AII

TORONTO, Nov. 6, 2026 /CNW/ -- Aimia Inc. (TSX: AIM) (JSE: AII) (AIM: AII) ("Aimia" or the "Company") today reported its unaudited financial results for the three and nine months ended September 30, 2026. All amounts are in Canadian currency unless otherwise noted. SENIOR LEADERSHIP COMMENTARY "Our efforts to enhance Aimia's intrinsic value delivered encouraging results in Q3," said Rhys Summerton, Aimia's Executive Chairman. "During the quarter, we deployed more than $15 million into new investments and generated a fair value gain of $1.9 million. We also benefitted from management changes implemented at Cortland as reflected by its improved financial performance, and we qualified for admission to the AIM Market of the London Stock Exchange. While Aimia's transformation is still in its early stages, the progress made in Q3 provides a solid foundation for sustainable long-term value creation for our shareholders." "We experienced improvements to several key financial metrics in the third quarter, including revenue and gross profit, compared to last year," said Steven Leonard, Aimia's President and CFO. "Our financial results for Q3 2026 were negatively impacted, however, by a number of developments, including one-time SG&A expenses related to corporate strategic initiatives and an unrealized net fair value loss related to our investment in Clear Media. Our focus in the near term is to sustain Cortland's recent momentum, reduce HoldCo costs, and strategically deploy capital consistent with our strategy to enhance shareholder value." AIMIA'S Q3 2026 HIGHLIGHTS - Invested $15.5 million in public companies consistent with the Company's strategy to enhance shareholder value. - Reported equity attributable to common shareholders per share1 of $3.55, up from $3.28 per share in Q3 2025. - Qualified for admission to the AIM Market of the London Stock Exchange and began trading under the ticker "AII" on October 1, 2026. - Reported revenue from continuing operations of $45.6 million, up 21.3% from $37.6 million generated in Q3 2025. The growth was driven by pricing surcharges and improving sales volumes in some of Cortland's key customer segments. - Generated Adjusted EBITDA from continuing operations of $3.2 million, down from $3.5 million reported in Q3 2025. The decline was primarily driven by one-time legal and professional services fees related to strategic initiatives and multi-listing activities. - Reported a consolidated net loss of $14.3 million, down from net earnings of $3.0 million in Q3 2025, which included $6.2 million of earnings contributed by Bozzetto in the prior period. The year-over-year decline was also attributable to a $8.3 million unrealized fair value loss on the Company's investment in Clear Media and by net financial expenses, including $4.8 million of deferred financing costs associated with the redemption of the 9.75% Senior Unsecured Notes. - Reported a consolidated loss per common share of $0.17 compared to earnings per share of $0.02 in Q3 2025. - Repurchased 278,900 common shares for cancellation for a total consideration of $0.7 million. ______________________________ 1 Equity attributable to common shareholders per share is a non-GAAP measure. CONSOLIDATED FINANCIAL HIGHLIGHTS Aimia | 3-Months Ended September 30 | 9-Months Ended September 30 | (in $millions except for margin and per share data) | 2026 | 2025 | Change | 2026 | 2025 | Change | Continuing operations | | | | | | | Revenue | 45.6 | 37.6 | 21.3 % | 114.7 | 116.1 | (1.2) % | Gross Profit | 10.4 | 8.3 | 25.3 % | 27.0 | 26.8 | 0.7 % | Gross Margin | 22.8 % | 22.1 % | 0.7 pp | 23.5 % | 23.1 % | 0.4 pp | Selling, general and administrative expenses | (11.3) | (9.3) | (21.5 %) | (31.1) | (31.6) | 1.6 % | Operating Income (loss) | (0.9) | (1.0) | 10.0 % | (4.1) | (4.8) | 14.6 % | Adjusted EBITDA2 | 3.2 | 3.5 | (8.6) % | 8.0 | 9.0 | (11.1) % | Consolidated (unless otherwise noted) | | | | | | | Net earnings (loss) | (14.3) | 3.0 | NM | 22.8 | (2.7) | NM | Earnings (loss) per share | (0.17) | 0.02 | NM | 0.21 | 0.50 | (58.0) % | Earnings (loss) per share - Continuing operations | (0.17) | (0.04) | NM | (0.20) | 0.33 | (160.6) % | Earnings (loss) per share - Discontinued operations | — | 0.06 | NM | 0.41 | 0.17 | 141.2 % | Headline earnings per share3 | (0.17) | 0.02 | NM | (0.03) | 0.47 | (106.4 %) | This press release should be read in conjunction with Aimia's consolidated financial statements and management's discussion and analysis (MD&A) for the three-month and nine-month periods ended September 30, 2026, set below and which can also be accessed from SEDAR+ and www.aimia.com. Balance Sheet and Liquidity As at September 30, 2026, Aimia had $152.5 million in cash and cash equivalents, of which $7 million was held at Cortland International and $145.5 million was held in the Holdings segment. In addition, Aimia held $28.7 million in marketable securities. As at June 30, 2026, Aimia had $294.5 million of cash and cash equivalents and $12.1 million in marketable securities. The decrease in Aimia's cash position in Q3 2026 was driven primarily by the payment of an aggregate principal amount of $131.4 million related to the validly tendered 9.75% Senior Notes. Other factors that contributed to the decline in Aimia's cash position included $15.5 million invested in public companies, $1.6 million in cash flow used in operating activities, $1.6 million for investments in property, plant, and equipment, $0.7 million for the repurchase of common shares, and $0.7 million for preferred share dividends. The decline was partially offset by a number of developments, including the receipt of $3.9 million in proceeds from the redemption of investment funds, $2.1 million in proceeds from Cortland's other borrowings, the receipt of $2 million in interest, $1.8 million in final closing adjustments related to the sale of Bozzetto, and $0.9 million in proceeds from the sale of investments in marketable securities. ______________________________ 2 Adjusted EBITDA is a non-GAAP measure. 3 Headline Earnings Per Share is a JSE mandated financial metric that measures core operating profitability by adjusting earnings for certain specified re-measurements in accordance with the Headline Earnings Circular 1/2023 issued by the South African Institute of Chartered Accountants (SAICA). Available Tax Losses As at September 30, 2026, Aimia had $1,058.6 million of tax losses available for carry forward that may be used to reduce taxable income in future years. The total available for carry forward comprises $527.7 million of operating tax losses and $530.9 million of capital tax losses. Dividends on Preferred Shares Aimia paid $0.7 million in dividends for the third quarter ended September 30, 2026, on its three series of outstanding preferred shares. Aimia's Board of Directors declared quarterly dividends of $0.392563 per Series 1 preferred share, $0.485813 per Series 3 preferred share and $0.408896 per Series 4 preferred share, in each case payable on December 31, 2026, to shareholders of record on December 17, 2026. Dividends paid by Aimia to Canadian residents on its preferred shares are "eligible dividends" for the purpose of the Income Tax Act (Canada) and any similar applicable provincial legislation. SEGMENT RESULTS As a result of Aimia's divestiture of its specialty chemicals holding, the Company now comprises two segments: Cortland International and Holdings. Financial highlights for each segment for the three and nine months ended September 30, 2026, follow. Cortland International Aimia owns a 100% equity stake in Cortland International, a global leader in the manufacture of high-performance synthetic fibre ropes and netting solutions for maritime and other industrial customers. Cortland International | 3-Months ended September 30 | 9-Months ended September 30 (in millions of dollars except for margin data) | 2026 | 2025 | Change | 2026 | 2025 | Change Revenue | 45.6 | 37.6 | 21.3 % | 114.7 | 116.1 | (1.2) % Gross Profit | 10.4 | 8.3 | 25.3 % | 27.0 | 26.8 | 0.7 % Gross Margin | 22.8 % | 22.1 % | 0.7 pp | 23.5 % | 23.1 % | 0.4 pp Selling, general and administrative expenses | (8.5) | (6.7) | (26.9 %) | (23.6) | (23.1) | (2.2) % Operating Income (loss) | 1.9 | 1.6 | 18.8 % | 3.4 | 3.7 | (8.1) % Earnings (loss) before taxes | (0.9) | (1.6) | 43.8 % | (5.4) | (4.3) | (25.6) % Adjusted EBITDA4 | 5.7 | 5.5 | 3.6 % | 14.6 | 15.8 | (7.6) % Adjusted EBITDA Margin | 12.5 % | 14.6 % | (2.1) pp | 12.7 % | 13.6 % | (0.9) pp - Cortland generated revenue of $45.6 million for Q3 2026, up 21.3% from $37.6 million generated in Q3 2025. The year-over-year increase was driven by a number of factors, including the pass-through of pricing surcharges implemented in response to rising raw material and freight costs caused by geopolitical developments in the Middle East. Other drivers included product mix and higher customer demand in the Aerospace and Defense and Industrial and Safety sectors in the US and the Fishing and Aquaculture sector. The revenue increase was partially offset by lower sales volumes in other sectors and the negative impact of the weakening Indian rupee relative to the US dollar. - SG&A costs in Q3 2026 increased by $1.8 million primarily due to higher selling costs associated with freight and higher compensation expenses. - Adjusted EBITDA for Q3 2026 was $5.7 million, representing a margin of 12.5%. These figures compare with $5.5 million and 14.6%, respectively, for Q3 2025. ______________________________ 4 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Holdings Segment The Holdings Segment includes Aimia's investments in Clear Media Limited as well as minority investments in public company securities and limited partnerships. The results of the Holdings Segment include corporate operating costs, including costs related to public company disclosure and board, executive leadership, legal, finance and administration fees. Holdings | 3-months ended September 30 | 9-Months ended September 30 (in millions of dollars) | 2026 | 2025 | Change | 2026 | 2025 | Change Selling, general and administrative expenses | (2.8) | (2.6) | (7.7) % | (7.5) | (8.5) | 11.8 % Earnings (loss) before taxes | (11.4) | (0.9) | NM | (7.2) | (13.9) | 48.2 % Adjusted EBITDA5 | (2.5) | (2.0) | (25.0) % | (6.6) | (6.8) | 2.9 % - SG&A expenses for the Holdings segment in Q3 2026 were $2.8 million, up from $2.6 million incurred in Q3 2025. The increase was due to higher one-time expenses related to corporate strategic initiatives and multi-listing activities, including preparation for admission to the AIM Market of the London Stock Exchange on October 1, 2026. The increase was partially offset by cost-savings on reduced professional services and advisory fees and insurance costs. - Excluding investing activities, share-based compensation, and expenses related to becoming interlisted, Aimia expects annualized HoldCo costs in 2026 to be $7 million. - Earnings before taxes in Q3 2026 decreased by $10.5 million compared to Q3 2025. The decline was due mostly to an unfavourable variance of $6.7 million in net fair value of investments, which included a $8.3 million unrealized fair value loss on the Company's investment in Clear Media, and an unfavourable variance of $4.1 million in net financial expenses which included the write-off of $4.8 million of deferred financing costs associated with the redemption of Senior Notes. Quarterly Conference Call and Audio Webcast Information Aimia will host a conference call to discuss its third-quarter 2026 financial results at 8:30 a.m. ET on November 6. The call will be webcast at https://app.webinar.net/ZMmekrwJYv5 . Interested parties can listen to the conference call by dialing 1 888 699 1199 or 1 416 945 7677 (internationally). A slide presentation intended for simultaneous viewing with the conference call and an archived audio webcast will be available for 90 days following the original broadcast at: https://www.aimia.com/investor-relations/events-presentations/. About Aimia Aimia Inc. (TSX: AIM; JSE: AII; AIM: AII) is a diversified conglomerate focused on enhancing the value of its holdings. Headquartered in Toronto, Aimia's priorities include increasing its intrinsic value, reducing holding company costs, reducing the discount of its share price to the intrinsic value of its businesses, and redeploying capital to make investments in undervalued companies. For more information about Aimia, visit www.aimia.com. _____________________________ 5 Adjusted EBITDA is a non-GAAP measure. Non-GAAP Financial Measures and Reconciliation to Comparable GAAP Measures "GAAP" means Canadian Generally Accepted Accounting Principles (which are in accordance with the International Financial Reporting Standards). Adjusted EBITDA Adjusted EBITDA is not a measurement based on GAAP, is not considered an alternative to net earnings in measuring profitability, does not have a standardized meaning and is not directly comparable to similar measures used by other issuers. Adjusted EBITDA should not be used as an exclusive measure of cash flow because it does not account for the impact of working capital growth, capital expenditures, debt repayments and other sources and uses of cash, which are disclosed in the statements of cash flows. A reconciliation to operating income (loss) is provided. Adjusted EBITDA is used by management to evaluate the performance of its Cortland International and Holdings segments, as well as the performance of the Bozzetto business until its sale on May 29, 2026. Management believes Adjusted EBITDA assists investors in comparing Aimia's performance on a consistent basis, excluding depreciation and amortization, impairment charges related to non-financial assets and share-based compensation, which are non-cash in nature and can vary significantly depending on accounting methods as well as non-operating factors such as historical cost. Aimia's management believes that the exclusion of expenses related to business acquisitions and/or disposals assists investors by excluding expenses that are not representative of the run-rate cost structure of its operations. Adjusted EBITDA is operating income (loss) adjusted to exclude depreciation, amortization, impairment charges related to non-financial assets, cost of sales expense related to inventory fair value step-up resulting from purchase price allocation, share-based compensation, expenses related to Cortland International's long-term management incentive plan, gain/loss from the disposal of manufacturing property and land, termination benefits, as well as transaction costs related to business acquisitions and divestitures. For a reconciliation of Adjusted EBITDA to operating income (loss), please refer to the tables below. Cortland International | Three Months EndedSeptember 30, | Nine Months Ended September 30, (in millions of Canadian dollars) | 2026 | 2025 | 2026 | 2025 Reconciliation of Adjusted EBITDA | | | | | | | | Operating income (loss) | 1.9 | | 1.6 | | 3.4 | | 3.7 | Depreciation and amortization | 2.8 | | 2.8 | | 8.5 | | 8.9 | Long-term management incentive plan | 0.7 | | 1.1 | | 2.0 | | 3.2 | Termination benefits | 0.3 | | — | | 0.7 | | — | | | | | | | | | Adjusted EBITDA | 5.7 | | 5.5 | | 14.6 | | 15.8 | Adjusted EBITDA margin | 12.5 % | | 14.6 % | | 12.7 % | | 13.6 % | Holdings | Three Months EndedSeptember 30, | Nine Months Ended September 30, (in millions of Canadian dollars) | 2026 | 2025 | 2026 | 2025 Reconciliation of Adjusted EBITDA | | | | | | | | Operating income (loss) | (2.8) | | (2.6) | | (7.5) | | (8.5) | Share-based compensation expense (reversal) | 0.3 | | 0.6 | | 0.9 | | 1.7 | Adjusted EBITDA | (2.5) | | (2.0) | | (6.6) | | (6.8) | Equity attributable to common shareholders per share Equity attributable to common shareholders per share is total attributable to the equity holders of the Corporation, less the carrying amount of preferred shares, divided by the total common shares outstanding at the period end. Aimia | September 30, | September 30, (in millions of Canadian dollars, except share and per share amounts) | 2026 | 2025 Reconciliation of Equity attributable to common shareholders | | Total attributable to the equity holders of the Corporation | 350.8 | 335.5 Less: Share capital - preferred shares | (38.0) | (38.0) Equity attributable to common shareholders | 312.8 | 297.5 | | Total number of common shares outstanding | 88,121,585 | 90,771,685 Equity attributable to common shareholders per share | 3.55 | 3.28 Headline earnings per common share The Company's shares are also listed on the JSE, which requires the Corporation to present headline and diluted headline earnings (loss) per share. Headline earnings (loss) per share is calculated by dividing headline earnings (loss) attributable to equity holders of the Company by the weighted average number of common shares issued and outstanding during the period. The following table summarizes the adjustments to earnings (loss) attributable to equity holders of the Corporation for the purpose of calculating headline earnings (loss) attributable to the equity holders of the Company, and the headline earnings (loss) and diluted headline earnings (loss) per share. Adjusted amounts represented under the "Gross" column are pre-tax, whereas adjusted amounts under the "Net" column are net of tax. | Three Months EndedSeptember 30, | Nine Months Ended September 30, | 2026 | 2025 | 2026 | 2025 | Gross | Net | Gross | Net | Gross | Net | Gross | Net Earnings (loss) attributable to equity holders of the Corporation | | (14.3) | | 2.2 | | 20.9 | | (5.3) Deduct: Dividends declared on preferred shares related to the period | | (0.7) | | (0.7) | | (2.1) | | (2.1) Add: Excess of preferred shares' assigned value over consideration exchanged for repurchase | | — | | — | | — | | 53.8 Earnings (loss) attributable to common shareholders | | (15.0) | | 1.5 | | 18.8 | | 46.4 Headline earnings adjustments: | | | | | | | | (Gain) on disposal of business (including reclassification to net earnings of CTA) | — | — | — | — | (21.7) | (21.7) | — | — Reclassification to net earnings of cumulative translation adjustments | — | — | — | — | — | — | (2.2) | (2.2) Headline earnings (loss) attributable to common shareholders | | (15.0) | | 1.5 | | (2.9) | | 44.2 Weighted average number of common shares - Basic and diluted | | 88,208,268 | | 91,059,155 | | 88,718,858 | | 93,178,943 | | | | | | | | Headline earnings (loss) per common share | | $ (0.17) | | $ 0.02 | | $ (0.03) | | $ 0.47 Diluted headline earnings (loss) per common share | | $ (0.17) | | $ 0.02 | | $ (0.03) | | $ 0.47 | | | | | | | | Forward-Looking Statements This press release contains statements that constitute "forward-looking information" within the meaning of Canadian securities laws ("forward-looking statements"), which are based upon Aimia's current expectations, estimates, projections, assumptions and beliefs. All information that is not clearly historical in nature may constitute forward-looking statements. Forward-looking statements are typically identified by the use of terms such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would" and "should", and similar terms and phrases, including references to assumptions. Forward-looking statements in this press release include, but are not limited to, statements regarding: Aimia's capital allocation activities and its strategy of redeploying capital into investments in undervalued companies, including its expectation of acquiring controlling stakes in a number of target companies and its belief that this can be accelerated following its admission to the AIM Market of the London Stock Exchange; the anticipated turnaround and improving outlook at Cortland International, and Cortland's performance in the second half of the current fiscal year; Aimia's expectation of improved consolidated results over the coming periods; Aimia's objective of reducing holding company costs, and its estimate that annualized Holdings segment costs will be approximately $7 million; and the availability and future use of Aimia's tax losses to reduce taxable income in future years. Forward-looking statements, by their nature, are based on assumptions and are subject to known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the forward-looking statement will not occur. The forward-looking statements in this press release speak only as of the date hereof and reflect several material factors, expectations and assumptions. Undue reliance should not be placed on any predictions or forward-looking statements as these may be affected by, among other things, changing external events and general uncertainties of the business. A discussion of the material risks applicable to the Company can be found in Aimia's current Management's Discussion and Analysis and Annual Information Form, each of which has been or will be filed on SEDAR+ and can be accessed at www.sedarplus.ca. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aimia disclaims any intention and assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. View original content: http://www.newswire.ca/en/releases/archive/November2026/06/c2244.html

Kingstone Companies, Inc (KINS) came out with quarterly earnings of $1.22 per share, beating the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $0.73 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +40.23%. A quarter ago, it was expected that this company would post earnings of $0.95 per share when it actually produced earnings of $1.04, delivering a surprise of +9.47%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Kingstone Companies, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $67.54 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 5.27%. This compares to year-ago revenues of $55.65 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kingstone Companies shares have added about 19.3% since the beginning of the year versus the S&P 500's gain of 12.3%. While Kingstone Companies has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kingstone Companies was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.07 on $76 million in revenues for the coming quarter and $2.65 on $273 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. American Integrity Insurance (AII), another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on November 10. This company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of -31%. The consensus EPS estimate for the quarter has been revised 24.7% lower over the last 30 days to the current level. American Integrity Insurance's revenues are expected to be $105.43 million, up 70.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kingstone Companies, Inc (KINS) : Free Stock Analysis Report American Integrity Insurance Group, Inc. (AII) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The upcoming report from American Integrity Insurance (AII) is expected to reveal quarterly earnings of $0.49 per share, indicating a decline of 31% compared to the year-ago period. Analysts forecast revenues of $105.43 million, representing an increase of 70.1% year over year. The current level reflects a downward revision of 24.7% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock. While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. That said, let's delve into the average estimates of some American Integrity Insurance metrics that Wall Street analysts commonly model and monitor. It is projected by analysts that the 'Revenues- Net investment income' will reach $6.89 million. The estimate points to a change of -0.2% from the year-ago quarter. The combined assessment of analysts suggests that 'Revenues- Net premiums earned' will likely reach $94.77 million. The estimate indicates a change of +82.3% from the prior-year quarter. Based on the collective assessment of analysts, 'Combined Ratio' should arrive at 90.4%. The estimate compares to the year-ago value of 78.9%. The consensus estimate for 'Loss Ratio' stands at 53.2%. The estimate compares to the year-ago value of 54.1%. Analysts forecast 'Expense Ratio' to reach 37.2%. The estimate is in contrast to the year-ago figure of 24.8%. View all Key Company Metrics for American Integrity Insurance here>>> Over the past month, American Integrity Insurance shares have recorded returns of +10.1% versus the Zacks S&P 500 composite's -0.4% change. Based on its Zacks Rank #2 (Buy), AII will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Integrity Insurance Group, Inc. (AII) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The Hartford Insurance Group, Inc. HIG delivered third-quarter 2026 core earnings per share of $3.50, beating the Zacks Consensus Estimate by 11.1%. However, the bottom line declined 2.5% year over year. Revenues came in at $5.4 billion, topping the consensus mark of $5.3 billion. The top line improved 5.3% year over year. The quarterly results benefited from higher investment income and premium growth in Business Insurance. However, higher catastrophe losses and weaker Employee Benefits profitability partly offset the upside. The Hartford Insurance Group, Inc. price-consensus-eps-surprise-chart | The Hartford Insurance Group, Inc. Quote The Hartford's third-quarter core earnings declined 6.5% year over year to $956 million. Net income available to common stockholders increased 22.6% to $1.32 billion, aided by a gain related to the commutation of an asbestos and environmental reinsurance agreement. Earned premiums grew 4.2% year over year to $6.4 billion, coming in higher than the Zacks Consensus Estimate of $6.3 billion. Net investment income, before tax, advanced 12.6% year over year to $850 million, higher than the consensus mark of $788.4 million. The increase reflected higher income from limited partnerships and other alternative investments, along with growth in invested assets. Total benefits, losses and expenses declined 1.2% year over year to $5.64 billion. Property and casualty current accident year catastrophe losses surged to $198 million from $70 million a year ago, primarily due to tornado, wind and hail events. The Business Insurance unit remained the largest contributor to operating performance, with written premiums rising 5.6% year over year to $3.8 billion. Net income declined 10.3% to $637 million, while core earnings improved 1.1% to $731 million. Higher earned premiums and investment income supported results despite underwriting pressures. The segment's combined ratio deteriorated to 91.3 from 88.8 in the prior-year quarter, reflecting higher catastrophe losses and less favorable prior-year reserve development. The metric compared favorably with the Zacks Consensus Estimate of 92.6. Small Business written premiums grew 7% year over year, while its combined ratio improved 340 basis points to 84.5. Global Specialty also delivered 7% premium growth, supported by continued expansion across its businesses. Personal Insurance written premiums declined 3.7% year over year to $950 million in the third quarter of 2026, reflecting competitive pressure in automobile insurance, partly offset by homeowners growth. Core earnings fell 26.6% year over year to $105 million. The segment's combined ratio deteriorated to 93.2 from 88.7, primarily due to higher catastrophe losses. The metric compared favorably with the consensus mark of 95.8. The segment's underlying loss and loss adjustment expense ratio improved 310 basis points year over year to 61.1. P&C Other Operations reported core earnings of $16 million, up 14.3% year over year. Revenues decreased 5.3% year over year to $18 million. Employee Benefits fully insured ongoing premiums increased 3.7% year over year to $1.66 billion, supported by strong new business sales, higher exposure on existing accounts and persistency exceeding 90%. However, core earnings declined 19.5% to $120 million. The core earnings margin contracted 190 basis points to 6.4%, primarily due to higher claims costs. The loss ratio deteriorated to 74.9% from 70.1% a year ago. Group disability losses increased due to higher claim incidence and less favorable recoveries. Meanwhile, the expense ratio improved 130 basis points year over year to 25.4%. Corporate reported net income of $55 million, down from $75 million a year ago. Its core loss widened to $16 million from $7 million, reflecting changes in investment-related revenues and tax benefits. The Hartford Funds business remained classified as discontinued operations following the agreement to sell Hartford Funds Management. Income from discontinued operations totaled $61 million after tax, compared with $59 million in the prior-year quarter. The Hartford exited the third quarter with total assets of $87.1 billion, up 1.3% from year-end 2025, while total investments increased 1.9% from the year-end 2025 level to $64.7 billion. Cash inched up 0.8% to $123 million during the same period. Debt remained largely stable at $4.4 billion. Total stockholders' equity came in at $18.9 billion, down 0.6% from year-end 2025. Book value per diluted share excluding AOCI improved 16.3% year over year to $82.47. Operating cash flow was $5.2 billion in the first nine months of 2026, up 26% from the prior-year comparable period. The Hartford continued its capital deployment efforts during the quarter, returning $638 million to its shareholders. The company repurchased $475 million of shares and paid $163 million in common stock dividends. It also announced a 12% increase in its quarterly common dividend to 67 cents per share. The company generated a trailing 12-month core earnings return on equity of 17.9%, which improved 60 basis points year over year. HIG currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Finance space are American Integrity Insurance Group Inc. AII, Mercury General Corporation MCY and Robinhood Markets, Inc. HOOD, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for American Integrity Insurance's current-quarter earnings of 49 cents per share has remained stable over the past seven days. AII beat earnings estimates in each of the trailing four quarters, with the average surprise being 46.6%. The consensus estimate for current-quarter revenues is pegged at $105.4 million, implying 70.1% year-over-year growth. The Zacks Consensus Estimate for Mercury General's current-quarter earnings of $3.35 per share has remained stable over the past 60 days. MCY beat earnings estimates in each of the trailing four quarters, with the average surprise being 70.2%. The consensus estimate for current-quarter revenues is pegged at $1.6 billion, calling for 8.8% year-over-year growth. The Zacks Consensus Estimate for Robinhood Markets' current-quarter earnings is pegged at 56 cents per share and has witnessed one upward revision in the past seven days against no movement in the opposite direction. HOOD beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 15.1%. The consensus estimate for current-quarter revenues is pegged at $1.4 billion, calling for 13.1% year-over-year growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Hartford Insurance Group, Inc. (HIG) : Free Stock Analysis Report Mercury General Corporation (MCY) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report American Integrity Insurance Group, Inc. (AII) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

American Express Company AXP reported third-quarter 2026 adjusted earnings per share (EPS) of $4.68, which surpassed the Zacks Consensus Estimate by 4.7%. The bottom line advanced 13% year over year. Total revenues, net of interest expense, improved 9% year over year to $20.1 billion. However, the top line missed the consensus mark by a whisker. The quarterly earnings were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by elevated operating expenses. American Express Company price-consensus-eps-surprise-chart | American Express Company Quote Network volumes grew 8% year over year in the third quarter to $517.9 billion on the back of higher U.S. consumer spending. But the metric missed the Zacks Consensus Estimate of $520.5 billion. Total interest income of $6.9 billion rose 4% year over year but missed the consensus mark of $7 billion. Provision for credit losses came in at $985 million, which declined 23% year over year in the quarter under review due to a reserve release during the quarter compared to a reserve build in the prior-year quarter. Total expenses increased 9% year over year to $14.5 billion due to higher variable customer engagement costs resulting from increased spending by Card Members and the refresh of the U.S. Platinum Card. The U.S. Consumer Services segment recorded pre-tax income of $2.3 billion, which grew 24% year over year and beat the Zacks Consensus Estimate by 36.2%. Total revenues, net of interest expenses, improved 11% year over year to $9.8 billion but missed the Zacks Consensus Estimate by 3%. An expanding Gen-Z and Millennial customer base favored this segment's results. The Commercial Services segment's pre-tax income of $1 billion fell 6% year over year in the third quarter but beat the Zacks Consensus Estimate of $950.5 million. Total revenues, net of interest expense, grew 6% year over year to $4.6 billion, and beat the consensus mark of $4.4 billion. The International Card Services segment posted pre-tax income of $432 million, which declined 2% year over year and missed the Zacks Consensus Estimate of $698.4 million. Total revenues, net of interest expense, climbed 10% year over year to $3.7 billion but missed the consensus mark of $3.8 billion. The Global Merchant and Network Services segment's pre-tax income of $1.1 billion advanced 4% year over year in the quarter under review but missed the Zacks Consensus Estimate of $1.2 billion. Total revenues, net of interest expense, improved 6% year over year to $2.1 billion but came in lower than the consensus mark by 1.5%. Corporate and Other incurred a pre-tax loss of $307 million in the third quarter, narrower than the prior-year quarter's loss of $598 million. American Express exited the third quarter with cash & cash equivalents of $43.2 billion, which fell 9.6% from the 2025-end level. Total assets of $310.3 billion increased 3.4% from the figure at the end of 2025. Long-term debt amounted to $58.5 billion, up 3.8% from the figure as of Dec. 31, 2025. Short-term borrowing was $1.4 billion. Shareholders' equity of $35.8 billion rose 6.9% from the 2025-end level. Return on average common equity stood at 43.6%, compared with 37.3% a year ago. American Express bought back 5 million common shares in the third quarter of 2026 for $1.6 billion and paid $600 million worth of dividends. In the quarter under review, the company paid a per-share dividend of 95 cents. American Express raised its 2026 GAAP EPS guidance to $18.30-$18.60 from its previous projection of $17.30-$17.90. The midpoint of which now indicates an improvement of 20% from the 2025 figure. Management anticipates adjusted EPS to be in the range of $17.60-$17.90 for 2026. The company reaffirmed its expectation of 10% revenue growth for 2026, supported by continued momentum in Card Member spending, customer acquisitions and its premium membership offerings. AXP currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Finance space are American Integrity Insurance Group Inc. AII, Mercury General Corporation MCY and Robinhood Markets, Inc. HOOD, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for American Integrity Insurance's current-quarter earnings of 49 cents per share has remained stable over the past seven days. AII beat earnings estimates in each of the trailing four quarters, with the average surprise being 46.6%. The consensus estimate for current-quarter revenues is pegged at $105.4 million, implying 70.1% year-over-year growth. The Zacks Consensus Estimate for Mercury General's current-quarter earnings of $3.35 per share has remained stable over the past 60 days. MCY beat earnings estimates in each of the trailing four quarters, with the average surprise being 70.2%. The consensus estimate for current-quarter revenues is pegged at $1.6 billion, calling for 8.8% year-over-year growth. The Zacks Consensus Estimate for Robinhood Markets' current-quarter earnings is pegged at 56 cents per share and has witnessed one upward revision in the past seven days against no movement in the opposite direction. HOOD beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 15.1%. The consensus estimate for current-quarter revenues is pegged at $1.4 billion, calling for 13.1% year-over-year growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Express Company (AXP) : Free Stock Analysis Report Mercury General Corporation (MCY) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report American Integrity Insurance Group, Inc. (AII) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Synchrony Financial SYF reported third-quarter 2026 adjusted earnings per share (EPS) of $2.68, which surpassed the Zacks Consensus Estimate by 8.1%. However, the bottom line decreased 6.3% year over year. Net interest income increased 1.9% year over year to $4.8 billion but missed the consensus estimate by 0.6%. The growth was driven by higher average loan receivables and lower funding costs. The quarterly earnings were aided by strong purchase volume and improved credit performance. However, higher operating expenses and an increase in the provision for credit losses partly offset these positives. Synchrony Financial price-consensus-eps-surprise-chart | Synchrony Financial Quote Retailer share arrangements (RSA) of Synchrony advanced 7% year over year to $1.1 billion in the third quarter. Total loan receivables were $103.3 billion, up 3.2% year over year. The figure missed the Zacks Consensus Estimate of $103.5 billion as well as our estimate of $104 billion. Total deposits increased 3.8% year over year to $83 billion but missed our estimate of $83.9 billion. Provision for credit losses increased 10.5% year over year to $1.3 billion, primarily due to a reserve build of $30 million compared with a $152 million release in the prior-year quarter, partially offset by lower net charge-offs. However, the reported figure came in below our estimate of $1.5 billion. Synchrony's purchase volume rose 8% year over year to $49.7 billion, supported by broad-based spending growth across credit cohorts and generations. The figure beat the consensus estimate of $49.2 billion and our estimate of $48.5 billion. Interest and fees on loans increased 1.5% year over year to $5.6 billion. The increase was driven by higher average loan receivables. Net interest margin contracted 12 basis points year over year to 15.5% but came in line with the Zacks Consensus Estimate. Average active accounts remained flat year over year to 68.3 million, missing the Zacks Consensus Estimate of 68.8 million and our estimate of 68.9 million. Total other expenses increased 9.9% year over year to $1.4 billion, above our estimate of $1.3 billion. The efficiency ratio deteriorated 330 basis points year over year to 35.9%, which outpaced the Zacks Consensus Estimate of 34.03%. Home & Auto period-end loan receivables increased 2% year over year in the third quarter. Purchase volume rose 9.1% year over year, supported by new programs, select furniture retailers and higher gas prices. Interest and fees on loans rose 0.8% year over year. Digital period-end loan receivables advanced 3.1% year over year. Purchase volume increased 4.8%, driven by strong customer engagement across diversified partners. Interest and fees on loans rose 1.4% year over year. Diversified & Value period-end loan receivables increased 8.5% year over year. Purchase volume increased 12.8%, driven by partner expansion and higher gas prices. Interest and fees on loans increased 3.9% year over year. Health & Wellness period-end loan receivables increased 0.8% year over year. Purchase volume increased 2.7% year over year, supported by growth in Pet, partly offset by lower Audiology and Cosmetic spending. Interest and fees on loans advanced 1.6% year over year. Lifestyle period-end loan receivables decreased 0.6% year over year in the third quarter. Purchase volume rose 5.8%, reflecting new program growth and higher spending in Other Apparel and Goods and Luxury. Interest and fees on loans remained flat year over year at $264 million. Synchrony exited the third quarter with cash and equivalents of $15.9 billion, which increased from the 2025-end level of $15 billion. Total assets of $122.5 billion increased from the 2025-end figure of $119.1 billion. SYF had total liquid assets of $19.5 billion, accounting for 15.9% of its total assets. Total borrowings were $17 billion, up from $15.2 billion as of Dec. 31, 2025. Total equity of $16.6 billion decreased from the 2025-end figure of $16.8 billion. Return on assets declined 70 basis points to 2.9%. Return on equity was 21%, which decreased 410 bps year over year. Synchrony returned $1.2 billion to its shareholders, comprising $1.1 billion in share repurchases and $110 million in common stock dividends. The remaining share repurchases authorization stood at approximately $4.6 billion as of Sept. 30, 2026. Synchrony continues to anticipate mid-single-digit growth in period-end loan receivables. Strong purchase volume growth is expected to continue throughout 2026. The payment rate is expected to remain high. The company now expects full-year 2026 earnings of approximately $9.50 per share, compared with the previously guided range of $9.25-$9.50. RSA, as a percentage of average loan receivables, is increasing, reflecting strong program performance and is expected to remain within the 4-4.5% target range. SYF currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Finance space are American Integrity Insurance Group, Inc. AII, Mercury General Corporation MCY and Robinhood Markets, Inc. HOOD, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for American Integrity Insurance's current-quarter earnings of 49 cents per share has remained stable over the past seven days. AII beat earnings estimates in each of the trailing four quarters, with the average surprise being 46.6%. The consensus estimate for current-quarter revenues is pegged at $105.4 million, implying 70.1% year-over-year growth. The Zacks Consensus Estimate for Mercury General's current-quarter earnings of $3.35 per share has remained stable over the past 60 days. MCY beat earnings estimates in each of the trailing four quarters, with the average surprise being 70.2%. The consensus estimate for current-quarter revenues is pegged at $1.6 billion, calling for 8.8% year-over-year growth. The Zacks Consensus Estimate for Robinhood Markets' current-quarter earnings is pegged at 55 cents per share and has witnessed four upward revisions in the past 30 days against one movement in the opposite direction. HOOD beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 15.1%. The consensus estimate for current-quarter revenues is pegged at $1.4 billion, calling for 11.4% year-over-year growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Synchrony Financial (SYF) : Free Stock Analysis Report Mercury General Corporation (MCY) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report American Integrity Insurance Group, Inc. (AII) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 9:30 a.m. ET Founder and Chief Executive Officer-Robert Craig Ritchie Chief Financial Officer-Brian Foley Need a quote from a Motley Fool analyst? Email [email protected] Operator: Hello and thank you for standing by. My name is Joel and I will be your conference operator today. At this time, I would like to welcome everyone to the American Insurance Group second quarter 26 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question, please press 1 to raise your hand. To withdraw your question, press 1 again. As a reminder, this call is being recorded. But before we begin, please note that today's remarks may contain forward-looking statements. Including comments about the company's outlook, strategy, plans, and expected performance. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially. A full discussion of the risk factors can be found in the company's SEC filings, including its most recently filed annual report on Form 10-K and quarterly report on Form 10 Q. Management undertakes no obligation to update any forward-looking Furthermore, today's remarks may contain non GAAP financial measures. A reconciliation of non GAAP financial measures to their most comparable GAAP measures is included in the company's quarterly press release and can also be found on its website at www.aii.com. References to American integrity or the company prior to the consummation of the IPO refer to American Integrity Insurance Group LLC and after the consummation of the IPO, refer to American IPO, refer to American Integrity Insurance Group Inc. With that, I will turn the call over to American Integrity's founder and chief executive officer, Bob Ritchie. Please go ahead. Robert Craig Ritchie: Thank you, and good morning, everyone. We had an outstanding second quarter with record performance across several important measures. And meaningful acceleration across our major strategic growth initiatives. Last quarter, we wrote approximately 43 thousand voluntary new business policies during the quarter. This is a company record. First time ever. Representing growth of approximately 54%. Compared with the second quarter of last year. And 44% sequentially from the first quarter of this year, compared with the second quarter of last year, and 44% sequentially from the first quarter of this year. And at the same time, we generated a record 46.4 million of income before taxes. A record for the entire company for a single quarter. I am happy to report we also ended the quarter with more than 1 billion of in-force premium and approximately 462 thousand policies in force. These are both important milestones. And they demonstrate the scale our platform is achieving. Taken together, we believe these results demonstrate the increasing strength of American Integrity's organic growth engine. it is never been stronger The platform we have built for over 2 decades is generating meaningful voluntary growth through our established distribution relationships. And while the improved Florida insurance environment is allowing us to expand thoughtfully in the markets and risk categories we have significant experience and underwriting expertise. As we discussed last quarter, we believe voluntary market opportunities, expansion into very attractive segments. Of the Florida market and thoughtfully selected geographic expansion throughout the Southeast. All 3 of these will drive our growth. We believe that the second quarter provided further evidence that these initiatives are working and more importantly, our momentum is broad based. As many of you know, over these last several quarters, we have consistently highlighted 3 primary areas of opportunity. 1. The Tri County region of Florida. 2. Middle aged homes, And 3. our expansion states in the Southeast. During the second quarter, I am pleased to report that every 1 of these initiatives continues to gain meaningful traction. Let's start with Tri County. We wrote more than 7.6 thousand voluntary new business policies during the quarter. Now, this compares to less than 200 in the prior year period. that is obviously a 40x increase. Second, in middle aged homes, we wrote more than 9 thousand voluntary new business policies during the quarter. This compares to less than 450 in the prior year period. that is a 21x increase. These are particularly attractive areas for us. Because they represent markets and risks where we have considerable underwriting expertise and experience, historical data, and importantly, very deep and long standing existing agency relationships. So we are not pursuing growth by moving outside our core competencies. As the economics of the Florida insurance market have improved. We are expanding participation in markets that we know very well. Importantly, our voluntary growth is being generated. Through our traditional distribution channels and underwriting platform. And we believe that type of growth creates a broader, more sustainable, and increasingly diversified earnings engine for American integrity. Outside of Florida, production also accelerated very meaningfully. As we continued to expand our presence across the Southeast. During the second quarter, new business policies written in Georgia, South Carolina, and North Carolina increased 40% year-over-year, up from a 23% increase year-over-year in just Q1 2026. Momentum is happening. These markets complement our existing builder, and agency distribution relationships and they provide another avenue for disciplined organic growth. While all these markets remain a relatively small portion of our overall portfolio today. We believe they represent a very attractive opportunity to generate profitable growth while we further diversify our business over time. These markets also allow us to deepen our relationships with existing homeowner affiliated agents. And other distribution partners, both nationally and regionally. Who already know American Integrity and want to do more business with us across multiple markets. Another important driver of our success continues to be our distribution network. What is particularly notable about our recent growth is that it is being driven primarily by long standing agency relationships rather than brand new distribution partnerships. For markets such as Tri County, middle aged homes, our agency partners already know our underwriting philosophy, They understand our operating platform. And they are ready to respond as we expand our appetite for these risks. We continue to hear a consistent message from our agents. They value stability, responsiveness, and ease of doing business. We are also seeing increased engagement from agency partners who are looking to consolidate more of their business with a smaller number of trusted carriers and we are 1 of them. We believe our service level, our underwriting consistency, and our long standing commitment to the market position us extremely well to capture a larger share of business within existing agency relationships. Now this is a very important competitive advantage that is unique to American integrity. Much of our strongest group again, is coming from these established relationships. So we believe this allows us not only to generate more submissions, more volume, but also to attract very high quality business from partners who understand who we are and what we write. That is the value of the distribution franchise that has taken over 20 years to build. This leads to another really important point. The evidence continues to reinforce our view. That Florida's legislative reforms are producing the intended results from the reform almost 4 years ago. Litigation activity for the entire industry, especially for us, continues a solid decline Loss-cost trends remain very favorable, and reinsurance pricing has meaningfully improved. At the same time, consumers are beginning to benefit. With increased insurance availability and more moderate pricing. We view the current environment as evidence of a very healthy and sustainable marketplace. And there is not irrational competition. Importantly, as consumers increasingly experience these benefits, We believe the reforms become more durable over time. From our perspective, that durability creates a much more stable operating environment for both insurers and policyholders. So despite a somewhat softer market environment nationally, our premium per policy remains generally stable across our portfolio. Given the mix shift of our portfolio. Growth in higher valued homes, Tri-County, middle-aged homes, and commercial residential business. Have largely offset modest rate reductions elsewhere in the book. Additionally, our inflation guard provides support. As rates modestly decline. Overall, we believe we are entering the second half of this year. We will roll into it. From a position of considerable strength. We are generating record voluntary production We are expanding successfully and thoughtfully across multiple growth channels for benefiting from favorable market dynamics. All while maintaining very attractive. Underwriting economics. We believe that combination of expanding the long term earning power of American integrity. With that, let me now turn the call over to John. Jon Phillip Ritchie: Thanks, Bob. I will spend a few minutes going a bit deeper on what we are seeing in the business and how that is translating into our results. And then provide an update on our recently completed catastrophe reinsurance renewal. Starting with our results, we continue to see strong growth in our core Florida market and across our expansion states in the Southeast. During the second quarter, gross premiums written increased 13.8% to approximately $327 million dollars Retention continued to climb to 84.4% up from 83.6% in the first quarter, and policies in force increased to approximately 462 thousand up 15.7% year over year and 5.6% sequentially from the first quarter. The growth reflects strong voluntary production across the business. Looking first at Tri County, production levels are encouraging. But we remain substantially underpenetrated relative to the size of the opportunity. As a reminder, Tri County represents approximately 28% of Florida households while accounting for only a modest portion of our current policies in force. We believe this represents substantial opportunity for profitable growth over time. In addition, approximately 1-third of our Florida voluntary new business gross premium written production during the quarter came from Tri County policies. Compared with only a very small contribution in the prior-year quarter. Highlighting the momentum we are currently seeing in the market. We believe we have strong support from our distribution partners increasing consumer demand and favorable economics that will allow us to pursue growth while maintaining our underwriting discipline. The same is true for middle-aged homes. As we have discussed previously, this was historically the core of our business and an area where we have deep underwriting experience and long standing agency relationships. We reduced our participation in this market during the height of Florida's litigation crisis, and the legislative reforms have enabled us to reenter this segment in a measured and profitable way. Since expanding our participation, results have been very encouraging. Middle-aged homes represented 24% of our voluntary new business gross written premium, during the quarter compared to approximately 4% in the prior year period. We view this as an attractive opportunity because it combines significant market size with an area where we have considerable operating history and underwriting expertise. Importantly, we believe both Tri-County and middle-aged homes provide meaningful growth opportunities without requiring us to depart from our core underwriting competencies. Outside of Florida, our expansion states continue to gain traction. During the second quarter, new business policies written in Georgia, South Carolina and North Carolina increased 40% year-over-year, while new business gross premiums written increased 50%. These states represented approximately 18% of voluntary new business policies and 10% of voluntary new business gross premiums written during the quarter. While still a relatively small contributor to our overall portfolio today, we believe these results demonstrate the portability of our distribution relationships and operating model. When we entered these new states, we led with our HO3 product. Given the success we have experienced thus far, we are now evaluating opportunities to broaden our product offerings outside Florida. Including products such as dwelling and marine, our agents have demonstrated demand, We intend to approach that expansion with the same discipline we have applied to our geographic growth. Turning to reinsurance. I am very pleased with the outcome of our June 1 catastrophe excess of loss renewal. We successfully renewed our program with meaningful risk adjusted rate reductions at the upper end of the 15% to 20% declines observed in the market while maintaining our target protection levels and improving our overall retention structure. Despite approximately 19% growth in peak season exposure, our first event retention remained unchanged at 35 million. Additionally, our aggregate 4-event retention declined from $95 million to 75 million further improving our net risk profile. We also maintained our program at a targeted 1 in 1 hundred and 30 year probable maximum loss level. We believe this outcome reflects both favorable market conditions and the strength of our long standing reinsurance relationships. The renewed program provides approximately $3 billion of total catastrophe protection including approximately 2.25 billion of third party coverage for a single catastrophic event. In short, we achieved lower risk adjusted pricing maintained our targeted protection level, and reduced our aggregate retention. All while growing peak season exposure by approximately 19%, we believe that is an excellent outcome. The improved economics of the renewal reflect both favorable reinsurance market conditions and the continued benefits of Florida's legislative reforms. We continue to believe reinsurance tailwinds will be an important contributor to earnings and capital generation moving forward. We appreciate the long standing support of all of our reinsurance partners. Before turning things over to Brian, I want to briefly remind investors that our expected annual catastrophe reinsurance costs remains consistent with the $430 million to $440 million range we provided in connection with our June 1 renewal announcement. To conclude, we believe the operating environment remains highly constructive. Production is strong. Our major growth initiatives continue to gain traction. Our geographic expansion is progressing. And our renewed reinsurance program provides strong protection with improved economics. With that, let me turn the call over to Brian to walk through the financials. Brian Foley: Thanks, John. We generated net income of $34.1 million or $1.74 per diluted share and adjusted net income of $34.9 million or $1.78 per diluted share during the second quarter. This compares to net income of $27.5 million or $1.62 per diluted share and adjusted net income of $31.3 million or $1.84 per diluted share in the prior year period. Income before taxes was $46.4 million an increase of 93% from $24.1 million in the prior year quarter and the highest quarterly level in the company's history. The comparison to the prior year period was influenced by elevated citizens takeout activity during 2025, which created a temporary benefit to earnings and our IPO in the second quarter of 25, which resulted in onetime expenses. Turning to premiums. Gross premiums written increased to 326.6 million compared to $287 million in the prior year period representing an increase of 13.8%. This growth was driven by continued expansion in the voluntary market across our key growth initiatives. Gross premiums earned increased 8.3% to $242.3 million compared to 223.7 million in the prior year period. Seated premiums earned decreased to a $137.6 million compared to 157.6 million in the prior-year period. driven primarily by the reduction in our non catastrophe quota share cession from 40% to 25% beginning in 01/01/2026. As a result, net premiums earned increased 58.2% to $104.7 million compared to $66.2 million in the prior year period. There are 2 important forces driving this step up in net earned premiums. Strong underlying growth in the business and our decision to retain a greater portion of the economics of that business following the quota share reduction. We believe the combination is allowing more of the value created by our underwriting platform to accrue to American Integrity and its stockholders. Net investment income increased 30.8% to $6.3 million compared to 4.8 million in the prior year period. Shortly after quarter end, we deployed just shy of $200 million of cash into high quality fixed income securities, which positions us well for continued growth in investment income going forward. We expect our duration of approximately 2 years our credit quality, and asset mix to remain largely consistent with how we previously managed our investments following the reallocation of cash. Loss and loss adjustment expenses increased 33.2 million compared to $21.2 million in the prior year period. Primarily reflecting growth in net premiums earned driven by continued voluntary production and the reduction in our non-cat quota share arrangement. Our net loss ratio was 30.6%, consistent with 30.6% in the prior-year period. our net underlying loss and loss adjustment expense ratio was 30.6 down from 33.1% in the prior year period. There were no cat losses and no prior-year development recognized during the quarter. Our gross underlying loss and loss adjustment expense ratio was 18.1% during the quarter, which we continue to view as a very attractive result and feel good about both the quality and pricing of the business we are writing today. Policy acquisition expenses increased to 17.4 million compared to $6.3 million in the prior year period. The increase was primarily driven by record levels of voluntary new business production, the absence of the Citizens takeout windfall, which carries minimal upfront acquisition costs, and lower ceding commission income resulting from the reduction in our quota share. General and administrative expenses decreased to $18.2 million compared to 22.9 million in the prior year period primarily driven by the absence of onetime IPO expenses recognized in the second quarter of 25 partially offset by the reduction of our quota share. Our expense ratio decreased to 32.8% compared to 42.3% in the prior year period. The combined ratio for the quarter was 63.4% compared to 72.9% in the prior-year period. We believe the 63.4% combined ratio demonstrates the attractive underwriting economics of the business particularly alongside the strong growth we generated during the quarter. Return on equity was 38.7%, in the quarter compared to 45.1% in the prior-year quarter, and adjusted return on equity was 39.6% in the quarter, compared to 51.3% in the prior-year quarter. As a reminder, the reduction of the quota share increased revenue and earnings but also increased the absolute dollars of expenses given lower ceding commission income and fewer non cat losses ceded away. This, along with Citizens' takeout benefits in 2025 make the year over year changes in some line items and ratios less directly comparable. We believe the underlying trajectory of our business remains strong. Stepping back, we believe the quarter demonstrates a powerful combination of strong organic growth disciplined underwriting, and increasing retention of the economics generated by our platform. Turning to our balance sheet. Shareholders' equity increased to $369.5 million at quarter end compared to $337 million at year end Book value per share increased to $18.86 representing growth of 22.3% year over year and 10.1% since Q1 26. We view book value growth as an important measure of the value we are creating for our stockholders, the increase in shareholders' equity reflects strong earnings generation and continued growth in the business, we believe our capital position provides substantial flexibility as we pursue the opportunities ahead of us. With that, I will turn the call back to the operator to open the line for questions. Operator: We will now begin the question-and-answer session. If you would like to ask a question, To withdraw your question, press 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please standby while we compile the Q&A roster. Your first question is from Michael Phillips with Oppenheimer. Your line is now open. Please go ahead. Michael Phillips: Thank you. Good morning, everybody, and congrats on the quarter. First question is on the middle-aged home business. it is new for you or not new for you, but a new foray back into it. As that continues to grow, become a bigger part of your overall book, how do you compare the margin on that business to what is been your traditional business so far? Robert Craig Ritchie: Michael Bob Ritchie. Thank you for the question. I am going to start out, John, you can amplify it. Jon Phillip Ritchie: I want to assure you the way we are pricing, underwriting, selecting, binding, renewing. in middle-aged homes is entirely consistent with our combined ratio plans with the pure premium that we are observing, and most importantly, with the way that the underwriting team is looking at these risks and also ensuring that as it reaches potentially on the older part of its average age, that a new roof will be applied. So net, we are enjoying the same margins on this book as others. John, can you amplify that? Robert Craig Ritchie: Yeah. Just to expand on that. Jon Phillip Ritchie: We model and expect the underlying gross loss ratio to be a few points higher than the overall portfolio. But as Bob said, the premium we are collecting accommodates for that. So we are very happy with the business that we are generating and the long term profitability of that segment. Michael Phillips: I will also tell you, Mike. Robert Craig Ritchie: No problem. Yeah. I will give you an example. Go ahead. Michael Phillips: No, Bob. I did not mean to cut you off. Sorry. Robert Craig Ritchie: No. that is OK. Orange County, Orlando. We are we are back in a substantial market share opportunity, where before the reform happened, for protection, we had to reduce that. So in many cases, we are writing with the same agents, even some of the same alts. I am really bullish. About middle aged homes and what it is driving for us. Michael Phillips: Okay. Yeah. Thank you. that is that is very helpful. The second question, Bob, is I wanna ask you a little bit 1 of the comments you made at the end of your opening remarks. You said not gonna give the exact words, but something about as reforms become more durable over time in Florida, I wanna ask on that is what you meant by that because I guess what I have was thinking was that reforms are here. It seems to be their proof that they are working. That maybe already are adorable. And the reason I asked, Bob, is you know, it is the forms have clearly been in place for a couple years now a few years now, and I wonder if the rate environment has kept up with the benefits we have seen from the reforms. So it is but often there is a lag in when those 2 things happen. And maybe some of the lag has been, hey. We are not sure the reforms are stay. They are gonna work. And I think now there is confidence that they are. But I wonder that is why I am asking, know, what you meant by is reforms to go more durable. Robert Craig Ritchie: Sure. So my comments were not meant to be either tentative or temporary. My comments relate directly to the strength of Florida in as much as both public and private investors are returning. Now as respects the rate environment, 3 things drive rate increases. the what I call the lawyer tax which the 2022 slash 2023 reforms more than solved. Those have been worked through the system largely with all carriers. In the form of rate reductions because the loss costs are left. But what is also a dynamic for rate increases are reinsurance John talked about, and then, of course, inflation. Inflation's not zero, so we are still pegging it. Because of the increase in severity and increase in coverage a. Reinsurance has enjoyed a remarkable reduction, and for that, we have positioned product so that as you look at the entire pricing dynamic, that has been accomplished. So my comment on it is in no way meant to imply that it is tentative, yet to be realized, it is the strength of the investors that are returning to Florida that truly is allowing for new markets allowed us to go public, and has restored confidence throughout the world with investors and reinsurers. that is the topic. Michael Phillips: Okay. No. that is super clarification. Thank you for that. And, again, congrats on the quarter. Robert Craig Ritchie: Appreciate the question. Operator: Your next question is from Thomas Mcjoynt-Griffith with KBW. Your line is now open. Please go ahead. Thomas Mcjoynt-Griffith: Hey, good morning. Thanks for taking our questions. To start off, in the third quarter of last year, when there was no major hurricane loss, the quota share reinsurance created some noise resulting in a big upswing in the net underlying loss ratio. Can you talk about what we can expect in that net underlying loss ratio in the third quarter of this year if knock on wood, we get a similarly benign weather pattern. Thanks. Robert Craig Ritchie: Sure. Sure. I am gonna ask John to start out, and, John, we can rely upon Brian. Jon Phillip Ritchie: For some of the optics. Go ahead. Robert Craig Ritchie: Yeah. Brian Foley: Brian, why do not you take this 1? Yeah. Yeah. So Tommy the quota share is a non-cat quota share, but it actually allows us to see the some de minimis cat losses to that treaty. So what you said was correct whereby in a clean cat year, that kinda creates a little bit of elevated core loss ratio in that quarter. But then what happens is we actually get that back through increased seeding commission going forward, but we do not kinda settle that until the end of the treaty, which would be in Q4. So there is a little bit of, timing dynamics there. Thomas Mcjoynt-Griffith: Okay. Got it. That makes sense. And then switching over, you are generating very strong, you know, ROEs this year. But you are still growing net premiums pretty significantly too, especially with the quota share reinsurance coming down. Can you talk about your capacity for how much room you still have to grow? Should we be simply looking at premium leverage, or are there other measures that help frame your capacity? Jon Phillip Ritchie: Yeah. Thanks for the question, Tommy. Look, Robert Craig Ritchie: We feel very good about the trajectory of our growth, and we certainly have the capital to continue to do that. We will see what the wind season has in store for us, but you should feel pretty confident that we can continue to execute with our current capital base. When you look at all the numbers in terms of gross net writings, RBC ratios, all very, very healthy. We got the wherewithal. We have got the capital. To continue this remarkable and historic growth rate. Thomas Mcjoynt-Griffith: Thank you. Operator: Your next question is from Paul Newsome with Piper Sandler. Your line is now open. Please go ahead. Jon Paul Newsome: Good morning. Thanks for the call. Maybe a few additional thoughts on and color on the new products that you are implementing. sounds like these are a little bit different from a maybe demographic. I think it is dwelling fire as being sort of more modest homes. Good. And I am curious as well about the impact that would have on sort of the overall portfolio. Particularly from a-- Yep. Robert Craig Ritchie: Morning, Paul. Thanks for the question. John. Jon Phillip Ritchie: And they are new to states, not to us. Can you explain, John, what you meant by that comment? The follow-up we are doing is so we launched in Georgia South Carolina and North Carolina just for the homeowners' line of business. What we are looking to do and we are building out for the remainder of this year to launch in 2027 is a dwelling fire product and a marine small boat owner product that we currently have in Florida but our agency partners in those states have requested that we broaden the portfolio offering in those 3 states, so that is what we meant by that. So it is complementary in terms of what we are doing in Florida. We are just expanding in those 3 states with those lines. Jon Paul Newsome: You know, maybe a little bit of an update on, you know, what you think is happening with your, you know, probable maximum loss and your overall catastrophe exposure as you are expanding both the Tri-County area, but also in the southeast. You know, is PML going up, or is there a diversification benefit? And how should we think about that? Robert Craig Ritchie: Thoughtful question, John. Can you talk about the balance we are achieving? Jon Phillip Ritchie: Yeah. Absolutely. So, certainly, PML is increasing just with exposure growing at the rate that it is, but it is not at the same rate of exposure growth for exactly the reason that I think you were leading to Paul is the growth in Tri County, and the reemergence back into Central Florida with middle aged homes is allowing diversification of the PML from an exposure perspective and taking some pressure off some peak zones that we had prior to this expansion and diversification of writings. So we view it as accretive net, and we are really pleased with the way that balanced out for our June 1 renewal and as we look out for next year's renewal. Jon Paul Newsome: Thanks, guys. Congratulations. Robert Craig Ritchie: Of course. Thanks, Paul, for your support and questions. Operator: Your next question is from Mitchell Rubin with Raymond James. Your line is now open. Please go ahead. Mitchell Rubin: Hey, good morning. This is Mitch on for Greg. You mentioned in the prepared remarks that you deployed around the $200 million into fixed income securities after the quarter. What yield are you earning on that relative to your book yield? And how should we think about net investment income in the third and fourth quarters against the tougher post IPO comp? Operator: Go ahead, Brian. Brian Foley: Yeah. Thanks, Mitchell. So we did take 200 million of cash and deploy that into our fixed income portfolio. After the quarter. I think book yield, you can kinda think about that. In the mid fours. I think new money rates are you know, high fours, maybe even approaching 5 depending on the product. So we expect kind of a continued steady growth in net investment income going forward? Mitchell Rubin: Got it. Thank you. Could you provide some color on what you are seeing in new construction volumes across your builder partners right now? And how sensitive your new business pace is to elevated mortgage rates? Jon Phillip Ritchie: John, can you take that 1? Yeah. So, we certainly have seen a plateau of new builds and new construction in Florida. With that being said, we are still getting a very healthy share of wallet of those new builds with our builder agents. But the diversification of distribution that we enjoy with the builder agents are national accounts, independent agents is allowing us to diversify that production on a daily basis, along with the expansion into our opening up in Tri County and reemergence back into middle-aged homes. So that diversification is allowing us to continue very healthy new business production, which we saw this quarter but we are still receiving a very good share of the new builds in Florida. Robert Craig Ritchie: And so what this means, this is Bob again, is that while the Florida build is still remarkable by the way, lot of people still moving. May have slowed down just a little bit, because of the strength of Dick Dowd in our sales team. Because of the strength of Brent Radeloff, our head underwriter, we are in a position working with our distributors of more than making up for that lesser amount in Florida with the other new states. So net, we are writing the same amount of new construction, new business policies each day, which is exciting. Mitchell Rubin: I appreciate the answers, and congrats on the quarter. Robert Craig Ritchie: Thank you. Operator: We have now reached the end of the Q&A session. I will now turn the call back to Bob for concluding remarks. Thank you, Joel. Robert Craig Ritchie: Guys, I am going to spend just a few minutes, a little bit longer, but closing. Given what this quarter means. But as we close, I want to put this quarter in perspective. For you as investors, reinsurers, shareholders, employees, and leaders of the company. This was an exceptional quarter for American Integrity. And by many measures, the strongest quarter in our company's history for 20 years. We delivered record voluntary new business production and record pre-tax earnings we surpassed 1 billion of in force premium We generated strong returns, broaden our opportunities for growth as we have explained here to you. We have improved our reinsurance economics. These results demonstrate the increasing strength, scale, and earnings power of American integrity. For nearly 2 decades we have navigated dramatically different market cycles, We have proven through hurricanes, difficult insurance markets, legal crisis, reinsurance disruptions, and all through the extraordinary change. That this company was built, not just to last, but to grow as it is available, and today it is. And so through it all, we have remained grounded in disciplined underwriting, thoughtful risk selection, and responsible stewardship But here's the deal. Numbers alone do not tell the story of this quarter. Our people do. I am extraordinarily proud of the leadership team, and all 350 American Integrity employees Some of you are listening this morning. Behind every result we reported this morning, are people who care deeply about this company. About 1 another, and about the people that we serve. Many of our people have been with us for years. Some for decades. Some for the entire part of our journey. And they have helped build this company through some of the most challenging periods that our industry has ever experienced. They stayed They persevered. They adapted. They continued to believe in 1 another. And in American integrity. Through the good years and the difficult ones, they showed up every day and did the work. They took care of our policyholders. They supported our agency partners. They helped 1 another. And they continue to live the values upon which this company was founded. I want our people to know how deeply grateful I am for what they have given to American integrity, Their commitment, resilience, and belief in this company has helped make everything we reported this morning possible. So in concluding, while today we are celebrating an exceptional quarter, I am even more proud of the company and the culture we have built for over 2 decades. I am equally proud of our leaders across the organization You would be proud of every 1 of them. They understand that leadership is not simply about producing 1 great quarter. it is about building an enduring company. it is about developing people. Making disciplined decisions, protecting our culture, and leaving American integrity stronger for those who follow. That loyalty matters to me. That leadership matters. And that culture matters. Because integrity is not simply our name. it is a standard we have abided by since the first day we have thought of this company. And the culture built around that standard is indeed 1 of our greatest competitive advantages. So to our employees, agency partners, policyholders, investors, and reinsurers. Thank you. These record results belong to all of you. And so as we enter the home stretch of 2026, with tremendous momentum, and exceptional team and a company stronger than at any point in our history. 2 decades ended this of this journey, I have never been more proud of our people or more confident. In American integrity And in closing, I firmly believe our best years are still ahead of us. Thank you for your confidence and American integrity. Have an amazing day. Operator: This concludes today's call. Thank you so much for attending. You may now disconnect. Before you buy stock in American Integrity Insurance Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Integrity Insurance Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $419,408!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,348,694!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 19, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends American Integrity Insurance Group. The Motley Fool has a disclosure policy. American Integrity Insurance (AII) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Net Income: $34.1 million, or $1.74 per diluted share, in Q2 2026, compared to $27.5 million, or $1.62 per diluted share, in the prior year period. Adjusted Net Income: $34.9 million, or $1.78 per diluted share, in Q2 2026, compared to $31.3 million, or $1.84 per diluted share, in the prior year period. Income Before Taxes: $46.4 million, a record for the company, up 93% from $24.1 million in the prior year quarter. Gross Premiums Written: Increased 13.8% to approximately $327 million, up from $287 million in the prior year period. Gross Premiums Earned: Increased 8.3% to $242.3 million, compared to $223.7 million in the prior year period. Net Premiums Earned: Increased 58.2% to $104.7 million, compared to $66.2 million in the prior year period. Net Investment Income: Increased 30.8% to $6.3 million, compared to $4.8 million in the prior year period. Net Loss Ratio: 30.6%, consistent with the prior year period. Net Underlying Loss and LAE Ratio: 30.6%, down from 33.1% in the prior year period. Gross Underlying Loss and LAE Ratio: 18.1% during the quarter. Expense Ratio: Decreased to 32.8%, compared to 42.3% in the prior year period. Combined Ratio: 63.4%, compared to 72.9% in the prior year period. Return on Equity: 38.7% in the quarter, compared to 45.1% in the prior year quarter. Adjusted Return on Equity: 39.6% in the quarter, compared to 51.3% in the prior year quarter. Book Value Per Share: $18.86, representing growth of 22.3% year over year and 10.1% since Q1 2026. Policies in Force: Approximately 462,000, up 15.7% year over year and 5.6% sequentially. Retention: Climbed to 84.4%, up from 83.6% in the first quarter. Voluntary New Business Policies: Approximately 43,000 written during the quarter, a company record, representing growth of approximately 54% year-over-year and 44% sequentially. Tri-County Voluntary New Business Policies: More than 7,600 written during the quarter, compared to fewer than 200 in the prior year period. Middle-Aged Homes Voluntary New Business Policies: More than 9,000 written during the quarter, compared to fewer than 450 in the prior year period. Expansion States New Business Policies: Increased 40% year-over-year in Georgia, South Carolina, and North Carolina. Expansion States New Business Gross Premiums Written: Increased 50% year-over-year. Catastrophe Reinsurance Cost: Expected annual cost remains consistent with the $430 million-$440 million range. Warning! GuruFocus has detected 6 Warning Signs with BSP:BLAU3. Is AII fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record voluntary new business policies written in Q2 2026, up 54% year-over-year and 44% sequentially, driven by strong growth in Tri-County and middle-aged homes. Record pre-tax income of $46.4 million for the quarter, the highest in company history, with a combined ratio of 63.4% demonstrating strong underwriting economics. Successful June 1 catastrophe reinsurance renewal with risk-adjusted rate reductions at the upper end of market declines, maintaining target protection levels and reducing aggregate retention. Strong growth in expansion states (Georgia, South Carolina, North Carolina) with new business policies up 40% year-over-year, showing successful geographic diversification. Improved net loss ratio and underlying loss ratio, with no catastrophe losses or prior year development recognized during the quarter. Deployment of approximately $200 million into fixed income securities positions the company for continued growth in investment income. Elevated Citizens takeout activity during 2025 created a temporary benefit to earnings, making year-over-year comparisons less favorable. Policy acquisition expenses increased significantly due to record voluntary new business production and lower ceding commission income from quota share reduction. The reduction in the non-catastrophe quota share from 40% to 25% increased revenue but also increased absolute expenses, impacting expense ratios. Return on equity decreased to 38.7% from 45.1% in the prior year quarter, partly due to the quota share changes and one-time IPO expenses. Potential for elevated net underlying loss ratio in Q3 if a benign weather pattern occurs, due to timing dynamics in the quota share treaty settlement. New construction volumes in Florida have plateaued, requiring diversification into other markets to maintain production levels. Q: As middle-aged home business grows and becomes a bigger part of your growth book, how do you compare the margin on that business to your traditional business?A: Bob Ritchie (Founder and CEO) stated that the company prices, underwrites, selects, binds, and renews these risks entirely consistently with their combined ratio plans and observed pure premiums. Jon Ritchie (CFO) added that while they model the underlying gross loss ratio to be a few points higher than the overall portfolio, the premium collected accommodates for that, making them very happy with the long-term profitability of that segment. Q: Can you talk about what we can expect in the net underlying loss ratio in the third quarter of this year if we get a similarly benign weather pattern as last year?A: Brian (Executive) explained that the non-cat quota share treaty allows them to cede some de minimis cat losses, which can create a slightly elevated core loss ratio in a clean cat year. However, they receive that back through increased ceding commission, which is settled at the end of the treaty in Q4, creating some timing dynamics. Q: You're generating very strong ROEs this year, but still growing net premiums significantly. Can you talk about your capacity for how much room you still have to grow?A: Brian (Executive) stated they feel very good about the trajectory of their growth and have the capital to continue executing with their current capital base. Bob Ritchie (CEO) added that all their numbers, including gross net writings and RBC ratios, are very healthy, giving them the wherewithal to continue their historic growth rate. Q: Could you provide some color on what you're seeing in new construction volumes across your builder partners and how sensitive your new business pace is to elevated mortgage rates?A: Jon Ritchie (CFO) noted a plateau in new builds in Florida, but they are still getting a very healthy share of wallet with builder agents. The diversification of distribution through builder agents, national accounts, and independent agents is allowing them to continue very healthy new business production. Bob Ritchie (CEO) added that despite a slight slowdown in Florida, they are more than making up for it with new states, writing the same amount of new construction policies each day. Q: You mentioned deploying around $200 million into fixed income securities after the quarter. What yield are you earning on that relative to your book yield, and how should we think about net investment income in the third and fourth quarters?A: Brian (Executive) said the book yield is in the mid-4s, while new money rates are in the high 4s, possibly approaching 5% depending on the product. They expect continued steady growth in net investment income going forward. Q: Can you provide some thoughts on the new products you're implementing, like Dwelling Fire, and the impact that would have on the overall portfolio?A: Jon Ritchie (CFO) clarified that these products are new to the expansion states, not to the company. They launched in Georgia, South Carolina, and North Carolina with homeowners, and are building out to launch Dwelling Fire and Marine small boat owner products in 2027, which are currently offered in Florida. Agency partners in those states have requested the broader portfolio offering. Q: What is happening with your probable maximum loss (PML) and overall cat exposure as you expand in the Tri-County area and other states? Is PML going up or is there a diversification benefit?A: Jon Ritchie (CFO) stated that PML is increasing with exposure growth, but not at the same rate due to diversification. The growth in Tri-County and the reemergence into Central Florida with middle-aged homes is allowing diversification of the PML from an exposure perspective, taking pressure off some peak zones. They view this as accretive net-net. Q: You mentioned reforms becoming more durable over time in Florida. What did you mean by that, and has the rate environment kept up with the benefits seen from the reforms?A: Bob Ritchie (CEO) clarified his comments were not tentative, but related to the strength of Florida as public and private investors return. He explained that rate increases are driven by the "lawyer tax" (solved by 2022/23 reforms), reinsurance (which has seen remarkable reductions), and inflation. The pricing dynamic has been accomplished, and the return of investors is restoring confidence throughout the world. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record voluntary new business growth of 54% year-over-year, driven by the strongest organic growth engine in the company's 20-year history. Performance was bolstered by Florida's legislative reforms, which have led to a solid decline in litigation activity and favorable loss-cost trends. Strategic expansion into the Tri-County region and middle-aged home segments saw voluntary new business policy production increase 40x and 21x respectively year-over-year., leveraging deep underwriting expertise and existing agency relationships. The company surpassed $1 billion of in-force premium, demonstrating significant platform scale and the ability to capture market share as competitors exit or stabilize. Management attributes the quarter's success to a 'disciplined organic growth' model that prioritizes established distribution channels over brand-new partnerships. Premium per policy remains stable as growth in higher-valued homes and commercial residential business offsets modest rate reductions elsewhere in the portfolio. Management expects continued momentum in the Southeast expansion states (GA, SC, NC), which saw a 40% increase in new business policies this quarter. Plans are underway to broaden product offerings outside Florida to include dwelling fire and marine products by 2027 to meet agency demand. The company anticipates sustained benefits from its June 1 catastrophe reinsurance renewal, which achieved 15% to 20% risk-adjusted rate reductions. Guidance for annual catastrophe reinsurance costs remains steady at the $430 million to $440 million range despite a 19% increase in peak season exposure. Future earnings power is expected to benefit from the strategic decision to reduce the non-catastrophe quota share cession from 40% to 25%, retaining more underwriting economics. The 63.4% combined ratio reflects attractive underwriting economics but was influenced by the absence of catastrophe losses and prior-year development during the quarter. Net investment income is poised for growth following the post-quarter deployment of approximately $200 million in cash into high-quality fixed income securities. Year-over-year expense comparisons are impacted by the absence of one-time IPO expenses from 2025 and the reduction in ceding commission income due to lower quota share levels. The company maintained its targeted 1-in-130 year probable maximum loss (PML) protection level while reducing aggregate 4-event retention from $95 million to $75 million. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that middle-aged homes are priced to achieve margins consistent with the overall portfolio, despite modeling a gross loss ratio a few points higher. Profitability is maintained through strict underwriting requirements, such as requiring new roofs for older properties within the segment. CEO Bob Ritchie clarified that 'durability' refers to the return of global investor and reinsurer confidence, which has stabilized the market. Rate reductions are being passed to consumers as 'lawyer tax' costs decline, while inflation and reinsurance costs remain the primary drivers of future pricing dynamics. While absolute PML is increasing due to total exposure growth, the rate of increase is mitigated by diversification benefits from Tri-County and Southeast expansion. Growth in Central Florida and outside the state is effectively taking pressure off previous peak zones in the portfolio. Management acknowledged a plateau in Florida new builds but noted they are maintaining a high 'share of wallet' with builder partners. The company is offsetting any slowdown in new construction by increasing volume through independent agents and national account channels.

Interested in American Integrity Insurance Group, Inc.? Here are five stocks we like better. Record growth and earnings: American Integrity reported second-quarter net income of $34.1 million, while voluntary new-business policies rose 54% year over year to a record 43,000. In-force premiums surpassed $1 billion, supported by 13.8% growth in gross premiums written. Florida and Southeast expansion: Tri-County and middle-aged homes drove Florida growth, contributing 7,600 and 9,000 new-business policies, respectively. New-business policies in Georgia, South Carolina and North Carolina increased 40%, with potential product expansion planned for 2027. Stronger underwriting and reinsurance position: The combined ratio improved to 63.4% from 72.9%, with no catastrophe losses reported. Reinsurance renewal reduced aggregate four-event retention to $75 million from $95 million, while shareholders’ equity rose to $369.5 million. American Integrity Insurance Group (NYSE:AII) reported record second-quarter earnings and voluntary new-business production, as the Florida-focused property insurer expanded in key in-state markets and continued building its presence across the Southeast. The company generated net income of $34.1 million, or $1.74 per diluted share, for the second quarter of 2026, compared with $27.5 million, or $1.62 per diluted share, a year earlier. Adjusted net income was $34.9 million, or $1.78 per diluted share, compared with $31.3 million, or $1.84 per diluted share, in the prior-year period. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Income before taxes rose 93% year over year to a quarterly record of $46.4 million. Chief Financial Officer Brian Foley said comparisons with the prior year were affected by elevated Citizens takeout activity in 2025, which provided a temporary earnings benefit, as well as one-time expenses associated with the company’s 2025 initial public offering. Founder and Chief Executive Officer Bob Ritchie said the company wrote about 43,000 voluntary new-business policies during the quarter, a company record. That represented growth of approximately 54% from the second quarter of 2025 and 44% sequentially from the first quarter. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be American Integrity ended the quarter with more than $1 billion in in-force premium and approximately 462,000 policies in force. Policies in force increased 15.7% from a year earlier and 5.6% sequentially, while retention rose to 84.4% from 83.6% in the first quarter. Gross premiums written increased 13.8% to $326.6 million, while gross premiums earned increased 8.3% to $242.3 million. Net premiums earned rose 58.2% to $104.7 million, driven by underlying business growth and the company’s decision to retain more of its underwriting economics after reducing its non-catastrophe quota-share cession to 25% from 40% beginning Jan. 1. → First Solar’s Profit Engine Faces a New Policy Test in Washington “The platform we have built for over two decades is generating meaningful voluntary growth through our established distribution relationships,” Bob Ritchie said, adding that the company is expanding in markets and risk categories where it has underwriting experience. Management highlighted growth in Florida’s Tri-County region and in middle-aged homes as two key strategic initiatives. The company wrote more than 7,600 voluntary new-business policies in Tri-County during the quarter, compared with fewer than 200 in the prior-year period. Tri-County represented roughly one-third of the company’s Florida voluntary new-business gross written premium during the quarter. Jon Ritchie, the company’s president, said Tri-County accounts for about 28% of Florida households but remains a modest portion of American Integrity’s current policy count, leaving room for further expansion. The company also wrote more than 9,000 voluntary new-business policies for middle-aged homes, compared with fewer than 450 a year earlier. Those homes represented 24% of voluntary new-business gross written premium, up from approximately 4% in the prior-year quarter. Management said it had reduced its participation in middle-aged homes during Florida’s litigation crisis, but legislative reforms enabled a measured return to the segment. In response to an analyst question, Jon Ritchie said the company expects the underlying gross loss ratio for middle-aged homes to be “a few points higher” than its overall portfolio, though the premiums being collected are intended to accommodate that difference. Bob Ritchie said the company is returning to markets where it has worked with many of the same agents and, in some cases, insured the same homes before pulling back during the litigation environment. Outside Florida, new-business policies written in Georgia, South Carolina and North Carolina increased 40% year over year in the second quarter, accelerating from a 23% increase in the first quarter. New-business gross premiums written in those states rose 50%. The three expansion states accounted for approximately 18% of voluntary new-business policies and 10% of voluntary new-business gross premiums written during the quarter. The company currently offers its HO-3 homeowners product in those markets and is evaluating a broader rollout of dwelling fire and marine small-boat-owner products in 2027. Jon Ritchie said those products are not new to the insurer but would be new offerings in the three expansion states, where agency partners have requested a broader product lineup. Management also said that new-home construction in Florida has plateaued, though the company continues to receive what it described as a healthy share of business from builder agents. It said its mix of builder agents, national accounts, independent agents and newer market opportunities has supported continued policy production. The company renewed its June 1 catastrophe excess-of-loss reinsurance program at risk-adjusted rate reductions at the upper end of the 15% to 20% market declines it observed. The renewal maintained American Integrity’s target protection levels while improving its retention structure, management said. Peak-season exposure increased approximately 19%. First-event retention remained $35 million. Aggregate four-event retention declined to $75 million from $95 million. The program maintained a targeted 1-in-130-year probable maximum loss level. Total catastrophe protection was approximately $3 billion, including about $2.25 billion of third-party coverage for a single event. The company reaffirmed expected annual catastrophe reinsurance costs of $430 million to $440 million. Jon Ritchie said growth in Tri-County and the company’s renewed focus on central Florida middle-aged homes are diversifying exposure and reducing pressure on certain peak zones, even as overall probable maximum loss rises with total exposure growth. American Integrity reported a net loss ratio of 30.6%, unchanged from the prior-year quarter. Its net underlying loss and loss adjustment expense ratio improved to 30.6% from 33.1%, while its gross underlying loss and loss adjustment expense ratio was 18.1%. The company reported no catastrophe losses and no prior-year development in the quarter. The combined ratio improved to 63.4% from 72.9% a year earlier, and the expense ratio declined to 32.8% from 42.3%. Net investment income increased 30.8% to $6.3 million. After the quarter ended, the company deployed nearly $200 million of cash into high-quality fixed-income securities. Foley said the existing portfolio yield was in the mid-4% range, while new-money yields were in the high-4% range and could approach 5% depending on the investment product. Shareholders’ equity rose to $369.5 million at quarter-end from $337 million at year-end. Book value per share reached $18.86, up 22.3% year over year and 10.1% from the first quarter. Management said it believes its current capital base provides capacity to continue executing its growth strategy, subject to the outcome of the wind season. American Integrity Insurance Group, Ltd. is a specialized provider of personal lines residential property insurance based in Jacksonville Beach, Florida. The company underwrites a variety of policies including homeowners multiple peril, condominium unitowners, dwelling fire, wind-only, personal umbrella and renters insurance. Its product suite is designed to protect against hurricane, windstorm, hail and other weather-related risks common to Florida’s coastal and inland regions. Founded in 2004, American Integrity operates primarily through a network of independent insurance agents across the state of Florida. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "American Integrity Insurance Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.