ASIC

- Ategrity shares fell 15% today after third-quarter earnings of $0.29 a share came in well short of analysts' estimates. - An investment loss caused the miss. The insurance business itself had its best quarter yet. - Ategrity's combined ratio hit a record low of 84.7%, and underwriting income rose 84% to $19.5 million. - Management expects a fourth-quarter combined ratio below 87%, and analysts expect normalized EPS to rise every year through 2028. Ategrity Specialty Insurance Company Holdings (ASIC:NYSE) stock sank 15% today after its third-quarter earnings missed analysts' estimates. That's a rough reaction to what CEO Justin Cohen called "an exceptional quarter of underwriting performance." And the numbers back him up. Ategrity reported after Wednesday's close: - Diluted EPS was $0.29, down from $0.45 a year earlier and short of the $0.50 consensus - Gross written premiums rose 14.7% to $165.0 million, with property up 25% and casualty up 10% - The combined ratio was 84.7%, the lowest in company history, down from 88.7% - Underwriting income rose 84% to $19.5 million So how does an insurer post its best underwriting quarter ever and still miss? Net investment income rose 19% to $13.1 million. But Ategrity also booked $17.2 million of realized and unrealized investment losses. A year earlier, that line was a $9.2 million gain. CFO Neil Adler said on Ategrity's third-quarter call that the loss primarily reflected "a normalization of the substantial gains recorded earlier this year in our utility and infrastructure investments." Even after the hit, investment gains are still $10.8 million for the first nine months. Strip out the investment gains and losses in both years, and pretax income rose about 55%. TIKR tracks 5 analysts on Ategrity Specialty Insurance Company Holdings. How many say "Buy"? See the full breakdown of Buy, Hold, and Sell ratings on Ategrity Specialty Insurance Company Holdings, along with Wall Street's revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Ategrity Specialty Insurance Company Holdings' Analyst Ratings Management expects fourth-quarter premium growth to beat the E&S market by 15 to 20 points, with a combined ratio below 87%. And analysts expect normalized EPS to keep climbing, from $1.61 in 2025 to $3.02 by 2028… Nothing in this quarter's underwriting gives them a reason to cut. Barclays trimmed its price target to $27 from $28 but kept its Overweight rating, while Citi raised its target to $29 from $28.50. Growth is the risk. Premiums rose 20.4% over the first nine months, and Cohen said this quarter was held back by rate increases on new casualty business and a new underwriting system. The stock also got cheaper. Ategrity traded at 12x forward earnings at Wednesday's close, a bit above its one-year average of 11x… After today's drop, it's closer to 10x, near the low end of its range over the past year. My take: the market is punishing a record underwriting quarter because of an investment line that's still positive for the year. That looks like an overreaction. Of course, if premium growth keeps slowing from this year's 20% pace, the discount could stick around. TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR's valuation model and see what Ategrity could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It's free to use. Value Ategrity for free

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Achieved a record-low combined ratio of 84.7% by prioritizing technical underwriting and a centralized operating model that lowered loss and expense ratios. - Grew gross written premiums by approximately 15%, significantly outpacing a flat E&S market through differentiated product solutions and regional expansion. - Implemented strategic rate increases on new casualty business to account for expanded coverage requirements and maintain price adequacy against evolving loss trends. - Launched four new specialty products—Life Sciences, Energy, Environmental, and Sports & Entertainment—using AI to reduce development time from 12 weeks to four. - Deployed a Next-Gen underwriting platform designed to enhance microsegmentation and risk selection while reducing work time per quote. - Attributed a temporary productivity dip to the learning curve of the new technology platform and a short-term hiring gap for underwriting capacity. - Shifted business mix toward the brokerage channel, which successfully reduced policy acquisition costs and improved overall underwriting margins. - Projecting Q4 gross written premium growth to exceed the E&S market by 15-20 percentage points, supported by a 30% increase in submission volume. - Anticipating a Q4 combined ratio below 87% while maintaining flexibility to drive further underwriting margin improvements. - Planning to increase fixed income allocation toward 90% of the total investment portfolio to capitalize on the higher interest rate environment. - Expecting breakthrough productivity and faster response times in Q4 as the Next-Gen underwriting platform moves past the initial adoption phase. - Intending to utilize the remaining $47 million in share repurchase capacity during Q4, noting that excess capital significantly exceeds buyback capacity. - Realized and unrealized investment losses of $17.2 million reflected a normalization of previous gains in utility and infrastructure investments. - Management noted that being a first mover on casualty rate increases led to a lower conversion ratio, a planned outcome to ensure long-term profitability. - Identified emerging municipal and regulatory requirements, such as habitability and human trafficking coverage, as new drivers of casualty risk and pricing. - Reported a decrease in book value per share to $13.72 due to a decline in AOCI from material moves in US Treasury yields during the third quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management declined to specify exact coverage additions for competitive reasons but highlighted responses to municipal changes and lender requirements like habitability and assault and battery. - The 'We Cover What Matters' campaign was launched to clarify these new market norms to trading partners while ensuring technical pricing for each enhancement. - Management confirmed they are on the 'other side' of the implementation and expect breakthrough productivity in Q4. - The company intentionally over-hired to provide a capacity cushion for the inefficiencies typically following a major technology transition. - AI was used to generate first drafts of over 400 complex legal forms, significantly reducing the time and legal costs associated with back-and-forth reviews. - The new specialty lines carry near-zero fixed upfront investment costs because they utilize Ategrity's existing scalable technology framework. - Management clarified that utility and infrastructure investments are liquid, market-neutral assets with a nearly 30-year track record of no calendar year losses. - The portfolio does not have the specific digital infrastructure loan concentrations that analysts were concerned about.

Image source: The Motley Fool. Wed, Oct. 21, 2026 - Chief Executive Officer - Justin Cohen - President and Chief Underwriting Officer - Chris Schenk - Chief Financial Officer - Neil Adler Operator: President and Chief Underwriting Officer, and Neil Adler, Chief Financial Officer. After Justin, Chris, and Neil have made their formal remarks, we will open the call to questions. All lines have been placed on mute to prevent any background noise. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. Before we begin, I would like to mention that certain matters discussed in today's conference call are forward-looking statements relating to future events, management's plans, and objectives for the business and the future financial performance of the company that are subject to risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. The risk factors that may affect results are referred to in our press release issued today, our final prospectus, and other filings filed with the SEC. We do not undertake any obligation to update the forward-looking statements made today. Finally, the speakers may refer to certain adjusted or non-GAAP financial measures on this call. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is also available in our press release issued today, a copy of which may be obtained by visiting the investor relations website at investors.ategrity.com. I will now turn the call over to Justin Cohen. Justin Cohen: Good evening, and thank you all for joining Ategrity's third quarter earnings call. This is Justin Cohen, and I'm joined today by Chris Schenk, our President and Chief Underwriting Officer, and Neil Adler, our Chief Financial Officer. Ategrity delivered an exceptional underwriting quarter, achieving our lowest-ever combined ratio of 84.7% and underwriting income growth of 83.7% year over year. These results demonstrate the strength of our underwriting strategy and the compounding benefits of our productionized platform. Our rigorous technical underwriting and centralized operating model are driving lower loss and expense ratios while our differentiated products and solutions are generating strong business momentum and market share gains. Submissions grew 30% in the quarter, reflecting exceptional demand for our offerings that give our distribution partners a competitive edge. Gross written premiums grew approximately 15% year over year, substantially outpacing a relatively flat E&S market. While we expected to outperform the market by even more this quarter, we made two deliberate choices to prioritize long-term growth and profitability. First, we implemented meaningful rate increases on new casualty business to reflect the cost of expanded coverage and strengthen underwriting margins. Second, we rolled out our Next-Gen underwriting technology, temporarily reducing productivity in exchange for substantially greater underwriting throughput and efficiency going forward. Chris will discuss these decisions and our new growth initiatives in greater detail later in the call. We enter the fourth quarter with four new specialty products, an expanded underwriting team and distribution network, and a more powerful underwriting system. Together, these capabilities expand our capacity to serve growing demand, capture additional market share, and profitably compound growth. With that, I'll turn it over to Neil Adler to review our financial results. Neil Adler: Thank you, Justin. We produced adjusted net income of $14.7 million compared to $22.8 million a year ago. Underwriting income grew 83.7% and net investment income increased 19.1% with those gains offset by realized and unrealized investment losses. Gross written premiums were up 14.7%, with property premiums up 25% and casualty premiums up 10%. Net written premiums increased 25.8%, which reflects higher retention year-over-year, while net earned premiums were up 35.7%. Fee income was $2.6 million compared to $2.2 million a year ago, with growth coming from standard policy fees introduced over the course of 2025. Our underwriting income for the quarter was $19.5 million, producing a combined ratio of 84.7% compared to 88.7% last year, driven primarily by a reduction in both our loss and expense ratios. Our loss ratio came in at 57.5%, which was down 2.5 points year-over-year, reflecting favorable underwriting performance across both property and casualty, including 1.6 points of favorable developments. Catastrophe losses were 4.2% of net earned premiums, up from 4% last year. On expenses, the overall expense ratio improved 1.5 points to 27.2%. Our operating expense ratio declined 0.8 points year-over-year to 10% of net earned premiums. The improvement reflected earned premiums growing faster than operating expenses together with higher fee income. Policy acquisition costs as a percentage of net earned premiums also declined in the third quarter to 17.2% from 17.9%. The continued shift in our business mix towards the brokerage channel reduced policy acquisition costs and benefited underwriting margins. Moving on to investment results. Net investment income was $13.1 million, up from $11 million last year, reflecting a larger investment portfolio and higher interest rates. Realized and unrealized losses were $17.2 million or $13.7 million net of non-controlling interest. Primarily reflecting a normalization of the substantial gains recorded earlier this year in our utility and infrastructure investments, which had been running well ahead of long-term street expectations of 5.5% annually. As of the end of the third quarter, year-to-date returns remained above that annual expectation. Our effective tax rate was 24%, bringing net income to stockholders to $14.6 million. Adjusted net income was $14.7 million or $0.29 per diluted share. Turning briefly to the balance sheet. Cash and investments increased by $33.5 million from the second quarter to $1.24 billion, reflecting strong operating cash flow. Book value decreased by $6.7 million from the second quarter as an increase in retained earnings was offset by a decline in AOCI due to the material move in US Treasury yields in the third quarter. We did not repurchase any shares during the quarter. Our book value per share ended the quarter at $13.72, up 30% since our IPO. With that, I'll turn it over to Chris to discuss underwriting and operating performance. Chris Schenk: Thanks, Neil. Our third quarter results demonstrate the power of our productionized underwriting strategy. We delivered our strongest combined ratio in the company's near-decade history and grew submissions by 30%. Both our property and casualty businesses grew at rates we believe outpace their respective markets. This happened as we continued to take market share. In addition, our current policy year loss ratio indications continued to trend favorably, while prior year results developed better than expected. Our property business grew strongly. This is counter to the prevailing market trends. During the quarter, we continued to expand our distribution network, generated value through our regional strategies, and launched four new specialty products in record time. We also developed and deployed the Next-Gen underwriting platform across our established brokerage businesses while improving our unit economics. I would like to highlight four areas that illustrate how we are expanding our business while strengthening underwriting performance. First, coverage certainty is becoming a key differentiator in the casualty market and an important consideration for brokers and insureds. We have studied our clients' businesses and the emerging insurance requirements they face from customers, lenders, regulators, and their contractual counterparties. During the quarter, we redesigned several of our core casualty offerings to address this demand for expanded coverage. In parallel, we launched a marketing campaign called We Cover What Matters to drive home the guiding principle of our product strategy. Consistent with our technical approach to pricing, we effectively implemented rate increases on new casualty business to cover the higher cost of product resulting from this expanded coverage. This enables continued price adequacy as casualty loss trends evolve. Second, we launched four new specialty products: Life Sciences, Energy, Environmental Liability, and Sports & Entertainment. These offerings were already on our product roadmap, but we used AI to accelerate their launch in order to meet growing demand from our partners. All in, total development was four weeks, down from our originally budgeted 12 weeks, which included technology, product design, form development, and pricing. These launches demonstrate the productivity gains AI is delivering across our business, both in development costs and speed to market. What is most exciting about these new growth opportunities is that we are bringing to the market predictability, speed, and simplicity in lines of business that others have deemed to be highly complex and bespoke. Using our microsegmentation and risk modeling methodologies, we have built a repeatable process for underwriting this business. Third, we deployed our Next-Gen underwriting platform during the quarter. This adds to the analytical depth of our underwriting. It enhances the value of our microsegmentation and risk selection while reducing the work time per quote. Productivity temporarily declined this quarter as our underwriting teams adopted the system. As we enter the fourth quarter, this implementation is starting to produce greater throughput, faster response times, and more competitive quotes. Finally, our loss ratio performance continued to validate our underwriting approach. Our results this quarter, including favorable prior year development, reflect our commitment to technical underwriting, which includes strategic deployment of coverage, rigorous risk selection, and pricing that anticipates a higher cost of product. In sum, we believe our product strategy, technology, operational capabilities, and differentiated distribution strategies positions us to grow profitably in the current environment. Our priority is to translate those advantages into further loss ratio improvements and durable underwriting income. With that, I'll turn it back to Justin. Justin Cohen: Thanks, Chris. We see significant opportunities to gain market share while driving strong underwriting profitability. For our fourth quarter guidance, we expect gross written premium growth to exceed E&S market growth by 15-20 percentage points. sustaining our strong business momentum while retaining the flexibility to drive further underwriting margin improvement. Accordingly, we expect our combined ratio to again be below 87% in Q4. On investments, we have produced $8.9 million of year-to-date realized and unrealized gains, net of non-controlling interests. In line with street assumptions, we are using a long-term annualized return assumption of 5.5% for our utility and infrastructure investments. We believe that our differentiated access to these strategies creates meaningful value for shareholders, supported by a nearly three-decade track record of strong annualized returns without a calendar year loss. At the same time, given the higher interest rate environment, it is our intention to increase our allocation to fixed income investments toward 90% of our total investment portfolio from the current level of approximately 80%. Finally, on our share repurchase program, while we were able to make stock purchases in the high teens during the second quarter, the stock moved up meaningfully in the third quarter, making it more difficult to execute open market purchases. We will endeavor to buy more shares in Q4 in the open market using the $47 million outstanding in our buyback program. We note that our excess capital far exceeds our remaining buyback capacity. To sum it up, we believe Ategrity is just getting started. Our new products, expanded coverage, Next-Gen technology, and implementation of AI are creating an expanding opportunity set and a runway for further profitable market share gains. With that, we thank you for your time. Operator, please open the line for questions. Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Pablo Singzon with JPMorgan. Pablo, your line is open. Please go ahead. Justin Cohen: Hey, Pablo. Pablo Singzon: Hi, good afternoon. Hi, Justin. Can you unpack what additional coverages you are providing in casualty and, I guess, how your offering compares to what is widely available in the market? Justin Cohen: Chris? Chris Schenk: We are not disclosing on this call what additional coverages and new product designs that we have rolled out are effectively for competitive reasons. What I will say is that due to a number of municipal level changes, things like residential real estate putting up habitability coverage is now in scope. There is a new market norm that is evolving. There are obscure coverages such as human trafficking that are also evolving in terms of a market requirement. In terms of what we have done on our specific products, those are being made clear to the market with our new We Cover What Matters campaign. Some of the need for more coverage has to do with fear around what might be happening at a municipal level, fear around how entanglement with immigration and ICE raids and such might affect landlords. Some of it is a genuine need for coverage adequacy, which could come from a lender, or it could come from the insured's client themselves. Some of it is having to do with responsiveness around political trends. So where we are drawing the line, that is being made clear to our trading partners through our new campaign. But we are not disclosing it on this call for competitive reasons. Pablo Singzon: Understood and thanks for that. I guess for the second question, do you expect a return to normal productivity in Q4, just given the rollout of the new underwriting system, or should we expect maybe continued disruption into the next quarter here? Thanks. Chris Schenk: Yeah. Our technology rollout has performed better in terms of stabilization with our employees and training and all of that. We've been able to make meaningful improvements in this rollout compared to the last time we rolled out technology, and a lot of that has to do with delivery of training. We have moved faster than expected when it comes to adoption. One of the things we did anticipate going into the quarter was the need for additional underwriting capacity in order to absorb some of the inefficiencies that typically follow a rollout of any type. There will always be inefficiency. We planned for that. There were some timing delays around hiring and start dates and such that bled into the quarter. So effectively where we are, we are on the other side of a very meaningful change for the organization, and we effectively have some additional capacity to cushion because we are an organization that, I believe, we're doing interesting things. We are on the leading edge. We have planned for that because over my career, and I think it's just widely known in the industry, any technology change will have a lag in terms of productivity. But what this sets us up for is breakthrough productivity as we go into this quarter, and we have some cushion in terms of capacity. Operator: Your next question comes from the line of Elyse Greenspan with Wells Fargo. Elyse, your line is open. Please go ahead. Elyse Greenspan: Hi. Thanks. Good evening. My first question probably touches on some of the new products that you were talking about on the casualty side. You said that you increased rates. Can you give us a sense of the price differential between the new offerings and the old offerings that you guys were writing? Chris Schenk: Yes. Just for clarity, we have launched a set of new products, and for our existing casualty verticals, and microsegments rather, we have designed a new offering. As you may know, our product strategy has to do with pre-designing coverage. We studied the insured's needs before they effectively come in the door. That allows us to be explicit to the market about what we are willing to cover and not cover. And complementary with that is a technical pricing approach where we charge for optional coverage in a very explicit and a very mathematical and economically sound way. The rate increases, as you mentioned, have to do with adding coverages to our base product for several casualty lines. We are not going to disclose those specifics here either for competitive reasons. But what it allows us to do is provide what the market needs while charging adequate rates. This is the same approach we have used consistently over the last 5 years as we became solidly committed to technical underwriting. We have deployed the same approach whenever we have made product adjustments, we charge for the additional coverage. Now, that is very different than what many do in the industry. They will put on a lot of sort of trickier potential high volatility type of coverages and not charge for them. And in my view, if you think about the pitfalls of casualty performance and going back to pre-2020, if you think about what led to that, it was this kind of erratic, enhance the product, but do not raise the rates kind of approach. We have continuously been disciplined about it from day 1. When we started engaging with you all as a public company, we have talked about technical pricing being sacred to us. That is exactly what we have done here. So where we are right now is we are providing what the market needs, and we are charging for it. Where the rest of the market is they're either struggling to figure out what the market needs or they're providing it and not charging for it. If they're providing it and not charging for it, the natural evolution of that will be deterioration in results. And what we have learned over multiple cycles of doing this again, is that we tend to be the beneficiary of that. While being a first mover on rates did have the effect of a lower conversion ratio, and we had planned for that, and we had to plan to hire more because frankly, our move on a lower conversion is to simply produce more quotes. We can do that very efficiently and very cost effectively. That has been our consistent approach, and that is just what we did here. We had high conviction in the rates. We wanted to meet the needs of the market. And we accordingly put together a plan to do so while maintaining a level of production that would lead to the growth. Elyse Greenspan: Thanks. Then I guess my second question, you guys are talking about growth in the fourth quarter, that is 15%-20% above the E&S market. It sounds like you went into the quarter with the Next-Gen rolled out. So would you expect, I guess, going into 2027, is that kind of the new run rate range expected to be in the 15%-20% range versus the market? Justin Cohen: Elise, we are not going to disclose our 2027 view, but we would say the trajectory has not changed. Part of this guidance around 15%-20% is the fact that when we have used the stamping data as an adjusted stamping data as a source of what is the market, and we saw the market ourselves being down 0%-5% this quarter. But the stamping data, as you know well, was negative 2%, then 19%, then negative 5% in the quarter across the months. This adjustment is really to reflect that there is more variability in those numbers and to give room for that dynamic. Operator: Your next question comes from the line of Andrew Kligerman with TD Cowen. Andrew, your line is now open. Please go ahead. Andrew Kligerman: Good evening. Justin Cohen: Hi. Andrew Kligerman: I want to follow up on the gross written premium growth. Justin, you have been very clear, 15%-20%, but when I am hearing you and Chris talk about coverage certainty, which includes higher rate, it is kind of a mixed bag, right? People want the coverage certainty, but they do not like the higher rate. Then you have got four new specialty products rolled out. You were talking a little bit about some pressure as you rolled out the technology, but that is all done. So you have got a couple of big time pluses. I know your guidance is 15%-20%, but it would strike me that you might feel extra good about that 15%-20% given all that you accomplished during the quarter, meaning maybe the higher end, maybe better, but it feels like there is some real momentum there. Justin Cohen: Yeah Andrew Kligerman: I want to get your read on that. Justin Cohen: Andrew, the momentum in the business is outstanding. With the 30% submission growth, this business is really resonating in the market. Even on the coverage point, our soft market playbook is to quote more in a soft market. So we had this temporary hiring gap that was filled by the end of the quarter, which Chris alluded to. So we feel very strong about where the business is going. Chris Schenk: Yep. You can check every box that led to our growth numbers in the prior quarter. You can check those and you can actually give some extra marks to some of them because they are still trending in that direction. That is, if you consider those the leading indicator or the consistent indicator that has led to our growth, those are unchanged. Let me take you through a couple of those. First, the regional strategies, they continue to contribute upwards of 50% of our growth. Second, our distribution strategy and our distribution reach, that continues to grow exponentially at higher clips than prior quarters as we have onboarded new partners to complement the New England strategy and the Texas strategy that we launched, as well as continue to appoint partners in the Midwest. We have also invested to entrench ourselves in a Midwest strategy, which is now leading to a new wave of growth. We had marketing campaigns sponsoring events across the Midwest over the summer. That has really cemented our commitment to that region. It's really resonating well with our partners, so we're seeing submission growth boom there again. All of those raw materials to production are there. In addition, we are able to produce a quote faster with less burden on our partners because of the current system. That is one biggest improvements here. Not only do we have a growing submission funnel, and more engagement with our partners, we're able to increase our level of service as well as the rigor around the quotes we're providing. That is all very positive. Now on the new products, we are particularly proud of this because we consider ourselves to be a very execution-oriented company. We believe that the key to winning is to look for opportunities in the market and move fast to build solutions around them, and move intelligently. That is exactly what we did for these four new products. They are in market. We have not modeled too much into our plans for these. The reception has been tremendous. We just came back from one of the big industry conferences. That was our key focus in conversations with partners, and the reception for those four new lines have been tremendous. There's a lot of dislocation in those lines in the current market, and we saw an opportunity and in four weeks, which no one on our team who've been in insurance have ever done that. Frankly, until these products, I've never done that. Insurance just does not move that fast. We were able to do it, and we were able to do it with a high level of sophistication. What we're doing with these products is we're not just entering as a participant in Life Sciences, for example. We are introducing a brand-new way to underwrite Life Sciences that will remove all the back and forth and the hassle that tends to accompany that line. Everyone thinks that just because it has science in the name that it needs to be complex or there's a mystique around it, right? We have demystified it. We have used our segmentation approach, our pricing approach, our form design approach. All of that is in place. When someone looks at our appetite guide, it is a digital appetite guide where they can literally open up their phone and describe what they are trying to write and see exactly what we are trying to put up. When I am saying we did something in 4 weeks, that is a giant leap, and in our numbers right now, we are not even accounting for any upside from that. Yes, to put a finer point on it and agree with you effectively, we have a lot of positives here and a lot of momentum in the business. The fundamentals are strong. I would say that is a comfortable number. Andrew Kligerman: Yeah, that sounds compelling. Maybe shifting to the other part of the income statement, the expense ratio moving from 28.7% to 27.2% year-over-year is a nice move. With a 10% operating expense ratio, as you scale up and as the mix changes a little bit more and more toward brokers, how do you see that expense ratio, not necessarily trending next year, but over the next 2, 3, 4 years? Are there a few points of expense ratio reduction that might be in the cards? Justin Cohen: Andrew, there are significant opportunities for scale in this business. We have built a centralized business where there is meaningful headcount and expenses that are ready to scale as we grow. We see a lot of opportunity. We will not quantify it here, but that is the way we envision it rolling out, and that is part of the opportunity, and that is how we continue to become more effective in a competitive market. Chris Schenk: Yep. We are able to take our efficiency level to, sorry for repetitiveness here, but to the next level. That is what our new platform or this version of our platform does. We had described previously that we already have a very efficient quote process and a very intelligent quote process. We have amplified both of those elements. In addition to that, the products that we are launching right now carry zero upfront investment. There is no additional cost that we need to recoup as we go to market with those products. There is not a fixed cost. We are already very good at that, at managing down fixed costs, right? Nothing is ever truly zero, but this is as zero fixed cost as you could get. The technology, the forms, the pricing, it is all Ategrity's framework, but it is being applied with the help of AI. If you can think about some of the cost that goes into launching a product, it will give you an idea of what the upside in future years could be as those products ramp up. One, forms. For these products, we had to write over 400 forms. Those would go through a month-long process in a parallel work stream that involves lawyers and coverage counsel review. The back and forth will have a high cost. What we have done is we have used AI for the first draft of very sophisticated forms, and then we simply send them for a quick review by coverage counsel, cutting out the back and forth by going to coverage counsel with a first draft versus trying to explain what you want the form to be 400 times. Just that cost alone should give you a sense, and given where legal cost is, that's compound. So small, kind of very nuanced example there, but when you think about what it takes to launch a sophisticated product in market, it's IT development, it's legal cost, it's pricing, it's analytics, it is purchasing data. It's all of these things that previously were hard to absorb during the first year of a product launch, and we were proud that we were able to do that historically, but now we have nothing to absorb in that first year launch. Operator: Your next question comes from the line of Alex Scott with Barclays. Alex, your line is now open. Please go ahead. Alex Scott: Hey, good afternoon. First one I had is on just investment concentration in digital infrastructure, and would be interested in maybe your fixed income portfolio and if you have any of that in there, but also importantly, if there's any exposure in the Zimmer infrastructure fund that we should consider as we watch those trends. Justin Cohen: No. Yeah, got it. As I mentioned in the prepared remarks, we have had about an 80% allocation to fixed income since we have been public, and we have talked now about how we are going to be aiming for a 90% allocation. When you think about the Zimmer Investments in utilities, those are liquid assets that are market neutral, and those are not those types of loans that you are referring to there. So that is a very different exposure. It is a market neutral exposure that has a significant track record of never having had a down year, and it is actively managed. So those are the two components of our portfolio, and we do not have the kind of exposure that you are highlighting there. Alex Scott: Got it. That is clear. I just wanted to make sure on the Zimmer piece. Okay. Second question I had is just I wanted to better understand what you are saying about casualty. I understand there is a new structure to the product and it does require rate increases relative to what you were selling. But I guess it was characterized as part of the reason you did not hit the 20% growth. So, I guess, what is it about that switch of product? When I hear you talk about it sounds like it is going to be more appealing and maybe drive more growth, but yet it maybe constrained your growth relative to what you thought. So what was it in the older casualty product that you had to adjust? I am just trying to understand why was it a growth headwind if it is this new exciting product? Chris Schenk: Imagine if you are buying a car and you wanted leather seats and previously you could get leather seats for free, or there were enough car dealers in the market who would give you leather seats for free or whatever accessory you want, frankly. Then leather seats became a requirement for cars, and now one car dealer is charging for it and one is not. That is what the approach to coverage in this market has been. It has been the pitfall of so many carriers. We have one of the best performing casualty books, in our view, in the industry. The way we have done that is we have been meticulous about understanding the cost of product. So whether you characterize it as a true rate increase or just a charge for an enhancement to the product, it is an additional cost to the insured. It is charging for the leather seats. There are other dealers out there who are providing the leather seats for free. So that is the dynamic that we went into this quarter adjusting for. We are willing to provide it, but we are going to charge for it because it increases the cost of product. We have done this over and over again, and it is so fundamental to our playbook to underwrite to a cost of product that is realistic. We do not want to have our heads in the sand and think that offering a coverage does not really add to the cost of product. It very literally does. We do not want to have our heads in the sand, right? We have been explicit, and what happens is that the rest of the market, they start to feel the pain, and then that business comes back to us. It has happened over and over again. We are always ahead on pricing, and this is a big part of our strategy to ensure that we are studying the cost of product and adjusting rates on a prospective basis. We have always done that. If you recall, we did that on property in response to tariffs last year, and if you look at the property growth rate and how that has trended since we implemented those change, it is a cycle. We understand this pattern. While we recognize that would have led to a lower conversion ratio, we had more than enough submissions to compensate, and all that was required was a few additional underwriters to increase production. That is the piece that had a timing delay. Justin Cohen: Yes. That headwind we are referring to is doing this type of offerings and then having a delay in the headcount. Operator: Your next question comes from the line of Matthew Heimermann with Citi. Matthew, your line is open. Please go ahead. Matthew Heimermann: Thank you. Good evening, everybody. I guess I was struggling with Scott a little bit to put context to the rate change and the casualty growth. I think you addressed most of it in response to his question. The only thing I would be curious about is what was the catalyst, I guess, for charging for leather seats now? Was there some emerging claims data you are responding to? Because when you first described it did not really sound like a rate change, but a coverage form change. Either regardless, what was the catalyst? Chris Schenk: It is a product enhancement. That is what it is. It is not a- Matthew Heimermann: Because what I am struggling with is when you describe it, say it is a product enhancement, then you say other people are going to be adversely impacted by not doing this. That change sounds like it is in response to something, either something your experience or you see on the horizon. I am just trying to get that context. Chris Schenk: Yeah. I will answer your question. Let me give you a little bit of background on what we are doing. We are studying the insured's needs. We launched a campaign to complement our product strategy to drive home our philosophy. It is called We Cover What Matters. What we do is we study the insured's needs, which could include a set of fears and a set of true requirements from their lenders, from regulators, from their clients. We study all of that, and we made an explicit decision to not offer some coverages that were more optional or nice to have. Typically, larger, more complex accounts would really want that coverage. What has happened over the last 18 months, I mentioned this a couple of quarters ago, that coverage certainty was coming into focus. That was being driven by the political climate, which includes things like immigration and which impacts the need for human trafficking coverage. Fannie Mae, Freddie Mac impose requirements for real estate investment companies. They have to have assault and battery coverage. It cannot be an animal exclusion on the policy. There are a couple of other things that they must have. We have avoided a number of high-severity coverages because when it was optional, the market was not willing to pay, so our base product considered that. When they became required for smaller accounts, we decided that, okay, we will respond. That is consistent with our approach. We will provide what is required. That is consistent with our approach, but we will charge for it. It is a change for us in the risk profile. If you were to imagine not offering it and not charging for it, that will have a knock-on effect on the results. Effectively, we executed our playbook, provided coverage, charged for it. Our peers, where the adverse impact that they might see down the road is from not charging for that. Again, if you look back at the history of casualty insurance, you will see that pattern, and it typically does have to do with coverage expansion, be it the history on auto or covering auto or considering auto, ancillary auto, an unimportant exposure that no one should even charge for. That was once the norm in this industry where auto coverage, ancillary auto, hired and non-owned auto was provided at no charge. Then we all know how that played out as carriers saw the losses come through on that ancillary auto and excess casualty in particular. It really did burn a lot of people, and that is what I was referring to when I say that there is another side to this sort of trend, and it is the exiting of other carriers as those losses catch up. If you think about how these things might play out, these are probably going to come in the earliest, based on the new coverages that are provided. These losses are likely to come in the earliest, and they are likely to be very high. Matthew Heimermann: I wanted to follow up on I'm spacing on names tonight, so sorry. But anyways, the whole question around what's the floor for your operating expense ratio with respect to productivity, and maybe, I know you clearly didn't want to give anything but a directional signpost on that. But I'd be curious if you maybe give us an example with these new products you're rolling out. Like the number of underwriters that were required to be added to support that rollout, and if you think about how much growth you might be able to capture in the market, how many underwriters per that market opportunity does Ategrity need, versus maybe if you were thinking about in your prior life, your former firm or other contemporary firms or traditional firms, how many underwriters would they need to support this type of endeavor? Chris Schenk: Yeah. For these lines, if I were to ballpark it, you would need about one underwriter for about $750,000 in new business premium in a traditional legacy carrier. That is because you could spend two days working on a quote for Life Sciences. It typically involves things like visiting the FDA website to look at or even calling a consulting pharmacist, which is typically on staff to find out information. So much information gathering is required. That's why the new business production level tends to be so low. Again, we are just in this space, so we're not going to give you a number. I don't have a benchmark number for us, but I can assure you we are not going to take more than a few hours for even these complex quotes as we enter the market. You can gauge a relative difference there, but that is what we have done. And if you think about what the potential for AI is and how it can help you do these, aggregate information, compile a digital underwriting file so the individual can spend their brainpower assessing the data rather than compiling the data. If you think about where we're gaining the efficiencies, I think it paints a picture of a highly intelligent underwriting process that is extremely fast and efficient and actually probably will produce a much better and more competitive quote for the best risk. It is remarkable how inefficient some of these lines have been underwritten. I think we mentioned this, one of the reasons we launched these lines is because of that slow turnaround time and the back and forth that so many brokers have to endure if they're trying to write business in these spaces. We are offering everything that we have offered in terms of speed, intelligence, efficiency, a hassle-free process, predictability in our pricing, a pre-designed product. We're offering all of that for these complex products. And it was a specific response to a huge gap in the market that has primarily been caused by other carriers refusing to modernize. The opportunities are endless. We saw them and we leaned in very quickly. Operator: There are no further questions at this time. I will now turn the call back to Justin for closing remarks. Justin Cohen: Great. Well, thank you very much for taking the time with us today, and we look forward to catching up with you in the months ahead. All the best. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Ategrity Specialty Insurance, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ategrity Specialty Insurance wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $370,440!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,330,110!* Now, it's worth noting Stock Advisor's total average return is 924% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 21, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ategrity (ASIC) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

- Interested in Ategrity Specialty? Here are five stocks we like better. - Strong underwriting performance: Third-quarter underwriting income rose 83.7% to $19.5 million, while the combined ratio improved to a company-best 84.7% from 88.7% a year earlier. Gross written premiums increased 14.7%, led by property growth of 25% and casualty growth of 10%. - Investment losses reduced earnings: Adjusted net income fell to $14.7 million, or $0.29 per diluted share, despite a 19.1% increase in net investment income, as realized and unrealized investment losses totaled $17.2 million. - Growth and expansion remain priorities: Ategrity launched four specialty products using AI-assisted development and expects fourth-quarter premium growth to exceed E&S market growth by 15–20 percentage points, with a combined ratio below 87%. The company also plans to pursue share repurchases using the $47 million remaining authorization. Ategrity Specialty (NYSE:ASIC) reported third-quarter underwriting income growth of 83.7% and its lowest combined ratio to date, as the specialty insurer cited favorable loss experience, lower expense ratios and continued growth in submissions. Chief Executive Officer Justin Cohen said the company generated a combined ratio of 84.7% during the quarter, compared with 88.7% a year earlier. Gross written premiums rose approximately 15% year over year, while submissions increased 30%. → The AI Sell-Off Continues—These 3 Stocks Keep Raising Guidance Anyway "Our rigorous technical underwriting and centralized operating model are driving lower loss and expense ratios while our differentiated products and solutions are generating strong business momentum and market share gains," Cohen said. Chief Financial Officer Neil Adler said gross written premiums increased 14.7% from the prior-year quarter. Property premiums climbed 25%, while casualty premiums increased 10%. Net written premiums rose 25.8%, reflecting higher retention, and net earned premiums grew 35.7%. → Tesla's Roadster Reveal Hints at 2 Much Bigger Moves Underwriting income totaled $19.5 million. The 84.7% combined ratio included a 57.5% loss ratio, down 2.5 percentage points year over year, and a 27.2% expense ratio, down 1.5 points. - The loss ratio benefited from underwriting performance across property and casualty lines, including 1.6 points of favorable prior-year development. - Catastrophe losses represented 4.2% of net earned premiums, compared with 4% a year earlier. - The operating expense ratio declined 0.8 points to 10% of net earned premiums. - Policy acquisition costs fell to 17.2% of net earned premiums from 17.9%, which Adler attributed in part to a greater share of business flowing through the brokerage channel. Fee income rose to $2.6 million from $2.2 million in the previous year, driven by standard policy fees introduced during 2025. → Luxury's Middle Market Is Cracking—These 3 Stocks Could Win Adjusted net income was $14.7 million, or $0.29 per diluted share, compared with $22.8 million a year earlier. Adler said higher underwriting income and a 19.1% increase in net investment income were offset by realized and unrealized investment losses. Net investment income rose to $13.1 million from $11 million, reflecting a larger investment portfolio and higher interest rates. Realized and unrealized losses totaled $17.2 million, or $13.7 million after non-controlling interests, primarily because of a normalization from substantial earlier gains in utility and infrastructure investments. The company said year-to-date returns on those investments remained above its long-term annual return assumption of 5.5%. Cohen said Ategrity intends to increase fixed-income investments to about 90% of its portfolio from approximately 80% currently, citing the higher-rate environment. Cash and investments increased by $33.5 million sequentially to $1.24 billion. Book value declined by $6.7 million from the second quarter, as retained earnings were offset by a decline in accumulated other comprehensive income associated with a material move in U.S. Treasury yields. Book value per share was $13.72, up 30% since the company's IPO. President and Chief Underwriting Officer Chris Schenk said Ategrity launched four specialty products during the quarter: Life Sciences, Energy, Environmental Liability, and Sports & Entertainment. The company used artificial intelligence to shorten total development time to four weeks from an originally budgeted 12 weeks, according to Schenk. Schenk said the insurer is seeking to bring more predictable, faster and simpler underwriting to lines that have often been handled as complex or bespoke risks. He said the company's microsegmentation, risk-modeling and pricing methods are intended to support a repeatable underwriting process. The company also deployed its Next-Gen underwriting platform across established brokerage businesses. Schenk said productivity temporarily declined during the rollout as underwriting teams adopted the new system, but the company entered the fourth quarter expecting improved throughput, quicker response times and more competitive quotes. Ategrity also redesigned several casualty offerings to address what management described as growing demand for coverage certainty from insureds, lenders, regulators and contractual counterparties. The company raised rates on new casualty business to account for the cost of expanded coverage. In response to analyst questions, Schenk said Ategrity would not disclose specific coverage changes for competitive reasons. He cited evolving requirements including habitability-related coverage, human-trafficking coverage and certain requirements affecting real estate investment companies. "We will provide what is required," Schenk said. "That is consistent with our approach, but we will charge for it." For the fourth quarter, Cohen said Ategrity expects gross written premium growth to exceed excess-and-surplus market growth by 15 to 20 percentage points. The company expects its combined ratio to remain below 87%. Cohen said the company's regional strategy, expanding distribution relationships and increased underwriting capacity remain important drivers of growth. Schenk said regional strategies have contributed more than half of the company's growth, while distribution expansion in New England, Texas and the Midwest has supported submission growth. Ategrity did not repurchase shares during the third quarter. Cohen said the company bought shares in the high teens during the second quarter, but a higher stock price in the third quarter made open-market purchases more difficult. The company plans to seek additional purchases in the fourth quarter using the $47 million remaining under its repurchase authorization. Management said excess capital exceeds the remaining capacity under that buyback program. Ategrity Specialty is a specialty property and casualty insurance company focused on the excess and surplus (E&S) insurance market. The company provides coverage for risks that may be difficult to place in the standard insurance market because of their size, complexity, unusual characteristics or limited loss history. Its business is centered on underwriting specialty commercial insurance products, including coverage for property and liability exposures. Ategrity Specialty works with insurance brokers and other distribution partners to develop tailored solutions for businesses with specialized insurance needs. The company primarily serves the U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What Ategrity Specialty (ASIC) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

This article first appeared on GuruFocus. - Adjusted Net Income: $14.7 million, or $0.29 per diluted share, versus $22.8 million a year ago. - Net Income to Stockholders: $14.6 million, with an effective tax rate of 24%. - Underwriting Income: $19.5 million, up 83.7% year-over-year. - Combined Ratio: 84.7%, lowest ever, compared to 88.7% last year; Q4 guidance below 87%. - Loss Ratio: 57.5%, down 2.5 points year-over-year, including 1.6 points of favorable prior-year development. - Catastrophe Losses: 4.2% of net earned premiums, up from 4% last year. - Expense Ratio: 27.2%, improved 1.5 points year-over-year. - Operating Expense Ratio: 10% of net earned premiums, down 0.8 points year-over-year. - Policy Acquisition Costs: 17.2% of net earned premiums, down from 17.9%. - Gross Written Premiums: Up 14.7%; property premiums up 25%, casualty premiums up 10%. - Net Written Premiums: Up 25.8%, reflecting higher retention year-over-year. - Net Earned Premiums: Up 35.7%. - Submissions: Grew 30% in the quarter. - Fee Income: $2.6 million versus $2.2 million a year ago. - Net Investment Income: $13.1 million, up 19.1% from $11 million last year. - Realized and Unrealized Investment Losses: $17.2 million, or $13.7 million net of non-controlling interest; YTD realized and unrealized gains of $8.9 million net of NCI. - Cash and Investments: $1.24 billion, up $33.5 million from the second quarter. - Book Value: Decreased $6.7 million from the second quarter; book value per share of $13.72, up 30% since IPO. - Share Repurchases: None during the quarter; $47 million outstanding under buyback program. - Q4 Gross Written Premium Guidance: Growth expected to exceed E&S market growth by 15 to 20 percentage points. - Warning! GuruFocus has detected 4 Warning Sign with FRA:CD20. - Is ASIC fairly valued? Test your thesis with our free DCF calculator. Release Date: October 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Ategrity Specialty Insurance Co Holdings (NYSE:ASIC) achieved its lowest-ever combined ratio of 84.7%, a 4.0-point improvement year-over-year, driven by reductions in both loss and expense ratios. - Underwriting income grew 83.7% year-over-year to $19.5 million, showcasing strong profitability and operational efficiency. - Submissions increased 30% in the quarter, indicating robust demand for Ategrity Specialty Insurance Co Holdings (NYSE:ASIC)'s differentiated products and market share gains. - Gross written premiums rose 14.7% year-over-year, significantly outpacing a relatively flat E&S market, with property premiums up 25% and casualty premiums up 10%. - Ategrity Specialty Insurance Co Holdings (NYSE:ASIC) launched four new specialty products (Life Sciences, Energy, Environmental, and Sports & Entertainment) in just four weeks using AI, demonstrating accelerated product development and innovation. - Net investment income increased 19.1% to $13.1 million, reflecting a larger investment portfolio and higher interest rates. - The expense ratio improved 1.5 points to 27.2%, with the operating expense ratio declining 0.8 points to 10% of net earned premiums, highlighting scalability and efficiency. - Ategrity Specialty Insurance Co Holdings (NYSE:ASIC) deployed its next-generation underwriting platform, which is expected to enhance throughput, reduce quote turnaround times, and improve competitiveness. - Book value per share ended at $13.72, up 30% since the IPO, reflecting strong capital growth and shareholder value creation. - The company provided optimistic Q4 guidance, expecting gross written premium growth to exceed E&S market growth by 15-20 percentage points and a combined ratio below 87%. - Adjusted net income declined to $14.7 million from $22.8 million a year ago, primarily due to realized and unrealized investment losses of $17.2 million. - Realized and unrealized investment losses were $17.2 million ($13.7 million net of non-controlling interest), driven by a normalization of gains in utility and infrastructure investments. - Book value decreased by $6.7 million from the second quarter, as an increase in retained earnings was offset by a decline in AOCI due to rising US Treasury yields. - Ategrity Specialty Insurance Co Holdings (NYSE:ASIC) did not repurchase any shares during the quarter despite having a $47 million buyback program, citing a higher stock price. - Productivity temporarily declined in the quarter due to the rollout of the next-generation underwriting platform and timing delays in hiring, which impacted growth relative to expectations. - The company implemented rate increases on new casualty business to cover expanded coverage, which led to a lower conversion ratio and acted as a headwind to growth. - Catastrophe losses were 4.2% of net earned premiums, up from 4% last year, indicating slightly higher catastrophe activity. - The effective tax rate was 24%, which may impact net income, though it is in line with expectations. - Ategrity Specialty Insurance Co Holdings (NYSE:ASIC) faces competition from peers who may not charge for enhanced coverages, potentially leading to market share pressures. - The company did not disclose specific details on new coverages and rate increases for competitive reasons, which may limit transparency for investors. Q: Can you unpack what additional coverages you are providing in casualty and how your offering compares to what is widely available in the market?A: Chris Schenk, President and Chief Underwriting Officer, declined to disclose specifics for competitive reasons but explained that evolving market normsdriven by municipal-level changes, lender and regulator requirements (e.g., habitability and assault-and-battery coverage mandated by Fannie Mae and Freddie Mac), and emerging exposures such as human traffickingare expanding coverage needs. Ategrity redesigned several core casualty offerings to address this demand for coverage certainty, supported by its "We Cover What Matters" campaign, and implemented rate increases on new casualty business to cover the higher cost of the expanded product. Q: You increased rates on the new casualty offeringscan you give a sense of the price differential versus the old offerings?A: Chris Schenk, President and Chief Underwriting Officer, said the company will not disclose specifics for competitive reasons, but explained the approach: Ategrity pre-designs coverage based on studied insured needs and charges explicitly and mathematically for optional coverage. He noted many competitors add volatile coverages without charging for thema dynamic he tied to pre-2020 casualty deteriorationwhereas Ategrity's technical pricing discipline means it provides what the market needs and charges adequately for it. The first-mover rate action lowered the conversion ratio as planned, which the company offset by producing more quotes, though a hiring timing delay bled into the quarter. Q: Do you expect a return to normal productivity in Q4 given the new underwriting system rollout, or continued disruption?A: Chris Schenk, President and Chief Underwriting Officer, said the rollout has stabilized better than the prior technology implementation, with faster-than-expected adoption thanks to improved training delivery. The company anticipated inefficiencies and planned additional underwriting capacity, though some hiring start-date delays bled into the quarter. He said Ategrity is now on the other side of a meaningful change, with capacity cushion in place, setting up "breakthrough productivity" entering Q4. Q: With the next-gen platform rolled out, is the 15% to 20% outperformance versus the E&S market the new run rate into 2027?A: Justin Cohen, CEO, declined to disclose a 2027 view but said the trajectory has not changed. He noted the guidance range reflects variability in stamping datawhich swung from negative 2% to 19% to negative 5% across monthswhile the company observed the market itself down 0% to 5% in the quarter. Q: Given 30% submission growth, four new specialty products, and the completed tech rollout, do you feel extra good about the 15% to 20% growth guidanceperhaps the higher end?A: Justin Cohen, CEO, said business momentum is outstanding, with 30% submission growth showing the business is resonating in the market, and noted the temporary hiring gap was filled by quarter-end. Chris Schenk, President and Chief Underwriting Officer, added that all growth drivers remain intact or improving: regional strategies contribute upwards of 50% of growth, distribution reach is expanding at higher rates, and a new Midwest strategy is driving a fresh wave of submissions. He said the four new products launched in four weeks (versus a budgeted 12) with tremendous reception, and no upside from them is yet modeled into plans. Q: With the expense ratio improving to 27.2% and a 10% operating expense ratio, how much expense ratio reduction is possible over the next few years as you scale?A: Justin Cohen, CEO, said there are significant scale opportunities in the centralized business, with meaningful headcount and expenses ready to scale as the company grows, though he declined to quantify. Chris Schenk, President and Chief Underwriting Officer, added that the new platform amplifies an already efficient quote process, and the new products carry effectively zero upfront investmentciting AI-assisted drafting of over 400 forms as an example of avoided legal and development costs that previously had to be absorbed in a product's first year. Q: On investment concentration in digital infrastructuredo you have exposure in the fixed income portfolio or the Zimmer infrastructure fund to those trends?A: Justin Cohen, CEO, said the company has held roughly an 80% fixed income allocation since going public and aims to move toward 90% given higher rates. He clarified the Zimmer utility investments are liquid, market-neutral assets with a long track record of no down years and active managementnot the loan-type exposures referencedso the company does not have that kind of exposure. Q: Why was the casualty product change a growth headwind if the new product is more appealing? What did you have to adjust in the older product?A: Chris Schenk, President and Chief Underwriting Officer, used a car-buying analogy: features like "leather seats" that were once free are now required, and Ategrity is charging for them while some competitors still give them away. He said Ategrity has one of the best-performing casualty books because it is meticulous about the cost of product, and it will not offer expanded coverage without charging for itunlike peers who enhance products without raising rates and will eventually see results deteriorate. The headwind, Justin Cohen, CEO, added, came from the rate action lowering conversion combined with a delay in adding underwriter headcount. Q: What was the catalyst for charging for the expanded coverage nowemerging claims data or a coverage form change?A: Chris Schenk, President and Chief Underwriting Officer, said it is a product enhancement responding to coverage certainty coming into focus over the last 18 months, driven by the political climate (e.g., immigration-related human trafficking coverage) and requirements from Fannie Mae, Freddie Mac, lenders, and regulators. Ategrity had avoided high-severity coverages when they were optional and the market would not pay; now that they are required for smaller accounts, the company provides them but charges for them. He warned peers that do not charge for such coverage face a pattern seen historically with ancillary autolosses emerging early and severely, followed by carrier exits. Q: What is the floor for the operating expense ratio, and how many underwriters does Ategrity need to support the new products versus a traditional carrier?A: Chris Schenk, President and Chief Underwriting Officer, estimated a traditional legacy carrier needs about one underwriter per $750,000 For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Ategrity Specialty Insurance Company Holdings (ASIC) came out with quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.5 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -42.00%. A quarter ago, it was expected that this company would post earnings of $0.62 per share when it actually produced earnings of $0.67, delivering a surprise of +8.06%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Ategrity Specialty Insurance Company Holdings, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $142.84 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.64%. This compares to year-ago revenues of $116.1 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ategrity Specialty Insurance Company Holdings shares have added about 31.4% since the beginning of the year versus the S&P 500's gain of 12.7%. While Ategrity Specialty Insurance Company Holdings has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ategrity Specialty Insurance Company Holdings was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.54 on $152.33 million in revenues for the coming quarter and $2.22 on $542.21 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Multi line is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Markel Group (MKL), is yet to report results for the quarter ended September 2026. This insurer is expected to post quarterly earnings of $30.10 per share in its upcoming report, which represents a year-over-year change of -2.6%. The consensus EPS estimate for the quarter has been revised 0.7% higher over the last 30 days to the current level. Markel Group's revenues are expected to be $4.01 billion, up 1.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ategrity Specialty Insurance Company Holdings (ASIC) : Free Stock Analysis Report Markel Group Inc. (MKL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Record low combined ratio of 84.7% and underwriting income(1) growth of 83.7% NEW YORK, October 21, 2026--(BUSINESS WIRE)--Ategrity Specialty Insurance Company Holdings (NYSE: ASIC) today announced financial results for the quarter ended September 30, 2026. The Company reported net income attributable to stockholders of $14.6 million, or $0.29 per diluted share, compared to $22.7 million, or $0.45 per diluted share, in the prior-year period. Adjusted net income attributable to stockholders(1) was $14.7 million, or $0.29 per diluted share(1). Third Quarter 2026 Highlights - Gross written premiums increased 14.7% to $165.0 million - Net income attributable to stockholders was $14.6 million, or $0.29 per diluted share - Adjusted net income attributable to stockholders(1) was $14.7 million, or $0.29 per diluted share - Combined ratio was 84.7%, compared to 88.7% in Q3 2025 - Adjusted return on stockholders' equity(1) was 8.9% in Q3 2026 and 15.5% year to date - Book value per share at quarter-end was $13.72 per share, up 7.4% from year-end Chief Executive Officer Justin Cohen said, "Ategrity delivered an exceptional quarter of underwriting performance, achieving a record low combined ratio of 84.7% and underwriting income growth of 83.7%. Business momentum was strong, with submissions growing 30% and gross written premiums increasing approximately 15%, well ahead of industry estimates of E&S premium growth. "Our results reflect the strength of our differentiated underwriting model and the growing value of our productionized platform. With an expanding portfolio of specialty products, next-generation underwriting technology, and a broader distribution network, we are strengthening our competitive position and creating additional opportunities to capture market share and profitably compound growth." Underwriting Results For the quarter ended September 30, 2026, gross written premiums increased 14.7% compared to the prior-year period, driven by execution of our growth initiatives and increased engagement across our expanding distribution network. Gross written premiums in property lines increased 25.0% year-over-year, supported by growth in lower-risk geographies, including the Midwest and New England. Gross written premiums for casualty lines increased 10.0% year-over-year, reflecting the Company's strategic focus on broadening casualty-related products and verticals. Underwriting income(1) was $19.5 million for the quarter, up 83.7% from $10.6 million in the prior-year period. The combined ratio for the quarter was 84.7%, a decrease from 88.7% in the prior-year period, driven by improvement in both the loss and expense ratios. The loss ratio decreased by 2.5 percentage points to 57.5%, reflecting continued strong loss experience across both property and casualty lines. The overall expense ratio was 27.2% for the quarter, compared to 28.7% 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 0.8 percentage points to 10.0%, reflecting emerging scale benefits of our centralized model. Policy acquisition costs also improved, decreasing by 0.7 percentage points to 17.2% of net earned premiums due to a favorable shift in our business mix. Chris Schenk, President and Chief Underwriting Officer, said, "We are a high-velocity, execution-oriented company that embraces AI and analytics while remaining grounded in underwriting fundamentals. This quarter's results and accomplishments illustrate that combination. "We delivered the lowest combined ratio in the company's history and continued to gain market share across both Property and Casualty. Property gross written premiums increased approximately 25%, countering broader market trends and reflecting the success of our regional strategies, including Project Heartland and New England. Our Casualty business was strong, with our core middle market business growing substantially, even as we implemented meaningful rate increases on new business to provide expanded coverage and maintain rate adequacy ahead of loss cost trends. "We also launched four new specialty products—Energy, Environmental Liability, Life Sciences, and Sports & Entertainment—in a record four weeks. Alongside these launches, we deployed our next-generation underwriting platform across our established Brokerage business, redesigned core product offerings, and launched our 'We Cover What Matters' campaign, bringing our guiding principles on coverage to life. These accomplishments demonstrate our ability to move quickly from strategy to execution, expanding our business while strengthening underwriting performance." __________________________ 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 nine months ended September 30, 2026 and 2025: | Three Months Ended September 30, | | Nine Months Ended September 30, ($ in thousands, except percentages and per share data) | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Gross written premiums | $ | 165,021 | | | $ | 143,858 | | | $ | 514,710 | | | $ | 427,503 | Ceded written premiums | | (29,781 | ) | | | (36,348 | ) | | | (107,326 | ) | | | (112,851 | ) Net written premiums | $ | 135,240 | | | $ | 107,510 | | | $ | 407,384 | | | $ | 314,652 | | | | | | | | Net earned premiums | $ | 127,139 | | | $ | 93,710 | | | $ | 346,125 | | | $ | 258,939 | Fee income | | 2,630 | | | | 2,225 | | | | 8,285 | | | | 4,309 | Losses and loss adjustment expenses | | 73,061 | | | | 56,199 | | | | 201,445 | | | | 153,472 | Underwriting, acquisition and insurance expenses | | 37,204 | | | | 29,116 | | | | 104,149 | | | | 82,431 | Underwriting income (1) | | 19,504 | | | | 10,620 | | | | 48,816 | | | | 27,345 | Net investment income | | 13,051 | | | | 10,961 | | | | 37,755 | | | | 30,747 | Net realized and unrealized gains (losses) on investments | | (17,249 | ) | | | 9,179 | | | | 10,807 | | | | 5,990 | Interest expense | | 3 | | | | 392 | | | | 11 | | | | 1,286 | Other income | | 24 | | | | 25 | | | | 72 | | | | 1,017 | Other expenses | | 718 | | | | 659 | | | | 2,162 | | | | 1,059 | Income before income taxes | | 14,609 | | | | 29,734 | | | | 95,277 | | | | 62,754 | Income tax expense | | 3,566 | | | | 6,118 | | | | 19,886 | | | | 13,071 | Net income | $ | 11,043 | | | $ | 23,616 | | | $ | 75,391 | | | $ | 49,683 | Less: Net income (loss) attributable to non-controlling interest - General Partner | | (3,534 | ) | | | 952 | | | | 1,897 | | | | 936 | Net income attributable to stockholders | $ | 14,577 | | | $ | 22,664 | | | $ | 73,494 | | | $ | 48,747 | | | | | | | | Key Metrics | | | | | | | Adjusted net income attributable to stockholders (1) | $ | 14,665 | | | $ | 22,828 | | | $ | 73,812 | | | $ | 49,228 | Loss ratio | | 57.5 | % | | | 60.0 | % | | | 58.2 | % | | | 59.3 | % Expense ratio | | 27.2 | % | | | 28.7 | % | | | 27.7 | % | | | 30.2 | % Combined ratio (3) | | 84.7 | % | | | 88.7 | % | | | 85.9 | % | | | 89.4 | % Return on stockholders' equity (2) | | 8.8 | % | | | 15.8 | % | | | 15.4 | % | | | 13.2 | % Adjusted return on stockholders' equity (1) (2) | | 8.9 | % | | | 15.9 | % | | | 15.5 | % | | | 13.3 | % Diluted earnings per share | $ | 0.29 | | | $ | 0.45 | | | $ | 1.47 | | | $ | 1.06 | Adjusted diluted earnings per share(1) | $ | 0.29 | | | $ | 0.46 | | | $ | 1.48 | | | $ | 1.09 | (1) | | Each of these metrics is a non-GAAP financial measure. See "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 nine months ended September 30, 2026 and 2025, 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. Gross Written Premiums The following table presents gross written premiums by product for the three and nine months ended September 30, 2026 and 2025: | | Three Months Ended September 30, | | Nine Months Ended September 30, ($ in thousands, except percentages) | | | 2026 | | | 2025 | | % Change | | | 2026 | | | 2025 | | % Change Casualty | | $ | 108,791 | | $ | 98,863 | | 10.0 | % | | $ | 346,868 | | $ | 288,026 | | 20.4 | % Property | | | 56,230 | | | 44,995 | | 25.0 | % | | | 167,842 | | | 139,477 | | 20.3 | % Gross written premiums | | $ | 165,021 | | $ | 143,858 | | 14.7 | % | | $ | 514,710 | | $ | 427,503 | | 20.4 | % Expense Ratio The following tables summarize the components of our expense ratio for the three and nine months ended September 30, 2026 and 2025: | | Three Months Ended September 30, ($ in thousands, except percentages) | | 2026 | | 2025 | | Expenses | | % of Net Earned Premiums | | Expenses | | % of Net Earned Premiums Policy acquisition costs | | $ | 21,896 | | 17.2 | % | | $ | 16,741 | | 17.9 | % Operating expenses, net of fee income (1) | | | 12,678 | | 10.0 | % | | | 10,150 | | 10.8 | % Underwriting, acquisition and insurance expenses, net of fee income | | $ | 34,574 | | 27.2 | % | | $ | 26,891 | | 28.7 | % | | Nine Months Ended September 30, ($ in thousands, except percentages) | | 2026 | | 2025 | | Expenses | | % of Net Earned Premiums | | Expenses | | % of Net Earned Premiums Policy acquisition costs | | $ | 60,809 | | 17.6 | % | | $ | 47,562 | | 18.4 | % Operating expenses, net of fee income (1) | | | 35,055 | | 10.1 | % | | | 30,561 | | 11.8 | % Underwriting, acquisition and insurance expenses, net of fee income | | $ | 95,864 | | 27.7 | % | | $ | 78,123 | | 30.2 | % (1) | | Net of fee income of $2.6 million and $8.3 million for the three and nine months ended September 30, 2026, and $2.2 million and $4.3 million for the three and nine months ended September 30, 2025, respectively. Investment Results The following table summarizes net investment income and net realized and unrealized gains and losses on investments for the three and nine months ended September 30, 2026 and 2025: | | Three Months Ended September 30, | | Nine Months Ended September 30, ($ in thousands) | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Investment income | | | | | | | | Fixed-maturity securities | | $ | 9,924 | | | $ | 6,599 | | | $ | 27,125 | | | $ | 19,324 | Short-term investments | | | 1,650 | | | | 2,361 | | | | 5,216 | | | | 4,085 | Cash equivalents | | | 373 | | | | 433 | | | | 1,079 | | | | 1,344 | Loans to affiliates | | | 1,524 | | | | 1,537 | | | | 4,578 | | | | 3,330 | Total fixed income | | | 13,471 | | | | 10,930 | | | | 37,998 | | | | 28,083 | Equity securities | | | 55 | | | | — | | | | 55 | | | | — | Utility & Infrastructure Investments | | | (335 | ) | | | 64 | | | | 117 | | | | 2,995 | Other expenses | | | (140 | ) | | | (33 | ) | | | (415 | ) | | | (331 | ) Net investment income | | $ | 13,051 | | | $ | 10,961 | | | $ | 37,755 | | | $ | 30,747 | | | | | | | | | Net realized and unrealized gains (losses) on investments | | $ | (17,249 | ) | | $ | 9,179 | | | $ | 10,807 | | | $ | 5,990 | | | | | | | | | 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 nine months ended September 30, 2026 and 2025 reconciles to income before income taxes as follows: | | Three Months Ended September 30, | | Nine Months Ended September 30, ($ in thousands) | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Income before income taxes | | $ | 14,609 | | | $ | 29,734 | | | $ | 95,277 | | | $ | 62,754 | Less: | | | | | | | | Net investment income | | | (13,051 | ) | | | (10,961 | ) | | | (37,755 | ) | | | (30,747 | ) Net realized and unrealized (gains) losses on investments | | | 17,249 | | | | (9,179 | ) | | | (10,807 | ) | | | (5,990 | ) Other income | | | (24 | ) | | | (25 | ) | | | (72 | ) | | | (1,017 | ) Add: | | | | | | | | Interest expense | | | 3 | | | | 392 | | | | 11 | | | | 1,286 | Other expenses | | | 718 | | | | 659 | | | | 2,162 | | | | 1,059 | Underwriting income | | $ | 19,504 | | | $ | 10,620 | | | $ | 48,816 | | | $ | 27,345 | | | | | | | | | 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 and nine months ended September 30, 2026 and 2025 reconciles to net income attributable to stockholders as follows: | | Three Months Ended September 30, | | Nine Months Ended September 30, ($ in thousands) | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Net income attributable to stockholders | | $ | 14,577 | | | $ | 22,664 | | | $ | 73,494 | | | $ | 48,747 | Adjustments: | | | | | | | | Other non-operating expenses (1) | | | 111 | | | | 207 | | | | 402 | | | | 608 | Tax impact | | | (23 | ) | | | (43 | ) | | | (84 | ) | | | (127 | ) Adjusted net income attributable to stockholders | | $ | 14,665 | | | $ | 22,828 | | | $ | 73,812 | | | $ | 49,228 | (1) | | In the three and nine months ended September 30, 2026 and 2025, other non-operating expenses includes share-based compensation expenses recorded by us related to our initial public offering. 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 and nine months ended September 30, 2026 and 2025 reconciles to return on stockholders' equity as follows: | | Three Months Ended September 30, | | Nine Months Ended September 30, ($ in thousands, except percentages) | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Numerator: Adjusted net income attributable to stockholders, annualized (1) | | $ | 58,660 | | | $ | 91,312 | | | $ | 98,416 | | | $ | 65,637 | Denominator: Average stockholders' equity | | | 661,021 | | | | 574,125 | | | | 635,978 | | | | 493,434 | Adjusted return on stockholders' equity | | | 8.9 | % | | | 15.9 | % | | | 15.5 | % | | | 13.3 | % (1) | | For the three and nine months ended September 30, 2026 and 2025, 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 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 and nine months ended September 30, 2026 and 2025 reconciles to diluted earnings per share as follows: | | Three Months Ended September 30, | | Nine Months Ended September 30, ($ in thousands, except share and per share data) | | | 2026 | | | 2025 | | | 2026 | | | 2025 Numerator: Adjusted net income attributable to stockholders | | $ | 14,665 | | $ | 22,828 | | $ | 73,812 | | $ | 49,228 Denominator: Weighted-average shares outstanding - diluted | | | 50,246,439 | | | 49,972,530 | | | 49,974,188 | | | 45,046,434 Adjusted diluted earnings per share | | $ | 0.29 | | $ | 0.46 | | $ | 1.48 | | $ | 1.09 Conference Call Ategrity will hold a conference call to discuss this press release today, October 21, 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/664734151 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 2025 Form 10-K filed with the Securities and Exchange Commission, (the "SEC") on March 6, 2026. 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. Condensed Consolidated Balance Sheets (Unaudited) | | | | September 30, 2026 | | December 31, 2025 | ($ in thousands) Assets: | | | Fixed-maturity securities available-for-sale, at fair value | $ | 695,290 | | $ | 558,428 Utility & Infrastructure Investments, at fair value | | 219,468 | | | 189,859 Short-term investments | | 207,542 | | | 220,241 Loans to affiliates | | 106,500 | | | 106,500 Other invested assets | | 153 | | | 280 Total invested assets | | 1,228,953 | | | 1,075,308 | | | Cash and cash equivalents | | 13,614 | | | 29,721 Investment income due and accrued | | 13,835 | | | 10,186 Premiums receivable, net of allowance for credit losses | | 87,361 | | | 75,244 Deferred policy acquisition costs, net of ceding commissions | | 40,497 | | | 30,204 Income tax receivable | | 4,064 | | | — Deferred income tax asset, net | | 18,072 | | | 13,289 Reinsurance recoverable, net of allowance for credit losses | | 187,798 | | | 150,386 Ceded unearned premiums | | 69,555 | | | 74,317 Other assets | | 12,616 | | | 15,658 Total assets | $ | 1,676,365 | | $ | 1,474,313 | | | Liabilities, stockholders' equity and non-controlling interest: | | | Liabilities: | | | Reserves for unpaid losses and loss adjustment expenses | | 619,405 | | | 502,248 Unearned premiums | | 338,361 | | | 281,864 Payable to reinsurers | | 24,209 | | | 31,064 Accounts payable and accrued expenses | | 30,911 | | | 31,684 Income tax payable | | 182 | | | 8,414 Other liabilities | | 3,203 | | | 4,180 Total liabilities | | 1,016,271 | | | 859,454 | | | Stockholders' equity: | | | Total stockholders' equity | | 657,647 | | | 614,309 Non-controlling interest - General Partner | | 2,447 | | | 550 Total stockholders' equity and non-controlling interest | | 660,094 | | | 614,859 Total liabilities, stockholders' equity and non-controlling interest | $ | 1,676,365 | | $ | 1,474,313 | | | Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | ($ in thousands, except share and per share data) Revenues | | | | | | | Gross written premiums | $ | 165,021 | | | $ | 143,858 | | | $ | 514,710 | | | $ | 427,503 | Ceded written premiums | | (29,781 | ) | | | (36,348 | ) | | | (107,326 | ) | | | (112,851 | ) Net written premiums | | 135,240 | | | | 107,510 | | | | 407,384 | | | | 314,652 | Change in unearned premiums | | (8,101 | ) | | | (13,800 | ) | | | (61,259 | ) | | | (55,713 | ) Net earned premiums | | 127,139 | | | | 93,710 | | | | 346,125 | | | | 258,939 | Fee income | | 2,630 | | | | 2,225 | | | | 8,285 | | | | 4,309 | Net investment income | | 13,051 | | | | 10,961 | | | | 37,755 | | | | 30,747 | Net realized and unrealized gains (losses) on investments | | (17,249 | ) | | | 9,179 | | | | 10,807 | | | | 5,990 | Other income | | 24 | | | | 25 | | | | 72 | | | | 1,017 | Total revenues | | 125,595 | | | | 116,100 | | | | 403,044 | | | | 301,002 | | | | | | | | Expenses | | | | | | | Losses and loss adjustment expenses | | 73,061 | | | | 56,199 | | | | 201,445 | | | | 153,472 | Underwriting, acquisition and insurance expenses | | 37,204 | | | | 29,116 | | | | 104,149 | | | | 82,431 | Interest expense | | 3 | | | | 392 | | | | 11 | | | | 1,286 | Other expenses | | 718 | | | | 659 | | | | 2,162 | | | | 1,059 | Total expenses | | 110,986 | | | | 86,366 | | | | 307,767 | | | | 238,248 | Income before income taxes | | 14,609 | | | | 29,734 | | | | 95,277 | | | | 62,754 | Income tax expense | | 3,566 | | | | 6,118 | | | | 19,886 | | | | 13,071 | Net income | | 11,043 | | | | 23,616 | | | | 75,391 | | | | 49,683 | | | | | | | | Less: Net income (loss) attributable to non-controlling interest - General Partner | | (3,534 | ) | | | 952 | | | | 1,897 | | | | 936 | Net income attributable to stockholders | | 14,577 | | | | 22,664 | | | | 73,494 | | | | 48,747 | | | | | | | | Other comprehensive income: | | | | | | | Unrealized gains (losses), net of taxes | | (21,540 | ) | | | 5,939 | | | | (27,951 | ) | | | 5,976 | Total comprehensive income attributable to stockholders | $ | (6,963 | ) | | $ | 28,603 | | | $ | 45,543 | | | $ | 54,723 | | | | | | | | Earnings per share: | | | | | | | Basic | $ | 0.30 | | | $ | 0.47 | | | $ | 1.53 | | | $ | 1.10 | Diluted | $ | 0.29 | | | $ | 0.45 | | | $ | 1.47 | | | $ | 1.06 | Weighted-average shares outstanding: | | | | | | | Basic | | 47,926,921 | | | | 48,066,667 | | | | 48,000,264 | | | | 43,508,478 | Diluted | | 50,246,439 | | | | 49,972,530 | | | | 49,974,188 | | | | 45,046,434 | View source version on businesswire.com: https://www.businesswire.com/news/home/20261021002719/en/ Contacts Investor Relations Contact [email protected]

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Ategrity Specialty Insurance Company Holdings (ASIC) released its second quarter and first half 2026 results on July 29, 2026, giving investors new detail on revenue, earnings and profitability trends. For the quarter ended June 30, 2026, the company reported revenue of $148.48 million and net income of $33.45 million. Basic earnings per share from continuing operations were $0.70, with diluted earnings per share at $0.67. Across the first six months of 2026, Ategrity Specialty Insurance Company Holdings recorded revenue of $277.45 million and net income of $58.92 million. Basic earnings per share from continuing operations were $1.23 and diluted earnings per share were $1.18. See our latest analysis for Ategrity Specialty Insurance Company Holdings. Ategrity Specialty Insurance Company Holdings has seen momentum build in recent months, with a 90 day share price return of 22.36% and a year to date share price return of 19.15%, while the 1 year total shareholder return stands at 20.70% as the stock trades at $24.02 following the Q2 2026 earnings release. If the latest results have you thinking about what else is moving in related areas of the market, this could be a good moment to check out 18 top founder-led companies Bulls point to Ategrity Specialty Insurance Company Holdings’ recent earnings and share price gains. Bears focus on the risks of paying up after a strong run. Which side does the current valuation support? The most followed narrative on Ategrity Specialty Insurance Company Holdings pegs fair value at $30.00 per share versus the current $24.02 price, which points to a material gap that some investors are watching closely. Read the complete narrative. Want to see what is driving that higher fair value for Ategrity Specialty Insurance Company Holdings? The narrative leans heavily on underwriting quality, efficiency gains and a specific return profile. Curious how those ingredients combine to support a premium price tag and a sizeable discount to peers on paper? The full breakdown joins those pieces together in a way the headline numbers alone do not. Result: Fair Value of $30.00 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still clear swing factors. Adverse casualty reserve development or issues around the Zimmer affiliated investment portfolio could quickly challenge the bullish Ategrity Specialty Insurance Company Holdings narrative. Find out about the key risks to this Ategrity Specialty Insurance Company Holdings narrative. With sentiment around Ategrity Specialty Insurance Company Holdings running high, this is a good time to review the numbers yourself, compare different views, and act quickly while opinions are still forming. To see which potential bright spots others are focused on, check out the 4 key rewards If Ategrity Specialty Insurance Company Holdings has sharpened your focus, do not stop here. Broaden your watchlist now so you are not chasing the next opportunity too late. Target dependable cash generators by scanning companies with resilient payouts through the 9 dividend fortresses Hunt for quality at a potential discount by zeroing in on companies highlighted in the 55 high quality undervalued stocks Prioritise resilience by focusing on companies screened through the 81 resilient stocks with low risk scores This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASIC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record quarterly results with highest-ever written premiums, underwriting income, and net income. Gross written premiums grew 23.4% year-over-year, significantly outpacing the broader E&S market contraction. Combined ratio improved to 85.9% from 88.9% last year, driven by a lower operating expense ratio of 9.5%. Broad-based growth across casualty (24.7%) and property (21.3%) segments, supported by new products and regional strategies. Technology and AI integration reduced new product launch costs by approximately 60%, enhancing scalability and speed to market. Loss ratio increased slightly to 58.5% from 58.0% last year, partly due to higher catastrophe losses (4.3% vs. 4.1%). Competitive pressure in the E&S market continues to intensify, particularly in property and management liability segments. Mix shift toward the brokerage channel, which carries a higher loss ratio, may pressure underwriting margins. Property pricing was flat to slightly negative, reflecting a soft market and the need to protect renewal portfolios. Net written premium retention declined due to increased reinsurance usage in the brokerage channel, impacting net growth metrics. Here are the key highlights from the Ategrity Specialty Insurance Co Holdings (NYSE:ASIC) Q2 2026 earnings call. Warning! GuruFocus has detected 1 Warning Sign with FINW. Is ASIC fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more context on the new business submissions you saw? Did the pace of growth accelerate from last quarter? A: (Justin Cohen, CEO) We are not providing the specific number, but we can say that submission growth was in excess of our premium growth. (Chris Schenk, President and Chief Underwriting Officer) We continue to remain selective and are finding excellent opportunities on new business across all products, including property, management liability, and casualty, particularly in low-volatility jurisdictions. Q: How are you thinking about top-line growth between property and casualty, and what are the current pricing conditions in both? A: (Justin Cohen, CEO) We expect to see continued momentum in both property and casualty along the lines of what you saw this quarter. (Chris Schenk, President and Chief Underwriting Officer) We are seeing a lot of momentum in property, driven by unique strategies like Project Heartland and the New England strategy. On rates, we were effectively flat, with low negative single-digits on property as we chose to protect our renewal portfolio. On new business, pricing levels are up slightly year-over-year. Q: What was driving the reserve releases this quarter? A: (Justin Cohen, CEO) This is a continuation of what we discussed last quarter. In the past few years, we booked our property results with a degree of prudence, expecting reported losses to come in over the course of this year. They have not materialized to the degree we expected, which led to the reserve releases. Q: Can you discuss the mix-shift dynamics affecting the year-over-year comparison in the attritional loss ratio? A: (Justin Cohen, CEO) This is driven by the mix shift into our brokerage channel, which has a higher loss ratio than our small business channel. However, this also drives our commission ratio lower, creating an offsetting dynamic. There has been no change in our underlying loss picks by line of business and channel. Q: Do you see a lot of geographic opportunity beyond the regions you've already entered, and can you provide more clarity on your middle market segment growth? A: (Chris Schenk, President and Chief Underwriting Officer) The regional strategies are not just a benefit to us; they fill a market need for our partners. The initial entry creates residual benefits, such as seeing attractive business in Wyoming because we were in Nebraska. (Justin Cohen, CEO) From a middle market perspective, we have been growing in our brokerage channel in a meaningful way, which is part of the numbers you are seeing. Q: Does it get harder to find unique niches as the market becomes more competitive? A: (Chris Schenk, President and Chief Underwriting Officer) We believe we are in unique spaces because we took the time to understand them and provide a unique solution. Most of our peers take a generic approach, which gives us more momentum and opportunities. Our competitive advantage is our ability to quickly go from research to deployment of solutions in a matter of weeks. Q: Can you give some color on the CFO transition and what led to it? A: (Justin Cohen, CEO) This was a scheduled expiration of an existing contract. We are excited to have Neil Adler join as CFO. He has been involved with the business since its foundation and takes a forward-looking view on scaling the business. (Neil Adler, CFO) I've been involved since the founding, and everything I've seen since taking the reins reinforces that it's an experienced finance group with established processes. Q: How are the staffing plans unfolding in the claims operation as you grow? A: (Justin Cohen, CEO) We have over 30 people on our in-house claims team with a sophisticated staffing model to ensure we are ahead of the curve. We are well-resourced for the claim volume we are receiving and are also deploying technology. (Chris Schenk, President and Chief Underwriting Officer) In parallel with our core operating system, we have been deploying new capabilities on the claims side, including integration estimation tools and new functionality for case reserves. We are looking for strong people, not just more man-hours. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Ategrity Specialty? Here are five stocks we like better. Record growth: Ategrity’s gross written premiums rose 23.4% year over year, with casualty up 24.7% and property up 21.3%, despite a contracting E&S market. Profitability strengthened: Adjusted net income reached $33.5 million, while underwriting income increased 66.9% to $16 million. The combined ratio improved to 85.9%, mainly due to lower expense ratios. Positive outlook: Management expects third-quarter gross written premium growth to exceed the E&S market by more than 20 percentage points and forecasts a combined ratio of approximately 87%. Ategrity Specialty (NYSE:ASIC) reported record quarterly written premiums, underwriting income and net income for its second quarter of fiscal 2026, as the specialty insurer grew premiums across its casualty and property businesses despite what management described as a contracting excess-and-surplus, or E&S, market. Gross written premiums increased 23.4% from a year earlier, including 24.7% growth in casualty premiums and 21.3% growth in property premiums. Net written premiums rose 30.8%, while net earned premiums increased 30.9%. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Chief Executive Officer Justin Cohen said the company’s growth exceeded industry conditions and was supported by expanded distribution relationships, regional initiatives and products introduced during the past year. He said both casualty and property premium growth surpassed 20%. “In a quarter in which the E&S industry contracted as a whole, we produced 23.4% growth in gross written premiums alongside an 85.9% combined ratio, with both metrics well ahead of guidance,” Cohen said. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Adjusted net income rose to $33.5 million from $17.9 million in the prior-year quarter. Adjusted earnings were $0.67 per diluted share. Underwriting income increased 66.9% year over year to $16 million. The combined ratio improved to 85.9% from 88.9% a year earlier. The improvement was primarily driven by expenses, with the overall expense ratio declining 3.5 percentage points to 27.5%. → Innovative ETF Strategies That Are Paying Off This Summer Chief Financial Officer Neil Adler said the underwriting operating expense ratio fell 2.9 points to 9.5% of net earned premiums, reflecting premium growth that outpaced operating expenses as well as higher fee income. Policy acquisition costs declined to 17.9% of net earned premiums, from 18.5% in the prior-year period. Fee income increased to $3.4 million from $1.5 million, driven by standard policy fees introduced during 2025. The loss ratio was 58.5%, up 0.5 percentage point year over year. Adler said the increase reflected a continued shift toward the brokerage channel, which carries a higher booked loss ratio than the company’s small-business channel, as well as lower catastrophe activity in the year-earlier period. Catastrophe losses represented 4.3% of net earned premiums, compared with 4.1% a year earlier. The company also recorded favorable prior-year reserve development equivalent to 0.9% of net earned premiums. Cohen said the reserve release was related to property business, where losses had not emerged to the degree the company had anticipated when it established reserves. Management said it saw no material favorable or adverse casualty reserve development during the quarter. Cohen said actual casualty reporting has been below expectations, which management views as evidence of the portfolio’s performance. President and Chief Underwriting Officer Chris Schenk said the quarter’s growth reflected a larger renewal portfolio and broad-based new-business activity. Submission growth exceeded premium growth, he said, while the company remained selective in underwriting. Schenk pointed to Project Heartland, Ategrity’s regional strategy in the Midwest, and its New England initiative, which launched in April, as contributors to growth. The company also cited accelerating property growth and contributions from newer professional liability and management liability products. On pricing, Schenk said property rates were effectively flat to down by low-single-digit percentages. He said Ategrity opted to preserve certain well-performing renewal accounts in regions important to its portfolio balance. New-business property pricing, meanwhile, was slightly higher year over year, according to Schenk. Management said it continues to identify opportunities in smaller and medium-sized businesses, including through the brokerage channel. Cohen described the small-business channel as covering more micro-sized accounts, while brokerage business includes accounts in the company’s mid-sized range. The brokerage mix shift has reduced policy acquisition costs but increased the booked loss ratio and reinsurance use, management said. Cohen also said the higher level of brokerage business contributed to an unusually low quarterly retention level, as mid-sized accounts use more reinsurance programs and placements. Schenk said Ategrity’s modular technology architecture allows the company to reuse capabilities across products, channels and growth initiatives. He said the company is using agentic artificial intelligence across functions including marketing and governance. The company brought its Architects and Engineers product to market earlier in the month using an estimated 60% fewer resources because of AI, Schenk said. He said the company has “all but eliminated” the fixed cost of launching a new product while accelerating its speed to market. Ategrity also said it has more than 30 employees on its in-house claims team. Cohen said the company uses a staffing model based on actual versus expected claim counts and is focused on ensuring it remains appropriately resourced as claims volume grows. Schenk said the company has been adding claims capabilities product by product, including integration and estimation tools, more precise case-reserving functionality and processes intended to place claims on appropriate paths to resolution. Net investment income increased to $12.7 million from $11.9 million a year earlier, as a larger investment portfolio partly offset lower short-term interest rates. Realized and unrealized gains totaled $18.6 million, or $14.9 million after non-controlling interest, supported by results in the company’s utility and infrastructure portfolio. Cash and investments rose by $62.3 million from the first quarter to $1.2 billion. Book value increased by $33.4 million during the quarter, supported by retained earnings and an increase in accumulated other comprehensive income, partially offset by repurchases under the company’s stock buyback program. Book value per share ended the quarter at $13.86, up 31% since Ategrity’s initial public offering. For the third quarter, Cohen said Ategrity expects gross written premiums to grow more than 20 percentage points above the E&S market and forecast a combined ratio of about 87%, which would represent a year-over-year improvement. We are a profitable and growing specialty insurance company dedicated to providing excess and surplus (“E&S”) products to small to medium-sized businesses (“SMBs”) 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 SMB 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 instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ategrity Specialty Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.