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American Integrity Insurance Inc (NYSE:AII) delivered exceptional results in the second quarter of 2025, according to its investor presentation released on August 13, 2025. The Florida-based insurer reported a 113% year-over-year increase in adjusted net income and a 50% jump in policies-in-force, highlighting its strengthening market position and successful growth strategy.
Quarterly Performance Highlights
American Integrity’s financial performance showed remarkable growth across key metrics in Q2 2025. The company reported gross premiums written of $287 million, a 29% increase from the same period last year, while net premiums earned rose 63% to $66 million.
Adjusted net income more than doubled to $31 million compared to $15 million in Q2 2024, representing a 113% year-over-year increase. The company’s total shareholders’ equity reached $302 million, up 86% from $162 million at the end of 2024, bolstered by its May 2025 IPO which generated $82 million in net proceeds.
As shown in the following comprehensive financial highlights chart from the presentation:
The company maintained a strong annualized adjusted return on equity of 55.5%, up from 44.3% in Q2 2024. While the loss ratio remained relatively stable at 30.6% (compared to 29.6% in Q2 2024), the combined ratio increased to 72.9% from 60.8% a year earlier, primarily due to a higher expense ratio of 42.3% versus 31.2% in Q2 2024.
These results align with the earnings data released earlier, which showed an adjusted EPS of $1.84 that exceeded market expectations and drove a 4.02% increase in AII’s stock price following the announcement.
Strategic Growth Initiatives
American Integrity outlined several strategic growth initiatives that are driving its expansion. The company has successfully grown its voluntary policy base while also taking advantage of opportunities to assume policies from Citizens Property Insurance Corporation, Florida’s state-run insurer of last resort.
The presentation highlighted that voluntary policy writings increased 42% year-to-date compared to the same period in 2024, while voluntary residential policies-in-force grew 19% year-over-year to 306,000. This organic growth has been complemented by the assumption of approximately 92,000 policies from Citizens between October 2024 and April 2025.
As illustrated in the following chart showing the company’s strong year-over-year growth in policies-in-force:
Looking forward, American Integrity identified several growth opportunities, including:
1. Expansion into the Tri-County area (Miami-Dade, Broward, and Palm Beach counties), which represents 28% of Florida’s population but only 7% of the company’s current policies-in-force
2. Targeting middle-aged roofs (5+ years old) as the litigation environment has stabilized following 2022 reforms
3. Entry into the commercial residential insurance market in Florida (estimated at $1.8 billion in premium) with first writings expected in Q1 2026
4. Reduction of non-catastrophe quota share reinsurance from the current 40% level
5. Geographic expansion into Georgia, South Carolina, and North Carolina, with North Carolina writings expected to commence in Q4 2025
Competitive Position & Market Share
American Integrity has established itself as a leading player in Florida’s residential insurance market. According to the presentation, the company ranks #3 among domestic carriers and #6 overall for policies-in-force as of June 30, 2025.
The following chart illustrates American Integrity’s market position relative to competitors:
With 378,454 policies-in-force, American Integrity trails only Citizens, State Farm, Universal P&C, Assurant, and Tower Hill in the Florida residential property market. The company also ranks #7 among all writers for new residential policies, demonstrating its strong distribution capabilities and market presence.
CEO Bob Ritchie emphasized the company’s focus on building a sustainable business model, stating in the earnings call, "We’re not just growing, we’re building something enduring." This sentiment reflects the company’s strategic approach to balancing growth with profitability.
Risk Management & Investment Strategy
American Integrity detailed its sophisticated reinsurance program, which is designed to mitigate risk while enabling growth. The multi-layered catastrophe excess of loss program provides comprehensive coverage up to $1.97 billion for a single event and $1.5 billion for a second event.
The following diagram illustrates the company’s catastrophe reinsurance structure:
On the investment front, American Integrity maintains a conservative approach with a high-quality portfolio focused on investment-grade fixed income securities. As of Q2 2025, the company reported total cash and investments of $555 million, including a $280 million investment portfolio managed by Goldman Sachs Asset Management.
The investment portfolio has a weighted average effective duration of 2.4 years and a weighted average credit rating of A, with no equity exposure. This conservative investment strategy aligns with the company’s overall risk management philosophy.
Forward-Looking Statements
American Integrity’s presentation highlighted several key investment considerations that position the company for continued success. These include its long-term growth and profitability track record, improved and stabilized market conditions in Florida following the 2022 litigation reforms, accelerated growth in 2025, and abundant organic growth opportunities.
The following investment highlights summarize the company’s value proposition:
Management expressed confidence in the company’s ability to maintain its growth momentum through geographic expansion, product diversification, and strategic initiatives. The planned entry into commercial residential lines and expansion into North Carolina in Q4 2025 are expected to further diversify the company’s revenue streams.
According to the earnings article, analysts have revised earnings estimates upward and project 24% revenue growth for fiscal year 2025. Current analyst price targets range from $20 to $23, suggesting potential upside from the current trading price of $19.39 (as of September 10, 2025).
With its strong market position, robust financial performance, and clear growth strategy, American Integrity appears well-positioned to capitalize on favorable market conditions and continue its impressive trajectory in the coming quarters.
Full presentation:
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