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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 69.8GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
49.5%
Sector: 8.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Ategrity Specialty Holdings LLC (ASIC) receives a "Hold" rating with a composite score of 52.2/100, ranked #559 out of 4446 stocks. Key factor scores: Quality 70/100, Value 72/100, Momentum 40/100. This is quantitative analysis only — not investment advice.
Ategrity Specialty Holdings LLC (ASIC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Ategrity Specialty Holdings LLC Do?
We are a profitable and growing specialty insurance company dedicated to providing excess and surplus (“E&S”) products to small to medium-sized businesses (“SMBs”) across the United States. We have built a proprietary underwriting platform that combines sophisticated data analytics with automated and streamlined processes to efficiently serve our clients and deliver long-term value to our stockholders. The SMB market is characterized by large volumes of small-sized policies, and we believe our competitive edge lies in our ability to offer consistent, high-speed, and low-touch interactions that our distribution partners value. This advantage stems from our technology-driven method of standardizing, simplifying, and automating our transaction process, which we call productionized underwriting. We target industry verticals where we have deep expertise and develop data-driven insights to gain a competitive advantage. We leverage our expertise and our efficient underwriting platform to deliver tailored insurance products and customized services that meet the needs of our distribution partners. We believe the universe of distributors in the SMB segment of the E&S market is rapidly shifting toward agents and brokers who were raised in the digital age. These digital-native and tech-savvy distribution partners expect real-time, frictionless insurance transactions that mirror the seamless experiences they encounter in their daily lives. In an industry where insurance applications are often submitted via email with slow response times, we have designed a technology-driven underwriting process that addresses our distribution partners’ demands for rapid, high-quality interactions. Our strong value proposition has contributed to a growing network of 512 distribution partners as of March 31, 2025, which provides us with increased transaction opportunities and diversified sources of business. Our fully integrated claims management function is designed to enable us to resolve claims efficiently and effectively. We take an active approach to risk management through real-time performance analytics, rigorous risk aggregation monitoring, and robust reinsurance protection aimed at minimizing volatility and generating consistent underwriting results. We have grown our business substantially while generating attractive underwriting results. For the three months ended March 31, 2025, we wrote $116.1 million in gross written premiums, an increase of $34.5 million, or 42.3% compared to the three months ended March 31, 2024. Our combined ratio for the three months ended March 31, 2025, was 90.9%, a decrease of 3.3% from the three months ended March 31, 2024. Our members’ equity at March 31, 2025, was $426.8 million, an increase of $28.5 million (7.2%) from December 31, 2024. For the twelve months ended March 31, 2025, our return on members’ equity was 12.6%. For the year ended December 31, 2024, we wrote $437.0 million in gross written premiums, representing a compound annual growth rate of 28.4% over the last two years. Our combined ratio for the year ended December 31, 2024, was 93.9%, a decrease of 3.6% from the year ended December 31, 2023. Our members’ equity at December 31, 2024, was $398.3 million, an increase of $76.6 million (23.8%) from December 31, 2023. We believe that our productionized underwriting capabilities will continue to drive enhanced profitability as we continue to scale our business. Our company’s mission is to transform the E&S marketplace for SMBs through the power of productionized underwriting with precision, simplicity, and efficiency. When we entered the E&S industry, we found what we believe to be an under-served and inefficient marketplace that was hindered by inconsistent and antiquated processes of legacy insurance carriers. We also believe that many distribution partners and their end-clients were struggling with slow response times, unpredictable underwriting capacity, and subpar pricing, which we believe make the market ripe for technology and efficiency-driven disruption. To address these challenges, we developed a technology-enabled underwriting process that we believe sets us apart in the E&S market. Our productionized underwriting approach combines rigorous technical underwriting with a highly efficient and centralized operating platform powered by advanced technology. This process begins with a deep understanding of our end-clients, the insurance policyholders. We intensely study the industry and geographical micro-segments in which our end-clients operate using sophisticated data analytics. We leverage these analytics to build quantitative risk models that shape our risk appetite and client targeting. Furthermore, we aim to eliminate unnecessary complexity by standardizing our processes and automating key underwriting tasks, such as submission intake, risk classification, pricing, and documentation. This allows our underwriters to focus on high-value underwriting tasks and make timely and accurate decisions in a uniform manner. For each individual transaction opportunity, our underwriting models efficiently determine which components of the process can be automated. For simpler products with clearly identified risk characteristics, we can execute the entire underwriting process without human intervention. We believe our productionized underwriting approach generates consistent, efficient, and scalable processes that allow us to deliver differentiated value to our distribution partners without compromising accuracy and profitability. Our location is in New York NY. Ategrity Specialty Holdings LLC (ASIC) is classified as a small-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO Justin Cohen and employs approximately 175 people, headquartered in NEW YORK, New York. With a market capitalization of $985M, ASIC is one of the notable companies in the Financials sector.
As of April 2026, Ategrity Specialty Holdings LLC receives a Hold rating with a composite score of 52.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.ASIC ranks #559 out of 4,446 stocks in our coverage universe. Within the Financials sector, Ategrity Specialty Holdings LLC ranks #265 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ASIC Stock Price and 52-Week Range
Ategrity Specialty Holdings LLC (ASIC) currently trades at $21.16. The 52-week high for ASIC is $25.30, which means the stock is currently trading -16.4% from its annual peak. The 52-week low is $16.35, putting the stock 29.4% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is ASIC Overvalued or Undervalued? — Valuation Analysis
Ategrity Specialty Holdings LLC (ASIC) carries a value factor score of 72/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 12.55x, compared to the Financials sector average of 15.79x — a discount of 21%. The price-to-book ratio stands at 1.65x, versus the sector average of 1.28x. The price-to-sales ratio is 0.60x, compared to 0.96x for the average Financials stock. On an enterprise value basis, ASIC trades at 2.65x EV/EBITDA, versus 3.41x for the sector.
Based on these multiples, Ategrity Specialty Holdings LLC appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Ategrity Specialty Holdings LLC (ASIC) earns a quality factor score of 70/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 49.5%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 20.6% versus the sector average of 1.2%.
The operating margin is 22.6% (sector: 22.0%). Net profit margin stands at 17.9%, versus 17.7% for the average Financials stock. The overall profitability profile is adequate, though there may be room for margin expansion.
ASIC Debt, Balance Sheet, and Financial Health
Ategrity Specialty Holdings LLC has a debt-to-equity ratio of 140.0%, compared to the Financials sector average of 121.5%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.72x, suggesting adequate working capital coverage. Cash and equivalents stand at $34M.
ASIC has a beta of 0.31, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Ategrity Specialty Holdings LLC is 66/100, reflecting average volatility within the normal range for its sector.
Ategrity Specialty Holdings LLC Revenue and Earnings History — Quarterly Trend
In TTM 2026, Ategrity Specialty Holdings LLC reported revenue of $424M and earnings per share (EPS) of $1.64. Net income for the quarter was $76M. Operating income came in at $96M.
In FY 2025, Ategrity Specialty Holdings LLC reported revenue of $424M and earnings per share (EPS) of $1.64. Net income for the quarter was $76M. Operating income came in at $96M.
In Q3 2025, Ategrity Specialty Holdings LLC reported revenue of $116M and earnings per share (EPS) of $0.47. Net income for the quarter was $24M. Operating income came in at $30M.
In Q2 2025, Ategrity Specialty Holdings LLC reported revenue of $102M and earnings per share (EPS) of $0.40. Net income for the quarter was $18M. Operating income came in at $22M.
Over the past 4 quarters, Ategrity Specialty Holdings LLC has demonstrated a growth trajectory, with revenue expanding from $102M to $424M. Investors analyzing ASIC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ASIC Dividend Yield and Income Analysis
Ategrity Specialty Holdings LLC (ASIC) does not currently pay a dividend. This is common among smaller companies in the Insurance industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Financials dividend stocks may want to explore other Financials stocks or use the stock screener to filter by dividend yield.
ASIC Momentum and Technical Analysis Profile
Ategrity Specialty Holdings LLC (ASIC) has a momentum factor score of 40/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 14/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
ASIC vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing ASIC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ASIC vs S&P 500 (SPY) comparison to assess how Ategrity Specialty Holdings LLC stacks up against the broader market across all factor dimensions.
ASIC Next Earnings Date
No upcoming earnings date has been announced for Ategrity Specialty Holdings LLC (ASIC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ASIC? — Investment Thesis Summary
Ategrity Specialty Holdings LLC presents a balanced picture with arguments on both sides. The quality score of 70/100 indicates above-average profitability and business fundamentals. The value score of 72/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 66/100) reduces downside risk.
In summary, Ategrity Specialty Holdings LLC (ASIC) earns a Hold rating with a composite score of 52.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ASIC stock.
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Institutional Research Dossier
Ategrity Specialty Holdings LLC (ASIC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Ategrity Specialty Holdings LLC (ASIC) receives a Hold rating, driven by a balanced assessment of its strong profitability and growth within the excess and surplus (E&S) insurance market, offset by concerns regarding its relatively short operating history and potential challenges in sustaining its rapid growth rate. While ASIC's technology-driven underwriting platform and impressive return on equity (ROE) are compelling, the Momentum and Investment scores from our proprietary quant model suggest caution. The current valuation appears fair relative to the sector, but the lack of free cash flow data and the company's limited track record warrant a neutral stance.
The key takeaway is that ASIC presents an intriguing opportunity within a niche insurance market, but investors should closely monitor its ability to maintain underwriting discipline and manage risk as it scales. The company's reliance on technology and data analytics for competitive advantage introduces both opportunities and vulnerabilities, requiring careful evaluation of its execution and adaptability in a dynamic market environment.
Business Strategy & Overview
Ategrity Specialty Holdings operates within the excess and surplus (E&S) insurance market, focusing on small to medium-sized businesses (SMBs) across the United States. The company's core strategy revolves around 'productionized underwriting,' a technology-driven approach that aims to streamline and automate the underwriting process. This involves leveraging data analytics to identify profitable industry verticals, building quantitative risk models, and standardizing underwriting tasks to improve efficiency and reduce response times. ASIC targets digital-native distribution partners who value seamless, real-time interactions, differentiating itself from traditional insurers with slower, more manual processes.
The company's revenue model is based on writing gross written premiums, with profitability derived from maintaining a low combined ratio, which measures underwriting profitability. ASIC's strategy emphasizes active risk management through real-time performance analytics, risk aggregation monitoring, and reinsurance protection. The company's growth is fueled by expanding its network of distribution partners and increasing the volume of policies written. ASIC's focus on SMBs within the E&S market allows it to target a segment often underserved by larger, more traditional insurers.
ASIC's competitive advantage lies in its technology-enabled underwriting platform, which allows it to offer faster and more efficient service to its distribution partners. This is particularly important in the rapidly evolving E&S market, where digital-native agents and brokers are increasingly demanding seamless, real-time interactions. The company's ability to standardize and automate underwriting tasks enables it to process a large volume of small-sized policies efficiently, which is a key differentiator in the SMB market.
The company's integrated claims management function is designed to resolve claims efficiently and effectively, contributing to its overall underwriting profitability. ASIC's active approach to risk management, including real-time performance analytics and robust reinsurance protection, aims to minimize volatility and generate consistent underwriting results. The company's location in New York, NY, provides access to a large pool of talent and resources, which supports its growth and innovation efforts.
Execution Benchmarks audit
Operating Margin
Operating efficiency
22.6%
Sector: 22.0%
IN LINE
Economic Moat Analysis
Ategrity Specialty Holdings possesses a narrow economic moat, primarily derived from a combination of intangible assets and cost advantages. The intangible assets stem from the proprietary data and analytics used in its 'productionized underwriting' platform. This platform allows ASIC to assess risk more accurately and efficiently than competitors relying on traditional underwriting methods. The data-driven insights provide a competitive edge in selecting profitable industry verticals and tailoring insurance products to meet the specific needs of SMBs.
The cost advantages arise from the automation and standardization of underwriting tasks. By streamlining processes and reducing manual intervention, ASIC can lower its operating expenses and offer competitive pricing to its distribution partners. This efficiency also allows the company to handle a higher volume of small-sized policies, which is a key advantage in the SMB market. The combination of data-driven insights and efficient operations creates a cost advantage that is difficult for competitors to replicate without significant investment in technology and data analytics.
However, the moat is narrow due to the relatively low barriers to entry in the E&S insurance market. While ASIC's technology-driven approach provides a competitive edge, other insurers can invest in similar technologies and develop their own data analytics capabilities. The company's reliance on distribution partners also creates a potential vulnerability, as these partners could switch to competitors offering better terms or services. The lack of strong brand recognition and customer loyalty further limits the moat's width.
The moat's sustainability depends on ASIC's ability to continuously innovate and improve its underwriting platform. The company must stay ahead of the curve in terms of technology and data analytics to maintain its competitive advantage. It also needs to strengthen its relationships with distribution partners and build a reputation for providing exceptional service. Failure to do so could erode its moat and make it more vulnerable to competition.
Financial Health & Profitability
Ategrity Specialty Holdings demonstrates strong financial health, characterized by robust revenue growth, attractive underwriting results, and a solid balance sheet. The company's gross written premiums have grown at a compound annual growth rate of 28.4% over the last two years, indicating strong demand for its products and services. The combined ratio of 90.9% for the three months ended March 31, 2025, and 93.9% for the year ended December 31, 2024, demonstrate effective underwriting discipline and risk management. A combined ratio below 100% indicates that the company is generating an underwriting profit.
The company's return on members' equity (ROE) of 12.6% for the twelve months ended March 31, 2025, is impressive and indicates efficient use of capital. The increase in members' equity from $398.3 million at December 31, 2023, to $426.8 million at March 31, 2025, reflects the company's profitability and its ability to generate value for its stakeholders. The current ratio of 1.72 indicates strong liquidity and the ability to meet its short-term obligations.
Compared to the financials sector, ASIC's P/E ratio of 11.8x is lower than the sector average of 15.5x, suggesting that the company may be undervalued relative to its peers. The EV/EBITDA ratio of 2.4x is also lower than the sector average of 3.5x, further supporting the undervaluation argument. However, ASIC's ROE of 49.5% significantly exceeds the sector average of 8.5%, indicating superior profitability. The operating margin of 22.6% is slightly above the sector average of 22.0%, while the net margin of 17.9% is comparable to the sector average of 17.8%.
The quarterly financial history reveals consistent revenue growth and profitability. Revenue increased from $101.78 million in Q2 FY2025 to $116.10 million in Q3 FY2025, while net income increased from $17.62 million to $23.62 million. The operating margin also improved from 21.9% to 25.6% during the same period. The lack of free cash flow data is a concern, as it limits the ability to assess the company's cash-generating capabilities. Further information on free cash flow would provide a more complete picture of the company's financial health.
Valuation Assessment
Ategrity Specialty Holdings' valuation presents a mixed picture. On the one hand, the company's P/E ratio of 11.8x and EV/EBITDA ratio of 2.4x are both significantly lower than the sector averages of 15.5x and 3.5x, respectively. This suggests that the stock may be undervalued relative to its peers. The high ROE of 49.5% further supports this argument, as it indicates superior profitability compared to the sector average of 8.5%. However, the lack of free cash flow data makes it difficult to assess the company's true valuation.
The company's rapid growth rate also needs to be considered. While the historical growth rate of 28.4% is impressive, it is unlikely to be sustainable in the long term. As the company scales, it will face increasing competition and regulatory scrutiny, which could slow down its growth. Therefore, a more conservative growth rate should be used when assessing the company's intrinsic value.
Given the limited track record and the lack of free cash flow data, it is difficult to determine a precise fair value for the stock. However, based on the available information, the current valuation appears to be fair. The stock is not significantly undervalued or overvalued, but rather trading at a reasonable multiple of its earnings. The Hold rating reflects this balanced assessment.
A more detailed valuation analysis would require additional information, such as projected free cash flows, a discount rate that reflects the company's risk profile, and a terminal growth rate. It would also be helpful to compare the company's valuation to that of other specialty insurance companies with similar growth rates and profitability. Without this information, it is difficult to make a definitive statement about the stock's valuation.
Risk & Uncertainty
Ategrity Specialty Holdings faces several specific risks that could impact its future performance. One of the primary risks is competition within the E&S insurance market. While the company's technology-driven underwriting platform provides a competitive edge, other insurers could invest in similar technologies and develop their own data analytics capabilities. This could erode ASIC's competitive advantage and put pressure on its pricing and profitability.
Another risk is the company's reliance on distribution partners. If these partners were to switch to competitors offering better terms or services, it could significantly impact ASIC's revenue and growth. The company needs to maintain strong relationships with its distribution partners and provide them with exceptional service to mitigate this risk. The shift towards digital-native distribution partners also introduces a risk, as their preferences and demands may evolve rapidly, requiring ASIC to continuously adapt its technology and services.
Regulatory risk is also a concern. The insurance industry is heavily regulated, and changes in regulations could impact ASIC's business model and profitability. The company needs to stay abreast of regulatory developments and ensure that it is in compliance with all applicable laws and regulations. The lack of a long operating history also introduces uncertainty, as the company has not yet been tested through a full economic cycle. This makes it difficult to assess its resilience and ability to manage risk in adverse market conditions.
Bulls Say / Bears Say
The Bull Case
BULL VIEWAtegrity's productionized underwriting platform gives it a significant cost advantage and allows it to efficiently serve the underserved SMB market in the E&S space.
BULL VIEWThe company's strong ROE and consistent underwriting profitability demonstrate its ability to generate attractive returns for its investors.
BULL VIEWASIC's focus on digital-native distribution partners positions it well to capitalize on the evolving landscape of the insurance industry.
The Bear Case
BEAR VIEWASIC's relatively short operating history and lack of free cash flow data make it difficult to assess its long-term sustainability and financial health.
BEAR VIEWThe E&S insurance market is highly competitive, and ASIC's moat is narrow, making it vulnerable to competition from larger, more established players.
BEAR VIEWThe company's reliance on technology introduces a risk of obsolescence, requiring continuous investment and innovation to maintain its competitive advantage.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score ASIC and 4,400+ other equities.
Ategrity Specialty Holdings LLC exhibits a 13% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
20.6%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
—
Sector: 0.0%
Operating Margin
Core business profitability
22.6%
Sector: 22.0%
Net Margin
Bottom-line profitability
17.9%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
