Ategrity Specialty Insurance Co Holdings Liquidation Value

Ategrity Specialty Insurance Company Holdings (ASIC) is a specialty E&S P&C insurer operating through a single reportable segment. Under a liquidation lens as of March 31, 2026, the company presents a positive book equity position of $631.0 million (stockholders' equity excluding NCI), but liquidation recovery to equity is materially lower once asset haircuts are applied and insurance-specific obligations are held at face value.

Total assets are $1.52 billion. The dominant asset classes are: fixed-maturity securities (AFS) at fair value of $574.4 million, short-term investments of $219.9 million, loans to affiliates of $106.5 million, the Utility & Infrastructure Investments (alternative investment, NAV-based) of $198.3 million, and cash of $47.5 million. On a liquidation basis, cash ($47.5M, 100% recovery) and short-term investments ($219.9M, ~100% for government agency money market instruments) recover near par. Fixed-maturity securities ($574.4M fair value; amortized cost $574.1M) are nearly at par currently, but $219.7M carries unrealized losses less than 12 months old of $4.0M — recoverable at fair value under distressed sale conditions would likely see modest additional haircut (assume 90-95% recovery, implying ~$29-57M haircut range). The Utility & Infrastructure Investments ($198.3M) are NAV-based alternative investments in an affiliated long/short equity fund; these are illiquid, affiliated, and carry a 0% liquidation haircut under the intangibles rule — or more practically, a severe haircut (assume 50-60% recovery given illiquidity, affiliate concentration, and lack of observable market), representing a potential $79-99M loss versus book. Loans to affiliates ($106.5M, $100M ZIS Loan + $6.5M ZFSG Promissory Note) are unsecured related-party obligations; recoverability in liquidation is highly dependent on ZFSG/ZIS solvency and collateral, not independently verifiable from this filing. The filing discloses no allowance on these loans, but they carry elevated related-party credit risk. Reinsurance recoverables of $157.8M face value with zero allowance are a significant asset; recovery depends on counterparty quality (all reinsurers rated A- or better per filing). PP&E of $7.3M receives a 50-70% haircut (~$2-4M loss). Deferred acquisition costs ($33.8M) and deferred tax assets ($15.4M) carry zero liquidation value.

On the liability side, the largest obligations are loss reserves (gross $538.2M, net of reinsurance $390.5M), unearned premiums ($282.0M net), income tax payable to ZFSG ($12.9M under Tax Allocation Agreement), accounts payable ($28.8M), and reinsurance payable ($21.6M). All liabilities held at face value. The operating lease liability of $2.0M does not extinguish on windup.

Compared to the prior period (December 31, 2025, 10-K), stockholders' equity increased $16.7M driven by net income of $27.2M partially offset by OCI loss of $9.0M (pre-tax unrealized loss of $11.4M on fixed-maturity securities, a meaningful deterioration from near-zero OCI loss in Q1 2025). The Utility & Infrastructure Investments increased $8.5M QoQ driven by mark-to-market gains. Loans to affiliates held flat at $106.5M.

MFFAIS reports CLV/LLV/OLV of $45.5M — substantially below GAAP book equity of $631M, consistent with the liquidation lens analysis above where intangible/illiquid/related-party assets receive heavy haircuts against full-face liabilities, particularly loss reserves. The filing does not separately XBRL-tag the ZIS Loan or ZFSG Promissory Note as distinct line items; these are disclosed in narrative and aggregated under AdvancesToAffiliate ($106.5M). The filing also discusses the Utility Limited Partnership structure as a consolidated VIE in MD&A but XBRL tags the investment as AlternativeInvestment — the consolidated VIE adds $198.3M in assets but also the NCI liability ($2.3M minority interest) attributable to the General Partner.