In order to limit the Company’s potential exposure to individual risks and catastrophic events, the Company

purchases reinsurance from third-party reinsurers as well as the Florida Hurricane Catastrophe Fund (“FHCF”), a

state-mandated catastrophe fund for Florida policies only. All of the Company’s reinsurance partners were rated

“A-” or higher by A.M. Best Company, Inc. (“A.M. Best”) or “BBB” or higher by Standard & Poor’s Financial

Services LLC (“S&P”) or were fully collateralized.

In 2024, the Company also began participating in a “take-out program” through which the Company assumes

insurance policies held by Citizens. The take-out program is a legislatively created program designed to reduce the

state’s risk exposure by encouraging private companies to assume policies from Citizens.

2026 – 2027 Reinsurance Program

Catastrophe Excess of Loss Reinsurance

Effective June 1, 2026, the Company entered into catastrophe excess of loss reinsurance agreements covering its

insurance subsidiary, AIIC. The catastrophe reinsurance program is indemnity-based and includes a combination of

coverage from traditional reinsurers, the FHCF, Insurance Linked Securities (“ILS”) investors through Integrity Re

III Ltd., and the Company’s segregated cell captive reinsurer.

The 2026–2027 reinsurance program provides third-party reinsurance coverage of $2.25 billion for a single

catastrophic event, with total third-party coverage of $2.99 billion across all occurrences, representing a 15.8%

increase over the prior year’s treaty limit. The first event tower, including retentions, is equal to a 1-in-130 year

probable maximum loss level, consistent with last year’s program. The Company’s net retention is $35.0 million for

the first event, $20.0 million for the second event, and $10.0 million for each of the third and fourth events.

The FHCF covers Florida-admitted risks only, and the Company elected to participate at 90% for the 2026 hurricane

season, consistent with the prior year, totaling $572.7 million of limit.

The ILS market represented $825.0 million of limit with $565.0 million reflective of our catastrophe bonds issued in

2025 which expire in May of 2027, and new catastrophe bonds totaling $260.0 million issued by Integrity Re III Ltd,

a Bermuda-based special purpose insurer and unrelated party, as part of the program, marking the ninth ILS

transaction sponsored by the Company.

All reinsurers participating in the program are either rated “A-” or higher by A.M. Best or are fully collateralized, to

mitigate counterparty credit risk. The entire program is structured without parametric covers and is fully indemnity-

based.

Total net consolidated catastrophe reinsurance premiums ceded to third parties are expected to total $430.0 -

$440.0 million for the 2026 treaty year.

Net Quota Share Reinsurance

Effective December 31, 2025 to December 31, 2026, the Company entered into quota share agreements that

generally provide coverage for 25% of all losses net of other reinsurance coverages, the aggregate of which shall not

exceed 116.6% of net ceded premiums earned. The reinsurers’ net liability on catastrophe losses shall not exceed

2.5% of gross premiums earned net of inuring reinsurance premium. In the determination of ceded premiums under

the agreements, the maximum amount allowed by the reinsurers for other inuring reinsurance coverages is limited to

31% of gross premiums earned for the term of the contract. The reinsurers allow the Company a provisional ceding

commission of 68.25% to 69.00%, depending on the reinsurer, that adjusts based on loss experience.

The Company remains contingently liable in the event the reinsuring companies do not meet their obligations under

these reinsurance contracts. Given the quality of the reinsuring companies, management believes this possibility to

be remote. See Note 8 – “Liability for Unpaid Losses and Loss Adjustment Expenses” for recoveries due from

reinsurers relating to paid and unpaid losses and LAE under these treaties.

Effect of Reinsurance

The effects of reinsurance on premiums written and earned were as follows:


	Three Months Ended June 30,
	2026		2025
	Written	Earned	Written	Earned
Direct premiums	$326,416	$234,415	$270,741	$179,515
Assumed Premiums	176	7,836	16,254	44,225
Gross Premiums	326,592	242,251	286,995	223,740
Ceded premiums	(507,923)	(137,555)	(549,916)	(157,571)
Net premiums	$(181,331)	$104,696	$(262,921)	$66,169


	Six Months Ended June 30,
	2026		2025
	Written	Earned	Written	Earned
Direct premiums	$545,256	$452,419	$451,666	$346,286
Assumed Premiums	1,340	20,604	47,479	87,610
Gross Premiums	546,596	473,023	499,145	433,896
Ceded premiums	(546,331)	(286,119)	(608,670)	(302,325)
Net premiums	$265	$186,904	$(109,525)	$131,571

The Company’s reinsurance arrangements affected certain items in the condensed consolidated statements of

operations and comprehensive income for the three and six months ended June 30, 2026 and 2025 by the following


	Three Months Ended June 30,
	2026	2025
Ceded premiums earned	$(137,555)	$(157,571)
Ceded losses and loss adjustment expenses incurred	(2,276)	21,189
Ceded policy acquisition expenses	26,983	6,281

For the three months ended June 30, 2026 and 2025, recoveries received under reinsurance contracts were $24,563

and $30,041, respectively.


	Six Months Ended June 30,
	2026	2025
Ceded premiums earned	$(286,119)	$(302,325)
Ceded losses and loss adjustment expenses incurred	9,043	42,051
Ceded policy acquisition expenses	52,831	9,388

For the six months ended June 30, 2026 and 2025, recoveries received under reinsurance contracts were $30,183 and

$67,631, respectively.