American Integrity Insurance Group (AII) has unveiled its second-quarter performance for 2026, marking a period of record achievements and substantial expansion. The company reported a net income of $34.1 million, a 24.2% increase from the previous year, with diluted EPS reaching $1.74. Gross premiums written climbed to $326.6 million, reflecting a 13.8% surge, primarily fueled by strategic voluntary market growth. Net premiums earned saw an impressive 58.2% rise to $104.7 million, attributed to a reduction in non-catastrophe quota share cession. The company also reached a significant milestone, exceeding $1.03 billion in in-force premiums and expanding its policies in force to 461,714, a 15.7% year-over-year increase.
These robust results were driven by several key factors. American Integrity successfully navigated the market with a combined ratio improving to 63.4% from 72.9% in Q2 2025, largely due to a decline in the expense ratio. The firm set a new company record with 43,000 voluntary new business policies, representing a 54% growth. Notable achievements include a 41-fold increase in Tri-County new business policies and a 21-fold increase in middle-aged home policies. Furthermore, the company reported a 40% year-over-year growth in new business policies across Georgia, South Carolina, and North Carolina, demonstrating successful geographic diversification and the portability of its business model. CEO Robert Craig Ritchie highlighted the positive impact of Florida's legislative reforms, which have stabilized the insurance market, reduced litigation, and improved loss-cost trends, allowing for thoughtful expansion into attractive segments.
The company also successfully completed its catastrophe reinsurance program renewal, securing risk-adjusted rate reductions at the upper end of market observations, ranging from 15% to 20%. Despite a 19% increase in peak season exposure, the first event retention remained stable at $35 million, and aggregate retention was reduced from $95 million to $75 million, enhancing the net risk profile. CFO Brian Foley noted a 30.8% increase in net investment income, reaching $6.3 million, and the strategic deployment of $200 million into high-quality fixed income securities after the quarter end, with new money rates approaching 5%. The leadership team expressed confidence in the company's capital position and its ability to sustain growth, emphasizing that their long-standing agency relationships and disciplined underwriting continue to be competitive advantages.
American Integrity's exceptional performance is a testament to its steadfast commitment to disciplined underwriting, thoughtful risk selection, and responsible stewardship. By strategically adapting to market dynamics and leveraging strong relationships, the company has not only achieved remarkable financial growth but also cultivated a resilient culture. This quarter's success reflects the collective dedication of its employees and partners, laying a strong foundation for future growth and continued value creation for all stakeholders.
