Florida-based American Integrity Insurance Seeks to Go Public Through IPO

American Integrity Insurance, a prominent property insurance provider in Florida boasting over 350,000 policies, has set its sights on Wall Street with plans to go public through an initial public offering (IPO). The Florida-based parent company, American Integrity Insurance Group, established in 2006, recently filed a registration statement with the U.S. Securities and Exchange Commission in anticipation of the IPO. The company aims to amass up to $100 million through this public offering, according to Renaissance Capital.

In a letter included in the filing, CEO and founder Bob Ritchie expressed confidence in the company’s prospects for growth, citing advantageous regulatory reforms in Florida that have enhanced the property insurance underwriting ecosystem in the state. These legislative changes, implemented in December 2022, are viewed as catalysts for American Integrity Insurance’s pursuit of new business prospects that were previously not viable due to stringent underwriting and profitability standards.

The slated stock symbol on the New York Stock Exchange for the company is AII, and while the filing does not specify the IPO’s date or the volume of shares to be offered, it discloses plans for the company’s transformation from a Texas LLC to a Delaware-registered corporation.

Despite the promising financial outlook, the SEC filing underscores inherent risks associated with an investment in American Integrity Insurance. Factors such as potential inadequacies in loss reserves, reliance on historical data for future projections, and consequent inaccuracies in estimates pose threats to the firm’s financial performance, competitive edge, and expansion aspirations in the property and casualty insurance sector.

As of the close of 2024, American Integrity Insurance reported 356,108 active policies, primarily concentrated in Florida, marking a substantial increase from around 260,000 policies held in Florida in the second quarter of 2024. Homeowners and dwelling-fire policies constitute the majority of the company’s policy portfolio.

The company’s financials have been on an upward trajectory in recent years, with a noteworthy shift from a $4.8 million net loss in 2020 to nearly $38 million in net income in 2024. If the IPO transpires successfully, American Integrity Insurance will join a small cohort of publicly traded insurance carrier companies domiciled in Florida, including Universal Property & Casualty Insurance (Universal Insurance Holdings) and Heritage Insurance (Heritage Insurance Holdings).