American Integrity Insurance Group, Inc. Reports Second Quarter 2026 Results

About this update from American Integrity Insurance Group, Inc.

American Integrity Insurance Group, Inc. (“American Integrity,” “we,” “us,” “our” or the “Company”) (NYSE: AII), reported second quarter 2026 results. Robert Ritchie, Chief Executive Officer, commented, “We produced record voluntary new business policies and pre-tax earnings in the second quarter, which reflect continued momentum across our business and strong execution against our strategic priorities. During the quarter, we saw meaningful acceleration across each of our key growth initiatives, including the Tri-County region of Florida, middle-aged homes and our expansion states.” Mr. Ritchie continued, “We also successfully completed our June 1 reinsurance renewal, improving our overall risk profile while benefiting from meaningful risk adjusted reductions in reinsurance costs. Combined with the continued benefits of Florida’s legislative reforms, we believe we are operating from a position of considerable strength and momentum and remain well positioned to deliver profitable growth and long-term value for our stockholders.” Second Quarter 2026 Highlights: Net income of $34.1 million, or $1.74 per diluted share. Adjusted net income 1 of $34.9 million, or $1.78 per diluted share Book value per share of $18.86, up 22.3% over June 30, 2025 and up 10.1% over March 31, 2026 Return on equity of 38.7% and Adjusted return on equity 1 of 39.6% Policies in-force and in-force premium were 461,714 and $1,029 million, respectively, up 15.7% and 11.7%, respectively, over June 30, 2025 Wrote 126,308 new and renewal policies in the voluntary market, an increase of 27.9% compared to the second quarter of 2025 7,636 voluntary new business policies in Tri-County region of Florida compared to 185 in the second quarter of 2025, a 41x increase 9,062 voluntary new business policies in our middle-aged home category compared to 437 in the second quarter of 2025, a 21x increase Stable premium per policy year-over-year across our overall book Net premiums earned of $104.7 million, an increase of 58.2% compared to the second quarter of 2025 Combined ratio of 63.4% compared to 72.9% in the second quarter of 2025 Assumed just 81 policies, as we determined that fewer policies from Citizens met our underwriting and targeted profitability standards Renewed the Company’s catastrophe excess of loss (“CAT XOL”) reinsurance program effective June 1, 2026, providing $3 billion of total third-party catastrophe coverage at a total estimated cost of $430 - $440 million The Company benefitted from the upper end of 15-20% CAT XOL risk-adjusted rate decreases, while retaining its 1-in-130 year probable maximum loss level and reducing its aggregate retention from $95 million to $75 million 1 Adjusted net income, adjusted earnings per share and adjusted return on equity are non-GAAP financial measures. Please see the discussion below under the heading “ Reconciliation of Non-GAAP Financial Measures ” for additional information concerning these and other non-GAAP financial measures. Second Quarter 2026 Commentary Gross premiums written in the second quarter of 2026 increased by $39.6 million to $326.6 million from $287.0 million in the second quarter of 2025, primarily driven by growth in our voluntary market writings. Gross premiums earned in the second quarter of 2026 increased by $18.6 million to $242.3 million from $223.7 million in the second quarter of 2025. Ceded premiums earned in the second quarter of 2026 decreased by $20.0 million to $137.6 million compared to $157.6 million in the second quarter of 2025, primarily due to the reduction in our non-catastrophe quota share reinsurance arrangement. Net premiums earned in the second quarter of 2026 increased by $38.5 million to $104.7 million from $66.2 million in the second quarter of 2025. Net investment income in the second quarter of 2026 increased $1.4 million to $6.2 million compared to $4.8 million in the second quarter of 2025, primarily due to the increase in our invested assets, driven by the increased in-force premiums and the proceeds from our IPO. Losses and loss adjustment expenses (“LAE”) for the second quarter of 2026 increased $12.0 million to $33.2 million compared to $21.2 million for the second quarter of 2025. The loss and loss adjustment expenses ratio was 30.6% for the second quarter of 2026 which was consistent with the second quarter of 2025 of 30.6%. The net underlying loss and loss adjustment expense ratio was 30.6% for the second quarter of 2026, down from 33.1% for the second quarter of 2025. Policy acquisition expenses and general and administrative expenses in the second quarter of 2026 were $17.4 million and $18.2 million, respectively, compared to $6.3 million and $22.9 million, respectively, in the second quarter of 2025. Period over period changes were due to record setting new business production in the second quarter of 2026, the absence of one-time IPO-related expenses, the reduction in our non-catastrophe quota share reinsurance arrangement from 40% to 25% on January 1, 2026 and the benefit of Citizens take-outs in 2025. The expense ratio was 32.8% for the second quarter of 2026 compared to 42.3% for the second quarter of 2025. The combined ratio was 63.4% for the second quarter of 2026 compared to 72.9% for the second quarter of 2025. 2 Net underlying loss and loss adjustment expense ratio is a non-GAAP financial measure. Please see the discussion below under the heading “Reconciliation of Non-GAAP Financial Measures” for additional information concerning this and other non-GAAP financial measures. Results of Operations   Three Months Ended June 30, ($ in thousands, except per share data) 2026   2025   $ Change   % Change Gross premiums written $ 326,592     $ 286,995     $ 39,597       13.8 % Change in gross unearned premiums   (84,341 )     (63,255 )     (21,086 )     33.3 % Gross premiums earned   242,251       223,740       18,511       8.3 % Ceded premiums earned   (137,555 )     (157,571 )     20,016       (12.7 )% Net premiums earned   104,696       66,169       38,527       58.2 % Policy fees   3,711       2,967       744       25.1 % Net investment income   6,250       4,780       1,470       30.8 % Net realized gains (losses) on investments   (2 )     485       (487 )     (100.4 )% Other income   516       98       418       426.5 % Total Revenues   115,171       74,499       40,672       54.6 % Losses and loss adjustment expenses   33,151       21,189       11,962       56.5 % Policy acquisition expenses   17,410       6,281       11,129       177.2 % General and administrative expenses   18,186       22,932       (4,746 )     (20.7 )% Total Expenses   68,747       50,402       18,345       36.4 % Income before taxes   46,424       24,097       22,327       92.7 % Income tax (benefit) expense   12,278       (3,397 )     15,675       (461.4 )% Net Income $ 34,146     $ 27,494     $ 6,652       24.2 % Book value per share (1) $ 18.86     $ 15.42     $ 3.44       22.3 % Loss ratio (2)   30.6 %     30.6 %             Expense ratio (3)   32.8 %     42.3 %             Combined ratio (4)   63.4 %     72.9 %             Return on equity (5)   38.7 %     45.1 %             (1) Book value per share is the ratio of shareholders’ equity to shares outstanding, each as of the balance sheet date. (2) Loss ratio is the ratio of losses and LAE to net premiums earned plus policy fees. (3) Expense ratio is the ratio of policy acquisition expenses and general and administrative expenses to net premiums earned plus policy fees. (4) Combined ratio is defined as the sum of the loss ratio and the expense ratio. (5) Return on equity is defined as net income, divided by the average beginning and ending shareholders’ equity during the applicable period. This metric is annualized for interim periods by multiplying the applicable ratio in order to present return on equity consistently.   Six Months Ended June 30, ($ in thousands, except per share data) 2026   2025   $ Change   % Change Gross premiums written $ 546,596     $ 499,145     $ 47,451       9.5 % Change in gross unearned premiums   (73,573 )     (65,249 )     (8,324 )     12.8 % Gross premiums earned   473,023       433,896       39,127       9.0 % Ceded premiums earned   (286,119 )     (302,325 )     16,206       (5.4 )% Net premiums earned   186,904       131,571       55,333       42.1 % Policy fees   6,456       5,171       1,285       24.9 % Net investment income   11,902       8,883       3,019       34.0 % Net realized gains (losses) on investments   51       501       (450 )     (89.8 )% Other income   789       259       530       204.6 % Total Revenues   206,102       146,385       59,717       40.8 % Losses and loss adjustment expenses   64,876       42,051       22,825       54.3 % Policy acquisition expenses   33,395       9,388       24,007       255.7 % General and administrative expenses   34,152       27,940       6,212       22.2 % Total Expenses   132,423       79,379       53,044       66.8 % Income before taxes   73,679       67,006       6,673       10.0 % Income tax expense   19,623       1,416       18,207       1285.8 % Net Income $ 54,056     $ 65,590     $ (11,534 )     (17.6 )% Book value per share (1) $ 18.86     $ 15.42     $ 3.44       22.3 % Loss ratio (2)   33.6 %     30.8 %             Expense ratio (3)   34.9 %     27.3 %             Combined ratio (4)   68.5 %     58.1 %             Return on equity (5)   30.6 %     56.5 %             (1) Book value per share is the ratio of shareholders’ equity to shares outstanding, each as of the balance sheet date. (2) Loss ratio is the ratio of losses and LAE to net premiums earned plus policy fees. (3) Expense ratio is the ratio of policy acquisition expenses and general and administrative expenses to net premiums earned plus policy fees. (4) Combined ratio is defined as the sum of the loss ratio and the expense ratio. (5) Return on equity is defined as net income, divided by the average beginning and ending shareholders’ equity during the applicable period. This metric is annualized for interim periods by multiplying the applicable ratio in order to present return on equity consistently. Policies in-force and in-force premium Policies in-force represents the number of active insurance policies with coverage in effect as of the end of the period referenced. In-force premium represents the annual premium for active insurance policies with coverage in effect as of the end of the period referenced.   June 30, ($ in thousands) 2026   2025   % Change Policies In-Force   461,714     399,138     15.7 % In-Force Premium $ 1,029,387   $ 921,252     11.7 % Policies in-force were 461,714 as of June 30, 2026, an increase of 15.7% compared to policies in-force of 399,138 as of June 30, 2025, and an increase of 5.6% compared to policies in-force of 437,308 as of March 31, 2026. The increase in our policies in-force was primarily due to new policies written through the voluntary market and the 2025 Citizens take-outs. Reconciliation of Non-GAAP Financial Measures: Adjusted net income and adjusted earnings per share Adjusted net income is a non-GAAP financial measure defined as net income excluding net realized gains or losses on investments, stock compensation expense incurred in connection with our IPO, and certain non-recurring or non-cash expenses, including those incurred in connection with our IPO, net of tax. We use adjusted net income as an internal performance measure in the management of our operations because we believe it gives us and users of our financial information useful insight into our results of operations and our underlying business performance excluding the impact of realized gains and losses on the sale of securities, and one time items, which we do not view as core to the underlying trends in our business. Adjusted net income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define adjusted net income differently. Net income increased $6.6 million, or 24.2%, to $34.1 million for the three months ended June 30, 2026 from $27.5 million for the three months ended June 30, 2025. Adjusted net income increased by $3.6 million, or 11.4%, to $34.9 million from $31.3 million for the three months ended June 30, 2025. Adjusted earnings per share is a non-GAAP measure, which is calculated as adjusted net income available to common shareholders divided by weighted average diluted common shares outstanding. Management believes this metric is meaningful, as it allows investors to evaluate underlying profitability and enhances comparability across periods by excluding items that are heavily impacted by investment market fluctuations and other economic factors and are not indicative of operating trends. Adjusted net income and adjusted earnings per share for the three and six months ended June 30, 2026 and 2025 reconcile to net income and earnings per share, respectively, as follows:   Three Months Ended June 30,   Six Months Ended June 30, ($ in thousands, except per share data) 2026   2025   2026   2025 Net Income $ 34,146     $ 27,494   $ 54,056   $ 65,590 Add:               Stock compensation (1)(5)   —       10,433     —     10,433 Termination of MSA (1)   —       3,000     —     3,000 One-time IPO expenses (1)   —       1,654     —     1,654 One-time bonus expenses (1)   —       1,387     —     1,387 Executive transition cost (1)(2)   920       —     920     — Less:               Net realized gains (losses) on investments   (2 )     485     51     501 Change in tax status (3)   —       9,722     —     9,722 Tax effect (4)(5)   194       2,467     183     2,464 Adjusted net income $ 34,874     $ 31,294   $ 54,742   $ 69,377 Adjusted income allocated to participating securities   —       —     —     2,190 Numerator:               Adjusted net income available for common shareholders $ 34,874     $ 31,294   $ 54,742   $ 67,187 Denominator:               Weighted average common shares outstanding:               Basic   19,586,994       16,962,075     19,583,036     15,152,075 Diluted   19,590,448       16,962,075     19,584,870     15,152,075 Earnings per share:               Basic $ 1.74     $ 1.62   $ 2.76   $ 4.18 Diluted $ 1.74     $ 1.62   $ 2.76   $ 4.18 Adjusted earnings per share:               Basic $ 1.78     $ 1.84   $ 2.80   $ 4.43 Diluted $ 1.78     $ 1.84   $ 2.80   $ 4.43 (1) Material non-recurring items that we do not expect to continue in the future and believe are not reflective of our ongoing operations and our performance. (2) Costs associated with the change in a key executive leadership position. (3) The change in tax status of the Company from a non-taxable entity to a taxable corporation incurred in connection with the IPO resulted in recognition of a deferred income tax benefit. (4) We included the tax impact of all adjustments to adjusted net income using the U.S. federal statutory corporate tax rate of 21%. While the Company’s actual effective tax rates for the three months ended June 30, 2026 and 2025 were 26.4% and (14.1)%, respectively, and for the six months ended June 30, 2026 and 2025 were 26.6% and 2.1%, respectively, the use of the statutory rate provides a consistent and simplified approach for comparability. This approach is applied uniformly, including to items that may be partially or fully nondeductible for tax purposes. The tax effect row is presented exclusive of the change in tax status impact. (5) Stock-based compensation expense recognized of $10,433 for the three and six months ended June 30, 2025, approximately $4,241 was nondeductible for U.S. federal income tax purposes. Adjusted return on equity Adjusted return on equity is a non-GAAP financial measure defined as adjusted net income divided by the average of beginning and ending shareholders’ equity during the applicable period and is annualized for periods of less than one year. We use adjusted return on equity as an internal performance measure in the management of our operations because we believe it gives us and users of our financial information useful insight into our underlying business performance. Adjusted return on equity should not be viewed as a substitute for any metrics calculated in accordance with GAAP, and other companies may define adjusted return on equity differently. Adjusted return on equity for the three and six months ended June 30, 2026 and 2025 reconciles to return on equity as follows:   Three Months Ended June 30, ($ in thousands) 2026   2025 Net income $ 34,146     $ 27,494   Average beginning and ending shareholders’ equity (1)   352,501       243,966   Return on equity   38.7 %     45.1 % Adjusted net income (after tax) $ 34,874     $ 31,294   Average shareholders’ equity   352,501       243,966   Adjusted return on equity (2)   39.6 %     51.3 %   Six Months Ended June 30, ($ in thousands) 2026   2025 Net income $ 54,056     $ 65,590   Average beginning and ending shareholders’ equity (1)   353,270       232,133   Return on equity   30.6 %     56.5 % Adjusted net income (after tax) $ 54,742     $ 69,377   Average shareholders’ equity   353,270       232,133   Adjusted return on equity (2)   31.0 %     59.8 % (1) Average beginning and ending shareholders’ equity represents the average of shareholders’ equity at the beginning and end of the period presented. (2) Adjusted return on equity is the adjusted net income (after tax) divided by the average beginning and ending shareholders’ equity. Net underlying loss and loss adjustment expense ratio Net underlying loss and loss adjustment expense ratio is a non-GAAP measure. We calculate the net underlying loss and loss adjustment expense ratio by subtracting current year net catastrophe losses and prior year net reserve development from total net losses and LAE and dividing that amount by the sum of total net premiums earned plus policy fees. We use the net underlying loss and LAE ratio to allow us to analyze our loss trends before the impact of catastrophe losses and prior year reserve development. These two items can have a significant impact on our loss trends in a given period. We believe it is useful for investors to evaluate these components both separately and in the aggregate when reviewing our performance. The most directly comparable GAAP measure is the net loss and LAE ratio. The net underlying loss and LAE ratio should not be considered a substitute for the net loss and LAE ratio and does not reflect the overall profitability of our business. The following tables summarize the loss and LAE ratios and the net underlying loss and LAE ratios for the three and six months ended June 30, 2026 and 2025:   Three Months Ended June 30, ($ in thousands) 2026   2025 Total Net Premiums Earned $ 104,696     $ 66,169   Plus: Policy Fees   3,711       2,967   Total Net Premiums Earned Plus Policy Fees   108,407       69,136   Losses and Loss Adjustment Expenses, Net $ 33,151     $ 21,189   Loss and Loss Adjustment Expense Ratio (% Net Premiums Earned Plus Policy Fees)   30.6 %     30.6 % Less:           Current Year Net Catastrophe Losses   —       —   Prior Year Net Reserve Development   —       (1,695 ) Underlying Loss and Loss Adjustment Expenses, Net $ 33,151     $ 22,884   Net Underlying Loss and Loss Adjustment Expense Ratio (% Net Premiums Earned Plus Policy Fees)   30.6 %     33.1 %   Six Months Ended June 30, ($ in thousands) 2026   2025 Total Net Premiums Earned $ 186,904     $ 131,571   Plus: Policy Fees   6,456       5,171   Total Net Premiums Earned Plus Policy Fees   193,360       136,742   Losses and Loss Adjustment Expenses, Net $ 64,876     $ 42,051   Loss and Loss Adjustment Expense Ratio (% Net Premiums Earned Plus Policy Fees)   33.6 %     30.8 % Less:           Current Year Net Catastrophe Losses   —       —   Prior Year Net Reserve Development   —       (1,117 ) Underlying Loss and Loss Adjustment Expenses, Net $ 64,876     $ 43,168   Net Underlying Loss and Loss Adjustment Expense Ratio (% Net Premiums Earned Plus Policy Fees)   33.6 %     31.6 % Gross underlying loss and loss adjustment expense ratio Gross underlying loss and loss adjustment expense ratio is a non-GAAP measure. We calculate the gross underlying loss and LAE ratio by adding net underlying loss and LAE and ceded non-catastrophe losses and dividing that amount by the sum of total gross premiums earned and policy fees. We use the gross underlying loss and LAE ratio to analyze our loss trends before the impact of reinsurance. We believe it is useful for investors to evaluate the cost of non-catastrophe losses for every dollar of gross premiums earned. The most comparable GAAP measure is the net loss and LAE ratio. The gross underlying loss and LAE ratio should not be considered a substitute for net loss and LAE ratio and does not reflect the overall profitability of our business. The following tables summarize the gross underlying loss and LAE ratios for the three and six months ended June 30, 2026 and 2025:   Three Months Ended June 30, ($ in thousands) 2026   2025 Total Gross Premiums Earned $ 242,251     $ 223,740   Plus: Policy Fees   3,711       2,967   Total Gross Premiums Earned Plus Policy Fees   245,962       226,707   Losses and Loss Adjustment Expenses, Net   33,151       21,189   Less:           Current Year Net Catastrophe Losses   —       —   Prior Year Net Reserve Development   —       (1,695 ) Underlying Loss and Loss Adjustment Expenses, Net $ 33,151     $ 22,884   Add:           Ceded Non-Catastrophe Loss and Loss Adjustment Expense   11,443       12,356   Gross Underlying Loss and Loss Adjustment Expenses $ 44,594     $ 35,240   Loss and Loss Adjustment Expense Ratio (% Net Premiums Earned Plus Policy Fees)   30.6 %     30.6 % Gross Underlying Loss and Loss Adjustment Expense Ratio (% Gross Premiums Earned Plus Policy Fees)   18.1 %     15.5 %   Six Months Ended June 30, ($ in thousands) 2026   2025 Total Gross Premiums Earned $ 473,023     $ 433,896   Plus: Policy Fees   6,456       5,171   Total Gross Premiums Earned Plus Policy Fees   479,479       439,067   Losses and Loss Adjustment Expenses, Net   64,876       42,051   Less:           Current Year Net Catastrophe Losses   —       —   Prior Year Net Reserve Development   —       (1,117 ) Underlying Loss and Loss Adjustment Expenses, Net $ 64,876     $ 43,168   Add:           Ceded Non-Catastrophe Loss and Loss Adjustment Expense   24,205       26,376   Gross Underlying Loss and Loss Adjustment Expenses $ 89,081     $ 69,544   Loss and Loss Adjustment Expense Ratio (% Net Premiums Earned Plus Policy Fees)   33.6 %     30.8 % Gross Underlying Loss and Loss Adjustment Expense Ratio (% Gross Premiums Earned Plus Policy Fees)   18.6 %     15.8 % Conference Call As previously announced, American Integrity will hold a conference call to discuss its second quarter 2026 results at 9:30 a.m. Eastern Time on August 12, 2026. The call can be accessed by dialing +1 (585) 542-9983 (U.S. Local), or +1 (833) 461-5787 (U.S. Toll-Free), and using the conference ID code: 889411051. Please call the conference telephone number 10 minutes before the start time. The earnings call can also be accessed by clicking the webcast link available on the Investor Relations section of the Company’s website at www.aii.com . A replay of the call will be available after 12:00 p.m. Eastern Time on the same day as the call and will be accessible at https://events.q4inc.com/analyst/889411051?pwd=IvBYx9vK . The replay can also be accessed via the Investor Relations section of the Company’s website at www.aii.com . The replay will be available for one year. About American Integrity Insurance Group, Inc. American Integrity Insurance Group, Inc. (NYSE: AII) is a leading provider of residential property insurance, focused on delivering innovative, reliable coverage to homeowners throughout the Southeast. Built on a foundation of integrity, resilience, and service, the Company’s mission is to be the most trusted and responsive insurance solution in the markets it serves. Founded in 2006 and headquartered in Tampa, American Integrity is committed to protecting policyholders with strength and purpose—today and for generations to come. For more information, visit www.aii.com . Forward-Looking Statements Certain statements in this press release and on the related teleconference call may be forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding: our outlook; our business strategy; writing new business and retaining existing policies; new insurance products; availability of reinsurance coverage; expectations regarding future growth; future Citizens take-out opportunities; anticipated future operating results and operating expenses, cash flows, capital resources and liquidity; reserves for losses and loss adjustment expenses; geographic expansion; reduction of our quota share and its impact on our results; competition; future regulatory, judicial and legislative changes; forecasts of future revenues and appropriately planning our expenses; and our plans regarding our capital expenditures and investment portfolios. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “contemplates,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “targets,” “will,” “would” or the negative of these terms or other similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance, and are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the potential that we may face significant losses due to being a property and casualty insurer and our exposure to catastrophic events and severe weather conditions; our loss reserves are estimates and may be inadequate to cover our actual liability for losses, and actual claims incurred have exceeded, and in the future may exceed, reserves established for claims; the dependence of our financial results on the regulatory, legal, economic and weather conditions in Florida due to the fact that we conduct substantially all of our business in Florida; changing climate conditions may increase the severity and frequency of catastrophic events and severe weather conditions; the severity and frequency of catastrophe events of which are unpredictable; dependence upon the effectiveness of exclusions and other loss limitation methods in the insurance policies we assume or write; reliance upon third-party distribution partners, including independent insurance agents, homebuilder-affiliated agents and national insurance carriers; our ability to pursue Citizens take-out opportunities; cyclical changes in the insurance industry; our ability to obtain reinsurance coverage at commercially reasonable rates, or at all; credit risk of our reinsurers who may suffer a downgrade; the inherent uncertainty of models and our reliance on such models as a tool to evaluate risk, and the dependence of our results upon our ability to accurately price the risks we underwrite; the possibility that our information technology systems may fail or be disrupted; our ability to expand our business and the possible need to acquire additional capital in the future to fund such expansion; the ability of our claims department, or the third-party claims adjusters whom we may engage, to effectively manage or remediate claims as well as unanticipated increases in the severity or frequency of claims; the possibility that actual renewals of our existing policies will not meet expectations; increased competition and market conditions, including changes in our financial stability and credit ratings; the extensive regulatory environment in which we operate that requires approval of rate increases, can mandate rate decreases, and that can dictate underwriting practices and mandate participation in loss sharing arrangements, and other potential further restrictive regulation we may face; mandatory assessments or competition from government entities may create short-term liabilities or affect our ability to underwrite more policies; and other risks identified in “Risk Factors” in our reports filed with the Securities and Exchange Commission. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We do not undertake any obligation to update or revise the forward-looking statements to reflect events that occur or circumstances that exist after the date on which such statements were made, except to the extent required by law.   Consolidated Balance Sheets   (In thousands, except share and per share data)     June 30, 2026   December 31, 2025   (unaudited)     Assets       Fixed maturities, available-for-sale, at fair value (amortized cost of $346,989 and $327,910, respectively) $ 346,427     $ 330,489 Short-term investments (amortized cost of $4,739 and $18,121, respectively)   4,738       18,121 Total investments   351,165       348,610 Cash and cash equivalents   288,453       203,902 Restricted cash and cash equivalents   55,419       40,217 Premiums receivable, net   59,104       45,031 Accrued investment income   3,163       3,458 Prepaid reinsurance premiums   519,574       275,093 Income taxes recoverable   1,545       — Reinsurance recoverable, net   247,916       269,056 Deferred policy acquisition costs, net   22,414       5,127 Property and equipment, net   8,951       5,718 Right-of-use assets – operating leases   38,452       449 Deferred income tax asset, net   5,116       8,636 Other assets   11,009       24,904 Total assets $ 1,612,281     $ 1,230,201 Liabilities and shareholders’ equity       Liabilities:       Unpaid losses and loss adjustment expenses $ 254,178     $ 266,591 Income tax payable   —       2,680 Unearned premiums   555,130       481,557 Reinsurance payable   341,609       96,555 Advance premiums   21,847       11,752 Long-term debt   412       618 Lease liabilities – operating leases   33,065       458 Other liabilities and accrued expenses   36,521       32,968 Total liabilities $ 1,242,762     $ 893,179 Shareholders’ equity:       Common stock, $0.001 par value, 100,000,000 shares authorized, 19,593,427 shares issued and outstanding at June 30, 2026 and 19,579,009 shares issued and outstanding at December 31, 2025 $ 20     $ 20 Additional paid-in capital   106,656       105,896 Accumulated other comprehensive income (loss), net of taxes   (420 )     1,928 Retained earnings   263,263       229,178 Total shareholders’ equity $ 369,519     $ 337,022 Total liabilities and shareholders’ equity $ 1,612,281     $ 1,230,201   Consolidated Statements of Operations and Comprehensive Income (Unaudited)   (In thousands, except share and per share data)     Three Months Ended June 30,   Six Months Ended June 30,         2026       2025       2026       2025   Revenues:               Gross premiums written $ 326,592     $ 286,995     $ 546,596     $ 499,145   Change in gross unearned premiums   (84,341 )     (63,255 )     (73,573 )     (65,249 ) Gross premiums earned   242,251       223,740       473,023       433,896   Ceded premiums earned   (137,555 )     (157,571 )     (286,119 )     (302,325 ) Net premiums earned   104,696       66,169       186,904       131,571   Policy fees   3,711       2,967       6,456       5,171   Net investment income   6,250       4,780       11,902       8,883   Net realized gains (losses) on investments   (2 )     485       51       501   Other income   516       98       789       259   Total revenues   115,171       74,499       206,102       146,385   Expenses:               Losses and loss adjustment expenses, net   33,151       21,189       64,876       42,051   Policy acquisition expenses   17,410       6,281       33,395       9,388   General and administrative expenses   18,186       22,932       34,152       27,940   Total expenses   68,747       50,402       132,423       79,379   Income before income taxes   46,424       24,097       73,679       67,006   Income tax (benefit) expense   12,278       (3,397 )     19,623       1,416   Net income $ 34,146     $ 27,494     $ 54,056     $ 65,590   Other comprehensive income (loss):               Unrealized holding gains on available-for-sale securities, net of taxes   (605 )     1,231       (2,311 )     1,688   Reclassification adjustment for net realized gains (losses), net of taxes   1       (362 )     (37 )     (374 ) Total other comprehensive income (loss)   (604 )     869       (2,348 )     1,314   Comprehensive income $ 33,542     $ 28,363     $ 51,708     $ 66,904   Earnings per share:               Basic earnings per share $ 1.74     $ 1.62     $ 2.76     $ 4.18   Diluted earnings per share $ 1.74     $ 1.62     $ 2.76     $ 4.18   Weighted average shares outstanding – Basic   19,586,994       16,962,075       19,583,036       15,152,075   Weighted average shares outstanding – Diluted   19,590,448       16,962,075       19,584,870       15,152,075     Consolidated Statements of Cash Flows (Unaudited)   (In thousands)     For the Six Months Ended June 30,   2026       2025   Cash flows provided by (used in) operating activities       Net income $ 54,056     $ 65,590   Adjustments to reconcile net income to net cash provided by operating activities:       Stock-based compensation expense   880       10,433   Amortization and depreciation   1,091       1,147   Deferred income taxes   4,314       (9,829 ) Net realized gains   (51 )     (501 ) Changes in operating assets and liabilities:       Premiums receivable   (14,073 )     (7,031 ) Accrued investment income   295       (737 ) Prepaid reinsurance premiums   (244,481 )     (297,587 ) Reinsurance recoverable   21,140       69,524   Other assets   8,367       9,299   Unpaid losses and loss adjustment expense   (12,413 )     (96,922 ) Unearned premiums   73,573       65,250   Reinsurance payable   245,054       288,416   Advance premiums   10,095       16,004   Income taxes payable (recoverable)   (4,225 )     (9,070 ) Operating lease payments   (416 )     (1,053 ) Deferred policy acquisition costs, net unearned ceding commissions   (17,287 )     (5,066 ) Other liabilities and accrued expenses   3,924       (2,386 ) Net cash provided by operating activities   129,843       95,481   Cash flows provided by (used in) investing activities       Purchases of property and equipment   (4,475 )     (579 ) Proceeds from sales and maturities of fixed maturity securities   35,038       103,486   Purchases of fixed maturity securities   (53,784 )     (162,776 ) Proceeds from sales and maturities of short-term investments   22,659       —   Purchases of short-term investments   (9,231 )     —   Net cash used in investing activities   (9,793 )     (59,869 ) Cash flows provided by (used in) financing activities       Proceeds from initial public offering, net of underwriting discounts and commissions   —       93,000   Payments on tax withheld on vesting of restricted stock awards   —       (3,753 ) Payments on tax withheld on vesting of restricted stock units   (120 )     —   Cash dividends paid   (19,971 )     —   Cash distributions to members (1)   —       (22,875 ) Repayment of long-term debt   (206 )     (206 ) Payments of initial public offering costs   —       (4,227 ) Net cash provided by (used in) financing activities   (20,297 )     61,939   Net increase in cash, cash equivalents and restricted cash and cash equivalents   99,753       97,551   Cash, cash equivalents and restricted cash and cash equivalents at beginning of year   244,119       179,272   Cash, cash equivalents and restricted cash and cash equivalents at end of period $ 343,872     $ 276,823     (1) The distributions were made to members prior to the IPO.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260810036636/en/

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