American Integrity Insurance Group (AII) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $19.9 million ($1.02 per diluted share), down 47.7% from the prior year, mainly due to reduced Citizens take-out windfall and higher expenses, despite strong voluntary market and policy growth.

• Policies in force grew 14.1% year-over-year to 437,308, with voluntary customer growth of 18% and significant expansion in Florida, Georgia, South Carolina, and North Carolina.

• A $20 million special cash dividend was paid in Q1 2026.

• Leadership transition included a new CFO and continued focus on capital markets expertise.

• CAT reinsurance costs are declining faster than premiums, providing an earnings tailwind.

Financial highlights

• Gross premiums written increased 3.7% to $220 million; net premiums earned rose 25.7% to $82.2 million; gross premiums earned reached $230.8 million.

• Net investment income grew 37.8% to $5.7 million, supported by higher invested assets and IPO proceeds.

• Losses and LAE increased 52.1% to $31.7 million; policy acquisition expenses surged 414.5% to $16.0 million; general and administrative expenses rose 218.8% to $16.0 million.

• Combined ratio increased to 75% from 42.9% in the prior year; loss ratio rose to 37.3% from 30.9%; expense ratio jumped to 37.6% from 12%.

• Return on equity was 23.7%, down from 87.5% in Q1 2025; adjusted ROE was 24%.

Outlook and guidance

• Management expects continued growth from voluntary production, strategic expansion in Florida and new markets, and disciplined underwriting.

• Strategic reduction in non-cat quota share reinsurance from 40% to 25% effective January 2026, reflecting confidence in portfolio profitability.

• Anticipate substantial rate softening and improved terms in upcoming June 1 reinsurance renewal.

• Growth remains the top capital priority, with capital allocation decisions to be revisited post-wind season.