listing process, succeeds Ben Lurie, who will return to Salient Company, the company’s lead investor. Founder and Chief Executive Officer Bob Ritchie said Lurie will continue to support the transition and remain on the insurance company board.
Voluntary growth drives production
Management emphasized that American Integrity’s growth is increasingly being driven by voluntary policies rather than Citizens takeouts. Ritchie said the business is “transitioning toward more durable, voluntary-driven growth with a more normalized earnings profile.”
President Jon Ritchie said the company wrote more than 94,000 new and renewal policies in the voluntary market during the first quarter. Retention was approximately 83.6%, and policies in force rose to more than 437,000, up about 14% year over year.
Bob Ritchie said voluntary customer growth rose 18% year over year, supported by a multi-channel distribution model. Through March, he said policies in force grew across nearly every channel, including independent agents up approximately 9%, company alliances up nearly 40%, builders up over 38% and national accounts up more than 40%.
The company also highlighted renewed momentum in Florida’s Tri-County region and in middle-aged homes, areas where management said American Integrity had previously reduced exposure because of unfavorable litigation conditions. Bob Ritchie said recent legislative reforms have made the market more rational and allowed the company to reengage profitably.
In Tri-County and middle-aged home markets, American Integrity wrote 120 new policies per business day in the first quarter, compared with six per day in the prior-year period, according to Bob Ritchie. Jon Ritchie said Tri-County HO-3 policies accounted for approximately one quarter of voluntary Florida new business gross written premium in the quarter, up from low single digits a year earlier. Voluntary HO-3 middle-aged homes, excluding Tri-County, also contributed approximately one quarter of Florida new business voluntary gross written premium, up from low single digits in the comparable quarter.
Premiums increase as quota share changes lift net earned premium
Gross premiums written increased 3.7% to $220 million from $212.2 million a year earlier. Gross premiums earned rose to $230.8 million from $210.2 million.
Ceded premiums earned increased to $148.6 million from $144.8 million, driven mainly by higher gross earned premiums and partially offset by the reduction in the company’s quota share cession from 40% to 25% beginning Jan. 1. Net premiums earned increased 25.7% to $82.2 million from $65.4 million.
Foley said the growth reflects both underlying expansion and the lower quota share cession rate, which increases net premiums earned and earnings exposure. Net investment income rose to $5.7 million from $4.1 million, primarily due to higher invested assets supported by premium growth and IPO proceeds.
Loss and loss adjustment expenses increased to $31.7 million from $20.9 million. The loss ratio was 37.3%, compared with 30.9% in the prior-year quarter. Foley said the prior year benefited from favorable reinsurance dynamics associated with Citizens takeout activity, and noted there were no catastrophe losses or prior development in the latest quarter.
Policy acquisition expense rose to $16 million from $3.1 million, while general and administrative expenses increased to $16 million from $5 million. The expense ratio increased to 37.6% from 12%, and the combined ratio was 75%, compared with 42.9% a year earlier. Foley said the year-over-year ratio changes were consistent with the company’s strategy and did not reflect deterioration in the underlying cost structure.
Reinsurance market improvement expected
Management said it expects improved conditions in the company’s June 1 reinsurance renewal. Bob Ritchie said American Integrity is seeing “very meaningful reinsurance market improvement” and expects “substantial and meaningful rate softening” on the renewal, which he said was nearly complete.
Jon Ritchie said the company is seeing strong engagement from reinsurance partners and a more constructive environment on pricing and terms than in recent years. He said American Integrity anticipates “a meaningful reduction in risk-adjusted pricing,” citing improved industry underwriting performance, broader market normalization and Florida’s improved litigation environment.
Asked during the question-and-answer session how Tri-County, middle-aged roof and high-net-worth initiatives influence reinsurance structure and limit needs, Jon Ritchie said geographic and risk diversification are additive to the company’s Florida reinsurance structure. He said South Florida growth helps reduce pressure on other peak zones, while middle-aged roof homes are disproportionately coming from Central Florida.
Southeast expansion remains small but growing
American Integrity also reported early growth outside Florida. Bob Ritchie said South Carolina policies in force increased 119% year over year as of March 31, while Georgia increased 332%. In North Carolina, where the company recently entered the market, American Integrity wrote 360 policies in the first quarter.
Jon Ritchie said North Carolina, South Carolina and Georgia remain less than 4% of in-force premium, but represent an attractive long-term opportunity to extend the company’s operating model beyond Florida. He said South Carolina and Georgia growth is being supported by homebuilder relationships, while North Carolina is being developed in a measured way.
The company also discussed its Commercial Residential Property Program, launched late last year for garden-style two- and three-story condo associations, townhome communities and homeowners associations in Florida. Jon Ritchie said American Integrity wrote 81 policies in the program during the quarter, including takeouts.
Capital priorities and Citizens takeout outlook
Shareholders’ equity was $335.5 million at quarter end, compared with $337 million at year-end. Foley said the decline reflected a $20 million special dividend paid during the quarter. He said the company’s capital position remains strong and provides flexibility for underwriting growth and shareholder returns.
In response to an analyst question about future buybacks or special dividends, Foley said growth is the company’s top priority. He added that management would consider both buybacks and dividends if excess capital remains after wind season.
Bob Ritchie also addressed Citizens takeouts, saying “the days of robust, profitable Citizens takeouts are over.” He said the company may still participate in limited opportunities, but added that it would be “very unwise” for any carrier to rely solely on takeouts as a growth engine. Ritchie said American Integrity’s current growth is being driven by repeatable voluntary production, targeted geographic expansion and long-standing agent relationships.
About American Integrity Insurance Group (NYSE:AII)
American Integrity Insurance Group, Ltd. is a specialized provider of personal lines residential property insurance based in Jacksonville Beach, Florida. The company underwrites a variety of policies including homeowners multiple peril, condominium unitowners, dwelling fire, wind-only, personal umbrella and renters insurance. Its product suite is designed to protect against hurricane, windstorm, hail and other weather-related risks common to Florida’s coastal and inland regions.
Founded in 2004, American Integrity operates primarily through a network of independent insurance agents across the state of Florida.
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