Ategrity Specialty Insurance Announces IPO
Ategrity Specialty Insurance Co. Holdings has filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC), according to a report from AM Best. Despite the IPO, the excess and surplus lines insurer will remain a controlled company under Zimmer Financial Services Group.
The company intends to use the proceeds from the offering to bolster its capitalization and financial flexibility. Ategrity has applied to list its shares on the New York Stock Exchange under the ticker symbol “ASIC.”
“We believe that our productionized underwriting capabilities will continue to drive enhanced profitability as we continue to scale our business,” Ategrity stated in its filing.
Zimmer Financial Services Group currently consolidates Ategrity in its financial statements and may maintain an ownership stake exceeding 80% to continue doing so. As part of the offering, Ategrity will enter a stockholders’ agreement giving Zimmer the right to nominate board and committee members, subject to certain ownership thresholds.
Expanding Operations and Market Presence
Ategrity operates on a surplus lines basis in 48 states and the District of Columbia. At the close of 2024, the company’s gross written premium was concentrated in these key markets:
- California: 21%
- Florida: 16.2%
- Texas: 12.8%
- New York: 6.4%
The insurer concentrates on commercial property, low-limit general liability and management, and professional liability products, with a focus on the real estate, hospitality, construction, and retail sectors.
Strong Financial Performance
Ategrity has demonstrated robust financial growth, with net income rising to $47.1 million in 2024, up from $10 million the previous year. Net premiums earned increased to $290.2 million from $231.5 million, while the combined ratio saw improvement, moving from 97.5 to 93.9. Total members’ equity grew to $398.3 million from $321.7 million.
Additionally, Ategrity has broadened its distribution network, expanding from 180 partners at the end of 2021 to 460 by the close of 2024.
The company says its underwriting approach aims to improve efficiency in the excess and surplus market by automating key processes, including submission intake, risk classification, pricing, and documentation.
Launched in 2018 with financial backing from Zimmer Partners, Ategrity received an additional $75 million in capital from Zimmer in 2022 to support new product development. The insurer’s operating entities currently hold a Best’s Financial Strength Rating of A- (Excellent).
As an emerging growth company, Ategrity is eligible for reduced reporting requirements. While the IPO signals plans for expansion, Ategrity is expected to remain under Zimmer’s control.
