Ategrity Specialty Holdings LLC Q4 FY2025 earnings call

• Record Q4 results: gross written premiums grew 30% Y/Y, 84.9% combined ratio (new record). • 3 key factors driving growth/margin expansion: identified market gaps in core specialties, grew distribution network to nearly 600 partners (90% Y/Y submission growth), engineered workflows/automation for speed with precision. • Property grew 18% Y/Y with strong sequential acceleration; casualty grew 38% Y/Y. • Developed AI road map over 2 years, investments operationalized. • 2026 initiatives: intensify regional strategies (Florida brokerage package, New England older buildings/mixed-use, Midwest Project Heartland branded product).

Gross written premiums grew 30% year-over-year. 84.9% combined ratio in Q4, new record. Gross written premiums: $30% Y/Y growth. Combined ratio: 84.9% (new record). Net written premiums increased 44%. Underwriting income $15.5M Y/Y up 160%. Loss ratio 57.1% (down 1.2 points Y/Y). Expense ratio improved 6.1 points to 27.8%. Net investment income $11.6M (up from $6.3M last year). Cash and investments increased by $45M to $1.1B. Book value increased by $26M, book value per share $12.78 (up 21% since IPO).

• Q1 '26 guidance: growth rate 20 percentage points above E&S industry growth, combined ratio just below 90%. • Announced $50M share repurchase program.

• Forward-looking statements subject to risks/uncertainties. • Risk factors in press release, final prospectus, SEC filings. • AI implementation and market competition could pose risks.

Q: Can you parse out rate environment in casualty and property relative to loss trends, and mix shift?

A: Chris Schenk discussed strong rating environment in casualty, differentiated play in property; mix expected to stay within 60%-70% casualty range.

Q: Quantify runway for Project Heartland distribution expansion?

A: Chris Schenk said Project Heartland has appointment phase nearing end, next phase on wallet share, huge growth runway.

Q: Evidence of new players in small commercial E&S markets?

A: Justin Cohen said no pressure from new players, metrics show gaining traction.

Q: Reserving methodology and conservatism?

A: Justin Cohen said reserves strong in property/casualty, confident in reserves, booked for late reporting.

Q: Share repurchase amount and capital?

A: Justin Cohen said $50M share repurchase, excess capital from past quarters positions well for buyback and growth.

Q: AI use in claims?

A: Justin Cohen said AI not meaningfully deployed in claims yet, Chris Schenk discussed back office as intake to prequalification, AI used for prequalification, next phase risk assessment on underwriter's desk.