What changed in this filing

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Item 1. Financial Statements

2024-07-24 compared with 2024-04-24 · 137 added, 96 removed, 490 unchanged (32% 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)

1 unchanged sentence

Net investment income

Net realized gains

Net realized gains (losses)

Net unrealized gains on equity securities

14 unchanged sentences

Weighted average number of common shares outstanding:

See accompanying notes to the unaudited condensed consolidated interim financial statements.

See accompanying notes to the unaudited condensed consolidated financial statements.

and Subsidiaries

39 unchanged sentences

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

See accompanying notes to the unaudited condensed consolidated interim financial statements.

See accompanying notes to the unaudited condensed consolidated financial statements.

and Subsidiaries

10 unchanged sentences

Balance, March 31, 2023

Other comprehensive earnings (loss), net of tax

Deferred compensation

Share-based compensation

Dividends and dividend equivalents ($ 0.27 per share)

Balance, June 30, 2023

Comprehensive

7 unchanged sentences

Balance, March 31, 2024

See accompanying notes to the unaudited condensed consolidated interim financial statements.

Other comprehensive earnings (loss), net of tax

Deferred compensation

Share-based compensation

Dividends and dividend equivalents ($ 0.29 per share)

Balance, June 30, 2024

See accompanying notes to the unaudited condensed consolidated financial statements.

and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

(in thousands)

18 unchanged sentences

Cash at the beginning of the period

Cash at March 31,

See accompanying notes to the unaudited condensed consolidated interim financial statements.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Cash at June 30,

See accompanying notes to the unaudited condensed consolidated financial statements.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The unaudited condensed consolidated interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X.

Accordingly, they do not include all the disclosures required by GAAP for complete financial statements.

As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with our 2023 Annual Report on Form 10-K.

Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at March 31, 2024 and the results of operations of RLI Corp.

(the Company) and subsidiaries for all periods presented have been made.

The unaudited interim condensed consolidated financial statements of RLI Corp.

(the Company) and subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP).

These condensed consolidated financial statements do not include all the disclosures required by GAAP for annual financial statements and should be read in conjunction with our 2023 Annual Report on Form 10-K.

In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, of a normal and recurring nature, that are necessary for fair financial statement presentation.

The results of operations for any interim period are not necessarily indicative of the operating results for a full year.

The preparation of the unaudited condensed consolidated interim financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated interim financial statements and the reported amounts of revenue and expenses during the period.

The preparation of the unaudited condensed consolidated financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the period.

These estimates are inherently subject to change and actual results could differ significantly from these estimates.

18 unchanged sentences

We analyze the credit risk associated with our reinsurance balances recoverable by monitoring the AM Best and Standard & Poor’s (S&P) ratings of our reinsurers.

In addition, we subject our reinsurance balances recoverable to detailed recoverability tests, including a segment-based analysis using the average default rating percentage by S&P rating, which assists the Company in assessing the sufficiency of its allowance.

We subject our reinsurance balances recoverable to detailed recoverability tests, including a segment-based analysis using the average default rating percentage by S&P rating, which assists the Company in assessing the sufficiency of its allowance.

Additionally, we perform an in-depth reinsurer financial condition analysis prior to the renewal of our reinsurance placements.

1 unchanged sentence

This allowance is reviewed on an ongoing basis to ensure that the amount makes a reasonable provision for reinsurance balances that we may be unable to recover.

Once regulatory action (such as receivership, finding of insolvency, order of conservation or order of liquidation) is taken against a reinsurer, the paid and unpaid recoverable balances for the reinsurer are specifically identified and written off through use of our allowance for estimated unrecoverable amounts from reinsurers.

Once regulatory action (such as receivership, finding of insolvency, order of

conservation or order of liquidation) is taken against a reinsurer, the paid and unpaid recoverable balances for the reinsurer are specifically identified and written off through the use of our allowance for estimated unrecoverable amounts from reinsurers.

When we write-off such a balance, it is done in full.

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

The allowances for uncollectible amounts on paid and unpaid reinsurance balances recoverable were $ 16 million and $ 11 million, respectively, at March 31, 2024 and December 31, 2023.

The allowances for uncollectible amounts on paid and unpaid reinsurance balances recoverable were $ 16 million and $ 11 million, respectively, at June 30, 2024 and December 31, 2023.

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 2024 and less than $ 1 million was recovered.

No write-offs were applied to the allowances in the first six months of 2024 and less than $ 1 million was recovered.

INTANGIBLE ASSETS

The composition of goodwill and intangible assets at March 31, 2024 and December 31, 2023 is detailed in the following table:

The composition of goodwill and intangible assets at June 30, 2024 and December 31, 2023 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, 2024 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, 2024 that would suggest an updated impairment test would be needed for our goodwill and intangible assets.

EARNINGS PER SHARE

3 unchanged sentences

Under these circumstances, the diluted net earnings or net loss per share is computed excluding these items.

The following represents a reconciliation of the numerator and denominator of the basic and diluted EPS computations contained in the unaudited condensed consolidated interim financial statements:

The following represents a reconciliation of the numerator and denominator of the basic and diluted EPS computations contained in the unaudited condensed consolidated financial statements:

For the Three Months

Ended March 31, 2024

Ended March 31, 2023

Ended June 30, 2024

Ended June 30, 2023

(in thousands, except per share data)

6 unchanged sentences

Anti-dilutive securities excluded from diluted EPS

For the Six Months

Ended June 30, 2024

Ended June 30, 2023

(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 $ 3 million for the first quarter of 2024, compared to $ 10 million of tax expense for the same period in 2023.

Unrealized losses, net of tax, recognized in other comprehensive earnings (loss) were $ 13 million for the first three months of 2024, compared to $ 38 million of unrealized gains, net of tax, during the same period last year.

The unrealized losses in the first quarter of 2024 were attributable to an increase in interest rates, which decreased the fair value of securities held in the fixed income portfolio, compared to declining interest rates during the first quarter of 2023, which increased the fair value of fixed income securities.

The following table illustrates the changes in the balance of each component of accumulated other comprehensive earnings (loss) for each period presented in the unaudited condensed consolidated interim financial statements:

Other comprehensive earnings (loss), as shown in the consolidated statements of earnings and comprehensive earnings, is net of tax benefit of $ 2 million for the second quarter of 2024, compared to $ 5 million of tax benefit for the same period in 2023.

For the six-month period ended June 30, 2024, other comprehensive earnings (loss) is net of tax benefit of $ 5 million, compared to $ 5 million of tax expense for the same period in 2023.

Unrealized losses, net of tax, recognized in other comprehensive earnings (loss) were $ 21 million for the first six months of 2024, compared to $ 18 million of unrealized gains, net of tax, during the same period last year.

The unrealized losses in 2024 were attributable to an increase in interest rates, which decreased the fair value of securities held in the fixed income portfolio.

During 2023, modestly tighter credit spreads on relatively steady interest rates increased the fair value of securities held in the fixed income portfolio.

(in thousands)

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

36 unchanged sentences

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

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

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.

10 unchanged sentences

Equity Securities:

As of March 31, 2024, nearly all of our equity holdings were traded on an exchange.

As of June 30, 2024, 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, 2024 and 2023:

The following is a summary of the disposition of fixed income and equity securities for the six-month periods ended June 30, 2024 and 2023:

Gross Realized

10 unchanged sentences

FAIR VALUE MEASUREMENTS

Assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 are summarized below:

As of March 31, 2024

Assets measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 are summarized below:

As of June 30, 2024

Quoted Prices in

8 unchanged sentences

Equity securities

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

As of December 31, 2023

17 unchanged sentences

Sales / Calls / Maturities

Balance as of March 31, 2024

Balance as of June 30, 2024

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, 2024 were as follows:

March 31, 2024

The amortized cost and fair value of available-for-sale fixed income securities by contractual maturity as of June 30, 2024 were as follows:

June 30, 2024

(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, 2024 and December 31, 2023 are presented in the tables below.

Amortized cost does not include the $ 24 million and $ 23 million of accrued interest receivable as of March 31, 2024 and December 31, 2023, respectively.

March 31, 2024

The amortized cost and fair value of available-for-sale securities at June 30, 2024 and December 31, 2023 are presented in the tables below.

Amortized cost does not include the $ 26 million and $ 23 million of accrued interest receivable as of June 30, 2024 and December 31, 2023, respectively.

June 30, 2024

(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, 2024, the discounted cash flow analysis resulted in an allowance for credit losses on 11 securities.

As of June 30, 2024, the discounted cash flow analysis resulted in an allowance for credit losses on 9 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)

3 unchanged sentences

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

Balance as of March 31,

We recognized $ 2 million of losses on securities for which we no longer had the intent to hold until recovery during the first three months of 2023.

No such losses were recognized during the first three months of 2024.

As of March 31, 2024, in addition to the securities included in the allowance for credit losses, the fixed income portfolio contained 1,336 securities with an unrealized loss position for which an allowance for credit losses had not been recorded.

Balance as of June 30,

We recognized $ 2 million of losses on securities for which we no longer had the intent to hold until recovery during the first six months of 2023.

No such losses were recognized during the first six months of 2024.

As of June 30, 2024, in addition to the securities included in the allowance for credit losses, the fixed income portfolio contained 1,366 securities with an unrealized loss position for which an allowance for credit losses had not been recorded.

The $ 236 million in associated unrealized losses represents 7 percent of the fixed income portfolio’s cost basis and 6 percent of total invested assets.

Isolated to these securities, unrealized losses increased slightly through the first three months of 2024, as interest rates increased during the period.

Isolated to these securities, unrealized losses increased slightly through the first six months of 2024, as interest rates increased during the period.

Of the total 1,366 securities, 1,156 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, 2024 and December 31, 2023 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 as of June 30, 2024 and December 31, 2023 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, 2024

June 30, 2024

December 31, 2023

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, 2024 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, 2024 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 $ 59 million of other invested assets at March 31, 2024, compared to $ 59 million at December 31, 2023.

We had $ 55 million of other invested assets at June 30, 2024, compared to $ 59 million at December 31, 2023.

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.

3 unchanged sentences

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

Our LIHTC interests had a balance of $ 9 million at March 31, 2024, compared to $ 10 million on December 31, 2023.

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 first quarter of 2024 and 2023.

Our unfunded commitment for our LIHTC investments was less than $ 1 million at March 31, 2024 and will be paid out in installments through 2035.

Our HTC investment had a balance of $ 12 million at March 31, 2024, compared to $ 13 million at December 31, 2023.

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 first quarter of 2024 and 2023.

As of March 31, 2024, $ 57 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.

As of March 31, 2024, $ 50 million of borrowings were outstanding with the FHLBC.

Our investments in private funds totaled $ 27 million as of March 31, 2024, down from $ 28 million as of December 31, 2023, and had $ 4 million of associated unfunded commitments at March 31, 2024.

Our LIHTC interests had a balance of $ 9 million at June 30, 2024, compared to $ 10 million on December 31, 2023.

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 2024 and 2023.

For the six-months ended June 30, 2024, our LIHTC interests recognized amortization of $ 1 million and a total tax benefit of $ 1 million, compared to $ 2 million of amortization and $ 2 million of tax benefit for the same period in 2023.

Our unfunded commitment for our LIHTC investments was less than $ 1 million at June 30, 2024 and will be paid out in installments through 2035.

Our HTC investment had a balance of $ 11 million at June 30, 2024, compared to $ 13 million at December 31, 2023.

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 2024 and 2023.

For the six-months ended June 30, 2024 and 2023, our HTC investment recognized amortization of $ 2 million and a total tax benefit of $ 3 million.

As of June 30, 2024, $ 57 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.

As of June 30, 2024, $ 50 million of borrowings were outstanding with the FHLBC.

Our investments in private funds totaled $ 25 million as of June 30, 2024, down from $ 28 million as of December 31, 2023, and had $ 4 million of associated unfunded commitments at June 30, 2024.

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.

Investments in Unconsolidated Investees

We had $ 66 million of investments in unconsolidated investees at March 31, 2024, compared to $ 57 million at December 31, 2023.

At March 31, 2024, our investment in Prime Holdings Insurance Services, Inc.

We had $ 67 million of investments in unconsolidated investees at June 30, 2024, compared to $ 57 million at December 31, 2023.

At June 30, 2024, our investment in Prime Holdings Insurance Services, Inc.

(Prime) was $ 67 million and other investments in unconsolidated investees totaled less than $ 1 million.

3 unchanged sentences

Short-term investments are carried at cost.

We had a cash and short-term investment balance of $ 45 million and $ 147 million, respectively, at March 31, 2024, compared to $ 36 million and $ 135 million, respectively, at December 31, 2023.

We had a cash and short-term investment balance of $ 50 million and $ 126 million, respectively, at June 30, 2024, compared to $ 36 million and $ 135 million, respectively, at December 31, 2023.

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 2024 and 2023:

For the Three Months

Ended March 31,

The following table is a reconciliation of our unpaid losses and settlement expenses (LAE) for the first six months of 2024 and 2023:

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 2024, incurred losses and LAE included $ 42 million of favorable development on prior years’ loss reserves, largely from accident years 2016 through 2019 and 2023.

Marine, commercial property, personal umbrella, general liability, executive products, transportation and surety were drivers of the favorable development.

Net unpaid losses and LAE at June 30,

Unpaid losses and LAE at June 30,

For the first six months of 2024, incurred losses and LAE included $ 65 million of favorable development on prior years’ loss reserves, largely from accident years 2016, 2017, 2019, 2020, 2022 and 2023.

Marine, surety, general liability, commercial property, executive products, personal umbrella, professional services and commercial excess were drivers of the favorable development.

No products experienced significant adverse development.

For the first three months of 2023, incurred losses and LAE included $ 52 million of favorable development on prior years’ loss reserves, largely from accident years 2016 and 2018 through 2022.

Marine, general liability, professional services, commercial excess, executive products, personal umbrella, surety and commercial property were drivers of the favorable development.

For the first six months of 2023, incurred losses and LAE included $ 72 million of favorable development on prior years’ loss reserves, largely from accident years 2018 through 2022.

Commercial excess, professional services, surety, general liability, personal umbrella, marine and commercial property were drivers of the favorable development.

No products experienced significant adverse development.

Our effective tax rate for the three months ended March 31, 2024 was 20.1 percent, compared to 19.5 percent for the same period in 2023.

Our effective tax rate for the three and six months ended June 30, 2024 was 20.6 percent and 20.3 percent, respectively, compared to 19.1 percent and 19.4 percent, respectively, for the same periods in 2023.

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

The effective tax rate was higher for the three-month period in 2024, as higher pretax income decreased the percentage impact of tax-favored adjustments.

Income tax expense attributable to income from operations for the three-month period ended March 31, 2024 and 2023 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 below table.

The effective tax rate was higher for the three and six-month periods in 2024 due to lower levels of tax-favored adjustments and higher levels of pretax income, which decreased the percentage impact of tax-favored adjustments.

Income tax expense attributable to income from operations for the three and six-month periods ended June 30, 2024 and 2023 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,

For the Three Months Ended June 30,

For the Six Months Ended June 30, 2024

(in thousands)

25 unchanged sentences

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

The total compensation expense related to equity awards was $ 1.8 million in the three-month period ended March 31, 2024, compared to $ 2.5 million for the same period in 2023.

The total income tax benefit was $ 0.3 million for the three-month period ended March 31, 2024, compared to $ 0.4 million for the same period in 2023.

The total compensation expense related to equity awards was $ 2.2 million and $ 4.0 million in the three and six-month periods ended June 30, 2024, respectively, compared to $ 2.2 million and $ 4.7 million, respectively, for the same periods in 2023.

The total income tax benefit was $ 0.3 million and $ 0.6 million for the three and six-month periods ended June 30, 2024, compared to $ 0.3 million and $ 0.8 million, respectively, for the same periods in 2023.

Total unrecognized compensation expense relating to outstanding and unvested awards was $ 9 million, which will be recognized over the weighted average vesting period of 2.74 years.

6 unchanged sentences

Shares issued upon option exercise are newly issued shares.

The following tables summarize option activity for the three-month period ended March 31, 2024:

The following tables summarize option activity for the six-month period ended June 30, 2024:

Exercise Price

4 unchanged sentences

Options canceled/forfeited

Outstanding options at March 31, 2024

Exercisable options at March 31, 2024

The intrinsic value of options exercised, which is the difference between the fair value and the exercise price, was $ 8 million and $ 11 million during the first three months of 2024 and 2023, 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, 2024

Exercisable options at June 30, 2024

The intrinsic value of options exercised, which is the difference between the fair value and the exercise price, was $ 9 million and $ 16 million during the first six months of 2024 and 2023, 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 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 $ 2 million and $ 1 million during the first six months of 2024 and 2023, respectively.

Nonvested at January 1, 2024

Nonvested at March 31, 2024

Nonvested at June 30, 2024

OPERATING SEGMENT INFORMATION

2 unchanged sentences

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

(in thousands)

1 unchanged sentence

Net investment income

Net realized gains

Net realized gains (losses)

Net unrealized gains on equity securities

3 unchanged sentences

Net investment income

Net realized gains

Net realized gains (losses)

Net unrealized gains on equity securities

5 unchanged sentences

For the Three Months

For the Six Months

Net Premiums Earned

Ended March 31,

Ended June 30,

(in thousands)

19 unchanged sentences

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

The components of lease expense and other lease information as of and during the three-month periods ended March 31, 2024 and 2023 were as follows:

The components of lease expense and other lease information as of and during the three and six-month periods ended June 30, 2024 and 2023 were as follows:

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

(in thousands)

8 unchanged sentences

(in thousands)

March 31, 2024

June 30, 2024

December 31, 2023

3 unchanged sentences

Weighted-average discount rate - operating leases

Future minimum lease payments under non-cancellable leases as of March 31, 2024 were as follows:

Future minimum lease payments under non-cancellable leases as of June 30, 2024 were as follows:

(in thousands)

March 31, 2024

June 30, 2024

Total future minimum lease payments

7 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