American Integrity Insurance Group, Inc.

Hello and thank you for standing by. My name is Sarah and I will be your conference operator today. At this time, I would like to welcome everyone to the American Integrity Insurance Group fourth quarter and full year 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. As a reminder, this call is being recorded. Before we begin, please note that today's remarks may contain forward-looking statements, including comments about the company's outlook, strategy, plans, and expected performance. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially. A full discussion of the risk factors can be found in the company's SEC filings, including its most recently filed annual report on Form 10-K and quarterly report on Form 10-Q. Management undertakes no obligation to update any forward-looking statements. Furthermore, today's remarks may contain non-GAAP financial measures. A reconciliation of non-GAAP financial measures to their most comparable GAAP measures is included in the company's quarterly press release, and can also be found on the website at www.aii.com. 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'll turn the call over to American Integrity's founder and chief executive officer, Bob Ritchie, please go ahead.

Thank you, and good morning, everyone. This is an extraordinary moment in American integrity's journey, and I'm honored to share it with you today. This past year has been a defining chapter in our company's history. In May of last year, we completed our very successful initial public offering, raising gross proceeds of $100 million This was a milestone that not only strengthened our balance sheet, but it also affirmed a message that American Integrity is a company built for scale, resilience, and durable value creation. Importantly, our IPO was not a destination. It was a catalyst. It was a launching point. And today, we're operating from the stronger foundation it created as we diversify our products, as we expand into new markets, and as we serve even more communities. Our robust quarterly and full year results are a testament to the strength of our underwriting discipline, the depth of our agent relationships, the trust of our policyholders, the confidence of our employees, and the improving health of the Florida marketplace. So I'd like to highlight some several key achievements from 2025. First, we grew gross premiums earned by nearly 30% year over year to 885 million. We delivered adjusted net income available to common shareholders of $103 million or $5.97 per diluted share compared to 37.9 million or $2.94 per diluted share in the prior year. We achieved a combined ratio record of 63.7%. This is a more than 17-point improvement from 80.9% that we achieved in 2024. We recorded a 42.1% adjusted return on equity, and this is up from 26.8% in 2024 and we increased our customer count 19% from 356,000 to nearly 422,000 customers. Like many other leading carriers in Florida, our financial results benefited from well underwritten profitable takeouts from citizens in late 2024 and early 2025. As expected, the phase of large, profitable citizens' takeouts is complete. And importantly, our growth engine today is organic and voluntary, supported by deep agent relationships and disciplined underwriting. Our results are underpinned by strong, organic, voluntary growth. Our voluntary customer count increased 16% to 327,000 policies during 2025, based upon a total production of 104,000 new voluntary policies written during the year. In our home state of Florida, which represents 97% of our current in-force premium, we ended the year as the sixth largest rider based upon policy count, having written the third most policies after excluding national carriers and citizens. This voluntary growth positions us among the fastest growing competitors in our entire peer group. Our ongoing policy growth is a direct result of our deep relationships with our agent partners that have been cultivated for over two decades and we believe positions us for sustained success as we execute our growth initiatives, including our recent reentry into the Tri-County region of Florida, our expansion into the middle-aged home market, our newly launched commercial residential product, and our recent entry into North Carolina. We believe we are positioned for diversified profitable growth for years to come, which will create substantial value for our stockholders. Importantly, we remain disciplined and we pursue responsible growth as we strive to maintain a strong balance sheet purposefully built to weather cycles and support our insureds, our distribution partners, our employees, and our shareholders. We've got exciting news. I'm pleased to announce that our Board of Directors has declared a special cash dividend to our stockholders of $1.02 per share, which aggregates to $20 million. American Integrity has a long history of returning capital to stockholders following periods of exceptional performance while retaining sufficient capital to pursue our growth opportunities. With that, I'll turn the call over to John Ritchie to discuss operational execution, and more deeply, our growth initiatives. John?

Bob, I'll focus on how we believe our disciplined execution this quarter positions us for sustainable growth into 2026. Starting with our results, we continue to grow in our core Florida market. In the fourth quarter, we wrote 26,025 new policies in the voluntary market. bringing our full year total to over 104,000, representing a 17% increase over the full year 2024. Combined with improving retention levels reaching 82.7% this quarter, our voluntary policies and force has increased 16% over the past year to 332,780 policies. We also assumed almost 8,000 citizens' residential takeout policies in the fourth quarter, representing 24.2 million of assumed unearned premium as compared to approximately 68,200 policies in the fourth quarter of 2024. Our citizens' takeouts decreased as fewer policies met our underwriting and target profitability standards. Importantly, We expected this and our voluntary policy growth remains the driver of our policy growth given the many strategic initiatives that we have implemented over the last year. Starting with the Tri-County region of Florida, we re-entered this market in the third quarter of 2025 and have been building momentum through the fourth quarter and into the new year. At the year end 2025, we had 29,226 policies in force in the Tri-County region representing 7% of our book, which we believe is well below our potential market share for an area representing about 28% of Florida's households. While most of this business in the Tri-County region has come from the citizens takeouts over the last year, we are pleased with the early results we are seeing in our voluntary policy writing in this area. We believe our growth in the Tri-County region will continue through 2026 and represent the multi-year opportunity. Another growth avenue is our renewed focus on middle-aged homes, which represents another large market opportunity. In fact, middle-aged homes represented 76% of our HO3 policies in force as of 2016, prior to the litigation crisis that gripped Florida the last decade. and which declined to 26% of our policies in force as of 2025 as we managed the risk profile of our business. Given the legislative reforms that were passed in 2022, this market has become attractive once again, and we have reoriented our sales and production efforts to ramp up our writings. Importantly, we have completed our extensive underwriting efforts to refine and price our go-to-market and are pleased with the early acceleration we are seeing in our production numbers. We launched our commercial residential product in October 2025, which is designed to deliver comprehensive and reliable protection for Florida's condominium, townhouse, and residential homeowners associations. The fourth quarter of 2025, we assumed 149 commercial residential policies from citizens, representing 5.9 million assumed unearned premium, and began writing commercial residential policies in the voluntary market. Likewise, we are pleased with the early results, which are consistent with our desire to leverage early insights to refine the product and scale responsibly. We also continue to have success growing our writings in Georgia and South Carolina, largely through our Florida home builder agent relationships, and have begun writing policies in North Carolina, though Florida will remain our core market for years to come. At year-end 2025, our out-of-state policies had more than doubled to 26,732 policies enforced. Finally, from a growth perspective, I am pleased to report that we reduced our non-CAT quota share from a 40% session rate to 25% and renewed the treaty with significantly improved pricing. We expect that this will drive additional revenue and reduce the cost of our quota share by approximately 50% during 2026. In 2025, we seeded $248 million of earned premium and generated $276 million of revenue. With the newly lowered session rate, we would have seeded $155 million of earned premium and generated revenue of $369 million. We believe these changes will have a positive impact on net income in 2026. The underlying or non-CAT loss environment and our results continue to be favorable. For every dollar of gross premiums we earn, we paid out 17 cents in non-CAT losses in 2025, consistent with 2024, a strong ratio representative of our underwriting focus and higher market share of newer homes. We introduced this metric in our earnings release and annual report on Form 10-K, to reduce the noise that is inherent in the net loss ratio due to large changes in the quota share and excess of lost CAD expenses, which we believe helps investors better understand our trends. We would expect this number to increase modestly as we increase the proportion of policies in our book in Tri-County and for homes with middle-age roofs. This has also been a favorable year for catastrophe losses, given that we did not experience a catastrophe loss for the first time in many years. That is certainly welcome news for Florida, our policyholders, and our stockholders. Importantly, the combination of the catastrophe lost for a year in Florida and increased capital availability in the global reinsurance market, expectations for favorable pricing for our reinsurance renewal are high. Many market commentators estimate that, depending on region, risk-adjusted rate decreases will range from 10% to 20% for 2026 renewals. With that, let me turn the call over to Ben to walk through the financials.