AM Best Revises Outlooks to Positive for Ategrity Specialty Insurance Company Holdings and Its Subsidiaries
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Excess and surplus lines refer to insurance coverage provided by specialized insurers for risks that standard insurers consider too unusual, high-risk, or hard to cover. These policies are important for investors because they help protect against rare or unexpected events that could impact financial stability or asset values, filling gaps where regular insurance options are unavailable.
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OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of Ategrity Specialty Insurance Company (ASIC) and its affiliate, Ategrity Specialty Insurance Limited (ASIL). Concurrently, AM Best has revised the outlook to positive from stable and affirmed the Long-Term ICR of “bbb-” (Good) of the holding company, Ategrity Specialty Insurance Company Holdings (Ategrity) [NYSE:ASIC]. Ategrity and ASIC are domiciled in Wilmington, DE, USA, while ASIL is domiciled in Hamilton, Bermuda.
The ratings reflect Ategrity’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
Ategrity maintains a very strong level of balance sheet strength. The company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is at the strongest level. Ategrity’s capital levels have kept pace with increases in premium and loss volume due to regular capital contributions from Ategrity’s majority owner and its successful initial public offering in June 2025. Balance sheet strength is projected to be maintained at the very strong level, based on operating results and the company’s capital management strategy.
Ategrity’s management was able to execute on its strategy to reduce volatility in its business and improve underwriting profitability over the past three years. The company writes U.S. excess and surplus lines of business, focused on small to medium-sized businesses with limited property catastrophe risk. Ategrity’s business mix has led to improved underwriting results in 2023, 2024 and through the third quarter of 2025, supplemented by favorable net investment income during these years. The improved underwriting profitability and metrics have been driven by a shift in business mix. Prospective improvement of the group’s operating profitability is dependent on management’s ability to continue to execute on its business plan. The group’s investment performance has been accretive to results as the alternative investment portfolio employed by Ategrity continues to outperform comparable benchmarks.
Ategrity, through its U.S. operating subsidiary, ASIC, began writing excess and surplus lines of business in 2018. The group’s business profile is considered limited. However, the group has made significant business profile improvements over the past few years, which is reflected in the outlook revisions to positive. This includes changing management and strategy, as well as utilizing innovative solutions, which has led to significantly improved underwriting performance over the past few years. The company continues to enhance its ERM program, which is expected to lead to continued stability in underwriting results.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
