Ategrity Specialty Insurance Co Holdings (ASIC) Business

Item 1. Business

Who we are

Ategrity Specialty Insurance Company Holdings is a specialty property and casualty insurance holding company dedicated exclusively to the excess and surplus (“E&S”) market for small to medium-sized businesses (“SMBs”) across the United States. Our underwriting operations are conducted through Ategrity Specialty Insurance Company, a Delaware-domiciled E&S insurer (“Ategrity Specialty”).

We underwrite small and medium-sized commercial risks across selected industry verticals, including Retail, Real Estate, Hospitality, and Construction. The SMB segment of the E&S market is characterized by a high volume of smaller-premium policies, where distribution partners expect speed, clarity, and consistency in the underwriting process. Our operating model uses a technology-driven method to standardize, simplify, and where appropriate, automate these transactions, which we call productionized underwriting. This method incorporates micro-segmentation, centralized underwriting governance, and automated workflows to promote consistent, disciplined execution across a high-volume of E&S transactions.

For the year ended December 31, 2025, we generated $581.5 million in gross written premiums and reported a combined ratio of 88.2%. As of December 31, 2025, stockholders’ equity was $614.3 million. Both Ategrity Specialty and Ategrity Specialty Insurance Limited (“Ategrity Limited”) hold an “A-” (Excellent) (Outlook Positive) financial strength rating from A.M. Best.

Our Market

We operate exclusively within the E&S market, a segment of the property and casualty insurance industry that provides coverage for risks that are typically unavailable in the admitted market. E&S carriers benefit from broad regulatory flexibility with respect to rate and form, which supports tailored product design and underwriting discipline.

Within the E&S market, we focus on SMB accounts. This segment is characterized by a high volume of smaller-premium policies and involves evaluating large numbers of submissions efficiently while applying consistent underwriting standards. Competition in this segment reflects responsiveness to distribution partners, pricing accuracy, and the ability to manage operational complexity at scale.

Productionized underwriting

We operate a productionized underwriting model that combines technical underwriting with a centralized operating platform. We organize risks into micro-segments based on operational characteristics, geography, and exposure attributes, and use data analytics to develop risk models that inform our risk selection approach and pricing considerations.

We standardize key underwriting tasks, such as submission intake, risk classification, pricing and documentation, and automate them where appropriate. This structure supports efficient workflow across underwriting processes and promotes uniform execution.

Products and Portfolio Composition

We offer commercial property and casualty. All of our gross written premiums for the years ended December 31, 2025 and 2024 were attributable to E&S products.

Our portfolio consists primarily of small- to medium-sized premium policies, including short-tail, lower-severity property exposures and shorter-tail, lower-limit, frequency-driven casualty risks.

For the year ended December 31, 2025, our gross written premiums were approximately 67.2% casualty and 32.8% property. Our business mix is diversified across products, policy sizes, and

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industry verticals. Our property business is focused on insureds with limited catastrophe exposure, reflecting our emphasis on lower-severity risks.

We operate in 48 states and the District of Columbia. For the year ended December 31, 2025, five states accounted for 5% or more of gross written premiums: California (18.9%), Florida (16.1%), Texas (10.1%), New York (8.3%) and Georgia (5.4%).

Distribution

We distribute our products exclusively through licensed surplus lines brokers and wholesale agents. Our distribution strategy is centered on providing a consistent and efficient experience to our partners across channels.

We market and distribute our products through two primary channels:

•Brokerage Channel, which serves medium-sized commercial risks evaluated by our underwriting team; and

•Small Business Channel, which serves smaller, more standardized risks through a streamlined, technology-enabled submission and quoting process.

We have a broad and diverse group of distribution partners, including national and regional wholesale intermediaries. The industry’s three largest wholesale distribution corporations represented 46.5% of gross written premiums for the year ended December 31, 2025.

For the year ended December 31, 2025, we received a high volume of submissions from our distribution partners across both channels.

Claims Management

We manage claims internally through a dedicated team of claims professionals responsible for evaluating coverage, assessing liability and damages, and resolving claims through negotiation or litigation management as appropriate. Our claims adjusters oversee the adjudication of claims from initial notice to final resolution, using external experts such as attorneys, field adjusters, or other specialists when needed.

From January 1, 2022 through December 31, 2025, our average closed claim amount was approximately $48 thousand, reflecting the smaller size and generally lower-severity profile of our insured accounts.

Our claims function collaborates with actuarial and underwriting teams on matters such as reserving practices and the identification of emerging issues.

Technology

Technology supports our underwriting, claims and portfolio management functions and is integrated into our productionized underwriting framework. We operate on a centralized, cloud-based platform that facilitates submission intake, pricing, policy administration, exposure management and reporting.

AtegrityOne is our modular policy administration system that supports rating models, forms management and workflow design. Its architecture allows us to implement product and pricing updates and introduce new verticals in a controlled manner.

Our underwriting technology supports both automated and underwriter-led processes. In our Small Business channel, our cloud-based engine enables automated eligibility screening, pricing and documentation generation for standardized risks. In our Brokerage channel, automation assists with tasks such as extracting and organizing information from broker submissions, applying defined scoring and classification logic, and routing submissions through defined workflows, while underwriting decisions remain subject to defined authority levels.

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Our systems capture underwriting and claims data in a centralized repository. This information is used by our underwriting, actuarial and risk management teams to evaluate portfolio performance, refine pricing approaches, assess exposure aggregations (including catastrophe-related exposures), and perform reserving analyses.

We maintain information security controls and cloud-based infrastructure designed to support system availability and data protection. Cybersecurity oversight is incorporated into our enterprise risk management framework and is further described in Item 1C, Cybersecurity.

We have implemented governance processes designed to oversee the development, deployment and monitoring of AI-enabled tools and data analytics used in our operations. These processes include protocols for new AI use cases, human review and oversight of underwriting and claims decisions informed by automated tools, model validation procedures, and periodic performance monitoring. Our governance framework is designed to promote appropriate controls, transparency and regulatory compliance in connection with AI-enabled processes; however, such controls may not prevent all errors, biases or unintended outcomes.

Reinsurance and Risk Management

We purchase reinsurance to manage exposure volatility and protect capital. Our program includes quota share, excess of loss and facultative reinsurance structures.

As of December 31, 2025, approximately 80% of Ategrity Specialty’s net written premium was ceded to Ategrity Limited under a quota share arrangement.

Key excess of loss protections include catastrophe and property per risk treaties that limit loss severity. As of December 31, 2025, our estimated net probable maximum loss for a 1-in-250 year event was $12 million, representing approximately 2.0% of stockholders’ equity.

All reinsurance recoverables were either from reinsurers rated “A-” (Excellent) or better by A.M. Best or were fully collateralized as of December 31, 2025.

Reserves

We establish reserves for unpaid losses and loss adjustment expenses for reported claims and for claims incurred but not reported using actuarial methodologies that incorporate historical data, exposure characteristics and relevant trends.

Our reserving framework includes quarterly actuarial analyses and an annual comprehensive reserve study, each of which is reviewed by our internal Quarterly Reserve Committee. Our appointed actuary issues the annual Statement of Actuarial Opinion, and we also engage an independent actuarial firm periodically to conduct supplementary analyses that provide additional review and benchmarking.

Investments

Our investment strategy is intended to prioritize capital preservation, maintain liquidity and broadly align with insurance liabilities.

As of December 31, 2025, total cash and invested assets were approximately $1.1 billion, primarily composed of investment-grade fixed maturities, loans to affiliates, short-term investments, cash equivalents and Utility & Infrastructure Investments.

The fixed income and short-term portfolio had a weighted average effective duration of approximately 3.8 years and an average credit rating of “A-”.

Our Board of Directors reviews and oversees investment policies and performance.

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Ratings

Ategrity Specialty and Ategrity Limited each hold a financial strength rating of “A-” (Excellent) (Outlook Positive) from A.M. Best. These ratings reflect A.M. Best’s assessment of our balance sheet strength, operating performance, business profile and enterprise risk management.

Competition

The specialty property and casualty industry is highly competitive. We compete with domestic and international insurers, managing general agents and program administrators. We may also compete with new market entrants in the future. Additionally, we may begin to compete against new competitors as we explore new verticals and business lines. Competition is based on many factors, including pricing, underwriting expertise, service quality, claims handling, reputation, financial strength and ratings.

Our primary competitors in the E&S market include Kinsale Capital Group, Inc., RLI Corp., Markel Corporation, and W.R. Berkley Corporation.

Human capital management

As of December 31, 2025, we had 203 employees across the underwriting, claims, technology, finance, actuarial, and legal functions. Our human capital practices are designed to attract and retain personnel with expertise relevant to our operations, including through role-specific training, professional development opportunities, and performance-based compensation and benefits consistent with market practices for specialty insurers.

Regulation

Ategrity Specialty is domiciled in Delaware and is subject to regulation and periodic examination by the Delaware Department of Insurance. Delaware insurance laws govern, among other matters, licensing, capital and surplus requirements, risk-based capital standards, permissible investments, underwriting and claims practices, reinsurance arrangements, affiliate transactions, statutory accounting and reporting, dividend and other distribution limitations, corporate governance, and market-conduct practices.

Delaware has adopted the National Association of Insurance Commissioners (“NAIC”) risk-based capital (“RBC”) framework, which establishes minimum capital requirements based on the insurer’s size and risk profile. An insurer’s RBC ratio is used by regulators to assess capital adequacy and may trigger supervisory action if it falls below prescribed thresholds. Ategrity Specialty is also subject to financial monitoring tools utilized by state regulators, including the NAIC Insurance Regulatory Information System (“IRIS”).

Our surplus lines business is subject to eligibility, reporting and related requirements in the states where policies are placed. These requirements include state-specific surplus lines eligibility standards, premium tax obligations, stamping office filings (where applicable), and broker compliance with applicable diligent search or exempt commercial purchaser requirements. We rely on licensed surplus lines brokers to comply with such requirements.

Ategrity Limited, our Bermuda-domiciled reinsurance subsidiary, is licensed and regulated by the Bermuda Monetary Authority, which administers solvency, capital and reporting requirements applicable to Bermuda-regulated insurers and reinsurers. Ategrity Limited is subject to Bermuda’s risk-based capital regime, statutory financial reporting requirements, liquidity standards and supervisory authority of the Bermuda Monetary Authority, including periodic examination and oversight.

As an insurance holding company, we are subject to Delaware’s insurance holding-company laws, including requirements to file holding-company reports and obtain approval for certain intercompany

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transactions. These laws include enterprise risk reporting requirements and restrictions on certain intercompany transactions, which in some cases require prior regulatory notice or approval. The payment of dividends or other distributions by Ategrity Specialty to the holding company is subject to statutory limitations and, in certain circumstances, regulatory approval. Each regulated entity must file statutory financial statements and comply with applicable supervisory and examination requirements.

Change-of-control transactions involving our regulated insurance subsidiaries are subject to prior regulatory approval. In addition, our operations are subject to other applicable federal and state laws relating to matters such as market conduct and trade practices, privacy, cybersecurity, anti-money laundering and sanctions compliance. Insurance regulation is subject to change, and we cannot predict the impact that future legislative, regulatory or supervisory developments may have on our business.

Available Information

Our website address is www.investors.ategrity.com. We provide free access to various reports that we file with, or furnish to, the SEC through our website, as soon as reasonably practicable after they have been filed or furnished. These reports include, but are not limited to, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports. Our SEC reports can also be accessed through the SEC's website at www.sec.gov. Also available on our website are printable versions of our Code of Business Conduct & Ethics and charters of the standing committee of our Board of Directors. Information on our website does not constitute part of this Annual Report on Form 10-K or any other report we file or furnish with the SEC.