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AM Best revises Ategrity Specialty Holdings outlook to negative from stable

Ategrity logo scottsdale AZ.jpg

AM Best has revised the outlooks to negative from stable for Ategrity Specialty and its affiliate Sequentis Re.

The ratings agency also affirmed the company’s financial strength rating (FSR) of A- and its long term issuer credit rating (ICR) of a-.

The revision of outlook to "negative" reflects AM Best's concern over recent underwriting volatility, which has resulted in pressure on the company's operating performance and ERM fundamentals, the agency said in a statement.

"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,” AM Best said.

However, the affirmation of the credit ratings reflect Ategrity’s balance sheet strength, which AM Best assessed as “very strong”, and its adequate operating performance, limited business profile and appropriate enterprise risk management.

Scottsdale-based excess and surplus company Ategrity Specialty recently raised $75mn from existing backer Sequentis Financial.

The company launched in 2018 – with $125mn in funding and an A- rating by AM Best – by former Scottsdale Insurance president Mike Miller, along with former colleagues John Goodloe and Joe Griffith.

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