Ategrity Specialty Insurance Company Holdings Reports Fourth Quarter 2025 Results

Gross written premiums up 30.2% and combined ratio of 84.9% drive record earnings

Ategrity Specialty Insurance Company Holdings (NYSE:ASIC) today announced financial results for the quarter ended December 31, 2025. The Company reported net income attributable to stockholders of $25.3 million, or $0.51 per diluted share, compared to $21.5 million, or $0.55 per diluted share, in the prior-year period. Adjusted net income attributable to stockholders⁽¹⁾ was $25.4 million, or $0.51 per diluted share⁽¹⁾.

Fourth Quarter 2025 Highlights

• Gross written premiums increased 30.2% to $154.0 million
• Net income attributable to stockholders was $25.3 million, or $0.51 per diluted share, up 17.3%
• Adjusted net income attributable to stockholders⁽¹⁾ was $25.4 million, or $0.51 per diluted share
• Combined ratio was 84.9%, compared to 92.3% in Q4 2024
• Adjusted return on stockholders' equity⁽¹⁾ was 16.9%
• Book value per share at quarter-end was $12.78 per share, up 23.2% from Q4 2024

Chief Executive Officer Justin Cohen said, "Ategrity delivered another record quarter, with continued growth and margin expansion. Our performance reflects the durability of our underwriting strategy: disciplined pricing, precise risk selection, and consistent execution across the platform. Broader distribution and targeted growth initiatives increased submission flow, which we converted into profitable business while maintaining selectivity. Our model continued to scale efficiently, generating operating leverage and a further reduction in the expense ratio. With analytics and automation embedded across the organization, we are steadily extending our competitive advantage and compounding profitable growth."

Underwriting Results

For the quarter ended December 31, 2025, gross written premiums increased 30.2% compared to the prior-year period, driven by execution of our growth initiatives and increased engagement across our expanding distribution network. Gross written premiums for casualty lines increased 37.5% year-over-year, reflecting the Company's strategic focus on broadening casualty-related products and verticals. Gross written premiums in property lines increased 17.9% year-over-year, an acceleration of growth on a sequential basis, driven by growth in areas with limited catastrophe exposure.

Underwriting income⁽¹⁾ was $15.5 million for the quarter, up 160.3% from $5.9 million in the prior-year period. The combined ratio for the quarter was 84.9%, a decrease from 92.3% in the prior-year period, driven by improvements in both the loss and expense ratios. The loss ratio decreased by 1.2 percentage points to 57.1%, supported by strong underwriting results in property, including lower attritional losses and favorable catastrophe experience.

The overall expense ratio was 27.8% for the quarter, compared to 33.9% in the prior-year period, driven by operating expense leverage and lower net policy acquisition costs. Operating expenses, net of fee income, decreased as a percentage of net earned premiums by 2.4 percentage points to 10.5%, reflecting emerging scale benefits of our centralized model and stronger fee income. Policy acquisition costs also improved, decreasing by 3.7 percentage points to 17.3% of net earned premiums due to a favorable shift in our business mix.

President and Chief Underwriting Officer Chris Schenk said, "We have built a business with multiple, differentiated pathways for growth across market cycles. That approach is evident in the strength of our submission pipeline, our financial performance, and our rate change results. We exited 2025 with positive property growth while many peers contracted, reflecting our deliberate decision to avoid trend-chasing in catastrophe-exposed property. Our management and professional liability lines established durable positions in their early period of development despite broader market softening. In casualty, we delivered strong growth across our core verticals, and our newly launched retail-trade vertical generated meaningful submission momentum exiting the fourth quarter, supported by Project Heartland and a highly engaged, diversified distribution network.

"We wrote new business above our cost of product, preserving account-level economics and supporting long-term value. That technical discipline—particularly in small and middle-market risks—has driven renewal stability and portfolio durability."

Summary of Operating Results

The following table summarizes the Company's results of operations for the three months and year ended December 31, 2025 and 2024:

Gross Written Premiums

The following table presents gross written premiums by product for the three months and year ended December 31, 2025 and 2024:

Expense Ratio

The following tables summarize the components of our expense ratio for the three months and year ended December 31, 2025 and 2024:

Investment results

The following tables summarize net investment income and net realized and unrealized gains on investments for the three months and year ended December 31, 2025 and 2024:

Non-GAAP Financial Measures

We report our financial results in accordance with GAAP. However, we believe that certain non-GAAP financial measures provide investors in our common stock with additional useful information in evaluating our performance. Management believes that excluding certain items that are not indicative of core performance assists in evaluating our ability to generate earnings and to more readily compare these metrics between past and future periods. These non-GAAP financial measures may be different than similarly titled measures used by other companies.

These non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with GAAP. There are limitations related to the use of these non-GAAP financial measures as compared to the most directly comparable GAAP financial measures.

Underwriting Income

We define underwriting income as income before income taxes excluding the impact of net investment income, net realized and unrealized gains (losses) on investments, other income, interest expense, and other expenses (which include expenses related to corporate activities and expenses recorded by us in connection with the Company's initial public offering). Underwriting income is a measure of the pre-tax profitability of our underwriting operations and allows us to evaluate our underwriting performance without regard to net investment income among other things. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Underwriting income should not be viewed as a substitute for income before income taxes calculated in accordance with GAAP and other companies may define underwriting income differently.

Underwriting income for the three months and year ended December 31, 2025 and 2024 reconciles to income before income taxes as follows:

Adjusted net income attributable to stockholders

We define adjusted net income attributable to stockholders as net income attributable to stockholders excluding certain other non-operating expenses, which include expenses recorded by us in connection with the Company's initial public offering. We use adjusted net income attributable to stockholders as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted net income attributable to stockholders should not be viewed as a substitute for net income attributable to stockholders calculated in accordance with GAAP, and other companies may define adjusted net income differently.

Adjusted net income attributable to stockholders for the three months and year ended December 31, 2025 and 2024 reconciles to net income attributable to stockholders as follows:

Adjusted return on stockholders' equity

We define adjusted return on stockholders' equity as adjusted net income attributable to stockholders, expressed as a percentage of average beginning and ending stockholders' equity during the period. Adjusted net income attributable to stockholders excludes the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We use adjusted return on stockholders' equity as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted return on stockholders' equity should not be viewed as a substitute for return on stockholders' equity calculated in accordance with GAAP, and other companies may define adjusted return on stockholders' equity and adjusted net income attributable to stockholders differently.

Adjusted return on stockholders' equity for the three months and year ended December 31, 2025 and 2024 reconciles to return on stockholders' equity as follows:

Adjusted diluted earnings per share

We define adjusted diluted earnings per share as adjusted net income attributable to stockholders, divided by weighted average common shares outstanding - diluted for the period. We use adjusted diluted earnings per share as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted diluted earnings per share should not be viewed as a substitute for diluted earnings per share calculated in accordance with GAAP, and other companies may define adjusted diluted earnings per share differently.

Adjusted diluted earnings per share for the three months and year ended December 31, 2025 and 2024 reconciles to diluted earnings per share as follows:

Conference Call

Ategrity will hold a conference call to discuss this press release today, February 19, at 5:00 p.m. Eastern Time. Interested parties may access the conference call via a live webcast, which can be accessed at https://events.q4inc.com/attendee/640403362 or by visiting the Company's Investor Relations website. Please join the webcast at least 10 minutes before the scheduled start time. A replay of the event webcast will be available on the Company's Investor Relations website approximately two hours following the call, for a period of at least 30 days.

About Ategrity Specialty Insurance Company Holdings

Ategrity Specialty Insurance Company Holdings is a profitable and growing specialty insurance company dedicated to providing excess and surplus ("E&S") products to small to medium-sized businesses across the United States. We have built a proprietary underwriting platform that combines sophisticated data analytics with automated and streamlined processes to efficiently serve our clients and deliver long-term value to our stockholders. The small to medium-sized business market is characterized by large volumes of small-sized policies, and we believe our competitive edge lies in our ability to offer consistent, high-speed, and low-touch interactions that our distribution partners value. This advantage stems from our technology-driven method of standardizing, simplifying, and automating our transaction process, which we call productionized underwriting.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. You can identify forward-looking statements in this press release by the use of words such as "anticipates," "estimates," "expects," "intends," "plans," and "believes," and similar expressions or future or conditional verbs such as "will," "should," "would," "may," and "could." These forward-looking statements include, among others, statements relating to our investments in automation and analytics and their expected impact and expected profitable growth. These forward-looking statements are based on management's current expectations and assumptions about future events, which are inherently subject to uncertainties, risks, and changes in circumstances that are difficult to predict.

Our actual results may differ materially from those expressed in, or implied by, the forward-looking statements included in this press release as a result of various factors, including, among others: the risks and uncertainties discussed under the caption "Risk Factors" in our Prospectus filed pursuant to Rule 424(b)(4) filed with the Securities and Exchange Commission, (the "SEC") on June 11, 2025 and our other filings with the SEC. Accordingly, you should read this press release completely and with the understanding that our actual future results may be materially different from what we expect.

Forward-looking statements speak only as of the date of this press release. Except as expressly required under federal securities laws and the rules and regulations of the SEC, we do not have any obligation, and do not undertake, to update any forward-looking statements to reflect events or circumstances arising after the date of this press release, whether as a result of new information, future events, or otherwise. You should not place undue reliance on the forward-looking statements included in this press release or that may be made elsewhere from time to time by us, or on our behalf. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.

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