Slides
Page 1
1 2Q 2025Investor Presentation
Page 2
2 Generally. The information contained in this presentation has been prepared by American Integrity Insurance Group, Inc. and its subsidiaries (collectively, “American Integrity, “AII,” ” the “Company,” “we,” “us” or “our”) and contains information pertaining to the business and operations of the Company. The information contained in this presentation is current only as of the date of the presentation. For any time after the date of this presentation, the information, including information concerning our business, financial condition, results of operations and prospects, may have changed. The delivery of this presentation shall not, under any circumstances, create any implication that there have been no changes in our affairs after the date of this presentation. We have not authorized any person to give any information or to make any representations about us in connection with this presentation that is not contained herein. If any information has been or is given or any representations have been or are made to you outside of this presentation, such information or representations should not be relied upon as having been authorized by us. Cautionary Note Regarding Forward-Looking Statements. Certain statements in this presentation may be forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding: our outlook; our business strategy; writing new business and retaining existing policies; availability of reinsurance coverage; expectations on future growth; future Citizens take-out opportunities; anticipated future operating results and operating expenses, cash flows, capital resources and liquidity; reserves for losses and loss adjustment expenses; competition; future regulatory, judicial and legislative changes; forecasts of future revenues and appropriately planning our expenses; geographic expansion; and our plans regarding our capital expenditures and investment portfolio. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “contemplates,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “targets,” “will,” “would” or the negative of these terms or other similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance, and are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the potential that we may face significant losses due to being a property and casualty insurer and our exposure to catastrophic events and severe weather conditions, which can be unpredictable; our loss reserves are estimates and may be inadequate to cover our actual liability for losses, and actual claims incurred have exceeded, and in the future may exceed, reserves established for claims; the dependence of our financial results on the regulatory, legal, economic and weather conditions in Florida due to the fact that we conduct substantially all of our business in Florida; changing climate conditions may increase the severity and frequency of catastrophic events and severe weather conditions; the severity and frequency of catastrophe events of which of are unpredictable; dependence upon the effectiveness of exclusions and other loss limitation methods in the insurance policies we assume or write; reliance upon third-party distribution partners, including independent insurance agents, homebuilder-affiliated agents and national insurance carriers; our ability to pursue Citizens take-out opportunities; cyclical changes in the insurance industry; our ability to obtain reinsurance coverage at commercially reasonable rates, or at all; credit risk of our reinsurers who may suffer a downgrade; the inherent uncertainty of models and our reliance on such models as a tool to evaluate risk, and the dependence of our results upon our ability to accurately price the risks we underwrite; the possibility that our information technology systems may fail or be disrupted; our ability to expand our business and the possible need to acquire additional capital in the future to fund such expansion; the ability of our claims department, or the third-party claims adjusters whom we may engage, to effectively manage or remediate claims as well as unanticipated increases in the severity or frequency of claims; the possibility that actual renewals of our existing policies will not meet expectations; increased competition and market conditions, including changes in our financial stability and credit ratings; the extensive regulatory environment in which we operate that requires approval of rate increases, can mandate rate decreases, and that can dictate underwriting practices and mandate participation in loss sharing arrangements, and other potential further restrictive regulation we may face; mandatory assessments or competition for government entities may create short-term liabilities or affect our ability to underwrite more policies; and other risks identified in “Risk Factors” in our reports filed with the Securities and Exchange Commission, including our most recently filed Quarterly Report on Form 10-Q for the quarter ended June 30, 2025. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.Market and Industry Data.Unless otherwise indicated, market data and certain industry forecast data used in this presentation were obtained from internal reports, where appropriate, as well as third-party sources and other publicly available information. Data regarding the industry in which the Company competes, its market position and market share within are inherently imprecise and are subject to significant business, economic and competitive uncertainties beyond the Company’s control. In addition, assumptions and estimates of the Company and its industry’s future performance are necessarily subject to a high degree of uncertainty and risk due to a variety offactors. These and other factors could cause future performance to differ materially from assumptions and estimates.Financial Information.The financial information included in this presentation and other financial information about the Company can also be found on our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 filed with the Securities and Exchange Commission on August 13, 2025. The Company has prepared its financial statements with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and the SEC rules for interim financial reporting. Accordingly, the financial results in this presentation do not include all the information and footnotes required for complete financial statements and should be read in conjunction with the audited condensed consolidated financial statements of American Integrity Insurance Group, LLC and the accompanying notes thereto for the year ended December 31, 2024. The results for interim periods do not necessarily indicate the results that may be expected for any interim period or for the full year. Financial results for periods beginning prior to the consummation of our initial public offering on May 7, 2025 are those of American Integrity Insurance Group, LLC and its consolidated subsidiaries, and financial results for periods beginning after our initial public offering are those of American Integrity Insurance Group, Inc. and its consolidated subsidiaries. Financial information prior to the year ended December 31, 2023 is derived from audited financial statements that were audited by our prior auditors, Thomas Howell Ferguson P.A., and not by our independent registered publicaccounting firm.Non-GAAP Financial Measures.This presentation includes certain financial measures derived from consolidated financial data but not presented in accordance with GAAP, including underwriting income, adjusted net income, annualized adjusted return on equity, underlying loss and loss adjustment expenses, ceded catastrophe excess of loss premiums ratio and adjusted return on equity. The Company believes that these non-GAAP measures, when taken together with its financial results presented in accordance with GAAP, provide meaningful supplemental information regarding its operating performance and facilitate internal comparisons of its historical operating performance on a more consistent basis. These non-GAAP financial measures however are subject to inherent limitations, may not be comparable to similarly-titled measures used by other companies and should not be considered in isolation or as an alternative to GAAP measures. Please refer to the Appendix for reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures. Legal Disclaimer
Page 3
3 Bob RitchieFounder & Chief Executive OfficerFounded American Integrity in 2006Previously served in leadership roles at American Modern, AIG, CNA and GE Insurance SolutionsMore than 40 years of insurance industry experienceBS, University of Evansville Jon RitchiePresidentJoined American Integrity in 2009Previously served as COO and operational and managerial rolesPrior experience: leading an entrepreneurial ventureBS, DePaul University; MBA, Indiana University Ben LurieChief Financial OfficerJoined the American Integrity Board in 2017 and became CFO in 2024Previously served as CFO of Sowell & Co.Prior experience: Morgan Stanley and Colliers InternationalBS, Tulane University; MBA, Southern Methodist University David ClarkChairmanCo-founded American Integrity in 2006Currently serves as a Managing Director at Sowell & Co. Prior experience: McKinsey & Co.BA & BBA, University of Texas at Austin; Masters of Management, Northwestern University Experienced Management Team
Page 4
4 American Integrity Financial Highlights – 1H 2025 & 2Q 2025Strong growth and profitability Three Months Ended 6/30/25399KPolicies In-Forcevs. 266K at 6/30/24 (+50%)$287MGross Premiums Writtenvs. $222M 2Q ’24 (+29%)$66MNet Premiums Earnedvs. $41M 2Q ’24 (+63%)$31MAdjusted Net Income vs. $15M 2Q ’24 (+113%)$302MTotal Shareholders’ Equity vs. $162M 12/31/24 (+86%)72.9%Combined Ratio vs. 60.8% 2Q ’24 (+12%)30.6%Loss Ratiovs. 29.6% 2Q ’24 (+1%)(1)(1) At June 30, 2025 and 2024 are inclusive of the 1Q and 2Q for both periods.(2) Adjusted Net Income represents net income excluding net realized gains or losses on investments, stock compensation expense and certain non-recurring expenses, including those incurred in connection with our IPO, net of tax. See the non-GAAP reconciliation in this Appendix.(3) Annualized Adjusted Return on Equity represents Adjusted Net Income divided by Average Shareholders’ Equity. See the non-GAAP reconciliation in this Appendix.(1) Six Months Ended 6/30/25399KPolicies In-Forcevs. 266K at 6/30/24 (+50%)$499MGross Premiums Writtenvs. $369M 1H ’24 (+35%)$132MNet Premiums Earnedvs. $80M 1H ’24 (+65%)$69MAdjusted Net Income vs. $27M 1H ’24 (+159%)$302MTotal Shareholders’ Equity vs. $162M 12/31/24 (+86%)58.1%Combined Ratio vs. 68.2% 1H ’24 (-15%)30.8%Loss Ratiovs. 39.5% 1H ’24 (-9%)(1) (1)61.6%Annualized Adj. ROEvs. 40.4% 1H ’2455.5%Annualized Adj. ROEvs. 44.3% 2Q ’24 (1)(2)(3)(3)(1)(2)
Page 5
5 Leading Florida Market Share PositionAmerican Integrity has established a strong market share position in the Florida residential insurance marketplace, ranked #3 among domestic carriers for policies-in-force as of 6/30/25 (1) Market data provided by the Florida Office of Insurance Regulation (https://floir.com/tools-and-data/residential-market-share-reports); (1)(1)YTD ’24 YTD ’24 (1)(1) (1)(1)
Page 6
6 Strong Distribution Resulting in Robust Voluntary WritingsNew PoliciesGroupRanking117,458Citizens1 89,698Assurant2 64,799 Florida Pen3 59,350Safepoint4 54,936 State Farm5 48,370Tower Hill6 43,698American Integrity7 36,577American Modern Home8 34,467 Universal P&C9 32,820Frontline1028,963 Progressive1126,999QBE1226,713 Kin1326,259Monarch1425,297 Lemonade1523,903 Cabrillo Coastal1622,075Allstate1720,986American Traditions1820,484 Am Fam1917,635 FL Farm Bureau20 New PoliciesGroupRanking16,779 Security First2115,391Cypress2214,810 Trisura2313,652Loggerhead2411,384 Slide259,514Southern Oak268,568Olympus277,897People's Trust287,324 AAA294,032 Florida Family303,379Markel312,839Heritage322,775Vyrd331,812Farmers341,401 Homeowners Choice351,373Liberty Mutual36906 Universal NA37613 Chubb38324 Nationwide39 American Integrity is the #4 writer of residential policies among our peer Florida domestic carriers (and #7 among all writers)(1) 1) Market data provided by the Florida Office of Insurance Regulation (https://floir.com/tools-and-data/residential-market-share-reports); USAA data is excluded for 1H 25 policy writings as it appears they misreported their voluntary writings as equal to their in-force PIF count.
Page 7
7 Strong Voluntary Business Driving Organic Growth 66.0%68.0%70.0%72.0%74.0%76.0%78.0%80.0%82.0%84.0%3Q 2024 4Q 2024 1Q 2025 2Q 2025LTM Retention Ratio36.9 52.4 - 10.0 20.0 30.0 40.0 50.0 60.0YTD 2Q 2024 YTD 2Q 2025Voluntary Policy Writings (000s)257 306 - 50 100 150 200 250 30006/30/24 06/30/25Voluntary Residential PIF (000s)+9% PTS+42% +19%Favorable retention trends + Market leader in voluntary policy writings = Strong, double-digit organic growth on our core voluntary book of business
Page 8
8 Resulting in Strong YoY Policies-In-Force Growth ProfileAmerican Integrity’s growth profile is strong with 50% total PIF growth and 19% organic, voluntary PIF growth at 6/30/25 vs 6/30/24, further solidifying our position as a market leader257 306 - 50 100 150 200 250 300 350 400 06/30/24 06/30/25 Voluntary Residential Policies In-Force (000s)266399 - 50 100 150 200 250 300 350 400 06/30/24 06/30/25 Total ResidentialPolicies In-Force (000s)+50%+19%
Page 9
9 Voluntary PIF Growth now more important than Citizens Takeouts 1. Citizens Property Insurance Corporation. Includes all policies in-force (residential, wind only, and commercial). While we have successfully and opportunistically pursued take-outs from Citizens, we believe that opportunity is greatly diminished going forward•Since October 2024, we capitalized on favorable market conditions to assume policies from Citizens that fit our underwriting (both cat and non-cat) and profitability criteria•We assumed ~92k policies from Citizens between October 24 and April 25, representing ~ $155M in assumed unearned premium, and we are pleased with how these policies are performing to date•AII believes that the natural and appropriate size of Citizens is 550K-650K policies•Given the decline in Citizens policy count from 1.4M(1)in September 2023 to 779K at June 30, 2025, we believe that approximately 80% of the takeout opportunity has already been realizedCitizens Policies In-Force, 000s (1) 1,305 1,084 1,029 1,284 1,472 1,315 1,022 661 504 456 440 427 442 543 759 1,146 1,229 936 779 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2Q25 AII believes 550k-650k policies is the “correct” level for Citizens
Page 10
10 Voluntary, Organic Growth Opportunities AboundBecause of our strong balance sheet and leading position in the stabilized Florida insurance market, we believe our organic growth opportunities are significant and near term Strong Balance SheetStable MarketMarket Leadership Strong Florida Voluntary Policy Writing And Renewal Trends Florida expansion into Tri-County Opening capacity for Middle-Aged Roofs Florida introduction of commercial residential Reduction of Non-Cat Quota Share Strategic expansion in GA, SC, NC with builder agents
Page 11
11 Tri-County Growth OpportunityThe newly stabilized litigation environment has made it desirable to write business in the Tri-County(1), which we have limited since 2013 until the takeouts of 4Q 2024 and 1H 2025 Tri-County Currently 7% of American Integrity’s Policies-In-Force vs 28% of Florida population(2) Immediate market penetration through robust national partners relationships and homebuilder aligned agencies Provides PML benefits short term and allows for additional growth in other areas of the state over time (1) Tri-County encompasses Miami-Dade, Broward and Palm Beach counties.(2) US Census Bureau.
Page 12
12 Middle-Aged Roof OpportunityThe newly stabilized litigation environment has made it desirable to insure middle-aged roofs, whereas during the roof crisis we emphasized new homes with new roofs Middle-Aged RoofsIn response to the litigation crisis, AII reduced middle-aged roof exposure from 76% to 23%(1) The 2022 reforms has made middle-aged roofs attractive again Our longstanding relationship with our independent agents and our robust technology platform allow us to execute this plan quickly (1) Based on HO3 policies covering roofs greater than five years old from 2016 to 2024. We define middle-aged roofs as roofs that are 5 years or older.
Page 13
13 Commercial Residential Growth OpportunityAII has been preparing to enter the commercial residential insurance market for over a year. Admitted market for commercial residential in Florida is estimated to be $1.8B of premium(1) American Integrity has a COA, dedicated underwriting, and is awaiting final approval on our rate filing. First writings are expected in 1Q 2026 (1) Market data provided by the Florida Office of Insurance Regulation as of June 30, 2025 (https://floir.com/tools-and-data/residential-market-share-reports); Does not include the non-admitted market. Florida Commercial Residential
Page 14
14 Reducing Non-Cat Quota Share AII has the opportunity to further drive revenue and net earned premium by reducing its reliance on non-cat quota share to below the current 40% level Reducing Non-Cat Quota ShareCurrently ceding 40% of non-cat premiums to quota share partners Intent is to reduce that ceding rate over the next 2-3 years Reducing non-cat quota share would increase our revenue and drive earnings
Page 15
15 Strategic Regional ExpansionOur deep relationship with our builder affiliated agencies has provided us with disciplined growth opportunities outside of our core Florida market. Strategic Regional ExpansionSupports and deepens our builder affiliated agency relationships Recently surpassed 15K policies in SC Writings in NC expected to commence in 4Q 2025
Page 16
16 Our Core Competencies Support and Fuel our GrowthOur success is made possible by our core competencies, which we have built over two decadesIndependent agents selectively appointed, strategically aligned, and strong weightings of business to AIINational carriers and agenciesthrough strategic partnerships using our policy formsNew construction home builder-affiliated agents providing attractive homeowners risks and geographic expansion opportunitiesCitizens depopulations selectively when market conditions align with our underwriting standardsInsurance Now Guidewire system provides a self-maintained, user friendly, granular end-to-end system from underwriting to claimsSeamless API integrations for third-party data integration enabling real time, front-line underwriting decisions Block-level granularity with in-house programming allows for rapid, precise underwriting and rate modifications Founder-led with a track record of enviable growth and profitability since 2007Battle-tested senior leadership team with long tenure and continuity Deep Florida insurance expertisein all core functions of sales, underwriting, technology, claims, actuarial, and risk management Deep, Diversified Distribution RelationshipsRobust, Granular Technology PlatformTested, Aligned ManagementDifferentiated capacity at the agency/zip/census block level Dedicated underwritersfor top agencies to enhance consistency and deepen relationshipsStrong integration between underwriting and claims, product and sale ensures that current trends are properly identified and managedIntegrated, Detailed Underwriting
Page 17
17 Our Sophisticated, Conservative Reinsurance Program is ScalableStrategic reinsurance program is key to our risk management philosophy Per Risk & FacultativePer Risk & Facultative• Cover individual risks as opposed to group or class of business• Provides coverage for non-catastrophe losses from individual policies in excess of $1MQuota ShareQuota Share• Reinsurer assumes a specified percentage of losses for defined class of business• Utilized for non-catastrophe and flood-related lossesExcess of Loss (“XOL”)Excess of Loss (“XOL”)• Reinsurer assumes all or portion of losses for an individual claim or event in excess of specified amount• Utilized for catastrophe protection with multiple prepaid reinstatements• Utilize captive to optimize profitability given uneconomic cost of XOL reinsurance at low limits• Improves financial flexibility and capital management Captive ReinsuranceCaptive ReinsuranceWe regularly assess and realign our reinsurance structure to optimize the effectiveness of our programWe regularly assess and realign our reinsurance structure to optimize the effectiveness of our program Reinsurance PhilosophyReduce earnings volatility1Enhance capital management2Limit exposure to CAT events3Protect capital4Our Risk Management Strategy Includes Multiple Types of Reinsurance:CAT BondsCAT Bonds• Collateralized catastrophe bonds placed in the private markets to protect against named storms in Florida
Page 18
18 Catastrophe Reinsurance Program with Broad Market SupportSophisticated and conservative all-peril catastrophe XOL coverage to mitigate retained property losses Our multi-layered CAT XOL program provides comprehensive coverage up to $1.97B, including Company retentions, for a single event and $1.5B for second event (assuming first event of $790m) Integrity Re2025 CL A-2Integrity Re2025 CL A-1Integrity Re 2025-1 CL CIntegrity Re2024-1 CL BIntegrity Re2024-1 CL CIntegrity Re2024-1 CL DIntegrity Re 2025-1 CL DFlorida Hurricane Catastrophe FundAmerican Integrity Retention Integrity Re2025 CL B-1Integrity Re2025 CL B-2$1,968M$1,401M$1,093M$954M$790M$758M$272M$210M$90M$35M$10M Integrity Re2025 CL A-2Integrity Re2025 CL A-1Integrity Re 2025-1 CL CIntegrity Re2024-1 CL BIntegrity Re2024-1 CL CIntegrity Re2024-1 CL DIntegrity Re 2025-1 CL DAmerican Integrity RetentionIntegrity Re2025 CL B-1Integrity Re2025 CL B-2$1,937M$1,668M$1,378M$1,093M$982M$1,531M$963M$656M$517M$353M$210M$90M$35M$10M $1,500M$1,231M$941M$646M$546M Total First and Second event retention of $35M, with $10M of exposure for the insurance entity and $25M of exposure for our captive (3rdevent retention of $16m and 4thevent retention of $10m)Coverage by state of Florida, participation in FHCF is mandatory for all FL residential property insurersClass D CAT bond placed in 2025, expiring end of May 2027Multi-tranche CAT bond (class B and D) placed in 2024 expiring end of May 2026Class C CAT bond placed in 2024 expiring end of May 2026Class C CAT bond placed in 2025, expiring end of May 2027Multi-tranche CAT bond placed in 2025 expiring end of May 2027Multi-tranche CAT bond placed in 2025 expiring end of May 2028First event tower, including retentions, equal to 1 in 130 yr. return periodSecond Event assumes a First Event loss of $790M net of Florida Hurricane Catastrophe Fund and Named Storm Inuring layers Second eventFirst event ABCDFEGIHJ KABCDEFGHIJK
Page 19
19 Investment HighlightsAmerican Integrity combines deep Florida expertise, management continuity and an impressive track record of growth and profitability with a large organic growth opportunity in the stabilized Florida market 1) Source: S&P Global – Homeowners Multi Peril2) Federal Reserve data https://fred.stlouisfed.org/series/FLPOP3) Capital growth includes increases in book value plus profit distributions to members4) Adjusted ROE represents Adjusted Net Income divided by Average Shareholders’ Equity. See Appendix for non-GAAP reconciliation. Long-Term Growth and Profitability Track Record2008 - 2024 GWP growth CAGR 13.4% vs 6.0% for industry(1)2008 - 2024 PIF growth CAGR of 9.3% vs 1.5%(2)annual population growth in FloridaMar 2007- Mar 2025 pre-IPO capital growth CAGR of 19.7% (3) Improved and Stabilized Market and PositioningHistoric litigation reforms of 2022IPO May 2025 generated $82M of net proceedsAdj. ROEs for 2023 and 2024 of 33% and 27% respectively (4)Built market leading voluntary distribution channel relationships . 2025 Growth has acceleratedTotal in-force policy count growth up 50%at 6/30/25 vs 6/30/24Voluntary writings YTD 2Q 25 vs YTD 2Q 24 up 42%Policy retention rates up from 72% in 2Q 24 to 81% in 2Q 25Voluntary, core organic growth of in-force PIF up 19% at 6/30/25 vs 6/30/24 Current Organic Growth Opportunities AboundNew Tri-County focus and targeting older roofs 3Q/4Q 2025Likely to reduce quota share over time to add to net writings 1Q 2026Planning FL commercial residential writings 1Q 2026Expecting NC writings in 4Q 2025
Page 20
20 Appendix
Page 21
21 High Quality Investment Portfolio 1) Fair value of securities as of 6/30/25. Represents portions from investment portfolio and is not reflective of total cash on balance sheet. Excludes cash in working capital account. 2) Includes $275m of investments, $2.9m of accrued interest and $2m of cash. Total Cash and Investments at 2Q25 of $555M(1)which includes our $280M Investment Portfolio(2)managed by Goldman Sachs Asset ManagementUS Government and T-BillsCorporate BondsAsset-Backed SecuritiesCash & equivalents Weighted Average Credit Rating(2) A No Equity Exposure We maintain a simple, conservative, highly-rated and liquid investment portfolio focused on investment grade fixed income securities Weighed Average Effective Duration(2)2.4 years 66%10%23%1%GSAM Investment PortfolioCorporate SecuritiesGovernment SecuritiesAsset Backed SecuriitesCashTotal$280M
Page 22
22 Summary Historical FinancialsIncome StatementBalance SheetJune 30,June 30,$ in thousands20242025Three Months EndedRevenues$221,632 $286,995 Gross premiums written(61,546)(63,255)Change in gross unearned premiums160,086 223,740 Gross premiums earned(119,567)(157,571)Ceded premiums earned40,519 66,169 Net premiums earned2,174 2,967 Policy fees3,414 4,780 Net investment income78 485 Net realized gains (losses) on investments198 98 Other income46,383 74,499 Total revenuesExpenses12,642 21,189 Losses and loss adjustment expenses, net6,551 6,281 Policy acquisition expenses6,757 22,932 General and administrative expenses25,950 50,402 Total expenses20,433 24,097 Income before income taxes5,709 3,397 Income tax expense$14,724 $27,494 Net income$14,662 $31,294 Adjusted net income (1)Key Ratios29.60%30.60%Loss ratio31.20%42.30%Expense ratio60.80%72.90%Combined ratio December 31, June 30,$ in thousands20242025Three Months Ended$214,045 $275,418 Fixed maturities, available-for-sale, at fair value$214,045 $275,418 Total investments173,220259,609Cash and cash equivalents6,05217,214Restricted cash51,59458,625Premiums receivable, net2,1742,911Accrued investment income268,254565,841Prepaid reinsurance premiums462,097392,573Reinsurance recoverable, net1,8432,016Property and equipment, net 2,4981,488Right-of-use assets – operating leases -8,707Deferred income tax asset, net16,3687,068Other assets$1,198,145 $1,591,470 Total assetsLiabilities and shareholders' equity$475,708 $378,786 Unpaid losses and loss adjustment expenses 11,8732,802Income tax payable421,881487,130Unearned premiums56,348344,764Reinsurance payable6,56122,565Advance premiums1,122–Deferred income tax liability, net1,029824Long-term debt2,6121,559Lease liabilities – operating leases31,93126,866Deferred policy acq. costs, net unearned ceding commissions26,68824,300Other liabilities and accrued expenses$1,035,753 $1,289,596 Total liabilities162,392301,874Total shareholders' equity$1,198,145 $1,591,470 Total liabilities and shareholders' equity1) Adjusted Net Income represents net income excluding net realized gains or losses on investments, stock compensation expense and certain non-recurring expenses, including those incurred in connection with our IPO, net of tax. See the non-GAAP reconciliation in this Appendix.
Page 23
23 Twelve Months Ended December 31,($ in thousands)20232024$180,262 $182,055 Total net premiums earned7,055 7,393 Plus: Policy fees187,317 189,448 Total net premiums earned plus policy fees86,74990,832Losses and loss adj. expense, net46.3%47.9%Loss and loss adj. expense ratio (% of net premiums earned plus policy fees)Less:21,75332,192Current year net catastrophe losses(2,595)(3,187)Prior year net reserve development$67,591$61,827 Underlying loss and loss adj. expense, net36.1%32.6%Underlying loss and loss adj. expense, ratio (% of net premiums earned plus policy feesTwelve Months Ended December 31,($ in thousands)20232024$37,797 $39,742 Numerator: Net income114,877 148,180 Denominator: Average shareholders' equity32.9% 26.8% Annualized return on equity37,814 39,648Numerator: Adjusted net income114,877 148,180Denominator: Average shareholders' equity32.9% 26.8% Annualized adj. return on equityAdjusted Net IncomeAnnualized Adjusted Return on EquityNon-GAAP Reconciliations – Fiscal 2024 vs 2023($ in thousands)($ in thousands)Underwriting IncomeUnderlying Loss and Loss Adjustment ExpenseCeded Catastrophe Excess of Loss Premiums RatioTwelve Months Ended December 31,20232024$44,755 $51,039 Income before taxesLess:12,65314,180 Net investment income(22) 119 Net realized losses on investments923 607 Other income$31,201 $36,133 Underwriting incomeTwelve Months Ended December 31,20232024$590,515 $682,216 Gross premiums earned(410,253)(500,161)Total ceded premiums earnedLess:(167,230)(194,022)NCQSR and other ancillary reinsurance treaties($243,023)($306,139)Ceded catastrophe XOL premiums earned41.2%44.9%Ceded catastrophe XOL premiums ratioTwelve Months Ended December 31,($ in thousands)20232024$37,797 $39,742 Net incomeLess:(17)94 Net realized gains on Investments$37,814 $39,648 Adjusted net income (loss)
Page 24
24 Six Months Ended June 30,($ in thousands)20242025$79,802 $131,571 Total net premiums earned3,728 5,171 Plus: Policy fees83,530 136,742 Total net premiums earned plus policy fees33,00742,051 Losses and loss adj. expense, net39.5%30.8%Loss and loss adj. expense ratio (% of net premiums earned plus policy fees)Less:8,096–Current year net catastrophe losses(6,356)(1,117)Prior year net reserve development$31,267 $43,168 Underlying loss and loss adj. expense, net37.4%31.6%Underlying loss and loss adj. expense, ratio (% of net premiums earned plus policy feesSix Months Ended June 30,($ in thousands)20242025$26,831 $65,590 Numerator: Net income132,485 225,384 Denominator: Average shareholders' equity40.5% 58.2% Annualized return on equity26,765 69,377 Numerator: Adjusted net income132,485 225,384 Denominator: Average shareholders' equity40.4% 61.6% Annualized adj. return on equityAdjusted Net IncomeAnnualized Adjusted Return on EquityNon-GAAP Reconciliations: Six Months Ended June 30, 2025 vs 2024($ in thousands)($ in thousands)Underwriting IncomeUnderlying Loss and Loss Adjustment ExpenseCeded Catastrophe Excess of Loss Premiums RatioSix Months Ended June 30,20242025$33,741 $67,007 Income before taxesLess:6,662 8,883 Net investment income84 501 Net realized losses on investments416 259 Other income$26,579 $57,364 Underwriting incomeSix Months Ended June 30,20242025$317,014 $433,896 Gross premiums earned(237,212)(302,325)Total ceded premiums earnedLess:(90,396)(120,943)NCQSR and other ancillary reinsurance treaties($146,816)($181,382)Ceded catastrophe XOL premiums earned46.3%41.8%Ceded catastrophe XOL premiums ratioSix Months Ended June 30,($ in thousands)20242025$26,831 $65,590 Net incomeAdd: -10,433 Stock compensation-3,000 Termination of MSA-1,654 One-time IPO expense-1,387 One-time bonus expenseLess:84 501 Net realized gains on Investments-9,722 Change in tax status(18)2,464 Tax effect$26,765 $69,377 Adjusted net income (loss)
Page 25
25 Three Months Ended June 30,($ in thousands)20242025$40,519 $66,169 Total net premiums earned2,174 2,967 Plus: Policy fees42,693 69,136 Total net premiums earned plus policy fees12,642 21,189 Losses and loss adj. expense, net29.6%30.6%Loss and loss adj. expense ratio (% of net premiums earned plus policy fees)Less:5,840 –Current year net catastrophe losses(6,856)(1,695)Prior year net reserve development$13,658 $22,884 Underlying loss and loss adj. expense, net32.0%33.1%Underlying loss and loss adj. expense, ratio (% of net premiums earned plus policy feesThree Months Ended June 30,($ in thousands)20242025$14,724 $27,494 Numerator: Net income132,485 225,384 Denominator: Average shareholders' equity44.5% 48.8% Annualized return on equity14,662 31,294 Numerator: Adjusted net income132,485 225,384 Denominator: Average shareholders' equity44.3% 55.5% Annualized adj. return on equityAdjusted Net IncomeAnnualized Adjusted Return on EquityNon-GAAP Reconciliations: Three Months Ended June 30, 2025 vs 2024($ in thousands)($ in thousands)Underwriting IncomeUnderlying Loss and Loss Adjustment ExpenseCeded Catastrophe Excess of Loss Premiums RatioThree Months Ended June 30,20242025$20,433 $24,098 Income before taxesLess:3,414 4,780 Net investment income78 485 Net realized losses on investments198 98 Other income$16,743 $18,735 Underwriting incomeThree Months Ended June 30,20242025$160,086 $223,740 Gross premiums earned(119,567)(157,571)Total ceded premiums earnedLess:(45,742)(63,212)NCQSR and other ancillary reinsurance treaties($73,826)($94,359)Ceded catastrophe XOL premiums earned46.1%42.2%Ceded catastrophe XOL premiums ratioThree Months Ended June 30,($ in thousands)20242025$14,724 $27,494 Net incomeAdd: -10,433 Stock compensation-3,000 Termination of MSA-1,654 One-time IPO expense-1,387 One-time bonus expenseLess:78 485 Net realized gains on Investments-9,722 Change in tax status(16)2,467 Tax effect$14,662 $31,294 Adjusted net income (loss)
Page 26
26