American Integrity Insurance Group, Inc. (AII)

Overview

We are a profitable and growing insurance group headquartered in Tampa, Florida. Through our insurance carrier

subsidiary, American Integrity Insurance Company (“AIIC”), we provide personal residential property insurance for single-

family homeowners and condominium owners, as well as coverage for vacant dwellings and investment properties,

predominantly in Florida. Florida represented 92.0% of our policies in-force as of June 30, 2026. As of June 30, 2026,

73.2% of our in-force premium was in the insurance market in which we underwrite and sell policies to policyholders

where we choose to offer coverage without the assistance of residual market mechanisms (the “Voluntary Market”).

Moreover, 93.7% of our Voluntary Market in-force premium was in our core Florida market and 6.3% was collectively in

South Carolina, Georgia, and North Carolina, where we have strategically expanded to support and enhance our

relationships with our builder agency network.

We strive to generate consistent underwriting profits, exclusive of investment income or gains and losses from the sale of

invested assets. Our goal is to achieve profitability across economic and insurance cycles by maintaining a conservative

financial position, increasing premiums written and risk exposure when we believe market conditions are favorable, and

reducing risk exposure during periods when we believe market conditions are unfavorable and earning profits is more

challenging. AIIC, our statutory insurance carrier, maintains a Financial Stability Rating of “A” (Exceptional) by

Demotech, and a financial strength rating of “BBB+” with a stable outlook from the Kroll Bond Rating Agency, LLC.

Additionally, the Company maintains a BB+ issuer rating, with a stable outlook, from the Kroll Bond Rating Agency, LLC.

We generate revenue primarily from insurance premiums earned, net of reinsurance ceded. We also generate revenue from

policy fees, installment income fees, income generated through the investment of our assets, and realized gains or losses on

the sale of our invested assets. Our financial results are highly seasonal due to the occurrence of hurricanes and tropical

storms typically between June 1st and November 30th of each year in Florida and the other states in which we operate. Our

reinsurance purchasing, including our catastrophe excess of loss reinsurance coverages, which commence on June 1st

annually, also materially influences our financial results and are impacted by changes in reinsurance rates or alterations in

terms and conditions, including in attachment or loss retention levels.

Key Factors Affecting Our Results of Operations and Comparability Between Periods

Florida Trends. Prior to the legislative reforms passed in December 2022, the legal and regulatory environment in Florida

posed significant challenges for property and casualty insurers, particularly due to excessive litigation and aggressive

claims practices relating to issues such as assignment of benefits abuse, extended statute of limitations, and attorney fee

multipliers, which led to disproportionately high litigation rates in Florida relative to other geographies. These factors

increased claims costs and reinsurance expenses, impacting the profitability of insurers operating in Florida. Recent

legislative changes, however, have improved operating conditions in the Florida insurance market, including a reduction in

claims litigation activity since the reforms were enacted in December 2022. We believe these legislative reforms provide

greater opportunities for us to profitably underwrite residential property insurance in Florida.

Citizens “Take-out” Program. Pursuing take-outs from Citizens Property Insurance Corporation (“Citizens”) may distort

the comparability of our financial results between periods depending on the number of policies and unearned premiums

assumed. In 2026, we expect take-outs to be a smaller portion of our gross premiums written compared to 2024 and 2025.

While we expect there will continue to be opportunities to assume some policies from Citizens, we believe the number of

policies available that meet our underwriting and profitability standards has declined and may continue to decline over

time. Policies assumed via the Citizens take-out program carry immaterial upfront acquisition costs and are covered by our

current treaty year reinsurance program which may impact comparability between periods. As a result, periods of heavy

take-out activity result in lower expense ratios and loss ratios.

Table of Contents

Changing Climate Conditions. Over the past two decades, the increasing frequency and severity of severe weather events

have highlighted the unpredictable nature of climate trends. Climate change has the potential to influence the occurrence

and intensity of natural disasters, including convective storms, hurricanes, tornadoes, hailstorms, severe winter storms, and

flooding, among others. This unpredictability creates challenges in assessing future risks and exposures.

We continuously monitor climate data and collaborate with climate change and catastrophe modeling experts to refine our

risk assessment models, enhancing our preparedness for evolving climate-related challenges.

Seasonality of our Business. Our business is seasonal as hurricanes and other named storms typically occur in the

geographies where we operate between June 1st and November 30th of each year. This may result in significant variability

in our losses and loss adjustment expenses (“LAE”) depending on the number, location and strength of hurricanes and

other named storms during these months as compared to other months. In addition, because our catastrophe reinsurance

program renews on June 1st each year, the ceded premiums written recorded in the second quarter are typically

substantially higher than any other quarter during a fiscal year. In some instances, this will cause our reported net

premiums written to be negative (or substantially lower than other quarters) in the second quarter of each year.

Inflation. We may be adversely affected during periods of high inflation, primarily because of increased labor and material

costs, which could cause claims and claim expenses to increase. This has been evident since the COVID-19 pandemic in

early 2020. In addition, periods of high inflation can lead to periods of high interest rates, which may impact the

performance of our investment portfolios. The impact of inflation on our results cannot be known with any certainty;

however, we revise our reserves for unpaid losses as additional information becomes available, and reflect adjustments to

our reserves, if any, in our earnings in the periods in which we determine the adjustments are necessary. We monitor

inflation trends and factor them into the pricing of our new business and renewal policies.

Cost and Availability of Reinsurance. We purchase excess of loss and quota share reinsurance as part of our capital

management strategy and in an effort to reduce volatility of earnings and protect our balance sheet from the impact of

potential catastrophe events. Our ability to implement an effective reinsurance strategy is dependent, in part, on the cost

and availability of reinsurance coverage. We ceded 60.5% and 69.7% of our gross premiums earned in the six months

ended June 30, 2026 and June 30, 2025, respectively.

Quota share. Effective January 1, 2026, we reduced the percentage of our ceding commission on our quota share

reinsurance treaty from 40% to 25%, which impacted the comparability of our results between periods. A lower ceding

commission increases the amount of premiums we retain on policies we write, and the reduction in the ceding commission

on our quota share reinsurance treaty also reduces the amount reimbursed by reinsurers pursuant to the treaty, which

increases policy acquisition expenses and general and administrative expenses.

Initial Public Offering and Corporate Contribution

On May 9, 2025, we completed our initial public offering (the “IPO”) of an aggregate of 6,875,000 shares of the

Company’s common stock, par value $0.001 per share (the “Common Stock”), at a price to the public of $16.00 per share,

6,250,000 of which shares were sold by the Company and 625,000 of which shares were sold by certain selling

stockholders. The gross proceeds to us from the IPO were $100 million, and gross proceeds to the selling stockholders

from the IPO were $10 million, before deducting underwriting discounts and commissions and estimated offering

expenses. On May 13, 2025, the underwriters completed the exercise of their option to purchase an additional 1,031,250

shares of Common Stock from the selling stockholders resulting in an additional $16.5 million in gross proceeds to the

selling stockholders, before deducting underwriting discounts and commissions. We did not receive any gross proceeds

from the sales of shares of Common Stock by the selling stockholders. In connection with our IPO, we effected a net

issuance of 417,470 shares of restricted stock to certain of our employees and consultants (the “Restricted Stock Grant”)

after giving effect to the withholding of approximately 234,587 shares of Common Stock to satisfy the estimated tax

withholding and remittance obligations (the “Restricted Stock Grant Net Settlement”). We incurred a one-time share-based

compensation expense of $10.4 million in connection with the Restricted Stock Grant and paid $3.8 million in connection

with the Restricted Stock Grant Net Settlement. The compensation expense for these awards was recognized in the second

quarter of 2025. Immediately prior to the IPO, the owners of the equity interests of American Integrity Insurance Group,

LLC (“AIIG”) contributed all of their equity interests to the Company in exchange for an aggregate of 12,904,495 shares of

Common Stock.

Table of Contents

Results of Operations

The following table summarizes our results of operations for the three and six months ended June 30, 2026 and 2025:

[Excerpt truncated for page length; source filing is linked above.]

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion provides a detailed analysis of our financial condition, results of operations, liquidity, and capital

resources. The following discussion and analysis of our financial condition and results of operations should be read in

conjunction with the audited consolidated financial statements and related notes included elsewhere in this Annual Report

on Form 10-K. In addition, this analysis includes forward-looking statements, which are subject to various risks and

uncertainties. Actual results may differ from projections due to factors beyond our control, as detailed under Part I, Item

1A “Risk Factors.” Our actual results could differ materially from those discussed in the forward-looking statements.

Factors that could cause or contribute to those differences include those discussed below and elsewhere in this Annual

Report on Form 10-K, particularly in “Risk Factors” and “Special Note Regarding Forward-Looking Statements.”

References to the “Company,” “American Integrity,” “we,” “us” or “our” refer to American Integrity Insurance Group,

Inc. and its consolidated subsidiaries.

Overview

We are a profitable and growing insurance group headquartered in Tampa, Florida. Through our insurance carrier

subsidiary, American Integrity Insurance Company (“AIIC”), we provide personal residential property insurance for single-

family homeowners and condominium owners, as well as coverage for vacant dwellings and investment properties,

predominantly in Florida. Florida represented over 96.3% of our direct premiums written and 93.7% of our policies in-

force as of December 31, 2025. As of December 31, 2025, 69.1% of our in-force premium is in the insurance market in

which we underwrite and sell policies to policyholders where we may freely choose or reject without the assistance of

residual market mechanisms (the “Voluntary Market”). Moreover, 95.0% of our Voluntary Market in-force premium was

in our core Florida market and 5.0% was in South Carolina, Georgia, and North Carolina, where we have strategically

expanded to support and enhance our relationships with our builder agency network.

We strive to generate consistent adjusted underwriting profits, exclusive of investment income or gains and losses from the

sale of invested assets. Our goal is to achieve long-term profitability across economic and insurance cycles by maintaining

a conservative financial position, increasing premiums written and risk exposure when we believe market conditions are

favorable, and reducing risk exposure during periods when we believe market conditions are unfavorable and earning

profits is more challenging. AIIC, our statutory insurance carrier, maintains a Financial Stability Rating of

“A” (Exceptional) by Demotech, and a financial strength rating of “BBB+” with a stable outlook from the Kroll Bond

Rating Agency, LLC. Additionally, the Company maintains a BB+ rating, with stable outlook, from the Kroll Bond Rating

Agency, LLC.

We generate revenue primarily from insurance premiums earned, net of reinsurance ceded. We also generate revenue from

policy fees, installment income fees, income generated through the investment of our assets, and realized gains or losses on

the sale of our invested assets. Our financial results are highly seasonal due to the occurrence of hurricanes and tropical

storms typically between June 1st and November 30th of each year in Florida and the other states in which we operate. Our

reinsurance purchasing, including our catastrophe excess of loss reinsurance coverages, which commence on June 1st

annually, also materially influences our financial results and are impacted by changes in reinsurance rates or alterations in

terms and conditions, including in attachment or loss retention levels.

Key Factors Affecting Our Results of Operations and Comparability Between Periods

Florida Trends. Prior to the legislative reforms passed in December 2022, the legal and regulatory environment in Florida

posed significant challenges for property and casualty insurers, particularly due to excessive litigation and aggressive

claims practices relating to issues such as assignment of benefits abuse, extended statute of limitations, and attorney fee

multipliers led to disproportionately high litigation rates in Florida relative to other geographies. These factors increased

claims costs and reinsurance expenses, impacting the profitability of insurers operating in Florida. Recent legislative

changes, however, have improved operating conditions in the Florida insurance market, including a reduction in claims

litigation activity since the reforms were enacted in December 2022. We believe these legislative reforms provide greater

opportunities for us to profitably underwrite residential property insurance in Florida.

Citizens “Take-out” Program. In late 2024, we strategically expanded our policy base, assuming 68,844 policies,

representing $112.4 million in assumed unearned premiums from Citizens Property Insurance Corporation (“Citizens”). In

2025, we assumed 33,867 policies from Citizens, representing $73.2 million in assumed unearned premiums. These

policies we assume carry no upfront acquisition costs and are covered by our current treaty year reinsurance program.

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In late 2025, we began selectively participating in commercial policy take-outs from Citizens. These take-outs represented

149 policies out of the 33,867 total assumed policies and represent $5.9 million of the $73.2 million in assumed unearned

premiums. These policies are subject to the same underwriting and profitability standards as our residential assumptions

and are intended to complement our existing portfolio.

Over the past decade, market conditions did not support take-outs from Citizens that aligned with our underwriting and

profitability standards, and prior to 2024 our last assumption of policies from Citizens was in 2014. However, we believe

recent regulatory changes, improvements in the data made available on Citizens policies, and rate increases implemented

by Citizens that have made pricing more comparable to the Voluntary Market have increased the attractiveness of assuming

policies from Citizens. While we expect there will continue to be opportunities to assume policies from Citizens, we

believe the number of policies available that meet our underwriting and profitability standards has declined and may

continue to decline over time.

Changing Climate Conditions. Over the past two decades, the increasing frequency and severity of severe weather events

have highlighted the unpredictable nature of climate trends. Climate change has the potential to influence the occurrence

and intensity of natural disasters, including convective storms, hurricanes, tornadoes, hailstorms, severe winter storms, and

flooding, among others. This unpredictability creates challenges in assessing future risks and exposures.

We continuously monitor climate data and collaborate with climate change and catastrophe modeling experts to refine our

risk assessment models, enhancing our preparedness for evolving climate-related challenges.

Seasonality of our Business. Our business is seasonal as hurricanes and other named storms typically occur in the

geographies where we operate between June 1st and November 30th of each year. This may result in significant variability

in our losses and loss adjustment expenses (“LAE”) depending on the number, location and strength of hurricanes and

other named storms during these months as compared to other months. In addition, because our catastrophe reinsurance

program renews on June 1st each year, the ceded premiums written recorded in the second quarter are typically

substantially higher than any other quarter during a fiscal year. In some instances, this will cause our reported net

premiums written to be negative (or substantially lower than other quarters) in the second quarter of each year.

Inflation. We may be adversely affected during periods of high inflation, primarily because of increased labor and material

costs, which could cause claims and claim expenses to increase. This has been evident since the COVID-19 pandemic in

early 2020. In addition, periods of high inflation can lead to periods of high interest rates, which may impact the

performance of our investment portfolios. The impact of inflation on our results cannot be known with any certainty;

however, we revise our reserves for unpaid losses as additional information becomes available, and reflect adjustments to

our reserves, if any, in our earnings in the periods in which we determine the adjustments are necessary. We monitor

inflation trends and factor them into the pricing of our new business and renewal policies.

Cost and Availability of Reinsurance. We purchase excess of loss and quota share reinsurance as part of our capital

management strategy and in an effort to reduce volatility of earnings and protect our balance sheet from the impact of

potential catastrophe events. Our ability to implement an effective reinsurance strategy is dependent, in part, on the cost

and availability of reinsurance coverage. In recent years, reinsurance rates have significantly increased and terms and

conditions have tightened (including reductions on what we are able to charge for claims administration), particularly for

catastrophe exposed property lines of business. This can be attributed to a variety of factors, including high inflation and a

rising interest rate environment, social inflation, the frequency and severity of natural catastrophes including large

hurricanes in Florida such as Hurricane Ian and Milton, and reinsurance capacity constraints. We ceded 72.5% and 73.3%

of our gross premiums earned in the years ended December 31, 2025 and December 31, 2024, respectively.

Initial Public Offering and Corporate Contribution

On May 9, 2025, we completed our initial public offering (the “IPO”) of an aggregate of 6,875,000 shares of the

Company’s common stock, par value $0.001 per share (the “Common Stock”), at a price to the public of $16.00 per share,

6,250,000 of which shares were sold by the Company and 625,000 of which shares were sold by certain selling

stockholders. The gross proceeds to us from the IPO were $100 million, and gross proceeds to the selling stockholders

from the IPO were $10 million, before deducting underwriting discounts and commissions and estimated offering

expenses. On May 13, 2025, the underwriters completed the exercise of their option to purchase an additional 1,031,250

additional shares of Common Stock from the selling stockholders resulting in an additional $16.5 million in gross proceeds

to the selling stockholders, before deducting underwriting discounts and commissions. We did not receive any gross

proceeds from the sales of shares of Common Stock by the selling stockholders. In connection with our IPO, we effected a

56

net issuance of 417,470 shares of restricted stock to certain of our employees and consultants (the “Restricted Stock

Grant”) after giving effect to the withholding of approximately 234,587 shares of Common Stock to satisfy the estimated

tax withholding and remittance obligations (the “Restricted Stock Grant Net Settlement”). We incurred a one-time share-

based compensation expense of $10.4 million in connection with the Restricted Stock Grant and paid $3.8 million in

connection with the Restricted Stock Grant Net Settlement. The compensation expense for these awards was recognized in

the second quarter of 2025. Immediately prior to the IPO, the owners of the equity interests of American Integrity

Insurance Group, LLC (“AIIG”) contributed all of their equity interests to the Company in exchange for an aggregate of

12,904,495 shares of Common Stock.

Results of Operations

Year Ended December

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