American Integrity Insurance Group, Inc. Q3 FY2025 earnings call

• Growth in core Florida market: Wrote 25,985 new voluntary policies in Q3, year-to-date over 78,000, up 25% from 2024. Voluntary policies in force up 19% to 315,000. - Progress in Tri-County region: 26,493 policies in force, 6.5% of book. - Middle-aged homes: Adjusting product mix to be competitive post-legislative reform, 32,202 HO3 policies in force, 7.9% of portfolio. - Commercial residential product: Launched in October, expect first writings in Q4 including participation in Citizens takeout. - Growth in Georgia, South Carolina, and North Carolina: Beginning to write policies in North Carolina in December. - Favorable non-cat losses: Underlying non-cat losses performing as expected, $0.17 per premium dollar going to non-cat losses, in line with expectations.

In the third quarter, gross premiums written increased by 49% to $239 million compared to $161 million in Q3 2024. Gross premiums earned rose 34% to $222 million vs $165 million in Q3 2024. Net premiums earned went up 28% to $52 million vs $40 million in Q3 2024. Policy count at September 30, 2025, was 406,000 policies, up 49% year-over-year. Voluntary policies in force increased 19% over the past year to 315,000. Underlying loss and loss adjustment expense ratio for Q3 2025 was 50%, combined ratio was 79%. Net income available to common shareholders was $13 million, adjusted net income was $14 million. Total shareholders' equity increased 95% to $316 million at September 30, 2025.

• Voluntary growth viewed as more significant driver than Citizens takeouts going forward. - Reinsurance capacity and pricing environment expected to be favorable, especially with a loss-free year in Florida. - Intention to gradually reduce use of quota share over time to keep more profitable premium on books. - Expectations of a muted change in gross loss ratio over the next 12 months, with considerations of inflation and Citizens book impact.

• Political risks: Unpredictability with speaker of the house and house bills, but governor's office and Senate are firm on continuing reforms. - Volatility in underlying loss ratio due to structural features of quota share reinsurance arrangement, leading to variance in quarterly results. - Potential changes in reinsurance market dynamics that could impact retention and costs.

Q: Talk about impacts on core loss ratios from going after middle-age roofed homes?

A: Jon Ritchie said middle-aged homes should perform in line with expectations, not to same extent as new construction but comfortable with where it's heading.

Q: Learning from homeowners market translating to commercial side?

A: Bob Ritchie said 18 months spent studying, developing, staffing for commercial side, will be measured, profitable, and homework done.

Q: Mechanics of underlying loss ratio volatility due to quota share?

A: Benjamin Lurie explained underlying losses at 17.4% gross rate year-to-date, 33% net underlying loss ratio when stripping quota share, with no cats causing slightly higher underlying loss ratio.

Q: Reconciliation of political motivations to unwind legislative benefits?

A: Bob Ritchie said 2 of 3 leaders (governor, Senate President) are in favor of continuing reforms, reforms solid and not likely to be undone.

Q: Lower retention or reinsurance changes in 2026?

A: Jon Ritchie said directionally reinsurance capacity and pricing favorable, entering catastrophe bond renewal in January with ample capacity expected.