American Integrity Insurance Group (AII) PT Raised to $22 at Raymond James

Raymond James analyst C. Gregory Peters raised the price target on American Integrity Insurance Group (NYSE: AII) to $22.00 (from $20.00) while maintaining a Outperform rating.

The analyst comments "We are reiterating our Outperform rating on the shares of American Integrity Insurance Group (AII). We believe AII could be favorably positioned during hurricane season due to superior risk selection, substantial reinsurance limits, and inexpensive valuation. We also maintain a positive view on the company’s growth outlook, supported by favorable tort reform and strong distribution relationships enabling AII to broaden its market reach and expand product offerings. The stock is up ~7% since reporting 2Q25 results ahead of our estimates, in part reflecting the better-than-expected revenue growth (61% y/y). AII reported 2Q25 GPW growth of ~29% y/y, driven by strong new business and improved retention (~81% vs. ~78% in 1Q25). PIF rose ~50% y/y to ~399K, including ~7K Citizens take-out policies. The company enforces binding restrictions in catastrophe-prone regions as storms approach, which may temper 3Q25 growth. The combined ratio rose to 72.9% from 60.8% in 2Q24 due to 23.8 pts of one-time IPO expenses, partially offset by 2.6 pts of favorable reserve development. AII’s rate filings for Miami-Dade and Broward counties have been approved, allowing them to re-enter the Tri-County area after over a decade. This region represents ~26% of Florida's total households and has some of the highest property values in the state. Management expects to begin writing business in the Tri-County region later this month. In addition, AII has started writing policies on older roofs, as recent tort reform has improved the underwriting conditions in this market. The company has also filed rates and expects to begin writing new commercial residential business in the 4Q25. Management expects modest volumes in the near term. AII reported continued success in growing PIF count in the new home construction markets in South Carolina and Georgia, leveraging its builder relationships. The company has recently been approved to write policies in North Carolina and expects to begin writing new home construction business in 4Q25."

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