UNITED FIRE GROUP INC

Previous wording

The Company is a member of Lloyd's through its insurance subsidiary, McIntyre Cedar Corporate Member LLP. Lloyd's operates as an insurance marketplace whereby members join syndicates to underwrite property and casualty and reinsurance business through a managing agent in return for receiving premiums. The Company participates in 14 syndicates as of June 30, 2026. The Company is required to maintain capital at Lloyd's, referred to as Funds at Lloyd's ("FAL"), to support participation in these syndicates.

Current wording

The Company is a member of Lloyd's through its insurance subsidiary, McIntyre Cedar Corporate Member LLP. Lloyd's operates as an insurance marketplace whereby members join syndicates to underwrite property and casualty and reinsurance business through a managing agent in return for receiving premiums. The Company participates in 16 syndicates as of September 30, 2026. The Company is required to maintain capital at Lloyd's, referred to as Funds at Lloyd's ("FAL"), to support participation in these syndicates.

Previous wording

For the six-month period ended June 30, 2026, approximately 50 percent of our property and casualty premiums were written in Texas, California, New Jersey, Iowa, and Missouri.

Current wording

For the nine-month period ended September 30, 2026, approximately 50 percent of our property and casualty premiums were written in Texas, California, New Jersey, Iowa, and Florida.

Previous wording

We evaluate profit or loss based upon operating and investment results. Profit or loss described in the following sections of this Management's Discussion and Analysis is reported on a pre-tax basis. Our primary sources of revenue are premiums and investment income. Major categories of expenses include losses and loss settlement expenses, underwriting and other operating expenses. Management uses metrics to provide financial statement users with a better understanding of results of operations, including adjusted operating income and three components of the loss ratio: underlying loss ratio, impacts of catastrophes and non-catastrophe prior period reserve development.

Current wording

We evaluate profit or loss based upon operating and investment results. Profit or loss described in the following sections of this Management's Discussion and Analysis is reported on a pre-tax basis. Our primary sources of revenue are premiums and investment income. Major categories of expenses include losses and loss settlement expenses, underwriting and other operating expenses. Management uses metrics to provide financial statement users with a better understanding of results of operations, including adjusted operating income and three components of the loss ratio: underlying loss ratio, impacts of catastrophes and non-catastrophe prior year reserve development.

Previous wording

Underlying loss ratio represents the net loss ratio less the impacts of catastrophes and non-catastrophe prior period reserve development. The underlying combined ratio represents the combined ratio less the impacts of catastrophes and non-catastrophe prior period reserve development. The Company believes that the underlying loss ratio and underlying combined ratio are meaningful measures to understand the underlying trends in the core business in the current accident year, removing the volatility of catastrophes and prior period impacts. Management believes separate discussions on catastrophe losses and prior period reserve development are important to understanding how the Company is managing catastrophe risk and in identifying reserve developments in longer-tailed business.

Current wording

Underlying loss ratio represents the net loss ratio less the impacts of catastrophes and non-catastrophe prior year reserve development. The underlying combined ratio represents the combined ratio less the impacts of catastrophes and non-catastrophe prior year reserve development. The Company believes that the underlying loss ratio and underlying combined ratio are meaningful measures to understand the underlying trends in the core business in the current accident year, removing the volatility of catastrophes and prior year impacts. Management believes separate discussions on catastrophe losses and prior year reserve development are important to understanding how the Company is managing catastrophe risk and in identifying reserve developments in longer-tailed business.

Previous wording

Prior period reserve development is the increase (unfavorable) or decrease (favorable) in incurred loss and loss adjustment expense reserves at the valuation dates for losses which occurred in previous calendar years. This measure excludes reserve development on catastrophe losses.

Current wording

Prior year reserve development is the increase (unfavorable) or decrease (favorable) in incurred loss and loss adjustment expense reserves at the valuation dates for losses which occurred in previous calendar years. This measure excludes reserve development on catastrophe losses.

Previous wording

The following table includes the consolidated results of our operations for the three- and six-month periods ended June 30, 2026 and 2025, with more detailed components and discussion in the sections that follow. Discussions of the components of net income are presented on a pre-tax basis, unless otherwise noted.

Current wording

The following table includes the consolidated results of our operations for the three- and nine-month periods ended September 30, 2026 and 2025, with more detailed components and discussion in the sections that follow. Discussions of the components of net income are presented on a pre-tax basis, unless otherwise noted.

Previous wording

Net written premium is the amount charged for insurance policy contracts issued and recognized on an annualized basis at the effective date of the policy. Net written premium is frequently used by industry analysts and other recognized reporting sources to facilitate comparisons of the performance of insurance companies. Management believes net written premium is a meaningful measure for evaluating insurance company sales performance and geographical expansion efforts. Net written premium for an insurance company consists of direct written premium and assumed premiums, less ceded premiums. The following shows our written premium for the three- and six-month periods ended June 30, 2026 and 2025.

Current wording

Net written premium is the amount charged for insurance policy contracts issued and recognized on an annualized basis at the effective date of the policy. Net written premium is frequently used by industry analysts and other recognized reporting sources to facilitate comparisons of the performance of insurance companies. Management believes net written premium is a meaningful measure for evaluating insurance company sales performance and geographical expansion efforts. Net written premium for an insurance company consists of direct written premium and assumed premiums, less ceded premiums. The following shows our written premium for the three- and nine-month periods ended September 30, 2026 and 2025.

Previous wording

Net written premium increased by 9.0% and 10.6% in the three- and six-month periods ended June 30, 2026, respectively, as compared to the same periods in 2025. For the three-month period ended June 30, 2026, core commercial average renewal premiums increased 4.6% with rates increasing 2.9% and exposure changes of 1.7%. Excluding the workers' compensation line of business, the overall average increase in renewal premiums was 5.0%, with 3.5% from rate increases and 1.5% from exposure changes.

Current wording

Net written premium increased by 13.2% and 11.4% in the three- and nine-month periods ended September 30, 2026, respectively, as compared to the same periods in 2025, led by growth in the Company's core commercial business. For the three-month period ended September 30, 2026, core commercial average renewal premiums increased 3.0% with rates increasing 2.0% and exposure changes of 1.0%. Excluding the workers' compensation line of business, the overall average increase in renewal premium was 3.3%, with 2.4% from rate increases and 0.9% from exposure changes.

Previous wording

Net earned premium is calculated on a pro-rata basis over the terms of the respective policies. Unearned premium reserves are established for the portion of written premium applicable to the unexpired terms of the insurance policies in force. The difference between net earned premium and net written premium is the change in unearned premium and the change in prepaid reinsurance premiums. Direct earned premium is recognized ratably over the life of a policy and differs from direct written premium, which is recognized on the effective date of the policy. The following shows our earned premium for the three- and six-month periods ended June 30, 2026 and 2025.

Current wording

Net earned premium is calculated on a pro-rata basis over the terms of the respective policies. Unearned premium reserves are established for the portion of written premium applicable to the unexpired terms of the insurance policies in force. The difference between net earned premium and net written premium is the change in unearned premium and the change in prepaid reinsurance premiums. Direct earned premium is recognized ratably over the life of a policy and differs from direct written premium, which is recognized on the effective date of the policy. The following shows our earned premium for the three- and nine-month periods ended September 30, 2026 and 2025.

Previous wording

Net earned premium increased by 12.5% and 11.9% in the three- and six-month periods ended June 30, 2026, respectively, as compared to the same periods in 2025. This increase in net earned premium was consistent with the trend in net written premium.

Current wording

Net earned premium increased by 10.4% and 11.3% in the three- and nine-month periods ended September 30, 2026, respectively, as compared to the same periods in 2025. This increase in net earned premium was consistent with the trend in net written premium.

Previous wording

Net investment income was $56.0 million for the six-month period ended June 30, 2026, an increase of $10.8 million compared to the same period in 2025. The increase was primarily from our fixed income portfolio increase of $8.8 million as a result of portfolio growth and reinvestment at higher yields. The pre-tax average yield on fixed income securities was 4.50% as of June 30, 2026 compared to 4.32% for the same period in 2025. Income on other long-term investments increased $1.7 million due to an increase in valuation of the underlying investments.

Current wording

Net investment income was $29.3 million for the three-month period ended September 30, 2026, an increase of $3.3 million compared to the same period in 2025. The increase was primarily from our fixed income portfolio, which increased $5.6 million as a result of portfolio growth and reinvestment at higher yields. The pre-tax average yield on fixed income securities was 4.65% for the three-month period ended September 30, 2026 compared to 4.37% for the same period in 2025. Income on other long-term investments was $1.3 million during the third quarter of 2026, which decreased from $2.7 million in the third quarter of 2025 due to higher total returns related to market movement in 2025.

Previous wording

Net investment income was $28.9 million for the three-month period ended June 30, 2026, an increase of $7.3 million compared to the same period in 2025. The increase was primarily from our fixed income portfolio increase of $5.0 million as a result of portfolio growth and reinvestment at higher yields. The pre-tax average yield on fixed income securities was 4.57% as of June 30, 2026 compared to 4.32% for the same period in 2025. Income on other long-term investments increased $2.2 million due to an increase in valuation of the underlying investments.

Current wording

Net investment income was $85.3 million for the nine-month period ended September 30, 2026, an increase of $14.1 million compared to the same period in 2025. The increase was primarily from our fixed income portfolio, which increased $14.4 million as a result of portfolio growth and reinvestment at higher yields. The pre-tax average yield on fixed income securities was 4.55% for the nine-month period ended September 30, 2026 compared to 4.29% for the same period in 2025. Income on other long-term investments increased $0.3 million due to an increase in valuation of the underlying investments, partially offset by a decrease in distributions.

Previous wording

Net investment losses were $0.4 million and $0.7 million for the three- and six-month periods ended June 30, 2026, respectively, as compared to net investment losses of $1.0 million and $1.8 million for the same periods in 2025. The primary reason for the change relates to opportunistic trading within the fixed maturity portfolio.

Current wording

Net investment losses were nominal and $0.7 million for the three- and nine-month periods ended September 30, 2026, respectively, as compared to net investment losses of $0.4 million and $2.2 million for the same periods in 2025. The primary reason for the change relates to opportunistic trading within the fixed maturity portfolio.

Previous wording

The following is a summary of losses and loss settlement expenses for the three- and six-month periods ended June 30, 2026 and 2025:

Current wording

The following is a summary of losses and loss settlement expenses for the three- and nine-month periods ended September 30, 2026 and 2025:

Previous wording

For the three-month period ended June 30, 2026, our loss and loss settlement expenses were $18.5 million, or 9.6%, higher than the same period in 2025, and our net loss ratio improved 1.6 points compared to the same period in 2025. This loss ratio improvement was driven by improvements in the underlying loss ratio and catastrophe ratio, partially offset by neutral prior year reserve development in 2026 as compared to favorable reserve development in 2025. The underlying loss ratio and catastrophe loss ratio improvements were driven by improvements in the core commercial lines.

Current wording

For the three-month period ended September 30, 2026, our loss and loss settlement expenses were $28.2 million, or 15.0%, higher than the same period in 2025, and our net loss ratio increased 2.4 points compared to the same period in 2025. This loss ratio increase was driven by increased underlying loss and catastrophe ratios. The underlying loss ratio increase was primarily driven by lower favorable impacts in 2026 compared to an exceptional third quarter of 2025. Catastrophe experience was less favorable compared to the prior year period but remained favorable relative to the five- and 10-year historical averages. The third quarter of 2025 results reflected lower catastrophe activity and nominal prior year development.

Previous wording

The Company experienced neutral prior year reserve development, excluding catastrophe losses, during the three- and six-month periods ended June 30, 2026.

Current wording

The Company experienced neutral prior year reserve development, excluding catastrophe losses, during the three- and nine-month periods ended September 30, 2026.

Previous wording

In the three- and six-month periods ended June 30, 2026, our pre-tax catastrophe losses decreased by $7.8 million and $10.6 million, respectively, compared to the same periods in 2025. Catastrophe losses in the three- and six-month periods ended June 30, 2026 added 2.7 and 3.2 points to the combined ratio, respectively, which is below our five-year and 10-year historical averages. Our catastrophe losses included 20 new events in the three-month period ended June 30, 2026.

Current wording

In the three- and nine-month periods ended September 30, 2026, our catastrophe losses increased by $4.4 million and decreased by $6.2 million, respectively, compared to the same periods in 2025. Catastrophe losses in the three- and nine-month periods ended September 30, 2026 added 2.4 and 2.9 points to the combined ratio, respectively, which is below our five-year and 10-year historical averages. Our catastrophe losses included 26 new events in the three-month period ended September 30, 2026.

Previous wording

DAC is amortized over the period the related premiums are earned. Amortization expense increased for the three- and six-month periods ended June 30, 2026, primarily reflecting an increase in deferred underwriting costs associated with continued premium expansion.

Current wording

DAC is amortized over the period the related premiums are earned. Amortization expense increased for the three- and nine-month periods ended September 30, 2026, compared to the same periods in 2025, primarily reflecting higher earned premiums and a higher level of deferred acquisition costs associated with continued premium growth.

Previous wording

The following tables display our net loss ratio for the three- and six-month periods ended June 30, 2026 and 2025:

Current wording

The following tables display our net loss ratio for the three- and nine-month periods ended September 30, 2026 and 2025:

Previous wording

The net loss ratio in our commercial lines of business was 59.5% for the three-month period ended June 30, 2026, compared to 61.9% for the same period in 2025. This result was driven by improvement in the underlying loss ratio and favorable catastrophe experience, partially offset by less favorable prior year reserve development in 2026 compared to 2025.

Current wording

The net loss ratio in our commercial lines of business was 58.7% for the three-month period ended September 30, 2026, compared to 56.7% for the same period in 2025. This result was driven by modestly higher underlying and catastrophe experience loss ratios. The third quarter of 2026 catastrophe results were less favorable compared to the third quarter of 2025 driven by fewer catastrophe events in the prior year period.

Previous wording

The net loss ratio improved 13.0 and 9.9 points in the three- and six-month periods ended June 30, 2026, respectively, as compared to the same periods in 2025. The result was driven by less unfavorable prior year reserve development and an improvement in the underlying loss ratio in 2026 compared to 2025.

Current wording

The net loss ratio improved 5.4 and 8.3 points in the three- and nine-month periods ended September 30, 2026, respectively, as compared to the same periods in 2025. The result was driven by less unfavorable prior year reserve development and an improvement in the underlying loss ratio in 2026 compared to 2025.

Previous wording

The net loss ratio deteriorated 7.6 and 0.4 points in the three- and six-month periods ended June 30, 2026, respectively, as compared to the same periods in 2025. The result was driven by less favorable prior year reserve development and a higher catastrophe ratio, partially offset by an improved underlying loss ratio in 2026 compared to 2025.

Current wording

The net loss ratio deteriorated 3.3 and 1.4 points in the three- and nine-month periods ended September 30, 2026, respectively, as compared to the same periods in 2025. These results were driven by less favorable prior year reserve development and a higher catastrophe loss ratio, partially offset by an improved underlying loss ratio in the three- and nine-month periods ended September 30, 2026 compared to the same periods of 2025.

Previous wording

The net loss ratio deteriorated 3.0 and 9.8 points in the three- and six-month periods ended June 30, 2026, respectively, as compared to the same periods in 2025. When surety losses occur, our loss is determined by estimating the cost to complete the remaining work and to pay the contractor's unpaid bills, offset by contract funds due to the contractor, reinsurance, and the value of any collateral to which we may have access. The change in loss ratio was driven by adverse prior year reserve development in 2026 compared to favorable prior year reserve development in 2025. The net deterioration in 2026 was driven by ceded development on large losses from accident year 2023. This was partially offset by improvement in the underlying loss ratio in 2026 compared to 2025.

Current wording

The net loss ratio deteriorated 9.4 and 9.6 points in the three- and nine-month periods ended September 30, 2026, respectively, as compared to the same periods in 2025. When surety losses occur, our loss is determined by estimating the cost to complete the remaining work and to pay the contractor's unpaid bills, offset by contract funds due to the contractor, reinsurance, and the value of any collateral to which we may have access. Prior year reserve development in 2026 was modest for both the three- and nine-month periods, while the prior year reserve development was favorable in 2025 for both the three- and nine-month periods, driven in part by improvement on large losses from accident years 2022 and 2023. The underlying loss ratio was favorable for both three- and nine-month periods ended September 30, 2026 compared to 2025.

Previous wording

The expense ratio increased 0.5 points and decreased 1.3 points in the three- and six-month periods ended June 30, 2026, respectively, as compared to the same periods in 2025. The increase in expense ratio in the second quarter of 2026 was partially driven by actions to reduce our real estate footprint and future expense ratio along with other normal variability. The decrease in the six-month period ended June 30, 2026 was driven by business growth and non-recurring expenses in the prior period associated with the final stages of development of a new policy administration system.

Current wording

The expense ratio increased 0.3 points and decreased 0.7 points in the three- and nine-month periods ended September 30, 2026, respectively, as compared to the same periods in 2025. The increase in expense ratio for the three-month period ended September 30, 2026 was driven by normal variability experienced quarter to quarter. The decrease in the nine-month period ended September 30, 2026 was driven by business growth and non-recurring expenses in the prior period associated with the final stages of development of a new policy administration system.

Previous wording

Our long term debt obligations include $50.0 million of private placement notes issued in December 2020 and $70.0 million and $30.0 million of senior unsecured notes issued in May 2024 and July 2025, respectively. Interest expense increased for the three- and six-month periods ended June 30, 2026 due to the issuance of the senior unsecured notes. Refer to Note 7 "Debt" in Part I, Item 1 for more information on our long term debt.

Current wording

Our long term debt obligations include $50.0 million of private placement notes issued in December 2020 and $70.0 million and $30.0 million of senior unsecured notes issued in May 2024 and July 2025, respectively. Interest expense increased for the three- and nine-month periods ended September 30, 2026 due to the issuance of the senior unsecured notes in July 2025. Refer to Note 7 "Debt" in Part I, Item 1 for more information on our long term debt.

Previous wording

The Company's effective tax rate for the three- and six-month periods ended June 30, 2026 and 2025 is different than the federal statutory rate of 21 percent, due primarily to the net effect of tax-exempt municipal bond interest income and tax adjustments related to equity-based compensation.

Current wording

The Company's effective tax rate for the three- and nine-month periods ended September 30, 2026 and 2025 is different than the federal statutory rate of 21 percent, due primarily to the net effect of tax-exempt municipal bond interest income and tax adjustments related to equity-based compensation.

Previous wording

Adjusted operating income increased in the three-month period ended June 30, 2026, primarily due to an increase in net earned premium of $39.3 million, combined with the catastrophe loss ratio improvement of 2.8 points and an underlying loss ratio improvement of 0.4 points. This was partially offset by an increase in the underwriting expense ratio of 0.5 points and less favorable prior year reserve development. In addition, net investment income increased by $7.3 million, driven by portfolio growth and reinvestment at higher yields.

Current wording

Adjusted operating income decreased in the three-month period ended September 30, 2026, primarily due to an increase in the underlying loss ratio of 1.3 points, combined with an increase in the catastrophe loss ratio of 1.1 points. This was partially offset by an increase in net earned premium of $34.1 million and an increase in net investment income of $3.3 million, driven by portfolio growth and reinvestment at higher yields.

Previous wording

Adjusted operating income increased in the six-month period ended June 30, 2026, primarily due to an increase in net earned premium of $73.9 million, combined with the catastrophe loss ratio improvement of 2.1 points and the underwriting expense ratio improvement of 1.3 points. This was partially offset by less favorable prior year reserve development. In addition, net investment income increased by $10.8 million, driven by portfolio growth and reinvestment at higher yields.

Current wording

Adjusted operating income increased in the nine-month period ended September 30, 2026, primarily due to an increase in net earned premium of $107.9 million and an increase in net investment income of $14.1 million, driven by portfolio growth and reinvestment at higher yields, combined with a 1.0 point improvement in the catastrophe loss ratio and a 0.7 point improvement in the underwriting expense ratio.

Previous wording

We monitor our portfolio to appropriately manage risk, achieve portfolio objectives and maximize investment income as market conditions change. Our overall investment strategy is to stay fully invested (i.e., minimize cash balances). If additional cash is needed, we have the ability to take advances through the Federal Home Loan Bank of Des Moines ("FHLB Des Moines") facility. The Company entered into an investment management agreement with New England Asset Management ("NEAM") effective as of February 1, 2024, pursuant to which NEAM will provide investment management services.

Current wording

We monitor our portfolio to appropriately manage risk, achieve portfolio objectives and maximize investment income as market conditions change. Our overall investment strategy is to stay fully invested (i.e., minimize cash balances). If additional cash is needed, we have the ability to take advances through the Federal Home Loan Bank of Des Moines ("FHLB Des Moines") facility. The Company entered into an investment management agreement with New England Asset Management ("NEAM") effective as of February 1, 2024, pursuant to which NEAM provides investment management services.

Previous wording

(2) As a member of Lloyd's, the Company participates in the syndicate results which include the fair value of the investments. The fair value of Lloyd's syndicate investments included in "Other long-term investments" on the Consolidated Balance Sheets was $116.0 million at June 30, 2026. Also included in "Other long-term investments" is our interest in limited liability partnerships with a current fair value of $103.4 million at June 30, 2026.

Current wording

(2) As a member of Lloyd's, the Company participates in the syndicate results which include the fair value of the investments. The fair value of Lloyd's syndicate investments included in "Other long-term investments" on the Consolidated Balance Sheets was $125.0 million at September 30, 2026. Also included in "Other long-term investments" is our interest in limited liability partnerships with a current fair value of $103.8 million at September 30, 2026.

Previous wording

The weighted average effective duration of our portfolio of fixed maturity securities was 4.2 years at June 30, 2026 compared to 4.3 years at December 31, 2025. Refer to Note 2 "Investments" in Part I, Item 1 for more information on maturities.

Current wording

The weighted average effective duration of our portfolio of fixed maturity securities was 4.4 years at September 30, 2026 compared to 4.3 years at December 31, 2025. Refer to Note 2 "Investments" in Part I, Item 1 for more information on maturities.

Previous wording

As of June 30, 2026, net unrealized investment losses, after tax, totaled $43.7 million compared to net unrealized losses, after tax, of $25.3 million as of December 31, 2025. The net unrealized investment loss position deteriorated from December 31, 2025 due to the increase in bond market interest rates during the six-month period ended June 30, 2026.

Current wording

As of September 30, 2026, net unrealized investment losses, after tax, totaled $113.9 million compared to net unrealized losses, after tax, of $25.3 million as of December 31, 2025. The net unrealized investment loss position deteriorated from December 31, 2025 due to the increase in bond market interest rates during the nine-month period ended September 30, 2026.

Previous wording

At June 30, 2026, our fixed maturity watch list included four fixed maturity securities in an unrealized loss position with an amortized cost of $12.1 million, no allowance for credit losses, unrealized losses of $0.6 million and a fair value of $11.5 million.

Current wording

At September 30, 2026, our fixed maturity watch list included three securities in an unrealized loss position with an amortized cost of $9.1 million, no allowance for credit losses, unrealized losses of $0.8 million and a fair value of $8.3 million.

Previous wording

At June 30, 2026, our mortgage loan watch list included one commercial mortgage loan with a carrying value of $4.0 million. We have an allowance for future credit loss allowances of $0.3 million on our mortgage loan portfolio.

Current wording

At September 30, 2026, our mortgage loan watch list included one commercial mortgage loan with a carrying value of $4.0 million. We have an allowance for credit losses of $0.3 million on our mortgage loan portfolio.

Previous wording

The following table displays a consolidated summary of cash sources and uses for the six-month periods ended June 30, 2026 and 2025:

Current wording

The following table displays a consolidated summary of cash sources and uses for the nine-month periods ended September 30, 2026 and 2025:

Previous wording

At June 30, 2026, our cash and cash equivalents included $24.1 million related to money market accounts, compared to $44.8 million at December 31, 2025.

Current wording

At September 30, 2026, our cash and cash equivalents included $62.6 million related to money market accounts, compared to $44.8 million at December 31, 2025.

Previous wording

Net cash flows provided by operating activities were $90.9 million and $89.1 million for the six-month periods ended June 30, 2026 and 2025, respectively. The primary cash inflows from operating activities include insurance premiums and net investment income. The primary cash outflows from operating activities are comprised of payment of losses and loss settlement expenses, taxes and operating expenses. Our cash flows from operating activities were sufficient to meet our liquidity needs for the six-month periods ended June 30, 2026 and 2025.

Current wording

Net cash flows provided by operating activities were $191.9 million and $149.9 million for the nine-month periods ended September 30, 2026 and 2025, respectively. The primary cash inflows from operating activities include insurance premiums and net investment income. The primary cash outflows from operating activities are comprised of payment of losses and loss settlement expenses, taxes and operating expenses. Our cash flows from operating activities were sufficient to meet our liquidity needs for the nine-month periods ended September 30, 2026 and 2025.

Previous wording

Sales of investments and proceeds from calls or maturities of fixed maturity securities can also provide liquidity. During the next five years, $478.0 million, or 20.4 percent, of our fixed maturity portfolio will mature.

Current wording

Sales of investments and proceeds from calls or maturities of fixed maturity securities can also provide liquidity. During the next five years, $464.8 million, or 19.3 percent, of our fixed maturity portfolio will mature.

Previous wording

Net cash flows used in investing activities were $95.3 million and $78.5 million for the six-month periods ended June 30, 2026 and 2025, respectively. For the six-month periods ended June 30, 2026 and 2025, we had cash inflows from scheduled and unscheduled investment maturities, redemptions, prepayments, and sales of investments of $307.4 million and $141.6 million, respectively. Our cash outflows for investment purchases were $401.8 million for the six-month period ended June 30, 2026, compared to $215.9 million for the same period of 2025.

Current wording

Net cash flows used in investing activities were $179.8 million and $133.6 million for the nine-month periods ended September 30, 2026 and 2025, respectively. For the nine-month periods ended September 30, 2026 and 2025, we had cash inflows from scheduled and unscheduled investment maturities, redemptions, prepayments, and sales of investments of $429.3 million and $305.2 million, respectively. Our cash outflows for investment purchases were $606.4 million for the nine-month period ended September 30, 2026, compared to $432.9 million for the same period of 2025.

Previous wording

Net cash flows used in financing activities were $12.5 million and $9.4 million for the six-month periods ended June 30, 2026 and 2025, respectively. The net cash flows used in financing activities for the six-month periods ended June 30, 2026 and 2025 are primarily related to the payment of cash dividends of $10.3 million and $8.1 million, respectively.

Current wording

Net cash flows used in financing activities were $17.7 million for the nine-month period ended September 30, 2026 compared to $16.4 million provided by financing activities for the nine-month period ended September 30, 2025. The decrease of $34.2 million in net cash flows from financing activities was primarily related to the completion of a $30 million private placement offering of senior unsecured notes during the three-month period ended September 30, 2025. Additionally, the net cash flows used in financing activities for the nine-month periods ended September 30, 2026 and 2025 are primarily related to the payment of cash dividends of $15.4 million and $12.2 million, respectively.