American Integrity Insurance stock price target raised to $22 by Raymond James

Published 18/08/2025, 11:00
American Integrity Insurance stock price target raised to $22 by Raymond James

Investing.com - Raymond James has raised its price target on American Integrity Insurance Group (NYSE:AII) to $22.00 from $20.00 while maintaining an Outperform rating on the stock. According to InvestingPro data, AII currently trades at $19.07, near its 52-week high of $19.61, with the company showing Great overall financial health based on comprehensive analysis of multiple factors.

The insurance company’s shares have gained approximately 7% since reporting second-quarter 2025 results that exceeded analyst estimates, partly reflecting better-than-expected revenue growth of 61% year-over-year. AII reported second-quarter 2025 gross premium written growth of approximately 29% year-over-year, driven by strong new business and improved retention of approximately 81% compared to 78% in the first quarter. The company maintains impressive profitability metrics, with a gross profit margin of 50.44% in the last twelve months.

Policies in force rose approximately 50% year-over-year to about 399,000, including approximately 7,000 Citizens take-out policies. The combined ratio increased to 72.9% from 60.8% in the second quarter of 2024, primarily due to 23.8 percentage points of one-time IPO expenses, partially offset by 2.6 percentage points of favorable reserve development.

AII has received approval for rate filings in Miami-Dade and Broward counties, allowing the company to re-enter the Tri-County area after more than a decade. This region represents approximately 26% of Florida’s total households and features some of the highest property values in the state. Management expects to begin writing business in the Tri-County region later this month.

The company has also expanded into new markets, having started writing policies on older roofs as recent tort reform has improved underwriting conditions. AII has filed rates and expects to begin writing new commercial residential business in the fourth quarter of 2025, while continuing to grow its policy count in new home construction markets in South Carolina and Georgia.

In other recent news, American Integrity Insurance reported its second-quarter 2025 earnings, exceeding expectations with an adjusted earnings per share (EPS) of $1.84. The company’s revenue reached $287 million, highlighting a notable increase in gross premiums written. This strong financial performance underscores investor confidence in the company’s growth prospects. Additionally, Piper Sandler raised its price target for American Integrity Insurance to $22 from $20, maintaining an Overweight rating. The adjustment in price target was attributed to lower catastrophe losses and favorable reserve development. These recent developments indicate a positive outlook for the company, as reflected by the analyst’s revised evaluation. The combination of strong earnings results and the analyst’s upgraded price target provides a comprehensive view of the company’s current financial health.

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