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    ASIC
    Earnings call· Jun 2026(Q2 FY26)

    Ategrity Specialty Insurance Co Holdings Q2 FY26 earnings call ASIC

    Jul 29, 2026 Source

    Executive summary

    Ategrity Q2 FY26 — Record Premiums and Underwriting Profitability

    Ategrity delivered record Q2 FY26 results, driven by strong premium growth across property and casualty and significant underwriting margin expansion, outperforming a contracting E&S market. The company's scalable underwriting platform and strategic focus on less competitive segments, supported by AI and technology, are reinforcing its ability to grow profitably. Management expects continued market share gains and underwriting improvement into Q3.

    Highlights

    5

    • Gross written premiums grew 23.4%, reaching a new quarterly record.

    • Combined ratio improved 3 points year-over-year to 85.9%, well ahead of guidance.

    • Underwriting income increased 66.9% year-over-year to $16 million.

    • Adjusted net income rose to $33.5 million, up from $17.9 million in Q2 FY25.

    • Operating expense ratio declined 2.9 points year-over-year to 9.5% of net earned premiums.

    Concerns

    3

    • Loss ratio increased 0.5 percentage points year-over-year to 58.5%, reflecting a shift towards the brokerage channel and lower prior-year catastrophe activity.

    • Catastrophe losses were 4.3% of net earned premiums, up from 4.1% last year.

    • Competitive pressure continued to intensify across portions of the E&S market.

    Guidance & targets

    2
    CategoryTargetConfidence
    Gross Written Premiums growth
    more than 20 percentage points above the E&S market
    high materiality
    High
    Combined Ratio
    approximately 87%
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Casualty
    Strong growth in gross written premiums, driven by expanding distribution relationships, targeted regional strategies, and new product launches.
    		—24.7%——
    Property
    Strong growth in gross written premiums, driven by Project Heartland and New England strategies. Pricing was effectively flat to low negative single digits for renewals, with new business pricing up slightly year-over-year.
    		—21.3%——

    Operational metrics

    12
    Adjusted Net Income
    $33.5 millionup from $17.9 million in Q2 FY25
    Q2 FY26

    Driven by top line growth, improving margins, and continued strength in investment income.

    Adjusted Diluted EPS
    $0.67
    Q2 FY26

    Adjusted net income per diluted share.

    Operating Expense Ratio
    9.5%declined 2.9 points year-over-year
    Q2 FY26

    Improvement reflected earned premiums growing faster than operating expenses together with higher fee income.

    Policy Acquisition Costs
    17.9%declined from 18.5%
    Q2 FY26

    Continued shift in business mix towards the brokerage channel reduced policy acquisition costs, resulting in an overall economic benefit to margins.

    Loss Ratio
    58.5%up 0.5 percentage point year-over-year
    Q2 FY26

    Reflecting the continued shift in business towards the brokerage channel and lower catastrophe activity in prior year quarter.

    Fee Income
    $3.4 millioncompared to $1.5 million a year ago
    Q2 FY26

    Growth coming from standard policy fees introduced over the course of 2025.

    Realized and Unrealized Gains
    $18.6 million
    Q2 FY26

    Supported by strong results in utility and infrastructure portfolio.

    Effective Tax Rate
    20%
    Q2 FY26

    Bringing net income to stockholders to $33.5 million.

    Cash and Investments
    $1.2 billionincreased by $62.3 million from Q1
    Q2 FY26

    Reflecting strong operating cash flow.

    Paid to Incurred Ratio
    high 50s
    Q2 FY26

    Provided in response to an analyst question about paid loss number.

    Claims Team Headcount
    over 30
    Q2 FY26

    In-house claims team utilizing a sophisticated staffing model to stay ahead of expected claim counts.

    AI/Technology Adoption
    ~60%
    Q2 FY26

    Agentic AI used across functions, enabling faster and more efficient product development.

    Industry KPIs

    8
    MetricValueDetails
    Combined ratio85.9%%
    Capital returnsshares purchased
    Catastrophe losses4.3%% of net earned premiums
    Book value per share$13.86USD
    Net investment income$12.7 millionUSD
    Net premiums written earned23.4% (GWP); 30.8% (NWP); 30.9% (NEP)%
    Renewal rate change pricingeffectively flat, low negative single digits (property renewals); up slightly (new business pricing)%
    Prior year reserve development0.9%% of net earned premium

    Product announcements

    2
    ProductTypeDetails
    Architects and Engineer productlaunch
    Professional Liability and Management Liability productsexpansion

    Risks & headwinds

    2
    Competitive pressure in the E&S marketQ2 FY26 and ongoing

    Competitive pressure continued to intensify across portions of the E&S market.

    Mitigation: Differentiated positioning, ability to identify attractive market segments (small- and medium-sized), unique solutions, expanding distribution relationships, scalable operating platform.

    Loss ratio increase due to business mix shiftQ2 FY26

    Loss ratio up 0.5 percentage points year-over-year to 58.5%.

    Mitigation: Offset by reduction in policy acquisition costs (commission ratio lower) due to the same mix shift; no change in underlying loss picks by line of business and channel.

    What to watch in Q3 FY26

    4

    Gross Written Premiums growth vs. E&S market

    Q3 FY26
    Current23.4% GWP growth in Q2 FY26, outperforming E&S market contraction.
    Target>20 percentage points above E&S market growth

    Why it matters

    Verifies continued market share gains and effectiveness of growth strategies in a competitive E&S market.

    We expect to achieve further market share gains with gross written premiums growing more than 20 percentage points above the E&S market.

    Q&A highlights

    7

    Inquired about the breakdown of Q3 growth guidance between property and casualty and current pricing conditions in both segments.

    Management expects continued momentum in both property and casualty. Property pricing was flat to low negative single digits, while new business pricing was up slightly year-over-year. Growth is driven by unique product-centric regional strategies like Project Heartland and New England.

    “We are seeing a lot of momentum in property that is unusual in this market, but it is somewhat explainable by primarily our strategies.”

    asked by Elyse Greenspan · answered by Chris Schenk

    2 min read6 chapters

    Detailed Narrative

    01

    Record Performance & Market Outperformance

    Ategrity achieved record quarterly gross written premiums, underwriting income, and net income in Q2 FY26. This performance, including 23.4% GWP growth and an 85.9% combined ratio, significantly outpaced a contracting E&S industry, demonstrating the strength of its productionized underwriting platform and disciplined strategy execution.

    02

    Margin Expansion & Operational Efficiency

    The combined ratio improved 3 points year-over-year, primarily driven by a 2.9-point reduction in the operating expense ratio to 9.5% of net earned premiums. This efficiency gain reflects earned premiums growing faster than operating expenses and higher fee income, showcasing the scalability of the centralized underwriting platform.

    03

    Strategic Growth Drivers

    Growth was broad-based across casualty (up 24.7%) and property (up 21.3%), fueled by expanding distribution relationships, targeted regional strategies like Project Heartland and the New England strategy, and new product launches such as professional and management liability. The company focuses on small- and medium-sized market segments with less competition.

    04

    Technology and AI Integration

    Ategrity leverages a modular technology architecture and Agentic AI across functions from marketing to governance. This approach enabled the launch of a new architects and engineer product with an estimated 60% fewer resources, accelerating speed to market and contributing to one of the lowest underwriting operating expense ratios in its peer group.

    05

    Underwriting Discipline & Reserve Development

    The company maintains underwriting discipline by pricing business using an 18-month forward view of expected loss costs and applying specific, prescriptive rules for trickier casualty coverages. Favorable prior-year reserve development during the quarter, equal to 0.9% of net earned premiums, supported the view of consistent underwriting outcomes.

    06

    CFO Transition

    Neil Adler joined as Chief Financial Officer, succeeding a scheduled contract expiration. Mr. Adler has been involved with Ategrity since its founding and brings a focus on automation and streamlined processes to scale the finance department in line with the company's growth.

    AI-generated summary of the company’s earnings call. Not investment advice.