Ategrity Specialty Insurance Co Holdings
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 14, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Item 2. Results of operations
Three months ended June 30, 2025, compared to three months ended June 30, 2024
The following table sets forth a summary of our condensed consolidated results of operations for the periods indicated.
| Three Months Ended June 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2025 | 2024 | Change | % Change |
| Gross written premiums | $167,502 | $126,614 | $40,888 | 32.3% |
| Ceded written premiums | (50,231) | (41,838) | (8,393) | 20.1% |
| Net written premiums | 117,271 | 84,776 | 32,495 | 38.3% |
| Three Months Ended June 30, | |||||
|---|---|---|---|---|---|
| ($ in thousands) · 2025 · 2024 · Change · % Change | |||||
| Net premiums earned | 86,928 | 72,638 | 14,290 | 19.7% | |
| Fee income | 1,524 | 191 | 1,333 | 697.9% | |
| Losses and loss adjustment expenses | 50,412 | 44,128 | 6,284 | 14.2% | |
| Underwriting, acquisition and insurance expenses | 28,430 | 24,315 | 4,115 | 16.9% | |
| Underwriting income (1) | 9,610 | 4,386 | 5,224 | 119.1% | |
| Net investment income | 11,891 | 5,728 | 6,163 | 107.6% | |
| Net realized and unrealized gains (losses) on investments | 1,409 | (4,215) | 5,624 | -133.4% | |
| Interest expense | (447) | (544) | 97 | -17.8% | |
| Other income | 28 | 24 | 4 | NM | |
| Other expenses | (161) | (56) | (105) | 187.5% | |
| Income before income taxes | 22,330 | 5,323 | 17,007 | 319.5% | |
| Income tax expense | 4,713 | 1,207 | 3,506 | 290.5% | |
| Net income | $17,617 | $4,116 | $13,501 | 328.0% | |
| Less: Net (loss) income attributable to non-controlling interest - General Partner | (5) | (828) | 823 | -99.4% | |
| Net income attributable to stockholders | $17,622 | $4,944 | $12,678 | 256.4% | |
| Key Metrics | |||||
| Adjusted net income attributable to stockholders (1) | $17,857 | $4,944 | |||
| Loss ratio | 58.0% | 60.8% | |||
| Expense ratio | 31.0% | 33.2% | |||
| Combined ratio (3) | 88.9% | 94.0% | |||
| Return on stockholders' equity (2) | 14.3% | 5.9% | |||
| Adjusted return on stockholders' equity (1)(2) | 14.5% | 5.9% | |||
| Diluted earnings per share | $0.39 | $0.14 | |||
| Adjusted diluted earnings per share(1) | $0.41 | $0.14 | |||
NM = Percentage change is not meaningful.
(1) Each of these metrics is a non-GAAP financial measure. See “—Reconciliation of non-GAAP financial measures” for a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP measure.
(2) For the three months ended June 30, 2025 and 2024, net income attributable to stockholders and adjusted net income attributable to stockholders are annualized to arrive at return on stockholders’ equity and adjusted return on stockholders’ equity.
(3) Ratios are calculated using unrounded figures. The sum of components may differ slightly from totals shown due to rounding.
Premiums
The following table presents gross written premiums by product for the three months ended June 30, 2025 and 2024:
| Three Months Ended June 30, | ||||
|---|---|---|---|---|
| ($ in thousands, except percentages) | 2025 | % of Total | 2024 | % of Total |
| Casualty | $107,023 | 63.9% | $68,300 | 53.9% |
| Property | 60,479 | 36.1% | 58,314 | 46.1% |
| Gross written premiums | $167,502 | 100.00% | $126,614 | 100.00% |
Our gross written premiums were $167.5 million for the three months ended June 30, 2025 compared to $126.6 million for the three months ended June 30, 2024, an increase of approximately $40.9 million, or 32.3%. The increase was primarily driven by growth in our distribution network and increased wallet share with our existing distribution partners. Growth in our casualty lines was consistent with our strategic focus of expanding casualty-related products and verticals. Growth in property lines reflected pricing actions and targeted reductions in catastrophe exposure that were initiated in 2024.
Net written premiums were $117.3 million for the three months ended June 30, 2025, compared to $84.8 million for the three months ended June 30, 2024, an increase of approximately $32.5 million, or 38.3%. The increase was primarily attributable to higher gross written premiums as well as a decrease in ceded written premiums due to a reduction in quota share reinsurance within our casualty lines.
Net premiums earned were $86.9 million for the three months ended June 30, 2025, compared to $72.6 million for the three months ended June 30, 2024, an increase of approximately $14.3 million, or 19.7%. The increase was primarily due to growth in gross written premiums, offset by the effect of ceded earned premiums from a ceded quota share reinsurance treaty placed in the beginning of 2024.
Fee income was $1.5 million for the three months ended June 30, 2025 compared to $0.2 million for the three months ended June 30, 2024, an increase of approximately $1.3 million. The increase was driven by continued implementation of market-standard policy-related fees.
Loss Ratio
Our loss ratio was 58.0% for the three months ended June 30, 2025 compared to 60.8% for the three months ended June 30, 2024. The loss ratio for the three months ended June 30, 2025 benefited from strong performance in our property portfolio, including favorable attritional and catastrophe loss experience. The decrease in the loss ratio compared to the three months ended June 30, 2024 was primarily driven by the lack of prior year development.
Our losses paid in the three months ended June 30, 2025 and 2024 were $33.8 million and $23.6 million, respectively. During the three months ended June 30, 2025, there was no development on our net incurred losses for prior periods. For the three months ended June 30, 2024, we incurred net losses of prior accident years of $2.6 million. This amount was primarily due to enhancements to our claims reserving approach with respect to loss adjustment expenses in our casualty lines.
Expense ratio
The following table summarizes the components of the expense ratio for the three months ended June 30, 2025 and 2024:
| Three Months Ended June 30, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| ($ in thousands, except percentages) | Expenses | % of Net Earned Premiums | Expenses | % of Net Earned Premiums |
| Policy acquisition costs | $16,088 | 18.5% | $15,329 | 21.1% |
| Operating expenses, net of fee income (1) | 10,818 | 12.4% | 8,795 | 12.1% |
| Underwriting, acquisition and insurance expenses, net of fee income (2) | $26,906 | 31.0% | $24,124 | 33.2% |
(1) Net of fee income of $1.5 million and $0.2 million for the three months ended June 30, 2025 and 2024, respectively.
(2) Ratios are calculated using unrounded figures. The sum of components may differ slightly from totals shown due to rounding.
Our expense ratio was 31.0% for the three months ended June 30, 2025 compared to 33.2% for the three months ended June 30, 2024. The improvement was driven by a lower policy acquisition ratio.
The decrease in policy acquisition costs as percentage of net earned premiums was primarily attributable to the earned impact of ceding commissions under a quota share contract placed in the beginning of 2024, and changes in our business mix.
The increase in operating expenses was primarily due to an increase in compensation and employee-related expenses, as headcount grew over the past twelve months to support our continued business growth, drive innovation, and to strengthen our operating capabilities ahead of our transition to becoming a public company.
Investing Results
The following tables summarize net investment income and net realized and unrealized gains on investments for the three months ended June 30, 2025 and 2024:
| Three Months Ended June 30, | ||||
|---|---|---|---|---|
| ($ in thousands, except percentages) | 2025 | 2024 | $ Change | % Change |
| Investment income | ||||
| Fixed-maturity securities | $6,460 | $2,634 | $3,826 | 145.3% |
| Short-term investments | 1,154 | 767 | 387 | 50.5% |
| Cash equivalents | 475 | 1,612 | (1,137) | -70.5% |
| Equity securities | — | 22 | (22) | 100.0% |
| Loans to affiliates | 1,543 | 250 | 1,293 | 517.2% |
| Securities sold not yet purchased | — | (103) | 103 | 100.0% |
| Total fixed income | 9,632 | 5,182 | 4,450 | 85.9% |
| Utility & Infrastructure Investments | 2,422 | 658 | 1,764 | 268.1% |
| Other expenses | (163) | (112) | (51) | 45.5% |
| Net investment income | 11,891 | 5,728 | 6,163 | 107.6% |
| Net realized and unrealized gains (losses) on investments | $1,409 | $(4,215) | $5,624 | -133.4% |
Net investment income was $11.9 million for the three months ended June 30, 2025, compared to $5.7 million for the three months ended June 30, 2024, an increase of $6.2 million, or 107.6%. This increase was driven by additional investments in fixed-maturity securities and short-term investments including the deployment of proceeds from our initial public offering. Included in net investment income is $2.4 million and $0.7 million attributable to Utility & Infrastructure Investments, net of investment management fees for the three months ended June 30, 2025 and 2024, respectively.
Net realized and unrealized gain on investments was $1.4 million for the three months ended June 30, 2025, compared to a net realized and unrealized loss of $4.2 million for the three months ended June 30, 2024, an increase of $5.6 million. This increase was primarily driven by gains on sales of fixed-maturity securities and a reduction in realized losses in the Utility & Infrastructure Investments compared to the prior-year period.
Interest expense was $0.4 million for the three months ended June 30, 2025 compared to $0.5 million for the three months ended June 30, 2024, a decrease of approximately $0.1 million, or 17.8% related to a decreased cost of our letters of credit.
Income tax expense was $4.7 million for the three months ended June 30, 2025 compared to $1.2 million for the three months ended June 30, 2024, an increase of approximately $3.5 million. Our effective tax rate was 21.1% for the three months ended June 30, 2025 compared to 22.7% for the three months ended June 30, 2024. The decrease in our effective tax rate was driven by an increase in non-taxable pass-through income.
Results of operations
Six months ended June 30, 2025, compared to six months ended June 30, 2024
The following table sets forth a summary of our condensed consolidated results of operations for the periods indicated.
| Six Months Ended June 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2025 | 2024 | Change | % Change |
| Gross written premiums | $283,645 | $208,219 | $75,426 | 36.2% |
| Ceded written premiums | (76,503) | (61,187) | (15,316) | 25.0% |
| Net written premiums | 207,142 | 147,032 | 60,110 | 40.9% |
| Net premiums earned | 165,229 | 140,917 | 24,312 | 17.3% |
| Fee income | 2,084 | 316 | 1,768 | 559.5% |
| Losses and loss adjustment expenses | 97,274 | 85,174 | 12,100 | 14.2% |
| Underwriting, acquisition and insurance expenses | 53,315 | 47,705 | 5,610 | 11.8% |
| Underwriting income (1) | 16,724 | 8,354 | 8,370 | 100.2% |
| Net investment income | 19,786 | 10,981 | 8,805 | 80.2% |
| Six Months Ended June 30, | |||||
|---|---|---|---|---|---|
| ($ in thousands) · 2025 · 2024 · Change · % Change | |||||
| Net realized and unrealized gains (losses) on investments | (3,190) | (1,828) | (1,362) | 74.5% | |
| Interest expense | (894) | (1,094) | 200 | -18.3% | |
| Other income | 993 | 48 | 945 | NM | |
| Other expenses | (399) | (110) | (289) | 262.7% | |
| Income before income taxes | 33,020 | 16,351 | 16,669 | 101.9% | |
| Income tax expense | 6,953 | 3,277 | 3,676 | 112.2% | |
| Net income | $26,067 | $13,074 | $12,993 | 99.4% | |
| Less: Net (loss) income attributable to non-controlling interest - General Partner | (16) | 374 | (390) | -104.3% | |
| Net income attributable to stockholders | $26,083 | $12,700 | $13,383 | 105.4% | |
| Key Metrics | |||||
| Adjusted net income attributable to stockholders (1) | $26,400 | $12,700 | |||
| Loss ratio | 58.9% | 60.4% | |||
| Expense ratio | 31.0% | 33.6% | |||
| Combined ratio (3) | 89.9% | 94.1% | |||
| Return on stockholders' equity (2) | 10.9% | 7.7% | |||
| Adjusted return on stockholders' equity (1) (2) | 11.0% | 7.7% | |||
| Diluted earnings per share | $0.60 | $0.35 | |||
| Adjusted diluted earnings per share(1) | $0.62 | $0.35 | |||
NM = Percentage change is not meaningful.
(1) Each of these metrics is a non-GAAP financial measure. See “—Reconciliation of non-GAAP financial measures” for a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP measure.
(2) For the six months ended June 30, 2025 and 2024, net income attributable to stockholders and adjusted net income attributable to stockholders are annualized to arrive at return on stockholders’ equity and adjusted return on stockholders’ equity.
Premiums
The following table presents gross written premiums by product for the six months ended June 30, 2025 and 2024:
| Six Months Ended June 30, | ||||
|---|---|---|---|---|
| ($ in thousands, except percentages) | 2025 | % of Total | 2024 | % of Total |
| Casualty | $189,163 | 66.7% | $118,806 | 57.1% |
| Property | 94,482 | 33.3% | 89,413 | 42.9% |
| Gross written premiums | $283,645 | 100.0% | $208,219 | 100.0% |
Our gross written premiums were $283.6 million for the six months ended June 30, 2025 compared to $208.2 million for the six months ended June 30, 2024, an increase of approximately $75.4 million, or 36.2%. The increase was primarily driven by growth in our distribution network and increased wallet share with our existing distribution partners. Growth in our casualty lines was consistent with our strategic focus of expanding casualty-related products and verticals. Growth in property lines reflected pricing actions and targeted reductions in catastrophe exposure that were initiated in 2024.
Net written premiums were $207.1 million for the six months ended June 30, 2025, compared to $147.0 million for the six months ended June 30, 2024, an increase of approximately $60.1 million, or 40.9%. The increase was primarily attributable to higher gross written premiums as well as a decrease in ceded written premiums due to a reduction in quota share reinsurance within our casualty lines.
Net premiums earned were $165.2 million for the six months ended June 30, 2025, compared to $140.9 million for the six months ended June 30, 2024, an increase of approximately $24.3 million, or 17.3%. The increase was primarily due to growth in gross written premiums, offset by the effect of ceded earned premiums related to a ceded quota share reinsurance treaty placed in the beginning of 2024.
Fee income was $2.1 million for the six months ended June 30, 2025 compared to $0.3 million for the six months ended June 30, 2024, an increase of approximately $1.8 million. The increase was driven by continued implementation of market-standard policy-related fees.
Loss Ratio
Our loss ratio was 58.9% for the six months ended June 30, 2025 compared to 60.4% for the six months ended June 30, 2024. The loss ratio for the six months ended June 30, 2025 benefited from strong performance in our property portfolio including favorable attritional loss experience. The decrease in the loss ratio compared to the six months ended June 30, 2024 was primarily driven by the lack of prior year development in the current period.
Our losses paid in the six months ended June 30, 2025 and 2024 were $66.0 million and $47.5 million, respectively. During the six months ended June 30, 2025, there was no development on our net incurred losses for prior periods. For the six months ended June 30, 2024, we incurred net losses of prior accident years of $4.9 million. This amount was primarily due to enhancements to our claims reserving approach with respect to loss adjustment expenses in our casualty lines.
Expense ratio
The following table summarizes the components of the expense ratio for the six months ended June 30, 2025 and 2024:
| Six Months Ended June 30, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| ($ in thousands, except percentages) | Expenses | % of Net Earned Premiums | Expenses | % of Net Earned Premiums |
| Policy acquisition costs | $30,820 | 18.7% | $30,232 | 21.5% |
| Operating expenses, net of fee income (1) | 20,411 | 12.4% | 17,157 | 12.2% |
| Underwriting, acquisition and insurance expenses, net of fee income | $51,231 | 31.0% | $47,389 | 33.6% |
(1) Net of fee income of $2.1 million and $0.3 million for the six months ended June 30, 2025 and 2024, respectively.
Our expense ratio was 31.0% for the six months ended June 30, 2025 compared to 33.6% for the six months ended June 30, 2024. The improvement was driven by a lower policy acquisition ratio.
The decrease in policy acquisition costs as percentage of net earned premiums was primarily attributable to the earned impact of ceding commissions under a quota share contract placed in the beginning of 2024, and changes in our business mix.
The increase in operating expenses was primarily due to an increase in compensation and employee-related expenses, as headcount grew over the past twelve months to support our continued business growth, drive innovation, and to strengthen our operating capabilities ahead of our transition to becoming a public company.
Investing Results
| Six Months Ended June 30, | ||||
|---|---|---|---|---|
| ($ in thousands, except percentages) | 2025 | 2024 | $ Change | % Change |
| Investment income | ||||
| Fixed-maturity securities | $12,725 | $3,521 | $9,204 | 261.4% |
| Short-term investments | 1,724 | 2,281 | (557) | -24.4% |
| Cash equivalents | 911 | 3,604 | (2,693) | -74.7% |
| Equity securities | — | 44 | (44) | 100.0% |
| Loans to affiliates | 1,793 | 501 | 1,292 | 257.9% |
| Securities sold not yet purchased | — | (235) | 235 | 100.0% |
| Total fixed income | 17,153 | 9,716 | 7,437 | 76.5% |
| Utility & Infrastructure Investments | 2,931 | 1,384 | 1,547 | 111.8% |
| Other expenses | (298) | (119) | (179) | 150.4% |
| Net investment income | 19,786 | 10,981 | $8,805 | 80.2% |
| Six Months Ended June 30, | ||||
|---|---|---|---|---|
| ($ in thousands, except percentages) | 2025 | 2024 | $ Change | % Change |
| Net realized and unrealized gains (losses) on investments | $(3,190) | $(1,828) | $(1,362) | 74.5% |
Net investment income was $19.8 million for the six months ended June 30, 2025, compared to $11.0 million for the six months ended June 30, 2024, an increase of $8.8 million, or 80.2%. This increase was driven by additional investments in fixed-maturity securities and short-term investments including the majority of the proceeds from our initial public offering. Included in net investment income were $2.9 million and $1.4 million attributable to Utility & Infrastructure Investments, net of investment management fees for the six months ended June 30, 2025 and 2024, respectively.
Net realized and unrealized loss on investments was $3.2 million for the six months ended June 30, 2025, compared to a net realized and unrealized loss of $1.8 million for the six months ended June 30, 2024, an increase in losses of $1.4 million. This change was primarily driven by an increase in net realized and unrealized losses related to the Utility & Infrastructure Investments offset by gains on sales of fixed-maturity securities, compared to the prior year period.
Interest expense was $0.9 million for the six months ended June 30, 2025 compared to $1.1 million for the six months ended June 30, 2024, a decrease of approximately $0.2 million, or 18.3% related to a decreased cost of our letters of credit.
Income tax expense was $7.0 million for the six months ended June 30, 2025 compared to $3.3 million for the six months ended June 30, 2024, an increase of approximately $3.7 million. Our effective tax rate was 21.1% for the six months ended June 30, 2025 compared to 20.0% for the six months ended June 30, 2024. The increase in our effective tax rate was driven by a decrease in non-taxable pass-through income.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.