AII earnings analysis
What we found in AII's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
American Integrity delivered a strong Q2, with revenue up 54.6% year over year to $115.171 million, GAAP diluted EPS of $1.74, and a combined-ratio improvement to 63.4% from 72.9%. Growth was supported by higher Voluntary Market writings, improved retention and lower ceded premiums, while cash generation and balance-sheet liquidity strengthened. However, first-half net income declined to $54.056 million from $65.590 million, the six-month combined ratio worsened to 68.5% from 58.1%, and the reduction in quota-share protection increases retained loss and expense exposure.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and net premiums accelerated
- Q2 revenue increased 26.6% sequentially from $90.931 million in Q1 2026 and 54.6% year over year from $74.499 million. Net premiums earned rose 58.2% year over year to $104.696 million, driven by higher gross premiums and lower ceded premiums.
- GAAP EPS improved sequentially
- Diluted GAAP EPS was $1.74 versus $1.62 in Q2 2025 and $1.02 in Q1 2026. Adjusted diluted EPS was $1.78 versus $1.84 in Q2 2025, reflecting the prior-year period's IPO-related adjustments.
- Underwriting profitability strengthened
- The Q2 combined ratio improved to 63.4% from 72.9% in Q2 2025, led by a 9.5 percentage-point reduction in the expense ratio to 32.8%; the loss ratio was stable at 30.6%.
- Policy growth and retention improved
- Policies in force increased 15.7% year over year to 461,714 and 5.6% sequentially from 437,308. Voluntary Market policies written in Q2 rose to 42,863 from 27,786, while retention improved to 84.4% from 81.5%.
- Cash generation remained strong
- Operating cash flow increased to $129.843 million for the six months ended June 30, 2026 from $95.481 million in the prior-year period. Investing cash use declined to $9.793 million from $59.869 million, while property and equipment purchases increased to $4.475 million from $0.579 million.
- Liquidity and capital expanded
- Cash and cash equivalents rose to $288.453 million from $203.902 million at December 31, 2025, while total cash, cash equivalents and restricted cash reached $343.872 million from $244.119 million. Shareholders' equity increased to $369.519 million from $337.022 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Heavy Florida concentration
- Florida accounted for 92.0% of policies in force as of June 30, 2026, leaving results highly exposed to Florida regulatory, legal, economic and weather conditions.
- Catastrophe and reinsurance exposure
- The 2026–2027 catastrophe program provides $2.25 billion of third-party coverage for a single event, but the company retains $35.0 million for the first event and expects to cede $430.0 million to $440.0 million of catastrophe reinsurance premiums for the treaty year.
- Reserve growth raises loss risk
- Net unpaid losses and LAE increased to $93.883 million from $74.255 million at December 31, 2025, primarily due to $8.976 million of additional non-catastrophe storm reserves and $9.304 million of additional Citizens assumed-business reserves.
- Lower quota-share protection
- The company reduced its non-catastrophe quota-share ceding percentage from 40% to 25% effective January 1, 2026. As a result, the six-month loss ratio increased to 33.6% from 30.8%, and the expense ratio rose to 34.9% from 27.3%.
- Receivable and counterparty exposure
- Premiums receivable increased to $59.104 million from $45.031 million at December 31, 2025, while net reinsurance recoverable remained material at $247.916 million, creating collection and counterparty exposure.
- No material risk-factor updates
- The filing states there were no material changes to the risk factors in the December 31, 2025 Form 10-K. Nonetheless, the company reported $208.887 million of statutory capital and surplus at AIIC versus a $20.889 million minimum requirement, highlighting the importance of maintaining regulatory capital as the business grows.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.74
- Segment
- Single reportable operating segment: insurance; total revenue was $115.171 million in Q2 2026 versus $74.499 million in Q2 2025 and $90.931 million in Q1 2026.
What they said about what is next.
No numeric revenue or EPS guidance was provided. Management expects 2026 Citizens take-outs to represent a smaller portion of gross premiums written than in 2024 and 2025, and expects total net consolidated catastrophe reinsurance premiums ceded to third parties of $430.0 million to $440.0 million for the 2026 treaty year.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 14, 2026
- American Integrity Insurance Group, Inc. reported Q1 2026 financial results reflecting a significant decline in net income to $19.9 million, down 47.7% year-over-year. The company experienced a 25.7% increase in net…
- 10-K · February 27, 2026
- American Integrity reports scale and profitability in 2025 with gross premiums written of $944.6 million, 421,866 policies-in-force and GAAP net income of $99.6 million (adjusted net income $105.2 million) as of…
- 10-Q · August 13, 2025
- American Integrity reported Q2 (ended June 30, 2025) total revenues of $74,499 (in thousands) and GAAP diluted EPS of $1.62, with material year‑over‑year top‑line and EPS growth driven by higher premiums earned and…
- 10-Q · June 10, 2025
- Strong quarter: total revenues rose to $71,886 (thousands) from $44,308 in Q1 2024 (+$27,578), driven by higher gross premiums written of $212,150 (vs $147,452). Net income increased to $38,096 (thousands) from $12,106…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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