What changed in this filing

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Item 1. Financial Statements

2026-07-24 compared with 2026-04-24 · 174 added, 107 removed, 534 unchanged (34% of the section changed)

3 unchanged sentences

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

(in thousands, except per share data)

2 unchanged sentences

Net realized gains

Net unrealized gains (losses) on equity securities

Net unrealized gains on equity securities

Consolidated revenue

54 unchanged sentences

Deferred compensation

Treasury shares, at cost ( 45,860,428 shares at 3/31/26 and 12/31/25)

Treasury shares, at cost ( 46,095,401 shares at 6/30/26 and 45,860,428 shares at 12/31/25)

TOTAL SHAREHOLDERS’ EQUITY

12 unchanged sentences

Balance, March 31, 2025

Other comprehensive earnings (loss), net of tax

Deferred compensation

Share-based compensation

Dividends and dividend equivalents ($ 0.16 per share)

Balance, June 30, 2025

Comprehensive

7 unchanged sentences

Balance, March 31, 2026

Other comprehensive earnings (loss), net of tax

Deferred compensation

Purchases of treasury shares

Share-based compensation

Dividends and dividend equivalents ($ 2.18 per share)

Balance, June 30, 2026

See accompanying notes to the unaudited condensed consolidated financial statements.

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

(in thousands)

9 unchanged sentences

Fixed income securities, available-for-sale

Net proceeds from sale (purchase) of short-term investments

Net proceeds from purchase of short-term investments

Net cash used in investing activities

4 unchanged sentences

Proceeds from stock option exercises

Purchases of treasury shares

Net cash used in financing activities

1 unchanged sentence

Cash at the beginning of the period

Cash at March 31,

Cash at June 30,

See accompanying notes to the unaudited condensed consolidated financial statements.

39 unchanged sentences

We then re-evaluate the overall allowance and determine whether the balance is sufficient and, if needed, an additional allowance is recognized.

The allowance for uncollectible amounts on paid reinsurance balances receivable was $ 17 million at March 31, 2026 and December 31, 2025.

The allowance for uncollectible amounts on unpaid reinsurance balances recoverable was $ 11 million at March 31, 2026 and December 31, 2025.

The allowance for uncollectible amounts on paid reinsurance balances receivable was $ 17 million at June 30, 2026 and December 31, 2025.

The allowance for uncollectible amounts on unpaid reinsurance balances recoverable was $ 11 million at June 30, 2026 and December 31, 2025.

Changes in the allowances were due to changes in the amount of reinsurance balances outstanding, the composition of reinsurers from whom the balances were recoverable and their associated S&P default ratings.

No write-offs were applied to the allowances in the first three months of 2026 and less than $ 1 million was recovered.

No write-offs were applied to the allowances in the first six months of 2026 and less than $ 1 million was recovered.

INTANGIBLE ASSETS

The composition of goodwill and intangible assets at March 31, 2026 and December 31, 2025 is detailed in the following table:

The composition of goodwill and intangible assets is detailed in the following table:

(in thousands)

4 unchanged sentences

Based upon these reviews, none of the assets were impaired.

In addition, there were no triggering events as of March 31, 2026 that would suggest an updated impairment test would be needed for our goodwill and intangible assets.

In addition, there were no triggering events as of June 30, 2026 that would suggest an updated impairment test would be needed for our goodwill and intangible assets.

EARNINGS PER SHARE

6 unchanged sentences

For the Three Months

Ended March 31, 2026

Ended March 31, 2025

Ended June 30, 2026

Ended June 30, 2025

(in thousands, except per share data)

6 unchanged sentences

Anti-dilutive securities excluded from diluted EPS

For the Six Months

Ended June 30, 2026

Ended June 30, 2025

(in thousands, except per share data)

(Denominator)

Earnings available to common shareholders

Effect of Dilutive Securities

Stock options and restricted stock units

Earnings available to common shareholders

Anti-dilutive securities excluded from diluted EPS

COMPREHENSIVE EARNINGS

1 unchanged sentence

In reporting the components of comprehensive earnings, we used the federal statutory tax rate of 21 percent.

Other comprehensive earnings (loss), as shown in the consolidated statements of earnings and comprehensive earnings, is net of tax benefit of $ 7 million for the first quarter of 2026, compared to $ 8 million of tax expense for the same period in 2025.

Unrealized losses, net of tax, recognized in other comprehensive earnings (loss) were $ 25 million for the first three months of 2026, compared to $ 30 million of unrealized gains, net of tax, in the first three months of 2025.

Other comprehensive earnings (loss), as shown in the consolidated statements of earnings and comprehensive earnings, is net of tax benefit of $ 1 million for the second quarter of 2026, compared to $ 5 million of tax expense for the same period in 2025.

For the six-month period ended June 30, 2026, other comprehensive earnings (loss) is net of tax benefit of $ 7 million, compared to $ 13 million of tax expense for the same period in 2025.

Unrealized losses, net of tax, recognized in other comprehensive earnings (loss) were $ 28 million for the first six months of 2026, compared to $ 49 million of unrealized gains, net of tax, in the first six months of 2025.

The unrealized losses in 2026 were attributable to an increase in interest rates, which decreased the fair value of securities held in the fixed income portfolio.

3 unchanged sentences

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

Unrealized Gains (Losses) on Available-for-Sale Securities

11 unchanged sentences

For the Three Months

For the Six Months

Component of Accumulated

Ended March 31,

Ended June 30,

Affected line item in the

34 unchanged sentences

Regulation D Private Placement Securities:

All Regulation D privately-placed bonds are classified as corporate securities and deemed Level 3.

All Regulation D privately-placed bonds are deemed Level 3.

The pricing vendor evaluation methodology for these securities includes a combination of observable and unobservable inputs.

Observable inputs include public corporate spread matrices classified by sector, rating and average life, as well as investment and non-investment grade matrices created from fixed income indices.

inputs include public corporate spread matrices classified by sector, rating and average life, as well as investment and non-investment grade matrices created from fixed income indices.

Unobservable inputs include a liquidity spread premium calculated based on public corporate spread and private corporate spread matrices.

9 unchanged sentences

Equity Securities:

As of March 31, 2026, nearly all of our equity holdings were traded on an exchange.

As of June 30, 2026, nearly all of our equity holdings were traded on an exchange.

Exchange traded equities have readily observable price levels and are classified as Level 1 (fair value based on quoted market prices).

6 unchanged sentences

Realized gains and losses on disposition of investments are based on the specific identification of the investments sold on the settlement date.

The following is a summary of the disposition of fixed income and equity securities for the three-month periods ended March 31, 2026 and 2025:

The following is a summary of the disposition of fixed income and equity securities for the six-month periods ended June 30, 2026 and 2025:

Gross Realized

10 unchanged sentences

FAIR VALUE MEASUREMENTS

Assets measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025 are summarized below:

As of March 31, 2026

Assets measured at fair value on a recurring basis are summarized below:

As of June 30, 2026

Quoted Prices in

8 unchanged sentences

Equity securities

Non-agency asset-backed, commercial mortgage-backed and mortgage-backed securities

As of December 31, 2025

11 unchanged sentences

The following table summarizes changes in the balance of securities whose fair value was measured using significant unobservable inputs (Level 3).

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

5 unchanged sentences

Transfers out of Level 3

Balance as of March 31,

Balance as of June 30,

Change in unrealized gains (losses) during the period for Level 3 assets held at period-end - included in other comprehensive earnings (loss)

The amortized cost and fair value of available-for-sale fixed income securities by contractual maturity as of March 31, 2026 were as follows:

March 31, 2026

The amortized cost and fair value of available-for-sale fixed income securities by contractual maturity were as follows:

June 30, 2026

(in thousands)

7 unchanged sentences

Asset-backed, commercial mortgage-backed and mortgage-backed securities

The amortized cost and fair value of available-for-sale securities at March 31, 2026 and December 31, 2025 are presented in the tables below.

Amortized cost does not include accrued interest receivable of $ 29 million as of March 31, 2026 and $ 29 million as of December 31, 2025.

March 31, 2026

The amortized cost and fair value of available-for-sale securities are presented in the tables below.

Amortized cost does not include accrued interest receivable of $ 31 million as of June 30, 2026 and $ 29 million as of December 31, 2025.

June 30, 2026

(in thousands)

20 unchanged sentences

The allowance for any security is limited to the amount that the security’s fair value is below amortized cost.

As of March 31, 2026, the discounted cash flow analysis resulted in an allowance for credit losses on 8 securities.

As of June 30, 2026, the discounted cash flow analysis resulted in an allowance for credit losses on 8 securities.

The following table presents changes in the allowance for expected credit losses on available-for-sale securities:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

4 unchanged sentences

Net increase (decrease) from securities that had an allowance at the beginning of the period

Balance as of March 31,

We recognized $ 1 million of losses on securities for which we no longer had the intent to hold until recovery during the first three months of 2026.

No such losses were recognized during the first three months of 2025.

As of March 31, 2026, in addition to the securities included in the allowance for credit losses, the fixed income portfolio contained 1,328 securities with an unrealized loss position for which an allowance for credit losses had not been recorded.

Balance as of June 30,

We recognized $ 1 million of losses on securities for which we no longer had the intent to hold until recovery during the first six months of 2026, compared to less than $ 1 million during the first six months of 2025.

As of June 30, 2026, in addition to the securities included in the allowance for credit losses, the fixed income portfolio contained 1,347 securities with an unrealized loss position for which an allowance for credit losses had not been recorded.

The $ 156 million in associated unrealized losses represents 4 percent of the fixed income portfolio’s cost basis and 3 percent of total invested assets.

Isolated to these securities, unrealized losses increased through the first three months of 2026, as interest rates increased during the period.

Isolated to these securities, unrealized losses increased through the first six months of 2026, as interest rates increased during the period.

Of the total 1,347 securities, 743 have been in an unrealized loss position for 12 consecutive months or longer.

The following table illustrates the total value of fixed income securities that were in an unrealized loss position as of March 31, 2026 and December 31, 2025 after factoring in the allowance for credit losses.

The following table illustrates the total value of fixed income securities that were in an unrealized loss position after factoring in the allowance for credit losses.

All fixed income securities continue to pay the expected coupon payments and we believe we will recover the amortized cost basis of available-for-sale securities that remain in an unrealized loss position.

March 31, 2026

June 30, 2026

December 31, 2025

19 unchanged sentences

Non-agency asset-backed, commercial mortgage-backed and mortgage-backed securities

The following table shows the composition of the fixed income securities in unrealized loss positions, after factoring in the allowance for credit losses, at March 31, 2026 by the National Association of Insurance Commissioners (NAIC) rating and the generally equivalent Standard & Poor’s (S&P) and Moody’s ratings.

The following table shows the composition of the fixed income securities in unrealized loss positions, after factoring in the allowance for credit losses, at June 30, 2026 by the National Association of Insurance Commissioners (NAIC) rating and the generally equivalent Standard & Poor’s (S&P) and Moody’s ratings.

The vast majority of the securities are rated by S&P and/or Moody’s.

1 unchanged sentence

Other Invested Assets

We had $ 61 million of other invested assets at March 31, 2026, compared to $ 59 million at December 31, 2025.

We had $ 59 million of other invested assets at June 30, 2026 and December 31, 2025.

Other invested assets include investments in low-income housing tax credit partnerships (LIHTC) and historic tax credit partnerships (HTC), membership in the Federal Home Loan Bank of Chicago (FHLBC), and investments in private funds.

Our LIHTC and

HTC investments are carried at amortized cost and our investment in FHLBC stock is carried at cost.

Our LIHTC and HTC investments are

carried at amortized cost and our investment in FHLBC stock is carried at cost.

Due to the nature of the LIHTC, HTC and our membership in the FHLBC, their carrying amounts approximate fair value.

The private funds are carried at fair value, using each investment’s net asset value.

Our LIHTC interests were $ 13 million at March 31, 2026, compared to $ 14 million at December 31, 2025.

Our LIHTC interests recognized amortization of less than $ 1 million as a component of income tax expense and a total tax benefit of $ 1 million during the first quarter of 2026 and 2025.

Our unfunded commitment for our LIHTC investments was $ 8 million at March 31, 2026 and will be paid out in installments through 2040.

Our HTC investment had a balance of $ 10 million at March 31, 2026, compared to $ 11 million at December 31, 2025.

Our HTC investment recognized less than $ 1 million of amortization as a component of income tax expense and a total tax benefit of $ 1 million during the first quarter of 2026, the same as in 2025.

Our unfunded commitment for our HTC investments was $ 4 million at March 31, 2026 and will be paid out in installments through 2027.

At March 31, 2026, $ 52 million of investments were pledged as collateral with the FHLBC to ensure timely access to the secured lending facility that ownership of FHLBC stock provides.

At March 31, 2026, $ 50 million of borrowings were outstanding with the FHLBC.

Our investments in private funds totaled $ 19 million at March 31, 2026, up from $ 18 million at December 31, 2025, and had $ 2 million of associated unfunded commitments at March 31, 2026.

Our LIHTC interests were $ 13 million at June 30, 2026, compared to $ 14 million at December 31, 2025.

Our LIHTC interests recognized amortization of $ 1 million as a component of income tax expense and a total tax benefit of $ 1 million during the second quarter of 2026 and 2025.

For the six months ended June 30, 2026 and 2025, our LIHTC interests recognized amortization of $ 1 million and a total tax benefit of $ 1 million.

Our unfunded commitment for our LIHTC investments was $ 7 million at June 30, 2026 and will be paid out in installments through 2040.

Our HTC investment had a balance of $ 9 million at June 30, 2026, compared to $ 11 million at December 31, 2025.

Our HTC investment recognized $ 1 million of amortization as a component of income tax expense and a total tax benefit of $ 1 million during the second quarter of 2026, the same as in 2025.

For the six months ended June 30, 2026 and 2025, our HTC investment recognized amortization of $ 1 million compared to $ 2 million during the same period in 2025.

Our HTC investment recognized a total tax benefit of $ 2 million in each of 2026 and 2025.

Our unfunded commitment for our HTC investments was $ 4 million at June 30, 2026 and will be paid out in installments through 2027.

Our investments in private funds totaled $ 17 million at June 30, 2026, down from $ 18 million at December 31, 2025, and had $ 2 million of associated unfunded commitments at June 30, 2026.

Our interest in private funds is generally restricted from being transferred or otherwise redeemed without prior consent by the respective entities, and the timed dissolution of the partnerships would trigger redemption.

1 unchanged sentence

Our investment in Prime Holdings Insurance Services, Inc.

was $ 56 million at March 31, 2026, compared to $ 54 million at December 31, 2025.

was $ 58 million at June 30, 2026, compared to $ 54 million at December 31, 2025.

Cash and Short-Term Investments

2 unchanged sentences

Short-term investments are carried at cost, which approximates fair value.

We had a cash and short-term investment balance of $ 49 million and $ 386 million, respectively, at March 31, 2026, compared to $ 52 million and $ 121 million, respectively, at December 31, 2025.

Outstanding debt totaled $ 347 million as of March 31, 2026, consisting of $ 297 million of long-term debt, net of unamortized discount and debt issuance costs, and $ 50 million of short-term debt.

We had a cash and short-term investment balance of $ 32 million and $ 206 million, respectively, at June 30, 2026, compared to $ 52 million and $ 121 million, respectively, at December 31, 2025.

Outstanding debt totaled $ 297 million as of June 30, 2026 and consisted of long-term debt, net of unamortized discount and debt issuance costs.

On March 3, 2026, we completed a public debt offering, issuing $ 300 million of senior notes maturing June 1, 2036 , with interest payable semi-annually at a rate of 5.375 percent.

1 unchanged sentence

The discount is being amortized to interest expense over the life of the debt using the effective interest method.

The average rate on long-term debt was 5.38 percent for the three months ended March 31, 2026.

The estimated fair value of the senior notes was $ 288 million as of March 31, 2026.

The average rate on long-term debt was 5.38 percent for the six months ended June 30, 2026.

The estimated fair value of the senior notes was $ 293 million as of June 30, 2026.

The fair value of our long-term debt is based on limited observable prices and is therefore classified as a Level 2 liability within the fair value hierarchy.

5 unchanged sentences

The amended agreement provides borrowing capacity of $ 150 million and may be increased to $ 200 million under certain conditions.

On November 12, 2025, we borrowed $ 50 million from the Federal Home Loan Bank of Chicago (FHLBC), which replaced the $ 50 million borrowed in 2024.

The borrowing matures on November 12, 2026 , but may be repaid early at set quarterly dates.

Interest is paid monthly at an annualized rate of 4.21 percent.

Due to the lack of marketability and short tenor of our short-term borrowings, its fair value approximates carrying value.

The average rate on short-term debt was 4.61 percent during the first quarter of 2026, compared to 5.18 percent during the first quarter of 2025.

The weighted average interest rate on short-term debt outstanding was 4.21 percent as of March 31, 2026.

On May 12, 2026, we repaid $ 50 million that was borrowed from the Federal Home Loan Bank of Chicago (FHLBC) on November 12, 2025.

While the borrowing was outstanding, interest was paid monthly at an annualized rate of 4.21 percent.

The average rate on short-term debt was 4.52 percent during the first six months of 2026, compared to 5.18 percent during the first six months of 2025.

HISTORICAL LOSS AND LAE DEVELOPMENT

The following table is a reconciliation of our unpaid losses and settlement expenses (LAE) for the first three months of 2026 and 2025:

For the Three Months

Ended March 31,

The following table reconciles our unpaid losses and settlement expenses (LAE):

For the Six Months

Ended June 30,

(in thousands)

7 unchanged sentences

Prior accident years

Net unpaid losses and LAE at March 31,

Unpaid losses and LAE at March 31,

For the first three months of 2026, incurred losses and LAE included $ 35 million of favorable development on prior years’ loss reserves, primarily related to accident years 2018, 2019, 2022, 2024 and 2025.

Favorable development was driven by commercial property, marine, executive products, professional services and commercial transportation.

While personal umbrella experienced adverse development, no products had significant adverse development.

For the first three months of 2025, incurred losses and LAE included $ 31 million of favorable development on prior years’ loss reserves, primarily related to accident years 2019 through 2022 and 2024.

Favorable development was driven by marine, surety, commercial property, commercial excess liability, general liability and our mortgage reinsurance program.

Personal umbrella and commercial transportation had adverse development related to auto exposures, but no products experienced significant adverse development.

Our effective tax rate for the three months ended March 31, 2026 was 18.5 percent, compared to 19.6 percent for the same period in 2025.

Effective rates are dependent upon components of pretax earnings and the related tax effects.

The decrease in the effective tax rate for the three-month period in 2026 was primarily due to higher levels of tax credit utilization.

Income tax expense attributable to income from operations for the three-month periods ended March 31, 2026 and 2025 differed from the amounts computed by applying the U.S.

federal tax rate of 21 percent to pretax income by the items detailed in the table below.

In interim periods, income taxes are adjusted to reflect the effective tax rate we anticipate for the year, with adjustments flowing through the other items, net line.

For the Three Months Ended March 31,

Net unpaid losses and LAE at June 30,

Unpaid losses and LAE at June 30,

For the first six months of 2026, incurred losses and LAE included $ 75 million of favorable development on prior years’ loss reserves, primarily related to accident years 2019 through 2022, as well as 2024 and 2025.

Favorable development was primarily driven by commercial property, marine, commercial transportation, executive products, professional services and commercial excess liability.

Although personal umbrella experienced adverse development, no product experienced significant adverse development.

For the first six months of 2025, incurred losses and LAE included $ 59 million of favorable development on prior years’ loss reserves, primarily related to accident years 2019 through 2022 and 2024.

Favorable development was primarily driven by marine, commercial excess liability, surety, commercial property, general liability and our mortgage reinsurance program.

Commercial transportation experienced adverse development related to auto exposures, but no products experienced significant adverse development.

Income tax expense differed from the amounts computed by applying the U.S.

federal tax rate of 21 percent to pretax income as demonstrated in the following table:

For the Three Months Ended June 30,

For the Six Months Ended June 30, 2026

(in thousands)

5 unchanged sentences

Total tax expense

The effective tax rate is dependent upon the composition of pretax earnings and the related tax effects.

The decrease in the effective tax rate was primarily due to the tax deduction related to the $2.00 special dividend paid to our Employee Stock Ownership Plan during the second quarter, as well as greater utilization of tax credits in the first half of the year.

In interim periods, income tax expense is adjusted to reflect the estimated annual effective tax rate, and the resulting adjustments are reflected in other nontaxable or nondeductible items.

We have recorded our deferred tax assets and liabilities using the statutory federal tax rate of 21 percent.

15 unchanged sentences

Compensation expense is based on the probable number of awards expected to vest.

The total compensation expense related to equity awards was $ 2 million in the three-month periods ended March 31, 2026 and 2025.

The total income tax benefit was less than $ 1 million for the three-month periods ended March 31, 2026 and 2025.

Total unrecognized compensation expense relating to outstanding and unvested awards was $ 5 million, which will be recognized over the weighted average vesting period of 2.47 years.

Total compensation expense related to equity awards was $ 2 million and $ 3 million in the three and six-month periods ended June 30, 2026, respectively, compared with $ 2 million and $ 4 million for the corresponding periods in 2025.

The related income tax benefit was less than $ 1 million for the three and six-month periods ended June 30, 2026 and 2025.

As of June 30, 2026, total unrecognized compensation expense related to outstanding and unvested awards was $ 8 million, which will be recognized over the weighted average vesting period of 2.56 years.

Stock Options

3 unchanged sentences

For participants who are retirement eligible, defined by the plan as those individuals whose age and years of service equals 75 or greater, the requisite service period is deemed to be met and options are immediately expensed on the date of grant.

For participants who will become retirement eligible during the vesting period, the requisite service period over which expense is recognized is the period between the grant date and the attainment of retirement eligibility.

For participants who will

become retirement eligible during the vesting period, the requisite service period over which expense is recognized is the period between the grant date and the attainment of retirement eligibility.

Shares issued upon option exercise are newly issued shares.

The following tables summarize option activity for the three-month period ended March 31, 2026:

On May 14, 2026, the board of directors declared a $ 2.00 special cash dividend, payable on June 12, 2026, to shareholders of record at the close of business on May 29, 2026.

To preserve the intrinsic value of the options, the board also approved, pursuant to the terms of our stock option plans, a proportional adjustment to the exercise price of all outstanding non-qualified options equal to the special dividend.

The adjustment did not result in any incremental compensation expense.

The following tables summarize option activity for the six-month period ended June 30, 2026:

Exercise Price

4 unchanged sentences

Options canceled/forfeited

Outstanding options at March 31, 2026

Exercisable options at March 31, 2026

The intrinsic value of options exercised, which is the difference between the fair value and the exercise price, was $ 1 million and $ 2 million during the first three months of 2026 and 2025, respectively.

The fair value of options was estimated using a Black-Scholes based option pricing model with the following weighted average grant-date assumptions and weighted average fair values as of March 31:

Outstanding options at June 30, 2026

Exercisable options at June 30, 2026

The intrinsic value of options exercised, which is the difference between the fair value and the exercise price, was $ 3 million in the first six months of both 2026 and 2025.

The fair value of options was estimated using a Black-Scholes based option pricing model with the following weighted average grant-date assumptions and weighted average fair values as of June 30:

Weighted-average fair value of grants

13 unchanged sentences

In addition, the RSUs have dividend participation, which accrue as additional units and are settled with granted stock units at the end of the vesting period.

The total fair value of restricted stock units that vested was less than $ 1 million during the first three months of 2026, while no RSUs vested in the first three months of 2025.

The total fair value of restricted stock units that vested was $ 2 million and $ 3 million during the first six months of 2026 and 2025, respectively.

Nonvested at January 1, 2026

Nonvested at March 31, 2026

Nonvested at June 30, 2026

OPERATING SEGMENT INFORMATION

The Company’s insurance operations are managed and reported in three operating segments:

property, casualty and surety.

The Company’s chief operating decision maker (CODM) is the chief executive officer.

2 unchanged sentences

Decisions are made based on what is likely to provide the best long-term return to the Company.

Amortization of deferred acquisition costs represents the recognition of commission and premium taxes over the life of insurance polices, in proportion to premium revenue recognized.

Amortization of deferred acquisition costs represents the recognition of commission and premium taxes over the life of insurance policies, in proportion to premium revenue recognized.

The other policy acquisition costs line item includes other expenses associated with underwriting, but that cannot be specifically associated with the successful acquisition of a policy, including, but not limited to, employment costs for underwriters and underwriting support as well as costs for policy acquisition systems.

9 unchanged sentences

For the Three Months

For the Six Months

Net Premiums Earned

Ended March 31,

Ended June 30,

(in thousands)

10 unchanged sentences

The following tables present our operating results by segment, as evaluated by the CODM.

For the Three Months Ended March 31, 2026

For the Three Months Ended June 30, 2026

(in thousands)

2 unchanged sentences

Net realized gains

Net unrealized gains (losses) on equity securities

Net unrealized gains on equity securities

Consolidated revenue

5 unchanged sentences

Depreciation and amortization expense

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

(in thousands)

2 unchanged sentences

Net realized gains

Net unrealized gains (losses) on equity securities

Net unrealized gains on equity securities

Consolidated revenue

5 unchanged sentences

Depreciation and amortization expense

For the Six Months Ended June 30, 2026

(in thousands)

Net premiums earned

Net investment income

Net realized gains

Net unrealized gains on equity securities

Consolidated revenue

Losses and settlement expenses

Amortization of deferred acquisition costs

Other policy acquisition costs

Insurance operating expenses

Segment earnings before income taxes

Depreciation and amortization expense

For the Six Months Ended June 30, 2025

(in thousands)

Net premiums earned

Net investment income

Net realized gains

Net unrealized gains on equity securities

Consolidated revenue

Losses and settlement expenses

Amortization of deferred acquisition costs

Other policy acquisition costs

Insurance operating expenses

Segment earnings before income taxes

Depreciation and amortization expense

The following table reconciles segment earnings before income taxes to earnings before income taxes.

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

(in thousands)

3 unchanged sentences

Net realized gains

Net unrealized gains (losses) on equity securities

Net unrealized gains on equity securities

Interest expense on debt

12 unchanged sentences

The Company’s operating lease obligations are for branch office facilities.

The components of lease expense and other lease-related information, as of and during the three-month periods ended March 31, 2026 and 2025, were as follows:

The components of lease expense and other lease-related information were as follows:

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

(in thousands)

7 unchanged sentences

(in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

3 unchanged sentences

Weighted-average discount rate - operating leases

Future minimum lease payments under non-cancellable leases as of March 31, 2026 were as follows:

Future minimum lease payments under non-cancellable leases were as follows:

(in thousands)

March 31, 2026

June 30, 2026

Total future minimum lease payments

2 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.

What changed 10-Q

Item 1. Financial Statements