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American Integrity Insurance Group, Inc. (AII)

Company Dividend Discount ModelIndustry: Insurance - Property & CasualtySector: Financial Services

Valuation Snapshot

Stable Growth$32.59 - $46.91$39.58
Multi-Stage$52.67 - $57.86$55.22
Blended Fair Value$47.40
Current Price$22.31
Upside112.45%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023
DPS0.00%0.00%0.640.100.000.000.000.000.000.000.000.00
YoY Growth--554.55%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--3.76%0.57%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)87.15
(-) Cash Dividends Paid (M)22.88
(=) Cash Retained (M)64.28
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)17.4310.896.54
Cash Retained (M)64.2864.2864.28
(-) Cash Required (M)-17.43-10.89-6.54
(=) Excess Retained (M)46.8553.3857.74
(/) Shares Outstanding (M)18.9218.9218.92
(=) Excess Retained per Share2.482.823.05
LTM Dividend per Share1.211.211.21
(+) Excess Retained per Share2.482.823.05
(=) Adjusted Dividend3.684.034.26
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$32.59$39.58$46.91
Upside / Downside46.06%77.39%110.28%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)87.1586.2885.4284.5683.7282.8885.37
Payout Ratio26.25%39.00%51.75%64.50%77.25%90.00%92.50%
Projected Dividends (M)22.8833.6544.2054.5464.6774.5978.96

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)30.5330.8531.16
Year 2 PV (M)36.4037.1537.90
Year 3 PV (M)40.7642.0243.31
Year 4 PV (M)43.8645.6847.55
Year 5 PV (M)45.9148.3050.79
PV of Terminal Value (M)799.38841.00884.35
Equity Value (M)996.851,045.011,095.06
Shares Outstanding (M)18.9218.9218.92
Fair Value$52.67$55.22$57.86
Upside / Downside136.10%147.51%159.36%

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