Ategrity Specialty Insurance Co. Holdings has filed for an initial public offering with the US Securities and Exchange Commission but will remain a controlled company under Zimmer Financial Services Group, according to a report from AM Best, citing a Form S-1 filing.
The excess and surplus lines insurer, which focuses on small- to medium-sized business coverage, said proceeds from the offering will be used to strengthen its capitalization and financial flexibility. The company 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 the filing.
Zimmer Financial Services Group currently consolidates Ategrity in its financial statements and may seek to maintain an ownership stake above 80% to continue doing so. As part of the offering, Ategrity plans to enter into a stockholders’ agreement that will give Zimmer the right to nominate board and committee members, subject to certain ownership thresholds.
Ategrity operates in 48 states and the District of Columbia on a surplus lines basis. At the end of 2024, California accounted for 21% of its gross written premium, followed by Florida at 16.2%, Texas at 12.8%, and New York at 6.4%. The company provides commercial property, low-limit general liability and management, as well as professional liability products, with a focus on the real estate, hospitality, construction and retail sectors.
The insurer has reported strong financial growth, with net income rising to $47.1 million in 2024, up from $10 million a year ago. Net premiums earned increased to $290.2 million from $231.5 million, while the combined ratio improved from 97.5 to 93.9. Total members’ equity grew to $398.3 million from $321.7 million.
Ategrity has also expanded its distribution network, growing from 180 partners at the end of 2021 to 460 by the close of 2024. The company said its underwriting approach is designed 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 the development of new products. The insurer’s operating entities currently hold a Best’s Financial Strength Rating of A- (Excellent).
Ategrity qualifies as an emerging growth company, allowing it to take advantage of reduced reporting requirements. While the IPO signals plans for expansion, the company is expected to remain under Zimmer’s control for the foreseeable future.
