Mitchell Rubin's questions to American Integrity Insurance Group (AII) leadership • Q2 2025
Question
Mitchell Rubin of Raymond James, on behalf of Greg Peters, requested additional details on the favorable reserve development during the quarter. He also asked about the expansion into insuring homes with older roofs and how that strategy impacts the company's view on Probable Maximum Loss (PML).
Answer
President Jon Ritchie clarified that the favorable reserve development was driven by prior accident years, with non-catastrophe losses coming in lower than anticipated. Regarding older roofs, he explained that while they carry a higher PML than new roofs, the premium collected compensates for the increased risk. Founder and CEO Bob Ritchie added that with over 80% of the current portfolio consisting of new roofs, the impact to the overall PML from this expansion will be well-balanced and is priced accordingly.