American Integrity Insurance (AII) Q3 2025: Policy Count Surges 49% as Florida Expansion Accelerates
American Integrity Insurance’s third quarter marks a pivotal inflection, with voluntary policy growth and disciplined underwriting delivering a 49% surge in total policies in force. The company is methodically expanding its Florida footprint, particularly in the underpenetrated Tri-County and middle-aged home segments, while maintaining profitability and operational discipline. Management’s conviction in durable legislative reform and favorable reinsurance trends signals confidence in sustaining profitable growth into 2026 and beyond.
Summary
- Florida Penetration Expands: Tri-County and middle-aged home initiatives drive new addressable market entry.
- Underwriting Consistency Holds: Non-catastrophe loss ratios remain stable despite rapid policy growth.
- Reinsurance and Legislative Stability: Favorable market conditions and policy reforms underpin management’s bullish multi-year outlook.
Performance Analysis
American Integrity Insurance delivered a standout quarter, with total policies in force climbing 49% year-over-year to 406,000, propelled by both voluntary market expansion and strategic takeouts from Citizens Property Insurance. Gross premiums written rose 49% to $239 million, while net premiums earned increased 28%, reflecting scaling benefits and a growing voluntary book. Notably, the company’s voluntary policy growth is now the primary engine, with 25,985 new policies written in Q3 and a 19% increase in voluntary policies in force to 315,000. Retention improved to 82.8%, supporting high-quality book expansion.
Underwriting profitability remained robust, with a combined ratio of 79% versus 94% a year ago, and the expense ratio dropping to 25% from 35%, underscoring enduring scale advantages and stronger ceding commissions. Gross non-catastrophe loss ratios held steady at 17.4%, in line with expectations, despite a more complex product mix and rapid policy growth. Net investment income surged 84% as invested assets grew. Favorable catastrophe experience and legislative reforms have created an environment where growth and margin expansion are advancing in tandem.
- Voluntary Growth Outpaces Takeouts: Citizens takeouts now a modest contributor, with voluntary policies driving the bulk of expansion.
- Expense Leverage Materializes: Scale and higher ceding commissions compress the expense ratio by 10 points year-over-year.
- Stable Loss Experience: Underlying non-cat loss ratios remain consistent, reflecting underwriting discipline and favorable market trends.
Management’s ability to convert scale into sustained profitability is evident, with book value per share rising 28% since year-end and total shareholders’ equity nearly doubling. The company’s disciplined approach to risk selection and expense control is enabling profitable penetration of new market segments without sacrificing underwriting standards.
Executive Commentary
"Our third quarter results are a continuation of a very strong year for American integrity, not only that we continue to deliver strong earnings. But our consistent profitable policy growth continues to set us up for future success... This expansion is more than policy growth. It reflects expanding trust among Florida homeowners who value stability and integrity in their insurer."
Bob Ritchie, Founder and Chief Executive Officer
"Our financial performance this quarter continues the steady trajectory we've built since the IPO. The theme is converting scale into earnings while maintaining discipline... These results highlight our ability to translate growth into profitability and sustain margin improvement through structural, not temporary gains."
Ben Leary, Chief Financial Officer
Strategic Positioning
1. Florida Tri-County and Middle-Aged Homes Expansion
American Integrity is aggressively targeting underpenetrated segments in Florida, notably the Tri-County region and middle-aged homes. Tri-County now represents 6.5% of the book, far below its 26% share of state households, indicating substantial runway. Voluntary policy writings in this region are increasing, supported by new sales leadership and distribution buildout. The company is also re-entering the middle-aged home segment post-legislative reform, with 7.9% of the portfolio now in this category versus a 25% statewide benchmark—another large, addressable market for disciplined growth.
2. Commercial Residential Product Launch
The October launch of a commercial residential product targeting Florida’s condominium and HOA markets marks a new vector for diversification. Management emphasizes measured, profitable participation, with a selective distributor network and a focus on underwriting integrity. Early takeouts and voluntary submissions are expected to ramp in Q4, but the intent is steady, margin-focused growth rather than headline top-line expansion.
3. Geographic Diversification Beyond Florida
Growth in Georgia and South Carolina continues via home builder agent relationships, and North Carolina will be added in December. While these states provide incremental profitability and buying power with builder agents, Florida remains the core focus, with management reiterating the outsized opportunity in its home market.
4. Underwriting and Risk Management Discipline
Loss ratios have remained stable despite rapid growth, thanks to conservative underwriting, favorable legislative reforms, and a portfolio skewed toward newer homes. The company’s actuarial rigor and external reviews (including Ernst & Young) underpin management’s confidence in reserve adequacy and development patterns.
5. Capital and Reinsurance Strategy
Management plans to gradually reduce quota share reinsurance to retain more profitable premium, balancing this against growth initiatives. Favorable reinsurance market signals, ample capacity, and a benign catastrophe year support this strategy. The company’s catastrophe bond renewals in January are expected to benefit from current market dynamics.
Key Considerations
This quarter marks a transition from opportunistic takeout-driven growth to a disciplined, multi-segment Florida expansion underpinned by underwriting rigor and market reforms.
Key Considerations:
- Tri-County and Middle-Aged Home Penetration: Large, underpenetrated markets offer multi-year growth potential if underwriting standards are maintained.
- Expense Ratio Improvement: Sustained cost leverage from scale and ceding commissions is structurally improving margins.
- Reinsurance Optimization: Planned reduction in quota share reinsurance will increase retained earnings but also expose the company to higher retained risk.
- Legislative Reform Durability: Management’s confidence in the persistence of Florida’s insurance reforms is central to the growth thesis, but political risk remains a watchpoint.
Risks
Key risks include potential reversal or weakening of Florida’s legislative reforms, which underpin current underwriting profitability and market stability. Rapid growth in new segments and geographic markets could test underwriting discipline, while reduced quota share reinsurance may increase earnings volatility. Catastrophe exposure remains inherent, and future unfavorable weather events or shifts in reinsurance pricing could pressure margins and capital.
Forward Outlook
For Q4 2025, American Integrity expects:
- First commercial residential policies to be written, with modest participation in November’s Citizens takeout.
- Continued expansion of voluntary policy writings in Tri-County and middle-aged home segments.
For full-year 2025, management maintained a bullish outlook:
- Ongoing double-digit policy growth in core Florida markets.
Management highlighted several factors that will shape 2026 performance:
- Expected reduction in quota share reinsurance to capture more profitable premium.
- Favorable reinsurance market dynamics and legislative environment supporting further margin expansion.
Takeaways
American Integrity is executing a disciplined, high-conviction expansion in Florida, leveraging favorable legislative and market conditions to drive both growth and profitability. Expense leverage and risk management discipline are translating scale into durable margin gains. The company’s focus on underpenetrated segments, combined with prudent capital and reinsurance strategies, positions it for continued outperformance if current market and regulatory tailwinds persist.
- Florida Market Opportunity: Penetration of Tri-County and middle-aged homes could drive sustained multi-year growth if underwriting standards are preserved.
- Margin Expansion: Structural cost improvements and stable loss ratios are underpinning profitability in a rapidly growing book.
- 2026 Watchpoints: Monitor quota share reinsurance reduction, legislative stability, and early results from commercial product and new state entries for signals on risk and upside.
Conclusion
American Integrity’s Q3 confirms a strategic pivot from opportunistic growth to disciplined, multi-segment expansion in Florida, supported by stable underwriting, favorable market reforms, and prudent capital management. Sustained execution on these fronts will be critical to realizing the company’s bullish multi-year outlook.
Industry Read-Through
The quarter’s results highlight the impact of stable legislative reforms and softening reinsurance rates on Florida property insurance profitability, with AII’s experience serving as a bellwether for regional peers. Disciplined underwriting and cost leverage are separating outperformers from legacy players still exposed to volatility. The measured approach to new product and geographic expansion is a template for insurers seeking sustainable growth in hard markets. Industry participants should watch for shifts in legislative sentiment and catastrophe frequency as potential disruptors to this favorable cycle.