American Integrity Insurance Group, Inc. Reports Strong 2025 Full-Year and Q4 Earnings; Announces Special Dividend

Key Highlights

• Net Income:
  • Q4 2025: Net income available to common shareholders was \$20.9 million, or \$1.07 per diluted share. This marks a significant increase from Q4 2024, which saw \$8.0 million, or \$0.62 per diluted share.
  • Full-Year 2025: Net income reached \$97.4 million, or \$5.65 per diluted share, compared to \$38.0 million and \$2.95 per diluted share in 2024.
  • Adjusted Net Income: For Q4 2025, adjusted net income was \$21.8 million (\$1.11 per diluted share), up from \$8.0 million (\$0.62 per diluted share). For the full year, adjusted net income was \$103.0 million (\$5.97 per diluted share), versus \$37.9 million (\$2.94 per diluted share) in 2024.
• Return on Equity:
  • Q4 2025: 25.6% (vs. 21.2% in Q4 2024); adjusted return on equity 26.7% (vs. 21.2%).
  • Full-Year 2025: 39.9% (vs. 26.8% in 2024); adjusted return on equity 42.1% (vs. 26.8%).
• Policy Growth:
  • Policies-in-force at year end surged to 421,866, up 18.5% year-over-year.
  • Wrote 86,818 new and renewal policies in the voluntary market, up 16.9% year-over-year.
  • Assumed 7,972 policies from Citizens Property Insurance Corporation in Q4 2025, down from 68,198 in Q4 2024 (due to stricter underwriting standards).
• Special Dividend Announcement:
  • The Board of Directors declared a special cash dividend of \$1.02 per share of common stock, payable on March 30, 2026, to shareholders of record as of March 16, 2026.
• IPO Milestone:
  • Successful initial public offering in May 2025, raising \$100 million in gross proceeds.
• Shareholders’ Equity:
  • Shareholders’ equity increased to \$337.0 million as of December 31, 2025, compared to \$162.4 million at the end of 2024, driven by retained earnings and IPO proceeds.

Detailed Financial Analysis

• Premiums & Underwriting:
  • Gross premiums earned increased, reflecting policy growth and market expansion.
  • Ceded premiums earned (to reinsurers) rose to \$169.8 million in Q4 2025, up from \$138.1 million in Q4 2024, largely due to increased gross premiums and reinsurance placements.
  • The Company reduced the percentage of gross premiums written that it cedes under its non-catastrophe quota share reinsurance arrangement from 40% to 25% as of December 31, 2025, signaling a shift toward retaining more risk and potentially enhancing future profitability.
• Loss and Expense Ratios:
  • Loss ratio improved to 42.6% in Q4 2025 (from 51.6% in Q4 2024), reflecting fewer weather-related losses and improved underwriting discipline.
  • Expense ratio was 20.2% in Q4 2025, indicating stable operating efficiency.
  • Policy acquisition expenses decreased to \$5.8 million in Q4 2025, compared to \$11.7 million in Q4 2024.
• Investment Results:
  • Net investment income rose to \$5.9 million in Q4 2025 from \$3.8 million in Q4 2024, driven by higher yields and larger investment balances following the IPO.

Strategic and Market Developments

• Growth Initiatives:
  • Expansion into the middle-aged home market and launch of commercial residential products.
  • Entry into North Carolina, providing new geographic growth opportunities.
• Underwriting Discipline:
  • Fewer policies assumed from Citizens due to stricter underwriting and profitability standards, highlighting a focus on quality growth.
• Management Commentary:
  • CEO Robert Ritchie emphasized disciplined, responsible growth and a strong balance sheet designed to weather cycles, with multiple growth vectors expected to fuel expansion and value creation for shareholders.

Potential Price Sensitive Information

• Special Dividend: The announcement of a \$1.02 per share special cash dividend is highly price sensitive and is likely to impact shareholder value positively.
• Strong Earnings Growth: Both net income and adjusted net income are up sharply year-over-year, which could drive investor optimism and share price appreciation.
• Reduced Reinsurance Cession: The move from ceding 40% to 25% of gross premiums may increase retained earnings and future profitability, but also increases exposure to risk.
• IPO Success: The \$100 million raised in the IPO has bolstered the Company’s capital base and enabled growth, providing a foundation for further expansion and potentially higher valuations.
• Policy Growth and Market Expansion: Surpassing 400,000 policies-in-force and entering new markets may signal sustained growth ahead.
• Improved Operating Ratios: Improved loss and expense ratios suggest enhanced profitability and operating leverage.

Conclusion

American Integrity Insurance Group, Inc. delivered robust financial results for 2025, marked by strong earnings growth, enhanced profitability, and substantial policy and market expansion. The special dividend and strategic reduction in reinsurance cession are notable developments that could positively influence the share price. The successful IPO and increased shareholders’ equity have positioned the Company for continued disciplined growth and value creation. Investors should monitor these developments closely as they present material upside potential and risk considerations.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Please consult your financial advisor before making any investment decisions. The information is based on publicly available filings and may be subject to change.

View American Integrity Insurance Group, Inc. Historical chart here