ASIC 10-K & 10-Q changes, risk factors and insider trading

There have been no material changes in our risk factors in the three months ended MarchJune 31,30, 2026 from those set forth in the section entitled “Risk Factors,” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial condition or future results.

Net realized and unrealized gains (losses) on investments include realized gains and losses which are a function of the difference between the amount received by us on the sale of a security and the security’s cost or amortized cost, as applicable, as well as the change in unrealized gains (losses) on equity securities and unrealized appreciation (depreciation) on securities sold not yet purchased. Net realized and unrealized gains (losses) on investments also includes appreciation on securities, derivative contracts, and foreign currency transactions allocated from the funds underlying the Utility & Infrastructure Investments. Such allocation represents our proportionate share of the Utility & Infrastructure Investments’ net realized gains (losses) of the funds underlying the Utility & Infrastructure Investments which are a function of the difference between the amount received on the sale of a security and the security’s amortized cost as well as change in unrealized appreciation (depreciation) on securities, derivative contracts, and foreign currency transactions.

Three months ended MarchJune 31,30, 2026, compared to three months ended MarchJune 31,30, 2025

(2) For the three months ended MarchJune 31,30, 2026 and 2025, net income attributable to stockholders and adjusted net income attributable to stockholders are annualized to arrive at return on stockholders’ equity and adjusted return on stockholders’ equity.

The following table presents gross written premiums by product for the three months ended MarchJune 31,30, 2026 and 2025:

Our gross written premiums were $142.9$206.8 million for the three months ended MarchJune 31,30, 2026 compared to $116.1$167.5 million for the three months ended MarchJune 31,30, 2025, an increase of approximately $26.8$39.3 million, or 23.1%.23.4%. The increase in both our casualty and property lines was primarily driven by the continued execution of our growth initiatives and increased engagement across our expanding distribution network.

Net written premiums were $118.7$153.4 million for the three months ended MarchJune 31,30, 2026, compared to $89.9$117.3 million for the three months ended MarchJune 31,30, 2025, an increase of approximately $28.8$36.2 million, or 32.1%.30.8%. The increase was primarily attributable to higher gross written premiums as well as a decrease in ceded written premiums as a percentage of gross written premiums, reflecting the reduction in quota share reinsurance within our casualty lines.

Net earned premiums were $105.2$113.8 million for the three months ended MarchJune 31,30, 2026, compared to $78.3$86.9 million for the three months ended MarchJune 31,30, 2025, an increase of approximately $26.9$26.8 million, or 34.4%.30.9%. The increase was primarily due to growth in net written premiums.

Fee income was $2.2$3.4 million for the three months ended MarchJune 31,30, 2026 compared to $0.6$1.5 million for the three months ended MarchJune 31,30, 2025, an increase of approximately $1.7$1.9 million. The increase was driven by the implementation of market-standard policy-related fees that occurred over the course of 2025.

Our loss ratio was 58.8%58.5% for the three months ended MarchJune 31,30, 2026 compared to 59.8%58.0% for the three months ended MarchJune 31,30, 2025. The loss ratio for the three months ended MarchJune 31,30, 2026 benefited from strong performance in our property portfolio. The decrease in the loss ratio increased compared to the three months ended MarchJune 31,30, 20252025, wasreflecting primarilya drivenshift byin morebusiness favorablemix propertytoward results.our Brokerage channel in recent periods and lower catastrophe activity in the prior-year period.

During the three months ended MarchJune 31,30, 2026, prior accident years developed favorably by $0.5$1.0 million, primarily due to lower loss emergence than expected, driven by our property lines. For the three months ended MarchJune 31,30, 2025, there was no development on our net incurred losses for prior periods.

Our losses paid in the three months ended MarchJune 31,30, 2026 and 2025 were $34.2$39.5 million and $32.1$33.8 million, respectively.

The following table summarizes the components of the expense ratio for the three months ended MarchJune 31,30, 2026 and 2025:

(1) Net of fee income of $2.2$3.4 million and $0.6$1.5 million for the three months ended MarchJune 31,30, 2026 and 2025, respectively.

Our expense ratio was 28.6%27.5% for the three months ended MarchJune 31,30, 2026 compared to 31.1%31.0% for the three months ended MarchJune 31,30, 2025. The improvement was driven by a lower policy acquisition ratio and operating expense ratio.

The following tables summarize net investment income and net realized and unrealized gains on investments for the three months ended MarchJune 31,30, 2026 and 2025:

Net investment income was $12.0$12.7 million for the three months ended MarchJune 31,30, 2026, compared to $7.9$11.9 million for the three months ended MarchJune 31,30, 2025, an increase of $4.1$0.8 million, or 52.5%.6.5%. This increase was driven by additional investments in fixed-maturity securities and short-term investments, as well as income from loans to affiliates. Included in net investment income is $0.2 million and $0.5$2.4 million attributable to Utility & Infrastructure Investments, net of investment management fees, for the three months ended MarchJune 31,30, 2026 and 2025, respectively.

Net realized and unrealized gain on investments was $9.5$18.6 million for the three months ended MarchJune 31,30, 2026, compared to a net realized and unrealized lossgain of $4.6$1.4 million for the three months ended MarchJune 31,30, 2025, an increase of $14.1$17.2 million. This increase was primarily driven by higher realized and unrealized gains on the Utility and Infrastructure investments compared to the prior-year period.

Interest expense was $4 thousand for the three months ended MarchJune 31,30, 2026 compared to $447 thousand for the three months ended MarchJune 31,30, 2025, a decrease of approximately $443.0$443 thousand, or 99.1%, driven by the termination of our letters of credit in 2025.

Income tax expense was $7.1$9.3 million for the three months ended MarchJune 31,30, 2026 compared to $2.2$4.7 million for the three months ended MarchJune 31,30, 2025, an increase of approximately $4.8$4.6 million. Our effective tax rate was 20.6%20.0% for the three months ended MarchJune 31,30, 2026 compared to 20.9%21.1% for the three months ended MarchJune 31,30, 2025. The decrease in our effective tax rate was primarily driven by an increase in non-taxable pass-through income.

Underwriting income for the three and six months ended MarchJune 31,30, 2026 and 2025 reconciles to income before income taxes as follows:

Adjusted net income attributable to stockholders for the three and six months ended MarchJune 31,30, 2026 and 2025 reconciles to net income attributable to stockholders as follows:

(1)In the three and six months ended MarchJune 31,30, 2026 and 2025, other non-operating expenses includes share-based compensation expenses recorded by us related to our IPO.

Adjusted return on stockholders’ equity for the three and six months ended MarchJune 31,30, 2026 and 2025 reconciles to return on stockholders’ equity as follows:

(1) For the three and six months ended MarchJune 31,30, 2026 and 2025, net income and adjusted net income are annualized to arrive at return on stockholders’ equity and adjusted return on stockholders’ equity.

Adjusted diluted earnings per share for the three and six months ended MarchJune 31,30, 2026 and 2025 reconciles to diluted earnings per share as follows:

On February 12, 2026, our Board of Directors authorized a share repurchase program under which the Company may repurchase up to $50 million worth of its outstanding common stock. The timing and amount of repurchases, if any, will depend on market conditions, capital requirements, and other factors. The authorization does not obligate the Company to repurchase any specific number of shares and may be suspended or discontinued at any time. AsDuring the three months ended June 30, 2026, the Company repurchased 142,686 shares of Marchcommon 31,stock 2026,under noits sharesshare hadrepurchase beenprogram for $2.8 million. The average cost per share repurchased was $19.87. The cost of treasury stock acquired pursuant to common share repurchases includes the 1% excise tax imposed on common share repurchase activity, net of common share issuances, under the program,Inflation andReduction $50.0Act of 2022. As of June 30, 2026, the Company had $47.2 million remainedof availablecapacity forremaining futureunder repurchases.its share repurchase program.

Our net cash provided by operating activities was approximately $42.0$80.9 million for the threesix months ended MarchJune 31,30, 2026, compared to $21.0$50.8 million for the threesix months ended MarchJune 31,30, 2025. The increase was primarily driven by growth of our business and the timing of premium receipts, claim payments, reinsurance recoveries and operating payables.

Net cash used in investing activities was approximately $22.2$72.4 million for the threesix months ended MarchJune 31,30, 2026, compared to net$185.9 million for the six months ended June 30, 2025. In both periods, cash used in investing activities of approximately $21.7 million for the three months ended March 31, 2025. Cash used in investing activities reflectsreflected the continued deployment of cash generated from operating activities into investmentsinvestments. Cash used in investing activities during the threesix months ended MarchJune 31,30, 20262025 andalso 2025.reflected the investment of proceeds from our initial public offering.

Net cash used in financing activities was approximately $2.1$4.9 million for the threesix months ended MarchJune 31,30, 2026, andwhich consisted of $2.8 million of share repurchases and the payment of a $2.1 million capital distribution to the Utility General Partner. CashThe distribution was accrued as a withdrawal payable as of December 31, 2025 and accordingly is not reflected as a reduction of non-controlling interest during the six months ended June 30, 2026. Net cash provided by financing activities of $13.1$132.0 million for the threesix months ended MarchJune 31,30, 2025 primarily consisted of net proceeds from our IPO as well as a capital contribution from ZFSG, partially offset by the payment of a capital distribution to the Utility General Partner.