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

Loss severity in the property and casualty insurance industry has increased in recent years, principally driven by factors such as distracted driving, larger court judgments, higher jury awards and increasing medical medical and automobile and property repair costs, including increases due to inflation and supply chain disruption. In particular, future cost volatility for automobile replacement costs and repair parts could occur because of exposure to governmental trade policies, including tariffs, or geopolitical events. In addition, many classes of complainants have brought legal actions and proceedings, some of which may be funded by third-party litigation financing, that tend to increase the size of judgments. The propensity of policyholders and third-party claimants to utilize specialized plaintiff firms and litigate and the willingness of courts to expand causes of loss and the size of awards, to eliminate exclusions and to increase coverage limits may result in ultimate settlements of current and future losses that exceed the loss reserves of our insurance subsidiaries.

Our insurance subsidiaries and Donegal Mutual currently conduct business in a limited number of states, with a concentration of business in Pennsylvania, Michigan, Maryland,Delaware, DelawareMaryland and Virginia. Any single catastrophe occurrence or other condition affecting losses in these states could adversely affect the results of operations of our insurance subsidiaries.

Our insurance subsidiaries and Donegal Mutual conduct business in 21 states located primarily in the Mid-Atlantic, Midwestern, Southern and Southwestern states.regions of the country. A substantial portion of their business consists of private passenger and commercial automobile, homeowners, commercial multi-peril and workers’ compensation insurance in Pennsylvania, Michigan, Maryland,Delaware, DelawareMaryland and Virginia. While our insurance subsidiaries and Donegal Mutual actively manage their respective exposure to catastrophes through their underwriting processes and the purchase of reinsurance, a single catastrophic occurrence, destructive weather pattern, general economic trend, terrorist attack, regulatory development or other condition affecting one or more of the states in which our insurance subsidiaries conduct substantial business could materially adversely affect their business, financial condition and results of operations. Common catastrophic events include hurricanes, earthquakes, tornadoes, wind and hailstorms, fires and wildfires, explosions and severe winter storms.

Donegal Mutual is currently in the midst of a multi-year effort to modernize certain of its key infrastructure and applications systems, and the allocation of related costs to our insurance subsidiaries has resulted in an increase to their expense ratio. These new systems are intended to provide various benefits to the member companies of the Donegal Insurance Group, including streamlined workflows and business processes, service enhancements for their agents and policyholders, opportunities to implement new product models and innovative business solutions, greater utilization of data analytics and operational efficiencies. SinceFrom 2020,2020 to 2024, we have implemented five major releases of new systems. In 2025, Donegal Mutual expectsimplemented tothe implementfinal two major releases of new systems for the remaining lines of business the Donegal Insurance Group issues currently and for the conversion of remaining legacy renewal policies of the Donegal Insurance Group. The conversion process will continue into 20262027 as legacy policies renew on a state-by-state rollout schedule. During 2025, Donegal Mutual also began planning for the migration of its claims, billing and policy administration application systems from on-premise versions to cloud-based versions of these applications that we expect will occur in a phased approach over the next two years. Even with Donegal Mutual’s and our best planning and efforts and the involvement of third-party experts, Donegal Mutual may not complete the implementation of these new systems within its planned timeframes or budget. Further, Donegal Mutual’s information technology systems may not deliver the benefits Donegal Mutual and we expect and may fail to keep pace with our competitors’ information technology systems. As a result, Donegal Mutual and our insurance subsidiaries may not have the ability to grow their business and meet their profitability objectives.

While we are currently placing less emphasis on pursuing acquisitions because Donegal Mutual and we believe there are significant opportunities for profitable organic growth, our strategy to grow in part through acquisitions of other insurance companies exposes us to risks that could adversely affect our results of operations and financial condition.

Michigan law requires MICOseveral of our insurance subsidiaries to provide certain medical benefits under the personal injury protection, or PIP, coverage of the personal automobile and commercial automobile policies they it writeswrite in the state of Michigan. Michigan law also requires MICOthose insurance subsidiaries to be a membermembers of the Michigan Catastrophic Claims Association, or MCCA, in order to write automobile insurance. The MCCA receives funding through assessments that its members collect from policyholders in the state and provides reinsurance for PIP claims that exceed a set retention. At December 31, 2024,2025, MICOour insurance subsidiaries had approximately $46.3$45.5 million of reinsurance receivables from MCCA relating to paid and unpaid losses. The MCCA has generated significant operating deficits in past years. While the MCCA generated an increase in surplus in recent years, theand applicable Michigan law allows MCCA boardto approved the return of a significant portion ofassess its accumulatedmember surpluscompanies for all losses and deficits through adjustments to policyholders in the form of cash refundsfuture in early 2022.assessments. Although we currently consider the risk to be remote, should the MCCA be unable to fulfill its payment obligations to MICOour insurance subsidiaries in the future, MICO’sthe financial condition and results of operations of our insurance subsidiaries could be adversely affected.

Donegal Mutual controls the election of all of the members of our board of directors. SevenSix of the eleventen members of our board of directors are also directors of Donegal Mutual. Donegal Mutual and we share the same executive officers. These common directors and executive officers have a fiduciary duty to our stockholders and also have a fiduciary duty to the policyholders of Donegal Mutual. Among the potential conflicts of interest that could arise from these these separate fiduciary duties are the following:

On April 29, 2022, Donegal Mutual disclosed that it will, at its discretion, purchase shares of our Class A common stock and our Class B common stock at market prices prevailing from time to time in the open market subject to the provisions of SEC Rule 10b-18 and in privately negotiated transactions. Such disclosure did not stipulate a maximum number of shares that may be purchased under this program. Donegal Mutual purchased 1,057,282776,332 and 516,6201,057,282 shares of of our Class A common stock during 20242025 and 2023,2024, respectively. Donegal Mutual purchased 43,404 shares of our Class B common stock during 2025. Donegal Mutual did not purchase any shares of our Class B common stock during 2024 or 2023.2024.

Reserve estimates can change over time because of unexpected changes in assumptions related to our insurance subsidiaries’ external environment and, to a lesser extent, assumptions related to our insurance subsidiaries’ internal operations. For example, our insurance subsidiaries have experienced an increase in claims severity and a lengthening of the claim settlement periods on bodily injury claims during the past several years. In addition, the COVID-19 pandemic and related government mandates and restrictions resulted in various changes from historical claims reporting and settlement trends during 2020 and resulted in significant increases in loss costs in subsequentseveral following years due to a a number of factors, including supply chain disruption, higher new and used automobile values, increases in the cost of replacement automobile parts and rising labor rates. These trend changes caused significant disruption to historical loss patterns and givegave rise to greater uncertainty as to the pattern of future loss settlements. Related uncertaintiesUncertainties regarding future trends include social inflation, availability and cost of replacement automobile parts and building materials, availability availability and cost of skilled labor, the rate of specialized plaintiff attorney involvement in claims, plaintiff attorney utilization of litigation financing and the cost of medical technologies and procedures. Assumptions related to our insurance insurance subsidiaries’ external environment include the absence of significant changes in tort law and the legal environment that increase liability exposure, consistency in judicial interpretations of insurance coverage and policy provisions and the rate of loss cost inflation. Internal assumptions include consistency in the recording of premium and loss statistics, consistency in the recording of claims, payment and case reserving methodology, accurate measurement of the impact of rate changes and changes in policy provisions, consistency in the quality and characteristics of business written within a given line of business and consistency in reinsurance coverage and collectability of reinsured losses, among other items. To the extent our insurance subsidiaries determine that underlying factors impacting their assumptions have changed, our insurance subsidiaries make adjustments in their reserves that they consider appropriate for such changes. Accordingly, our insurance insurance subsidiaries’ ultimate liability for unpaid losses and loss expenses will likely differ from the amount recorded at December 31, 2024.2025. For every 1% change in our insurance subsidiaries’ loss and loss expense reserves, net of reinsurance reinsurance recoverable, the effect on our pre-tax results of operations would be approximately $7.0$7.1 million.

Our insurance subsidiaries recognized a decrease in their liability for losses and loss expenses of prior years of $10.3 million, $15.0 million,million and $16.7 million and $44.8 million in 2024,2025, 20232024 and 2022,2023, respectively. Our insurance subsidiaries made no significant changes in their reserving philosophy or claims management personnel, and they have made no significant offsetting changes in estimates that increased or decreased their loss and loss expense reserves in those years. The 2025 development represented 1.5% of the December 31, 2024 net carried reserves and resulted primarily from lower-than-expected loss emergence in all lines of business except other commercial lines (which is primarily commercial umbrella liability) for accident years prior to 2025. The majority of the 2025 development related to decreases in the liability for losses and loss expenses of prior years for Southern and Peninsula. The 2024 development represented 2.2% of the December 31, 2023 net carried reserves and resulted primarily from lower-than-expected loss emergence in the commercial multi-peril, personal automobile and homeowner lines of business, offset partially by higher-than-expected loss emergence in the workers’ compensation and commercial automobile lines of business, for accident years prior to 2024. The majority of the 2024 development related to decreases in the liability for losses and loss expenses of prior years for Atlantic States and MICO. The 2023 development represented 2.5% of the December 31, 2022 net carried reserves and resulted primarily from lower-than-expected loss emergence in the personal automobile and commercial automobile lines of business for accident years prior to 2023. The majority of the 2023 development related to decreases in the liability for losses and loss expenses of prior years for Atlantic States and MICO. The 2022 2023 development represented 7.2%2.5% of the December 31, 20212022 net carried reserves and resulted primarily from lower-than-expected loss emergence in the personal automobile and commercial automobile lines of business for accident years prior to 2022. 2023. The majority of the 20222023 development related to decreases in the liability for losses and loss expenses of prior years for Atlantic States and MICO.

We believe that our focused business strategy has positioned us well for 2026 and beyond. Because our insurance subsidiaries do not prepare GAAP financial statements, we evaluate the performance of our commercial lines and personal lines segments utilizing statutory accounting practices (“SAP”), which include financial measures that reflect the growth trends and underwriting results of our insurance subsidiaries.

The carrying value of our fixed maturity investments represented 94.5% and 95.6% of our total invested assets at December 31, 20242025 and 2023.2024, respectively.

In December 2023, the FASB issued guidance to enhance the transparency and usefulness of income tax disclosures. The guidance requires disclosure of specific categories in the rate reconciliation table and additional additional information for reconciling items that meet a quantitative threshold of equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate. The guidance also requires requires disaggregated disclosure of the amount of income taxes paid for federal, state and foreign taxes. TheWe guidancerefer isto effectiveNote 11- Income Taxes for annualfurther periodsinformation beginningand afterdisclosure Decemberof 15,items 2024.required within the amended and enhanced guidance. The adoption of this guidance willdid not have an impact on our financial position, results of operations or cash flows.

Our business, results of operations and financial condition, and, therefore, the value of our Class A common stock and our Class B common stock, are subject to a number of risks. For a description of certain risks, we refer to “Risk Factors” in our 2025 Annual Report on Form 10-K that we filed with the SECSecurities and Exchange Commission on March 6, 2026. There have been no material changes in the risk factors we disclosed in that Form 10-K Report during the three six months ended MarchJune 31,30, 2026.

Reserve estimates can change over time because of unexpected changes in assumptions related to our insurance subsidiaries’ external environment and, to a lesser extent, assumptions related to our insurance subsidiaries’ internal operations. For example, our insurance subsidiaries have experienced an increase in claims severity and a lengthening of the claim settlement periods on bodily injury claims during the past several years. In addition, the COVID-19 pandemic and related government mandates and restrictions resulted in various changes from historical claims reporting and settlement trends during 2020 and resulted in significant increases in loss costs in subsequent years due to a number of factors, including supply chain disruption, higher new and used automobile values, increases in the cost of replacement automobile parts and rising labor rates. These trend changes caused significant disruption to historical loss patterns and give rise to greater uncertainty as to the pattern of future loss settlements. Related uncertainties regarding future trends include social inflation, availability and cost of replacement automobile parts and building materials (including due to tariffs), availability and cost of skilled labor, the rate of litigation (including specialized plaintiff attorney involvement) in claims, increasing plaintiff attorney utilization of litigation financing and its impact on litigation strategies and the cost of medical technologies and procedures. Assumptions related to our insurance subsidiaries’ external environment include the absence of significant changes in tort law and the legal environment that increase liability exposure, consistency in judicial interpretations of insurance coverage and policy provisions and the rate of loss cost inflation. Internal assumptions include consistency in the recording of premium and loss statistics, consistency in the recording of claims, payment and case reserving methodology, accurate measurement of the impact of rate changes and changes in policy provisions, consistency in the quality and characteristics of business written within a given line of business and consistency in reinsurance coverage and collectability of reinsured losses, among other items. To the extent our insurance subsidiaries determine that underlying factors impacting their assumptions have changed, our insurance subsidiaries make adjustments in their reserves that they consider appropriate for such changes. Accordingly, our insurance subsidiaries’ ultimate liability for unpaid losses and loss expenses will likely differ from the amount recorded at MarchJune 31,30, 2026. At MarchJune 31,30, 2026, for every 1% change in our insurance subsidiaries’ loss and loss expense reserves, net of reinsurance recoverable, the effect on our pre-tax results of operations would be approximately $7.2 million.

Our insurance subsidiaries’ liabilities for losses and loss expenses by major line of business at MarchJune 31,30, 2026 and December 31, 2025 consisted of the following:

The following tables provide reconciliations of our net premiums earned to our net premiums written for the three and six months ended MarchJune 31,30, 2026 and 2025:

The following table presents comparative details with respect to our GAAP and statutory combined ratios for the three and six months ended MarchJune 31,30, 2026 and 2025:

Results of Operations - Three Months Ended MarchJune 31,30, 2026 Compared to Three Months Ended MarchJune 31,30, 2025

Net Premiums Earned. Our insurance subsidiaries’ net premiums earned for the firstsecond quarter of 2026 were $221.4$222.6 million, a decrease of $11.3$9.2 million, or 4.9%, 4.0%, compared to $232.7$231.8 million for the firstsecond quarter of 2025, primarily reflecting lower new business writings, offset partially by solid premium retention and renewal premium increasesincreases, offset partially by modestly higher new business writings in the preceding twelve-month period.

Net Premiums Written. Our insurance subsidiaries’ net premiums written for the firstsecond quarter of 2026 were $239.3$226.4 million, a decrease of $7.8$7.4 million, or 3.2%, from the $247.1 $233.8 million of net premiums written for the firstsecond quarter of 2025. Commercial lines net premiums written increased $3.5$1.2 million, or 2.2%,0.8%, for the firstsecond quarter of 2026 compared to the firstsecond quarter of 2025. Personal lines net premiums written decreased $11.3$8.6 million, or 13.1%,9.7%, for the firstsecond quarter of 2026 compared to the firstsecond quarter of 2025. We attribute the increase in commercial lines net premiums written primarily to new business writings, solidoffset retentionpartially andby a continuation lower level of renewal premium increases inand lines other than workers’ compensation.retention. We attribute the decrease in personal lines net premiums written primarily to lower new business writings,attrition, offset partially by modest renewal premium rate increases and solid retention.incremental growth in new business writings. We believe that the decrease in personal lines net premiums written will gradually taper over the course of 2026 as actions we have taken to slow and eventually reverse the decline take effect.

Investment Income. Our net investment income was $14.3$14.5 million for the firstsecond quarter of 2026, an increase of $2.3 $2.0 million, or 19.2%,15.6%, compared to $12.0 $12.5 million for the firstsecond quarter of 2025. We attribute the increase primarily to an increase in the average investment yield and higher average invested assets relative to the firstsecond quarter of 2025.

Net Investment Losses.Gains. Net investment lossesgains for the firstsecond quarter of 2026 and 2025 were $479,224$3.3 million and $470,861,$1.5 million, respectively. The net investment lossesgains for the firstsecond quarter of 2026 and 2025 were primarily related to decreasesunrealized gains in the marketfair value of the equity securities we held at June 30, 2026 and 2025, offset partially by net realized investment losses on the endsale of theavailable-for-sale respectivefixed-maturity periods.securities. We did not recognize any impairment losses for individual securities in our investment portfolio during the firstsecond quarter of 2026 or 2025.

Losses and Loss Expenses. Our insurance subsidiaries’ loss ratio, which is the ratio of incurred losses and loss expenses to premiums earned, was 64.1%59.5% for the firstsecond quarter of 2026, ana increasedecrease from our insurance subsidiaries’ loss ratio of 56.7%65.1% for the firstsecond quarter of 2025. The core loss ratio, which excludes weather-related losses, large fire losses and net development of reserves for losses incurred in prior accident years, was 53.4%51.0% for the firstsecond quarter of 2026, aan decreaseincrease from the core loss ratio of 54.2%50.1% for the firstsecond quarter of 2025. For the commercial lines segment, the core loss ratio of 57.6%54.0% for the firstsecond quarter of 2026 remained relatively decreasedconsistent fromwith 58.3%54.5% for the firstsecond quarter of 2025. For the personal lines segment, the core loss ratio of 46.5%45.8% for the firstsecond quarter of 2026 decreasedincreased modestly from 48.7%43.3% for the firstsecond quarter of 2025. We attribute the decrease in the commercial lines core loss ratio primarily as a result ofto ongoing premium rate increases in all lines except workers’workers' compensation. We attribute the decreaseincrease in the personal lines core loss ratio primarily to the favorable impact oflower premium rate increasesincreases, onas netrate premiumsadequacy has earnedlargely been achieved for the personal lines segment. Weather-related losses were $17.2$11.9 million, or 7.85.3 percentage points of the loss ratio, for the firstsecond quarter of 2026, compared to $8.6$25.8 million, or 3.711.1 percentage points of the loss ratio, for the firstsecond quarter of 2025. The impact of weather-related loss activity to the loss ratio for the firstsecond quarter of 2026 was highermuch lower than our previous five-year average of first$20.3 million, or 9.4 percentage points of the loss ratio, for second quarter weather-related losses. Large fire losses, which we define as individual fire losses in excess of $50,000, for the firstsecond quarter of 2026 were $12.2$15.0 million, or 5.56.7 percentage points of the loss ratio, compared to $7.7$12.1 million, or 3.3 5.2 percentage points of the loss ratio, for the firstsecond quarter of 2025. We attribute the increase to higher losscommercial frequencyproperty andfire severitylosses that were partially offset by a decrease in homeowners fire losses compared to the prior-year quarter. Our insurance subsidiaries’ commercial lines loss ratio was 68.8%63.2% for the firstsecond quarter of 2026, compared to 59.7%65.8% for the firstsecond quarter of 2025, primarily due to increasesdecreases in the commercial multi-perilautomobile, workers' compensation and other commercial lines of business loss ratios, offset partially by aan decreaseincrease in the workers’commercial compensationmulti-peril line of business loss ratio. The personal lines loss ratio of our insurance subsidiaries increaseddecreased to 56.4%53.2% for the first second quarter of 2026, compared to 52.5%64.1% for the firstsecond quarter of 2025. We attribute this increasedecrease primarily to anthe increasedecrease in the homeowners and other personal lines of business loss ratios, offset partially by a decrease in the personal automobile line of business loss ratio. Our insurance subsidiaries experienced net favorable loss reserve development of $7.8 million for the firstsecond quarter of 2026 of $5.7 million that decreased the loss ratio by 2.63.5 percentage points, compared to $10.5$3.0 million of net favorable loss reserve development that decreased the loss ratio for the firstsecond quarter of 2025 by 4.51.3 percentage points. Our insurance subsidiaries experienced favorable development primarily in the personal automobile, workers' compensation, commercial automobile and personal automobile lines of business, offset partially by unfavorable development in the commercial multi-peril and commercial other liabilityhomeowners lines of business for the firstsecond quarter of 2026.

Underwriting Expenses. The expense ratio for an insurance company is the ratio of policy acquisition costs and other underwriting expenses to premiums earned. The expense ratio of our insurance subsidiaries was 35.4%35.8% for the firstsecond quarter of 2026, compared to 34.6%32.2% for the firstsecond quarter of 2025. The increase in the expense ratio primarily reflected the impactimpacts of higher underwriting-based incentive costs for agents and employees as well as higher technology-related expenses and a lower base of lower net premiums earned upon which the ratio is based. The impact from allocated costs from Donegal Mutual to our insurance subsidiaries relatedcompared to the ongoingprior-year systems modernization project represented approximately 1.6 percentage points of the expense ratio for the first quarter of 2026. We expect that the expense ratio impact of allocated costs related to the project will be 1.4 percentage points for the full year of 2026, subsiding gradually over the next several years.quarter.

Combined Ratio. The combined ratio represents the sum of the loss ratio, the expense ratio and the dividend ratio, which is the ratio of policyholder dividends incurred to premiums earned. Our insurance subsidiaries’ combined ratios were 99.8%95.6% and 91.6%97.7% for the firstsecond quarter of 2026 and 2025, respectively. We attribute the increasedecrease in the combined ratio primarily to increasesa decrease in the loss and ratio, partially offset by an increase in the expense ratiosratio for the firstsecond quarter of 2026 compared to the firstsecond quarter of 2025.

Income Tax Expense. We recorded income tax expense of $2.6$5.2 million for the firstsecond quarter of 2026, representing an effective tax rate of 18.5%.19.0%. We recorded income tax expense of $6.0$3.6 million for the firstsecond quarter of 2025, representing an effective tax rate of 19.1%.17.4%. The income tax expense for the firstsecond quarter of 2026 and 2025 represented estimates based on our projected annual taxable income and effective tax rates.

Net Income and Net Income Per Share. Our net income for the firstsecond quarter of 2026 was $11.5$22.3 million, or $.31$.60 per share of Class A common stock on a diluted basis and $.29$.55 per share of Class B common stock, compared to $25.2$16.9 million, or $.71$.46 per share of Class A common stock on a diluted basis and $.65$.43 per share of Class B common stock, for the firstsecond quarter of 2025. We had 31.431.5 million and 30.430.9 million Class A shares outstanding at MarchJune 31,30, 2026 and 2025, respectively. We had 5.6 million Class B shares outstanding at the end of both periods.

We have historically generated sufficient net positive cash flow to fund our commitments and add to our investment portfolio, thereby increasing future investment returns. The impact of the pooling agreement between Donegal Mutual and Atlantic States has historically been cash-flow positive because of the consistent underwriting profitability of the underwriting pool. Because we settle the pool monthly, our cash flows are substantially similar to the cash flows that would result from the underwriting of direct business. We maintain a high degree of liquidity in our investment portfolio in the form of marketable fixed maturities, equity securities and short-term investments. We structure our fixed-maturity investment portfolio following a “laddering” approach, so that projected cash flows from investment income and principal maturities are evenly distributed from a timing perspective. This laddering approach provides an additional measure of liquidity to meet our obligations and the obligations of our insurance subsidiaries should an unexpected variation occur in the future. Net cash flows provided by operating activities in the first threesix months of 2026 and 2025 were $20.2$26.1 million and $25.7$37.9 million, respectively.

At MarchJune 31,30, 2026, we had no outstanding borrowings under our line of credit with M&T and had the ability to borrow up to $20.0 million at an interest rate equal to the then-current Term SOFR rate plus 2.11%. At MarchJune 31,30, 2026, Atlantic States had a $35.0 million outstanding advance with the FHLB of Pittsburgh that carries a fixed interest rate of 3.806% and is due in September 2026. We discuss in Note 7 – Borrowings our estimate of the timing of the amounts payable for the borrowings under our lines of credit based on their contractual maturities.

On July 18, 2013, our board of directors authorized a share repurchase program pursuant to which we have the authority to purchase up to 500,000 shares of our Class A common stock at prices prevailing from time to time in the open market subject to the provisions of applicable rules of the SECSecurities and Exchange Commission Rule 10b-18 and in privately negotiated transactions. We did not purchase any shares of our Class A common stock under this program during the threesix months ended MarchJune 31,30, 2026 or 2025. We have purchased a total of 57,658 shares of our Class A common stock under this program from its inception through MarchJune 31,30, 2026.

On AprilJuly 16, 2026, our board of directors declared quarterly cash dividends of $0.1925 per share of our Class A common stock and $0.175 per share of our Class B common stock, payable on MayAugust 15,14, 2026 to our stockholders of record as of the close of business on MayJuly 1,31, 2026. There are no restrictions on our payment of dividends to our stockholders, although there are restrictions under applicable state state laws on the payment of dividends from our insurance subsidiaries to us, which is a significant source of cash for payment of stockholder dividends by us. Our insurance subsidiaries are required by law to maintain minimum surplus on a statutory basis basis and are subject to regulations under which their payment of dividends from statutory surplus is restricted and may require prior approval of their domiciliary insurance regulatory authorities. Our insurance subsidiaries are also subject to risk based based capital (“RBC”) requirements. The amount of statutory capital and surplus necessary for our insurance subsidiaries to satisfy regulatory requirements, including the RBC requirements, was not significant in relation to our insurance subsidiaries’ subsidiaries’ statutory capital and surplus at December 31, 2025. Our insurance subsidiaries did not pay any dividends to us during the first threesix months of 2026. Amounts remaining available for distribution to us as dividends from our insurance subsidiaries subsidiaries without prior approval of their domiciliary insurance regulatory authorities in 2026 are approximately $50.8 million from Atlantic States, $10.2 million from MICO and $5.4 million from Peninsula, or a total of approximately $66.4 million.

At MarchJune 31,30, 2026, we had no material commitments for capital expenditures.