21 unchanged sentences
Misappropriation of funds by any of these parties could result in title claims, some of which could be large and have a material negative impact on the Company’s results of operations and financial condition.
−Removed: The Company relies upon the North Carolina, Texas, South Carolina, Georgia and Florida markets for a significant portion of its premiums.
+Added: The Company relies upon the North Carolina, Texas, Georgia, South Carolina, and Florida markets for a significant portion of its premiums.
Changes in the economic or regulatory environments in these states could have an adverse impact on the Company.
−Removed: North Carolina, Texas, South Carolina, Georgia, and Florida are the largest sources of premium revenue for the Company’s title insurance subsidiaries.
+Added: North Carolina, Texas, Georgia, South Carolina, and Florida are the largest sources of premium revenue for the Company’s title insurance subsidiaries.
In 2025, these states represented 35.3%, 27.1%, 8.6%, 8.1%, and 6.4% of total premiums written by the Company, respectively.
51 unchanged sentences
however, any new regulations implemented could result in changes to internal processes, including changes to systems and forms.
−Removed: Leadership transitions at the CFPB under the new presidential administration may result in changes that could affect the title insurance industry.
+Added: Leadership changes at the CFPB may result in policy or regulatory shifts that could impact the title insurance industry.
In addition to federal regulation, title insurance subsidiaries are subject to state regulations.
44 unchanged sentences
Additionally, these subsidiaries are required to maintain minimum amounts of capital, surplus and reserves.
−Removed: As of December 31, 2024, approximat ely $118.2 million of c onsolidated shareholders’ equity represented the net assets of the Company’s subsidiaries that cannot be transferred in the form of dividends, loans or advances to the Company.
+Added: As of December 31, 2025, approximat ely $121.4 million o f c onsolidated shareholders’ equity represented the net assets of the Company’s subsidiaries that cannot be transferred in the form of dividends, loans or advances to the Company.
In general, dividends in excess of prescribed limits are deemed “extraordinary” and require prior approval by the appropriate regulatory body.
1 unchanged sentence
These dividend restrictions could limit the Company’s ability to pay dividends to its shareholders or fund growth opportunities.
−Removed: Changes being proposed and implemented by the new presidential administration are expected to fundamentally alter the size and scope of the federal government through reduction of the federal work force and the potential reduction, change in direction or possible elimination of, various government agencies and programs.
−Removed: The new presidential administration is proposing and seeking to implement significant changes to the size and scope of the federal government.
−Removed: These changes may include reductions to government funding of various programs and agencies, alteration of the payment systems it uses, changes in policy direction, reduction and possible elimination of various federal agencies and bureaus and reduction of the overall federal government workforce.
−Removed: These changes, if implemented and taken as a whole, appear unprecedented and may have impacts on the economy as a whole or different regions or segments of the economy or asset classes which are difficult to predict at this time.
−Removed: Accordingly, it is possible that such comprehensive changes could adversely affect the Company’s results of operations and financial condition.
RISKS RELATED TO INVESTMENTS AND DEPOSITS
55 unchanged sentences
The controls and procedures used by the Company to prevent transfer errors and fraud may prove inadequate, resulting in financial losses, reputational harm, loss of customers or other adverse consequences which could be material to the Company.
−Removed: The Company may encounter difficulties managing system or technological changes, which could adversely affect its financial and operating results.
−Removed: Technological changes in the title insurance industry are driven primarily by evolution in technology, competitive factors and regulatory changes.
−Removed: These changes have resulted in faster information delivery and efficient, highly automated production processes.
−Removed: The inability of the Company to manage, develop or successfully implement new systems or technological changes could negatively impact profitability.
+Added: Failure to timely adopt, effectively implement or appropriately govern new technologies could adversely affect the Company’s financial and operating results.
+Added: Technological developments in the title insurance industry are driven by advances in technology, competitive dynamics, and regulatory requirements.
+Added: These developments have accelerated the delivery of information and increased reliance on automated and highly efficient production processes, including the growing use of automation and artificial intelligence (“AI”).
+Added: The Company’s competitiveness depends, in part, on its ability to evaluate, adopt, integrate, and maintain technologies in ways that meet evolving industry standards, regulatory expectations, and customer preferences.
+Added: Investments in new technologies are significant and present implementation, operational, and compliance challenges.
+Added: There can be no assurance that technologies the Company acquires or develops will function as intended, deliver expected benefits, remain secure, or be accepted by customers, regulators, or business partners.
+Added: Failure to effectively manage technological change could disrupt operations, increase costs, reduce service quality, or harm the Company’s reputation.
+Added: The use of AI presents additional risks.
+Added: AI tools, including those provided by third parties, may rely on data that is inaccurate, biased, or subject to legal or contractual restrictions, and there may be limited insight into the controls used in their development.
+Added: AI applications may produce inaccurate outputs, disclose confidential information, reflect unintended bias, or infringe intellectual property rights.
+Added: The complexity of AI systems may also make governance, oversight, and compliance with evolving legal and regulatory requirements more difficult, potentially increasing costs and exposure to liability.
+Added: The inability of the Company to develop, implement, or manage new systems or technological changes could negatively impact the Company and its results of operations.
Policies and procedures for the mitigation of risk may not be sufficient.
21 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.