Long-term Debt

On June 27, 2007, the Company entered into a $7,000 surplus note with the SBAF under Florida’s Insurance Capital

Build-Up Incentive Program (the “Program”). The term of the surplus note is 20 years and accrues interest, adjusted

quarterly based on the 10-year Constant Maturity Treasury Rate. The effective interest rate paid on the surplus note

was 4.15% and 3.75% for the years ended December 31, 2025 and December 31, 2024.

Quarterly principal payments of $103 are due through 2027. Aggregate principal payments of approximately $411

were made during each of years ended December 31, 2025 and December 31, 2024. Any payment of the interest or

repayment or principal is subject to approval by the FLOIR and may be paid only out of the insurance subsidiary’s

earnings and only if its surplus exceeds specified levels required by the FLOIR.

The Company’s insurance subsidiary, AIIC, is in compliance with each of the loan’s covenants as implemented by

the agreement with the SBAF. An event of default will occur if AIIC: (i) fails to maintain a writing ratio of no more

than 2 to 1, net premiums written to policyholders’ surplus; (ii) fails to submit quarterly filings to the FLOIR; (iii)

fails to maintain a minimum surplus balance of $50,000, except for certain situations; (iv) misuses surplus note

proceeds; (v) fails to make payments of interest and/or principal; (vi) makes any misrepresentations in the

application for the Program; or (vii) pays any dividend when principal or interest payments are past due. Failure to

fulfill any of these requirements may result in an increase in the interest rate to the maximum interest rate permitted

by law, acceleration of the repayment of principal and interest, shortened term of the note, or the note being called

and demand of full repayment. As of December 31, 2025 and December 31, 2024, AIIC’s net premiums written to

surplus ratio was in excess of the required minimums and, therefore, the Company’s insurance subsidiary is not

subject to the penalty rate.

Long-term debt consisted of the following at:


	December 31,
	2025	2024
Due currently	$412	$412
Due later	206	617
Surplus note	$618	$1,029

The following table summarizes future maturities of long-term debt as of December 31, 2025:


	(in thousands)
2026	$412
2027	206
Thereafter	—
	$618

Interest expense for the years ended December 31, 2025 and December 31, 2024 was $34 and $46, respectively.

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

American Integrity Insurance Group, Inc. Debt Disclosure

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