Executive Summary

ASIC delivered record results: total revenues $116.10M (+30.9% y/y; +14.1% q/q), diluted EPS $0.45 (adjusted $0.46), and a combined ratio of 88.7% (vs 95.3% LY; 88.9% prior qtr), driven by operating leverage and lower acquisition/operating ratios .
EPS beat Wall Street consensus by ~29% ($0.46 vs $0.357*) on stronger investment income, fee income, and expense ratio improvements; revenue consensus for Q3 was unavailable in S&P Global data (EPS est. count: 5) (S&P Global).
Management signaled Q4 ambition for ~30% y/y gross written premium (GWP) growth and ~90% combined ratio; fee income modeled at ~$1.5M in Q4 (down from Q3’s $2.2M) .
Strategic catalysts: accelerating distribution (submissions +70% y/y), mix optimization (casualty +41% GWP), Midwest expansion (“Project Heartland”), and technology-enabled underwriting; CEO solicited investor input on balancing insider purchases with float expansion .

What Went Well and What Went Wrong

What Went Well
- Operating leverage: expense ratio fell to 28.7% (–4.5 pts y/y; –2.3 pts q/q), with operating expenses at 10.8% of NPE (–2.7 pts y/y), aided by higher fee income and scale .
- Quality growth with discipline: GWP +30.1% y/y to $143.9M; casualty GWP +41.4% y/y; combined ratio improved to 88.7% as mix and acquisition economics improved; “We achieved rate increases ahead of loss trend in both property and casualty lines” (CUO) .
- Investment results tailwind: net investment income $10.96M (vs $6.81M LY); realized/unrealized gains $9.18M; BVPS $12.24 (+18% vs YE) .
- Management quote: “Our business scaled efficiently, producing operating leverage and a lower expense ratio… analytics and automation continue to extend our advantage” (CEO) .
What Went Wrong
- Higher loss ratio vs Q2: loss ratio rose to 60.0% (from 58.0% in Q2), reflecting conservative property booking (ex‑CAT ratios higher due to prudence as a public company) .
- Fee income expected to normalize lower: management guided Q4 fee income to ~$1.5M vs $2.2M in Q3, implying a modest sequential headwind to the operating expense ratio .
- Macro/market watch: industry growth decelerating and competitive intensity increasing in parts of E&S; management maintains discipline, avoiding appetite creep and preserving technical pricing .

Financial Results

Income statement, underwriting, and operating metrics (oldest → newest)

Metric	Q3 2024	Q2 2025	Q3 2025
Total Revenues ($M)	$88.75	$101.78	$116.10
Net Premiums Earned ($M)	$72.89	$86.93	$93.71
Net Investment Income ($M)	$6.81	$11.89	$10.96
Underwriting Income ($M)	$3.45	$9.61	$10.62
Net Income Attrib. to Stockholders ($M)	$12.86	$17.62	$22.66
Diluted EPS (GAAP)	$0.36	$0.39	$0.45
Adjusted Diluted EPS (non‑GAAP)	$0.36	$0.41	$0.46
Fee Income ($M)	$0.25	$1.52	$2.23
Loss Ratio	62.1%	58.0%	60.0%
Expense Ratio	33.2%	31.0%	28.7%
Combined Ratio	95.3%	88.9%	88.7%

Segment GWP breakdown (oldest → newest)

Product	Q3 2024 ($M)	Q3 2025 ($M)	YoY %
Casualty	$69.93	$98.86	41.4%
Property	$40.62	$44.99	10.8%
Total GWP	$110.55	$143.86	30.1%

Balance sheet/kpi snapshot (sequential)

KPI	Q2 2025	Q3 2025
Book Value per Share	$11.64	$12.24
ROE (reported, quarterly annualized)	14.3%	15.8%
Adjusted ROE (quarterly annualized)	14.5%	15.9%

Context/notes:

Q3 combined ratio improved slightly q/q as the expense ratio declined (28.7% vs 31.0%) offsetting a higher loss ratio (60.0% vs 58.0%) .
Net investment income and realized/unrealized gains contributed meaningfully to EPS performance .

Prior two quarters reference:

Q2 2025 results detailed above .
Q1 2025 SEC earnings materials were not found; per S&P Global, revenue actual was $83.12M* (EPS actual not available from our pull). Values retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
GWP growth vs industry	Q4 2025	“Mid‑ to high‑20s growth for 2H” (implies outsized vs market)	~20 pts above industry; implies ~30% y/y GWP for Q4	Raised specificity for Q4; reiterated share gains
Combined Ratio	Q4 2025	“Low‑90s” framework from IPO/Q2 commentary	Targeting ~90% CR in Q4	Tightened to ~90%
Fee Income	Q4 2025	Not previously quantified for Q4	~$1.5M in Q4	New quantification (lower vs Q3 actual)
Mix/Property Strategy	Ongoing	Limited‑CAT, technical pricing posture	Continue limited‑CAT; conservative property booking; Midwest expansion	Maintained

No dividend or capital return guidance discussed. Management also broached potential insider open‑market purchases vs increasing public float over time, seeking investor feedback .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Distribution & submissions	Invested in access; submissions outpaced GWP; Project Heartland launched; 150% increase in relationships since mid‑2022	Submissions +70% y/y; broader/better partner engagement; active partners +25% YTD; hit ratios kept low by design	Strengthening
Pricing/market	Held rates firm; property low‑teens increases; prospective pricing incl. tariff impacts	Mid‑ to high‑single‑digit renewal increases; rates ahead of loss trends; property conservatism in booking	Disciplined/stable
Technology/automation	“Productionized underwriting”; pre‑priced and auto‑quote; efficiency gains	Innovation lab consolidating tools into single platform; OCR/AI-enabled intake scaling	Advancing
Mix shift	Casualty growing; property moderated due to rate and CAT posture	Casualty +41% GWP; property +10.8% as actions anniversary; portfolio tilting to better economics	Positive mix
CAT/reinsurance	Limited‑CAT strategy; geospatial spread; Midwest expansion	Growth within existing protections; focus away from heavy coastal aggregation	Maintained
Fee income	Introduced/picking up with standard market practices	$2.2M in Q3; guide $1.5M for Q4; not purely top‑line, volume/service‑linked	Normalizing lower in Q4

Management Commentary

CEO: “Our results reflect consistent execution of our underwriting strategy, supported by disciplined pricing and prudent risk selection… producing operating leverage and a lower expense ratio” .
CUO: “Combining disciplined underwriting with the strategic deployment of technology drives strong operating results… We achieved rate increases ahead of loss trend in both property and casualty lines” .
CFO: “Adjusted net income was $22.8 million… operating expense ratio improved 2.7 points… policy acquisition costs declined 1.8 points… book value per share ended the quarter at $12.24” .
CEO (outlook): “We believe… roughly 30% year‑over‑year growth [Q4]… aiming to deliver a 90% combined ratio in the fourth quarter” .

Q&A Highlights

Property outlook and growth durability: management sees small/mid market conditions remaining rational; sequential property growth accelerated as 2024 pricing actions anniversary; pursuing disciplined growth without “making a market call” .
Technology roadmap: innovation lab is unifying AI/OCR intake and pre‑priced solutions into a single platform to accelerate delivery and maintenance benefits .
Expense/fee modeling: fee income expected ~$1.5M in Q4; fees offset operating expense ratio but carry associated third‑party costs; expect slight uptick in operating expense ratio sequentially .
Loss ratio conservatism: higher ex‑CAT assumptions on property reflect prudence as a public company; no prior‑year development in Q3 (vs 1.7 pts last year) .
CAT/reinsurance posture: limited‑CAT strategy intact; property growth largely from Midwest geospatial spread, not concentrated coastal exposures .

Estimates Context

Q3 2025 EPS: Actual $0.46 vs S&P Global consensus $0.357 (5 estimates) → beat by ~$0.103 (~29%)*. Values retrieved from S&P Global.
Q3 2025 Revenue: Actual $116.10M; S&P Global revenue consensus for Q3 not available in our pull*. Values retrieved from S&P Global.
Q2 2025 reference: Revenue actual $101.78M vs $98.2M consensus (1 estimate) → beat by ~$3.6M (~3.6%)*. Values retrieved from S&P Global.

Financial Trend Inserts (S&P Global supplement)

Revenue trend (oldest → newest)

Q1 2025: $83.12M*; Q2 2025: $101.78M ; Q3 2025: $116.10M . Values retrieved from S&P Global (Q1) and company filings (Q2/Q3).

EPS (adjusted) trend (oldest → newest)

Q2 2025: $0.41 ; Q3 2025: $0.46 . (Q1 EPS not available from our S&P pull.) Values retrieved from S&P Global where noted.

Key Takeaways for Investors

Sustained profitable growth: combined ratio maintained sub‑90% while scaling GWP ~30%; operating leverage and acquisition economics are driving durable margin gains .
EPS upside drivers intact: higher investment income, rising fee income (normalized lower in Q4), and efficiency gains supported a sizable EPS beat vs S&P consensus* . Values retrieved from S&P Global.
Mix and geography reduce risk: casualty growth and Midwest expansion align with limited‑CAT strategy, supporting steadier loss experience and reinsurance costs .
Near-term setup: Q4 ambition for ~90% CR and ~30% y/y GWP suggests continued momentum; model slightly lower fee income and a modest operating expense ratio uptick sequentially .
Watch property assumptions: conservative property booking raised ex‑CAT losses near‑term; potential for favorable development if losses emerge benignly .
Distribution/product innovation: technology consolidation (AI/OCR platform), digital brokerage channel, and bespoke offerings (e.g., real estate sector requirements) deepen competitive moat .
Sentiment/float dynamics: management open to investor feedback on balancing insider purchases with increasing public float over time—could be a stock liquidity catalyst .

Search notes:

Q3 2025 8‑K with press release and full financials read in full –.
Q3 2025 earnings call transcript read in full –.
Q2 2025 8‑K with press release and full financials read in full –; Q2 call transcript read –.
No standalone press releases beyond the 8‑K exhibit were found for Q3 2025 (press-release doc type returned none).
S&P Global estimates retrieved for consensus/actuals as noted with asterisks; some quarterly items (Q3 revenue consensus, Q1 EPS) were unavailable in our pull. Values retrieved from S&P Global.

Footnote on non‑GAAP: Adjusted EPS and adjusted net income exclude IPO‑related non‑operating expenses; Q3 adjustments totaled ~$0.21M pre‑tax; GAAP diluted EPS $0.45 vs adjusted $0.46 .

Ategrity Specialty Insurance Co Holdings (ASIC)·Q3 2025 Earnings Summary