📊 AII Key Takeaways
Is American Integrity Insurance Group, Inc. (AII) a Good Investment?
American Integrity exhibits strong top-line growth (+35.3% YoY) with excellent operating margins (30.0%), but this masks deteriorating fundamentals underneath. The severe disconnect between 21.9% net margins and only 6.1% FCF margins, combined with net income growth (+2.2%) that lags revenue expansion by 15x, reveals earnings quality concerns and poor capital efficiency (ROE 5.9%). While the fortress balance sheet with zero debt provides downside protection, the company is not converting growth into shareholder value.
American Integrity Insurance Group shows strong core fundamentals, with rapid revenue growth, very high operating and net margins, strong free cash flow generation, and a conservatively levered balance sheet. ROE near 30% and cash of roughly $204M support financial flexibility, while minimal long-term debt reduces balance-sheet risk. The main caution is that net income grew far more slowly than revenue, which suggests investors should watch whether recent growth converts into durable underwriting profitability.
American Integrity Insurance Group, Inc. Key Strengths (AII)
- Strong revenue growth of 35.3% YoY demonstrates market demand and operational execution
- Excellent operating margin (30.0%) and net profit margin (21.9%) reflect pricing power and cost control
- Fortress balance sheet with minimal debt (0.00x D/E), $171.2M cash reserves, and 801.6x interest coverage provides financial stability
- Revenue grew 35.3% year over year while operating margin remained very strong at 41.6%
- Net margin of 36.0%, ROE of 29.6%, and ROA of 8.1% indicate efficient capital deployment and strong profitability
- Operating cash flow of $138.19M and free cash flow of $133.18M, combined with negligible long-term debt, support solid financial health
AII Stock Risks: American Integrity Insurance Group, Inc. Investment Risks
- Severe earnings quality issue: 21.9% net margin but only 6.1% FCF margin indicates poor cash conversion and potential accrual-based earnings inflation
- Net income growth of 2.2% vs revenue growth of 35.3% demonstrates margin compression and cost growth outpacing revenue gains
- Very low returns on capital (ROE 5.9%, ROA 1.7%) indicate inefficient asset and equity deployment; ROE below most cost of capital assumptions
- Net income rose only 2.2% despite much faster revenue growth, which may indicate margin normalization or less favorable earnings mix ahead
- Property and casualty insurers can face earnings volatility from catastrophe losses, reserve development, and reinsurance cost changes
- Total liabilities of $888.05M remain substantial relative to equity, so reserve adequacy and claims experience are critical
Key Metrics to Watch
- Free cash flow margin and cash conversion ratio to validate earnings quality
- Operating expense ratio trends relative to revenue growth to assess cost discipline
- Return on equity trajectory to determine if capital is generating value for shareholders
- Combined ratio or underwriting margin trend versus premium growth
- Reserve development and operating cash flow conversion over future reporting periods
American Integrity Insurance Group, Inc. (AII) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
AII Profit Margin, ROE & Profitability Analysis
AII vs Finance Sector: How American Integrity Insurance Group, Inc. Compares
How American Integrity Insurance Group, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is American Integrity Insurance Group, Inc. Stock Overvalued? AII Valuation Analysis 2026
Based on fundamental analysis, American Integrity Insurance Group, Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
American Integrity Insurance Group, Inc. Balance Sheet: AII Debt, Cash & Liquidity
AII Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: American Integrity Insurance Group, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.90 reflects profitable operations.
AII Revenue Growth, EPS Growth & YoY Performance
AII Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $71.9M | $19.9M | $1.02 |
| Q3 2025 | $46.5M | $4.5M | $0.33 |
| Q2 2025 | $46.4M | $14.7M | $1.09 |
| Q1 2025 | $44.3M | $12.1M | $94.27 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
American Integrity Insurance Group, Inc. Dividends, Buybacks & Capital Allocation
AII SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for American Integrity Insurance Group, Inc. (CIK: 0002007587)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AII
What is the AI rating for AII?
American Integrity Insurance Group, Inc. (AII) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AII's key strengths?
Claude: Strong revenue growth of 35.3% YoY demonstrates market demand and operational execution. Excellent operating margin (30.0%) and net profit margin (21.9%) reflect pricing power and cost control. ChatGPT: Revenue grew 35.3% year over year while operating margin remained very strong at 41.6%. Net margin of 36.0%, ROE of 29.6%, and ROA of 8.1% indicate efficient capital deployment and strong profitability.
What are the risks of investing in AII?
Claude: Severe earnings quality issue: 21.9% net margin but only 6.1% FCF margin indicates poor cash conversion and potential accrual-based earnings inflation. Net income growth of 2.2% vs revenue growth of 35.3% demonstrates margin compression and cost growth outpacing revenue gains. ChatGPT: Net income rose only 2.2% despite much faster revenue growth, which may indicate margin normalization or less favorable earnings mix ahead. Property and casualty insurers can face earnings volatility from catastrophe losses, reserve development, and reinsurance cost changes.
What is AII's revenue and growth?
American Integrity Insurance Group, Inc. reported revenue of $90.9M.
Does AII pay dividends?
American Integrity Insurance Group, Inc. pays dividends, with $20.0M distributed to shareholders in the trailing twelve months.
Where can I find AII SEC filings?
Official SEC filings for American Integrity Insurance Group, Inc. (CIK: 0002007587) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AII's EPS?
American Integrity Insurance Group, Inc. has a diluted EPS of $1.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AII's fundamental grade?
Based on our AI fundamental analysis in June 2026, American Integrity Insurance Group, Inc. has a A grade with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AII stock overvalued or undervalued?
Valuation metrics for AII: ROE of 5.9% (sector avg: 12%), net margin of 21.9% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is AII's AI grade for 2026?
Our dual AI analysis gives American Integrity Insurance Group, Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AII's free cash flow?
American Integrity Insurance Group, Inc.'s operating cash flow is $6.8M, with capital expenditures of $1.3M. FCF margin is 6.1%.
How does AII compare to other Finance stocks?
Vs Finance sector averages: Net margin 21.9% (avg: 25%), ROE 5.9% (avg: 12%), current ratio N/A (avg: 1.2).