Ategrity Specialty Insurance Co Holdings
For the period ended Sep 30, 2025. Filed Nov 12, 2025.
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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.
Sep 30, 2025 · Filed Nov 12, 2025
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Item 2. Results of operations
Three months ended September 30, 2025, compared to three months ended September 30, 2024
The following table sets forth a summary of our condensed consolidated results of operations for the periods indicated.
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2025 | 2024 | Change | % Change |
| Gross written premiums | $143,858 | $110,552 | $33,306 | 30.1% |
| Ceded written premiums | (36,348) | (34,624) | (1,724) | 5.0% |
| Net written premiums | $107,510 | $75,928 | $31,582 | 41.6% |
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2025 | 2024 | Change | % Change |
| Net premiums earned | 93,710 | 72,885 | 20,825 | 28.6% |
| Fee income | 2,225 | 249 | 1,976 | 793.6% |
| Losses and loss adjustment expenses | 56,199 | 45,230 | 10,969 | 24.3% |
| Underwriting, acquisition and insurance expenses | 29,116 | 24,452 | 4,664 | 19.1% |
| Underwriting income (1) | 10,620 | 3,452 | 7,168 | 207.7% |
| Net investment income | 10,961 | 6,810 | 4,151 | 61.0% |
| Net realized and unrealized gains (losses) on investments | 9,179 | 8,777 | 402 | 4.6% |
| Interest expense | (392) | (480) | 88 | -18.3% |
| Other income | 25 | 24 | 1 | 4.2% |
| Other expenses | (659) | (64) | (595) | 929.7% |
| Income before income taxes | 29,734 | 18,519 | 11,215 | 60.6% |
| Income tax expense | 6,118 | 3,346 | 2,772 | 82.8% |
| Net income | $23,616 | $15,173 | $8,443 | 55.7% |
| Less: Net (loss) income attributable to non-controlling interest - General Partner | 952 | 2,310 | (1,358) | -58.8% |
| Net income attributable to stockholders | $22,664 | $12,863 | $9,801 | 76.2% |
| Key Metrics | ||||
| Adjusted net income attributable to stockholders (1) | $22,828 | $12,863 | ||
| Loss ratio | 60.0% | 62.1% | ||
| Expense ratio | 28.7% | 33.2% | ||
| Combined ratio (2) | 88.7% | 95.3% | ||
| Return on stockholders' equity (3) | 15.8% | 14.7% | ||
| Adjusted return on stockholders' equity (1)(3) | 15.9% | 14.7% | ||
| Diluted earnings per share | $0.45 | $0.36 | ||
| Adjusted diluted earnings per share(1) | $0.46 | $0.36 | ||
(1) Each of these metrics is a non-GAAP financial measure. See “Reconciliation of non-GAAP financial measures” for a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP measure.
(3) For the three months ended September 30, 2025 and 2024, net income attributable to stockholders and adjusted net income attributable to stockholders are annualized to arrive at return on stockholders’ equity and adjusted return on stockholders’ equity.
Premiums
The following table presents gross written premiums by product for the three months ended September 30, 2025 and 2024:
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands, except percentages) | 2025 | % of Total | 2024 | % of Total |
| Casualty | $98,863 | 68.7% | $69,931 | 63.3% |
| Property | 44,995 | 31.3% | 40,621 | 36.7% |
| Gross written premiums | $143,858 | 100.0% | $110,552 | 100.0% |
Our gross written premiums were $143.9 million for the three months ended September 30, 2025 compared to $110.6 million for the three months ended September 30, 2024, an increase of approximately $33.3 million, or 30.1%. The increase was primarily driven by the execution of our growth initiatives and increased engagement across our expanding distribution network. Growth in our casualty lines was consistent with our strategic focus of expanding casualty-related products and verticals. The increase in our property lines primarily reflected the benefit of a full-year anniversary of the pricing and catastrophe management actions initiated in the third quarter of 2024, as well as our targeted growth initiatives.
Net written premiums were $107.5 million for the three months ended September 30, 2025, compared to $75.9 million for the three months ended September 30, 2024, an increase of approximately $31.6 million, or 41.6%. 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 $93.7 million for the three months ended September 30, 2025, compared to $72.9 million for the three months ended September 30, 2024, an increase of approximately $20.8 million, or 28.6%. 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 $2.2 million for the three months ended September 30, 2025 compared to $0.2 million for the three months ended September 30, 2024, an increase of approximately $2.0 million. The increase was driven by continued implementation of market-standard policy-related fees.
Loss Ratio
Our loss ratio was 60.0% for the three months ended September 30, 2025 compared to 62.1% for the three months ended September 30, 2024. The loss ratio for the three months ended September 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 September 30, 2024 was primarily driven by the lack of prior year development.
Our losses paid in the three months ended September 30, 2025 and 2024 were $33.2 million and $30.9 million, respectively. During the three months ended September 30, 2025, there was no development on our net incurred losses for prior periods. For the three months ended September 30, 2024, we incurred net losses of prior accident years of $1.3 million. This amount was primarily due to enhancements to our claims reserving approach with respect to loss adjustment expenses in our casualty lines.
Expense ratio
The following table summarizes the components of the expense ratio for the three months ended September 30, 2025 and 2024:
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| ($ in thousands, except percentages) | Expenses | % of Net Earned Premiums | Expenses | % of Net Earned Premiums |
| Policy acquisition costs | $16,741 | 17.9% | $14,348 | 19.7% |
| Operating expenses, net of fee income (1) | 10,150 | 10.8% | 9,856 | 13.5% |
| Underwriting, acquisition and insurance expenses, net of fee income (2) | $26,891 | 28.7% | $24,204 | 33.2% |
(1) Net of fee income of $2.2 million and $0.2 million for the three months ended September 30, 2025 and 2024, respectively.
Our expense ratio was 28.7% for the three months ended September 30, 2025 compared to 33.2% for the three months ended September 30, 2024. The improvement was driven by a lower policy acquisition ratio and operating expense ratio.
The decrease in policy acquisition costs as percentage of net earned premiums was primarily attributable to changes in our business mix and the earned impact of ceding commissions under a quota share contract placed in the beginning of 2024.
The decrease in operating expenses as a percentage of earned premiums was primarily due to operating expense leverage and increase in our fee income.
Investing Results
The following tables summarize net investment income and net realized and unrealized gains on investments for the three months ended September 30, 2025 and 2024:
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands, except percentages) | 2025 | 2024 | $ Change | % Change |
| Investment income | ||||
| Fixed-maturity securities | $6,599 | $4,863 | $1,736 | 35.7% |
| Short-term investments | 2,361 | 196 | 2,165 | 1104.6% |
| Cash equivalents | 433 | 1,267 | (834) | (65.8)% |
| Loans to affiliates | 1,537 | 250 | 1,287 | 514.8% |
| Securities sold not yet purchased | — | (13) | 13 | (100.0)% |
| Total fixed income | 10,930 | 6,563 | 4,367 | 66.5% |
| Utility & Infrastructure Investments | 64 | 177 | (113) | (63.8)% |
| Other expenses | (33) | 70 | (103) | (147.1)% |
| Net investment income | $10,961 | $6,810 | $4,151 | 60.9% |
| Net realized and unrealized gains (losses) on investments | $9,179 | $8,777 | $402 | 4.6% |
Net investment income was $11.0 million for the three months ended September 30, 2025, compared to $6.8 million for the three months ended September 30, 2024, an increase of $4.2 million, or 60.9%. 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 and income from loans to affiliates. Included in net investment income is $0.1 million and $0.2 million attributable to Utility & Infrastructure Investments, net of investment management fees for the three months ended September 30, 2025 and 2024, respectively.
Net realized and unrealized gain on investments was $9.2 million for the three months ended September 30, 2025, compared to a net realized and unrealized loss of $8.8 million for the three months ended September 30, 2024, an increase of $0.4 million. This increase was primarily driven by a decrease in realized losses on sale of fixed-maturity securities compared to the prior-year period.
During the three months ended September 30, 2025, the Company recognized an impairment loss of $38 thousand on certain fixed-maturity securities classified as available-for-sale. The impairment reflected the Company’s decision to sell the securities prior to recovery of their amortized cost basis, which required recognition of the full unrealized loss in earnings. The loss was recorded in net realized and unrealized gains (losses) within the condensed consolidated statements of operations.
Interest expense was $0.4 million for the three months ended September 30, 2025 compared to $0.5 million for the three months ended September 30, 2024, a decrease of approximately $0.1 million, or 18.3% related to a decreased cost of our letters of credit.
Income tax expense was $6.1 million for the three months ended September 30, 2025 compared to $3.3 million for the three months ended September 30, 2024, an increase of approximately $2.8 million. Our effective tax rate was 20.6% for the three months ended September 30, 2025 compared to 18.1% for the three months ended September 30, 2024. The increase in our effective tax rate was primarily driven by decrease in non-taxable pass-through income.
Results of operations
Nine months ended September 30, 2025, compared to nine months ended September 30, 2024
The following table sets forth a summary of our condensed consolidated results of operations for the periods indicated.
| Nine Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2025 | 2024 | Change | % Change |
| Gross written premiums | $427,503 | $318,771 | $108,732 | 34.1% |
| Ceded written premiums | (112,851) | (95,811) | (17,040) | 17.8% |
| Net written premiums | $314,652 | $222,960 | 91,692 | 41.1% |
| Net premiums earned | $258,939 | $213,802 | $45,137 | 21.1% |
| Fee income | 4,309 | 565 | 3,744 | 662.7% |
| Nine Months Ended September 30, | |||||
|---|---|---|---|---|---|
| ($ in thousands) · 2025 · 2024 · Change · % Change | |||||
| Losses and loss adjustment expenses | 153,472 | 130,404 | 23,068 | 17.7% | |
| Underwriting, acquisition and insurance expenses | 82,431 | 72,157 | 10,274 | 14.2% | |
| Underwriting income (1) | 27,345 | 11,806 | 15,539 | 131.6% | |
| Net investment income | 30,747 | 17,790 | 12,957 | 72.8% | |
| Net realized and unrealized gains (losses) on investments | 5,990 | 6,950 | (960) | -13.8% | |
| Interest expense | (1,286) | (1,574) | 288 | -18.3% | |
| Other income | 1,017 | 72 | 945 | 1312.5% | |
| Other expenses | (1,059) | (174) | (885) | 508.6% | |
| Income before income taxes | 62,754 | 34,870 | 27,884 | 80.0% | |
| Income tax expense | 13,071 | 6,622 | 6,449 | 97.4% | |
| Net income | $49,683 | $28,248 | $21,435 | 75.9% | |
| Less: Net (loss) income attributable to non-controlling interest - General Partner | 936 | 2,684 | (1,748) | -65.1% | |
| Net income attributable to stockholders | $48,747 | $25,564 | $23,183 | 90.7% | |
| Key Metrics | |||||
| Adjusted net income attributable to stockholders (1) | $49,228 | $25,564 | |||
| Loss ratio | 59.3% | 61.0% | |||
| Expense ratio | 30.2% | 33.5% | |||
| Combined ratio (2) | 89.4% | 94.5% | |||
| Return on stockholders' equity (3) | 13.2% | 10.0% | |||
| Adjusted return on stockholders' equity (1) (3) | 13.3% | 10.0% | |||
| Diluted earnings per share | $1.06 | $0.71 | |||
| Adjusted diluted earnings per share(1) | $1.09 | $0.71 | |||
(1) Each of these metrics is a non-GAAP financial measure. See “Reconciliation of non-GAAP financial measures” for a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP measure.
(3) For the nine months ended September 30, 2025 and 2024, net income attributable to stockholders and adjusted net income attributable to stockholders are annualized to arrive at return on stockholders’ equity and adjusted return on stockholders’ equity.
Premiums
The following table presents gross written premiums by product for the nine months ended September 30, 2025 and 2024:
| Nine Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands, except percentages) | 2025 | % of Total | 2024 | % of Total |
| Casualty | $288,026 | 67.4% | $188,737 | 59.2% |
| Property | 139,477 | 32.6% | 130,034 | 40.8% |
| Gross written premiums | $427,503 | 100.0% | $318,771 | 100.0% |
Our gross written premiums were $427.5 million for the nine months ended September 30, 2025 compared to $318.8 million for the nine months ended September 30, 2024, an increase of approximately $108.7 million, or 34.1%. The increase was primarily driven by the execution of our growth initiatives and increased engagement across our expanding distribution network. Growth in our casualty lines was consistent with our strategic focus of expanding casualty-related products and verticals. The growth in our property lines primarily reflected increased premiums driven by our targeted growth initiatives, as well as the benefit of a full-year anniversary of the pricing and catastrophe management actions initiated in the third quarter of 2024.
Net written premiums were $314.7 million for the nine months ended September 30, 2025, compared to $223.0 million for the for the nine months ended September 30, 2024, an increase of approximately $91.7 million, or 41.1%. 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 $258.9 million for the nine months ended September 30, 2025, compared to $213.8 million for the nine months ended September 30, 2024, an increase of approximately $45.1 million, or 21.1%. 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 $4.3 million for the nine months ended September 30, 2025 compared to $0.6 million for the nine months ended September 30, 2024, an increase of approximately $3.7 million. The increase was driven by continued implementation of market-standard policy-related fees.
Loss Ratio
Our loss ratio was 59.3% for the nine months ended September 30, 2025 compared to 61.0% for the nine months ended September 30, 2024. The loss ratio for the nine months ended September 30, 2025 benefited from strong performance in our property portfolio including favorable attritional loss experience. The decrease in the loss ratio compared to the nine months ended September 30, 2024 was primarily driven by the lack of prior year development in the current period.
Our losses paid in the nine months ended September 30, 2025 and 2024 were $99.2 million and $78.4 million, respectively. During the nine months ended September 30, 2025, there was no development on our net incurred losses for prior periods. For the nine months ended September 30, 2024, we incurred net losses of prior accident years of $6.2 million. This amount was primarily due to enhancements to our claims reserving approach with respect to loss adjustment expenses in our casualty lines.
Expense ratio
The following table summarizes the components of the expense ratio for the nine months ended September 30, 2025 and 2024:
| Nine Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands, except percentages) | 2025 | % of Total | 2024 | % of Total |
| Policy acquisition costs | $47,562 | 18.4% | $44,579 | 20.9% |
| Operating expenses, net of fee income (1) | 30,561 | 11.8% | 27,013 | 12.6% |
| Underwriting, acquisition and insurance expenses, net of fee income | $78,123 | 30.2% | $71,592 | 33.5% |
(1) Net of fee income of $4.3 million and $0.6 million for the nine months ended September 30, 2025 and 2024, respectively.
Our expense ratio was 30.2% for the nine months ended September 30, 2025 compared to 33.5% for the nine months ended September 30, 2024. The improvement was driven by a lower policy acquisition ratio and operating expense ratio.
The decrease in policy acquisition costs as percentage of net earned premiums was primarily attributable to the earned impact of ceding commissions under a quota share contract placed in the beginning of 2024, and changes in our business mix.
The decrease in operating expenses as a percentage of earned premiums was primarily due to a increase in our fee income offset by an increase in compensation and employee-related expenses, as headcount grew over the past twelve months to support our continued business growth, drive innovation, and to strengthen our operating capabilities ahead of our transition to becoming a public company.
Investing Results
| Nine Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands, except percentages) | 2025 | 2024 | $ Change | % Change |
| Investment income | ||||
| Fixed-maturity securities | $19,324 | $8,384 | $10,940 | 130.5% |
| Nine Months Ended September 30, | ||||
|---|---|---|---|---|
| ($ in thousands, except percentages) | 2025 | 2024 | $ Change | % Change |
| Short-term investments | 4,085 | 2,477 | 1,608 | 64.9% |
| Cash equivalents | 1,344 | 4,871 | (3,527) | -72.4% |
| Equity securities | — | 44 | (44) | 100.0% |
| Loans to affiliates | 3,330 | 751 | 2,579 | 343.4% |
| Securities sold not yet purchased | — | (249) | 249 | 100.0% |
| Total fixed income | 28,083 | 16,278 | 11,805 | 72.5% |
| Utility & Infrastructure Investments | 2,995 | 1,561 | 1,434 | 91.9% |
| Other expenses | (331) | (49) | (282) | 575.5% |
| Net investment income | $30,747 | $17,790 | $12,957 | 72.8% |
| Net realized and unrealized gains (losses) on investments | $5,990 | $6,950 | $(960) | -13.8% |
Net investment income was $30.7 million for the nine months ended September 30, 2025, compared to $17.8 million for the nine months ended September 30, 2024, an increase of $13.0 million, or 72.8%. 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 and income from loans to affiliates. Included in net investment income were $3.0 million and $1.6 million attributable to Utility & Infrastructure Investments, net of investment management fees for the nine months ended September 30, 2025 and 2024, respectively.
Net realized and unrealized gains on investments were $6.0 million for the nine months ended September 30, 2025, compared to net realized and unrealized gains of $7.0 million for the nine months ended September 30, 2024, a decrease in gains of $1.0 million. This change was primarily driven by a decrease in net realized and unrealized gains related to the Utility & Infrastructure Investments, offset by increase in gains on sales of fixed-maturity securities, compared to the prior year period.
Interest expense was $1.3 million for the nine months ended September 30, 2025 compared to $1.6 million for the nine months ended September 30, 2024, a decrease of approximately $0.3 million, or 18.3% related to a decreased cost of our letters of credit.
Income tax expense was $13.1 million for the nine months ended September 30, 2025 compared to $6.6 million for the nine months ended September 30, 2024, an increase of approximately $6.4 million. Our effective tax rate was 20.8% for the nine months ended September 30, 2025 compared to 19.0% for the nine months ended September 30, 2024. The increase in our effective tax rate was primarily 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.