American Integrity Insurance Group, Inc.

Hello, and thank you for standing by. My name is Joel, 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 2026 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 If you would like to ask a question, please press star 1 to raise your hand To withdraw your question, press star 1 again 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 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 10K and quarterly report on Form 10Q. 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 its 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. We had an outstanding second quarter with record performance across several important measures and meaningful acceleration across our major strategic growth initiatives. Last quarter, we wrote approximately 43,000 voluntary new business policies during the quarter. This is a company record, first time ever, representing growth of approximately 54% compared with the second quarter of last year. and 44% sequentially from the first quarter of this year compared with the second quarter of last year and 44% sequentially from the first quarter of this year. And at the same time, we generated a record 46.4 million of income before taxes, a record for the entire company for a single quarter. I'm happy to report we also entered the quarter with more than $1 billion of enforced premium and approximately 462,000 policies enforced. These are both important milestones, and they demonstrate the scale our platform is achieving. Taken together, we believe these results demonstrate the increasing strength of American Integrity's organic growth engine. It's never been stronger. The platform we have built for over two decades is generating meaningful voluntary growth through our established distribution relationships. And while the improved Florida insurance environment is allowing us to expand thoughtfully in the markets and risk categories where we have significant experience and underwriting expertise. Now, as we discussed last quarter, we believe voluntary market opportunities expansion into very attractive segments of the Florida market and thoughtfully selected geographic expansion throughout the Southeast. All three of these will drive our growth. We believe that the second quarter provided further evidence that these initiatives are working and more importantly, our momentum is broad based. As many of you know, over these last several quarters, We have consistently highlighted three primary areas of opportunity. Number one, the Tri-County region of Florida. Number two, middle-aged homes. And number three, our expansion states in the southeast. During the second quarter, I'm pleased to report that every one of these initiatives continues to gain meaningful traction. Let's start with Tri-County. We wrote more than 7,600 voluntary new business policies during the quarter. Now, this compares to fewer than 200 in the prior year period. That's obviously a 40X increase. Second, in middle-age homes, we wrote more than 9,000 voluntary new business policies during the quarter. This compares to fewer than 450 in the prior year period. That's a 21X increase. These are particularly attractive areas for us because they represent markets and risks where we have considerable underwriting expertise and experience, historical data, and importantly, very deep and longstanding existing agency relationships. So we're not pursuing growth by moving outside our core competencies. As the economics of the Florida insurance market have improved, we're expanding participated in markets that we know very well. Importantly, our voluntary growth is being generated through our traditional distribution channels and underwriting platform. And we believe that type of growth creates a broader, more sustainable, and increasingly diversified earnings engine for American integrity. Outside of Florida, production also accelerated very meaningfully as we continued to expand our presence across the Southeast. During the second quarter, new business policies written in Georgia, South Carolina, and North Carolina increased 40% year over year, up from a 23% increase year over year in just Q1, 2026. Momentum is happening. These markets compliment our existing builder and agency distribution relationships, and they provide another avenue for disciplined organic growth. Now, while these markets remain a relatively small portion of our overall portfolio today, we believe they represent a very attractive opportunity to generate profitable growth while we further diversify our business over time. These markets also allow us to deepen our relationships with existing homeowner affiliated agents and other distribution partners, both nationally and regionally, who already know American integrity and want to do more business with us across multiple markets. Another important driver of our success continues to be our distribution network. What is particularly notable about our recent growth is that it is being driven primarily by long-standing agency relationships rather than brand new distribution partnerships. For markets such as Tri-County and middle-aged homes, our agency partners already know our underwriting philosophy, they understand our operating platform, and they're ready to respond as we expand our appetite for these risks. We continue to hear a consistent message from our agents They value stability, responsiveness, and ease of doing business. We're also seeing increased engagement from agency partners who are looking to consolidate more of their business with a smaller number of trusted carriers, and we're one of them. We believe our service level, our underwriting consistency, and our longstanding commitment to the market position us extremely well. capture a larger share of business within existing agency relationships. Now, this is a very important competitive advantage. It is unique to American integrity. Much of our strongest growth, again, is coming from these established relationships. So we believe this allows us not only to generate more submissions, more volume, but also to attract very high-quality business from partners who understand who we are and what we write. That is the value of the distribution franchise that has taken over 20 years to build. This leads to another really important point. The evidence continues to reinforce our view that Florida's legislative reforms are producing the intended results from the reform almost four years ago. litigation activity for the entire industry, and especially for us, continues a solid decline. Lost cost trends remain very favorable, and reinsurance pricing has meaningfully improved. At the same time, consumers are beginning to benefit with increased insurance availability and more moderate pricing. We view the current environment as evidence of a very healthy and sustainable marketplace. And there is not irrational competition. Importantly, as consumers increasingly experience these benefits, we believe the reforms become more durable over time. From our perspective, that durability creates a much more stable operating environment for both insurers and policyholders. So despite a somewhat softer market environment nationally, our premium for policy remains generally stable across our portfolio, given the next shift of our portfolio. Growth in higher valued homes, tri-county, middle-aged homes, and commercial residential business have largely offset modest rate reductions elsewhere in the book. Additionally, our inflation guard provides support as rates modestly decline. Overall, we believe we are entering the second half of this year, we'll go into it, from a position of considerable strength. We're generating record voluntary production. We're expanding successfully and thoughtfully across multiple growth channels. We're benefiting and some favorable market dynamics, all while maintaining very attractive underwriting economics. We believe that combination is expanding the long-term earning power of American integrity. With that, let me now turn the call over to Jon.

Thanks, Bob. I'll spend a few minutes going a bit deeper on what we're seeing in the business and how that is translating into our results. and then provide an update on our recently completed catastrophe reinsurance renewal. Starting with our results, we continue to see strong growth in our core Florida market and across our expansion states in the southeast. During the second quarter, gross premiums written increased 13.8% to approximately $327 million. Retention continued to climb to 84.4% up from 83.6% in the first quarter, and policies in force increased to approximately 462,000, up 15.7% year over year and 5.6% sequentially from the first quarter. The growth reflects strong voluntary production across the business. Looking first at Tri-County, production levels are encouraging, but we remain substantially under-penetrated relative to the size of the opportunity. As a reminder, Tri-County represents approximately 28% of Florida households, while accounting for only a modest portion of our current policies in force. We believe this represents substantial opportunity for profitable growth over time. In addition, approximately one-third of our Florida voluntary new business gross premium written production during the quarter came from tri-county policies, compared with only a very small contribution in the prior year quarter, highlighting the momentum we are currently seeing in the market. We believe we have strong support from our distribution partners, increasing consumer demand and favorable economics that will allow us to pursue growth while maintaining our underwriting discipline. The same is true for middle-aged homes. As we've discussed previously, this was historically the core of our business and an area where we have deep underwriting experience and longstanding agency relationships. We reduced our participation in this market during the height of Florida's litigation crisis and the legislative reforms have enabled us to reenter this segment in a measured and profitable way. Since expanding our participation, the results have been very encouraging. Middle-aged homes represented 24% of our voluntary new business gross written premium during the quarter compared to approximately 4% in the prior year period. We view this as an attractive opportunity because it combines significant market size with an area where we have considerable operating history and underwriting expertise. Importantly, we believe both tri-county and middle-aged homes provide meaningful growth opportunities without requiring us to depart from our core underwriting competencies. Outside of Florida, our expansion states continue to gain traction. During the second quarter, new business policies written in Georgia, South Carolina, and North Carolina increased 40% year over year. while new business gross premiums written increased 50%. These states represented approximately 18% of voluntary new business policies and 10% of voluntary new business gross premiums written during the quarter. While still a relatively small contributor to our overall portfolio today, we believe these results demonstrate the portability of our distribution relationships and operating model. When we entered these new states, we led with our HO3 product. Given the success we have experienced thus far, we are now evaluating opportunities to broaden our product offerings outside Florida, including products such as dwelling and marine, where our agents have demonstrated demand. We intend to approach that expansion with the same discipline we have applied to our geographic growth. Turning to reinsurance, I am very pleased with the outcome of our June 1 catastrophe excess of loss renewal. We successfully renewed our program with meaningful risk-adjusted rate reductions at the upper end of the 15 to 20 percent declines observed in the market while maintaining our target protection levels and improving our overall retention structure. Despite approximately 19 percent growth in peak season exposure, our first event retention remained unchanged at 35 million. Additionally, our aggregate for event retention declined from 95 million to 75 million, further improving our net risk profile. We also maintained our program at a targeted 1 in 130 year probable maximum loss level. We believe this outcome reflects both favorable market conditions and the strength of our longstanding reinsurance relationships. The renewed program provides approximately $3 billion of total catastrophe protection including approximately $2.25 billion of third party coverage for a single catastrophic event. In short, we achieved lower risk adjusted pricing, maintained our targeted protection level, and reduced our aggregate retention, all while growing peak season exposure by approximately 19%. We believe that is an excellent outcome. The improved economics of the renewal reflect both favorable reinsurance market conditions and the continued benefits of Florida's legislative reforms. We continue to believe reinsurance tailwinds will be an important contributor to earnings and capital generation moving forward. We appreciate the longstanding support of all of our reinsurance partners. Before turning things over to Brian, I want to briefly remind investors that our expected annual catastrophe reinsurance cost remains consistent with the $430 to $440 million range we provided in connection with our June 1st renewal announcement. To conclude, we believe the operating environment remains highly constructive. Production is strong. Our major growth initiatives continue to gain traction. Our geographic expansion is progressing. and our renewed reinsurance program provides strong protection with improved economics. With that, let me turn the call over to Brian to walk through the financials.