aii-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission File Number: 001-42634

American Integrity Insurance Group, Inc.

(Exact name of registrant as specified in its charter)


Delaware		33-2925846
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


3000 Bayport Drive, Suite 500 Tampa, Florida		33607
(Address of principal executive offices)		(Zip Code)

(813) 880-7000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	AII	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934

during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing

requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of

Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an

emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth

company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new

or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 13, 2026, there were 19,593,427 shares of common stock, par value of $0.001 per share, outstanding.


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Special Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” as defined in Section 27A of the Securities

Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the

“Exchange Act”). All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q

may be forward-looking statements. Forward-looking statements contained in this Quarterly Report on Form 10-Q include,

but are not limited to, statements regarding: our outlook; our business strategy; writing new business and retaining existing

policies; new insurance products; availability of reinsurance coverage; expectations regarding future growth; future

Citizens Property Insurance Corporation (“Citizens”) take-out opportunities; anticipated future operating results and

operating expenses, cash flows, capital resources and liquidity; reserves for losses and loss adjustment expenses;

geographic expansion; reduction of our quota share and its impact on our results; competition; future regulatory, judicial

and legislative changes; forecasts of future revenues and appropriately planning our expenses; and our plans regarding our

capital expenditures and investment portfolios. In some cases, you can identify forward-looking statements by terms such

as “anticipates,” “believes,” “contemplates,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,”

“potential,” “predicts,” “projects,” “should,” “targets,” “will,” “would” or the negative of these terms or other similar

expressions.

Forward-looking statements are neither historical facts nor assurances of future performance, and are based only on our

current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections,

anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the

future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many

of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Important

factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-

looking statements include, among others, the following:

•the potential that we may face significant losses due to being a property and casualty insurer and our exposure to

catastrophic events and severe weather conditions;

•our loss reserves are estimates and may be inadequate to cover our actual liability for losses, and actual claims

incurred have exceeded, and in the future may exceed, reserves established for claims;

•the dependence of our financial results on the regulatory, legal, economic and weather conditions in Florida due to

the fact that we conduct substantially all of our business in Florida;

•changing climate conditions may increase the severity and frequency of catastrophic events and severe weather

conditions;

•the severity and frequency of catastrophe events of which are unpredictable;

•dependence upon the effectiveness of exclusions and other loss limitation methods in the insurance policies we

assume or write;

•reliance upon third-party distribution partners, including independent insurance agents, homebuilder-affiliated

agents and national insurance carriers;

•our ability to pursue Citizens take-out opportunities;

•cyclical changes in the insurance industry;

•our ability to obtain reinsurance coverage at commercially reasonable rates, or at all;

•credit risk of our reinsurers who may suffer a downgrade;

•the inherent uncertainty of models and our reliance on such models as a tool to evaluate risk, and the dependence

of our results upon our ability to accurately price the risks we underwrite;

•the possibility that our information technology systems may fail or be disrupted;

•our ability to expand our business and the possible need to acquire additional capital in the future to fund such

expansion;

•the ability of our claims department, or the third-party claims adjusters whom we may engage, to effectively

manage or remediate claims as well as unanticipated increases in the severity or frequency of claims;


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•the possibility that actual renewals of our existing policies will not meet expectations;

•increased competition and market conditions, including changes in our financial stability and credit ratings;

•the extensive regulatory environment in which we operate that requires approval of rate increases, can mandate

rate decreases, and that can dictate underwriting practices and mandate participation in loss sharing arrangements,

and other potential further restrictive regulation we may face;

•mandatory assessments or competition from government entities may create short-term liabilities or affect our

ability to underwrite more policies; and

•other risks identified in Part II, Item 1A “Risk Factors” in this Quarterly Report on Form 10-Q and Part I, Item 1A

“Risk Factors” in our most recent Annual Report on Form 10-K.

New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact

of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ

materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and

assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results

could differ materially and adversely from those anticipated or implied in the forward-looking statements. We do not

undertake any obligation to update or revise the forward-looking statements to reflect events that occur or circumstances

that exist after the date on which such statements were made, except to the extent required by law.


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PART I – FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (unaudited)

American Integrity Insurance Group, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)


	June 30, 2026	December 31, 2025
	(unaudited)
Assets
Fixed maturities, available-for-sale, at fair value (amortized cost of $346,989 and $327,910, respectively)	$346,427	$330,489
Short-term investments (amortized cost of $4,739 and $18,121, respectively)	4,738	18,121
Total investments	351,165	348,610
Cash and cash equivalents	288,453	203,902
Restricted cash and cash equivalents	55,419	40,217
Premiums receivable, net	59,104	45,031
Accrued investment income	3,163	3,458
Prepaid reinsurance premiums	519,574	275,093
Income taxes recoverable	1,545	—
Reinsurance recoverable, net	247,916	269,056
Deferred policy acquisition costs, net	22,414	5,127
Property and equipment, net	8,951	5,718
Right-of-use assets – operating leases	38,452	449
Deferred income tax asset, net	5,116	8,636
Other assets	11,009	24,904
Total assets	$1,612,281	$1,230,201
Liabilities and shareholders’ equity
Liabilities:
Unpaid losses and loss adjustment expenses	$254,178	$266,591
Income tax payable	—	2,680
Unearned premiums	555,130	481,557
Reinsurance payable	341,609	96,555
Advance premiums	21,847	11,752
Long-term debt	412	618
Lease liabilities – operating leases	33,065	458
Other liabilities and accrued expenses	36,521	32,968
Total liabilities	$1,242,762	$893,179
Shareholders’ equity:
Common stock, $0.001 par value, 100,000,000 shares authorized, 19,593,427 shares issued and outstanding at June 30, 2026 and 19,579,009 shares issued and outstanding at December 31, 2025	$20	$20
Additional paid-in capital	106,656	105,896
Accumulated other comprehensive income (loss), net of taxes	(420)	1,928
Retained earnings	263,263	229,178
Total shareholders’ equity	$369,519	$337,022
Total liabilities and shareholders’ equity	$1,612,281	$1,230,201

See accompanying notes to unaudited condensed consolidated financial statements.


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American Integrity Insurance Group, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)

(In thousands, except share and per share data)


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Revenues:
Gross premiums written	$326,592	$286,995	$546,596	$499,145
Change in gross unearned premiums	(84,341)	(63,255)	(73,573)	(65,249)
Gross premiums earned	242,251	223,740	473,023	433,896
Ceded premiums earned	(137,555)	(157,571)	(286,119)	(302,325)
Net premiums earned	104,696	66,169	186,904	131,571
Policy fees	3,711	2,967	6,456	5,171
Net investment income	6,250	4,780	11,902	8,883
Net realized gains (losses) on investments	(2)	485	51	501
Other income	516	98	789	259
Total revenues	115,171	74,499	206,102	146,385
Expenses:
Losses and loss adjustment expenses, net	33,151	21,189	64,876	42,051
Policy acquisition expenses	17,410	6,281	33,395	9,388
General and administrative expenses	18,186	22,932	34,152	27,940
Total expenses	68,747	50,402	132,423	79,379
Income before income taxes	46,424	24,097	73,679	67,006
Income tax (benefit) expense	12,278	(3,397)	19,623	1,416
Net income	$34,146	$27,494	$54,056	$65,590
Other comprehensive income (loss):
Unrealized holding gains (losses) on available-for-sale securities, net of taxes	(605)	1,231	(2,311)	1,688
Reclassification adjustment for net realized gains (losses), net of taxes	1	(362)	(37)	(374)
Total other comprehensive income (loss)	(604)	869	(2,348)	1,314
Comprehensive income	$33,542	$28,363	$51,708	$66,904
Earnings per share:(1)
Basic earnings per share	$1.74	$1.62	$2.76	$4.18
Diluted earnings per share	$1.74	$1.62	$2.76	$4.18
Weighted average shares outstanding – Basic	19,586,994	16,962,075	19,583,036	15,152,075
Weighted average shares outstanding – Diluted	19,590,448	16,962,075	19,584,870	15,152,075

See accompanying notes to unaudited condensed consolidated financial statements.

(1)Both the number of shares outstanding and their par value have been retrospectively recast for all prior periods presented to reflect

the par value of the outstanding stock of American Integrity Insurance Group, Inc. as a result of the Corporate Contribution. See

Note 1 — “Nature of Operations and Basis of Presentation” and Note 14 — “Earnings Per Share.”


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American Integrity Insurance Group, Inc. and Subsidiaries

Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)

Three Months Ended June 30, 2026

(In thousands, except share amounts)


	Common Shares	Amount	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total Shareholders’ Equity
Balance at March 31, 2026	19,581,343	$20	$106,162	$229,117	$184	$335,483
Total other comprehensive income (loss)	—	—	—	—	(604)	(604)
Net income	—	—	—	34,146	—	34,146
Vesting of restricted stock awards	2,610	—	49	—	—	49
Vesting of restricted stock units	15,625	—	43	—	—	43
Tax withholding on vesting of restricted stock units	(6,151)	—	(120)	—	—	(120)
Stock-based compensation on restricted stock units	—	—	522	—	—	522
Balance at June 30, 2026	19,593,427	$20	$106,656	$263,263	$(420)	$369,519


	Common Shares	Amount	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total Shareholders’ Equity
Balance at March 31, 2025	12,904,495	$13	$10,274	$175,653	$118	$186,058
Distributions to members – tax advances and profit distributions ($0.41 per share)(1)	—	—	—	(8,000)	—	(8,000)
Total other comprehensive income	—	—	—	—	869	869
Net income	—	—	—	27,494	—	27,494
Vesting of restricted stock awards	652,057	1	10,432	—	—	10,433
Tax withholding on vesting of restricted stock awards	(234,587)	—	(3,753)	—	—	(3,753)
Issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions and other offering costs	6,250,000	6	88,767	—	—	88,773
Balance at June 30, 2025	19,571,965	$20	$105,720	$195,147	$987	$301,874

See accompanying notes to unaudited condensed consolidated financial statements.

(1)The distributions were made to members prior to the IPO. See Note 1 — “Nature of Operations and Basis of Presentation” and

Note 11 — “Shareholders’ Equity.”


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American Integrity Insurance Group, Inc. and Subsidiaries

Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)

Six Months Ended June 30, 2026

(In thousands, except share amounts)


	Common Shares	Amount	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total Shareholders’ Equity
Balance at December 31, 2025	19,579,009	$20	$105,896	$229,178	$1,928	$337,022
Common stock dividends ($1.02 per share)	—	—	—	(19,971)	—	(19,971)
Total other comprehensive income (loss)	—	—	—	—	(2,348)	(2,348)
Net income	—	—	—	54,056	—	54,056
Vesting of restricted stock awards	4,944	—	94	—	—	94
Vesting of restricted stock units	15,625	—	43	—	—	43
Tax withholding on vesting of restricted stock units	(6,151)	—	(120)	—	—	(120)
Stock-based compensation on restricted stock units	—	—	743	—	—	743
Balance at June 30, 2026	19,593,427	$20	$106,656	$263,263	$(420)	$369,519


	Common Shares	Amount	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total Shareholders’ Equity
Balance at December 31, 2024	12,904,495	$13	$10,274	$152,432	$(327)	$162,392
Distributions to members – tax advances and profit distributions ($1.17 per share)(1)	—	—	—	(22,875)	—	(22,875)
Total other comprehensive income	—	—	—	—	1,314	1,314
Net income	—	—	—	65,590	—	65,590
Vesting of restricted stock awards	652,057	1	10,432	—	—	10,433
Tax withholding on vesting of restricted stock awards	(234,587)	—	(3,753)	—	—	(3,753)
Issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions and other offering costs	6,250,000	6	88,767	—	—	88,773
Balance at June 30, 2025	19,571,965	$20	$105,720	$195,147	$987	$301,874

See accompanying notes to unaudited condensed consolidated financial statements.

(1)The distributions were made to members prior to the IPO. See Note 1 — “Nature of Operations and Basis of Presentation” and

Note 11 — “Shareholders’ Equity.”


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American Integrity Insurance Group, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)


	For the Six Months Ended June 30,
	2026	2025
Cash flows provided by (used in) operating activities
Net income	$54,056	$65,590
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	880	10,433
Amortization and depreciation	1,091	1,147
Deferred income taxes	4,314	(9,829)
Net realized gains	(51)	(501)
Changes in operating assets and liabilities:
Premiums receivable	(14,073)	(7,031)
Accrued investment income	295	(737)
Prepaid reinsurance premiums	(244,481)	(297,587)
Reinsurance recoverable	21,140	69,524
Other assets	8,367	9,299
Unpaid losses and loss adjustment expense	(12,413)	(96,922)
Unearned premiums	73,573	65,250
Reinsurance payable	245,054	288,416
Advance premiums	10,095	16,004
Income taxes payable (recoverable)	(4,225)	(9,070)
Operating lease payments	(416)	(1,053)
Deferred policy acquisition costs, net unearned ceding commissions	(17,287)	(5,066)
Other liabilities and accrued expenses	3,924	(2,386)
Net cash provided by operating activities	129,843	95,481
Cash flows provided by (used in) investing activities
Purchases of property and equipment	(4,475)	(579)
Proceeds from sales and maturities of fixed maturity securities	35,038	103,486
Purchases of fixed maturity securities	(53,784)	(162,776)
Proceeds from sales and maturities of short-term investments	22,659	—
Purchases of short-term investments	(9,231)	—
Net cash used in investing activities	(9,793)	(59,869)
Cash flows provided by (used in) financing activities
Proceeds from initial public offering, net of underwriting discounts and commissions	—	93,000
Payments on tax withheld on vesting of restricted stock awards	—	(3,753)
Payments on tax withheld on vesting of restricted stock units	(120)	—
Cash dividends paid	(19,971)	—
Cash distributions to members(1)	—	(22,875)
Repayment of long-term debt	(206)	(206)
Payments of initial public offering costs	—	(4,227)
Net cash provided by (used in) financing activities	(20,297)	61,939
Net increase in cash, cash equivalents and restricted cash and cash equivalents	99,753	97,551
Cash, cash equivalents and restricted cash and cash equivalents at beginning of year	244,119	179,272
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$343,872	$276,823

(1)The distributions were made to members prior to the IPO. See Note 1 — “Nature of Operations and Basis of Presentation” and

Note 11 — “Shareholders’ Equity.”


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American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

1. Nature of Operations and Basis of Presentation

Organization and Description of the Company

American Integrity Insurance Group, Inc., a Delaware corporation (the “Company”), was formed on January 15,

2025. American Integrity Insurance Group, LLC, a Texas limited liability company (“AIIG”), was formed in 2006.

On May 7, 2025, the holders of all of the outstanding equity of AIIG contributed all of their equity interests in AIIG

to the Company (the “Corporate Contribution”), in exchange for 12,904,495 shares of the Company’s common

stock, par value $0.001 per share (the “Common Stock”), immediately prior to the Company’s initial public offering

(the “IPO”). This is further described in the “Initial Public Offering and Corporate Contribution” section below.

The operations of AIIG represent the predecessor to the Company prior to the IPO, and the consolidated and

combined entities of the Company are described in more detail below. Information for any periods prior to May 7,

2025 relates to AIIG and its subsidiaries.

The Company and its wholly-owned subsidiaries are engaged in the property and casualty insurance business. The

Company’s subsidiaries include American Integrity Insurance Company (f/k/a American Integrity Insurance

Company of Florida, Inc.) (“AIIC”), a property and casualty insurance company domiciled in the state of Florida;

AIIG; American Integrity MGA, LLC (“AIMGA”), a Texas limited liability company operating as a managing

general agency and functioning as a manager for the insurance subsidiary’s business; American Integrity Claims

Services, LLC (“AICS”), a Texas limited liability company operating as a third-party administrator and providing

insurance claims processing services; Pinnacle Insurance Consultants, LLC (“PIC”), a Nevada limited liability

company operating as a licensed insurance agency in the state of Florida; and Pinnacle Analytics, LLC (“PA”), a

Texas limited liability company performing limited reinsurance brokerage functions for the insurance subsidiary’s

business. During 2023, the Company entered into an agreement with Artex SAC Limited (“Artex”), a Bermuda

Licensed Segregated Accounts Company, to establish Catstye Segregated Account (“Catstye”). Catstye is a

segregated account controlled by the Company formed for the purpose of conducting reinsurance business.

The Company’s property and casualty insurance is currently offered in Florida, South Carolina, Georgia and North

Carolina.

Basis of Presentation and Principles of Consolidation

The Company has prepared the accompanying unaudited condensed consolidated financial statements in accordance

with accounting principles generally accepted in the United States of America (“GAAP”) and the Securities and

Exchange Commission (“SEC”). References to the Accounting Standard Codification (“ASC”) and the Accounting

Standard Updates (“ASU”) included hereinafter refer to the Accounting Standards Codification and Updates issued

by the Financial Accounting Standards Board (“FASB”) as the source of the authoritative GAAP. In the opinion of

management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have

been included in these condensed consolidated financial statements.

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-

owned subsidiaries, as well as variable interest entities (“VIE”) in which the Company is determined to be the

primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated financial statements for prior periods give effect to the Corporate Contribution

discussed below, including the exchange of all 122,900 units of AIIG for an aggregate of 12,904,495 shares of

Common Stock of the Company, which is equivalent to an overall exchange ratio of one-for-105. All share and

earnings per share amounts presented herein have been retroactively adjusted to give effect to the Corporate

Contribution as if they occurred prior to all prior periods presented.


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American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

Initial Public Offering and Corporate Contribution

Immediately prior to the IPO, the owners of the equity interests of AIIG contributed all of their equity interests to

the Company in exchange for an aggregate of 12,904,495 shares of Common Stock in the Corporate Contribution.

On May 9, 2025, the Company completed its IPO of an aggregate of 6,875,000 shares of the Company’s Common

Stock, at a price to the public of $16.00 per share, 6,250,000 of which shares were sold by the Company and

625,000 of which shares were sold by certain selling stockholders. The gross proceeds to the Company from the IPO

were $100 million, and gross proceeds to the selling stockholders from the IPO were $10 million, before deducting

underwriting discounts and commissions of $7 million. Pending their further use, the proceeds were invested in

investment grade instruments. On May 13, 2025, the underwriters completed the exercise of their option to purchase

an additional 1,031,250 shares of Common Stock from the selling stockholders resulting in an additional $16.5

million in gross proceeds to the selling stockholders, before deducting underwriting discounts and commissions. The

Company did not receive any gross proceeds from the sales of shares of Common Stock by the selling stockholders.

In connection with the IPO, the Company issued a net amount of 417,470 shares of restricted stock to certain

employees and consultants (the “Restricted Stock Grant”) after giving effect to the withholding of approximately

234,587 shares of Common Stock to satisfy the estimated tax withholding and remittance obligations (the

“Restricted Stock Grant Net Settlement”). The Company incurred a one-time share-based compensation expense of

$10.4 million in connection with the Restricted Stock Grant, which was expensed in general and administrative

expenses on the condensed consolidated statements of operations and comprehensive income. The Company also

paid $3.8 million for tax withheld on the vesting of restricted stock in connection with the Restricted Stock Grant

Net Settlement. The compensation expense for these awards was recognized in the second quarter of 2025.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to

make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed

consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. As

a result, actual results could differ from those estimates. Management evaluates estimates on an ongoing basis when

updated information related to such estimates becomes available. The most significant areas that require

management judgment are the estimate of unpaid losses and loss adjustment expenses, evaluation of reinsurance

recoverable, evaluation of ceding commission, and valuation of investments.

2. Significant Accounting Policies

Changes to Significant Accounting Policies

There have been no changes to significant accounting policies as reported in the audited consolidated financial

statements of the Company for the year ended December 31, 2025. However, during the six months ended June 30,

2026, the Company granted performance-based restricted stock units (“PSUs”) for the first time. As a result, the

Company accounted for the PSUs in accordance with the accounting policy discussed below.

Restricted Stock

The PSUs are subject to performance-based vesting conditions and are accounted for as equity under ASC Topic

718, Compensation—Stock Compensation. PSUs are valued based on the fair value of the underlying award, which

is the closing price of the Common Stock on the date of the grant. The Company recognizes the compensation cost

for PSUs on a straight-line basis over the awards’ three-year vesting period as general and administrative expenses

within the Company’s condensed consolidated statements of operations and comprehensive income. The PSUs were

granted assuming expected maximum achievement of the applicable performance conditions. Accordingly,

compensation cost is subject to decreases based on the Company’s actual performance relative to the established

metrics for each performance year. The Company recognizes any PSU forfeitures when they occur.


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American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

Recently Issued and Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable

Segment Disclosures, which amended the guidance in ASC 280, Segment Reporting, to require a public entity to

disclose significant segment expenses and other segment items on an annual and interim basis and to provide in

interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required

annually. Public entities with a single reportable segment are required to provide the new disclosures and all the

disclosures required under ASC 280. The guidance is applied retrospectively to all periods presented in financial

statements, unless it is impracticable. The guidance applies to all public entities and is effective for fiscal years

beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024.

The Company adopted ASU 2023-07 for its 2024 year-end. The adoption of the ASU did not have a material impact

on the condensed consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax

Disclosures, which amended the guidance in ASC 740 to enhance the transparency and decision-usefulness of

income tax disclosures, particularly in the rate reconciliation table and disclosures about income taxes paid. The

guidance applies to all entities subject to income taxes and permits either prospective or retrospective application.

For public business entities, the new requirements are effective for annual periods beginning after December 15,

2024. The Company adopted ASU 2023-09 on a prospective basis beginning with the year ended December 31,

2025. The adoption did not have a material impact on the Company’s condensed consolidated financial condition or

results of operations, but resulted in additional income tax disclosures in the consolidated financial statements.

In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software

(Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which provides updated

guidance on the recognition, measurement, and disclosure of costs incurred in connection with internally developed

software. The new standard is intended to align accounting practices for software that is developed in-house with

recent advancements in technology and current industry practices. ASU 2025-06 is effective for annual reporting

periods beginning after December 15, 2027, and interim periods within those annual periods, with early adoption

permitted. The Company adopted ASU 2025-06 on January 1, 2026 using the prospective method. The adoption of

the ASU did not have a material impact on the condensed consolidated financial statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—

Expense Disaggregation Disclosures (Subtopic 220-40). This ASU requires disaggregated disclosure of income

statement expenses, such as employee compensation and depreciation, for public business entities. The ASU does

not change the expense captions an entity presents on the face of the income statement; rather, it requires

disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the

condensed consolidated financial statements. The ASU also requires disclosure of a qualitative description of the

amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03

is effective for all public business entities for fiscal years beginning after December 15, 2026 and interim periods

within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company will adopt the

guidance on December 31, 2027, and is currently assessing the impact of this ASU on the consolidated financial

statements and related disclosures.

In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope

Improvements, which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting.

The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle

requiring entities to disclose events since the end of the last annual reporting period that have a material impact on

the entity. ASU 2025-11 is effective for annual reporting periods beginning after December 15, 2027 and interim

periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact of

ASU 2025-11 on its consolidated financial statements and related disclosures.


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Table of Contents

American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

Revision of Previously Issued Financial Statements

The Company identified a revision related to the measurement of unearned ceding commissions and reinsurance

payable associated with the net quota share reinsurance agreement. The Company revised the presentation of both

items as of December 31, 2025 from what was previously presented. The revision relates to the amounts reported as

unearned ceding commission in Note 7 – “Deferred Policy Acquisition Costs, Net of Ceding Commissions,” reported

in the Consolidated Financial Statements as of December 31, 2025. The revision is a result of an overstatement of

the unearned ceding commission and an understatement of the reinsurance payable in the Consolidated Financial

Statements.

The Company evaluated the error in accordance with ASC 250, Accounting Changes and Error Corrections, and the

SEC’s guidance on assessing materiality, including Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and

SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year

Financial Statements. The Company concluded that the error was not material to any previously issued annual or

interim financial statements. Accordingly, the Company has revised the comparative prior-period financial

information presented herein to correct the error.

The revision reduced the previously reported unearned ceding commission and the related reinsurance payable

balances. As a result, deferred policy acquisition costs, net of unearned ceding commissions, increased by $18,029

with a corresponding increase in reinsurance payable as of December 31, 2025. The revision increased both total

assets and total liabilities by $5,127 as of December 31, 2025. The revision did not have an impact on shareholders’

equity, revenue, expenses, net income, or net cash provided by operating activities.

The Company also revised the previously reported unearned ceding commission and the related net reinsurance

commission receivable balances as of March 31, 2026. As a result, deferred policy acquisition costs, net of unearned

ceding commissions, increased by $18,029 with a corresponding decrease in net reinsurance commission receivable

as of March 31, 2026. The revision decreased both total assets and total liabilities by $8,804 as of March 31, 2026.

The revision did not have an impact on shareholders’ equity, revenue, expenses, net income, or net cash provided by

operating activities.

In accordance with our Compensation Recovery Policy, the Compensation Committee of the Board of Directors

reviewed the revised financial statements and concluded that there was no recovery of erroneously awarded

compensation required under the Compensation Recovery Policy because the revised financial statements did not

impact the amount of any incentive-based compensation received by our executive officers on or after the dates

covered by the revised financial statements.

3. Variable Interest Entity

As part of the 2023-2024 catastrophe excess of loss reinsurance placement, which incepted on June 1, 2023, AIIC

entered into a reinsurance agreement with Catstye, a segregated account controlled by the Company. Catstye

provides reinsurance coverage for layer one of the Company’s catastrophe reinsurance program effective June 1,

2023 through May 31, 2024, June 1, 2024 through May 31, 2025, June 1, 2025 through May 31, 2026, and June 1,

2026 through May 31, 2027. Catstye reinsurance eliminates in consolidation.

To establish the Catstye, AIIG entered into a master preference shareholder agreement with Artex whereby AIIG

purchased 1,000 non-voting redeemable preference shares, par value of $1.00, to become the sole shareholder of

Catstye. AIIG also contributed additional surplus in order to fully capitalize Catstye.

The Company was determined to be the primary beneficiary of Catstye, a silo that is a VIE within Artex, as AIIG

has the power to direct the activities that significantly affect the economic performance as well as the obligation to

absorb losses and the right to receive benefits that could potentially be significant of Catstye. Thus, AIIG has


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Table of Contents

American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

consolidated the assets, liabilities and operations of Catstye in its condensed consolidated financial statements with

intercompany balances and transactions eliminated in consolidation.

The following table presents, on a consolidated basis, the balance sheet classification and exposure of restricted cash

and cash equivalents held in the segregated account, which are used to settle reinsurance obligations of the VIE as of

the dates presented. Restricted cash and cash equivalents held in the segregated account are required to be held in a

trust account solely for the benefit of the Company and can be used to settle activity under the reinsurance

agreement. Any restricted cash or cash equivalents held in the segregated account not actively being used to settle

activity under the reinsurance agreement can be paid to the Company by dividend based upon underwriting results

of the segregated account or by expiration or termination of the reinsurance agreement. Catstye cannot declare or

pay dividends without necessary approvals from the Bermuda Monetary Authority (the “Authority”).


	June 30, 2026	December 31, 2025
Restricted cash and cash equivalents	$54,560	$39,364
Total	$54,560	$39,364

4. Investments

Available-for-Sale Securities

The amortized cost and estimated fair value of available-for-sale securities were as follows:


	June 30, 2026
	Amortized Cost	Allowance for Credit Loss	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value
U.S. Treasury and U.S. government agencies	$30,701	$—	$1	$(32)	$30,670
Corporate debt securities	182,207	—	107	(323)	181,991
Asset-backed securities	134,081	—	266	(581)	133,766
Total fixed maturity securities	346,989	—	374	(936)	346,427
Short-term investments	4,739	—	—	(1)	4,738
Total available-for-sale investments	$351,728	$—	$374	$(937)	$351,165


	December 31, 2025
	Amortized Cost	Allowance for Credit Loss	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value
U.S. Treasury and U.S. government agencies	$30,646	$—	$76	$—	$30,722
Corporate debt securities	205,109	—	1,793	(103)	206,799
Asset-backed securities	92,155	—	826	(13)	92,968
Total fixed maturity securities	327,910	—	2,695	(116)	330,489
Short-term investments	18,121	—	1	(1)	18,121
Total available-for-sale investments	$346,031	$—	$2,696	$(117)	$348,610


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American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

A summary of the aggregate estimated fair values of available-for-sale securities with unrealized losses segregated

by time period in an unrealized loss position is as follows:


	June 30, 2026
	Less than 12 months		12 months or greater		Total
	Estimated Fair Value	Unrealized losses	Estimated Fair Value	Unrealized losses	Estimated Fair Value	Unrealized losses
U.S. Treasury and U.S. government agencies	$3,954	$(23)	$19,726	$(9)	$23,680	$(32)
Corporate debt securities	23,843	(126)	73,054	(197)	96,897	(323)
Asset-backed securities	61,677	(505)	23,280	(76)	84,957	(581)
Short-term investments	2,698	(1)	—	—	2,698	(1)
Total	$92,172	$(655)	$116,060	$(282)	$208,232	$(937)


	December 31, 2025
	Less than 12 months		12 months or greater		Total
	Estimated Fair Value	Unrealized losses	Estimated Fair Value	Unrealized losses	Estimated Fair Value	Unrealized losses
Corporate debt securities	$134,892	$(19)	$71,907	$(84)	$206,799	$(103)
Asset-backed securities	78,644	(12)	14,324	(1)	92,968	(13)
Short-term investments	18,121	(1)	—	—	18,121	(1)
Total	$231,657	$(32)	$86,231	$(85)	$317,888	$(117)

As of June 30, 2026 and December 31, 2025, there were 103 and 17 available-for-sale fixed-maturity securities,

respectively, in an unrealized loss position.

A summary of the amortized cost and estimated fair value of available-for-sale securities at June 30, 2026, by

contractual maturity is as follows. The expected maturities may differ from the contractual maturities because

certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized Cost	Estimated Fair Value
Years to maturity
Government and corporate securities:
Due in one year or less	$96,833	$96,790
Due after one year through five years	120,814	120,609
Due after five years through 10 years	—	—
Due after 10 years	—	—
Other securities, which provide for periodic payments:
Asset-backed securities	134,081	133,766
Total	$351,728	$351,165


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Table of Contents

American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

The following table presents components of the Company’s net investment income as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Fixed maturities, available-for-sale	$3,955	$2,139	$7,789	$4,270
Short-term investments	31	—	149	—
Cash and cash equivalents	2,454	2,847	4,362	4,962
Gross investment income	6,440	4,986	12,300	9,232
Investment expenses	(190)	(206)	(398)	(349)
Net investment income	$6,250	$4,780	$11,902	$8,883

Proceeds from sales or maturities of fixed maturity available-for-sale securities for the three months ended June 30,

2026 were $14,505, with $22 and $23 of gross realized gains and losses, respectively. Proceeds from sales of fixed

maturity available-for-sale securities for the three months ended June 30, 2025 were $43,616, with $514 and $29 of

gross realized gains and losses, respectively. There were no proceeds from sales or maturities of short-term

securities for the three months ended June 30, 2026 and 2025.

Proceeds from sales or maturities of fixed maturity available-for-sale securities for the six months ended June 30,

2026 were $35,038, with $103 and $48 of gross realized gains and losses, respectively. Proceeds from sales of fixed

maturity available-for-sale securities for the six months ended June 30, 2025 were $103,486, with $625 and $124 of

gross realized gains and losses, respectively. Proceeds from sales or maturities of short-term securities for the six

months ended June 30, 2026 were $22,659, with no gross realized gains and $5 of gross realized losses, respectively.

There were no proceeds from sales or maturities of short-term securities for the six months ended June 30, 2025.

The Company did not record any activity pertaining to the allowance for credit losses as of June 30, 2026 or

December 31, 2025.

5. Fair Value Measurements

The tables below present information about the Company’s financial assets measured at fair value on a recurring

basis:


	June 30, 2026
	Total	Level 1	Level 2	Level 3
U.S. Treasury and U.S. government agencies	$30,670	$30,670	$—	$—
Corporate debt securities	181,991	—	181,991	—
Asset-backed securities	133,766	—	133,766	—
Short-term investments	4,738	—	4,738	—
Total	$351,165	$30,670	$320,495	$—


	December 31, 2025
	Total	Level 1	Level 2	Level 3
U.S. Treasury and U.S. government agencies	$30,722	$30,722	$—	$—
Corporate debt securities	206,799	—	206,799	—
Asset-backed securities	92,968	—	92,968	—
Short-term investments	18,121	—	18,121	—
Total	$348,610	$30,722	$317,888	$—

The Company had no assets carried at fair value in the Level 3 category as of June 30, 2026 and December 31, 2025.


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Table of Contents

American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

The Company classifies U.S. Treasury bonds and government agencies within Level 1 of the fair value hierarchy

because they are valued based on quoted market prices in active markets. Corporate debt securities, short-term

investments, and asset-backed securities categorized as Level 2 were valued using a market approach. Valuations

were based upon quoted prices for similar assets in active markets, quoted prices for identical or similar assets in

inactive markets, or valuations based on models where the significant inputs are observable (e.g., interest rates, yield

curves, prepayment speeds, default rates, loss severities) or can be corroborated by observable market data.

During the three months ended June 30, 2026, the Company had no event or circumstance change that would cause

an instrument to be transferred between levels.

The following table summarizes the carrying value and estimated fair value of the Company’s financial instruments

not carried at fair value as of the date presented:


	June 30, 2026		December 31, 2025
	Carrying Value	Estimated Fair Value	Carrying Value	Estimated Fair Value
Long-term debt:
Surplus note	$412	$401	$618	$499

The Company’s long-term debt represents a surplus note. Fair value was determined by management based on the

expected cash flows discounted using the interest rate specified in the surplus note agreement with the Florida State

Board of Administration (“FSBA”). The interest rate is not obtained from an external market source but is defined

within the agreement as a rate equivalent to the 10-year Constant Maturity Treasury Rate, adjusted quarterly in

accordance with the terms of the agreement. The Company’s use of funds from the surplus note is limited by the

terms of the agreement. The Company has concluded that the contractual interest rate quoted by the FSBA to be

appropriate for purposes of establishing the fair value of the surplus note (Level 3).

6. Property and Equipment

Property and equipment consisted of the following as of:


	June 30, 2026	December 31, 2025
Furniture	$6,034	$1,715
Leasehold improvements	218	218
Computer equipment	4,343	4,186
Vehicle fleet	545	545
Internally developed software	6,178	6,178
Total, at cost	17,318	12,842
Accumulated depreciation and amortization	(8,367)	(7,124)
Property and equipment, net	$8,951	$5,718

Depreciation and amortization expense related to property and equipment was $648 and $210 for the three months

ended June 30, 2026 and 2025, respectively, and $1,243 and $406 for the six months ended June 30, 2026 and 2025,

respectively.


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Table of Contents

American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

7. Deferred Policy Acquisition Costs, Net of Ceding Commissions

The tables below show the activity regarding deferred policy acquisition costs (“DPAC”) for the three and six

months ended June 30, 2026 and 2025.

For the three months ended June 30, 2026 and 2025, the Company allocated earned ceding commission income of

$13,197 and $16,992 to policy acquisition costs, respectively, and $13,786 and $21,953 to general and

administrative expenses, respectively. For the six months ended June 30, 2026 and 2025, the Company allocated

earned ceding commission income of $26,124 and $31,796 to policy acquisition costs, respectively, and $26,708 and

$45,815 to general and administrative expenses, respectively.


	Three Months Ended June 30, 2026
	DPAC, excluding unearned ceding commission	Unearned ceding commission	Total
DPAC, beginning of period	$59,189	$(49,964)	$9,225
Policy acquisition costs deferred during the period:
Producer commissions	35,635	—	35,635
Premium taxes	5,421	—	5,421
Other acquisition costs	3,178	—	3,178
Ceding commissions	—	(26,509)	(26,509)
Total policy acquisition costs	44,234	(26,509)	17,725
Amortization	(31,520)	26,984	(4,536)
DPAC, end of period	$71,903	$(49,489)	$22,414


	Three Months Ended June 30, 2025
	DPAC, excluding unearned ceding commission	Unearned ceding commission	Total
DPAC, beginning of period	$43,450	$(70,286)	$(26,836)
Policy acquisition costs deferred during the period:
Producer commissions	29,118	—	29,118
Premium taxes	5,032	—	5,032
Other acquisition costs	2,674	—	2,674
Ceding commissions	—	(52,123)	(52,123)
Total policy acquisition costs	36,824	(52,123)	(15,299)
Amortization	(23,676)	38,945	15,269
DPAC, end of period	$56,598	$(83,464)	$(26,866)


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Table of Contents

American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)


	Six Months Ended June 30, 2026
	DPAC, excluding unearned ceding commission	Unearned ceding commission	Total
DPAC, beginning of period	$58,810	$(53,683)	$5,127
Policy acquisition costs deferred during the period:
Producer commissions	59,855	—	59,855
Premium taxes	8,519	—	8,519
Other acquisition costs	5,925	—	5,925
Ceding commissions	—	(48,637)	(48,637)
Total policy acquisition costs	74,299	(48,637)	25,662
Amortization	(61,206)	52,831	(8,375)
DPAC, end of period	$71,903	$(49,489)	$22,414


	Six Months Ended June 30, 2025
	DPAC, excluding unearned ceding commission	Unearned ceding commission	Total
DPAC, beginning of period	$38,803	$(70,734)	$(31,931)
Policy acquisition costs deferred during the period:
Producer commissions	47,204	—	47,204
Premium taxes	7,696	—	7,696
Other acquisition costs	5,164	—	5,164
Ceding commissions	—	(90,341)	(90,341)
Total policy acquisition costs	60,064	(90,341)	(30,277)
Amortization	(42,269)	77,611	35,342
DPAC, end of period	$56,598	$(83,464)	$(26,866)

8.Liability for Unpaid Losses and Loss Adjustment Expenses

The liability for unpaid losses and loss adjustment expenses (“LAE”) includes an amount determined from loss

reports and individual cases and an amount, based on past experience, for losses incurred but not yet reported.

The following table provides a reconciliation of changes in the liability for unpaid losses and LAE:


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Table of Contents

American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)


	Six Months Ended June 30,
	2026	2025
Unpaid Loss and LAE beginning of period	$266,591	$475,708
Less: Reinsurance recoverables on unpaid losses and LAE	192,336	415,086
Net unpaid loss and LAE at beginning of period	74,255	60,622
Add: Losses and LAE, net of reinsurance, incurred related to:
Current period	64,876	43,168
Prior period	—	(1,117)
Total net losses and LAE incurred	64,876	42,051
Less: Losses and LAE paid, net of reinsurance, related to:
Current period	19,044	13,528
Prior period	26,204	24,838
Total net paid losses and LAE	45,248	38,366
Unpaid loss and LAE, net of reinsurance at end of period	93,883	64,307
Add: Reinsurance recoverables on unpaid losses and LAE	160,295	314,479
Unpaid loss and LAE at end of period	$254,178	$378,786

During the six months ended June 30, 2026, the liability for unpaid losses and LAE, net of reinsurance, increased by

$19,628 from $74,255 as of December 31, 2025 to $93,883 as of June 30, 2026. The increase was primarily as a

result of an increase in reserves related to non-catastrophe storms of $8,976, with an additional increase in reserves

for Citizens, a Florida state-supported insurer, assumed business of $9,304.

Prior period development includes changes in estimated losses and LAE for all events occurring in prior periods

including hurricanes and other weather events. In 2026, the Company’s net loss and LAE incurred for the six months

ended June 30, 2026 reflected no prior year development. These adjustments are generally the result of ongoing

analysis of recent loss development trends. Original estimates are decreased or increased as additional information

becomes known regarding individual claims.

9. Reinsurance

In order to limit the Company’s potential exposure to individual risks and catastrophic events, the Company

purchases reinsurance from third-party reinsurers as well as the Florida Hurricane Catastrophe Fund (“FHCF”), a

state-mandated catastrophe fund for Florida policies only. All of the Company’s reinsurance partners were rated

“A-” or higher by A.M. Best Company, Inc. (“A.M. Best”) or “BBB” or higher by Standard & Poor’s Financial

Services LLC (“S&P”) or were fully collateralized.

In 2024, the Company also began participating in a “take-out program” through which the Company assumes

insurance policies held by Citizens. The take-out program is a legislatively created program designed to reduce the

state’s risk exposure by encouraging private companies to assume policies from Citizens.

2026 – 2027 Reinsurance Program

Catastrophe Excess of Loss Reinsurance

Effective June 1, 2026, the Company entered into catastrophe excess of loss reinsurance agreements covering its

insurance subsidiary, AIIC. The catastrophe reinsurance program is indemnity-based and includes a combination of

coverage from traditional reinsurers, the FHCF, Insurance Linked Securities (“ILS”) investors through Integrity Re

III Ltd., and the Company’s segregated cell captive reinsurer.


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Table of Contents

American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

The 2026–2027 reinsurance program provides third-party reinsurance coverage of $2.25 billion for a single

catastrophic event, with total third-party coverage of $2.99 billion across all occurrences, representing a 15.8%

increase over the prior year’s treaty limit. The first event tower, including retentions, is equal to a 1-in-130 year

probable maximum loss level, consistent with last year’s program. The Company’s net retention is $35.0 million for

the first event, $20.0 million for the second event, and $10.0 million for each of the third and fourth events.

The FHCF covers Florida-admitted risks only, and the Company elected to participate at 90% for the 2026 hurricane

season, consistent with the prior year, totaling $572.7 million of limit.

The ILS market represented $825.0 million of limit with $565.0 million reflective of our catastrophe bonds issued in

2025 which expire in May of 2027, and new catastrophe bonds totaling $260.0 million issued by Integrity Re III Ltd,

a Bermuda-based special purpose insurer and unrelated party, as part of the program, marking the ninth ILS

transaction sponsored by the Company.

All reinsurers participating in the program are either rated “A-” or higher by A.M. Best or are fully collateralized, to

mitigate counterparty credit risk. The entire program is structured without parametric covers and is fully indemnity-

based.

Total net consolidated catastrophe reinsurance premiums ceded to third parties are expected to total $430.0 -

$440.0 million for the 2026 treaty year.

Net Quota Share Reinsurance

Effective December 31, 2025 to December 31, 2026, the Company entered into quota share agreements that

generally provide coverage for 25% of all losses net of other reinsurance coverages, the aggregate of which shall not

exceed 116.6% of net ceded premiums earned. The reinsurers’ net liability on catastrophe losses shall not exceed

2.5% of gross premiums earned net of inuring reinsurance premium. In the determination of ceded premiums under

the agreements, the maximum amount allowed by the reinsurers for other inuring reinsurance coverages is limited to

31% of gross premiums earned for the term of the contract. The reinsurers allow the Company a provisional ceding

commission of 68.25% to 69.00%, depending on the reinsurer, that adjusts based on loss experience.

The Company remains contingently liable in the event the reinsuring companies do not meet their obligations under

these reinsurance contracts. Given the quality of the reinsuring companies, management believes this possibility to

be remote. See Note 8 – “Liability for Unpaid Losses and Loss Adjustment Expenses” for recoveries due from

reinsurers relating to paid and unpaid losses and LAE under these treaties.

Effect of Reinsurance

The effects of reinsurance on premiums written and earned were as follows:


	Three Months Ended June 30,
	2026		2025
	Written	Earned	Written	Earned
Direct premiums	$326,416	$234,415	$270,741	$179,515
Assumed Premiums	176	7,836	16,254	44,225
Gross Premiums	326,592	242,251	286,995	223,740
Ceded premiums	(507,923)	(137,555)	(549,916)	(157,571)
Net premiums	$(181,331)	$104,696	$(262,921)	$66,169


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American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)


	Six Months Ended June 30,
	2026		2025
	Written	Earned	Written	Earned
Direct premiums	$545,256	$452,419	$451,666	$346,286
Assumed Premiums	1,340	20,604	47,479	87,610
Gross Premiums	546,596	473,023	499,145	433,896
Ceded premiums	(546,331)	(286,119)	(608,670)	(302,325)
Net premiums	$265	$186,904	$(109,525)	$131,571

The Company’s reinsurance arrangements affected certain items in the condensed consolidated statements of

operations and comprehensive income for the three and six months ended June 30, 2026 and 2025 by the following

amounts:


	Three Months Ended June 30,
	2026	2025
Ceded premiums earned	$(137,555)	$(157,571)
Ceded losses and loss adjustment expenses incurred	(2,276)	21,189
Ceded policy acquisition expenses	26,983	6,281

For the three months ended June 30, 2026 and 2025, recoveries received under reinsurance contracts were $24,563

and $30,041, respectively.


	Six Months Ended June 30,
	2026	2025
Ceded premiums earned	$(286,119)	$(302,325)
Ceded losses and loss adjustment expenses incurred	9,043	42,051
Ceded policy acquisition expenses	52,831	9,388

For the six months ended June 30, 2026 and 2025, recoveries received under reinsurance contracts were $30,183 and

$67,631, respectively.

10. Regulatory Requirements and Restrictions

State laws and regulations, as well as national regulatory agency requirements, govern the operations of all insurers.

The various laws and regulations require that insurers maintain minimum amounts of statutory surplus and risk-

based capital (“RBC”); restrict insurers’ ability to pay dividends; restrict the allowable investment types and

investment mixes and subject the Company’s insurers to assessments.

The Company’s insurance subsidiary is subject to regulations and standards of the Florida Office of Insurance

Regulation (“FLOIR”). It is also subject to regulations and standards of regulatory authorities in other states where

they are licensed, although as a Florida-domiciled insurer, its principal regulatory authority is the FLOIR.

AIIC prepares its statutory-basis financial statements in accordance with statutory accounting practices prescribed or

permitted by FLOIR. The commissioner of the FLOIR has the right to permit other practices that may deviate from

prescribed practices. AIIC does not obtain and follow any permitted practice that deviates from the prescribed

practices. As of June 30, 2026 and December 31, 2025, AIIC reported statutory capital and surplus of $208,887 and

$193,080, respectively. For the six months ended June 30, 2026 and 2025, AIIC reported statutory net income of

$13,504 and $31,766, respectively. Statutory-basis surplus differs from shareholders’ equity reported in accordance


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American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

with GAAP primarily due to the impact of the Company’s IPO proceeds, which are largely at the holding company,

and because policy acquisition costs are expensed when incurred, certain assets that are not admitted assets are

eliminated from the condensed consolidated balance sheets, and surplus notes are reported as surplus rather than

liabilities. In addition, the recognition of deferred tax assets is based on different recoverability assumptions.

The Florida statutes require a residential property insurance company to maintain statutory surplus as to

policyholders of at least $1,500 or 10.0% of the insurer’s total liabilities, whichever is greater. Accordingly, as of

June 30, 2026 and December 31, 2025, AIIC exceeded the minimum statutory surplus requirement, which was

$20,889 and $19,308, respectively. Under Florida law, without regulatory approval, AIIC may pay dividends if its

statutory surplus does not exceed the greater of: (i) the lesser of 10.0% of surplus or net income, not including

realized capital gains, plus a two-year carry forward; (ii) 10.0% of surplus, with dividends payable limited to

unassigned funds minus 25.0% of unrealized capital gains; or (iii) the lesser of 10.0% of surplus or net investment

income plus a three-year carry forward with dividends payable limited to unassigned funds minus 25.0% of

unrealized capital gains. AIIC did not pay any dividends during the three months ended June 30, 2026, and it can

still pay dividends without regulatory approval.

AIIC is also required annually to comply with the National Association of Insurance Commissioners (“NAIC”) RBC

requirements. RBC requirements prescribe a method of measuring the amount of capital appropriate for an insurance

company to support its overall business operations in light of its size and risk profile. NAIC RBC requirements are

used by regulators to determine appropriate regulatory actions relating to insurers who show signs of a weak or

deteriorating condition. As of June 30, 2026 and December 31, 2025, based on calculations using the appropriate

NAIC RBC formula, AIIC reported total adjusted capital in excess of the requirements.

AIIC has maintained a cash deposit with the Insurance Commissioner of the State of Florida and other states in

which AIIC is authorized to write business in order to meet regulatory requirements and such cash deposit is

included in restricted cash and cash equivalents on the condensed consolidated balance sheets.

In addition, Florida property and casualty insurance companies are required to adhere to prescribed premium-to-

capital surplus ratios. Florida state law requires that the ratio of 90.0% of premiums written divided by surplus as to

policyholders does not exceed 10-to-1 for gross premiums written or 4-to-1 for net premiums written. As of June 30,

2026, AIIC had a ratio of gross and net premiums written to surplus of 2.4-to-1 and (0.1)-to-1, respectively, which

met the requirements.

The Company also has the Catstye reinsurance segregated account, where the Company can withdraw from cash

held in the segregated account, but must provide written notice to the trustee in the form of a withdrawal notice in

order to access the funds. However, consent of the grantor is not required to access the funds, and the funds’ use is

not restricted within the terms of the trust agreement. Catstye is regulated by the Authority and is required to meet

and maintain certain minimum levels of solvency and liquidity. Catstye’s statutory capital and surplus necessary to

satisfy the regulatory requirements in the aggregate was $56,952 and $38,398 as of June 30, 2026 and December 31,

2025, respectively. As of June 30, 2026 and December 31, 2025, the actual amount of statutory capital and surplus

was $56,952 and $38,398, respectively. The liabilities of Catstye are fully collateralized and accordingly capital and

surplus are available to be paid out in dividends and subject to approval in accordance with regulations of the

Authority.

11. Shareholders’ Equity

Immediately prior to the IPO, the owners of the equity interests of AIIG contributed all of their equity interests to

the Company in exchange for an aggregate of 12,904,495 shares of Common Stock.


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American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

Initial Public Offering

The Company’s amended and restated certificate of incorporation authorizes 100,000,000 shares of Common Stock,

of which 19,593,427 shares were issued and outstanding as of June 30, 2026, and 10,000,000 shares of preferred

stock, $0.001 par value per share, of which no shares were issued and outstanding as of June 30, 2026.

The Company issued 6,250,000 shares of Common Stock to the public, at a price of $16.00 per share in its IPO. The

Company received net proceeds of $93 million after deducting underwriting discounts and commissions and paid

$4.2 million in offering expenses that reduced the proceeds received in additional paid-in capital in the consolidated

balance sheets. In addition, in connection with the IPO, the Company used $3.8 million of the proceeds from the

offering to satisfy the Restricted Stock Grant Net Settlement and $3.0 million of the proceeds of the offering to

terminate the management services agreement by and between James Sowell Company, L.P. and AIIG, but these

costs were expensed in general and administrative expenses on the consolidated statements of operations and

comprehensive income.

Distributions

The Company is a legal entity separate and distinct from its subsidiaries. As a holding company, the primary sources

of cash needed to meet its obligations are distributions, dividends, and other permitted payments from its

subsidiaries and consolidated VIEs. While there are no restrictions on distributions from AIMGA, AICS, PA, and

PIC, dividends from AIIC and Catstye are restricted. See Note 10 – “Regulatory Requirements and Restrictions” for

the restrictions on dividends from AIIC and Note 3 – “Variable Interest Entity” for restrictions on dividends from

Catstye.

Prior to the IPO, taxable income was allocated to the members of AIIG in accordance with the United States Internal

Revenue Code and AIIG’s amended and restated company agreement. Tax distributions totaled $8.0 million and

$12.9 million during the three and six months ended June 30, 2025, respectively.

Additionally, according to AIIG’s company agreement and prior to the IPO, AIIG’s Board of Directors was

permitted to, in its discretion, declare distributions to AIIG’s members in proportion to such members’ respective

percentage ownership interests. The Company made $10.0 million of discretionary distributions to members during

the six months ended June 30, 2025. There were no discretionary distributions to members during the second quarter

of 2025.

Special Cash Dividend

On February 24, 2026, the Company’s Board of Directors declared a $20.0 million special cash dividend of $1.02

per common share. The dividends were paid on March 30, 2026 to stockholders of record as of March 16, 2026.

There were no other dividends declared during the six months ended June 30, 2026.

12. Stock-Based Compensation

The Company adopted the American Integrity Insurance Group, Inc. 2025 Long-Term Incentive Plan (the “Plan”)

effective May 7, 2025. The maximum number of shares of Common Stock that may be issued pursuant to awards

under the Plan is 2,175,758 shares of Common Stock.

At June 30, 2026, there were 1,886,276 shares of Common Stock available for future issuance under the Plan.

Restricted Stock Awards

During 2025 and the first half of 2026, the Company issued shares of restricted stock (“RSAs”) under the Plan to its

non-employee members of the Board of Directors pursuant to the American Integrity Insurance Group, Inc. 2025

Non-Employee Director Compensation Policy (the “Non-Employee Director Compensation Policy”) approved on


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American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

September 9, 2025. Under the Non-Employee Director Compensation Policy, an initial grant of 2,658 RSAs was

awarded on September 9, 2025, followed by quarterly grants totaling 4,386 RSAs during the remainder of 2025 and

4,944 RSAs during the six months ended June 30, 2026. The RSAs awarded under the Non-Employee Director

Compensation Policy vest immediately on their respective grant date.

A summary of all RSA activity for the six months ended June 30, 2026 is as follows:


	Number of RSAs	Weighted Average Grant Date Fair Value
Granted and unvested at December 31, 2025	—	$—
Granted	4,944	19.04
Vested	(4,944)	19.04
Nonvested at June 30, 2026	—	$—

During the three and six months ended June 30, 2026, the Company recognized $49 and $94, respectively, of share-

based compensation expense related to the RSAs granted to the non-employee members of the Board of Directors

within general and administrative expenses in the condensed consolidated statements of operations and

comprehensive income.

Restricted Stock Units

On December 4, 2025, the Compensation Committee of the Board of Directors approved the grant of 46,876 time-

based restricted stock units (“RSUs”) pursuant to the Company’s form of RSU agreement (the “RSU Agreement”)

under the Plan. The RSUs were granted to certain executive officers with a grant-date fair value of $20.62 per share,

which was determined using the closing price of our Common Stock reported on the New York Stock Exchange on

the grant date. One-third of these RSUs vest annually on the Plan’s adoption anniversary date over a three-year term,

commencing on May 7, 2026. The vesting of the shares granted pursuant to the RSU Agreement is contingent upon

the employee’s continuous employment with the Company through each vesting period. In connection with the first

vesting date on May 7, 2026, 6,151 shares were withheld to satisfy estimated tax withholding and remittance

obligations.

On March 2, 2026, the Compensation Committee of the Board of Directors approved the grant of 44,137 RSUs

pursuant to the RSU Agreement under the Plan. These RSUs were granted to certain executive officers based on a

grant-date fair value of $21.16 per share, which was determined using the closing price of our Common Stock

reported on the New York Stock Exchange on the grant date. One-third of these RSUs vest annually over a three-

year term, commencing on March 2, 2027. The shares vested under the RSU Agreement are contingent upon the

employee’s continuous employment with the Company through each vesting period.

On April 6, 2026, the Compensation Committee of the Board of Directors approved the grant of 4,262 RSUs

pursuant to the RSU Agreement under the Plan. These RSUs were granted to an executive officer based on a grant-

date fair value of $19.47 per share, which was determined using the closing price of our Common Stock reported on

the New York Stock Exchange on the grant date. One-third of these RSUs vest annually over a three-year term,

commencing on April 6, 2027. The shares vested under the RSU Agreement are contingent upon the employee’s

continuous employment with the Company through each vesting period.

On March 2, 2026, the Compensation Committee of the Board of Directors approved the grant of 176,557 PSUs

pursuant to the Company’s form of PSU agreement (the “PSU Agreement”) under the Plan. These PSUs were

granted to certain executive officers based on a grant-date fair value of $21.16 per share, which was determined

using the closing price of our Common Stock reported on the New York Stock Exchange on the grant date. In

addition, on April 6, 2026, the Compensation Committee of the Board of Directors approved the grant of 11,813

PSUs pursuant to the PSU Agreement under the Plan. These PSUs were granted to an executive officer based on a

grant-date fair value of $19.47 per share, which was determined using the closing price of our Common Stock


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Table of Contents

American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

reported on the New York Stock Exchange on the grant date. These PSUs are subject to a three-year performance

period, commencing on January 1, 2026 and ending on December 31, 2028. Performance is measured annually, and

following the conclusion of each performance year, the Compensation Committee of the Board of Directors will

certify the Company’s achievement of the applicable performance metrics and determine the number of PSUs

earned for that year.

Notwithstanding the annual performance measurement, the PSUs do not vest until the completion of the full three-

year performance period, and participants must remain employed through the end of the performance period to

receive any shares underlying the awards. Shares earned based on the annual performance assessments are therefore

subject to continued employment through December 31, 2028 and will vest following the end of the performance

period, but no later than March 15, 2029.

These PSUs were granted assuming expected maximum achievement of the applicable performance conditions and

are subject to decreases based on the Company’s actual performance relative to the established metrics for each

performance year.

A summary of all RSU and PSU activity for the six months ended June 30, 2026 is as follows:


	Number of RSUs and PSUs	Weighted Average Grant Date Fair Value
Granted and unvested RSUs and PSUs at December 31, 2025	46,876	$20.62
Granted - RSUs	48,399	21.01
Granted - PSUs	188,370	21.05
Vested (Shares withheld for tax remittance)	(6,151)	21.16
Vested	(9,474)	21.16
Forfeited	—	—
Granted and unvested RSUs and PSUs at June 30, 2026	268,020	$20.96

The Company recognizes the compensation cost for the RSUs and PSUs on a straight-line basis over the awards’

vesting period.

The Company recognized compensation costs associated with the RSUs and PSUs of $566 and $786 for the three

and six months ended June 30, 2026, respectively. The Company did not grant RSUs or PSUs under the Plan prior to

December 4, 2025, and therefore no compensation cost related to RSUs or PSUs was recognized for the three and

six months ended June 30, 2025.

Modifications

On April 6, 2026, the Company modified the vesting period of 6,682 RSUs in connection with the transition of one

of its executives to a non-employee consulting role. Such RSUs are eligible to vest over the duration of the one-year

consulting period. At the end of the consulting period, all of such unvested RSUs that remain outstanding will

accelerate and vest in full.

In addition, the Company modified the requisite service period of all 12,665 of the executive’s PSUs in connection

with the transition. While the original performance periods and vesting dates remain unchanged, remaining

compensation cost is recognized over the one-year consulting period based on the estimated level of performance

expected to be achieved over the term of the award. The amount of compensation cost recognized will be adjusted in

future periods, if necessary, to reflect changes in the estimated achievement of the applicable performance

conditions.


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Table of Contents

American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

13. Segment Reporting

Operating segments are defined as components of a company that engage in activities from which it may earn

revenues and incur expenses for which separate operational financial information is available and is regularly

evaluated by the chief operating decision maker (“CODM”). For the purpose of allocating the Company’s resources

and assessing its operating performance, the Company identified the CODM to be the Chief Executive Officer.

The Company concluded that it has only one reportable operating segment. This conclusion is based on the three

characteristics of an operating segment within ASC 280. The first characteristic of an operating segment is that it

engages in business activities from which it may recognize revenues and incur expenses. The second characteristic is

that its operating results are regularly reviewed by the CODM to make decisions about resources to be allocated to

the segment and assess its performance. The third characteristic is that its discrete financial information is available.

The Company considered each of these factors in determining that the consolidated entity is the single operating

segment. As there is only one operating segment, the Company did not assess any aggregation or materiality and

concluded that the Company will report a single reportable segment. As there is a single reportable segment, the

CODM uses information that is presented in the condensed consolidated financial statements to evaluate the

performance of the single segment, including net income as the measure of profit or loss. The CODM uses net

income to monitor budgeted versus actual results, which assists in the evaluation of segment performance and what

resources are needed. The CODM also uses net income to assess the Company’s performance in comparison with

competitors. No single customer represents more than 10% of the Company’s revenue.

14. Earnings Per Share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-

average number of common shares outstanding during the period.

For the purposes of determining the basic and diluted weighted-average number of common shares outstanding

during the periods presented that are prior to the IPO, the Company retrospectively reflected the Corporate

Contribution in connection with the IPO. As such, the basic and diluted weighted-average number of common shares

outstanding for those periods reflect the exchange of AIIG’s membership units into shares of Common Stock on the

date of the IPO, assuming that all shares of Common Stock issued in conjunction with the IPO were issued and

outstanding as of the beginning of the earliest period presented.

The Company historically had a Profit Participation Plan (“PPP”) that was terminated upon the IPO. For the

comparative historical period presented, it was determined in accordance with ASC 260, Earnings Per Share, (“ASC

260”), that the participants of the PPP were able to participate in undistributed earnings with Common Stock based

on a predetermined formula on a nonforfeitable basis, thus representing a participating security. The Company

applies the two-class method to allocate income between the common shareholders and the PPP participants.

The RSUs and PSUs have a contractual right to participate in undistributed earnings with Common Stock. The

Company applies the two-class method to allocate income between common shareholders and RSU and PSU

holders.

The following tables present the net income and the weighted average number of shares outstanding used in the

earnings per share calculations. For the three and six months ended June 30, 2025, there were no potentially dilutive

instruments outstanding.

For the three and six months ended June 30, 2026, diluted earnings per share reflects the impact of RSUs and PSUs

using the treasury stock method. For the three and six months ended June 30, 2026, approximately 3,455 and 1,834

incremental shares, respectively, were considered dilutive, primarily related to RSUs and PSUs. The impact of these

dilutive shares was immaterial and did not change diluted earnings per share when rounded.


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Table of Contents

American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)


	Three Months Ended June 30,
	2026	2025
Numerator:
Net income attributable to common shareholders	$34,146	$27,494
Income allocated to participating securities	—	—
Income available for common shareholders	$34,146	$27,494

Denominator:
Shares outstanding	19,593,427	19,571,965
Weighted average common shares outstanding - basic	19,586,994	16,962,075
Weighted average common shares outstanding - diluted(1)	19,590,448	16,962,075

Earnings available to common shareholders per share
Basic	$1.74	$1.62
Diluted	$1.74	$1.62

(1)19,337 anti-dilutive shares were excluded from the diluted earnings per share computation for the three months ended June

30, 2026 in accordance with ASC 260.


	Six Months Ended June 30,
	2026	2025
Numerator:
Net income attributable to common shareholders	$54,056	$65,590
Income allocated to participating securities	—	2,190
Income available for common shareholders	$54,056	$63,400

Denominator:
Shares outstanding	19,593,427	19,571,965
Weighted average common shares outstanding - basic	19,583,036	15,152,075
Weighted average common shares outstanding - diluted(1)	19,584,870	15,152,075

Earnings available to common shareholders per share
Basic	$2.76	$4.18
Diluted	$2.76	$4.18

(1)18,693 anti-dilutive shares were excluded from the diluted earnings per share computation for the six months ended June 30,

2026 in accordance with ASC 260.

15. Other Comprehensive Income (Loss)

Comprehensive income (loss) includes changes in unrealized gains and losses on investments. Reclassification

adjustments for realized (gains) losses are reflected in net realized gains (losses) on investments on the condensed

consolidated statements of operations and comprehensive income.


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American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

The following table provides a summary of other comprehensive income (loss) and discloses the tax impact of each

component of other comprehensive income (loss) for the three and six months ended June 30, 2026 and 2025:


	Three Months Ended June 30,
	2026			2025
	Pre-Tax	Income Tax Benefit (Expense)	Net-of-Tax Amount	Pre-Tax	Income Tax Benefit (Expense)	Net-of-Tax Amount
Net changes to investments:
Unrealized holding gains (losses) arising during period	$(809)	$204	$(605)	$1,653	$(422)	$1,231
Reclassification adjustment for (gains) losses realized in net income	2	(1)	1	(484)	122	(362)
Other comprehensive income (loss)	$(807)	$203	$(604)	$1,169	$(300)	$869


	Six Months Ended June 30,
	2026			2025
	Pre-Tax	Income Tax Benefit (Expense)	Net-of-Tax Amount	Pre-Tax	Income Tax Benefit (Expense)	Net-of-Tax Amount
Net changes to investments:
Unrealized holding gains (losses) arising during period	$(3,091)	$780	$(2,311)	$2,264	$(576)	$1,688
Reclassification adjustment for (gains) losses realized in net income	(51)	14	(37)	(500)	126	(374)
Other comprehensive income (loss)	$(3,142)	$794	$(2,348)	$1,764	$(450)	$1,314

16. Income Taxes

The Company was incorporated as a Delaware corporation on January 15, 2025 and is subject to U.S. federal and

state corporate income tax. From January 1, 2025 through May 7, 2025, the Company and its non-insurance

subsidiaries were included in a single partnership return and were not subject to entity-level U.S. income tax. The

Company’s insurance subsidiary, AIIC, was subject to U.S. federal and state corporate income tax and filed on a

stand-alone basis. Effective May 7, 2025, the Company and its non-insurance corporate subsidiaries became subject

to U.S. federal and state income tax. Beginning in 2026, the Company filed a consolidated federal corporate income

tax return with its eligible subsidiaries. Taxes will be settled among the subsidiaries in accordance with the

Company’s tax sharing agreement.

In accordance with ASC 740, each interim period is considered integral to the annual period and tax expense is

generally determined using an estimate of the annual effective income tax rate (“AETR”). The Company records

income tax expense each quarter using the estimated AETR to provide for income taxes on a current year-to-date

basis, adjusted for discrete items that are noted in the relevant period. During the three and six months ended

June 30, 2026, there were no discrete items identified. During the three and six months ended June 30, 2025, the

Company’s non-taxable subsidiaries reduced the overall effective tax rate by (3.2)% and (8.6)%, respectively. The

change in tax status of a non-taxable subsidiary further reduced the effective rate by (40.3)% and (14.5)%,

respectively.


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Table of Contents

American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

The provision for income taxes for the three and six months ended June 30, 2026 was $12.3 million and $19.6

million, respectively, based on pretax income of $46.4 million and $73.7 million, respectively, compared with the

provision for income taxes for the three and six months ended June 30, 2025 of $(3.4) million and $1.4 million,

respectively, based on pretax income of $24.1 million and $67.0 million, respectively. The Company’s effective tax

rates for the three and six months ended June 30, 2026 were 26.4% and 26.6%, respectively, compared with (14.1)%

and 2.1% for the three and six months ended June 30, 2025, respectively.

The difference between the effective tax rate and the U.S. federal statutory tax rate of 21% for the three and six

months ended June 30, 2026 was primarily due to state income taxes and non-deductible compensation related to

employee stock awards granted and fully vested during the quarter. The effective tax rate also reflects the

unfavorable impact of certain other nondeductible expenses.

17. Commitments and Contingencies

Obligations under Multi-Year Reinsurance Contracts

The Company purchases reinsurance coverage to protect its capital and to limit its losses when certain major events

occur. The Company’s reinsurance commitments generally run from June 1 of the current year to May 31 of the

following year. From time to time, certain of the Company’s reinsurance agreements may be for periods longer than

one year. Amounts payable for coverage during the current June 1 to May 31 contract period are recorded as

reinsurance payable in the condensed consolidated balance sheets. Multi-year contract commitments for future years

are recorded at the beginning of the coverage period. As of June 30, 2026 and December 31, 2025, there were no

multi-year reinsurance contract obligations.

Litigation

Lawsuits and other legal proceedings are filed against the Company from time to time. Many of these legal

proceedings involve claims under insurance policies that the Company underwrites. The Company is also involved

in various other legal proceedings and litigation unrelated to claims under the Company’s contracts, which arise in

the ordinary course of business. The Company accrues amounts resulting from claim-related legal proceedings in

unpaid losses and loss adjustment expenses during the period it determines an unfavorable outcome becomes

probable and amounts can be estimated. Management believes that the resolution of these legal actions will not have

a material impact on the Company’s condensed consolidated financial statements. The Company contests liability

and/or the amount of damages as appropriate in each pending matter.

Florida Insurance Guaranty Association

In April 2023, the Florida Insurance Guaranty Association (“FIGA”) issued an order for the collection of a 1.0%

FIGA assessment policy surcharge for policies effective October 1, 2023 through September 30, 2024. The order

directed member insurance companies to collect policy surcharge amounts in advance and to remit those surcharge

amounts to FIGA on a quarterly basis. The Company recorded an accrued liability totaling $3,091 and $1,690,

respectively, in other liability and accrued expenses as of June 30, 2026 and December 31, 2025, which represents

the policy surcharge amounts collected, but unremitted to FIGA as of that date.

18. Leases

On February 20, 2025, the Company entered into a new 152-month lease agreement for approximately 75,000

square feet of office space in Tampa, Florida. Access to the leased premises commenced on March 31, 2026 and was

made available for use by the Company. Total future contractual lease payments under this agreement are expected

to approximate $45.7 million over the lease term. The terms of the new lease agreement include an eight-month rent

abatement period upon commencement. As a result, lease payments in 2026 are lower than subsequent years.


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Table of Contents

American Integrity Insurance Group, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollar amounts in thousands, except share and per share data, unless otherwise stated)

Operating lease cost was $1,036 and $544 for the three months ended June 30, 2026 and 2025, respectively, and

$1,406 and $1,087 for the six months ended June 30, 2026 and 2025, respectively, and is included in other operating

expenses on the condensed consolidated statements of operations and comprehensive income. Short-term and

variable lease costs were immaterial for the six months ended June 30, 2026 and 2025.

The following table provides supplemental balance sheet information about the Company’s leases as of June 30,

2026 and December 31, 2025:


	June 30, 2026	December 31, 2025
Operating leases:
Right-of-use assets	$38,452	$449
Lease liability	$33,065	$458
Weighted-average remaining lease term:
Operating leases	12.35 years	0.34 years
Weighted-average discount rate:
Operating leases	5.36%	3.42%

Supplemental disclosure of cash flow information related to leases was as follows for the three and six months ended

June 30, 2026 and 2025:


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$27	$565	$416	$1,127

The estimated future minimum payments of operating leases as of June 30, 2026 are as follows:


		Operating Leases
2026 remaining		$326
2027		3,403
2028		3,473
2029		3,585
2030		3,631
Thereafter		31,957
Total lease payments		46,375
Less: imputed interest		(13,310)
Present value of lease liabilities		$33,065

19. Subsequent Events

The Company performed an evaluation of subsequent events through the date the financial statements were issued

and determined there were no recognized or unrecognized subsequent events that would require an adjustment or

additional disclosure in the financial statements as of June 30, 2026.


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Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion provides a detailed analysis of our financial condition, results of operations, liquidity, and capital

resources. The following discussion and analysis of our financial condition and results of operations should be read in

conjunction with our unaudited condensed consolidated financial statements and related notes included in this Quarterly

Report on Form 10-Q, as well as our audited consolidated financial statements and related notes included in our Annual

Report on Form 10-K for the year ended December 31, 2025. This analysis includes forward-looking statements, which are

subject to various risks and uncertainties. Actual results may differ from projections due to factors beyond our control, as

detailed under Part II, Item 1A “Risk Factors” in this Quarterly Report on Form 10-Q and under Part I, Item 1A “Risk

Factors” in our Annual Report on Form 10-K. References to the “Company,” “American Integrity,” “we,” “us” or “our”

refer to American Integrity Insurance Group, Inc.

Overview

We are a profitable and growing insurance group headquartered in Tampa, Florida. Through our insurance carrier

subsidiary, American Integrity Insurance Company (“AIIC”), we provide personal residential property insurance for single-

family homeowners and condominium owners, as well as coverage for vacant dwellings and investment properties,

predominantly in Florida. Florida represented 92.0% of our policies in-force as of June 30, 2026. As of June 30, 2026,

73.2% of our in-force premium was in the insurance market in which we underwrite and sell policies to policyholders

where we choose to offer coverage without the assistance of residual market mechanisms (the “Voluntary Market”).

Moreover, 93.7% of our Voluntary Market in-force premium was in our core Florida market and 6.3% was collectively in

South Carolina, Georgia, and North Carolina, where we have strategically expanded to support and enhance our

relationships with our builder agency network.

We strive to generate consistent underwriting profits, exclusive of investment income or gains and losses from the sale of

invested assets. Our goal is to achieve profitability across economic and insurance cycles by maintaining a conservative

financial position, increasing premiums written and risk exposure when we believe market conditions are favorable, and

reducing risk exposure during periods when we believe market conditions are unfavorable and earning profits is more

challenging. AIIC, our statutory insurance carrier, maintains a Financial Stability Rating of “A” (Exceptional) by

Demotech, and a financial strength rating of “BBB+” with a stable outlook from the Kroll Bond Rating Agency, LLC.

Additionally, the Company maintains a BB+ issuer rating, with a stable outlook, from the Kroll Bond Rating Agency, LLC.

We generate revenue primarily from insurance premiums earned, net of reinsurance ceded. We also generate revenue from

policy fees, installment income fees, income generated through the investment of our assets, and realized gains or losses on

the sale of our invested assets. Our financial results are highly seasonal due to the occurrence of hurricanes and tropical

storms typically between June 1st and November 30th of each year in Florida and the other states in which we operate. Our

reinsurance purchasing, including our catastrophe excess of loss reinsurance coverages, which commence on June 1st

annually, also materially influences our financial results and are impacted by changes in reinsurance rates or alterations in

terms and conditions, including in attachment or loss retention levels.

Key Factors Affecting Our Results of Operations and Comparability Between Periods

Florida Trends. Prior to the legislative reforms passed in December 2022, the legal and regulatory environment in Florida

posed significant challenges for property and casualty insurers, particularly due to excessive litigation and aggressive

claims practices relating to issues such as assignment of benefits abuse, extended statute of limitations, and attorney fee

multipliers, which led to disproportionately high litigation rates in Florida relative to other geographies. These factors

increased claims costs and reinsurance expenses, impacting the profitability of insurers operating in Florida. Recent

legislative changes, however, have improved operating conditions in the Florida insurance market, including a reduction in

claims litigation activity since the reforms were enacted in December 2022. We believe these legislative reforms provide

greater opportunities for us to profitably underwrite residential property insurance in Florida.

Citizens “Take-out” Program. Pursuing take-outs from Citizens Property Insurance Corporation (“Citizens”) may distort

the comparability of our financial results between periods depending on the number of policies and unearned premiums

assumed. In 2026, we expect take-outs to be a smaller portion of our gross premiums written compared to 2024 and 2025.

While we expect there will continue to be opportunities to assume some policies from Citizens, we believe the number of

policies available that meet our underwriting and profitability standards has declined and may continue to decline over

time. Policies assumed via the Citizens take-out program carry immaterial upfront acquisition costs and are covered by our

current treaty year reinsurance program which may impact comparability between periods. As a result, periods of heavy

take-out activity result in lower expense ratios and loss ratios.


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Changing Climate Conditions. Over the past two decades, the increasing frequency and severity of severe weather events

have highlighted the unpredictable nature of climate trends. Climate change has the potential to influence the occurrence

and intensity of natural disasters, including convective storms, hurricanes, tornadoes, hailstorms, severe winter storms, and

flooding, among others. This unpredictability creates challenges in assessing future risks and exposures.

We continuously monitor climate data and collaborate with climate change and catastrophe modeling experts to refine our

risk assessment models, enhancing our preparedness for evolving climate-related challenges.

Seasonality of our Business. Our business is seasonal as hurricanes and other named storms typically occur in the

geographies where we operate between June 1st and November 30th of each year. This may result in significant variability

in our losses and loss adjustment expenses (“LAE”) depending on the number, location and strength of hurricanes and

other named storms during these months as compared to other months. In addition, because our catastrophe reinsurance

program renews on June 1st each year, the ceded premiums written recorded in the second quarter are typically

substantially higher than any other quarter during a fiscal year. In some instances, this will cause our reported net

premiums written to be negative (or substantially lower than other quarters) in the second quarter of each year.

Inflation. We may be adversely affected during periods of high inflation, primarily because of increased labor and material

costs, which could cause claims and claim expenses to increase. This has been evident since the COVID-19 pandemic in

early 2020. In addition, periods of high inflation can lead to periods of high interest rates, which may impact the

performance of our investment portfolios. The impact of inflation on our results cannot be known with any certainty;

however, we revise our reserves for unpaid losses as additional information becomes available, and reflect adjustments to

our reserves, if any, in our earnings in the periods in which we determine the adjustments are necessary. We monitor

inflation trends and factor them into the pricing of our new business and renewal policies.

Cost and Availability of Reinsurance. We purchase excess of loss and quota share reinsurance as part of our capital

management strategy and in an effort to reduce volatility of earnings and protect our balance sheet from the impact of

potential catastrophe events. Our ability to implement an effective reinsurance strategy is dependent, in part, on the cost

and availability of reinsurance coverage. We ceded 60.5% and 69.7% of our gross premiums earned in the six months

ended June 30, 2026 and June 30, 2025, respectively.

Quota share. Effective January 1, 2026, we reduced the percentage of our ceding commission on our quota share

reinsurance treaty from 40% to 25%, which impacted the comparability of our results between periods. A lower ceding

commission increases the amount of premiums we retain on policies we write, and the reduction in the ceding commission

on our quota share reinsurance treaty also reduces the amount reimbursed by reinsurers pursuant to the treaty, which

increases policy acquisition expenses and general and administrative expenses.

Initial Public Offering and Corporate Contribution

On May 9, 2025, we completed our initial public offering (the “IPO”) of an aggregate of 6,875,000 shares of the

Company’s common stock, par value $0.001 per share (the “Common Stock”), at a price to the public of $16.00 per share,

6,250,000 of which shares were sold by the Company and 625,000 of which shares were sold by certain selling

stockholders. The gross proceeds to us from the IPO were $100 million, and gross proceeds to the selling stockholders

from the IPO were $10 million, before deducting underwriting discounts and commissions and estimated offering

expenses. On May 13, 2025, the underwriters completed the exercise of their option to purchase an additional 1,031,250

shares of Common Stock from the selling stockholders resulting in an additional $16.5 million in gross proceeds to the

selling stockholders, before deducting underwriting discounts and commissions. We did not receive any gross proceeds

from the sales of shares of Common Stock by the selling stockholders. In connection with our IPO, we effected a net

issuance of 417,470 shares of restricted stock to certain of our employees and consultants (the “Restricted Stock Grant”)

after giving effect to the withholding of approximately 234,587 shares of Common Stock to satisfy the estimated tax

withholding and remittance obligations (the “Restricted Stock Grant Net Settlement”). We incurred a one-time share-based

compensation expense of $10.4 million in connection with the Restricted Stock Grant and paid $3.8 million in connection

with the Restricted Stock Grant Net Settlement. The compensation expense for these awards was recognized in the second

quarter of 2025. Immediately prior to the IPO, the owners of the equity interests of American Integrity Insurance Group,

LLC (“AIIG”) contributed all of their equity interests to the Company in exchange for an aggregate of 12,904,495 shares of

Common Stock.


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Results of Operations

The following table summarizes our results of operations for the three and six months ended June 30, 2026 and 2025:


	Three Months Ended June 30,		Six Months Ended June 30,
($ in thousands, except per share data)	2026	2025	2026	2025
Gross premiums written	$326,592	$286,995	$546,596	$499,145
Change in gross unearned premiums	(84,341)	(63,255)	(73,573)	(65,249)
Gross premiums earned	242,251	223,740	473,023	433,896
Ceded premiums earned	(137,555)	(157,571)	(286,119)	(302,325)
Net premiums earned	104,696	66,169	186,904	131,571
Policy fees	3,711	2,967	6,456	5,171
Net investment income	6,250	4,780	11,902	8,883
Net realized gains (losses) on investments	(2)	485	51	501
Other income	516	98	789	259
Total Revenues	115,171	74,499	206,102	146,385
Losses and loss adjustment expenses	33,151	21,189	64,876	42,051
Policy acquisition expenses	17,410	6,281	33,395	9,388
General and administrative expenses	18,186	22,932	34,152	27,940
Total Expenses	68,747	50,402	132,423	79,379
Income before taxes	46,424	24,097	73,679	67,006
Income tax (benefit) expense	12,278	(3,397)	19,623	1,416
Net Income	$34,146	$27,494	$54,056	$65,590
Book value per share(1)	$18.86	$15.42	$18.86	$15.42
Loss ratio(2)	30.6%	30.6%	33.6%	30.8%
Expense ratio(3)	32.8%	42.3%	34.9%	27.3%
Combined ratio(4)	63.4%	72.9%	68.5%	58.1%
Return on equity(5)	38.7%	45.1%	30.6%	56.5%
Ceded catastrophe excess of loss premiums ratio(6)	39.4%	42.2%	42.9%	41.8%
Net underlying loss and loss adjustment expense ratio(7)	30.6%	33.1%	33.6%	31.6%
Gross underlying loss and loss adjustment expense ratio(8)	18.1%	15.5%	18.6%	15.8%

(1)Book value per share is a key financial metric and is the ratio of shareholders’ equity to shares outstanding, each as of the balance

sheet date.

(2)Loss ratio is a key business metric and is the ratio of losses and LAE to net premiums earned plus policy fees. Management uses

this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our

other operating expenses.

(3)Expense ratio is a key business metric and is the ratio of policy acquisition expenses and general and administrative expenses to net

premiums earned plus policy fees. Management uses this metric to analyze our expense trends and believes it is useful for investors

to evaluate these components separately from our loss and LAE.

(4)Combined ratio is a key business metric, defined as the sum of the loss ratio and the expense ratio. Management uses this operating

metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of

our business.

(5)Return on equity is a key business metric, defined as net income divided by the average beginning and ending shareholders’ equity

during the applicable period. This metric is annualized for interim periods by multiplying by the applicable ratio in order to present

return on equity consistently.

(6)Ceded catastrophe excess of loss premiums ratio is a key business metric and a non-GAAP measure defined as ceded catastrophe

excess of loss premiums earned divided by gross premiums earned. We view this ratio as meaningful to our business as it provides a

view into the cost of our catastrophe reinsurance program. The most directly comparable GAAP financial measure is the ratio of

ceded premiums earned to gross premiums earned. The ceded catastrophe excess of loss premiums ratio should not be considered a

substitute for ceded premiums earned and does not reflect the overall profitability of our business.


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(7)Net underlying loss and loss adjustment expense ratio is a key business metric and a non-GAAP measure defined as the ratio of loss

and LAE, net, less current year net catastrophe losses and net prior year reserve development divided by net premiums earned plus

policy fees. We view this ratio as meaningful to our business as it allows us to analyze our loss trends before the impact of

catastrophe losses and prior year reserve development. The most directly comparable GAAP measure is the loss ratio. The net

underlying loss and LAE ratio should not be considered a substitute for the loss ratio and does not reflect the overall profitability of

our business.

(8)Gross underlying loss and loss adjustment expense ratio is a key business metric and a non-GAAP measure defined as the ratio of

net underlying loss and LAE plus ceded non-catastrophe losses divided by total gross premiums earned and policy fees. We view

this ratio as meaningful to our business as it allows us to analyze our loss trends before the impact of reinsurance and to evaluate the

cost of non-catastrophe losses for every dollar of gross premiums earned. The most directly comparable GAAP measure is the loss

ratio. The gross underlying loss and LAE ratio should not be considered a substitute for the loss ratio and does not reflect the overall

profitability of our business.

Policies In-Force

Policies in-force represents the number of active insurance policies with coverage in effect as of the end of the period

referenced.

In-force premium represents the annual premium for active insurance policies with coverage in effect as of the end of the

period referenced. Our geographic diversification strategy, including expansion into states such as South Carolina, Georgia,

and North Carolina, has generally resulted in lower average premiums compared to Florida due to our view on the

appropriate amount to charge for the risk we underwrite.

The following table shows our policies in-force and in-force premium by product as of June 30, 2026 and June 30, 2025:


	As of June 30,
	2026		2025
($ in thousands)	Policies in-force	In-force premium	Policies in-force	In-force premium
HO-3	308,013	$690,810	257,601	$605,856
HO-4	4,225	1,091	3,793	1,047
HO-5	11,684	14,675	3,080	3,226
HO-6	16,238	27,530	15,264	27,614
MH	5,436	18,222	6,376	21,551
DP-1 (Including vacant)	26,901	63,785	27,380	64,251
DP-3	75,902	187,201	74,848	192,179
Commercial	278	18,632	—	—
Watercraft	4,169	6,042	3,627	4,435
Golf Cart	8,868	1,398	7,169	1,093
Total	461,714	$1,029,386	399,138	$921,252


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The following table shows our policies in-force and in-force premiums by county as of June 30, 2026 and June 30, 2025:


	As of June 30,
($ in thousands)	2026		2025
County	Policies in-force	In-force premium	Policies in-force	In-force premium
POLK	29,613	$51,163	25,033	$46,055
ORANGE	27,787	60,747	25,622	56,616
LEE	24,776	64,650	26,201	71,174
DUVAL	24,660	39,383	22,275	37,717
HILLSBOROUGH	21,617	51,898	20,664	49,795
OSCEOLA	21,937	43,196	18,902	39,764
PASCO	21,193	44,315	19,028	38,674
PALM BEACH	21,007	88,326	19,199	76,617
MARION	18,471	24,957	16,063	23,864
BREVARD	15,107	38,230	13,878	34,395
VOLUSIA	14,855	29,997	13,087	27,623
OTHERS	220,691	492,524	179,186	418,958
Total	461,714	$1,029,386	399,138	$921,252

Policies in-force were 461,714 as of June 30, 2026, an increase of 15.7% compared to policies in-force of 399,138 as of

June 30, 2025, and an increase of 5.6% compared to policies in-force of 437,308 as of March 31, 2026. The increase in our

policies in-force was primarily due to new policies written through the Voluntary Market and the 2025 Citizens take-outs.

During the three months ended June 30, 2026, we wrote 42,863 policies in the Voluntary Market, which was an increase of

15,077 compared to 27,786 new policies written in the Voluntary Market during the three months ended June 30, 2025. We

experienced policy retention rates of 84.4% during the second quarter of 2026, up from 81.5% during the second quarter of

2025 and up from 83.6% during the first quarter of 2026.

The following table shows our policies in-force and in-force premium by source:


($ in thousands)	Policies In-Force	In-Force Premium
As of June 30, 2026
Voluntary Market	373,260	$753,446
Citizens Legacy Take-Outs(1)	5,096	20,894
Citizens Take-Outs(2)(3)(4)(5)	76,988	232,262
FY 2025 Citizens Take-Outs(4)(6)	5,740	20,352
FY 2026 Citizens Take-Outs(5)(6)	630	2,432
Total	461,714	$1,029,386

(1)Reflects policies assumed from Citizens in or prior to 2014 that have since been renewed directly with the Company.

The Company did not conduct any take-outs in the years 2015 through 2023.

(2)Reflects policies assumed from Citizens in 2024 and 2025 that have since renewed directly with the Company.

(3)There were 68,844 policies assumed from Citizens during 2024; and 53,831 policies, or 78.2%, were still in-force as of

June 30, 2026.

(4)There were 33,861 policies assumed from Citizens during 2025; and 28,887 policies, or 85.3%, were still in-force as of

June 30, 2026.

(5)There were 665 policies assumed from Citizens during the six months ended June 30, 2026; and 641 policies, or

96.4%, were still in-force as of June 30, 2026.

(6)Reflects policies assumed from Citizens during the stated calendar year that have less than a year remaining under

their current Citizens policy and will be offered a renewal policy with the Company upon expiration.


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Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

Revenues

Gross premiums written increased by $39.6 million, or 13.8%, to $326.6 million for the three months ended June 30, 2026,

compared to $287.0 million for the three months ended June 30, 2025. The increase was primarily driven by growth in our

Voluntary Market writings.

Gross premiums earned increased to $242.3 million for the three months ended June 30, 2026, from $223.7 million for the

three months ended June 30, 2025. The $18.6 million, or 8.3%, increase was due largely to our increase in gross premiums

written.

Ceded premiums earned decreased $20.0 million, or 12.7%, to $137.6 million for the three months ended June 30, 2026,

from $157.6 million for the three months ended June 30, 2025. The decrease in ceded premiums earned was primarily due

to the reduction in our non-catastrophe quota share reinsurance arrangement.

Net premiums earned grew by $38.5 million, or 58.2%, reaching $104.7 million for the three months ended June 30, 2026,

up from $66.2 million for the three months ended June 30, 2025. This increase was due largely to the increase in gross

premiums earned and the decrease in ceded premiums earned.

Policy fees increased $0.7 million, or 25.1%, to $3.7 million for the three months ended June 30, 2026, from $3.0 million

for the three months ended June 30, 2025. The increase in policies written during the three months ended June 30, 2026

contributed to the increase in policy fees.

Net investment income increased $1.4 million, or 30.8%, to $6.2 million for the three months ended June 30, 2026 from

$4.8 million for the three months ended June 30, 2025. The increase in net investment income was due to an increase in

invested assets driven by the increased in-force premiums and the proceeds from our IPO.

Sales of available-for-sale securities resulted in net realized investment loss of $2,431 for the three months ended June 30,

2026 and net realized investment gains of $0.5 million for the three months ended June 30, 2025.

Other income was $0.5 million for the three months ended June 30, 2026, an increase of $0.4 million from $0.1 million for

the three months ended June 30, 2025.

Expenses

Losses and LAE increased $12.0 million, or 56.5%, to $33.2 million for the three months ended June 30, 2026 from $21.2

million for the three months ended June 30, 2025. The increase in losses and LAE was primarily driven by higher net

premiums earned and the reduction of our non-catastrophe quota share reinsurance arrangement from 40% to 25% on

January 1, 2026.

Policy acquisition expenses increased $11.1 million, or 177.2%, to $17.4 million for the three months ended June 30, 2026

from $6.3 million for the three months ended June 30, 2025. The increase was primarily driven by the increase in policies

written during the three months ended June 30, 2026, less ceding commission due to the reduction in our non-catastrophe

quota share reinsurance arrangement from 40% to 25% on January 1, 2026, and the second quarter of 2025 being heavily

impacted by the benefits of Citizens take-outs, which carry immaterial upfront policy acquisition expenses.

General and administrative expenses decreased $4.7 million, or 20.7%, to $18.2 million for the three months ended June

30, 2026 from $22.9 million for the three months ended June 30, 2025. The decrease was primarily driven by the absence

of one-time IPO related expenses incurred during the three months ended June 30, 2025.

Income tax (benefit) expense was $12.3 million and $(3.4) million for the three months ended June 30, 2026 and 2025,

respectively. Our effective tax rate for the three months ended June 30, 2026 and 2025 was 26.4% and (14.1)%,

respectively. The increase in the effective tax rate was primarily due to the absence of discrete tax benefits recognized in

the prior year period incurred in connection with the IPO. For the three months ended June 30, 2026, our effective tax rate

differed from the U.S. federal statutory rate of 21% primarily due to state income taxes.


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Key Business Metrics and Ratios

Loss ratio

Loss ratio is the ratio of losses and LAE to net premiums earned plus policy fees. We add policy fees to net premiums

earned when calculating our loss and expense ratios to include the total revenue produced by a policy, given they are

earned when a policy is written. Our loss ratio remained unchanged at 30.6% for the three months ended June 30, 2026 and

2025. The loss ratio reflects the impact of the Citizens take-out windfall on net premiums earned for the three months

ended June 30, 2025 and no prior year reserve development for the three months ended June 30, 2026.

Expense ratio

Expense ratio is the ratio of policy acquisition expenses and general and administrative expenses to net premiums earned

plus policy fees. Our expense ratio decreased by 9.5 percentage points to 32.8% for the three months ended June 30, 2026

compared to 42.3% for the three months ended June 30, 2025, driven by the absence of one-time IPO related expenses

incurred during the three months ended June 30, 2025 and partially offset by the absence of Citizens take-out windfalls in

the second quarter of 2026 compared to the second quarter of 2025.

Combined ratio

Combined ratio is the sum of the loss ratio and the expense ratio. We utilize combined ratio to assess our underwriting

performance. A combined ratio below 100% indicates an underwriting profit, while a combined ratio exceeding 100%

indicates an underwriting loss. Our combined ratio decreased to 63.4% for the three months ended June 30, 2026 from

72.9% for the three months ended June 30, 2025 due to the decrease in our expense ratio.

Return on equity

Return on equity is defined as net income, divided by the average beginning and ending shareholders’ equity during the

applicable period. This metric is annualized for interim periods by multiplying by the applicable ratio in order to present

return on equity consistently. Our return on equity decreased to 38.7% for the three months ended June 30, 2026 from

45.1% for the three months ended June 30, 2025. The decrease in return on equity was primarily due to the increase in

average shareholders’ equity following the IPO, which resulted in a larger equity base compared to the prior period.

Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025

Revenues

Gross premiums written increased by $47.5 million, or 9.5%, to $546.6 million for the six months ended June 30, 2026,

compared to $499.1 million for the six months ended June 30, 2025. The increase was primarily driven by growth in our

Voluntary Market writings.

Gross premiums earned increased to $473.0 million for the six months ended June 30, 2026, from $433.9 million for the

six months ended June 30, 2025. The $39.1 million, or 9.0%, increase was due largely to our increase in gross premiums

written.

Ceded premiums earned decreased $16.2 million, or 5.4%, to $286.1 million for the six months ended June 30, 2026, from

$302.3 million for the six months ended June 30, 2025. The decrease in ceded premiums earned was primarily due to the

reduction in our non-catastrophe quota share reinsurance arrangement.

Net premiums earned grew by $55.3 million, or 42.1%, reaching $186.9 million for the six months ended June 30, 2026, up

from $131.6 million for the six months ended June 30, 2025. This increase was due largely to the increase in gross

premiums earned and the decrease in ceded premiums earned.

Policy fees increased $1.3 million, or 24.9%, to $6.5 million for the six months ended June 30, 2026 from $5.2 million for

the six months ended June 30, 2025. The increase in policies written during the six months ended June 30, 2026

contributed to the increase in policy fees.

Net investment income increased $3.0 million, or 34.0%, to $11.9 million for the six months ended June 30, 2026 from

$8.9 million for the six months ended June 30, 2025. The increase in net investment income was due to an increase in

invested assets driven by the increased in-force premiums and the proceeds from our IPO.


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Sales of available-for-sale securities resulted in net realized investment gains of $50,704 for the six months ended June 30,

2026 and net realized investment gains of $0.5 million for the six months ended June 30, 2025.

Other income was $0.8 million for the six months ended June 30, 2026, an increase of $0.5 million from $0.3 million for

the six months ended June 30, 2025.

Expenses

Losses and LAE increased $22.8 million, or 54.3%, to $64.9 million for the six months ended June 30, 2026 from $42.1

million for the six months ended June 30, 2025. The increase in losses and LAE was primarily driven by higher net

premiums earned and a reduction of our non-catastrophe quota share reinsurance arrangement from 40% to 25% on

January 1, 2026.

Policy acquisition expenses increased $24.0 million, or 255.7%, to $33.4 million for the six months ended June 30, 2026

from $9.4 million for the six months ended June 30, 2025. The increase was primarily driven by the increase in policies

written during the six months ended June 30, 2026, the windfall from Citizens take-outs during the six months ended June

30, 2025, and less ceding commission due to the reduction in our non-catastrophe quota share reinsurance arrangement

from 40% to 25% on January 1, 2026.

General and administrative expenses increased $6.3 million, or 22.2%, to $34.2 million for the six months ended June 30,

2026 from $27.9 million for the six months ended June 30, 2025. The increase was primarily driven by lower ceding

commissions associated with a reduction in our non-catastrophe quota share reinsurance arrangement from 40% to 25% on

January 1, 2026, partially offset by the absence of one-time IPO related expenses incurred during the six months ended

June 30, 2025.

Income tax expense was $19.6 million and $1.4 million for the six months ended June 30, 2026 and 2025, respectively. Our

effective tax rate for the six months ended June 30, 2026 and 2025 was 26.6% and 2.1%, respectively. The increase in the

effective tax rate was primarily due to the absence of discrete tax benefits recognized in the prior year period, as the 2025

period included a $24 million pretax income adjustment related to non-taxable entities that resulted in $5.0 million of

discrete tax benefits. For the six months ended June 30, 2026, our effective tax rate differed from the U.S. federal statutory

rate of 21% primarily due to state income taxes.

Key Business Metrics and Ratios

Loss ratio

Our loss ratio increased by 2.8 percentage points for the six months ended June 30, 2026, to 33.6%, compared to 30.8% for

the six months ended June 30, 2025. The increase in the loss ratio reflects primarily the impact of the Citizens take-out

windfall on net premiums earned for the six months ended June 30, 2025.

Expense ratio

Our expense ratio increased by 7.6 percentage points to 34.9% for the six months ended June 30, 2026 compared to 27.3%

for the six months ended June 30, 2025, driven by the increase in policies written during the six months ended June 30,

2026, the Citizens take-out windfall for the six months ended June 30, 2025, and less ceding commission due to the

reduction in our non-catastrophe quota share reinsurance arrangement from 40% to 25% on January 1, 2026.

Combined ratio

Our combined ratio increased to 68.5% for the six months ended June 30, 2026 from 58.1% for the six months ended June

30, 2025 due to the increases in our expense ratio and loss ratio.

Return on equity

Our return on equity decreased to 30.6% for the six months ended June 30, 2026 from 56.5% for the six months ended June

30, 2025. The decrease in return on equity was primarily due to the increase in average shareholders’ equity following the

IPO, which resulted in a larger equity base compared to the prior period and the lack of Citizens take-out windfalls.


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Non-GAAP Financial Measures

We utilize certain non-GAAP financial measures to analyze our business and provide useful information about our

financial performance. The non-GAAP financial measures are not recognized terms under GAAP and should not be

considered as alternatives to the corresponding GAAP measures of financial performance, or any other performance

measure derived in accordance with GAAP. Because not all companies use identical calculations, the presentation of the

non-GAAP financial measures may not be comparable to other similarly titled measures of other companies and can differ

significantly from company to company. Our management uses these non-GAAP financial measures, in conjunction with

GAAP financial measures, as an integral part of managing our business and to, among other things: (i) monitor and

evaluate the performance of our business operations and financial performance; (ii) facilitate internal comparisons of the

historical operating performance of our business operations; (iii) facilitate external comparisons of the results of our overall

business to the historical operating performance of other companies that may have different capital structures and debt

levels and different go-to-market models; (iv) review and assess the operating performance of our management team; (v)

analyze and evaluate financial and strategic planning decisions regarding future operating investments; and (vi) plan for

and prepare future annual operating budgets and determine appropriate levels of operating investments.

We monitor the following key business metrics and non-GAAP financial measures that assist us in evaluating our business,

measuring our performance, identifying trends and making strategic decisions. As such, we have presented the following

non-GAAP measures, their most directly comparable GAAP measure, and key business metrics:


Non-GAAP Measure		Comparable GAAP Measure
Underwriting income (loss)		Income before taxes
Adjusted net income		Net income
Adjusted earnings per share		Earnings per share
Adjusted return on equity		Return on equity
Net underlying loss and loss adjustment expense ratio		Losses and loss adjustment expense ratio
Gross underlying loss and loss adjustment expense ratio		Losses and loss adjustment expense ratio
Ceded catastrophe excess of loss premiums ratio		Ceded premiums earned to gross premiums earned

Underwriting income (loss)

Underwriting income (loss) is a non-GAAP financial measure defined as income (loss) before income taxes, excluding net

investment income, net realized gains and losses on investments, interest expense, and other income. We use underwriting

income as an internal performance measure in the management of our operations because we believe it gives us and users

of our financial information useful insight into our results of operations and our underlying business performance and

provides insight into the results of how effective our policy underwriting is. Underwriting income (loss) should not be

viewed as a substitute for net income calculated in accordance with GAAP and other companies may define underwriting

income differently.

Underwriting income increased by $20.9 million, or 111.7%, to $39.7 million for the three months ended June 30, 2026

from $18.7 million for the three months ended June 30, 2025. The increase was primarily driven by growth in the

Voluntary Market reflecting higher earned premiums from new and renewal policies, the reduction in our non-catastrophe

quota share reinsurance arrangement and the absence of meaningful one-time IPO related expenses that were incurred in

the second quarter of 2025. For the six months ended June 30, 2026, underwriting income increased by $3.6 million, or

6.2%, to $60.9 million from $57.4 million for the six months ended June 30, 2025. The increase was primarily driven by

higher earned premium from growth in the Voluntary Market, partially offset by a lack of Citizens take-out windfall.


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Underwriting income for the three and six months ended June 30, 2026 and 2025 reconciles to income before taxes as

follows:


	Three Months Ended June 30,		Six Months Ended June 30,
($ in thousands)	2026	2025	2026	2025
Income before taxes	$46,424	$24,097	$73,679	$67,006
Less:
Net investment income	6,250	4,780	11,902	8,883
Net realized gains (losses) on investments	(2)	485	51	501
Other income	516	98	789	259
Underwriting income	$39,660	$18,734	$60,937	$57,363

Adjusted net income and Adjusted earnings per share

Adjusted net income is a non-GAAP financial measure defined as net income excluding net realized gains or losses on

investments, stock compensation expense incurred in connection with our IPO, and certain non-recurring or non-cash

expenses, including those incurred in connection with our IPO, net of tax. We use adjusted net income as an internal

performance measure in the management of our operations because we believe it gives us and users of our financial

information useful insight into our results of operations and our underlying business performance excluding the impact of

realized gains and losses on the sale of securities, and one-time items, which we do not view as core to the underlying

trends in our business. Adjusted net income should not be viewed as a substitute for net income calculated in accordance

with GAAP, and other companies may define adjusted net income differently.

For the three months ended June 30, 2026, adjusted net income increased by $3.6 million, or 11.4%, to $34.9 million from

$31.3 million for the three months ended June 30, 2025. The increase was primarily driven by higher earned premium,

partially offset by the absence of Citizens take-out windfall for the three months ended June 30, 2025. For the six months

ended June 30, 2026, adjusted net income decreased by $14.6 million, or 21.1%, to $54.7 million from $69.4 million for

the six months ended June 30, 2025. The decrease was primarily due to the tax benefits and Citizens take-out windfall, for

the six months ended June 30, 2025, partially offset by higher earned premium for the six months ended June 30, 2026.

Adjusted earnings per share is a non-GAAP measure, which is calculated as adjusted net income available to common

shareholders divided by weighted average diluted common shares outstanding. Management believes this metric is

meaningful, as it allows investors to evaluate underlying profitability and enhances comparability across periods by

excluding items that are heavily impacted by investment market fluctuations and other economic factors and are not

indicative of operating trends.


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Adjusted net income and adjusted earnings per share for the three and six months ended June 30, 2026 and 2025 reconcile

to net income and earnings per share, respectively, as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
($ in thousands, except per share data)	2026	2025	2026	2025
Net Income	$34,146	$27,494	$54,056	$65,590
Add:
Stock compensation(1)(5)	—	10,433	—	10,433
Termination of MSA(1)	—	3,000	—	3,000
One-time IPO expenses(1)	—	1,654	—	1,654
One-time bonus expenses(1)	—	1,387	—	1,387
Executive transition cost(1)(2)	920	—	920	—
Less:
Net realized gains (losses) on investments	(2)	485	51	501
Change in tax status(3)	—	9,722	—	9,722
Tax effect(4)(5)	194	2,467	183	2,464
Adjusted net income	$34,874	$31,294	$54,742	$69,377
Adjusted income allocated to participating securities	—	—	—	2,190
Numerator:
Adjusted net income available for common shareholders	$34,874	$31,294	$54,742	$67,187
Denominator:
Weighted average common shares outstanding:
Basic	19,586,994	16,962,075	19,583,036	15,152,075
Diluted	19,590,448	16,962,075	19,584,870	15,152,075
Earnings per share:
Basic	$1.74	$1.62	$2.76	$4.18
Diluted	$1.74	$1.62	$2.76	$4.18
Adjusted earnings per share:
Basic	$1.78	$1.84	$2.80	$4.43
Diluted	$1.78	$1.84	$2.80	$4.43

(1)Material non-recurring items that we do not expect to continue in the future and believe are not reflective of our ongoing operations

and our performance.

(2)Costs associated with the change in a key executive leadership position.

(3)The change in tax status of the Company from a non-taxable entity to a taxable corporation incurred in connection with the IPO

resulted in recognition of a deferred income tax benefit.

(4)We included the tax impact of all adjustments to adjusted net income using the U.S. federal statutory corporate tax rate of 21%.

While the Company’s actual effective tax rates for the three months ended June 30, 2026 and 2025 were 26.4% and (14.1)%,

respectively, and for the six months ended June 30, 2026 and 2025 were 26.6% and 2.1%, respectively, the use of the statutory rate

provides a consistent and simplified approach for comparability. This approach is applied uniformly, including to items that may be

partially or fully nondeductible for tax purposes. The tax effect row is presented exclusive of the change in tax status impact.

(5)Stock-based compensation expense recognized of $10,433 for the three and six months ended June 30, 2025, approximately $4,241

was nondeductible for U.S. federal income tax purposes.

Adjusted return on equity

Adjusted return on equity is a non-GAAP financial measure defined as adjusted net income divided by the average of

beginning and ending shareholders’ equity during the applicable period and is annualized for periods of less than one year.

We use adjusted return on equity as an internal performance measure in the management of our operations because we

believe it gives us and users of our financial information useful insight into our underlying business performance. Adjusted


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return on equity should not be viewed as a substitute for any metrics calculated in accordance with GAAP, and other

companies may define adjusted return on equity differently.

Adjusted return on equity decreased by 11.7 percentage points to 39.6% for the three months ended June 30, 2026 from

51.3% for the three months ended June 30, 2025. Adjusted return on equity decreased by 28.8 percentage points, to 31.0%

for the six months ended June 30, 2026 from 59.8% for the six months ended June 30, 2025. The decrease in adjusted

return on equity was primarily due to the increase in average shareholders’ equity following the IPO, which resulted in a

larger equity base compared to the prior period and the absence of Citizens take-out windfall.

Adjusted return on equity for the three and six months ended June 30, 2026 and 2025 reconciles to return on equity as

follows:


	Three Months Ended June 30,		Six Months Ended June 30,
($ in thousands)	2026	2025	2026	2025
Net income	$34,146	$27,494	$54,056	$65,590
Average beginning and ending shareholders’ equity(1)	352,501	243,966	353,270	232,133
Return on equity	38.7%	45.1%	30.6%	56.5%
Adjusted net income (after tax)	$34,874	$31,294	$54,742	$69,377
Average shareholders’ equity	352,501	243,966	353,270	232,133
Adjusted return on equity(2)	39.6%	51.3%	31.0%	59.8%

(1)Average beginning and ending shareholders’ equity represents the average of shareholders’ equity at the beginning and end of the

period presented.

(2)Adjusted return on equity is the adjusted net income (after tax) divided by the average beginning and ending shareholders’ equity.

Net underlying loss and loss adjustment expense ratio

Net underlying loss and loss adjustment expense ratio is a non-GAAP measure. We calculate the net underlying loss and

loss adjustment expense ratio by subtracting current year net catastrophe losses and prior year net reserve development

from total net losses and LAE and dividing that amount by the sum of total net premiums earned plus policy fees. We use

the net underlying loss and LAE ratio to allow us to analyze our loss trends before the impact of catastrophe losses and

prior year reserve development. These two items can have a significant impact on our loss trends in a given period. We

believe it is useful for investors to evaluate these components both separately and in the aggregate when reviewing our

performance. The most directly comparable GAAP measure is the net loss and LAE ratio. The net underlying loss and LAE

ratio should not be considered a substitute for the net loss and LAE ratio and does not reflect the overall profitability of our

business.

We experienced no net prior year reserve development for the three months ended June 30, 2026 and favorable net prior

year development of $1.7 million for the three months ended June 30, 2025. We experienced no catastrophe losses for the

three months ended June 30, 2026 and for the three months ended June 30, 2025.

The net underlying loss and loss adjustment expense ratio decreased to 30.6% for the three months ended June 30, 2026

from 33.1% for the three months ended June 30, 2025. The decrease was primarily due to growth in net earned premium,

driven by reduced ceded earned premium, outpacing the increase in underlying losses. The prior period benefited from

favorable prior year development of $1.7 million recognized during the three months ended June 30, 2025.

We experienced no net prior year reserve development for the six months ended June 30, 2026 and favorable prior year

development of $1.1 million for the six months ended June 30, 2025.

The net underlying loss and loss adjustment expense ratio increased to 33.6% for the six months ended June 30, 2026 from

31.6% for the six months ended June 30, 2025, primarily due to higher net losses reflecting increased retention due to the

reduction in our non-catastrophe quota share reinsurance arrangement, partially offset by growth in net premiums earned.


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The following table summarizes the loss and LAE ratios and the net underlying loss and LAE ratios for the three and six

months ended June 30, 2026 and 2025:


	Three Months Ended June 30,		Six Months Ended June 30,
($ in thousands)	2026	2025	2026	2025
Total Net Premiums Earned	$104,696	$66,169	$186,904	$131,571
Plus: Policy Fees	3,711	2,967	6,456	5,171
Total Net Premiums Earned Plus Policy Fees	108,407	69,136	193,360	136,742
Losses and Loss Adjustment Expenses, Net	$33,151	$21,189	$64,876	$42,051
Loss and Loss Adjustment Expense Ratio (% Net Premiums Earned Plus Policy Fees)	30.6%	30.6%	33.6%	30.8%
Less:
Current Year Net Catastrophe Losses	—	—	—	—
Prior Year Net Reserve Development	—	(1,695)	—	(1,117)
Underlying Loss and Loss Adjustment Expenses, Net	$33,151	$22,884	$64,876	$43,168
Net Underlying Loss and Loss Adjustment Expense Ratio (% Net Premiums Earned Plus Policy Fees)	30.6%	33.1%	33.6%	31.6%

Gross underlying loss and loss adjustment expense ratio

Gross underlying loss and loss adjustment expense ratio is a non-GAAP measure. We calculate the gross underlying loss

and LAE ratio by adding net underlying loss and LAE and ceded non-catastrophe losses and dividing that amount by the

sum of total gross premiums earned and policy fees. We use the gross underlying loss and LAE ratio to analyze our loss

trends before the impact of reinsurance.

We believe it is useful for investors to evaluate the cost of non-catastrophe losses for every dollar of gross premiums

earned. The most comparable GAAP measure is the net loss and LAE ratio. The gross underlying loss and LAE ratio

should not be considered a substitute for net loss and LAE ratio and does not reflect the overall profitability of our

business.

The following table summarizes the gross underlying loss and LAE ratios for the three and six months ended June 30, 2026

and 2025:


	Three Months Ended June 30,		Six Months Ended June 30,
($ in thousands)	2026	2025	2026	2025
Total Gross Premiums Earned	$242,251	$223,740	$473,023	$433,896
Plus: Policy Fees	3,711	2,967	6,456	5,171
Total Gross Premiums Earned Plus Policy Fees	245,962	226,707	479,479	439,067
Losses and Loss Adjustment Expenses, Net	33,151	21,189	64,876	42,051
Less:
Current Year Net Catastrophe Losses	—	—	—	—
Prior Year Net Reserve Development	—	(1,695)	—	(1,117)
Underlying Loss and Loss Adjustment Expenses, Net	$33,151	$22,884	$64,876	$43,168
Add:
Ceded Non-Catastrophe Loss and Loss Adjustment Expense	11,443	12,356	24,205	26,376
Gross Underlying Loss and Loss Adjustment Expenses	$44,594	$35,240	$89,081	$69,544
Loss and Loss Adjustment Expense Ratio (% Net Premiums Earned Plus Policy Fees)	30.6%	30.6%	33.6%	30.8%
Gross Underlying Loss and Loss Adjustment Expense Ratio (% Gross Premiums Earned Plus Policy Fees)	18.1%	15.5%	18.6%	15.8%

Ceded catastrophe excess of loss premiums ratio

Ceded catastrophe excess of loss premiums ratio is a non-GAAP measure and is defined as ceded catastrophe excess of loss

premiums earned divided by gross premiums earned. We believe it is useful for investors to evaluate ceded catastrophe


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excess of loss premiums ratio as it provides a proxy for our cost of catastrophe reinsurance. The most directly comparable

GAAP measure is the ratio of ceded premiums earned to gross premiums earned. The ceded catastrophe excess of loss

premiums ratio should not be considered a substitute for ceded premiums earned and does not reflect the overall

profitability of our business.

Ceded catastrophe excess of loss premiums ratio decreased 2.8 percentage points, to 39.4% for the three months ended

June 30, 2026 from 42.2% for the three months ended June 30, 2025. This decrease was primarily driven by growth in our

gross premiums earned, which increased at a higher rate than ceded catastrophe excess of loss premium as well as some

end of treaty period adjustments on May 31, 2026.

Ceded catastrophe excess of loss premiums ratio increased 1.1 percentage points, to 42.9% for the six months ended June

30, 2026 from 41.8% for the six months ended June 30, 2025. This increase was primarily a result of the six months ended

June 30, 2025 having higher ceded premiums earned relative to gross premiums earned due to the windfall from Citizens

take-outs compared to the six months ended June 30, 2026 where this benefit was less pronounced.

The calculation of our ceded excess of loss premiums ratio for the three and six months ended June 30, 2026 and 2025 is

shown in the table below:


	Three Months Ended June 30,		Six Months Ended June 30,
($ in thousands)	2026	2025	2026	2025
Gross Premiums Earned	$242,251	$223,740	$473,023	$433,896
Total Ceded Premiums Earned	(137,555)	(157,571)	(286,119)	(302,325)
Less: NCQSR and other ancillary reinsurance treaties	(42,178)	(63,212)	(83,130)	(120,943)
Ceded Catastrophe Excess of Loss Premiums Earned	$(95,377)	$(94,359)	$(202,989)	$(181,382)
Ceded Catastrophe Excess of Loss Premiums Ratio	39.4%	42.2%	42.9%	41.8%

Liquidity and Capital Resources

Liquidity is a measure of a company’s ability to generate cash flows sufficient to meet the short-term and long-term cash

requirements of its business operations. Funds generated from operations have been sufficient to meet our current and long-

term liquidity requirements.

The liquidity of the Company, comprised of cash, cash equivalents and our liquid fixed income portfolios, fluctuates from

time to time. As of June 30, 2026, our liquidity totaled $688.2 million. A portion of that liquidity is not held at AIIC. The

total cash and cash equivalents not held at the insurance subsidiary was $136.5 million as of June 30, 2026. Our liquidity

framework is designed to support operational flexibility, ensuring we can fund claims obligations, capital expenditures, and

growth initiatives without reliance on external financing. In the event of a large loss event, we may utilize proceeds from

our investment portfolios as a source of liquidity to service claims.

On May 9, 2025, we consummated our IPO and received net proceeds of $82 million, after (i) deducting underwriting

discounts and commissions totaling $7.0 million as well as $4.2 million of other expenses related to the offering, (ii) using

approximately $3.8 million of the proceeds from the offering to satisfy the Restricted Stock Grant Net Settlement and (iii)

using $3.0 million of the proceeds of the offering to terminate the management services agreement by and between James

Sowell Company, L.P. and AIIG.

We maintain a disciplined capital management approach, balancing organic growth investments with stockholder return

considerations. Our capital resources include:

•Operating cash flow, which remains the primary source of funding for day-to-day operations and claim payments.

•Reinsurance arrangements, which provide financial resilience against catastrophe loss events.

•Potential strategic financing, including debt instruments or equity offerings, which may be considered to

accelerate expansion opportunities.

Future capital requirements will be driven by business growth, regulatory capital needs, and evolving market conditions.

Our goal is to optimize capital efficiency while maintaining a strong financial foundation for long-term success.


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The principal source of liquidity at the Company is from its subsidiaries, including fees paid by the insurance subsidiary,

AIIC, and dividends paid by other subsidiaries generated from, among other things, income earned on policy fees and fees

paid by AIIC to American Integrity MGA, LLC for general agency, inspections, agent commissions, general operating

expenses and claims adjusting services.

Future capital allocation decisions, including dividend distributions and share repurchases, will be determined by our Board

of Directors based on profitability trends, regulatory considerations, and long-term stockholder value objectives. We did

not declare or pay any dividends during 2025. On February 24, 2026, our Board of Directors declared a special cash

dividend of $1.02 per share of Common Stock payable on March 30, 2026 to stockholders of record at the close of business

on March 16, 2026. The aggregate amount of the payment made in connection with this special cash dividend was

approximately $20.0 million, and we paid such dividend using cash on hand.

While we currently intend to retain any future earnings for use in the operation of our business and have no plans to declare

or pay any additional cash dividends in the foreseeable future, our Board of Directors may, from time to time, reassess

whether to declare dividends in the future.

As discussed in Note 10 – “Regulatory Requirements and Restrictions” in the notes to our condensed consolidated financial

statements, there are limitations on the dividends a subsidiary may pay to its immediate parent company.

The maximum amount of dividends that can be paid by Florida insurance companies without prior approval of the Florida

Office of Insurance Regulation is subject to restrictions as referenced below and in Note 10 – “Regulatory Requirements

and Restrictions” in the notes to our condensed consolidated financial statements. Dividends from AIIC can only be paid

from accumulated unassigned funds derived from net operating profits and net realized capital gains. Subject to such

accumulated unassigned funds, the maximum dividend that may be paid by AIIC to the Company without prior approval is

further limited to the lesser of statutory net income from operations of the preceding calendar year or statutory unassigned

surplus as of the preceding year end. As of June 30, 2026, AIIC has not declared dividends.

Liquidity for AIIC is primarily required to cover payments for reinsurance premiums, claims payments including potential

payments of catastrophe losses (offset by recovery of any reimbursement amounts under our reinsurance agreements), fees

paid to affiliates for managing general agency services, claims adjusting services, premium and income taxes, regulatory

assessments, general operating expenses, and interest and principal payments on debt obligations. Principal sources of

liquidity for AIIC consist of the revenue generated from the collection of written premiums and the collection of

reinsurance recoverable.

Cash flows

Our most significant source of cash is from premiums received from our policyholders, which, for most policies, we

receive at the beginning of the coverage period, although some policyholders elect to pay in installments over the duration

of the policy. Our most significant cash outflow is for the cost of our reinsurance agreements in the form of ceded

premiums and for claims that arise when a policyholder incurs an insured loss. Because the payment of claims occurs after

the receipt of the premium, sometimes years later, we invest the cash in various investment securities that earn interest and

dividends. We also use cash to pay commissions to distribution partners, as well as to pay for ongoing operating expenses

such as salaries, professional services and taxes. As described under “Reinsurance” below, we use reinsurance to manage

the risk that we take on our policies. We cede, or pay out, part of the premiums we receive to our reinsurers and collect

cash back when losses subject to our reinsurance coverage are paid.

The timing of our cash flows from operating activities can vary among periods due to the timing by which payments are

made or received. Some of our payments and receipts, including loss settlements and subsequent reinsurance receipts, can

be significant, so their timing can influence cash flows from operating activities in any given period. Management believes

that cash receipts from premiums, proceeds from investment sales and redemptions and investment income are sufficient to

cover cash outflows for the foreseeable future.


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Our cash flows for the six months ended June 30, 2026 and 2025 were:


	Six Months Ended June 30,
($ in thousands)	2026	2025
Cash and cash equivalents (net) provided by: Operating activities	$129,843	$95,481
Cash and cash equivalents (net) used in: Investing activities	(9,793)	(59,869)
Cash and cash equivalents (net) provided by (used in): Financing activities	(20,297)	61,939
Net increase in cash and cash equivalents	$99,753	$97,551

Cash provided by operating activities was $129.8 million for the six months ended June 30, 2026 compared to $95.5

million provided by operating activities for the six months ended June 30, 2025. The increase in cash provided by operating

activities resulted from lower cash outflows related to reinsurance activity and loss payments.

Cash used in investing activities was $(9.8) million for the six months ended June 30, 2026 compared to $(59.9) million

used in investing activities for the six months ended June 30, 2025. The decrease in net cash used in investing activities

was primarily attributable to significantly lower purchases of fixed income securities, partially offset by proceeds of fixed

income securities and short-term investments during the period.

Net cash used in financing activities was $(20.3) million for the six months ended June 30, 2026 compared to $61.9 million

provided by financing activities for the six months ended June 30, 2025. Net cash used in financing activities in the current

year period was primarily attributable to the special cash dividend paid to stockholders during the period. Net cash

provided by financing activities in the prior-year period was primarily driven by the net proceeds from our IPO, partially

offset by distributions to members made prior to the completion of the IPO.

Capitalization

Capital resources provide protection for policyholders, furnish the financial strength to support the business of

underwriting insurance risks and facilitate continued business growth. The following table provides our shareholders’

equity, total long-term debt, total capital resources, debt-to-total capital ratio and debt-to-equity ratio as of June 30, 2026,

and December 31, 2025.


($ in thousands)	June 30, 2026	December 31, 2025
Shareholders’ equity	$369,519	$337,022
Long-term debt	412	618
Total capital resources	369,931	337,640
Debt-to-total capital ratio	0.1%	0.2%
Debt-to-equity ratio	0.1%	0.2%

The debt-to-total capital ratio is calculated as total long-term debt divided by total capital resources, whereas the debt-to-

equity ratio is calculated as total long-term debt divided by shareholders’ equity. These ratios help management measure

the amount of financing leverage in place in relation to equity and future leverage capacity.

Critical Accounting Estimates

In order to align with GAAP, preparing financial statements requires us to forecast future events through estimates and

assumptions. These projections, along with their underlying assumptions, significantly impact the reported values of assets

and liabilities, the disclosure of potential assets and liabilities, and the recorded figures for revenues and expenses. Among

the accounting estimates, the accounting estimates discussed below are those that demand judgment, where different

decisions could lead to substantial alterations in the reported outcomes. For a detailed discussion of our accounting

policies, see our notes to the condensed consolidated financial statements. Our current critical accounting policies and

estimates are:

Liability for unpaid losses and loss adjustment expenses

We set aside reserves, net of estimated subrogation, to provide for the estimated costs of paying losses and LAE under

insurance policies we issued. Liability for unpaid losses and LAE represent management’s best estimate of the ultimate


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cost of settling all outstanding claims, including claims that have been incurred, but not yet reported (“IBNR”) as of a

financial statement date. With the assistance of an independent, actuarial firm, we use statistical analysis to establish

liabilities for unpaid losses and LAE. We do not discount the liability for unpaid losses and LAE for financial statement

purposes. In establishing the liability for unpaid losses and LAE, actuarial judgment is relied upon in order to make

appropriate assumptions to estimate a best estimate of ultimate losses. Those estimates are based on our historical

information, industry information and estimates of trends that may affect the ultimate frequency of incurred but not

reported claims and changes in ultimate claims severity.

We regularly review our reserve estimates and adjust them as necessary as experience develops or as new information

becomes known to us. Such adjustments are included in current operations. During the loss settlement period, if we have

indications that claims frequency or severity exceeds our initial expectations, we generally increase our reserves for losses

and LAE. Conversely, when claims frequency and severity trends are more favorable than initially anticipated, we

generally reduce our reserves for losses and LAE once we have sufficient data to confirm the validity of the favorable

trends. Even after such adjustments, the ultimate liability may exceed or be less than the revised estimates. Accordingly,

the ultimate settlement of losses and the related LAE may vary significantly from the estimate included in our condensed

consolidated financial statements.

Reserving for reported claims relies on a detailed assessment of individual risks, understanding the specifics of each claim,

and considering the insurance policy terms related to the particular type of loss. Reserving for unreported claims and LAE

involves utilizing historical data per line of insurance adjusted to present circumstances. Typically, the reserving process

implicitly considers inflation by analyzing costs, trends, and reviewing historical reserving outcomes across several years.

The process of estimating the reserves for losses and LAE requires a high degree of judgment and is subject to several

variables. Reserve estimates for our ultimate liability are derived using several different actuarial estimation methods,

depending on the type of loss:

•Loss development method: The loss development method uses actual loss data and the historical development

profiles on older underwriting years to project more recent, less developed years to their ultimate position.

•Frequency/severity methods: These methods are similar to the paid and case incurred loss development methods

except that estimates of ultimate claim counts (a measure of claim frequency) and ultimate average severity are

derived separately and then multiplied together to provide an estimate of ultimate loss.

•Incremental cost per closed claim method: This method is similar to the frequency/severity method except that

paid severities are selected for each incremental development period, and then are trending using selected short-

term and long-term trend factors.

•Bornhuetter-Ferguson method: The Bornhuetter-Ferguson method uses as a starting point an assumed initial

expected loss ratio and blends in the loss ratio, which is implied by the claims experience to date using benchmark

loss development patterns on paid claims data or reported claims data.

•IBNR-to-case outstanding method: This method requires the estimation of consistent paid and reported (case)

incurred loss development patterns and age-to-ultimate factors. These patterns imply a specific expected

relationship between IBNR, including both development or known claims (bulk reserve) and losses on a true late

reported claims, and reported case incurred losses.

•DCC development methods: When DCC data is evaluated separately from losses, historical paid and case incurred

DCC data may be arranged in a triangular format and projected to ultimate using the same technique as used for

losses (i.e., loss development methods). In addition, projections using triangles of ratios of paid DCC-to-paid loss

and ratios of paid DCC-to-case incurred losses can be made; those triangles can be constructed using ratios of

incremental (e.g. annual) amounts, or ratios of cumulative amounts. Indications that result from projecting these

ratios must be multiplied by the ultimate loss selections to arrive at ultimate DCC indications. Similarly, triangles

of ratios of paid DCC-to-closed or reported claim counts can be used. The results from projecting these ratios will

require multiplication by ultimate claim count selections to arrive at ultimate DCC indications.


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Each actuarial methodology requires the selection and application of various parameters and assumptions. The key

parameters and assumptions include:

1)Loss development factors – These factors are key assumptions in the loss development methods which assume

recent accident years will follow the development patterns of prior accident years.

2)Initial expected loss ratio selections – The initial expected loss ratio selection is the key assumption in the

Bornhuetter-Ferguson methods. The selection was made based on average of development methods loss ratios and

selected loss ratio trend.

3)Claim count decay ratios – The decay ratio is the key assumption in the projection of ultimate claim counts for

catastrophe and non-catastrophe storms.

4)Short-term and long-term projected severity trends – These severity trends are the key assumption in projecting

severities for accident years in their future development periods.

Our reserves are driven by several important factors, including litigation and regulatory trends, legislative activity, climate

change, social and economic patterns and claims inflation assumptions. Our reserve estimates reflect current inflation in

legal claims’ settlements and assume we will not be subject to losses from significant new legal liability theories. Our

reserve estimates assume that there will not be significant changes in the regulatory and legislative environment. The

impact of potential changes in the regulatory or legislative environment is difficult to quantify in the absence of specific,

significant new regulation or legislation. In the event of significant new regulation or legislation, we will attempt to

quantify its impact on our business, but no assurance can be given that our attempt to quantify such inputs will be accurate

or successful.

Our financial status, reported outcomes, and liquidity are susceptible to shifts in critical assumptions determining our loss

reserves. While we do not anticipate changes in claim frequency to significantly impact our reserves, fluctuations in the

severity of claims could influence these reserves.

These amounts fell within the range of total reserves provided by our independent actuary. As of June 30, 2026, we

recorded $12.1 million in case reserves and an additional $242.1 million for IBNR reserves, totaling $254.2 million in

reserves, with an added $247.9 million attributable to reinsurance claims payable.

For further detail, see Note 8 – “Liability for Unpaid Losses and Loss Adjustment Expenses” in our notes to the condensed

consolidated financial statements.

Reinsurance

We follow industry standards by reinsuring a portion of our risks. Reinsurance involves transferring, or “ceding,” a share of

the risk exposure from the policies we write to another insurer, known as a reinsurer. If our reinsurers are unable to fulfill

their obligations under our reinsurance agreements, we remain accountable for the entire insured loss.

In cases where losses fall within our reinsurance coverage, we document recoverable amounts from our reinsurers for paid

losses and an estimation of recoverable amounts on unpaid losses. The reinsurance recoverables on unpaid losses are

estimated in a manner consistent with the Company’s estimate of unpaid losses and LAE associated with the insured

business, thus fluctuating with changes to our estimates of unpaid losses. The estimation of recoverable amounts from

reinsurers on unpaid losses may change in the future, and if there is a change, it could adversely affect the amounts stated

in our condensed consolidated financial statements.

We estimate uncollectible amounts receivable from reinsurers based on an assessment of factors including the

creditworthiness of the reinsurers and the adequacy of collateral obtained, where applicable.

Ceding Commission

A sliding scale ceding commission is a type of contingent fee paid in connection with a reinsurance treaty and is based on

the loss experience of the underlying insurance contract. At inception, the commission is estimated, and adjustments are

subsequently made as more information becomes available regarding actual loss experience.


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In connection with quota share reinsurance arrangements for non-catastrophe losses, the Company receives ceding

commissions from the reinsurers to reimburse its direct and indirect acquisition costs as well as other expenses.

The amount of ceding commissions ultimately received by the Company is contingent upon the amount of premium written

and earned and the commission rate is adjusted on a sliding scale based upon loss ratios of the ceded premium.

Accordingly, the Company develops estimates of ceding commissions based on an evaluation of historical experience and

available information, with subsequent adjustment for true-ups recorded prospectively.

Investments

The Company currently classifies all of its investments in debt securities and short-term investments as available-for-sale

and reports them at fair value. Short-term investments consist of investments in interest-bearing assets with original

maturities of 12 months or less. The Company records subsequent changes in value through the date of disposition as

unrealized holding gains and losses, net of taxes, and includes them as a component of accumulated other comprehensive

income until reclassified to earnings upon sale. Realized gains and losses on the sale of investments are determined using

the specific-identification method and included in earnings. The Company amortizes any premium or discount on fixed

maturities over the remaining maturity period of the related securities using the effective interest method and reports the

amortization in net investment income. The Company recognizes dividends and interest income when earned. We have a

financial stability rating of A, “Exceptional” from Demotech, an independent financial firm specializing in evaluating the

financial stability of regional and specialty insurers, and whose rating is accepted by major mortgage companies. We do not

have a rating from A.M. Best.

Fair Value

In our disclosure of the fair value of our investments, we utilize a hierarchy based on the quality of inputs used to measure

fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or

liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Adjustments to

transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value.

The three levels of the fair value hierarchy are described below:

•Level 1 – Valuations based on quoted prices in active markets for identical assets and liabilities;

•Level 2 – Valuations based on observable inputs that do not meet the criteria for Level 1, including quoted prices

in inactive markets and quoted prices in active markets for similar, but not identical instruments; and

•Level 3 – Valuations based on unobservable inputs, which are based upon the best available information when

external market data is limited or unavailable.

We estimate the fair value of our investments using the closing prices on the last business day of the reporting period,

obtained from active markets using independent pricing sources. For securities for which quoted prices in active markets

are unavailable, we use observable inputs such as quoted prices in inactive markets, quoted prices in active markets for

similar instruments, benchmark interest rates, broker quotes and other relevant inputs. Our estimates of fair value reflect the

interest rate environment that existed as of the close of business on June 30, 2026 and December 31, 2025. Changes in

interest rates subsequent to June 30, 2026 may affect the fair value of our investments.

Investment securities are subject to fluctuations in fair value due to changes in issuer-specific circumstances, such as credit

rating, and changes in industry-specific circumstances, such as movements in credit spreads based on the market’s

perception of industry risks. In addition, fixed maturities are subject to fluctuations in fair value due to changes in interest

rates as a result of governmental monetary policies, domestic and international economic and political conditions and other

factors beyond our control. A rise in interest rates would decrease the net unrealized holding gains of our investment

portfolios, offset by our ability to earn higher rates of return on funds reinvested. Conversely, a decline in interest rates

would increase the net unrealized holding gains of our investment portfolios, offset by lower rates of return on funds

reinvested. Unrealized gains and losses on our fixed maturity securities are included in accumulated other comprehensive

income as a separate component of total shareholders’ equity.


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Impairment

Quarterly, the Company performs an assessment of all investments to determine if any are impaired as the result of a credit

loss. An investment is impaired when the fair value of the investment declines to an amount less than the cost or amortized

cost of that investment. For each fixed-income security in an unrealized loss position, if the intent is to sell the security or if

it is more likely than not that the Company will be required to sell the security before recovering the cost or amortized cost

basis for reasons such as liquidity needs, contractual or regulatory requirements, the security’s entire decline in fair value is

recorded in earnings. If the intent is not to sell the security or it is not more likely than not that the Company will be

required to sell the security, the Company will evaluate whether any impairment is attributable to credit-related factors.

Such evaluation includes consideration of factors such as:

•Failure of the issuer of the security to make scheduled interest or principal payment;

•Downgrades in the security’s credit rating since acquisition by three or more notches;

•Adverse conditions specifically related to the security, an industry, or geographic area;

•Changes in the financial condition of the issuer of the security; and

•The payment structure of the security and the likelihood of the issuer being able to make payments that increase in

the future.

Upon determination of a credit-related impairment, an allowance for credit losses will be recognized and is measured as the

amount by which the security’s amortized cost basis exceeds the entity’s best estimate of the present value of cash flows

expected to be collected. The allowance is limited to the difference between the amortized cost basis and the security’s fair

value. Subsequent recovery of any previously recorded impairment will be recognized through reversal of the allowance

for credit losses.

Deferred income taxes

We account for taxes under the asset and liability method, under which we record deferred income taxes as assets or

liabilities on our balance sheet to reflect the net tax effect of the temporary differences between the carrying amount of

assets and liabilities for financial reporting purposes and their respective tax bases. We recognize deferred tax assets and

liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of

existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax

rates expected to apply to taxable income in the years in which we expect to recover or settle those temporary differences.

Should a change in tax rates occur, we recognize the effect on deferred tax assets and liabilities in operations in the period

that includes the enactment date. Realization of our deferred income tax assets depends upon our generation of sufficient

future taxable income.

We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would

more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold,

the amount recognized in the condensed consolidated financial statements is the largest benefit that has a greater than 50%

likelihood of being realized upon ultimate settlement with the relevant taxing authority. The amount of income tax expense

or benefit recorded in future periods will depend on the jurisdictions in which we operate and the tax laws and regulations

in effect. The Company is subject to payment of U.S. federal and state income taxes as a corporation.

Recent Accounting Pronouncements

We currently qualify as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the

JOBS Act. Accordingly, we are provided the option to adopt new or revised accounting guidance either (i) within the same

periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private

companies. We have elected to avail ourselves of this extended transition period and, as a result, we will not be required to

adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other

public companies.

We will remain an emerging growth company until the earliest of (i) the last day of the fiscal year in which we have total

annual gross revenues of $1.235 billion or more; (ii) the last day of our fiscal year following the fifth anniversary of the


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date of the completion of our IPO; (iii) the date on which we have issued more than $1 billion in nonconvertible debt

during the previous three years; and (iv) the date on which we are deemed to be a large accelerated filer under the rules of

the SEC.

See Note 2 – “Significant Accounting Policies” in our notes to the condensed consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of economic losses due to adverse changes in the estimated fair value of a financial instrument as the

result of changes in interest rates, duration, equity prices, foreign currency exchange rates, and commodity prices. The

primary components of market risk affecting us are interest rate risk, duration risk and credit risk. We do not have

significant exposure to equity risk, foreign currency exchange rate risk or commodity risk.

As of June 30, 2026, and December 31, 2025, our investment portfolios contained fixed-maturity securities. These

securities are not intended for trading or speculative purposes. Our primary aim is to maximize after-tax investment income

while ensuring sufficient liquidity to fulfill policyholder obligations. Additionally, we strive to minimize market risk,

which encompasses potential economic losses resulting from adverse fluctuations in securities’ prices.

In developing our investment strategies, we consider various factors such as credit ratings, investment concentrations,

regulatory requirements, expected interest rate fluctuations, durations, and prevailing market conditions. Our investment

portfolios are managed by Goldman Sachs Asset Management, overseen by our Board of Directors and an investment

committee appointed by AIIC’s Board of Directors.

Our investment portfolios are predominantly exposed to interest rate risk, duration risk and credit risk. We classify these

fixed-maturity securities as available-for-sale. Any unrealized gains or losses, adjusted for deferred income taxes, are

reported as part of other comprehensive income within our shareholders’ equity. Consequently, significant temporary

changes in their fair value could potentially affect the carrying value of our shareholders’ equity.

The effective weighted average duration of our fixed income portfolio at AIIC was 1.3 years and 2.37 years at June 30,

2026 and 2025, respectively, and 2.09 years at December 31, 2025. As of June 30, 2026, the estimated weighted-average

credit quality rating of the fixed income portfolio was AA. As of July 22, 2026, following the movement of $150 million of

cash into AIIC’s fixed income portfolio managed by Goldman Sachs, the average duration of the portfolio was 2.0 years

with an estimated weighted-average credit quality of the fixed income portfolio of AA-.

Interest Rate Risk

Interest rate risk is the risk that we will incur economic losses due to adverse changes in interest rates. When market

interest rates rise, the fair value of our fixed maturity securities decreases. Conversely, as interest rates fall, the fair value of

our fixed maturity securities increases.

Credit Risk

Credit risk is the potential loss resulting from adverse changes in an issuer’s ability to repay its debt obligations. We have

exposure to credit risk as a holder of fixed maturity investments. Credit risk can expose us to potential losses arising

principally from adverse changes in the financial condition of the issuers of our fixed maturity securities. We mitigate the

risk by primarily investing in fixed-maturity securities that are rated “BBB” (S&P) or higher and diversifying our

investment portfolios to avoid concentrations in any single issuer or business sector. Pursuant to our investment policy,

only $1.0 million may be invested in below investment grade bonds.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in the Exchange Act, Rule 13a-15(e)) that are designed to

assure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and

reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and

communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow

timely decisions regarding required disclosures.


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Table of Contents

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

There are no material pending legal proceedings to which we are a party or of which any of our property is the subject.

From time to time, we are subject to routine legal proceedings in the ordinary course of business. We believe that the

ultimate resolution of these matters will not have a material adverse effect on our business, financial condition, results of

operations or cash flows.

Item 1A. Risk Factors

There were no material changes to the risk factors disclosed in Part I, Item 1A “Risk Factors” in our Annual Report on

Form 10-K for the year ended December 31, 2025. For more information concerning our risk factors, please see Part I,

Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Unregistered Sales of Equity Securities

There were no sales of unregistered securities during the quarter ended June 30, 2026 that were not previously reported on

a Current Report on Form 8-K.

Use of Proceeds

On May 9, 2025, we completed our IPO, and all shares of Common Stock sold were registered pursuant to a registration

statement on Form S-1 (File No. 333-286524), as amended, declared effective by the SEC on May 7, 2025. We received

net proceeds of $82 million, after (i) deducting underwriting discounts and commissions totaling $7.0 million as well as

$4.2 million of other expenses related to the offering, (ii) using approximately $3.8 million of the proceeds from the

offering to satisfy tax withholding and remittance obligations related to the Restricted Stock Grant Net Settlement and (iii)

using $3.0 million of the proceeds of the offering to terminate the management services agreement by and between James

Sowell Company, L.P. and AIIG. Pending their further use, the net proceeds from our IPO have been invested in

investment grade instruments, and there has been no material change in the expected use of the net proceeds from our IPO

as described in our prospectus dated May 7, 2025 filed with the SEC pursuant to Rule 424(b) under the Securities Act of

1933, as amended, on May 8, 2025.

Issuer Purchases of Equity Securities

6,151 shares of Common Stock were repurchased during the period by the Company from employees in satisfaction of

certain tax withholding obligations associated with the vesting of RSUs during the period. The Plan allows the Company to

withhold the number of shares of Common Stock having the fair value equal to the tax withholding due.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

This item is not applicable.

Item 5. Other Information

Rule 10b5-1 Trading Arrangements

During the quarter ended June 30, 2026, no director or officer (as defined in Rule 16a-1(f) of the Exchange Act) of the

Company adopted, modified, or terminated any “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading

arrangement” (in each case, as defined in Item 408(a) of Regulation S-K),


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Item 6. Exhibits

The following exhibits are incorporated herein by reference or are filed with this Quarterly Report on Form 10-Q, in each

case as indicated therein (numbered in accordance with Item 601 of Regulation S-K):


Exhibit Number		Description
3.1		Amended and Restated Certificate of Incorporation of American Integrity Insurance Group, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on May 9, 2025).
3.2		Amended and Restated Bylaws of American Integrity Insurance Group, Inc. (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed with the SEC on May 9, 2025).
4.1		Registration Rights Agreement, dated May 7, 2025, by and among the Company, Sowell Investments Holding Co., LLC and Robert Ritchie (incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q filed with the SEC on June 10, 2025).
10.1+		Employment Agreement, dated April 6, 2026, by and between the Company and Brian Foley (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on April 6, 2026).
10.2		General Release and Consulting Agreement, dated April 6, 2026, by and between the Company and Ben Lurie (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the SEC on April 6, 2026).
31.1*		Certification of Principal Executive Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Principal Financial Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**		Certifications of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH*		Inline XBRL Taxonomy Extension Schema Document.
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*Filed herewith.

**The certifications attached as Exhibit 32.1 are not deemed “filed” with the SEC and are not to be incorporated by reference into any

filing of American Integrity Insurance Group, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of

1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general

incorporation language contained in such filing.

+Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Item 601(a)(5) of Regulation S-K.

American Integrity Insurance Group, Inc. agrees to furnish a copy of all omitted exhibits and schedules to the Securities and

Exchange Commission upon request.


PART I
Explanatory Note		ii
Special Note Regarding Forward-Looking Statements		iii
	PART I – FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets as of June 30, 2026 (Unaudited) and December 31, 2025	1
	Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2026 and June 30, 2025	2
	Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended June 30, 2026 and June 30, 2025	3
	Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and June 30, 2025	5
	Notes to the Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	49
Item 4.	Controls and Procedures	49
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	51
Item 1A.	Risk Factors	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 3.	Defaults Upon Senior Securities	51
Item 4.	Mine Safety Disclosures	51
Item 5.	Other Information	51
Item 6.	Exhibits	52
Signatures		53


	AMERICAN INTEGRITY INSURANCE GROUP, INC.

Date: August 13, 2026	By:	/s/ Robert Ritchie
		Robert Ritchie
		Chief Executive Officer
		(Principal Executive Officer)

Date: August 13, 2026	By:	/s/ Brian Foley
		Brian Foley
		Chief Financial Officer
		(Principal Financial Officer)