Ategrity Specialty Insurance Company Holdings Reports Second Quarter 2025 Results (Form 8-K)

Ategrity Specialty Insurance Company Holdings Reports Second Quarter 2025 Results

Gross written premiums up 32% and combined ratio of 88.9% in first quarter as a public company

NEW YORK, NY - August 11, 2025 - Ategrity Specialty Insurance Company Holdings (NYSE: ASIC) today announced financial results for the quarter ended June 30, 2025. The Company reported net income attributable to stockholders of $17.6 million, or $0.39 per diluted share, compared to $4.9 million, or $0.14 per diluted share, in the prior-year period. Adjusted net income attributable to stockholders(1) was $17.9 million, or $0.41 per diluted share(1).

Second Quarter 2025 Highlights

•Gross written premiums increased 32.3% to $167.5 million

•Net income attributable to stockholders was $17.6 million, or $0.39 per diluted share

•Adjusted net income attributable to stockholders(1) was $17.9 million, or $0.41 per diluted share

•Combined ratio was 88.9%, compared to 94.0% in Q2 2024

•Adjusted return on stockholders' equity(1) was 14.5%

•Book value per share at quarter-end was $11.64 per share, up 12.2% from year-end

•Initial public offering was completed in June 2025, raising $130.3 million in gross proceeds through the issuance of 7,666,667 shares

"This was a strong quarter for Ategrity," said Justin Cohen, Chief Executive Officer. "We executed with focus and discipline, expanding distribution relationships, delivering solid underwriting results, and driving operational efficiencies. Our productionized underwriting model, which combines technical underwriting with technology-enabled processes, is gaining traction in the marketplace, delivering value to our partners, and driving profitability for our shareholders. Looking ahead, we believe our investments in automation and analytics will accelerate our opportunity to redefine how E&S insurance for small and medium-sized businesses is underwritten and delivered."

Underwriting Results

For the quarter ended June 30, 2025, gross written premiums increased 32.3% compared to the prior-year period, driven by expansion of our distribution network and increased wallet share with existing partners. Gross written premiums for casualty lines increased 56.7% year-over-year, reflecting the Company's strategic focus on expanding casualty-related products and verticals. Gross written premiums in property lines increased 3.7% year-over-year, reflecting the impact of pricing actions and targeted reductions in catastrophe exposure initiated in 2024.

Underwriting income(1) was $9.6 million for the quarter, up 119.1% from $4.4 million in the prior year period. The combined ratio for the quarter was 88.9%, a decrease from 94.0% in the prior-year period, driven by improvements in both the loss and expense ratios. The loss ratio decreased by 2.8 percentage points to 58.0%, supported by strong underwriting results in property, including lower attritional losses and favorable catastrophe experience.

The overall expense ratio was 31.0% for the quarter, compared to 33.2% in the prior-year period. The largest driver of this improvement was policy acquisition costs as a percentage of net earned premiums, which decreased by 2.6 percentage points to 18.5%, reflecting higher ceded earned commissions and a more favorable business mix. Operating expenses, net of fee income, were 12.4% of net earned premiums for the quarter, reflecting increased fee income and emerging operating scale. Operating expenses were higher year-over-year due to investments made in 2024 in personnel, systems, and infrastructure in anticipation of growth opportunities and the Company's transition to becoming a public company.

"This quarter's underwriting results reflect the deliberate actions we have taken to grow and shape our business," said Chris Schenk, President and Chief Underwriting Officer. "We saw a meaningful increase in submissions, but we deployed capital with discipline. We achieved above-technical rates in casualty, held firm on property rates even as parts of the market began to soften, and concentrated on targeted micro-segments where we have deep expertise. By leveraging our productionized underwriting model-combining segmentation, analytics-driven pricing, and automation-we were able to deliver strong, profitable growth."

(1) See the definitions and reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures in the section titled "Non-GAAP Financial Measures" below.

Summary of Operating Results

The following table summarizes the Company's results of operations for the three and six months ended June 30, 2025 and 2024:

			Three Months Ended June 30,												Six Months Ended June 30,
($ in thousands)			2025						2024						2025						2024
Gross written premiums			$	167,502					$	126,614					$	283,645					$	208,219
Ceded written premiums			(50,231)						(41,838)						(76,503)						(61,187)
Net written premiums			117,271						84,776						207,142						147,032
Net premiums earned			86,928						72,638						165,229						140,917
Fee income			1,524						191						2,084						316
Losses and loss adjustment expenses			50,412						44,128						97,274						85,174
Underwriting, acquisition and insurance expenses			28,430						24,315						53,315						47,705
Underwriting income (1)			9,610						4,386						16,724						8,354
Net investment income			11,891						5,728						19,786						10,981
Net realized and unrealized gains (losses) on investments			1,409						(4,215)						(3,190)						(1,828)
Interest expense			(447)						(544)						(894)						(1,094)
Other income			28						24						993						48
Other expenses			(161)						(56)						(399)						(110)
Income before income taxes			22,330						5,323						33,020						16,351
Income tax expense			4,713						1,207						6,953						3,277
Net income			$	17,617					$	4,116					$	26,067					$	13,074
Less: Net (loss) income attributable to non-controlling interest - General Partner			(5)						(828)						(16)						374
Net income attributable to stockholders			$	17,622					$	4,944					$	26,083					$	12,700
Key Metrics
Adjusted net income attributable to stockholders (1)			$	17,857					$	4,944					$	26,400					$	12,700
Loss ratio			58.0		%				60.8		%				58.9		%				60.4		%
Expense ratio			31.0		%				33.2		%				31.0		%				33.6		%
Combined ratio (3)			88.9		%				94.0		%				89.9		%				94.1		%
Return on stockholders' equity (2)			14.3		%				5.9		%				10.9		%				7.7		%
Adjusted return on stockholders' equity (1)(2)			14.5		%				5.9		%				11.0		%				7.7		%
Diluted earnings per share			$	0.39					$	0.14					$	0.60					$	0.35
Adjusted diluted earnings per share(1)			$	0.41					$	0.14					$	0.62					$	0.35

(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 and 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.

(3) Ratios are calculated using unrounded figures. The sum of components may differ slightly from totals shown due to rounding.

2

Gross Written Premiums

The following table presents gross written premiums by product for the three and six months ended June 30, 2025 and 2024:

						Three Months Ended June 30,																		Six Months Ended June 30,
($ in thousands, except percentages)						2025						2024						% Change						2025						2024						% Change
Casualty						$	107,023					$	68,300					56.7		%				$	189,163					$	118,806					59.2		%
Property						60,479						58,314						3.7		%				94,482						89,413						5.7		%
Gross written premiums						$	167,502					$	126,614					32.3		%				$	283,645					$	208,219					36.2		%

Expense Ratio

The following tables summarize the components of our expense ratio for the three and six months ended June 30, 2025 and 2024:

						Three Months Ended June 30,
($ in thousands, except percentages)						2025												2024
						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.

						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		%

3

Investment results

The following tables summarize net investment income and net realized and unrealized gains on investments for the three and six months ended June 30, 2025 and 2024:

						Three Months Ended June 30,												Six Months Ended June 30,
($ in thousands)						2025						2024						2025						2024
Investment income
Fixed-maturity securities						$	6,460					$	2,634					$	12,725					$	3,521
Short-term investments						1,154						767						1,724						2,281
Cash equivalents						475						1,612						911						3,604
Equity securities						-						22						-						44
Loans to affiliates						1,543						250						1,793						501
Securities sold not yet purchased						-						(103)						-						(235)
Total fixed income						9,632						5,182						17,153						9,716
Utility & Infrastructure Investments						2,422						658						2,931						1,384
Other expenses						(163)						(112)						(298)						(119)
Net investment income						$	11,891					$	5,728					$	19,786					$	10,981
Net realized and unrealized gains (losses) on investments						$	1,409					$	(4,215)					$	(3,190)					$	(1,828)

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 and six months ended June 30, 2025 and 2024 reconciles to income before income taxes as follows:

4

						Three Months Ended June 30,												Six Months Ended June 30,
($ in thousands)						2025						2024						2025						2024
Income before income taxes						$	22,330					$	5,323					$	33,020					$	16,351
Less:
Net investment income						(11,891)						(5,728)						(19,786)						(10,981)
Net realized and unrealized (gains) losses on investments						(1,409)						4,215						3,190						1,828
Other income						(28)						(24)						(993)						(48)
Add:
Interest expense						447						544						894						1,094
Other expenses						161						56						399						110
Underwriting income						$	9,610					$	4,386					$	16,724					$	8,354

Adjusted net income attributable to stockholders (previously referred to as adjusted net income attributable to members)

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 and six months ended June 30, 2025 and 2024 reconciles to net income attributable to stockholders as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
($ in thousands)						2025						2024						2025						2024
Net income attributable to stockholders						$	17,622					$	4,944					$	26,083					$	12,700
Adjustments:
Other non-operating expenses (1)						298						-						401						-
Tax impact						(63)						-						(84)						-
Adjusted net income attributable to stockholders						$	17,857					$	4,944					$	26,400					$	12,700

(1) In the three and six months ended June 30, 2025, other non-operating expenses includes share-based compensation expenses recorded by us related to our initial public offering.

Adjusted return on stockholders' equity (previously referred to as adjusted return on members' 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 and six months ended June 30, 2025 and 2024 reconciles to return on stockholders' equity as follows:

5

						Three Months Ended June 30,												Six Months Ended June 30,
($ in thousands, except percentages)						2025						2024						2025						2024
Numerator: Adjusted net income attributable to stockholders, annualized (1)						$	71,428					$	19,776					$	52,800					$	25,400
Denominator: Average stockholders' equity						493,253						334,977						478,998						329,803
Adjusted return on stockholders' equity						14.5		%				5.9		%				11.0		%				7.7		%

(1) For the three and six months ended June 30, 2025 and 2024, net income and adjusted net income are annualized to arrive at return on stockholders' equity and adjusted return on stockholders' equity.

Adjusted diluted earnings per share

We define adjusted diluted earnings per share as adjusted net income available 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 and six months ended June 30, 2025 and 2024 reconciles to diluted earnings per share as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
($ in thousands, except share and per share data)						2025						2024						2025						2024
Numerator: Adjusted net income attributable to stockholders						$	17,857					$	4,944					$	26,400					$	12,700
Denominator: Weighted-average shares outstanding - diluted						43,584,999						36,243,959						42,246,997						36,235,950
Adjusted diluted earnings per share						$	0.41					$	0.14					$	0.62					$	0.35

Conference Call

Ategrity will hold a conference call to discuss this press release today, August 11, 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/426743085 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.

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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