Ategrity Specialty Insurance Company Holdings

Good afternoon, everyone, and thank you for joining us today for Integrity's first quarter fiscal year 2026 earnings results conference call. Speaking today are Justin Cohen, Chief Executive Officer, Chris Schenk, President and Chief Underwriting Officer, and Neelam Patel, Chief Financial Officer. After Justin, Chris, and Neelam have made their formal remarks, we will open the call to questions. All lines have been placed on mute to prevent any background noise. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star followed by number one again. Thank you. Before we begin, I would like to mention that certain matters discussed in today's conference call are forward-looking statements relating to future events, management's plans and objectives for the business, and the future financial performance of the company that are subject to risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. The risk factors that may affect results are referred to in our press release issued today, our final prospectus, and other filings filed with the SEC. We do not undertake any obligation to update the forward-looking statements made today. Finally, the speakers may refer to certain adjusted or non-GAAP financial measures on this call. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is also available in our press release issued today, a copy of which may be obtained by visiting the Investor Relations website at investors.integrity.com. I will now turn the call over to Justin.

Good evening, and thank you all for joining Integrity's first quarter earnings call. This is Justin Cohen, and I'm joined today by Chris Schenck, our President and Chief Underwriting Officer, and Neelam Patel, our CFO. Integrity delivered another quarter of record earnings, generating outstanding margins while gaining market share. We produced a combined ratio of 87.4% and grew gross written premiums by 23.1% in an industry that was relatively flat. with both metrics better than guidance. We are winning by identifying underserved segments, building solutions that give our distribution partners an advantage, and improving the quality and renewability of our portfolio. While competition is increasing, we are defining distinct markets where we can compete on our own terms. This quarter we extended that momentum by launching several new strategic initiatives, including new regional strategies in Texas, Florida, and New England, while maintaining strict technical rigor in risk selection and pricing. We will discuss these initiatives in more detail later in the call. As our footprint expands, we are demonstrating operating leverage. Our expense ratio improved 2.5 percentage points year-over-year as earned premium growth outpaced expenses. We continue to optimize our business mix and leverage our centralized underwriting model to improve profitability and lower unit costs. At the same time, we are investing in the business, both to support our growth initiatives and to advance automation and AI across the organization. Turning to the market, competitive pressure continued to intensify in parts of the ENS market this quarter, but its impact on our business remained limited. By focusing on small and medium-sized businesses and delivering differentiated solutions, we continue to operate outside the more commoditized parts of the market. We are seeing this play out consistently across the portfolio, reinforcing our confidence that we can continue to build profitable market share. With that, I'll turn it over to Neelam to review our financials, followed by Chris to discuss our underwriting performance and go-to-market strategy.

Thanks, Justin. We delivered another strong quarter with adjusted net income of $25.6 million, up from $8.5 million in the same quarter last year, driven by top-line growth, improving margins, and continued strength in our investment income. Growth-written premiums were up 23% in the quarter, and growth was broad-based. Casualty premiums grew 27%, and property premiums grew 13%. Net-written premiums increased 32%, which reflects higher retention year-over-year, while net-earned premiums were up by 34%. Fee income was 2.2 million compared to 0.6 million a year ago, reflecting standard policy fees introduced over the course of 2025. Our underwriting income for the quarter was 13.3 million, up 87% year over year. That translates into a combined ratio of 87.4% compared to 90.9% last year due to reductions in both our loss and expense ratio. A loss ratio came in at 58.8% down one point year over year, driven by strong underlying results in our property business. We had favorable development this period equal to 0.5% of net earned premium. Catastrophe losses were 4% of net earned premium, down from 6.2% last year due to very few CAT events in the first quarter compared to the prior year where we had modest losses from California wildfires. On expenses, the overall expense ratio improved 2.5 points to 28.6%. Operating expense was 10.9% of net earned premiums, down 1.4 points year over year. That improvement was driven by earned premiums growing faster than operating expenses, along with the benefit of higher free income. Policy acquisition costs as a percentage of net earned premiums declined to 17.6% from 18.8%. The improvement was primarily mixed-driven as growth has been concentrated in lines of business, carrying lower acquisition costs and higher seeding commissions. Moving on to investment results, net investment income was $12 million, up from $7.9 million last year, reflecting a larger investment portfolio. Realized and unrealized gains were $9.5 million, supported by strong results in our utility and infrastructure portfolio. Our effective tax rate was 20.6%, bringing the net income to 25.5 million. Adjusted net income was 25.6 million, or 51 cents per diluted share. Turning to the balance sheet, cash and investments increased by 42 million from the fourth quarter to 1.15 billion, reflecting strong operating cash flow. Book value increased by 17 million, driven by retained earnings, offset by a decrease in AOCI. Our book value per share ended the quarter at $13.13, up 24% since the IPO. Overall, the quarter reflects strong growth, underwriting discipline, and increased operating leverage. With that, I'll turn it over to Chris to discuss underwriting and operating performance.