6. INSURANCE CONTRACTS

Premiums

The effect of reinsurance on premiums written and earned were as follows for the periods presented:


	Three Months Ended June 30,
	2026				2025
	Written		Earned		Written		Earned
Direct	$	92,200	$	82,782	$	89,849	$	79,600
Assumed	2,502		7,711		6,399		6,974
Ceded	71,560		68,744		81,041		70,371
Net premiums	$	23,142	$	21,749	$	15,207	$	16,203

	Six Months Ended June 30,
	2026				2025
	Written		Earned		Written		Earned
Direct	$	187,243	$	167,785	$	167,040	$	160,046
Assumed	11,175		14,920		16,123		14,503
Ceded	142,826		140,955		149,952		142,669
Net premiums	$	55,592	$	41,750	$	33,211	$	31,881

Premium Receivables, including Credit Impairments

Premium receivables at June 30, 2026 and December 31, 2025, were $94,635 and $75,085, respectively. Management evaluates premium receivables for expected credit losses ("credit impairment") in accordance with the CECL standard, which is further described in Note 2. Basis of Presentation and Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Below are rollforwards of the premium receivable allowance for credit losses for the periods presented.



Six Months Ended June 30,	2026		2025
Beginning balance	$	500	$	142
Current period provision	—		58
Write-offs of the allowance	—		—
Recoveries of previously written-off amounts	—		—
Ending balance	$	500	$	200

At June 30, 2026 and December 31, 2025, $8,260 and $6,781, respectively, of premiums were past due.

Loss and Loss Adjustment Expense Reserves

Below are the loss and loss reserve expense rollforwards, net of subrogation recoverable and reinsurance, for the periods presented:


Six Months Ended June 30,	2026		2025
Beginning gross loss and loss adjustment expense reserves	$	459,990	$	349,062
Reinsurance recoverable	375,722		270,081
Beginning balance of net loss and loss adjustment expense reserves	84,268		78,981
Losses and loss expenses:
Current year	23,949		21,144
Prior years	9,076		330
Total (1)	33,025		21,474
Loss and loss adjustment expenses paid (recovered):
Current year	2,249		2,745
Prior years	23,460		19,155
Total	25,709		21,900

Ending net loss and loss adjustment expense reserves	91,584		78,555
Reinsurance recoverable (2)	407,459		305,414
Ending gross loss and loss adjustment expense reserves	$	499,043	$	383,969

(1)Total losses and loss adjustment expense (benefit) is net of $(95,878) and $(89,957) for the six months ended June 30, 2026 and 2025, respectively, related to ceded reinsurance.

(2)Represents reinsurance recoverable on future loss and loss adjustment expense. Additionally, the Balance Sheet line "Reinsurance recoverable on paid and unpaid losses" includes reinsurance recoverables of $88,194 and $71,031 as of June 30, 2026 and 2025, respectively, related to previously paid loss and loss adjustment expense.

The unfavorable losses incurred development on prior accident years for the six months ended June 30, 2026, was primarily driven by $2,125 of net losses and $5,787 of LAE (legal expenses) from the settlement during the three months ended March 31, 2026, of a potential litigation matter related to an insurance claim, whereas the unfavorable losses incurred development for prior accident years for the six months ended June 30, 2025, was primarily driven by excess liability claims.

Specialty Property & Casualty Loss Reserves

Claims Development

The following is a summary of loss and loss adjustment expense reserves, including certain components, for the Company’s major product lines by reporting segment at June 30, 2026.


June 30, 2026	Net Loss and Loss Adjustment Expense Reserves		Reinsurance Recoverables on Unpaid Losses (1)		Loss and Loss Adjustment Reserves (1)
Commercial auto	$	19,029	$	120,850	$	139,879
Excess liability	21,721		126,873		148,594
General liability	13,724		51,522		65,246
Workers compensation	20,500		—		20,500
Non-standard personal auto	2,086		189		2,275
Professional liability	3,620		48,564		52,184
Multi-peril / business owners (BOP)	3,912		13,986		17,898
Surety	1,796		11,189		12,985
Unallocated loss adjustment expense reserves	4,971		11,194		16,165
Other	225		23,093		23,317
Total	$	91,584	$	407,459	$	499,043

(1)Other includes $21,229 related to legacy liabilities obtained from the acquisitions of Providence Washington Insurance Company, Greenwood Insurance Company, and Consolidated Specialty Insurance Company. All legacy liabilities remain obligations of affiliates of the sellers through reinsurance and contractual indemnities.

Reinsurance Recoverables, Including Credit Impairments

Everspan’s reinsurance assets, including deferred ceded premiums and reinsurance recoverables on losses, amounted to $643,889 at June 30, 2026. Credit exposure existed at June 30, 2026, with respect to reinsurance recoverables to the extent that any reinsurer may not be able to reimburse Everspan under the terms of these reinsurance arrangements. At June 30, 2026, there were ceded reinsurance balances payable of $93,346 offsetting this credit exposure. Contractually ceded reinsurance payables can only be offset against amounts owed from the same reinsurer in the event that such reinsurer is unable to meet its obligations to reimburse Everspan.

To minimize its credit exposure to losses from reinsurer insolvencies, Everspan (i) is entitled to receive collateral from its reinsurance counterparties in certain reinsurance contracts and (ii) has certain cancellation rights that can be exercised by Everspan in the event of rating agency downgrades of a reinsurer (among other events and circumstances). Everspan held letters of

credit and collateral amounting to $82,174 from its reinsurers at June 30, 2026. For those reinsurance counterparties that do not currently post collateral, Everspan's reinsurers are well capitalized, highly rated, authorized capacity providers. Additionally, while legacy liabilities from the Providence Washington Insurance Company ("PWIC") acquisition and the admitted carriers previously acquired by Everspan on January 3, 2022, (Greenwood Insurance Company and Consolidated Specialty Insurance Company), were fully ceded to certain reinsurers, Everspan also benefits from an unlimited, uncapped indemnity from Enstar Holdings (US) and 21st Century Premier Insurance Company to mitigate any residual risk to these reinsurers.