By David Bull

April 15 - (The Insurer) - Florida homeowners carrier American Integrity Insurance Group has filed a Form S-1 registration statement ahead of a potential IPO as it highlighted “best-in-class” underwriting results and the “substantial attractive opportunities” in the Sunshine state following recent legislative reforms.

The preliminary prospectus filing means that the company could go public ahead of the 2025 hurricane season, which officially begins on June 1, as it also navigates volatility in the equity markets amid uncertainty over the Trump administration’s tariffs policy.

American Integrity was founded in 2006 by CEO Robert Ritchie. In the filing, it said net proceeds from the offering would be used for general corporate purposes, which may include contributing capital to its Florida carrier subsidiary to support growth.

The prospectus highlighted Florida’s large and growing population, which is in turn expanding the residential property insurance market in the state. American Integrity also said its expertise in underwriting homeowners business in Florida is “transferable and repeatable” in other southeastern coastal states.

It added in the filing that it may increase the amount of written premium it retains by reducing its use of quota share reinsurance in the future.

The common stock offering is set to be underwritten by KBW and Piper Sandler along with William Blair, Citizens Capital Markets, Oppenheimer & Co and Raymond James.

American Integrity said that last year it finished up with 356,108 policies in force and generated gross premiums written of $767.7 million, up from $641.0 million in 2024.

It delivered net income of $39.7 million in 2024, up from $37.8 million in 2023, with adjusted net income of $39.6 million and $37.8 million respectively, and ended last year with total members’ equity of $162.4 million.

“We believe the current Florida residential property insurance market presents substantial attractive opportunities for carriers with specialised underwriting and claims expertise, established distribution relationships, advanced technology, and entrepreneurial leadership,” said the company in its S-1.

The company claims to have built a technology-forward platform that “augments the expertise” in its underwriting and claims teams, enhances its access to risk and claims data, accelerates and improves its underwriting and claims decision making, and improves its distribution partner and policyholder interface.

“Our technology and data capture are critical to our ability to monitor our underwriting results at a granular level, timely modify our underwriting criteria and pricing to respond to changing market conditions, and effectively navigate Florida’s historically volatile property insurance market cycles,” it continued.

In addition to writing homeowners business in the Florida voluntary market, American Integrity has assumed policies from state-backed Citizens.

In the S-1 the carrier said that it believes selectively assuming policies from Citizens as it continues its depopulation drive in the current market environment can be an “attractive opportunity” to augment its growth and profitability.

The prospectus highlighted the carrier’s multi-channel distribution strategy which includes relationships with independent insurance agents as well as national insurance carriers that have restricted writing residential homeowners policies on their own balance sheets in the state.

American Integrity has partnerships with Allstate, American Family, Farmers, Liberty Mutual, The Hartford (AARP), Progressive and USA, and has recently added relationships with affiliates of Horace Mann Educators and South Carolina Farm Bureau Insurance.

The company also works with retail insurance agents affiliated with homebuilders to increase its access to the fast-growing new home construction market.

“We believe this distribution channel will continue to grow as a result of continued strong population growth within Florida, a lack of available existing home supply, and the resulting increase in new home building.

“Many of our homebuilder partnerships operate in additional southeastern coastal states and we will look to leverage these relationships as we selectively expand our geographic footprint,” it continued.

CONSISTENT PROFITABILITY

In its preliminary prospectus, the Florida-based insurer said that despite many years of expensive cat events and elevated attritional losses for the overall P&C industry, and particularly the property market in the Sunshine State, it has delivered a positive ROE in every year since its inception except 2018 and 2020.

“We have always sought to effectively manage the P&C insurance cycle and Florida property cycle since our inception to consistently deliver best-in-class underwriting results and profitability.

“We utilise the data we collect and analyse from our operations, combined with our view of the current P&C market and residential property insurance cycle dynamics, to adjust rates, forms, and various other underwriting criteria to optimise our new business writings,” said American Integrity.

In Florida it noted that the residential property insurance industry was hit by $6.9 billion in aggregate underwriting losses between 2017 and 2024, with nearly a dozen carriers failing. In contrast, American Integrity was profitable in every year but two, generating cumulative net income of $121.2 million.

“We believe these results are a testament to our disciplined approach and primary focus on stability and profitability, with a secondary focus on growth,” said the insurer.