American Integrity Insurance Group, Inc. Announces Full Placement of 2026-2027 CAT XOL Reinsurance Program

Key Terms

catastrophe excess of loss reinsurance financial

A catastrophe excess of loss reinsurance policy is a contract that kicks in when an insurer’s losses from a single large disaster exceed a set threshold, covering the amount above that threshold up to a predetermined limit. Think of it like an umbrella that only opens after a storm causes massive damage; for investors, it matters because it reduces an insurer’s exposure to extreme losses, stabilizes capital and earnings, and influences pricing and solvency metrics.

indemnity based technical

An indemnity based arrangement is a payment model where a payer promises to cover losses or expenses after they occur, reimbursing valid claims rather than providing upfront services or fixed payments. For investors, this matters because it shifts financial risk to the payer and creates variable cash flows tied to the frequency and size of claims, like a homeowner getting reimbursed by insurance after a storm rather than receiving a set monthly benefit in advance.

parametric covers technical

Parametric covers are insurance policies that pay a fixed or formula-based amount when a predefined measurable event occurs—like wind speed, earthquake magnitude, or rainfall—rather than reimbursing actual loss. For investors, they matter because payouts are faster and more predictable than traditional claims, which can reduce a company’s cash-flow uncertainty and lower recovery time after disasters, affecting risk profiles, reserve needs, and valuation of firms that use or sell them.

Insurance Linked Securities financial

Insurance-linked securities are financial instruments that transfer specific insurance risks—such as losses from hurricanes or other catastrophes—from insurers to investors, who receive higher-than-normal returns but can lose part or all of their principal if the insured event happens. They matter to investors because they offer a way to diversify away from traditional market risk (similar to adding a different asset class to a portfolio) and can provide returns uncorrelated with stocks and bonds, while also affecting how insurance losses are financed.

catastrophe bonds financial

Catastrophe bonds are debt securities issued by insurers or reinsurers to transfer the financial risk of large natural disasters to investors: buyers receive higher interest payments but can lose some or all of their invested principal if a specified catastrophe (like a major hurricane or earthquake) occurs. They matter to investors because they offer attractive yields and portfolio diversification that is not tied to market movements, but carry concentrated event risk similar to buying insurance against disasters.

Florida Hurricane Catastrophe Fund regulatory

A state-run insurance backstop that helps pay a portion of insured hurricane losses in Florida by reimbursing private insurers after major storms. It acts like a shared emergency reserve or communal safety net: by absorbing some of the biggest payouts, it helps keep insurance companies solvent, limits sudden premium spikes for homeowners, and affects the financial exposure and regulatory risk that investors face when owning insurance companies or related bonds.

segregated cell captive reinsurer financial

A segregated cell captive reinsurer is an insurance vehicle that legally separates each client’s contracts, assets and liabilities into isolated ‘cells’ inside a single company, like different rooms in a house that can’t mix their contents. For investors, this structure matters because it limits the risk that one client’s losses will drain the whole company’s capital, improves capital efficiency and can change regulatory treatment, which affects potential returns and volatility.

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TAMPA, Fla.--(BUSINESS WIRE)-- American Integrity Insurance Group, Inc. (NYSE: AII) (“American Integrity,” “we,” “us,” “our” or the “Company”), a Tampa-based property and casualty insurance holding company and one of Florida’s leading providers of residential property insurance, announced today that it has fully placed its 2026-2027 indemnity based, catastrophe excess of loss reinsurance program for its insurance subsidiary, American Integrity Insurance Company (“AIIC”), which is effective as of June 1, 2026.

Jon Ritchie, President of American Integrity, commented, “I am pleased to announce the successful completion of our 2026-2027 catastrophe excess of loss reinsurance program. This year’s placement benefits from meaningful risk-adjusted rate reductions at the upper end of a US property catastrophe market that was publicly expected to be priced down 15-20% for June 1 renewals, improved terms and conditions, and an improved net retention profile. Due to the continued growth in premium and exposure that we have experienced over the past year, we have increased our total third-party excess of loss reinsurance limit for all occurrences by $409.1 million, or 15.8%, to $2.99 billion, over the 2025 treaty.”

Highlights of the 2026-2027 catastrophe reinsurance program include:

• The reinsurance program provides third-party coverage of $2.25 billion for a single catastrophic event.
• The total incurred net consolidated catastrophe reinsurance premiums ceded to third parties is expected to total $430 - $440 million for the 2026 treaty year.
• The first event tower, including retentions, is equal to a 1-in-130 year return period, consistent with last year’s program.
• Market conditions were favorable for this year’s renewal, largely as a result of a healthy reinsurance market, the success of the Florida legislative reforms and the lack of severe storm activity in 2025. Market observers have publicly stated that U.S. property catastrophe cedents are experiencing up to 20% reductions in risk-adjusted pricing, and we believe our renewal is consistent with that market dynamic. The exception is that no risk-adjusted pricing benefit was realized on the $515 million of limit purchased from the Florida Hurricane Catastrophe Fund (“FHCF”) or the $565 million of multi-year bonds issued in 2025.
• The Company took advantage of the favorable pricing environment to reduce the Company’s net retention exposure despite an estimated 19% growth in peak season in-force exposure versus the prior year treaty. Our first event retention will remain flat at $35 million, and our second event retention will decrease from $35 million to $20 million for named storms (with $10 million of those amounts retained by AIIC and the remainder retained by our segregated cell captive reinsurer). Our net retention for the third event decreases from $15.8 million to $10 million, our fourth event will remain flat at $10 million, and our net retention for the third and fourth event is retained by AIIC. In a four-event hurricane season, our aggregate retention has decreased from $95 million to $75 million. Additionally, our ex-Florida first storm retention decreased from $35 million to $10 million.
• The $3 billion placement is a combination of protection provided by traditional reinsurers, Insurance Linked Securities (“ILS”) investors, the FHCF and our captive reinsurer. The entire program is indemnity based, with no parametric covers. All reinsurers participating in our 2026-2027 catastrophe reinsurance program were rated A- or better by A.M. Best or were required to post collateral up to 100% of all obligations to the Company.
  • The traditional reinsurance market represents $1.65 billion of limit, up from $1.1 billion last year. There is no material multi-year coverage in the traditional reinsurance placement.
  • The ILS market includes the $565 million catastrophe bonds issued in 2025, which expire at the end of the 2026 treaty year (May 2027), and an additional $260 million of catastrophe bonds issued in 2026 at more favorable pricing, which expire at the end of the 2028 treaty year (May 2029).
  • The FHCF provides $572 million of limit (with a participation of 90%).

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 may be forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. 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. Please refer to the risks discussed in sections titled “Risk Factors” in our reports filed with the Securities and Exchange Commission for further information on risks we may face. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260530463062/en/

Company Contact:
Brian Foley, CFO
American Integrity Insurance Group, Inc.
Tel (813) 644-6513
bfoley@aii.com

Source: American Integrity Insurance Group, Inc.