American Integrity Insurance Group, Inc. (AII) AI Stock Analysis

• Market Cap: $356.10M
• Dividend Yield: N/A
• Average Volume (3M): 137.06K
• Price to Earnings (P/E): <0.1
• Beta (1Y): 0.49
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 294
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.11
• Shares Outstanding: 19,576,803
• 10 Day Avg. Volume: 98,252
• 30 Day Avg. Volume: 137,064
• PEG Ratio: 0.02
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 2.70
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 1.06
• Enterprise Value/Ebitda: 1.62
• 1Y Price Target: $28.00
• Price Target Upside: 34.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.69
• Revenue Forecast (FY): $945.30M

• Rating: 82 Outperform
• Price Target: $24.00 ▲(15.00% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by very strong financial performance (sharp profitability improvement and a very low-debt balance sheet) and supportive earnings call guidance tied to reinsurance cost reductions and higher net revenue expectations. Valuation is exceptionally compelling based on the provided P/E. Offsetting factors are mixed technical momentum (negative MACD despite constructive moving averages) and business risk flags from the call, including Florida concentration and expected modest loss pressure.

Positive Factors

Balance Sheet Strength

Extremely low debt and a large equity base provide durable financial flexibility for underwriting, reinsurance purchases, and capital returns. Strong equity growth since 2024 supports capacity to write risk and absorb reserve or catastrophe shocks without relying on leverage.

Underwriting Profitability

A materially improved combined ratio and higher net margins reflect sustained underwriting discipline and expense control. These durable improvements indicate the company can generate underwriting profits across underwriting cycles if discipline and risk selection persist.

Reinsurance & Capital Actions

Lower quota share cessions and a successful IPO materially raise retained premium and capital capacity, structurally boosting future net revenue and earnings power. Owning more float while maintaining prudent event cover enhances long-term margin potential and strategic optionality.

Negative Factors

High Florida Concentration

Almost all exposure concentrated in one state amplifies regulatory, hurricane and market-cycle risk. State-specific rate and takeout dynamics can materially swing underwriting results and capital needs, limiting resilience versus geographically diversified peers.

Cash-Flow Volatility

A large FCF decline despite strong earnings signals timing effects or higher cash demands; for an insurer this variability can constrain capital returns, reinsurance funding or opportunistic deployment during stressed periods, reducing strategic flexibility.

Dependence on Voluntary Growth Post-Citizens

With the easy pipeline of assumed Citizens policies largely exhausted, growth must come from more competitive voluntary channels. Sustaining prior growth rates without reinsurance-driven takeouts is structurally harder and may pressure acquisition margins or require more sales investment.

American Integrity Insurance Group, Inc. Business Overview & Revenue Model

Company Description

American Integrity Insurance Group, Inc. is an insurance provider that offers a range of coverage options, including policies for homeowners, new home construction, vacant homes, condos, rental and seasonal dwellings, manufactured homes, and golf carts. The company also provides insurance for watercraft and services like binding arbitration.

How the Company Makes Money

American Integrity Insurance Group generates revenue primarily through the sale of insurance premiums. Customers pay premiums in exchange for coverage against specified risks, and these premiums represent the company's main revenue stream. AII employs a risk-based pricing model, assessing the likelihood of claims based on factors such as property location, construction type, and individual client profiles. Additionally, AII may invest the premiums collected in various financial instruments to earn investment income. The company also seeks to mitigate losses through reinsurance agreements, which protect against catastrophic claims and help stabilize financial performance. Partnerships with independent agents and brokers further enhance AII's distribution capabilities, allowing the company to reach a broader customer base and drive revenue growth.

American Integrity Insurance Group, Inc. Financial Statement Overview

Summary

Strong 2025 profitability step-up with meaningfully higher revenue and sharply improved margins, plus an exceptionally conservative balance sheet (minimal debt) and strong ROE. Main offset is cash-flow volatility, with free cash flow down materially year-over-year despite higher earnings—important for an insurer that can face uneven period results.

Income Statement

Profitability strengthened sharply in 2025, with revenue rising to $276.5M (up ~35% vs. 2024) and margins expanding meaningfully (net margin ~36% vs. ~19% in 2024). Operating profitability also improved materially, pointing to strong underwriting and/or favorable loss experience relative to the prior year. The main watch-out is that 2025’s step-change is large versus the relatively modest growth in 2024, which can signal results that may be more cyclical or event-driven in property & casualty insurance.

Balance Sheet

Balance sheet leverage is extremely conservative, with total debt falling to ~$0.6M in 2025 and a very low debt-to-equity level, giving the company substantial financial flexibility. Equity increased significantly (to ~$337.0M in 2025 from ~$162.4M in 2024), and returns on equity remained strong (roughly mid-to-high 20% range across the period, ~29.6% in 2025). A potential risk is that insurers can face volatility in capital and results due to catastrophe exposure and reserve movements, even if headline debt levels are minimal.

Cash Flow

Cash generation is strong overall, with operating cash flow remaining robust (about $138.2M in 2025) and free cash flow closely tracking net income (free cash flow was ~96% of net income in 2025). However, free cash flow declined sharply in 2025 (down ~43% vs. 2024), indicating higher cash needs or timing effects despite the big jump in earnings. This mix suggests solid underlying cash conversion, but with year-to-year volatility that investors should monitor.

Breakdown	Dec 2025	Dec 2024	Dec 2023
Income Statement
Total Revenue	276.49M	204.35M	200.87M
Gross Profit	178.45M	81.99M	78.87M
EBITDA	117.34M	53.88M	45.98M
Net Income	99.62M	39.74M	37.80M
Balance Sheet
Total Assets	1.23B	1.20B	862.03M
Cash, Cash Equivalents and Short-Term Investments	203.90M	262.25M	256.80M
Total Debt	618.00K	3.64M	6.08M
Total Liabilities	888.05M	1.04B	728.07M
Stockholders Equity	337.02M	162.39M	133.97M
Cash Flow
Free Cash Flow	133.18M	147.60M	63.68M
Operating Cash Flow	138.19M	148.91M	64.44M
Investing Cash Flow	-135.08M	-19.37M	-1.84M
Financing Cash Flow	61.73M	-12.44M	-2.35M

American Integrity Insurance Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AII	82 Outperform	$356.10M	0.07	―	―	―	―
AAME	68 Neutral	$55.07M	11.98	4.75%	0.74%	11.99%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HUIZ	46 Neutral	$18.56M	7.74	4.56%	―	19.30%	-17.56%

American Integrity Insurance Group, Inc. Corporate Events

American Integrity Reports Strong Q4 Results, Special Dividend

American Integrity Insurance Group, Inc. on February 24, 2026 reported strong fourth-quarter and full-year 2025 results, highlighted by a sharp rise in profitability, improved underwriting performance and robust premium growth following its May 9, 2025 IPO. Net income available to common shareholders rose to $20.9 million in the fourth quarter from $8.0 million a year earlier, while full-year net income climbed to $97.4 million from $38.0 million in 2024, as the combined ratio improved to 62.8% in the quarter and 63.7% for the year, supported by lower losses, higher investment income and disciplined expense management.

The board also declared a special cash dividend of $1.02 per share of common stock, payable on March 30, 2026 to shareholders of record on March 16, 2026, underscoring management’s confidence in the company’s capital position and earnings power. Policies in force reached about 422,000 by year-end 2025, driven by growth in the voluntary market and selective Citizens take-outs, reinforcing American Integrity’s role as a leading Florida residential insurer and positioning the company for further expansion in targeted Florida segments and new states while maintaining a focus on underwriting discipline and reinsurance strength.

The most recent analyst rating on (AII) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on American Integrity Insurance Group, Inc. stock, see the AII Stock Forecast page.

American Integrity Awards RSUs to Key Executives

On December 4, 2025, American Integrity Insurance Group, Inc.‘s Compensation Committee awarded restricted stock units (RSUs) to key executives, including the CEO, President, Chairman, and CFO, under the 2025 Long-Term Incentive Plan. These RSUs, which vest in three equal annual installments starting in 2026, are part of the company’s strategy to incentivize and retain its leadership team.

The most recent analyst rating on (AII) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on American Integrity Insurance Group, Inc. stock, see the AII Stock Forecast page.