Variable Interest Entity

3 Months Ended

Mar. 31, 2026

As part of the 2023-2024 catastrophe excess of loss reinsurance placement, which incepted on June 1, 2023, AIIC

entered into a reinsurance agreement with Catstyle, a segregated account controlled by the Company. Catstyle

provides reinsurance coverage for layer one of the Company’s catastrophe reinsurance program effective June 1,

2023 through May 31, 2024, June 1, 2024 through May 31, 2025, and June 1, 2025 through May 31, 2026. Catstyle

reinsurance eliminates in consolidation.

To establish the Catstyle, AIIG entered into a master preference shareholder agreement with Artex whereby AIIG

purchased 1,000 non-voting redeemable preference shares, par value of $1.00, to become the sole shareholder of

Catstyle. AIIG also contributed additional surplus in order to fully capitalize Catstyle.

The Company was determined to be the primary beneficiary of Catstyle, a silo that is a VIE within Artex, as AIIG

has the power to direct the activities that significantly affect the economic performance as well as the obligation to

absorb losses and the right to receive benefits that could potentially be significant of Catstyle. Thus, AIIG has

consolidated the assets, liabilities and operations of Catstyle in its consolidated financial statements with

intercompany balances and transactions eliminated in consolidation.

The following table presents, on a consolidated basis, the balance sheet classification and exposure of restricted cash

and investments held in the segregated account, which are used to settle reinsurance obligations of the VIE as of the

dates presented. Restricted cash and investments held in the segregated account are required to be held in a trust

account solely for the benefit of the Company and can be used to settle activity under the reinsurance agreement.

Any restricted cash or investments held in the segregated account not actively being used to settle activity under the

reinsurance agreement can be paid to the Company by dividend based upon underwriting results of the segregated

account or by expiration or termination of the reinsurance agreement. Catstyle cannot declare or pay dividends

without necessary approvals from the Bermuda Monetary Authority (the “Authority”).


	March 31, 2026	December 31, 2025
Restricted cash and cash equivalents	$54,311	$39,364
Total	$54,311	$39,364

American Integrity Insurance Group, Inc. 10-Q