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DATE

Wednesday, Aug. 12, 2026 at 9:30 a.m. ET

CALL PARTICIPANTS

• Founder and Chief Executive Officer-Robert Craig Ritchie
• Chief Financial Officer-Brian Foley

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TAKEAWAYS

• Net Income -- $34.1 million, increasing 24.2% from $27.5 million in the prior-year period.
• Diluted EPS -- $1.74, representing an increase from $1.62 in the second quarter of 2025.
• Adjusted Diluted EPS -- $1.78, compared to $1.84 in the prior-year period due to the absence of one-time benefits from Citizens takeout activity in 2025.
• Gross Premiums Written -- $326.6 million, representing 13.8% growth driven by voluntary market expansion.
• Net Premiums Earned -- $104.7 million, an increase of 58.2% primarily reflecting the reduction in non-catastrophe quota share cession.
• Policies in Force -- 461,714, growing 15.7% year over year from 399,138 policies.
• In-force Premium -- $1.03 billion, surpassing a corporate milestone for the company.
• Combined Ratio -- 63.4%, improving from 72.9% in the second quarter of 2025 as the expense ratio declined.
• Voluntary New Business Policies -- 43,000, setting a company record with 54% growth over the prior-year period.
• Tri-County New Business -- 7,636 policies, representing a 41-fold increase from 185 policies in the second quarter of 2025.
• Middle-Aged Home Policies -- 9,062, representing a 21-fold increase from 437 policies in the prior-year period.
• Book Value Per Share -- $18.86, an increase of 22.3% year over year and 10.1% since the first quarter of 2026.
• Catastrophe Reinsurance Cost -- $430 million to $440 million, provided as the expected annual range following the June 1 renewal.
• Reinsurance Rate Reduction -- 15% to 20%, achieving risk-adjusted declines at the upper end of market observations.
• Catastrophe Retention -- $35 million for a first event, remaining unchanged despite a 19% increase in peak season exposure.
• Aggregate Retention -- $75 million, reduced from $95 million in the previous program to improve the net risk profile.
• Investment Deployment -- $200 million, consisting of cash allocated to high-quality fixed income securities following the quarter end.
• Southeast Expansion Growth -- 40%, reflecting year-over-year growth in new business policies across Georgia, South Carolina, and North Carolina.
• Retention Rate -- 84.4%, increasing from 83.6% in the first quarter of 2026.
• Citizens Take-outs -- 81 policies, as the company prioritized stricter underwriting and targeted profitability standards over volume.
• Net Underlying Loss Ratio -- 30.6%, declining from 33.1% in the prior-year period due to favorable loss-cost trends and legislative reforms.
• Operating Expense Ratio -- 32.8%, improving from 42.3% in the prior-year period following the absence of one-time IPO expenses.
• Net Investment Income -- $6.3 million, an increase of 30.8% driven by higher invested assets and IPO proceeds.
• Executive Transition Cost -- $920,000, associated with a change in a key leadership position during the second quarter.

SUMMARY

American Integrity Insurance Group, Inc. (AII +0.67%) reported a record second quarter characterized by voluntary market growth and the successful completion of its catastrophe reinsurance program. Management emphasized that legislative reforms in Florida have stabilized the market, reducing litigation and improving loss-cost trends. The company expanded its presence in the Tri-County region and middle-aged home segments while continuing geographic diversification into other Southeastern states. Strategic initiatives included a reduction in quota share cession to retain more underwriting profits and a realignment of the investment portfolio to enhance recurring income.

• CEO Ritchie noted that the Florida legislative reforms are producing intended results, stating, "Litigation activity for the entire industry, especially for us, continues a solid decline."
• Management reported that the Tri-County region accounts for approximately 28% of Florida households but represents only a modest portion of current policies, providing a significant penetration opportunity.
• The company plans to launch new dwelling fire and marine small boat owner products in Georgia, South Carolina, and North Carolina in 2027 to meet agency demand.
• CFO Foley reported that the deployment of $200 million into fixed income securities after the quarter end carries a book yield in the mid-4% range, with new money rates approaching 5%.
• Management stated that portfolio diversification into Tri-County and middle-aged homes is helping to manage the company's probable maximum loss by reducing exposure in peak zones.
• CEO Ritchie attributed the stability of premium per policy to a mix shift toward higher-valued homes and inflation guard provisions, which offset modest rate reductions elsewhere.
• The catastrophe reinsurance renewal improved the company's aggregate retention structure, reducing the four-event retention from $95 million to $75 million.

INDUSTRY GLOSSARY

• Citizens Take-out: The process where private insurance companies assume policies from Citizens Property Insurance Corporation, Florida's state-backed insurer of last resort.
• Tri-County: A high-density geographic region in South Florida typically including Miami-Dade, Broward, and Palm Beach counties.
• Quota Share: A reinsurance arrangement where the insurer and reinsurer share a fixed percentage of premiums and losses.
• Probable Maximum Loss (PML): A modeled estimate of the maximum loss likely to be sustained from a single catastrophic event.
• HO3: A common homeowner insurance policy form providing all-risk coverage for the dwelling and named perils coverage for personal property.
• Inflation Guard: A policy provision that automatically increases coverage limits to account for rising construction costs.
• Net Underlying Loss Ratio: A non-GAAP measure that excludes catastrophe losses and prior-year reserve development to evaluate core loss trends.

Full Conference Call Transcript

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.