Ategrity Specialty Holdings IPO: shares of the complex risk insurer begin trading

Shares in Ategrity Specialty Holdings, which offers non-standard insurance for small businesses, have become available to investors on the Freedom trading system. The securities are placed under the ticker ASIC. They will appear on the NYSE exchange in a few hours. Listing of an insurer is a rarity on global stock exchanges, Bloomberg notes. At the same time, analysts estimate the market of specialized policies for complex cases as rapidly growing and competitive.

Insurance company Ategrity Specialty Holdings raised $113 million in an IPO on the New York Stock Exchange, said in a press release. The offering was priced at $17 per share - with a stated price range of $14 to $16. As part of the listing, Ategrity sold 6.7 million bonds. Based on its volume and price, the insurer's capitalization now stands at about $800 million.The organizers were JPMorgan, Barclays, Citigroup, TD Securities and Wells Fargo Securities.

The main objectives of this offering are to strengthen the company's capitalization and financial flexibility and to create a public market for its common stock. It plans to use the proceeds to expand its business and other general corporate objectives by initially investing in debt securities.

Ategrity Specialty Insurance has been around since 2018 and supplies excedent and excess insurance for small and medium-sized US companies, meaning it caters for risks that standard policies do not cover. This is usually needed for complex facilities or to cover expenses beyond the limits of the main insurance. Ategrity offers insurance solutions for property (40% of gross written premiums in 2024) and casualty (60%) and operates in industries such as construction, hospitality and retail. 

All told, last year, the company generated $437 million in gross written premiums and had total assets of $1.1 billion. As of March 31, 2025, Ategrity had a network of 512 distribution partners, providing enhanced transactional opportunities and diversified sources of business, Freedom Broker points out. Ategrity had a network of 512 distribution partners, providing enhanced transactional opportunities and diversified sources of business, Freedom Broker points out;

In the run-up to the IPO, the insurer showed growth in financial indicators: for example, consolidated net profit grew by 78% in 2024, reaching $47.1 million, reports Bloomberg. And free cash flow increased almost 1.5 times to $125.6 million.

As of December 31, 2024, Ategrity has raised $361 million in investments, including funding from Zimmer Financial Services Group, writes Seeking Alpha.

Ategrity is evolving amid a fast-growing specialty insurance market, betting on investments in technology and digital sales channels to scale, IPO expert Donovan Jones noted in a blog on Seeking Alpha.

He sees the prospects for the non-standard insurance products industry as significant. According to Conning's 2024 research report, this market expanded steadily from 2019 to 2023, surpassing $104 billion in premium volume by that point. Cumulative compound annual growth rate was 21%, outpacing traditional insurance, says the expert. He sees the emergence of new players offering customized solutions for increasingly specific customer needs as the main driver of further growth. He also sees the emergence of new players offering customized solutions for increasingly specific customer needs as the main driver of growth;

Freedom Broker analyst Alem Bektemirov estimates that the average P/B multiple (ratio of share price to book value of the business) in the insurance industry is 1.93. Taking this into account, the analyst calculates the fair value of Ategrity as $823.76 mln or $17.5 per share, which implies a potential growth of 3% to the offering price.

Among the main threats to Ategrity's business Bektemirov named high competition in the market and a possible downgrade of the financial strength rating, which could negatively affect the volume of transactions. Jones draws attention to risks with distribution and geographic concentration: 48% of its gross insurance premiums in 2024 came from the company's three largest wholesale distributors, with 56.4% - coming from four states. 

The IPO of an insurance company is a rarity for global exchanges, Bloomberg reminds. According to data collected by the agency, only nine such companies entered the market last year, and they raised a total of $1.1 billion.

The owners of British specialty insurance group Inigo are also considering an initial public offering on the London Stock Exchange, but this option is less preferable to alternatives such as a possible sale of the entire business or a minority stake, Bloomberg reported.

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Freedom Broker clients will be able to trade Ategrity Specialty Holdings shares before the opening of the main exchange session. Trading will begin in the early pre-market format 2-3 hours before the opening of the US exchanges (from 15:30-16:30 Astana time). To participate, click on ticker ASIC.US.