SELECTIVE INSURANCE GROUP INC

Previous wording

The terms "Company," "we," "us," and "our" refer to Selective Insurance Group, Inc. (the "Parent") and its subsidiaries, except as expressly indicated or the context otherwise requires. Certain statements in this Quarterly Report on Form 10-Q, including information incorporated by reference, are “forward-looking statements” defined in the Private Securities Litigation Reform Act of 1995 ("PSLRA"). The PSLRA provides a forward-looking statement safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements discuss our intentions, beliefs, projections, estimations, or forecasts of future events and financial performance. They involve uncertainties, known and unknown risks, and other factors that may cause actual results, activity levels, or performance to materially differ from those in or implied by the forward-looking statements. Forward-looking statements generally include words including or comparable to "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "attribute," "confident," "strong," "target," "project," "intend," "believe," "estimate," "predict," "potential," "pro forma," "seek," "likely," or "continue." Our forward-looking statements are only predictions; we cannot guarantee or assure that such expectations will prove correct. We undertake no obligation to publicly update or revise any forward-looking statements for any reason except as may be required by law.

Current wording

The terms “Company,” “we,” “us,” and “our” refer to Selective Insurance Group, Inc. (the “Parent”) and its subsidiaries, except as expressly indicated or the context otherwise requires. Certain statements in this Quarterly Report on Form 10‑Q, including information incorporated by reference, are “forward‑looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The PSLRA provides a safe harbor for forward‑looking statements under the Securities Act of 1933 and the Securities Exchange Act of 1934.

Previous wording

We discuss the factors that could cause our actual results to differ materially from our projections, forecasts, or estimates in forward-looking statements in Item 1A. "Risk Factors." in Part II. "Other Information" of this Form 10-Q. These risk factors may not be exhaustive. We operate in a constantly changing business environment, and new risk factors may emerge at any time. We cannot predict these new risk factors, their impact on our businesses, or the extent to which one or any combination of factors may cause actual results to differ materially from any forward-looking statements. Given these risks, uncertainties, and assumptions, the forward-looking events we discuss might not occur.

Current wording

We discuss factors that could cause actual results to differ materially from those expressed in forward‑looking statements in Item 1A, “Risk Factors,” of this Form 10‑Q. These risk factors may not be exhaustive. We operate in a continually changing business environment, and new risk factors may emerge at any time. We cannot predict these new factors, their potential impact on our business, or the extent to which any factor – or combination of factors – may cause actual results to differ materially from those expressed in forward‑looking statements. In light of these risks, uncertainties, and assumptions, the forward‑looking events discussed in this report may not occur.

Previous wording

•Financial Highlights of Results for the third quarters ended September 30, 2025 ("Third Quarter 2025") and September 30, 2024 ("Third Quarter 2024"); and the nine-month periods ended September 30, 2025 ("Nine Months 2025") and September 30, 2024 ("Nine Months 2024");

Current wording

Financial Highlights of Results for First Quarter 2026 and 20251

Previous wording

•Technology investments are critical to ensure efficiency and scale. To enhance underwriting scalability, risk management, and claims outcomes, we are actively developing and executing artificial intelligence use cases. We have also made considerable progress modernizing our policy acquisition and claims systems. For example, system enhancements in our E&S Lines segment have created significant operational efficiency, with the segment’s premium production increasing significantly despite limited headcount growth.

Current wording

•Further leveraging the use of data analytics and technology, including general-purpose, industry-trained, and agentic artificial intelligence ("AI") solutions, to drive operational efficiency and improved underwriting and claim outcomes. Early AI successes in claims, underwriting, and risk management are delivering measurable outcomes in accuracy, speed, and productivity, positioning us to responsibly scale AI across the organization. We have also made considerable progress in modernizing our policy acquisition and claims systems. For example, system enhancements in our E&S Lines segment have created significant operational efficiency, with the segment’s premium production increasing significantly despite limited headcount growth.

Previous wording

We believe it is prudent to prioritize improving underwriting margins, which will temper NPW growth in the current environment. NPW grew 4% in Third Quarter 2025 compared to Third Quarter 2024, reflecting our disciplined underwriting and pricing strategy in a competitive market. Policy retention declined modestly as we executed these strategies in a granular fashion. We will maintain a balanced approach and make investments to support future growth. As we position ourselves for the future, we have several strategies to grow market share profitably:

Current wording

We remain committed to making strategic investments that fuel continued growth, innovation, and performance excellence. As we position ourselves for the future, we have several strategies to grow market share profitably:

Previous wording

•In our existing footprint, we are focused on growing with existing partners and strategically appointing new agency locations. During Nine Months 2025, we had a net increase of 82 agency locations and in full-year 2024, we had a net increase of two hundred agency locations.

Current wording

•In our existing footprint, we are focused on growing with existing partners and strategically appointing new agency locations. In First Quarter 2026, we had a net increase of approximately thirty agency locations, and we had a net increase of 100 agency locations in 2025.

Previous wording

•Careful and deliberate geographic expansion. Since 2017, we have added fourteen states to our Standard Commercial Lines footprint, including Kansas in Third Quarter 2025. In 2024, our expansion states produced $350 million in premium, which represented approximately 8% of total NPW and approximately 1% marginal total premium growth. We expect to write new business in Montana and Wyoming by the end of 2026.

Current wording

•Careful and deliberate geographic expansion. Since 2017, we have added fourteen states to our Standard Commercial Lines footprint, including Kansas in 2025. In First Quarter 2026, these expansion states produced $125 million in premium, representing approximately 9% of total direct premiums written and 1% marginal total premium growth. We expect to write new business in Montana and Wyoming by the end of 2026.

Previous wording

•A GAAP combined ratio between 97% and 98%, including net catastrophe losses of four points and the impact of prior year casualty reserve development reported through Nine Months 2025. Our combined ratio estimate assumes no additional prior year casualty reserve development and no further change in loss cost estimates. We do not make assumptions about future reserve development, as we book our best estimate each quarter;

Current wording

•A GAAP combined ratio of 96.5% to 97.5%, including net catastrophe losses of 6 points. Our combined ratio estimate assumes no prior year casualty reserve development, as we record our best estimate each quarter. We do not make assumptions about future reserve development;

Previous wording

•An overall effective tax rate of approximately 21.5%; and

Current wording

•An overall effective tax rate of 21.5%; and

Previous wording

Refer to the line of business sections below for qualitative discussion on the significant drivers of unfavorable prior year casualty reserve development and current year casualty loss costs.

Current wording

Refer to the line of business sections below for qualitative discussion on the significant drivers of changes in current year casualty loss costs.

Previous wording

•Deploying granular underwriting refinements. In sectors and jurisdictions where market pricing does not align with our view of rate adequacy, we are taking targeted underwriting actions, including (i) revising underwriting guidelines, (ii) tightening coverage offerings, and (iii) reducing writings.

Current wording

NPW growth was flat in First Quarter 2026 compared to the same prior-year period, reflecting deliberate actions to enhance underwriting profitability. In sectors and markets where pricing does not align with our view of rate need, we are taking targeted underwriting actions, including (i) revising underwriting guidelines, (ii) tightening coverage offerings, and (iii) reducing writings.

Previous wording

The general liability line of business has experienced a long-term historical trend of meaningful severity increases, partially offset by claim frequency decreases. Prior-year severities developed adversely, which have impacted our view of more recent accident years in 2024 and 2025. We attribute the increased severities to elevated social inflation, which we view as an industry dynamic characterized by higher claimant propensity for attorney representation and litigation, longer settlement times, and higher settlement values. Certain jurisdictions with expanded liability theories and higher damage awards pose increased challenges. We are closely monitoring these jurisdictions and the broader trends across our business.

Current wording

The general liability line of business has experienced a long-term historical trend of meaningful severity increases, partially offset by claim frequency decreases. We attribute the increased severities to elevated social inflation, which we view as an industry dynamic characterized by higher claimant propensity for attorney representation and litigation, longer settlement times, and higher settlement values. Certain jurisdictions with expanded liability theories and higher damage awards pose increased challenges. We are closely monitoring these jurisdictions and the broader trends across our business.

Previous wording

Non-catastrophe property loss and loss expenses decreased 1.2 points in Third Quarter 2025 and 1.6 points in Nine Months 2025 compared to the same prior-year periods, primarily due to (i) the earned impact of higher renewal pure price increases and (ii) period-to-period variability of non-catastrophe property losses.

Current wording

Non-catastrophe property losses were 2.1 points lower in First Quarter 2026 compared First Quarter 2025 and provided a partial offset to the increase in current year loss costs. This reduction was driven by (i) the earned impact of higher renewal pure price increases and (ii) period-to-period variability of non-catastrophe property losses.

Previous wording

NPW grew 7% in Third Quarter 2025 and 8% in Nine Months 2025 compared to the same prior-year periods, primarily benefiting from renewal pure price increases and exposure growth on renewal policies.

Current wording

NPW grew a modest 1% in First Quarter 2026 compared to the same prior-year period, benefiting from direct new business, renewal pure price increases, and exposure growth on renewal policies.

Previous wording

NPW decreased 7% in Third Quarter 2025 and 8% in Nine Months 2025 compared to the same prior-year periods, primarily due to decreases in renewal pure price and direct new business.

Current wording

NPW decreased 4% in First Quarter 2026 compared to First Quarter 2025, primarily due to decreases in renewal pure price and a reduction in direct new business.

Previous wording

NPW decreased 6% in Third Quarter 2025 and 8% in Nine Months 2025 compared to the same prior-year periods, primarily driven by lower direct new business. New business decreased 20% in Third Quarter 2025 and 42% in Nine Months 2025 compared to the same prior-year periods. New policy counts decreased 34% in Third Quarter 2025 and 55% in Nine Months 2025 compared to the same prior-year periods. We have received regulatory approvals for increased rate levels in most of our footprint states and are focused on growth where we believe our rates are adequate.

Current wording

NPW decreased 6% in First Quarter 2026 compared to First Quarter 2025, primarily due to lower direct new business. New business decreased 15% in First Quarter 2026 compared to the same prior-year period, driven by (i) market conditions, including an increasingly competitive market for auto insurance, (ii) restrictions we have in place to manage overall growth in the State of New Jersey, and (iii) competition in other states due to our recent rate activity. We have received regulatory approvals for increased rate levels in most of our footprint states and are focused on growth where we believe our rates are adequate.

Previous wording

The change in NPE in Third Quarter 2025 and Nine Months 2025 compared to the same prior-year periods resulted from the same impacts to NPW described above.

Current wording

The change in NPE in First Quarter 2026 compared to First Quarter 2025 resulted from the same impacts to NPW described above.

Previous wording

Underwriting results for this segment improved in Third Quarter 2025 and Nine Months 2025 compared to the same prior-year periods as we are obtaining positive results from the actions we took to refine our pricing factors and prioritize rate filings to mitigate inflationary impacts. Our more significant rate increases began to take effect early in 2023 and increased in number and magnitude throughout 2024. We expect 2025 rate changes to remain above loss trends but moderate compared to our 2024 rate increases. Through our actions, we achieved renewal pure price increases of 16.9% in Third Quarter 2025 and 19.8% in Nine Months 2025. We are continuing to seek improved homeowners profitability by furthering the use of new policy terms and conditions, including (i) coverage for roofs based on a depreciated value considering the age of the roof rather than full replacement cost and (ii) where allowed by law, mandatory wind/hail deductibles in states exposed to severe convective storms.

Current wording

Underwriting results for this segment improved in First Quarter 2026 compared to the same prior-year period as we are obtaining positive results from the actions we took to refine our pricing factors and prioritize rate filings. We expect 2026 rate changes to remain above loss trends and in First Quarter 2026, we achieved renewal pure price increases of 10.6%. Additionally, we continue to focus our efforts on our target mass affluent market, with 98% of new business in First Quarter 2026 being in our target market.

Previous wording

Lower net catastrophe and non-catastrophe property losses reduced the loss and loss expense ratio by an aggregate 22.8 points in Third Quarter 2025 and 19.2 points in Nine Months 2025 compared to the same prior-year periods. Net catastrophe losses reflected lower frequency and severity of weather-related catastrophe events this year compared to last year.

Current wording

Net catastrophe and non-catastrophe property losses slightly increased the loss and loss expense ratio by an aggregate 0.3 points in First Quarter 2026 compared to the same prior-year period. Net catastrophe losses were higher by 6.3 points and reflected higher frequency and severity of weather-related catastrophe events in First Quarter 2026 compared to First Quarter 2025. Non-catastrophe property losses were lower by 6.0 points, driven by (i) the earned impact of renewal pure price increases, and (ii) variability from period to period of non-catastrophe losses.

Previous wording

The loss and loss expense ratio decreased 6.4 points in Third Quarter 2025 and 2.2 points in Nine Months 2025 compared to the same prior-year periods. This decrease was primarily driven by (i) lower catastrophe losses and non-catastrophe property losses due to normal period-to-period variability associated with property losses and (ii) the impact of higher rates per exposure. Partially offsetting the lower property losses were higher current year casualty loss costs, primarily driven by increased severities due to social inflation.

Current wording

The loss and loss expense ratio decreased 2.6 points in First Quarter 2026 compared to the same prior-year period. This decrease was primarily driven by lower catastrophe losses in First Quarter 2026, as the January 2025 California Palisades Fire and several severe wind and thunderstorm events impacted First Quarter 2025. Partially offsetting the lower catastrophe losses were (i) higher non-catastrophe property loss and loss expenses in First Quarter 2026 compared to First Quarter 2025, due to normal period-to-period variability associated with property losses and (ii) higher current year casualty loss costs, primarily driven by higher embedded severity assumptions due to social inflation.

Previous wording

Our Investments segment's objectives are to maximize the economic value of our investment portfolio by achieving stable, risk-adjusted after-tax net investment income and generate long-term growth in book value per share, considering prevailing market conditions, our enterprise risk tolerances, and other risk implications. We aim to accomplish this by:

Current wording

Our Investments segment's objectives are to maximize the economic value of our investment portfolio by achieving stable, risk-adjusted after-tax net investment income and generating long-term growth in book value per share. Our strategies consider prevailing market conditions, our enterprise risk tolerances, and other risk implications by:

Previous wording

•Maintaining (i) a well-diversified portfolio across issuers, sectors, and asset classes and (ii) a high credit quality fixed income securities portfolio with a duration and maturity profile at an acceptable risk level that provides ample liquidity.

Current wording

•Maintaining (i) a well-diversified portfolio across issuers, sectors, and asset classes and (ii) a fixed income securities portfolio with high credit quality and acceptable duration and maturity profiles to provide ample liquidity.

Previous wording

The effective duration of our fixed income and short-term investments was 4.1 years as of September 30, 2025. We monitor and manage the effective duration to maximize yield while managing interest rate risk at an acceptable level. We buy and sell investments with the intent of maximizing investment returns in the current market environment, while balancing capital preservation and ensuring adequate liquidity to support our insurance business.

Current wording

The effective duration of our fixed income and short-term investments was 4.3 years as of March 31, 2026. We monitor and manage the effective duration to maximize yield while managing interest rate risk at an acceptable level. We buy and sell investments with the intent of maximizing investment returns in the current market environment, while balancing capital preservation and ensuring adequate liquidity to support our insurance business.

Previous wording

Our fixed income and short-term investments represented 92% of invested assets at September 30, 2025 and December 31, 2024. These investments had (i) a weighted average credit rating of "A+" as of both September 30, 2025 and December 31, 2024, and (ii) investment grade holdings representing 97% of the total fixed income and short-term investment portfolio at both September 30, 2025 and December 31, 2024.

Current wording

At both March 31, 2026 and December 31, 2025, our fixed income and short-term investments (i) represented 92% of invested assets, (ii) had a weighted average credit rating of "A+", and (iii) had investment grade holdings representing 97% of the total fixed income and short-term investment portfolio.

Previous wording

After-tax net investment income earned increased 18% in Third Quarter 2025 and 16% in Nine Months 2025 compared to the same prior-year periods, primarily driven by active portfolio management, operating cash flow deployment, and net proceeds from the issuance of our 5.9% Senior Notes in the first quarter of 2025. For additional information about our 5.9% Senior Notes, see Note 12. "Indebtedness" in Item 1. "Financial Statements" of this Form 10-Q.

Current wording

After-tax net investment income earned increased 18% in First Quarter 2026 compared to First Quarter 2025, primarily driven by active portfolio management and operating cash flow deployment.

Previous wording

The amount and composition of the Parent's investment portfolio may change over time based on various factors, including the amount and availability of dividends from our Insurance Subsidiaries, investment income, expenses, other Parent cash needs, such as dividends payable to stockholders, asset allocation investment decisions, inorganic growth opportunities, debt retirement, and share repurchases. Our target is for the Parent to maintain liquid investments of at least twice its expected annual net cash outflow needs.

Current wording

The amount and composition of the Parent's investment portfolio may change over time based on various factors, including the amount and availability of dividends from our Insurance Subsidiaries, investment income, expenses, other Parent cash needs, such as dividends payable to stockholders, asset allocation investment decisions, inorganic growth opportunities, debt retirement, and share repurchases. We have an established target for the Parent to maintain liquid investments of at least twice its expected annual net cash outflow needs.

Previous wording

The Insurance Subsidiaries generate liquidity through insurance float, created by collecting premiums and earning investment income before paying claims. Given the long payment patterns of certain claims, the float period can extend over many years. Our investment portfolio consists of securities with maturity dates that continually provide a source of cash flow for claims payments in the ordinary course of business. To protect our Insurance Subsidiaries' capital, we purchase reinsurance coverage for significantly large claims or catastrophes that may occur.

Current wording

The Insurance Subsidiaries generate liquidity through insurance float, created by collecting premiums and earning investment income before paying claims. The float period can extend over many years. Our investment portfolio consists of securities with maturity dates that continually provide a source of cash flow for claims payments in the ordinary course of business. To protect our Insurance Subsidiaries' capital, we purchase reinsurance coverage for significantly large claims or catastrophes that may occur.

Previous wording

Our Insurance Subsidiaries may pay dividends to the Parent company. The Insurance Subsidiaries did not declare or pay cash dividends to the Parent in Nine Months 2025. As of December 31, 2024, our allowable ordinary maximum dividend is $290 million for 2025. All Insurance Subsidiary dividends to the Parent are (i) subject to the approval and/or review of its domiciliary state insurance regulator and (ii) generally payable only from earned statutory surplus reported in its annual statements as of the preceding December 31. Although domiciliary state insurance regulators have historically approved dividends, there is no assurance they will approve future Insurance Subsidiary dividends.

Current wording

The Insurance Subsidiaries paid $75 million in total dividends to the Parent in First Quarter 2026. As of December 31, 2025, our allowable ordinary maximum dividend is $466 million for 2026. All Insurance Subsidiary dividends to the Parent are (i) subject to the approval and/or review of its domiciliary state insurance regulator and (ii) generally payable only from earned statutory surplus reported in its annual statements as of the preceding December 31. Although domiciliary state insurance regulators have historically approved Insurance Subsidiary dividends, there is no assurance they will approve future dividends.

Previous wording

On June 30, 2025, the Parent entered into a Credit Agreement with the lenders named therein (the "Lenders") and Wells Fargo Bank, National Association, as administrative agent ("Line of Credit"). Under the Line of Credit, the Lenders have agreed to provide the Parent with a $100 million revolving credit facility that can be increased to $200 million with the Lenders' consent. The Line of Credit will mature on June 30, 2028, and has a variable interest rate based on the Parent’s debt ratings. This agreement replaced a prior credit agreement that the Parent terminated in conjunction with entering into the Line of Credit. No borrowings were made under either credit facility in Nine Months 2025. For additional information regarding the Line of Credit and corresponding representations, warranties, and covenants, see Note 12. "Indebtedness" in Item 1. "Financial Statements" of this Form 10-Q.

Current wording

On June 30, 2025, the Parent entered into a Credit Agreement with the lenders named therein (the "Lenders") and Wells Fargo Bank, National Association, as administrative agent ("Line of Credit"). Under the Line of Credit, the Lenders have agreed to provide the Parent with a $100 million revolving credit facility that can be increased to $200 million with the Lenders' consent. The Line of Credit will mature on June 30, 2028, and has a variable interest rate based on the Parent’s debt ratings. No borrowings were made under the Line of Credit in First Quarter 2026. For additional information regarding the Line of Credit and corresponding representations, warranties, and covenants, see Note 11. "Indebtedness" in Item 8. "Financial Statements and Supplementary Data." of our 2025 Annual Report.

Previous wording

The Line of Credit permits aggregate borrowings from the FHLBI and the FHLBNY up to 10% of the respective member company’s admitted assets for the previous year. SICNY is domiciled in New York, which limits its FHLBNY borrowings to the lesser of 5% of admitted assets for the most recently completed fiscal quarter or 10% of the previous year-end's admitted assets. As of September 30, 2025, we had remaining capacity of $611.2 million for FHLB borrowings, with a $25.0 million additional stock purchase requirement to allow the member companies to borrow their remaining capacity amounts.

Current wording

The Line of Credit permits aggregate borrowings from the FHLBI and the FHLBNY up to 10% of the respective member company’s admitted assets for the previous year. SICNY is domiciled in New York, which limits its FHLBNY borrowings to the lesser of 5% of admitted assets for the most recently completed fiscal quarter or 10% of the previous year-end's admitted assets. As of March 31, 2026, we had remaining capacity of $689.8 million for FHLB borrowings, with a $28.6 million additional stock purchase requirement to allow the member companies to borrow their remaining capacity amounts.

Previous wording

We made no material short-term borrowings from FHLB branches during Nine Months 2025.

Current wording

We made no short-term borrowings from FHLB branches during First Quarter 2026.

Previous wording

The Parent has lending agreements with the Indiana Subsidiaries, approved by the Indiana Department of Insurance, that provide the Parent with additional intercompany liquidity. Like the Line of Credit, these lending agreements limit the Parent’s borrowings from the Indiana Subsidiaries to 10% of the admitted assets of the respective Indiana Subsidiary. The outstanding balance on these intercompany loans was $35.0 million as of both September 30, 2025 and December 31, 2024. The remaining capacity under these intercompany loan agreements was $171.8 million as of both September 30, 2025 and December 31, 2024. We have other insurance regulator-approved intercompany agreements that facilitate liquidity management between the Parent and the Insurance Subsidiaries to enhance flexibility.

Current wording

The Parent has lending agreements with the Indiana Subsidiaries, approved by the Indiana Department of Insurance, that provide the Parent with additional intercompany liquidity. Like the Line of Credit, these lending agreements limit the Parent’s borrowings from the Indiana Subsidiaries to 10% of the admitted assets of the respective Indiana Subsidiary. The outstanding balance on these intercompany loans was $35.0 million as of both March 31, 2026 and December 31, 2025. The remaining capacity under these intercompany loan agreements was $198.0 million as of both March 31, 2026 and December 31, 2025. We have other insurance regulator-approved intercompany agreements that facilitate liquidity management between the Parent and the Insurance Subsidiaries to enhance flexibility.

Previous wording

In Nine Months 2025, the Parent issued $400 million of 5.90% Senior Notes due 2035, resulting in net proceeds of $395.9 million after a $0.1 million discount and debt issuance costs of approximately $4.1 million. The proceeds from this debt issuance are being used for general corporate purposes, including supporting organic growth with a $200 million capital contribution to the Insurance Subsidiaries in March 2025. The Parent had no private or public stock issuances during Nine Months 2025.

Current wording

The Parent had no private or public stock issuances during First Quarter 2026.

Previous wording

During Nine Months 2025, we repurchased 698,312 shares of our common stock under our existing share repurchase program for $55.6 million, a $79.60 average price per share, excluding commissions paid and estimated excise tax. We had $19.9 million of remaining capacity under our share repurchase program as of September 30, 2025. For additional information on this share repurchase program, refer to Note 17. "Equity" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report. On October 22, 2025, the Company announced that its Board of Directors authorized a new share repurchase program under which the Company may repurchase issued and outstanding shares of common stock up to $200 million, exclusive of any excise tax impact. This program is effective on October 27, 2025 and has no expiration date. The Company’s existing share repurchase program remained effective through October 24, 2025.

Current wording

During First Quarter 2026, we repurchased 337,303 shares of our common stock under our existing share repurchase program for $30.0 million, excluding commissions paid and estimated excise tax. We had $140.0 million of remaining capacity under our share repurchase program as of March 31, 2026. For additional information on this share repurchase program, refer to Note 17. "Equity" in Item 8. "Financial Statements and Supplementary Data." of our 2025 Annual Report.

Previous wording

The Parent uses the liquidity generated from the sources discussed above to pay dividends to our stockholders, among other things. Dividends on shares of the Parent's common and preferred stock are declared and paid at the discretion of the Board of Directors ("Board") based on our operating results, financial condition, capital requirements, contractual restrictions, and other relevant factors. Our Board declared:

Current wording

The Parent uses the liquidity generated from the sources discussed above to pay dividends to our stockholders, among other things. Dividends on shares of the Parent's common and preferred stock are declared and paid at the discretion of the Board of Direc tors ("Board") based on our operating results, financial condition, capital requirements, contractual restrictions, and other relevant factors. Our Board declared:

Previous wording

• A 13% increase in the quarterly cash dividend on common stock, to $0.43 per common share, that is payable December 1, 2025, to holders of record on November 14, 2025; and

Current wording

• A quarterly cash dividend on common stock of $0.43 per common share payable on June 1, 2026, to holders of record on May 15, 2026; and

Previous wording

Restrictions on the ability of the Insurance Subsidiaries to declare and pay dividends without alternative liquidity options could materially affect our ability to service debt and pay dividends on common and preferred stock.

Current wording

Restrictions on the Insurance Subsidiaries' ability to declare and pay dividends without alternative liquidity options, could materially affect our ability to service debt and pay dividends on common and preferred stock.

Previous wording

Capital resources ensure we can pay policyholder claims, furnish the financial strength to support the business of underwriting insurance risks, and facilitate continued business growth. At September 30, 2025, we had GAAP stockholders' equity of $3.5 billion and statutory surplus of $3.4 billion. With total debt of $902.3 million at September 30, 2025, our debt-to-capital ratio was 20.5%. For additional information on our statutory surplus, see Note 22. "Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report.

Current wording

Capital resources ensure we can pay policyholder claims, furnish the financial strength to support underwriting insurance risks, and facilitate continued business growth. At March 31, 2026, we had GAAP stockholders' equity and statutory surplus of $3.6 billion. With total debt of $901 million at March 31, 2026, our debt-to-capital ratio was 20.1%. For additional information on our statutory surplus, see Note 22. "Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds" in Item 8. "Financial Statements and Supplementary Data." of our 2025 Annual Report.

Previous wording

Our current and long-term material cash requirements associated with (i) loss and loss expense reserves and (ii) contractual obligations under operating and financing leases for office space and equipment have not materially changed since December 31, 2024. The Insurance Subsidiaries' net loss and loss expense reserves duration was 3.0 years at December 31, 2024.

Current wording

Our current and long-term material cash requirements associated with (i) loss and loss expense reserves, (ii) contractual obligations under operating and financing leases for office space and equipment, and (iii) notes payable, funded primarily with operating cash flows, have not materially changed since December 31, 2025. The Insurance Subsidiaries' net loss and loss expense reserves duration was 3.0 years at December 31, 2025.

Previous wording

As of September 30, 2025 and December 31, 2024, we had no (i) material guarantees on behalf of others and trading activities involving non-exchange traded contracts accounted for at fair value, (ii) material transactions with related parties other than those disclosed in Note 18. "Related Party Transactions" in Item 8. "Financial Statements and Supplementary Data." of our 2024 Annual Report, and (iii) material relationships with unconsolidated entities or financial partnerships, such as structured finance or special purpose entities, established to facilitate off-balance sheet arrangements or other contractually narrow or limited purposes. Consequently, we are not exposed to any material financing, liquidity, market, or credit risk related to off-balance sheet arrangements.

Current wording

As of March 31, 2026 and December 31, 2025, we had no (i) material guarantees on behalf of others and trading activities involving non-exchange traded contracts accounted for at fair value, (ii) material transactions with related parties other than those disclosed in Note 18. "Related Party Transactions" in Item 8. "Financial Statements and Supplementary Data." of our 2025 Annual Report and Note 14. "Related Party Transactions" in Item 1. "Financial Statements." of this Form 10-Q, and (iii) material relationships with unconsolidated entities or financial partnerships, such as structured finance or special purpose entities, established to facilitate off-balance sheet arrangements or other contractually narrow or limited purposes. Consequently, we are not exposed to any material financing, liquidity, market, or credit risk related to off-balance sheet arrangements.