Third Quarter 2026
Filed Oct 21, 2026Record low combined ratio of 84.7% and underwriting income growth of 83.7%
Gross written premiums increased 14.7%, underwriting income increased 83.7%, and the combined ratio improved to a record low 84.7%, although net income attributable to stockholders declined to $14.6 million because of net realized and unrealized investment losses.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 30, 2026 gross written premiumsGAAP | $165.0M | – | 14.7 % |
| Three months ended September 30, 2026 ceded written premiumsGAAP | (29,781) | – | – |
| Three months ended September 30, 2026 net written premiumsGAAP | $135.2M | – | – |
| Three months ended September 30, 2026 net earned premiumsGAAP | $127.1M | – | – |
| Three months ended September 30, 2026 fee incomeGAAP | 2,630 | – | – |
| Three months ended September 30, 2026 losses and loss adjustment expensesGAAP | 73,061 | – | – |
| Three months ended September 30, 2026 underwriting, acquisition and insurance expensesGAAP | 37,204 | – | – |
| Three months ended September 30, 2026 underwriting incomenon-GAAP | $19.50M | – | 83.7% |
| Three months ended September 30, 2026 net investment incomeGAAP | $13.05M | – | – |
| Three months ended September 30, 2026 net realized and unrealized gains (losses) on investmentsGAAP | −$17.25M | – | – |
| Three months ended September 30, 2026 interest expenseGAAP | 3 | – | – |
| Three months ended September 30, 2026 other incomeGAAP | 24 | – | – |
| Three months ended September 30, 2026 other expensesGAAP | 718 | – | – |
| Three months ended September 30, 2026 income before income taxesGAAP | 14,609 | – | – |
| Three months ended September 30, 2026 income tax expenseGAAP | 3,566 | – | – |
| Three months ended September 30, 2026 net incomeGAAP | $11.04M | – | – |
| Three months ended September 30, 2026 net income attributable to stockholdersGAAP | $14.58M | – | – |
| Three months ended September 30, 2026 adjusted net income attributable to stockholdersnon-GAAP | $14.66M | – | – |
| Three months ended September 30, 2026 loss ratioother | 57.5 % | – | decreased by 2.5 percentage points |
| Three months ended September 30, 2026 expense ratioother | 27.2 % | – | – |
| Three months ended September 30, 2026 combined ratioother | 84.7 % | – | – |
| Three months ended September 30, 2026 return on stockholders' equityGAAP | 8.8 % | – | – |
| Three months ended September 30, 2026 adjusted return on stockholders' equitynon-GAAP | 8.9 % | – | – |
| Three months ended September 30, 2026 diluted earnings per shareGAAP | $ 0.29 | – | – |
| Three months ended September 30, 2026 adjusted diluted earnings per sharenon-GAAP | $ 0.29 | – | – |
| Nine months ended September 30, 2026 gross written premiumsGAAP | $514.7M | – | 20.4 % |
| Nine months ended September 30, 2026 net written premiumsGAAP | $407.4M | – | – |
| Nine months ended September 30, 2026 net earned premiumsGAAP | $346.1M | – | – |
| Nine months ended September 30, 2026 underwriting incomenon-GAAP | $48.82M | – | – |
| Nine months ended September 30, 2026 net investment incomeGAAP | $37.76M | – | – |
| Nine months ended September 30, 2026 net realized and unrealized gains (losses) on investmentsGAAP | $10.81M | – | – |
| Nine months ended September 30, 2026 net income attributable to stockholdersGAAP | $73.49M | – | – |
| Nine months ended September 30, 2026 adjusted net income attributable to stockholdersnon-GAAP | $73.81M | – | – |
| Nine months ended September 30, 2026 loss ratioother | 58.2 % | – | – |
| Nine months ended September 30, 2026 expense ratioother | 27.7 % | – | – |
| Nine months ended September 30, 2026 combined ratioother | 85.9 % | – | – |
| Nine months ended September 30, 2026 adjusted return on stockholders' equitynon-GAAP | 15.5 % | – | – |
| Nine months ended September 30, 2026 diluted earnings per shareGAAP | $ 1.47 | – | – |
| Nine months ended September 30, 2026 adjusted diluted earnings per sharenon-GAAP | $ 1.48 | – | – |
| Three months ended September 30, 2026 total revenuesGAAP | 125,595 | – | – |
| Three months ended September 30, 2026 total expensesGAAP | 110,986 | – | – |
| September 30, 2026 book value per shareGAAP | $13.72 per share | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Casualty gross written premiums, three months ended September 30, 2026Reflecting the Company’s strategic focus on broadening casualty-related products and verticals. | $108.8M | – | 10.0 % |
| Property gross written premiums, three months ended September 30, 2026Supported by growth in lower-risk geographies, including the Midwest and New England. | $56.23M | – | 25.0 % |
| Casualty gross written premiums, nine months ended September 30, 2026The filing identifies a strategic focus on broadening casualty-related products and verticals. | $346.9M | – | 20.4 % |
| Property gross written premiums, nine months ended September 30, 2026The filing identifies growth in lower-risk geographies, including the Midwest and New England. | $167.8M | – | 20.3 % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
What drove it
- Gross written premiums increased 14.7% compared to the prior-year period, driven by execution of growth initiatives and increased engagement across the expanding distribution network.
- Property gross written premiums increased 25.0% year-over-year, supported by growth in lower-risk geographies, including the Midwest and New England.
- The combined ratio improved through improvement in both the loss and expense ratios.
- Operating expenses, net of fee income, decreased as a percentage of net earned premiums by 0.8 percentage points to 10.0%, reflecting emerging scale benefits of the centralized model.
- Policy acquisition costs decreased by 0.7 percentage points to 17.2% of net earned premiums due to a favorable shift in business mix.
- The Company launched four new specialty products: Energy, Environmental Liability, Life Sciences, and Sports & Entertainment.
Concerns
- Net income attributable to stockholders was $14.6 million, or $0.29 per diluted share, compared to $22.7 million, or $0.45 per diluted share, in the prior-year period.
- Net realized and unrealized gains (losses) on investments were $ (17,249) for the three months ended September 30, 2026, compared to $ 9,179 in the prior-year period.
- Adjusted return on stockholders' equity was 8.9 % for the three months ended September 30, 2026, compared to 15.9 % in the prior-year period.
- Cash and cash equivalents were $ 13,614 at September 30, 2026, compared to $ 29,721 at December 31, 2025.
What to watch
- Whether the 25.0 % growth in Property gross written premiums and 10.0 % growth in Casualty gross written premiums continue.
- Loss ratio performance following the quarter's 57.5 % result and management's comments on rate increases in new Casualty business.
- Expense leverage and the continuation of the 27.2 % expense ratio.
- The earnings impact of net realized and unrealized gains (losses) on investments.
- Execution on the newly launched Energy, Environmental Liability, Life Sciences, and Sports & Entertainment products and deployment of the next-generation underwriting platform.
Balance sheet and cash flow
- Cash and cash equivalents were $ 13,614 at September 30, 2026, compared to $ 29,721 at December 31, 2025.
- Total invested assets were $ 1,228,953 at September 30, 2026, compared to $ 1,075,308 at December 31, 2025.
- Total assets were $ 1,676,365 at September 30, 2026, compared to $ 1,474,313 at December 31, 2025.
- Reserves for unpaid losses and loss adjustment expenses were 619,405 at September 30, 2026, compared to 502,248 at December 31, 2025.
- Unearned premiums were 338,361 at September 30, 2026, compared to 281,864 at December 31, 2025.
- Total liabilities were 1,016,271 at September 30, 2026, compared to 859,454 at December 31, 2025.
- Total stockholders' equity was 657,647 at September 30, 2026, compared to 614,309 at December 31, 2025.
Analysis
Ategrity reported strong underwriting execution in the third quarter. Gross written premiums increased 14.7% to $ 165,021, with Property gross written premiums increasing 25.0 % to $ 56,230 and Casualty gross written premiums increasing 10.0 % to $ 108,791. Management attributed growth to its initiatives and expanded distribution engagement, while Property benefited from lower-risk geographies including the Midwest and New England.
Underwriting profitability improved substantially. Underwriting income increased 83.7% to $ 19,504 from $ 10,620, while the combined ratio improved to 84.7 % from 88.7 %. The loss ratio declined to 57.5 % from 60.0 %, and the expense ratio declined to 27.2 % from 28.7 %. Operating expenses, net of fee income, were 10.0 % of net earned premiums versus 10.8 %, and policy acquisition costs were 17.2 % versus 17.9 %, which the company linked to centralized-model scale benefits and a favorable shift in business mix.
Reported earnings were lower despite the stronger underwriting result. Net income attributable to stockholders was $ 14,577, or $ 0.29 per diluted share, compared with $ 22,664, or $ 0.45 per diluted share. The principal reported swing was net realized and unrealized gains (losses) on investments of $ (17,249), compared with gains of $ 9,179 in the prior-year period. Adjusted net income attributable to stockholders was $ 14,665, versus $ 22,828, and adjusted return on stockholders' equity was 8.9 % versus 15.9 %.
The nine-month results show sustained underwriting and premium momentum. Gross written premiums were $ 514,710, up 20.4 %, underwriting income was $ 48,816 versus $ 27,345, and the combined ratio was 85.9 % versus 89.4 %. Net income attributable to stockholders increased to $ 73,494 from $ 48,747, while adjusted diluted earnings per share increased to $ 1.48 from $ 1.09.
The balance sheet showed total stockholders' equity of 657,647 at September 30, 2026, compared with 614,309 at December 31, 2025, while total invested assets increased to $ 1,228,953 from $ 1,075,308. Cash and cash equivalents declined to $ 13,614 from $ 29,721. The release provided no forward financial guidance, capital-return announcement, or operating and free cash flow figures. Investors will focus on whether the company sustains its underwriting margin, premium growth, and expense leverage as it expands its product set and underwriting platform.
Management, verbatim
Ategrity delivered an exceptional quarter of underwriting performance, achieving a record low combined ratio of 84.7% and underwriting income growth of 83.7%. Business momentum was strong, with submissions growing 30% and gross written premiums increasing approximately 15%, well ahead of industry estimates of E&S premium growth.
Justin Cohen, Chief Executive Officer
We delivered the lowest combined ratio in the company’s history and continued to gain market share across both Property and Casualty.
Chris Schenk, President and Chief Underwriting Officer
Not in the filing
stated, not guessed- Forward financial guidance
- Prior-release outlook for comparison
- CFO commentary
- Operating cash flow
- Free cash flow
- Capital return information, including share repurchases and dividends
- Debt balance
- Quarter-over-quarter comparisons for reported operating metrics
- Gross margin, which is not reported for this insurance company
- Full balance-sheet and cash-flow metric detail beyond the selected balance-sheet items included
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.