Ategrity Specialty Insurance: With A Longer Track Record, Possible Multiple Expansion

Ategrity Specialty Insurance Company Holdings has some appeal in that it trades at a meaningful P/B discount to possible comps. But it's a relatively new business, and there can be tail risks, so a greater track record may be needed for multiple expansion to be possible. There are also some related party considerations and possibly aggressive investments as far as the reserve portfolio is concerned, relating to the aforementioned concern. However, they are writing a lot of policies and there is operating leverage supporting profit growth. In all, the performance has been good. But we note that the market may have misgivings about the track record and a prospective investor here may need conviction that the story will develop favourably to justify investment.

Ategrity Specialty Insurance Company Holdings (ASIC) is interesting on the face of it, as it trades at a lower P/B than possible comps in the E&S world. Our concern is mainly two things. It's quite a This article was written by Valkyrie Trading Society 5.6K Followers Follow The Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.