Liability for Unpaid Losses and Loss Adjustment Expenses

6 Months Ended

Jun. 30, 2026

The liability for unpaid losses and loss adjustment expenses (“LAE”) includes an amount determined from loss

reports and individual cases and an amount, based on past experience, for losses incurred but not yet reported.

The following table provides a reconciliation of changes in the liability for unpaid losses and LAE:


	Six Months Ended June 30,
	2026	2025
Unpaid Loss and LAE beginning of period	$266,591	$475,708
Less: Reinsurance recoverables on unpaid losses and LAE	192,336	415,086
Net unpaid loss and LAE at beginning of period	74,255	60,622
Add: Losses and LAE, net of reinsurance, incurred related to:
Current period	64,876	43,168
Prior period	—	(1,117)
Total net losses and LAE incurred	64,876	42,051
Less: Losses and LAE paid, net of reinsurance, related to:
Current period	19,044	13,528
Prior period	26,204	24,838
Total net paid losses and LAE	45,248	38,366
Unpaid loss and LAE, net of reinsurance at end of period	93,883	64,307
Add: Reinsurance recoverables on unpaid losses and LAE	160,295	314,479
Unpaid loss and LAE at end of period	$254,178	$378,786

During the six months ended June 30, 2026, the liability for unpaid losses and LAE, net of reinsurance, increased by

$19,628 from $74,255 as of December 31, 2025 to $93,883 as of June 30, 2026. The increase was primarily as a

result of an increase in reserves related to non-catastrophe storms of $8,976, with an additional increase in reserves

for Citizens, a Florida state-supported insurer, assumed business of $9,304.

Prior period development includes changes in estimated losses and LAE for all events occurring in prior periods

including hurricanes and other weather events. In 2026, the Company’s net loss and LAE incurred for the six months

ended June 30, 2026 reflected no prior year development. These adjustments are generally the result of ongoing

analysis of recent loss development trends. Original estimates are decreased or increased as additional information

becomes known regarding individual claims.