Credit ratings agency AM Best has revised the outlook for Ategrity Specialty Insurance Company (ASIC) and its subsidiary Ategrity Specialty Insurance Limited (ASIL) to positive from stable, reflecting its “very strong” balance sheet backed by risk-adjusted capital.
Additionally, AM Best affirmed both companies’ financial strength ratings of A- (Excellent) and long-term issuer credit ratings (Long-Term ICR) of “a-” (Excellent).
Ategrity Specialty Insurance Company Holdings’ outlook was revised to positive from stable, with a long-term ICR of “bbb-” (good).
The rating also reflects Ategrity’s adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The firm covers U.S. excess and surplus business, focusing on small and medium-sized businesses with limited property catastrophe exposure. Ategrity and ASIC are located in Wilmington, USA, while ASIL is located in Hamilton, Bermuda.
AM Best believes Ategrity’s capital levels have kept pace with increases in premiums and loss volumes, driven by regular capital investments from its major shareholders and a successful initial public offering in June 2025.
Balance sheet strength is expected to stabilize at very strong levels based on operating results and the company’s capital management strategy.
Over the past three years, Ategrity management has executed a strategy to reduce business volatility and improve underwriting profitability, which was supported by good net investment income.
AM Best said: “The improvement in underwriting profitability and metrics is driven by a shift in the business mix. The expected improvement in the group’s operating profitability is dependent on management’s ability to continue executing on its business plan.”
“The group’s investment performance continues to increase as Ategrity’s portfolio of alternative investments continues to outperform comparable benchmarks.”
Ategrity began its excess and surplus business in 2018 through its U.S. operating subsidiary ASIC. The size of the group’s operations is considered limited.
However, the group has achieved significant improvements in business conditions over the past few years, which is reflected in the revised positive outlook.
