Ategrity Specialty Holdings LLC (ASIC)
NYSE:ASIC
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Ategrity Specialty Holdings LLC
(NYSE:ASIC)
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Rating:82Outperform
Price Target:
$22.00
▲(10.39% Upside)
Action:ReiteratedDate:03/07/26
The score is driven primarily by strong financial performance (rapid growth, improving profitability, debt-free balance sheet, and solid cash generation) and a supportive earnings outlook with continued growth initiatives despite guidance implying some near-term combined-ratio normalization. Technicals are constructive with the stock trading above key moving averages, while valuation looks reasonable at ~10x earnings; the main risk is sustainability across the underwriting cycle and exposure to competitive/catastrophe volatility.
Positive Factors
Debt-free balance sheet & rising ROE
A zero-debt balance sheet with materially higher ROE gives the company durable financial flexibility to underwrite through cycles, fund growth initiatives, and return capital. Higher ROE signals better earnings power on equity, supporting long-term capital efficiency and strategic optionality.
Negative Factors
Sustainability of rapid margin improvement
Sharp margin and revenue gains achieved over a short span may revert as market pricing, competition, or loss trends normalize. In P&C insurance, rapid improvement often reflects favorable cycle timing; sustaining these metrics requires consistent underwriting discipline and pricing power across changing market conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet & rising ROE
A zero-debt balance sheet with materially higher ROE gives the company durable financial flexibility to underwrite through cycles, fund growth initiatives, and return capital. Higher ROE signals better earnings power on equity, supporting long-term capital efficiency and strategic optionality.
Read all positive factors
Ategrity Specialty Holdings LLC (ASIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$957.97M
Dividend YieldN/A
Average Volume (3M)218.36K
Price to Earnings (P/E)12.7
Beta (1Y)1.30
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees175
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.51
Shares Outstanding48,066,673
10 Day Avg. Volume191,695
30 Day Avg. Volume218,356
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)1.53
Price to Sales (P/S)2.21
P/FCF Ratio6.67
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue2.19
Enterprise Value/Gross Profit4.38
Enterprise Value/Ebitda9.56
Forecast
1Y Price Target
$26.75Price Target Upside34.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.92
Revenue Forecast (FY)$564.94M
Ategrity Specialty Holdings LLC Business Overview & Revenue Model
Company Description
Ategrity Specialty Holdings LLC, through its subsidiaries, provides insurance and reinsurance products to small to medium-sized businesses in the United States. It offers property and casualty insurance. The company was incorporated in 2017 and is...
How the Company Makes Money
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Ategrity Specialty Holdings LLC Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call was strongly positive: Ategrity reported record quarterly results with substantial top-line growth (GWP +30%, NWP +44%), a best-ever combined ratio (84.9%), meaningful margin expansion (underwriting income +160%, expense ratio improvement of 6.1 points), and healthy balance sheet and investment performance. Management articulated clear growth initiatives (regional plays, Project Heartland), significant distribution momentum, and an operationalized AI roadmap expected to further reduce costs. Primary cautions raised were industry deceleration and marginally higher competition, guidance implying a higher combined ratio next quarter (just below 90%), concentration in the small/midsized E&S niche, catastrophe volatility, and typical execution risks around AI deployment. Overall, the positives materially outweigh the negatives.Positive Updates
Record Top- and Bottom-Line Growth
Gross written premiums grew 30% year-over-year; net written premiums increased 44% YoY; net earned premiums grew 34% YoY. Adjusted net income was $25.4M versus $22.7M a year ago (≈+11.9%).
Negative Updates
Moderating Industry Growth and Slightly Higher Competitive Intensity
Management noted E&S industry growth has decelerated and competitive intensity increased marginally this quarter, which could pressure pricing or growth if sustained.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Top- and Bottom-Line Growth
Gross written premiums grew 30% year-over-year; net written premiums increased 44% YoY; net earned premiums grew 34% YoY. Adjusted net income was $25.4M versus $22.7M a year ago (≈+11.9%).
Read all positive updates
Company Guidance
Ategrity reiterated Q1 2026 guidance calling for growth 20 percentage points above E&S market growth and a combined ratio just below 90%; management said it expects to remain within its target casualty mix of 60–70% (67% in Q4) and to drive the expense ratio lower as AI is ramped in 2026, while retaining capital flexibility (announced $50 million share repurchase). The guidance is supported by recent Q4 metrics: gross written premiums +30% YoY, net written premiums +44%, net earned premiums +34%, combined ratio 84.9%, submissions ~+90% YoY, underwriting income $15.5M, adjusted net income $25.4M, and book value per share $12.78 (up 21% since IPO).Ategrity Specialty Holdings LLC Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 424.34M | 343.83M | 241.32M |
| Gross Profit | 212.19M | 107.91M | 41.01M |
| EBITDA | 97.27M | 69.00M | 15.09M |
| Net Income | 74.00M | 47.09M | 10.05M |
Balance Sheet | |||
| Total Assets | 1.26B | 1.12B | 882.04M |
| Cash, Cash Equivalents and Short-Term Investments | 588.15M | 517.94M | 362.85M |
| Total Debt | 1.35M | 0.00 | 0.00 |
| Total Liabilities | 644.36M | 724.63M | 559.85M |
| Stockholders Equity | 614.31M | 398.31M | 321.70M |
Cash Flow | |||
| Free Cash Flow | 140.72M | 125.61M | 85.71M |
| Operating Cash Flow | 147.19M | 125.61M | 85.71M |
| Investing Cash Flow | -274.15M | -363.27M | 14.51M |
| Financing Cash Flow | 130.11M | -414.00K | 32.27M |
Ategrity Specialty Holdings LLC Risk Analysis
Ategrity Specialty Holdings LLC disclosed 69 risk factors in its most recent earnings report. Ategrity Specialty Holdings LLC reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ategrity Specialty Holdings LLC Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $957.97M | 12.68 | ― | ― | ― | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $81.03M | 12.98 | 8.27% | 4.16% | 24.17% | 739.42% | |
66 Neutral | $129.07M | 10.15 | 10.29% | 2.69% | 10.78% | 21.72% | |
65 Neutral | $87.01M | 13.56 | 5.80% | 2.08% | 1.03% | -35.72% | |
62 Neutral | $33.52M | -9.09 | 0.22% | 3.73% | 115.35% | -48.45% |
* Financial Sector Average
ASIC
Ategrity Specialty Holdings LLC
19.93
-4.07
-16.96%
AUBN
Auburn National Bancorporation
23.19
3.50
17.78%
SBFG
SB Financial Group
20.48
1.78
9.52%
GROW
US Global Investors
2.67
0.67
33.17%
FUSB
First US Bancshares
15.40
2.33
17.83%
Ategrity Specialty Holdings LLC Corporate Events
Stock Buyback
Ategrity Specialty Launches $50 Million Share Repurchase Program
Positive
Feb 19, 2026
On February 12, 2026, Ategrity Specialty Holdings LLC’s board authorized a share repurchase program of up to $50 million of its outstanding common stock, giving management flexibility over the timing, volume and method of buybacks. The progr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.