Best says Ategrity outlook negative

A.M. Best Co. said Thursday it has revised the outlook for Ategrity Specialty Holdings LLC and its subsidiaries from stable to negative, citing concern over underwriting volatility.

Best affirmed the A-(Excellent) financial strength rating of excess and surplus lines insurer Ategrity Specialty Insurance Co., based in Scottsdale, Arizona, and its Bermuda affiliate, Sequentis Reinsurance Co. Ltd.

Best said in its statement that the revision reflects concern “over recent underwriting volatility, which has resulted in pressure on the company’s operating performance and (enterprise risk management) fundamentals.

“While the company has made recent changes in senior management and is in the midst of executing a strategy with less inherent volatility, these changes still need to prove beneficial to the group’s underwriting performance in the intermediate term.”

The company did not respond to a request for comment.

Ategrity said in September it had completed raising $75 million in capital, led by Sequentis Financial LLC.

Ategrity began operations in September 2018 with funding from Sequentis Chairman Stuart Zimmer.