Executive Summary

Q2 2025 delivered strong top-line and policy growth with total revenues of $74.499M, up 60.6% YoY, and net income of $27.494M; adjusted EPS was $1.84 and GAAP diluted EPS was $1.62 . Versus Wall Street, AII posted a revenue beat of ~$5.7M (+8.3%) and an EPS beat of ~$0.16 on adjusted EPS versus consensus*.
Combined ratio rose to 72.9% from 60.8% YoY, driven by one-time IPO-related costs that added 23.8 points to expense and combined ratios; underlying loss ratio remained favorable amid improved Florida litigation dynamics .
Strategic catalysts: approval to write voluntary policies in Miami-Dade and Broward, launch of Florida commercial residential lines in Q4, and surpassing 400,000 policies in-force shortly after quarter-end .
Reinsurance program pricing came in meaningfully below expectations at June 1 renewal; management highlighted rate decreases industry-wide and benefits from legislative reforms, supporting margin durability as normalization resumes post-IPO items .

(Estimates marked with * are from S&P Global; see disclaimer in Estimates Context.)

What Went Well and What Went Wrong

What Went Well

Robust policy and revenue growth: Total revenues +60.6% YoY to $74.499M; net premiums earned +63.3% YoY to $66.169M; gross premiums written +29.5% YoY to $286.995M . CEO: “We delivered strong results driven by robust policy growth from the voluntary market combined with another quarter of improved policy retention.”
Distribution and market expansion: Miami-Dade and Broward voluntary rate filings approved; systems and agents ready to begin writing later in August, with tech-enabled census-block pricing and quick rate adjustments .
Reinsurance and regulatory backdrop favorable: Excess-of-loss renewal priced below expectations; brokers cited high-single to low-double-digit decreases; management emphasized durable benefits from 2022 reforms (e.g., lower litigation frequency, normalized claims environment) .

What Went Wrong

Expense ratio surge and combined ratio optics: Expense ratio increased to 42.3% (from 31.2% YoY) on one-time IPO costs; combined ratio rose to 72.9% (from 60.8%) despite underlying loss ratio stability .
Higher ceded premiums and reinsurance spend: Ceded premiums earned rose 31.8% YoY to $157.6M with additional coverage reflecting higher in-force premiums/TIV; this diluted reported net premiums earned despite strong gross growth .
Slight YoY uptick in underlying loss ratio for the quarter: Underlying loss and LAE ratio was 33.1% vs 32.0% in Q2 2024 (though 1H underlying ratio improved to 31.6% vs 37.4% YoY); management noted favorable reserve development and disciplined underwriting into older roofs .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Total Revenues ($USD Millions)	$46.383	$71.886	$74.499
Net Income ($USD Millions)	$14.724	$38.096	$27.494
Diluted EPS ($USD)	$1.09	N/A (pre-IPO units)	$1.62
Adjusted EPS ($USD)	$1.09	N/A (not disclosed per-share)	$1.84
Gross Premiums Written ($USD Millions)	$221.632	$212.150	$286.995
Net Premiums Earned ($USD Millions)	$40.519	$65.402	$66.169
Net Investment Income ($USD Millions)	$3.414	$4.103	$4.780
Loss Ratio (%)	29.6%	30.9%	30.6%
Expense Ratio (%)	31.2%	12.0%	42.3%
Combined Ratio (%)	60.8%	42.9%	72.9%

Notes: Q1 2025 EPS not comparable due to LLC structure pre-IPO (reported as earnings per unit) . IPO-related one-time items added 23.8 points to expense/combined ratios in Q2 2025 .

Segment Breakdown

AII operates as a specialist residential property insurer; segment reporting not provided. Florida remains ~97% of in-force premium, with modest exposure in GA and SC .

KPIs

KPI	Q2 2024	Q1 2025	Q2 2025
Policies In-force (units)	266,452	383,332	399,138
In-Force Premium ($USD Millions)	$695.238	$909.539	$921.252
Voluntary Policies Written (quarter)	—	24,554	27,807
Citizens Policies Assumed (quarter)	—	16,632	7,372
Retention Rate on Renewals (%)	—	78.1%	80.9%
Underlying Loss & LAE Ratio (%)	32.0%	30.0%	33.1%
Combined Ratio (YTD) (%)	68.2%	—	58.1%

Post quarter: surpassed 400,000 policies in-force .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Voluntary entry into Miami-Dade & Broward	Q3 2025 start	Not approved	Approved; begin writing later in August	Raised (market expansion)
Florida commercial residential lines	Q4 2025 launch	Not launched	Launching in Q4; cautious underwriting; modest volumes near-term	New
North Carolina market entry	Q4 2025 start	Not approved	Approved; begin writing in Q4 focused on builders	New
Blended homeowners rate change (FL)	2025 annual filings	—	~3% blended decrease; inflation guard offsets	Maintained discipline
Reinsurance program net pricing	June 1, 2025 treaty	Expectation set earlier	Net cost below expectations; market high-single to low-double digit decreases	Better than expected

No formal numeric revenue/EPS guidance ranges were issued; management provided qualitative and operational updates .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2025)	Trend
Legislative reforms & litigation	Q1: Claims/litigation frequency down post-2022 reforms; normalized environment	Reinforced declines in litigation/expenses; consumers to see rate relief	Improving/stable
Reinsurance pricing	Q1: Renewal priced significantly less than anticipated; market rate decreases	June 1 renewal net cost below expectations; favorable broker commentary	Supportive
Tri-County expansion (Miami-Dade, Broward, Palm Beach)	Q1: Filings in process; fall start anticipated	Approvals received; begin writing later in August; tech-enabled rapid deployment	Executing
Older roofs underwriting	Q1: Focused on newer roofs; planning segmentation enhancements	Begin writing older roofs post reforms; disciplined limits; priced PML impacts	Expanding risk scope prudently
Retention & distribution	Q1: Retention 78.1%; builder agent network strong	Retention 80.9%; surpassing 400k PIF; builder/national carrier channels in place	Strengthening
Geographic diversification (GA/SC/NC)	Q1: GA/SC small but strategic	GA/SC success; NC approved; FL remains ~97% of IF premium	Incremental
Portfolio balance/PML management	Q1: Balancing exposures; avoid Monroe; manage Pasco/Lee	Tri-County helps aggregation; leverage off Southwest zones; PML benefits discussed	Balanced growth

Management Commentary

CEO (on growth/market entry): “Our voluntary rate filing has been approved in Miami-Dade and Broward… we will begin writing voluntary policies later this month… This is a significant market opportunity, and we have the distribution in place to capitalize on it.”
CFO (on optics of combined ratio): “One-time IPO expenses added 23.8 points to the expense and combined ratios in the quarter.”
President (on retention/expansion): “Our retention rate on renewal business improved to 80.9%… rate filings for Miami-Dade and Broward… approved… agents can begin writing policies almost immediately.”
CEO (on scale milestone): “We surpassed 400,000 policies in-force… It’s a statement of trust, scale, and post-IPO momentum.”

Q&A Highlights

Rates and inflation guard: Management expects inflation guard to offset a ~3% blended rate decrease; sees stability in attritional loss ratios and full benefits of reforms reflected in current quarter .
Reinsurance and diversification: Tri-County expansion aids aggregation and PML; GA/SC not materially accretive to PML but de-levers certain FL zones over time .
New-home moat: ~3 of 10 new homes insured due to deep builder relationships, tech/API integration, and strategic focus; competition acknowledged but distribution/technology provide moat .
Reserve development and older roofs: Favorable non-cat reserve development; older roof expansion priced for risk with limits on age and portfolio balance (80%+ new roofs today) .

Estimates Context

Q2 2025 vs Wall Street consensus (S&P Global):

Metric	Consensus*	Actual
Revenue ($USD Millions)	$68.802*	$74.499
Primary EPS ($USD)	$1.683*	$1.84 (Adjusted EPS) / $1.62 (GAAP diluted)

Forward snapshots (consensus, S&P Global):

Metric	Q3 2025	Q4 2025	Q1 2026
Revenue Consensus Mean ($USD Millions)*	$59.918*	$61.374*	$85.612*
Primary EPS Consensus Mean ($USD)*	$0.635*	$0.548*	$1.005*
Primary EPS - # of Estimates*	6*	6*	6*
Revenue - # of Estimates*	2*	3*	4*
Target Price Consensus Mean ($USD)*	$27.00*	$27.00*	$27.00*

Implications: The Q2 beat on revenue and EPS likely drives upward estimate revisions for near-term quarters; note combined ratio optics were temporarily inflated by IPO costs, supporting normalization into H2 as reinsurance costs amortize and MI/Broward ramp contributes.

Disclaimer: Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Top-line momentum with strong policy growth and improving retention; Q2 beat on revenue and adjusted EPS versus consensus* provides near-term positive estimate momentum .
Temporary combined ratio inflation from IPO-related costs should fade; underlying loss trends remain favorable amid post-reform Florida environment .
Strategic catalysts: immediate entry into Miami-Dade/Broward, commercial residential launch in Q4, and NC approval—supporting sustained growth and portfolio balance .
Reinsurance pricing tailwinds and improved market rationality underpin medium-term margin durability; company bought more coverage with net cost below expectations .
Disciplined expansion into older roofs broadens addressable market while pricing for PML impacts and maintaining underwriting standards .
Near-term trading: watch incremental disclosures on Tri-County ramp and any storm activity; underlying loss metrics/favorable reserve development are key narrative drivers .
Medium-term thesis: tech-enabled distribution, builder relationships, and legislative tailwinds position AII as a Florida-focused growth compounder with potential for continued profitable expansion.

American Integrity Insurance Group, LLC (AII)·Q2 2025 Earnings Summary