Key Highlights

  • Net income was USD 28.4 million, or USD 1.44 per diluted share, against USD 13.2 million a year earlier, while adjusted Net Income was USD 28.3 million, also USD 1.44 per diluted share.
  • The combined ratio improved to 70.6% from 78.9%, and Return on Equity was 29.8%, with Book Value per share of USD 19.96, up 23.7% from September 30, 2025.
  • Gross premiums written rose 22.7% to USD 293.3 million, and net premiums earned climbed 94.5% to USD 101.2 million as the company reduced the share of Business it cedes to reinsurers.
  • Management gave a preliminary Hurricane Isaias loss estimate of up to USD 35 million for the fourth quarter, the level at which its catastrophe excess of loss Reinsurance attaches.

Underwriting Profit Drives a Doubling of Net Income

American Integrity Insurance Group (NYSE:AII) reported third quarter 2026 results on November 10, 2026. Net income of USD 28.4 million compared with USD 13.2 million in the third quarter of 2025, and income before income taxes was USD 39.6 million. The Florida homeowners insurer posted a loss and loss adjustment expense ratio of 36.6% against 54.1%, while the expense ratio rose to 34.0% from 24.8%. Together they produced a combined ratio of 70.6% versus 78.9%. Net Investment income was USD 8.4 million, up from USD 6.9 million. The release called Revenue growth of 83% year over year a record, and said growth in voluntary new business policies accelerated from 54% in the second quarter to 57% in the third.

Voluntary Growth and a Smaller Reinsurance Cession

The company said about 41,000 voluntary new business policies were sold in the quarter, up 57% year over year, and it wrote 117,814 new and renewal voluntary policies, up 28.6%. Policies in force reached 481,446, up 18.6%, with in-force premium of USD 1,069 million. It assumed no policies from Citizens Property Insurance, saying none met its Underwriting and profitability standards. Net premiums earned jumped because the non-catastrophe Quota share reinsurance arrangement was cut from 40% to 25% on January 1, 2026, so the company keeps more premium and more risk. Ceded premiums earned fell to USD 153.9 million from USD 170.0 million.

Isaias Estimate, Reinsurance Renewal and Cost Pressure

Hurricane Isaias struck after the quarter ended, so it is a fourth-quarter event separate from third-quarter catastrophe losses. On the call, management called it manageable, citing a preliminary loss of up to USD 35 million, and said the claims process is early and the estimate may change. It does not expect the storm to materially change its outlook for the June 1, 2027 reinsurance renewal. Higher Acquisition and administrative costs, at USD 18.0 million and USD 17.6 million, reflect rapid new business. Retention improved to 84.9%, and management noted competition is increasing in Florida.

Where Things Stand

Not assured. American Integrity Insurance Group (NYSE:AII) earned a 70.6% combined ratio in the third quarter, but Isaias is a fourth-quarter event that will be booked separately. Management puts the preliminary loss at up to USD 35 million, which it calls conservative and equal to where its catastrophe excess of loss reinsurance attaches. Growth, a 29.8% return on equity and higher book value are strengths. Rising expenses, more retained risk after the quota share cut and Florida competition are the risks. Watch the fourth-quarter update and the June 2027 renewal.