American Integrity Insurance Group (AII) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $19.9 million ($1.02 per diluted share), down from $35.9 million ($2.78 per share) in Q1 2025, primarily due to reduced Citizens take-out windfall and higher expenses, despite strong voluntary market growth.

• Gross premiums written increased 3.7% year-over-year to $220.0 million, driven by voluntary customer growth and new policy writings.

• Policies in force grew 14.1% to 437,308 as of March 31, 2026, with retention rates stable at 83.6%.

• Paid a $20 million special cash dividend in Q1 2026.

• Leadership transition with new CFO Brian Foley, ensuring continuity and capital markets expertise.

Financial highlights

• Net premiums earned rose 25.7% to $82.2 million, while gross premiums earned increased 9.8% to $230.8 million year-over-year.

• Net investment income grew 37.8% to $5.7 million, supported by higher invested assets and IPO proceeds.

• Losses and loss adjustment expenses increased 52.1% to $31.7 million; policy acquisition and general/admin expenses surged due to reduced ceding commissions and increased policy writings.

• Combined ratio rose to 75.0% from 42.9% year-over-year; loss ratio increased to 37.3% from 30.9%; expense ratio jumped to 37.6% from 12.0%.

• Return on equity was 23.7%, down from 87.5% in Q1 2025; adjusted net income was $20.1 million.

Outlook and guidance

• Management expects continued consistent profitability and growth from voluntary production, with improving earnings quality and reinsurance tailwinds.

• Anticipates substantial rate softening and improved terms in upcoming June 1st reinsurance renewal.

• Legislative reforms in Florida have improved the operating environment, but climate change and reinsurance costs remain key uncertainties.

• Growth remains the top capital priority, with capital allocation decisions to be revisited after wind season.

• The company intends to retain future earnings for business operations, with no plans for additional dividends in the near term.