American Integrity Insurance Group plans to resume writing homeowners policies in Florida’s Tri-County region by year-end, marking a return to the market after exiting a decade ago.
President Jon Ritchie told analysts during the company’s earnings call that the area, which includes Miami-Dade, Broward, and Palm Beach counties, represents more than one-quarter of the state’s population and an even larger share of potential premium.
The company began reentering the market in recent months by assuming 12,000 policies in Palm Beach County from Citizens Property Insurance Corp., Florida’s insurer of last resort.
Regulators have approved rate filings for Miami-Dade and Broward counties, with coverage in those areas expected to begin later this year. Ritchie said the expansion will not require material changes in staffing or operating expenses.
Net income for the second quarter rose to $27.5 million, up from $14.7 million in the same period last year. The Tri-County move will also position the company to grow in southwest Florida, particularly in Lee County, where it already has significant market presence.
Ritchie said growth on the Atlantic Coast will allow adjustments to probable maximum loss calculations that could remove certain underwriting restrictions.
In the first quarter, American Integrity reported a 42.9% increase in policies in force, reaching approximately 383,332. The growth was driven by policy assumptions, reduced reliance on reinsurance cessions, and underwriting initiatives targeting profitable segments.
American Integrity, which completed its initial public offering earlier this year, has also been approved to write in North Carolina, with operations expected to start in the fourth quarter.
Chief executive officer Bob Ritchie (pictured above) said business there will focus on new construction and builders. The company is also expanding in South Carolina and Georgia to strengthen its builder agency network.
The company’s IPO generated approximately $81.5 million in net proceeds at a share price of $16, with the stock trading on the New York Stock Exchange under the symbol AII. The offering provided the company with additional capital to support underwriting expansion in Florida and across the Southeast, as well as to enhance its reinsurance and risk management strategies.
Florida remains the core market. Jon Ritchie noted that litigation and related expenses in the state have been declining due to a reduction in non-meritorious lawsuits following legislative reforms. Bob Ritchie said 30% of the company’s new residential business in Florida is for new construction and more than 80% of the existing portfolio consists of homes with new roofs.
"This represents a very large and addressable market and one that is currently underpenetrated by design historically because of the lack of reforms . . . but now it’s a different time frame," said Bob Ritchie.
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