Ategrity Specialty Insurance Company Holdings Reports Third Quarter 2025 Results

Gross written premiums up 30.1% and combined ratio of 88.7% drive record earnings Ategrity Specialty Insurance Company Holdings (NYSE: ASIC) today announced financial results for the quarter ended September 30, 2025. The Company reported net income attributable to stockholders of $22.7 million, or $0.45 per diluted share, compared to $12.9 million, or $0.36 per diluted share, in the prior-year period. Adjusted net income attributable to stockholders(1) was $22.8 million, or $0.46 per diluted share(1). Third Quarter 2025 Highlights Gross written premiums increased 30.1% to $143.9 millionNet income attributable to stockholders was $22.7 million, or $0.45 per diluted share, up 76.2%Adjusted net incomeattributable to stockholders(1) was $22.8 million, or $0.46 per diluted shareCombined ratio was 88.7%, compared to 95.3% in Q3 2024Adjusted return on stockholders’ equity(1) was 15.9%Book value per share at quarter-end was $12.24 per share, up 18.0% from year-end Chief Executive Officer Justin Cohen said, “Ategrity delivered another quarter of top-line growth and margin expansion. Our results reflect consistent execution of our underwriting strategy, supported by disciplined pricing and prudent risk selection. Growth initiatives and broader distribution drove higher submission volume, which we converted into profitable business without compromising selectivity. Our business scaled efficiently, producing operating leverage and a lower expense ratio. We operate a differentiated model underpinned by analytics and automation that continues to extend our advantage in the market and drive profitable growth.” Underwriting Results For the quarter ended September 30, 2025, gross written premiums increased 30.1% compared to the prior-year period, driven by execution of our growth initiatives and increased engagement across our expanding distribution network. Gross written premiums for casualty lines increased 41.4% year-over-year, reflecting the Company’s strategic focus on broadening casualty-related products and verticals. Gross written premiums in property lines increased 10.8% year-over-year, an acceleration of growth on a sequential basis, reflecting the benefit of a full-year anniversary of the pricing and catastrophe management actions initiated in the third quarter of 2024. Underwriting income(1) was $10.6 million for the quarter, up 207.7% from $3.5 million in the prior year period. The combined ratio for the quarter was 88.7%, a decrease from 95.3% in the prior-year period, driven by improvements in both the loss and expense ratios. The loss ratio decreased by 2.1 percentage points to 60.0%, supported by strong underwriting results in property, including lower attritional losses and favorable catastrophe experience. The overall expense ratio was 28.7% for the quarter, compared to 33.2% in the prior-year period, driven by operating expense leverage and lower net policy acquisition costs. Operating expenses, net of fee income, decreased as a percentage of net earned premiums by 2.7 percentage points to 10.8%, reflecting emerging scale benefits of our centralized model, as well as improved fee income. Policy acquisition costs also contributed to margin expansion, decreasing as a percentage of net earned premiums by 1.8 percentage points to 17.9%, reflecting favorable business mix. President and Chief Underwriting Officer Chris Schenk said, “This quarter’s performance demonstrates how combining disciplined underwriting with the strategic deployment of technology drives strong operating results. Submission growth accelerated in the third quarter, reflecting our expanding distribution network and record demand for our products. We remained selective in our underwriting, attaining our target hit ratios. We achieved rate increases ahead of loss trend in both property and casualty lines. Our results benefited from favorable property experience and a deliberate shift in our portfolio toward areas of our business with stronger underlying economics. We also improved our exposure profile and grew premiums faster than expenses. Taken together, these results reinforce the scalability of our productionized underwriting model and its ability to deliver sustainable growth and profitability.” ____________________ 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, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands, except percentages) 2025 2024 2025 2024 Gross written premiums $ 143,858 $ 110,552 $ 427,503 $ 318,771 Ceded written premiums (36,348 ) (34,624 ) (112,851 ) (95,811 ) Net written premiums 107,510 75,928 314,652 222,960 Net premiums earned 93,710 72,885 258,939 213,802 Fee income 2,225 249 4,309 565 Losses and loss adjustment expenses 56,199 45,230 153,472 130,404 Underwriting, acquisition and insurance expenses 29,116 24,452 82,431 72,157 Underwriting income(1) 10,620 3,452 27,345 11,806 Net investment income 10,961 6,810 30,747 17,790 Net realized and unrealized gains (losses) on investments 9,179 8,777 5,990 6,950 Interest expense (392 ) (480 ) (1,286 ) (1,574 ) Other income 25 24 1,017 72 Other expenses (659 ) (64 ) (1,059 ) (174 ) Income before income taxes 29,734 18,519 62,754 34,870 Income tax expense 6,118 3,346 13,071 6,622 Net income $ 23,616 $ 15,173 $ 49,683 $ 28,248 Less: Net (loss) income attributable to non-controlling interest - General Partner 952 2,310 936 2,684 Net income attributable to stockholders $ 22,664 $ 12,863 $ 48,747 $ 25,564 Key Metrics Adjusted net income attributable to stockholders(1) $ 22,828 $ 12,863 $ 49,228 $ 25,564 Loss ratio 60.0 % 62.1 % 59.3 % 61.0 % Expense ratio 28.7 % 33.2 % 30.2 % 33.5 % Combined ratio(3) 88.7 % 95.3 % 89.4 % 94.5 % Return on stockholders' equity(2) 15.8 % 14.7 % 13.2 % 10.0 % Adjusted return on stockholders' equity(1)(2) 15.9 % 14.7 % 13.3 % 10.0 % Diluted earnings per share $ 0.45 $ 0.36 $ 1.06 $ 0.71 Adjusted diluted earnings per share(1) $ 0.46 $ 0.36 $ 1.09 $ 0.71 (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, 2025 and 2024, net income attributable to stockholders and adjusted net income attributable to stockholders are annualized to arrive at return on stockholders’ equity and adjusted return on stockholders’ equity. (3) Ratios are calculated using unrounded figures. The sum of components may differ slightly from totals shown due to rounding. Gross Written Premiums The following table presents gross written premiums by product for the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands, except percentages) 2025 2024 % Change 2025 2024 % Change Casualty $ 98,863 $ 69,931 41.4 % $ 288,026 $ 188,737 52.6 % Property 44,995 40,621 10.8 % 139,477 130,034 7.3 % Gross written premiums $ 143,858 $ 110,552 30.1 % $ 427,503 $ 318,771 34.1 % Expense Ratio The following tables summarize the components of our expense ratio for the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, ($ in thousands, except percentages) 2025 2024 Expenses % of Net Earned Premiums Expenses % of Net Earned Premiums Policy acquisition costs $ 16,741 17.9 % $ 14,348 19.7 % Operating expenses, net of fee income(1) 10,150 10.8 % 9,856 13.5 % Underwriting, acquisition and insurance expenses, net of fee income(2) $ 26,891 28.7 % $ 24,204 33.2 % Nine Months Ended September 30, 2025 2024 ($ in thousands, except percentages) Expenses % of Net Earned Premiums Expenses % of Net Earned Premiums Policy acquisition costs $ 47,562 18.4 % $ 44,579 20.9 % Operating expenses, net of fee income(1) 30,561 11.8 % 27,013 12.6 % Underwriting, acquisition and insurance expenses, net of fee income $ 78,123 30.2 % $ 71,592 33.5 % (1) Net of fee income of $2.2 million and $0.2 million for the three months ended September 30, 2025 and 2024, and $4.3 million and $0.6 million for the nine months ended September 30, 2025 and 2024, respectively. (2) Ratios are calculated using unrounded figures. The sum of components may differ slightly from totals shown due to rounding. Investment results The following tables summarize net investment income and net realized and unrealized gains on investments for the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2025 2024 2025 2024 Investment income Fixed-maturity securities $ 6,599 $ 4,863 $ 19,324 $ 8,384 Short-term investments 2,361 196 4,085 2,477 Cash equivalents 433 1,267 1,344 4,871 Equity securities — — — 44 Loans to affiliates 1,537 250 3,330 751 Securities sold not yet purchased — (13 ) — (249 ) Total fixed income 10,930 6,563 28,083 16,278 Utility & Infrastructure Investments 64 177 2,995 1,561 Other expenses (33 ) 70 (331 ) (49 ) Net investment income $ 10,961 $ 6,810 $ 30,747 $ 17,790 Net realized and unrealized gains (losses) on investments $ 9,179 $ 8,777 $ 5,990 $ 6,950 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, 2025 and 2024 reconciles to income before income taxes as follows: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2025 2024 2025 2024 Income before income taxes $ 29,734 $ 18,519 $ 62,754 $ 34,870 Less: Net investment income (10,961 ) (6,810 ) (30,747 ) (17,790 ) Net realized and unrealized (gains) losses on investments (9,179 ) (8,777 ) (5,990 ) (6,950 ) Other income (25 ) (24 ) (1,017 ) (72 ) Add: Interest expense 392 480 1,286 1,574 Other expenses 659 64 1,059 174 Underwriting income $ 10,620 $ 3,452 $ 27,345 $ 11,806 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, 2025 and 2024 reconciles to net income attributable to stockholders as follows: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2025 2024 2025 2024 Net income attributable to stockholders $ 22,664 $ 12,863 $ 48,747 $ 25,564 Adjustments: Other non-operating expenses(1) 207 — 608 — Tax impact (43 ) — (127 ) — Adjusted net income attributable to stockholders $ 22,828 $ 12,863 $ 49,228 $ 25,564 (1) In the three and nine months ended September 30, 2025, other non-operating expenses includes share-based compensation expenses recorded by us related to our initial public offering. Adjusted return on stockholders’ equity 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, 2025 and 2024 reconciles to return on stockholders’ equity as follows: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands, except percentages) 2025 2024 2025 2024 Numerator: Adjusted net income attributable to stockholders, annualized(1) $ 91,312 $ 51,452 $ 65,637 $ 34,085 Denominator: Average stockholders’ equity 574,125 349,822 493,434 341,716 Adjusted return on stockholders' equity 15.9 % 14.7 % 13.3 % 10.0 % (1) For the three and nine months ended September 30, 2025 and 2024, net income and adjusted net income are annualized to arrive at return on stockholders’ equity and adjusted return on stockholders’ equity. Adjusted diluted earnings per share We define adjusted diluted earnings per share as adjusted net income 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, 2025 and 2024 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) 2025 2024 2025 2024 Numerator: Adjusted net income attributable to stockholders $ 22,828 $ 12,863 $ 49,228 $ 25,564 Denominator: Weighted-average shares outstanding - diluted 49,972,530 36,229,096 45,046,434 36,233,646 Adjusted diluted earnings per share $ 0.46 $ 0.36 $ 1.09 $ 0.71 Conference Call Ategrity will hold a conference call to discuss this press release today, October 22, at 5:00 p.m. Eastern Time. Interested parties may access the conference call via a live webcast, which can be accessed at https://events.q4inc.com/attendee/426743085 or by visiting the Company’s Investor Relations website. Please join the webcast at least 10 minutes before the scheduled start time. A replay of the event webcast will be available on the Company’s Investor Relations website approximately two hours following the call, for a period of at least 30 days. About Ategrity Specialty Insurance Company Holdings Ategrity Specialty Insurance Company Holdings is a profitable and growing specialty insurance company dedicated to providing excess and surplus (“E&S”) products to small to medium-sized businesses across the United States. We have built a proprietary underwriting platform that combines sophisticated data analytics with automated and streamlined processes to efficiently serve our clients and deliver long-term value to our stockholders. The small to medium-sized business market is characterized by large volumes of small-sized policies, and we believe our competitive edge lies in our ability to offer consistent, high-speed, and low-touch interactions that our distribution partners value. This advantage stems from our technology-driven method of standardizing, simplifying, and automating our transaction process, which we call productionized underwriting. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. You can identify forward-looking statements in this press release by the use of words such as “anticipates,” “estimates,” “expects,” “intends,” “plans,” and “believes,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could.” These forward-looking statements include, among others, statements relating to our investments in automation and analytics and their expected impact and expected profitable growth. These forward-looking statements are based on management’s current expectations and assumptions about future events, which are inherently subject to uncertainties, risks, and changes in circumstances that are difficult to predict. Our actual results may differ materially from those expressed in, or implied by, the forward-looking statements included in this press release as a result of various factors, including, among others: the risks and uncertainties discussed under the caption “Risk Factors” in our Prospectus filed pursuant to Rule 424(b)(4) filed with the Securities and Exchange Commission, (the “SEC”) on June 11, 2025 and our other filings with the SEC. Accordingly, you should read this press release completely and with the understanding that our actual future results may be materially different from what we expect. Forward-looking statements speak only as of the date of this press release. Except as expressly required under federal securities laws and the rules and regulations of the SEC, we do not have any obligation, and do not undertake, to update any forward-looking statements to reflect events or circumstances arising after the date of this press release, whether as a result of new information, future events, or otherwise. You should not place undue reliance on the forward-looking statements included in this press release or that may be made elsewhere from time to time by us, or on our behalf. All forward-looking statements attributable to us are expressly qualified by these cautionary statements. Condensed Consolidated Balance Sheets (Unaudited) September 30, 2025 (Unaudited) December 31, 2024 (in thousands, except shares and par value data) Assets: Fixed maturity securities available-for-sale, at fair value (amortized cost: $503,537 in 2025 and $434,965 in 2024) $ 514,899 $ 438,752 Utility & Infrastructure Investments, at fair value (cost of $172,753 in 2025 and $216,075 in 2024) 185,574 270,242 Short-term investments 223,005 52,612 Loans to affiliates 106,500 13,501 Other invested assets 280 280 Total invested assets 1,030,258 775,387 Cash and cash equivalents 34,319 26,573 Due from broker 27 — Investment income due and accrued 11,739 5,642 Premiums receivable, net of allowance for credit losses of $7,484 in 2025 and $5,907 in 2024 77,943 53,500 Deferred policy acquisition costs, net of ceding commissions 30,066 21,552 Prepaid reinsurance premiums 7,482 3,905 Deferred income tax asset, net 9,227 9,670 Reinsurance recoverable, net of allowance for credit losses of $0 in 2025 and $0 in 2024 165,230 133,616 Receivable from affiliates, net 514 16,857 Ceded unearned premiums 70,467 68,205 Other assets 9,155 8,531 Total assets $ 1,446,427 $ 1,123,438 Liabilities, stockholders' equity and non-controlling interest: Liabilities: Reserves for unpaid losses and loss adjustment expenses 487,198 403,576 Unearned premiums 270,803 212,828 Securities sold, not yet purchased, at fair value (cost of $0 in 2025 and $932 in 2024) — 930 Payable to reinsurers 25,040 27,160 Due to broker — 9,189 Accounts payable and accrued expenses 50,658 38,061 Funds held under reinsurance treaties 1,682 2,092 Income tax payable 17,855 26,488 Other liabilities 3,195 4,307 Total liabilities 856,431 724,631 Stockholders' equity: Preferred stock, $0.001 par value, 100,000,000 shares authorized and none issued or outstanding. — — Common stock, $0.001 par value, 500,000,000 shares authorized, 48,066,674 and 38,386,433 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively. 48 38 Additional paid-in capital 496,222 360,703 Retained earnings 83,316 34,569 Accumulated other comprehensive income 8,974 2,997 Total stockholders' equity 588,560 398,307 Non-controlling interest - General Partner 1,436 500 Total stockholders' equity and non-controlling interest 589,996 398,807 Total liabilities, stockholders' equity and non-controlling interest $ 1,446,427 $ 1,123,438 Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands, except share and per share data) Revenues Gross written premiums $ 143,858 $ 110,552 $ 427,503 $ 318,771 Ceded written premiums (36,348 ) (34,624 ) (112,851 ) (95,811 ) Net written premiums 107,510 75,928 314,652 222,960 Change in unearned premiums (13,800 ) (3,043 ) (55,713 ) (9,158 ) Net premiums earned 93,710 72,885 258,939 213,802 Fee income 2,225 249 4,309 565 Net investment income 10,961 6,810 30,747 17,790 Net realized and unrealized gains (losses) on investments 9,179 8,777 5,990 6,950 Other income 25 24 1,017 72 Total revenues 116,100 88,745 301,002 239,179 Expenses Losses and loss adjustment expenses 56,199 45,230 153,472 130,404 Underwriting, acquisition and insurance expenses 29,116 24,452 82,431 72,157 Interest expense 392 480 1,286 1,574 Other expenses 659 64 1,059 174 Total expenses 86,366 70,226 238,248 204,309 Income before income taxes 29,734 18,519 62,754 34,870 Income tax expense 6,118 3,346 13,071 6,622 Net income 23,616 15,173 49,683 28,248 Less: Net income (loss) attributable to non-controlling interest - General Partner 952 2,310 936 2,684 Net income attributable to stockholders 22,664 12,863 48,747 25,564 Other comprehensive income: Unrealized gains (losses), net of taxes 5,939 10,882 5,976 14,230 Total comprehensive income attributable to stockholders $ 28,603 $ 23,745 $ 54,723 $ 39,794 Earnings per share: Basic $ 0.47 $ 0.36 $ 1.10 $ 0.71 Diluted $ 0.45 $ 0.36 $ 1.06 $ 0.71 Weighted-average shares outstanding: Basic 48,066,667 36,227,222 43,508,478 36,232,494 Diluted 49,972,530 36,229,096 45,046,434 36,233,646 Source: Ategrity Specialty Insurance Company