American Integrity EPS Jumps in Q2

Key Points

• Non-GAAP earnings per share of $1.84 exceeded analyst estimates by 9.5% in Q2 2025, driven by strong policy and premium growth.

• GAAP revenue of $74.5 million in Q2 2025 fell well short of the $287.3 million consensus primarily due to extensive use of reinsurance.

• The combined ratio rose to 72.9%, reflecting one-time public offering expenses, while policy count surged 49.8% year over year.

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American Integrity Insurance Group (NYSE:AII), a Florida-focused property and casualty insurer, released its second-quarter 2025 results on August 12, 2025. The company reported non-GAAP earnings per share of $1.84, beating analyst expectations of $1.68 (non-GAAP), while GAAP revenue of $74.5 million missed the consensus estimate of $287.3 million by a wide margin. This pattern reflects the firm’s business model, which heavily relies on reinsurance. The quarter was marked by surging policy and premium growth, substantial expansion into new Florida markets, and notable one-time expenses tied to its initial public offering. Despite the revenue miss, the company delivered solid growth and underlying profitability (non-GAAP), though adjusted performance metrics provide a clearer view of operations than the headline revenue figure.

Source: Analyst estimates for the quarter provided by FactSet.

Business Overview and Key Focus Areas

American Integrity is a specialist in Florida property insurance, providing homeowners with coverage for risks such as hurricanes and severe weather. Its core business is rooted in writing residential insurance and managing risk through extensive reinsurance arrangements. The company operates almost exclusively in Florida, making it highly sensitive to regulatory changes, weather events, and developments in the state’s insurance market.

Recently, its focus has been on rapid expansion, both organically and by assuming policies from Citizens Property Insurance Corporation—a state-backed insurer. A key to success is maintaining disciplined underwriting, especially as it enters Miami-Dade and Broward counties for the first time in over a decade.

Quarterly Performance, Growth Drivers, and Notable Events

The second quarter showed a sharp rise in premium volume. Gross premiums written increased 29.5% compared to Q2 2024, and Net premiums earned (GAAP) jumped 63.3%. The surge was driven by growth in both new and renewal business, along with strategic policy take-outs from Citizens. American Integrity assumed 7,372 policies from Citizens, contributing to the strong gain in policies in-force, which reached 399,138—a 49.8% increase over the same period last year. The company highlighted that regulatory approval allowed it to begin writing voluntary insurance in Miami-Dade and Broward, opening up access to a region representing more than a quarter of Florida households.

Across its insurance operations, the loss ratio, which measures claims paid as a percentage of net premiums earned plus policy fees, was 30.6%. The combined ratio, a critical industry benchmark summing both loss and expense ratios, increased to 72.9%. This rise was due chiefly to $16.5 million in non-recurring expenses connected to the company’s public offering, including stock-based compensation and management buyout costs.

Net investment income increased 40.0% compared to Q2 2024. This improvement was primarily driven by an increase in the size of the investment portfolio, resulting from higher cash and fixed-maturity securities balances. Meanwhile, the purchase of additional reinsurance mirrored the increase in policies and insured values, supporting the company’s risk transfer strategy. Management noted that there were no major insurance claims from catastrophes during the period, a positive for Florida-exposed insurers.

A significant one-time aspect in this quarter was the impact of the IPO, which closed in May 2025. This event led to a $100 million capital injection and a tax status change, which resulted in a deferred tax asset gain of approximately $9.7 million and lowered the reported tax rate to negative 14.1%. Equity nearly doubled compared to the prior year, rising from $162.4 million as of December 31, 2024, to $301.9 million as of June 30, 2025 (GAAP, calendar year basis), strengthening the firm’s capital position as it embarks on further growth in new and existing markets.

Forward Outlook and What to Watch Ahead

Management did not provide explicit financial guidance for upcoming quarters or for fiscal 2025 as a whole. It did, however, stress confidence in continued policy and premium growth, highlighting that the number of policies in-force had already surpassed 400,000 following Q2 2025 thanks to ongoing expansion in high-population Florida counties. Statements acknowledged risks from potential catastrophic events and the importance of maintaining prudent underwriting as growth accelerates.

Looking forward, investors should pay close attention to normalization of expense ratios following the IPO, further clarity on how reinsurance usage will continue to affect GAAP revenue recognition, and the company’s ability to manage loss costs as it scales its presence in recently entered markets. Expansion into hurricane-prone regions presents both significant opportunity and risk. American Integrity Insurance Group does not currently pay a dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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