Ategrity Specialty Q1 2026 Earnings Report

Ategrity Specialty EPS Results

• Actual EPS: $0.51
• Consensus EPS: $0.40
• Beat/Miss: Beat by +$0.11
• One Year Ago EPS: N/A

Ategrity Specialty Revenue Results

• Actual Revenue: $128.96 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Ategrity Specialty Announcement Details

• Quarter: Q1 2026
• Date: 4/29/2026
• Time: After Market Closes
• Conference Call Date: Wednesday, April 29, 2026
• Conference Call Time: 5:00PM ET

Ategrity Specialty (NYSE:ASIC) is a specialty insurance company that provides customized property and casualty coverage for complex, unusual or difficult-to-place risks. The company operates primarily in the excess and surplus lines market, where insurance products are tailored for businesses and exposures that may not fit standard policies.

Its offerings include specialty commercial insurance solutions across areas such as property, casualty, professional liability and other complex risks. Ategrity distributes its products through wholesale insurance brokers and works with brokers and policyholders to structure coverage for specialized industries and situations.

The company serves customers primarily in the United States. Ategrity Specialty was established to focus on underwriting specialty risks and building a flexible platform for brokers seeking customized insurance solutions.

Ategrity Specialty Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Ategrity reported a strong quarter with adjusted net income of $25.6M, gross written premiums up 23.1%, and a combined ratio of 87.4%, all beating guidance.
• Positive Sentiment: The company is showing operating leverage — the expense ratio improved 2.5 percentage points to 28.6% as earned premium growth outpaced expenses, while management is investing in automation and AI to drive further efficiency.
• Positive Sentiment: Management launched targeted regional strategies in Texas, Florida, and New England, focused on small- and middle-market verticals and city-level playbooks to capture less commoditized submission flows and improve long-term renewal value.
• Neutral Sentiment: Competitive pressure is intensifying in parts of the E&S market (notably cat-exposed and larger accounts); Ategrity says it deliberately avoided pressured segments, maintained conservative reserving (0.5% favorable development this quarter), and raised net retention after stepping back from a casualty quota share.
• Positive Sentiment: Solid capital and forward outlook — cash and investments rose to $1.15B, book value per share reached $13.13 (up 24% since IPO), and Q2 guidance targets direct written premium growth ~20 percentage points above the E&S market with a combined ratio in the 87s.

Presentation

[Operator]

Good afternoon, everyone, and thank you for joining us today for Ategrity 1st quarter fiscal year 2026 earnings results conference call. Speaking today are Justin Cohen, Chief Executive Officer, Chris Schenk, President and Chief Underwriting Officer, and Neelam Patel, Chief Financial Officer. After Justin, Chris, and Neelam have made their formal remarks, we will open the call to questions. All lines have been placed on mute to prevent any background noise. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star followed by number one again. Thank you.

[Operator]

Before we begin, I would like to mention that certain matters discussed in today's conference call are forward-looking statements relating to future events, management's plans and objectives for the business, and the future financial performance of the company that are subject to risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. The risk factors that may affect results are referred to in our press release issued today, our final prospectus and other filings filed with the SEC. We do not undertake any obligation to update the forward-looking statements made today. Finally, the speakers may refer to certain adjusted or non-GAAP financial measures on this call. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is also available in our press release issued today. A copy of which may be obtained by visiting the investor relations website at investors.ategrity.com.

[Operator]

I will now turn the call over to Justin.

[Justin Cohen, CEO at Ategrity]

Good evening. Thank you all for joining Ategrity first quarter earnings call. This is Justin Cohen, and I'm joined today by Chris Schenk, our President and Chief Underwriting Officer, and Neelam Patel, our CFO. Ategrity delivered another quarter of record earnings, generating outstanding margins while gaining market share. We produced a combined ratio of 87.4% and grew gross written premiums by 23.1% in an industry that was relatively flat, with both metrics better than guidance. We are winning by identifying underserved segments, building solutions that give our distribution partners an advantage, and improving the quality and renewability of our portfolio. While competition is increasing, we are defining distinct markets where we can compete on our own terms.

[Justin Cohen, CEO at Ategrity]

This quarter, we extended that momentum by launching several new strategic initiatives, including new regional strategies in Texas, Florida, and New England, while maintaining strict technical rigor in risk selection and pricing. We will discuss these initiatives in more detail later in the call. As our footprint expands, we are demonstrating operating leverage. Our expense ratio improved 2.5 percentage points year-over-year as earned premium growth outpaced expenses. We continue to optimize our business mix and leverage our centralized underwriting model to improve profitability and lower unit costs. At the same time, we are investing in the business, both to support our growth initiatives and to advance automation and AI across the organization. Turning to the market. Competitive pressure continued to intensify in parts of the E&S market this quarter, but its impact on our business remained limited.

[Justin Cohen, CEO at Ategrity]

By focusing on small and medium-sized businesses and delivering differentiated solutions, we continue to operate outside the more commoditized parts of the market. We are seeing this play out consistently across the portfolio, reinforcing our confidence that we can continue to build profitable market share. With that, I'll turn it over to Neelam to review our financials, followed by Chris to discuss our underwriting performance and go-to-market strategy.

[Neelam Patel, CFO at Ategrity]

Thanks, Justin. We delivered another strong quarter with adjusted net income of $25.6 million, up from $8.5 million in the same quarter last year, driven by top-line growth, improving margins, and continued strength in our investment income. Gross written premiums were up 23% in the quarter and growth was broad-based. Casualty premiums grew 27% and property premiums grew 13%. Net written premiums increased 32%, which reflects higher retention year-over-year, while net earned premiums were up by 34%. Fee income was $2.2 million compared to $0.6 million a year ago, reflecting standard policy fees introduced over the course of 2025. Our underwriting income for the quarter was $13.3 million, up 87% year-over-year.

[Neelam Patel, CFO at Ategrity]

That translates into a combined ratio of 87.4% compared to 90.9% last year due to reductions in both our loss and expense ratio. Our loss ratio came in at 58.8%, down one point year-over-year, driven by strong underlying results in our property business. We had favorable development this period equal to 0.5% of net earned premium. Catastrophe losses were 4% of net earned premium, down from 6.2% last year due to very few cat events in the first quarter compared to the prior year where we had modest losses from California wildfires. On expenses, the overall expense ratio improved 2.5 points to 28.6%. Operating expense was 10.9% of net earned premiums, down 1.4 points year-over-year.

[Neelam Patel, CFO at Ategrity]

That improvement was driven by earned premiums growing faster than operating expenses along with the benefit of higher fee income. Policy acquisition costs as a percentage of net earned premiums declined to 17.6% from 18.8%. The improvement was primarily mix-driven as growth has been concentrated in lines of business carrying lower acquisition costs and higher ceding commissions. Moving on to investment results. Net investment income was $12 million, up from $7.9 million last year, reflecting a larger investment portfolio. Realized and unrealized gains were $9.5 million, supported by strong results in our utility and infrastructure portfolio. Our effective tax rate was 20.6%, bringing the net income to $25.5 million. Adjusted net income was $25.6 million, or $0.51 per diluted share.

[Neelam Patel, CFO at Ategrity]

Turning to the balance sheet, cash and investments increased by $42 million from the fourth quarter to $1.15 billion, reflecting strong operating cash flow. Book value increased by $17 million, driven by retained earnings, offset by a decrease in AOCI. Our book value per share ended the quarter at $13.13, up 24% since the IPO. Overall, the quarter reflects strong growth, underwriting discipline, and increased operating leverage. With that, I'll turn it over to Chris to discuss underwriting and operating performance.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

Thanks, Neelam. Last quarter, we described our business as having multiple differentiated pathways for growth and how that has allowed us to operate independently of market cycles. This quarter is another validation of that model. In a competitive environment, Ategrity delivered another record quarter with all of our key metrics trending favorably. Top line growth of 23.1% with more than 50% coming from strategies unique to us. Expense ratio decline, even as we continued investing in production capacity, technology, marketing, and partnership management. Rate change remained positive. Cost of product indicators continued to track favorably. We are succeeding because our model is built on two key principles, a long-term view of customer value and a deliberate approach to creating new markets for growth. These are uncommon in E&S. At a fundamental level, all carriers operate within the same growth equation, renewal contribution plus new business production.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

These are driven by the same inputs. What is your renewal base? What is your retention ratio? Average premium, submission growth, quote ratio, and bind ratio. The difference in carrier results is driven by which levers they can move and which levers they're willing to move. For us, what we adjust is driven by our view of risk-taking, and that long-term view is measured in terms of customer lifetime value. For several years, we have optimized the inputs that matter to us, and as the market shifted, these became a clear structural advantage. On renewal inputs, since 2021, we have focused on writing durable, sticky business. That showed up this quarter in a record renewal base and our highest retention since going public. We optimize our retention rate through targeted rate actions while maintaining positive rate across the portfolio.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

On new business, the levers we can actively manage are submission growth, quote production, and average premium. Submission growth was strong. This was driven by our distribution investments as well as our strategic initiatives. Quote production reached an all-time high, supported by the submission volume as well as the quality of those submissions. Our investments in AI and our operating model allowed us to process that volume efficiently while maintaining fast turnaround. Shifting to conversion. Conversion moderated modestly, but that was expected. Conversion is often the least controllable lever for a technical underwriting organization. We were able to win at a higher rate in areas where we have a regional strategy. Finally, average premium. As the competition intensified in larger accounts, we leaned into small and middle market risk in our core verticals where precision, speed, and consistency matters most.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

Those dynamics combined improved the overall quality and renewability of the portfolio. Our results this quarter is straightforward. We retained more of what we wanted. We added new business with higher expected lifetime value. Our model only works if we acquire business on the right terms, which is why we continue to build targeted growth pathways that position us where competition is less aggressive. This quarter, we launched three new regional strategies in areas with attractive economics and lower competition. Let me take you through how we did this. While headlines suggest that the E&S market is losing share to admitted carriers, the reality is there's a two-way flow, and we are focused on the inflows. Ultimately, there are 50 state-level markets, each with its own distinct dynamics and even more localized submarkets beneath that. These locations are constant, and our advantage is identifying them early.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

To be clear, what we're doing goes beyond simply tracking state-level trends. We analyze municipal level economic, legal, and policy trends. We look at submission flows and loss experience. We even look at admitted market filings to pinpoint opportunity. That work drove targeted strategies in Texas, New England, and Florida in the last quarter. Those strategies are focused at a city and even at a neighborhood level. For example, along the I-10 corridor in Texas, we have seen wholesale trade moving into the E&S space. While in Springfield, Massachusetts, older mixed-use properties are flowing into the market. We have built strategies around these specific profiles and we are offering solutions. Furthermore, we equip our partners with the insights through interactive city guides and targeted marketing, and abling them to source the business more effectively. In doing so, we're establishing ourselves as the go-to market for these risks.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

This will in turn drive future submission growth, provide offsets should there be any declines in conversion rates, and it will allow us to win on our terms. Finally, this will all feed back into our future renewal base. This is how our differentiated growth strategies translate into above-market performance. Combined with our focus on customer lifetime value, they create a compounding growth model while preserving underwriting discipline, and this ultimately positions us for superior results going forward. With that, I'll turn it back to Justin.

[Justin Cohen, CEO at Ategrity]

Thanks, Chris. Our model is standing out in an increasingly competitive market as we have built a repeatable advantage and are executing against it with discipline. Turning to our outlook, our top-line guidance for the second quarter of 2026 remains consistent with last quarter. We expect direct written premium growth of approximately 20 percentage points above the E&S market, reflecting continued market share gains and the strength of our model. From an underwriting margin perspective, we expect a combined ratio in the 87s, representing continued year-over-year improvement. We thank you for your time listening. Operator, can you please open the line for questions?

[Operator]

We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Our first question comes from the line of Elyse Greenspan with Wells Fargo. Your line is now open. Please go ahead.

[Elyse Greenspan, Managing Director at Wells Fargo]

Hi, thanks. Good evening. I was hoping, you know, just going back, I guess, tying it a little to your growth outlook, if you could just give us a sense when you think you're going to be 20% above, I guess, the industry for the second quarter. What are you thinking about just in terms of property, versus casualty top line growth?

[Justin Cohen, CEO at Ategrity]

Thanks, Elyse, and good evening. At this stage, we're not breaking out the growth by property and casualty. Although what I would say is that we do believe that there is an opportunity in the second quarter for property to accelerate a little bit compared to the first quarter.

[Elyse Greenspan, Managing Director at Wells Fargo]

If that's the case, I guess, what are you guys seeing from a pricing? Sorry, go ahead.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

Yeah. The catalyst for growth, as we mentioned, are the regional strategies and our, those are all packaged products, that alone should give you a signal in terms of how they will move.

[Elyse Greenspan, Managing Director at Wells Fargo]

Okay, that's helpful. What are you seeing, I guess, when we, you know, we've heard of a lot of just aggressive, you know, pretty substantial price cuts on the property side within the E&S market. You know, what are you guys seeing from a from a pricing perspective both, you know, in property, you know, as well as within casualty?

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

There's two dynamics. There's cat property, where there's very aggressive competition. Those tend to be larger accounts also. We are not in that space. That's not core to us. We have not observed, you know, those dynamics as severely as our peers have. When it comes to just large non-cat accounts, we did see some more pressure there, and we chose to walk away because the rates were not right. We had more than enough opportunities in small and medium to compensate.

[Elyse Greenspan, Managing Director at Wells Fargo]

Okay, thanks. Then I think you guys said there was half a point of, I believe it was favorable development for the quarter. What drove that? Just, you know, some color on lines and accident years.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

Yep. Elyse, if you may recall from the last earnings call, we talked about how we have been very conservative in recent years on both property and casualty. In particular, we spoke about how property we were booking at a prudent accident year ratio, current accident year ratio, even though we hadn't quite seen the losses come through. As we went through this quarter, that continued, so we haven't seen that development that we expected, and even into this quarter as well, that trend continues. We think we're very prudently reserved there, and that this quarter was a release of some of those reserves in property 2025.

[Elyse Greenspan, Managing Director at Wells Fargo]

Okay. Thank you.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

Okay. Thanks, Elyse.

[Operator]

Our next question comes from the line of Pablo Singzon with JPMorgan. Your line is now open. Please go ahead.

[Pablo Singzon, Executive Director at JPMorgan]

Hi. Thank you. Your attritional loss ratio, I think, was up year-over-year. Then I guess if you take a step back, you know, and look at it on an annual basis, it seems like it's been going up as well, and I assume that's mainly mix. I was wondering if you'd talk to what's going on beneath the surface there. Thanks.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

Yep. We have not changed our underlying liability loss picks, so there is a component of that that is mix. The other component is that, again, in this year, we are booking our attritional property in a conservative way, relative to last year and especially relative to the losses that emerged in the first quarter, that have actually emerged in the first quarter.

[Pablo Singzon, Executive Director at JPMorgan]

Makes sense. Then second question on reinsurance retention. That stepped up year-over-year as you sort of had communicated before. How will that ratio look for the balance of the year, and is there more appetite to bring it up in subsequent years? Thanks.

[Justin Cohen, CEO at Ategrity]

Yes. This year should be relatively consistent with regard to reinsurance. We had stopped or non-renewed a casualty quota share formally this year. We had done a half step in the beginning of 2025 and a half step in 2026. What you've seen in the first quarter is relatively consistent. There is some mix amongst quarters because there's more property in some quarters than others, but this is a good benchmark.

[Pablo Singzon, Executive Director at JPMorgan]

Thanks, Justin.

[Justin Cohen, CEO at Ategrity]

Great.

[Operator]

Our next question comes from the line of Andrew Kligerman with TD Cowen. Your line is now open. Please go ahead.

[Justin Cohen, CEO at Ategrity]

Hi, Andrew.

[Andrew Kligerman, Managing Director of Insurance at TD Cowen]

How are you? I'd like to get a sense of pricing a little more granularly. I know Elyse was asking, but on the property that you are writing, and I suspect that's a lot of the smaller property accounts as well as casualty, could you talk about the rate that you're getting there?

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

Yeah. As part of our renewal playbook, we sought to, you know, we managed the lifetime value. So we actually had accounts that performed really well and we, you know, we gave back some rates there, as I said on the call. Overall, we had net positive rate change. I, in terms of what we're seeing on new business, there is the pressure on the cat-exposed business. There's pressure on, you know, business in certain parts of Texas, certain parts of Florida. We have a regional strategy for Texas and Florida. Where we are, there is less competition. Most of the market is competing for biz, you know, and competing on price in Houston and Galveston.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

We are in Laredo and Waco and El Paso and San Antonio. Those are, you know, it's a different risk profile and also smaller markets. That's really what is driving the new business growth. We as a result, new business rate levels, are, you know, slightly above our, what we would expect if not flat.

[Andrew Kligerman, Managing Director of Insurance at TD Cowen]

Got it. That was helpful. With regard to those regional strategies, and that was an interesting comment, Chris, about being in some of the smaller markets in Texas, for example, could you elaborate a little more on what industries you're looking for with these smaller businesses and in smaller markets?

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

Yep. The binding constraint here is that we do not go beyond our core verticals as we go into a region and build our playbook. So we look for opportunities but in our core verticals, which we've talked about in the past. They're constructions, hotel, motels, restaurants, retail, residential real estate. We are still sticking to our core verticals. We have some emerging verticals like wholesale trade, which we do in small business, and we're now expanding into middle market. That is I mentioned that one on the call. A lot of that is emerging in Texas. In addition, we have mixed use retail.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

Those are, you know, effectively occupancies that are, you know, a little bit more complex because you have multiple types of businesses on the first floor of a building with an apartment building with apartments above. So that type of mixed occupancy is something that you need specialized knowledge for, right? We are a restaurant and a retail on the first floor is something we can figure out. Those are types of classes, though we are not deviating from our core specialist classes because, in fact, it's the specialized knowledge that makes the difference.

[Andrew Kligerman, Managing Director of Insurance at TD Cowen]

That sounds very thoughtful. If I could sneak one last one in. With the policy acquisition costs at $17.6 and the operating expense at $10.9, it, you know, just given the rationale that you provided, these seem like sustainable numbers. 28.6% on the expense ratio seems like a decent run rate. Am I thinking about it right?

[Justin Cohen, CEO at Ategrity]

Andrew, I think that's right. The 76 and the acquisition cost is a strong ratio, and it's been going down because we've been mixing into brokerage, which has lower commissions. There will be a very, very modest upward trend there in terms, one, as the earning of the ceding commissions on the quota share go away, but that will be very modest. We still do believe we have meaningful opportunity on the expense ratio over time because we have this scalable model.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

Yep, we have talked about AI, we've talked about technology that is in development right now. We, you know, we have a number of solutions that are in pilot phase, as those get fully implemented, they will provide for further leverage. As we have been developing those, you know, we are doing them in a relatively cost-effective way. So we're not building that, you know, legacy tech debt, you know, as, you know, which one might assume based on, you know, what the historic cost around these types of solutions might have been.

[Andrew Kligerman, Managing Director of Insurance at TD Cowen]

Excellent. Thank you.

[Justin Cohen, CEO at Ategrity]

Yeah. Thanks, Andrew.

[Operator]

Our next question comes from the line of Alex Scott with Barclays. Your line is now open. Please go ahead.

[Alex Scott, Analyst at Barclays]

Hi to you. First one is on distribution. Can you talk me through sort of the timing of when you launched some of these new initiatives like the Texas-based initiative in New England and is that, are we starting to get new business coming through from that? Are we still in a phase where we're kind of building out distribution? How are, if we are building out distribution still, like, how does that roll in over the next 12 months?

[Justin Cohen, CEO at Ategrity]

So the way we approach a regional strategy, it does start with an appointment strategy, so that starts well ahead of our official launches. New England launched two weeks ago, for example. Starting in September, the distribution buildup was in progress. We actually did get some contributions from New England as a result, even though the official launch event, if you will, was just two weeks ago. Similarly, similar for Texas, similar for Florida. There is a, there's an engagement phase where we get feedback from the market regarding solutions that we're willing to offer, and that alone starts to generate interest in doing business with us. There's an appointment phase, and then there's the official launch event, which is really a marker more than anything else.

[Alex Scott, Analyst at Barclays]

Got it. Okay. Could you talk about, you know, gross versus net premiums and just, you know, how we should think about your retention and how that all be expected to trend here?

[Justin Cohen, CEO at Ategrity]

So, as you probably saw, the retention is up meaningfully year-over-year, which we expected, and that was, as I referred to earlier, the cessation of the quota share on our primary casualty business, which was purely opportunistic in nature. So we are deploying capital through that, and that's why our retention ratio has gone up into the 80s, which we think is in the low 80s is the right place to think about it going forward.

[Alex Scott, Analyst at Barclays]

Got it. Thank you.

[Justin Cohen, CEO at Ategrity]

All right. Great.

[Operator]

If you would like to ask an additional question, you may press star one to raise your hand. Our next question comes from the line of Matthew Heimermann with Citi. Your line is now open. Please go ahead.

[Matthew Heimermann, Managing Director at Citi]

Hi, good evening. Two quick ones, or one quick one, and then a follow-up. Do you have paid losses in the quarter by chance?

[Justin Cohen, CEO at Ategrity]

We do. It will be in the queue, but I think the paid to incurred just to back into it, we're in the mid-50s%.

[Matthew Heimermann, Managing Director at Citi]

Okay. I guess. Okay. I don't know if it's for you, Chris or Justin or both, but just thinking about, like, with the regional strategy going, you know, focused on the smaller account sizes, I'm curious just what competitors you're potentially displacing there. Is it legacy carriers? Is it some of the MGAs that maybe are. Is it traditional MGAs or tech-enabled MGAs where maybe the cost structure is a little less advantageous relative to what you can do? Just be curious your thoughts on kind of who you might be competing with there, given it's different than, you know, the majority of the calls that we would listen to as we go through the quarter.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

On the E&S side, very few carriers truly have a playbook for the places where we're competing. We are positioning ourselves to absorb business coming out of the admitted market. Part of this is studying what is flowing in to E&S and being proactive in designing solutions. That is very different than what many of our peers do, and in fact is a more traditional E&S playbook would be, you know, take whatever comes in, wait to see what comes in, build solutions in a bespoke way for, you know, whatever comes across the underwriter's desk. We are studying what's actually exiting the market, building a solution. As I mentioned on the call, we have these city guides, right? We are actually giving our partners, our wholesale partners, wholesale distributors, these city guides. They're interactive.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

They're, you know, they pull up on their iPhone, and they can have a conversation with their retailer that says, "This is what's coming out of the admitted markets. I have a home for it. It's called Ategrity." That is what we're doing here. It's less about displacing, more so kind of guerrilla marketing, if you will.

[Matthew Heimermann, Managing Director at Citi]

Okay. It does sound like it's fair to read you're a few carriers doing this as it is other intermediaries who might be aggregating, or it's just rifle shot. It's just kind of a shotgun approach for a retailer if they have one of these particular risks previously.

[Justin Cohen, CEO at Ategrity]

You're asking do the retailers have this risk, the wholesalers to the retailers. I think as Chris was saying, we're helping. We're providing the opportunity for growth for our retail partners more than anything else.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

For our wholesale partners. Sorry.

[Justin Cohen, CEO at Ategrity]

Our wholesale partners.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

Their clients are the retailers.

[Matthew Heimermann, Managing Director at Citi]

Right

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

... in our, in our, in our-

[Matthew Heimermann, Managing Director at Citi]

Yeah, yeah.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

... framework.

[Matthew Heimermann, Managing Director at Citi]

My question was, is that, like, Sorry, I should have said wholesaler, not retailer. The point was is that wholesaler kind of like shotgun, isn't quite sure where to go in the market in the past, or is still going to traditional carriers? Are there, you know, in your mind, some other intermediaries kind of playing in these channels? I get what you're doing. I'm just trying to figure out.

[Justin Cohen, CEO at Ategrity]

Yeah

[Matthew Heimermann, Managing Director at Citi]

What the home might have been in the past for this business if you haven't stepped in front of it.

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

That retailer did not need to work with a wholesaler, because, you know, they would've been able to go to an admitted market. In our, in this scenario now that they need to find a home for that specific profile, we are being proactive in telling them where that home is. That's what our wholesalers are doing, and that's why, you know, we invested in the marketing because we want to be the first in the door to make sure that we establish ourselves in that way.

[Matthew Heimermann, Managing Director at Citi]

I get all that. Poorly asked question. I'll follow up since I'm not too sick this evening. Have a good one.

[Justin Cohen, CEO at Ategrity]

Thank you.

[Operator]

Our next question comes from the line of Alex Scott with Barclays. Your line is now open. Please go ahead.

[Alex Scott, Analyst at Barclays]

Let's see. I just wanted to see.

[Justin Cohen, CEO at Ategrity]

Yeah

[Alex Scott, Analyst at Barclays]

If you could give us a feel for how persistency's been running. You know, any kind of metrics you can give us, and particularly as you've kind of lapsed some of these bigger initiatives, how is that trending?

[Chris Schenk, President and Chief Underwriting Officer at Ategrity]

Yes. Our retention rate was high, was the highest since we've gone public. We had a larger renewal pool, which means that our theory of a high lifetime value for each account acquired is starting to prove out. In fact, with the newer strategies, in fact, though, with Project Heartland, for example, where we're now two or three renewal in, we are now starting to see that lifetime value target come into place, which we have not disclosed, but we do have a target.

[Alex Scott, Analyst at Barclays]

Okay. You guys aren't willing to offer up just at a high level how persistency's running for the overall book?

[Justin Cohen, CEO at Ategrity]

When you say persistency, you mean the retention rate? The policy retention rate?

[Alex Scott, Analyst at Barclays]

Yeah. Yep. Yeah, sorry.

[Justin Cohen, CEO at Ategrity]

Yeah. We're not disclosing it.

[Alex Scott, Analyst at Barclays]

Okay. All right. Thanks.

[Justin Cohen, CEO at Ategrity]

Bye.

[Operator]

We have reached the end of the Q&A session. I will now turn the call back to Justin for closing remarks.

[Justin Cohen, CEO at Ategrity]

Well, thank you all for joining us this evening. We thank you for your interest in the company, and we look forward to speaking with you in the weeks ahead. Take care.

[Operator]

This concludes today's call. Thank you for attending. You may now disconnect.

Participants

Analysts

• Alex Scott, Analyst at Barclays
• Andrew Kligerman, Managing Director of Insurance at TD Cowen
• Chris Schenk, President and Chief Underwriting Officer at Ategrity
• Elyse Greenspan, Managing Director at Wells Fargo
• Justin Cohen, CEO at Ategrity
• Matthew Heimermann, Managing Director at Citi
• Neelam Patel, CFO at Ategrity
• Pablo Singzon, Executive Director at JPMorgan