KBRA Publishes Ratings for American Integrity Insurance Company of Florida and American Integrity Insurance Group, LLC

KBRA publishes the insurance financial strength rating (IFSR) of BBB+ for American Integrity Insurance Company of Florida and the issuer rating of BB+ for American Integrity Insurance Group, LLC. The Outlook for both ratings is Stable. KBRA initially assigned an IFSR of BBB to American Integrity Insurance Company of Florida on September 25, 2019, and subsequently assigned the issuer rating of BB+ to American Integrity Insurance Group, LLC on January 6, 2023. The IFSR was upgraded to BBB+ on the same date. Both ratings were most recently affirmed on an unpublished basis on December 23, 2024.

Key Credit Considerations

The ratings reflect American Integrity Insurance Company of Florida’s (“American Integrity”) consistent profitability, conservative investment strategy, and sound capitalization. Over the past five years, aggregate net income has been supported by favorable underwriting results and strong investment income, contributing to meaningful growth in policyholder surplus. The company’s combined ratio remained under 100% in four of the last five years, outperforming Florida benchmarks. American Integrity also maintains a conservative fixed-income portfolio. The experienced management team continues to demonstrate expertise in navigating Florida’s challenging market while implementing strategic underwriting adjustments and expanding its geographic footprint into South Carolina and Georgia. The three-notch differential between the operating company and holding company ratings reflects structural subordination, regulatory dividend restrictions, a conservative financial leverage profile, and the financial flexibility afforded by the managing general agency structure.

Balancing these strengths are American Integrity’s concentrated earnings profile in Florida’s residential property market, significant exposure to catastrophic event risk, and reliance on reinsurance. While the company has begun geographic diversification, non-Florida premium remains limited, exposing it to volatility from severe weather events within Florida. Gross premium leverage and elevated reinsurance leverage remain above peer benchmarks, reflecting the company’s heavy reliance on reinsurance to manage risk. While the company’s catastrophe modeling and reinsurance program are robust, a severe unmodeled storm could materially impact capital. The company’s continued ability to secure adequate and affordable reinsurance will be critical in mitigating its exposure to event risk.

Rating Sensitivities

Factors that could positively impact the rating include profitable expansion outside of Florida to better diversify earnings, a trend of sustained underwriting profitability, the purchase of higher reinsurance limit, or a consistent trend of surplus growth and improved underwriting leverage metrics.

Factors that could negatively impact the rating include an unfavorable change in risk profile, namely inability to obtain reinsurance on acceptable terms and pricing, a decline in credit quality of the reinsurance panel, an inability to collect on reinsurance, or exceedance of reinsurance program limits, deterioration in risk-adjusted capitalization or underwriting leverage, sustained material adverse reserve development, or a material increase in financial leverage at the holding company.

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