American Integrity Insurance Group, Inc.

Hello, and thank you for standing by. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to the American Integrity Insurance Group second quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After this speaker's remarks, there will be a question and answer session. As a reminder, this call is being recorded. But before we begin, please note that today's remarks may contain forward-looking statements, including comments about our outlook, strategy, plans, and expected performance. These statements are based on the current expectations and assumptions and are subject to recent uncertainties that may cause actual results to differ materially. A full discussion of the risk factors can be found in American Integrity's FAC filings, including its most recently filed quarterly report on Form 10Q. Management undertakes no obligation to update any forward-looking statements. Furthermore, if this marks a gap in financial measures, A reconciliation of planned GAAP financial measures to their most comparable GAAP measures is included in the company's quarterly press release and can also be found on its website at www.aii.gov. References to American Integrity or the company prior to the consummation of the IPO refer to American Integrity Insurance Group LLC and after the consummation of the IPO refer to American Integrity Insurance Group Inc. With that, I will turn the call over to American Integrity's founder, and Chief Executive Officer Bob Ricci. Please go ahead.

Thank you, Mark, and good morning, everyone. I'm very pleased to be speaking with you to discuss our second quarter results and our growth initiatives that are designed to further build the value of American integrity for all of our stakeholders. I see a long runway ahead that is anchored in discipline underwriting, a best-in-class technology platform, and deep trusted independent agency relationships. This foundation positions us to thrive in a market that has gone through a transformation given recent legislative and regulatory changes, and it presents significant room for growth that will sustain American integrity for years to come. This can be seen in our second quarter results where we delivered robust policy growth given our strong distribution network combined with our expansion into underserved but stable counties in Florida. Our strong policy growth was assisted by another quarter of improving retention on renewals that we believe can continue and it bodes positively for growth to come in the quarters ahead. Importantly, we have significant space for voluntary growth in Florida as our rate filings for Miami-Dade and Broward counties were recently accepted, and we are set to start writing policies there. The tri-county region of Miami-Dade, Broward, and Palm Beach represents one of the most valuable and concentrated homeowner markets in the state of Florida, with approximately 2.37 million occupied housing units in these counties. And this accounts for over 26% of the entire state's total households. So this corridor is not only densely populated, yet it's also home to some of the highest property values and insurance premiums in the entire Southeast. And in fact, this tri-county region of three counties would be the 18th largest state in the United States based upon population. American Integrity's tailored product suite, designed specifically for Florida's coastal risk, including single-family homes, condominiums, and investment properties, aligns with the structural makeup and exposure profiles of this tri-county region. Our growth engine is powered by both citizens depopulation and robust voluntary market expansion. which is allowing us to scale quickly and efficiently into high yield zip codes while still maintaining our underwriting discipline. Another open edge market for the company is writing policies on homes with older roofs. Our mix of business has skewed toward new build homes, given the strength of our builder agent relationships. And in fact, as we stated before, We've been riding three out of every ten new roofs on new construction homes in Florida. That said, it has moved our mix of business toward new build roofs, and we see an opportunity to expand our presence in the existing home market with older roofs because of their reforms. This represents a very large and addressable market. and one that is currently under-penetrated by design historically because of the lack of reforms by the company, but now it's a different timeframe. So we've started to write policies on older roofs and we see great potential and will remain focused on the stringent discipline underwriting to ensure we're earning adequate risk adjusted returns. While we expect Florida will be our core market for many years to come, As we've mentioned before, we've expanded to Georgia and South Carolina, given the strength of our builder relationships, and happy to report that we're reporting very strong success in growing the policy count in these two states. Additionally, we have recently been approved to write policies in North Carolina and expect to begin writing business in the fourth quarter, still focused primarily on new construction and builders. As you can see, we have really strong competitive barriers in the state of Florida, and that has positioned us to succeed. And we're opening large markets that represent untapped potential that will translate to sustained policy growth in the years ahead. So, additionally, although our successful IPO in May provides us with the capital to fund this high return organic growth, We are in a position now and couldn't be more excited with the opportunities that lie ahead. So before we turn to operational highlights, I want to take a moment to recognize a very important milestone in our company's history. Just a very few days ago, we surpassed 400,000 policies in force, 400,000 customers, a number that is both historic and deeply symbolic for every one of us. It's more than just a policy count. It's a statement of trust, scale, and post-IPO momentum. I think it reflects the grit, execution, and values-driven culture that have defined American integrity from day one. So crossing this 400,000 mark tells our employees, our customers, our agents, and now our new investors that we're not just growing, we're building something enduring. And in the face of a complex market and rising expectations, we're proving that integrity and resilience remain the most powerful growth engines of all. So it's a proud moment for all of us at American Integrity. I want to thank every one of our team members and our partners

helped get us here now let me turn the call to john who will drill into the details of our growth initiatives thanks bob i'll focus my comments this morning on our success further expanding our business through the second quarter and highlight several growth initiatives that we have in place looking to the second half of 2025 and beyond starting with our results we continue to be pleased with our ability to grow in our core florida market In the second quarter, we wrote 27,807 policies in the voluntary market, which is an acceleration from the 24,554 policies that we wrote in the sequential first quarter and 22,048 policies that we wrote in the second quarter of 2024. We also assumed 7,372 additional policies from citizens, which compares to 16,632 policies from citizens assumed in the first quarter of 2025. We continue to expect modest takeout activity going forward. Through our voluntary and takeout operations, we are expanding our presence in underserved but stable counties, particularly across Northern and Central Florida and Palm Beach. with new premium growth driven by our targeted risk appetite, segmentation by construction type, and favorable litigation metrics. Our growth in northern Florida and inland central Florida reflects our strategy to balance exposure concentration while running the best risks in coastal areas through new home and roof-year segmentation. Our retention rate on renewal business improved to 80.9% in the second quarter from 78.1% in the first quarter, which continues a positive trend that we have been experiencing for several quarters. We believe this is a sign that the legislative and regulatory reforms in Florida are working and contributing to a more stable and rational market. Taken together, our strong policy growth and improving retention led to the increase in our enforced policy count and premiums to 399,000 policies and $921 million respectively. Our PIF count was up almost 50% over the past year and 4.1% over the past quarter. Looking to the second half of the year, we are excited to announce that our rate filings for Miami-Dade and Broward counties have been approved and are in our system. This is a region where we have essentially not written business in more than a decade and represents a significant market opportunity. As Bob highlighted, more than a quarter of Florida's population lives in the tri-county area, and the potential premium content of the homes in this market is even higher. Importantly, we have our distribution network in place with national carriers and home builder agents, and we expect they will begin writing business later this month. Our ability to turn a market on quickly and begin writing business in Miami-Dade and Broward is largely due to the technology platform that we have developed over many years. We have real-time data that allows us to create rates down to a census block level input those rates for our agents, and quickly adjust rates as market dynamics change. We can also provide underwriting parameters that are appropriate to the regional market conditions and make informed, data-driven decisions to ensure we maintain underwriting discipline. Ultimately, our platform enables us to execute our strategy and new initiatives quickly and efficiently as our agents can begin writing policies almost immediately. This positions us to quickly expand into the very large Miami-Dade and Broward market. Another new market opportunity is the pending launch of our Florida commercial residential lines. We have been hiring experienced underwriting talent and have the distribution network in place. Additionally, we have filed our rates and expect to begin writing new business in the fourth quarter. That said, we are taking a cautious approach with conservative underwriting as we enter this new line of business and expect volumes to be modest over the near term. Lastly, we continue to have good success in South Carolina and Georgia, where we have strategically expanded to support and enhance our relationships with our builder agency network. That said, Florida remains our core market and where we have built significant competitive advantages over the last 20 years. Today, over 97% of our in-force premium is in our core Florida market, and we do not see that materially changing in the coming years. Turning to the market, and as I briefly touched on, we are seeing a positive impact from the recent legislative reforms in Florida. Litigation and litigation expense have been dropping rapidly given the decline in frivolous lawsuits. Importantly, consumers will be the beneficiary as they begin to see some rate relief. We have filed a blended rate decrease of 3% and continue to have an appropriate inflation factor that provides an offset to rate decreases. As the market becomes increasingly rational, we expect our retention rate to continue to increase, our inflation guard to offset rate declines, and our new business initiatives to drive growth. Additionally, the legislative reforms in Florida have had a positive impact on reinsurance pricing through our June 1st renewal. As a reminder, we placed our excess of loss reinsurance program at a net cost that was below our expectations, representing a meaningful risk-adjusted price decrease. Commentary from various reinsurance brokers point to high single-digit to low double-digit rate decreases for the market, with more reductions on the top of the program and less under the Florida Hurricane Catastrophe Fund. With that, let me turn the call over to Ben to walk through the financials.