HANOVER INSURANCE GROUP, INC.

Previous wording

During the six months ended June 30, 2026, our net income was $378.4 million, compared to $285.3 million for the six months ended June 30, 2025, an improvement of $93.1 million. This favorable change was primarily due to higher after-tax operating income.

Current wording

During the nine months ended September 30, 2026, our net income was $551.0 million, compared to $464.0 million for the nine months ended September 30, 2025, an improvement of $87.0 million. This favorable change was primarily due to higher after-tax operating income.

Previous wording

Operating income before interest expense and income taxes (a non-GAAP financial measure; see also “Results of Operations – Consolidated – Non-GAAP Financial Measures”) was $502.1 million for the six months ended June 30, 2026, compared to $396.3 million for the six months ended June 30, 2025, an improvement of $105.8 million. This increase was primarily due to improvements in current accident year losses, principally in Personal Lines, higher net investment income, earned premium growth and lower catastrophe losses.

Current wording

Operating income before interest expense and income taxes (a non-GAAP financial measure; see also “Results of Operations – Consolidated – Non-GAAP Financial Measures”) was $746.5 million for the nine months ended September 30, 2026, compared to $644.0 million for the nine months ended September 30, 2025, an improvement of $102.5 million. This increase was primarily due to lower current accident year losses, principally in Personal Lines, higher net investment income and earned premium growth, partially offset by higher catastrophe losses.

Previous wording

Pre-tax catastrophe losses were $190.7 million for the six months ended June 30, 2026, compared to $203.1 million during the same period of 2025, a decrease of $12.4 million. The catastrophe losses in the first six months of 2026 were primarily due to severe convective storms across multiple states. Included in pre-tax catastrophe losses were $61.7 million and $18.0 million for the six months ended June 30, 2026 and 2025, respectively, of favorable prior year catastrophe reserve development. The favorable development in the first six months of 2026 largely related to 2025 catastrophe events. Net favorable development on prior years’ non-catastrophe loss reserves was $46.5 million for the six months ended June 30, 2026, compared to $38.2 million for the six months ended June 30, 2025, an increase of $8.3 million.

Current wording

Pre-tax catastrophe losses were $300.4 million for the nine months ended September 30, 2026, compared to $249.3 million during the same period of 2025, an increase of $51.1 million. The catastrophe losses in the first nine months of 2026 were primarily due to severe convective storms across multiple states. Included in pre-tax catastrophe losses were $73.7 million and $18.0 million for the nine months ended September 30, 2026 and 2025, respectively, of favorable prior year catastrophe reserve development. The favorable development in the first nine months of 2026 largely related to 2025 catastrophe events. Net favorable development on prior years’ non-catastrophe loss reserves was $64.8 million for the nine months ended September 30, 2026, compared to $50.3 million for the nine months ended September 30, 2025, an increase of $14.5 million.

Previous wording

Net premiums written increased 5.7% in the first six months of 2026, compared to the same period in 2025, primarily due to renewal price increases and, to a lesser extent, an increase in new business volume. Operating income before interest expense and income taxes increased in the first six months of 2026, compared to the same period in 2025, primarily due to higher net investment income, improvements in current accident year underwriting results and lower catastrophe losses. The competitive nature of the Core Commercial market requires us to be highly disciplined in our underwriting process to ensure that we write business at acceptable margins, and we continue to seek rate increases across many lines of business, as appropriate.

Current wording

Net premiums written increased 5.3% in the first nine months of 2026, compared to the same period in 2025, primarily due to renewal price increases and, to a lesser extent, an increase in new business volume. Operating income before interest expense and income taxes increased in the first nine months of 2026, compared to the same period in 2025, primarily due to higher net investment income and improvements in current accident year underwriting results, partially offset by higher catastrophe losses. The competitive nature of the Core Commercial market requires us to be highly disciplined in our underwriting process to ensure that we write business at acceptable margins, and we continue to seek rate increases across many lines of business, as appropriate.

Previous wording

Net premiums written increased 3.4% in the first six months of 2026, compared to the same period in 2025, primarily due to an increase in new business volume and, to a lesser extent, renewal price increases. Operating income before interest expense and income taxes increased in the first six months of 2026 compared to the same period in 2025, primarily due to lower catastrophe losses and higher net investment income. The competitive nature of the Specialty market requires us to be highly disciplined in our underwriting process to ensure that we write business at acceptable margins, and we continue to seek rate increases across many lines of business, as appropriate.

Current wording

Net premiums written increased 3.3% in the first nine months of 2026, compared to the same period in 2025, primarily due to the impact of renewal price increases and, to a lesser extent, new business volume. Operating income before interest expense and income taxes increased in the first nine months of 2026 compared to the same period in 2025, primarily due to higher net investment income and improvements in current accident year underwriting results. The competitive nature of the Specialty market requires us to be highly disciplined in our underwriting process to ensure that we write business at acceptable margins, and we continue to seek rate increases across many lines of business, as appropriate.

Previous wording

Net premiums written increased 2.7% in the first six months of 2026, compared to the same period in 2025, primarily due to higher new business and, to a lesser extent, the impact of renewal price increases. Operating income before interest expense and income taxes increased in the first six months of 2026, compared to the same period in 2025, primarily due to improvement in current accident year underwriting results and higher favorable development on prior year reserves.

Current wording

Net premiums written increased 2.3% in the first nine months of 2026, compared to the same period in 2025, primarily due to higher new business and, to a lesser extent, the impact of renewal price increases. Operating income before interest expense and income taxes increased in the first nine months of 2026, compared to the same period in 2025, primarily due to improvements in current accident year underwriting results, higher favorable development on prior year reserves and higher net investment income, partially offset by an increase in catastrophe losses.

Previous wording

Primary business operations include insurance products and services currently provided through four reporting segments: Core Commercial, Specialty, Personal Lines and Other. Core Commercial includes commercial multiple peril, commercial automobile, workers’ compensation, and other commercial lines coverages provided to small and mid-sized businesses. Specialty includes four divisions of business: Marine and Industrial Property, Professional and Executive Lines, E&S and Alternative Markets, and Surety and Other. E&S and Alternative Markets includes coverages such as excess and surplus lines, program business (providing commercial insurance to markets with specialized coverage or risk management need related to groups of similar businesses) and specialty general liability coverage. Personal Lines includes personal automobile, homeowners and other personal coverages, such as umbrella. The Other segment includes earnings on holding company assets; holding company and other expenses, including certain costs associated with retirement benefits related to employees and agents of the Company’s former life insurance subsidiaries; and our run-off direct asbestos and environmental business, run-off voluntary assumed property and casualty pools, and run-off product liability business.

Current wording

Primary business operations include insurance products and services currently provided through four reporting segments: Core Commercial, Specialty, Personal Lines and Other. Core Commercial includes commercial multiple peril, commercial automobile, workers’ compensation, and other commercial lines coverages provided to small and mid-sized businesses. Specialty includes four divisions of business: Marine and Industrial Property, Professional and Executive Lines, E&S and Alternative Markets, and Surety and Other. E&S and Alternative Markets includes coverages such as excess and surplus lines, program business (providing commercial insurance to markets with specialized coverage or risk management need related to groups of similar businesses) and specialty general liability coverage. Personal Lines includes personal automobile, homeowners and other personal coverages, such as umbrella. The Other segment includes earnings on holding company assets; holding company, public company governance and other expenses, including certain costs associated with retirement benefits related to employees and agents of the Company’s former life insurance subsidiaries; and our run-off direct asbestos and environmental business, run-off voluntary assumed property and casualty pools, and run-off product liability business.

Previous wording

Consolidated net income for the three months ended June 30, 2026 was $191.6 million, compared to $157.1 million for the three months ended June 30, 2025, an increase of $34.5 million. This increase was primarily due to higher after-tax operating income of $30.5 million. Operating income before interest expense and income taxes was $251.9 million for the three months ended June 30, 2026, compared to $209.9 million for the three months ended June 30, 2025, an increase of $42.0 million. This increase was primarily due to lower catastrophe losses, higher net investment income and improvements in current accident year underwriting results, driven by Personal Lines.

Current wording

Consolidated net income for the three months ended September 30, 2026 was $172.6 million, compared to $178.7 million for the three months ended September 30, 2025, a decrease of $6.1 million. This decrease was primarily due to higher net realized and unrealized investment losses of $5.1 million. Operating income before interest expense and income taxes was $244.4 million for the three months ended September 30, 2026, compared to $247.7 million for the three months ended September 30, 2025, a decrease of $3.3 million. This decrease was primarily due to higher catastrophe losses, partially offset by improvements in current accident year underwriting results, driven by Personal Lines, and higher net investment income.

Previous wording

Consolidated net income for the six months ended June 30, 2026 was $378.4 million, compared to $285.3 million for the six months ended June 30, 2025, an increase of $93.1 million. This increase was primarily due to higher after-tax operating income of $77.2 million and, to a lesser extent, an improvement in net realized and unrealized investment gains and losses, from losses of $20.3 million in 2025 to gains of $0.5 million in 2026. Operating income before interest expense and income taxes was $502.1 million for the six months ended June 30, 2026, compared to $396.3 million for the six months ended June 30, 2025, an increase of $105.8 million. This increase was primarily due to improvements in current accident year losses, principally in Personal Lines, higher net investment income, earned premium growth and lower catastrophe losses.

Current wording

Consolidated net income for the nine months ended September 30, 2026 was $551.0 million, compared to $464.0 million for the nine months ended September 30, 2025, an increase of $87.0 million. This increase was primarily due to higher after-tax operating income of $74.7 million and, to a lesser extent, an improvement in net realized and unrealized investment losses of $15.7 million. Operating income before interest expense and income taxes was $746.5 million for the nine months ended September 30, 2026, compared to $644.0 million for the nine months ended September 30, 2025, an increase of $102.5 million. This increase was primarily due to lower current accident year losses, principally in Personal Lines, higher net investment income and earned premium growth, partially offset by higher catastrophe losses.

Previous wording

Net premiums written increased $73.0 million for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase in net premiums written was due to an increase in new business volume and the impact of renewal price increases.

Current wording

Net premiums written increased $53.6 million for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The increase in net premiums written was due to the impact of renewal price increases and, to a lesser extent, an increase in new business volume.

Previous wording

Core Commercial net premiums written were $1,205.2 million for the six months ended June 30, 2026, compared to $1,140.6 million for the six months ended June 30, 2025. The $64.6 million increase in net premiums written was primarily driven by renewal price increases and, to a lesser extent, an increase in new business.

Current wording

Core Commercial net premiums written were $648.9 million for the three months ended September 30, 2026, compared to $620.3 million for the three months ended September 30, 2025. The $28.6 million increase in net premiums written was primarily due to the impact of renewal price increases and, to a lesser extent, an increase in new business volume, partially offset by the impact of higher reinsurance reinstatement premiums.

Previous wording

We continue to manage underwriting performance through rate actions, risk selection and mitigation, pricing segmentation, specific underwriting actions and targeted new business growth. Our ability to achieve overall rate increases is affected by many factors, including regulatory activity and the competitive pricing environment.

Current wording

We continue to manage underwriting performance through rate actions, risk selection and mitigation, pricing segmentation, specific underwriting actions and targeted new business growth. Our ability to achieve overall rate increases and new business growth is affected by many factors, including regulatory activity and the competitive pricing environment.

Previous wording

Net premiums written in the personal automobile line of business were $390.7 million for the three months ended June 30, 2026, compared to $389.3 million for the three months ended June 30, 2025, an increase of $1.4 million. Personal automobile PIF decreased by 1.5% since June 30, 2025. Net premiums written in the homeowners and other lines of business for the three months ended June 30, 2026 were $306.9 million, compared to $290.3 million for the three months ended June 30, 2025, an increase of $16.6 million. Homeowners PIF decreased by 1.6% since June 30, 2025.

Current wording

Net premiums written in the personal automobile line of business were $413.0 million for the three months ended September 30, 2026, compared to $416.5 million for the three months ended September 30, 2025, a decrease of $3.5 million. Personal automobile PIF decreased by 1.2% since September 30, 2025. Net premiums written in the homeowners and other lines of business for the three months ended September 30, 2026 were $339.0 million, compared to $322.9 million for the three months ended September 30, 2025, an increase of $16.1 million. Homeowners PIF decreased by 1.2% since September 30, 2025.

Previous wording

Personal Lines current accident year underwriting profit, excluding catastrophes, was $114.7 million for the three months ended June 30, 2026, compared to $92.8 million for the three months ended June 30, 2025. This $21.9 million increase was primarily due to lower current accident year losses in our homeowners and other personal lines and, to a lesser extent, our personal automobile line.

Current wording

Personal Lines current accident year underwriting profit, excluding catastrophes, was $116.3 million for the three months ended September 30, 2026, compared to $87.8 million for the three months ended September 30, 2025. This $28.5 million increase was primarily due to lower current accident year losses in our homeowners line and, to a lesser extent, our personal automobile line.

Previous wording

We obtained renewal pricing increases of approximately 11% in our homeowners line and approximately 7% in our personal automobile line during the second quarter of 2026. Consistent with our expectations, PIF was down slightly compared to the end of 2025, and declined as compared to the first six months of 2025, driven by lower policies available to renew year over year from prior margin recapture actions taken. Additionally, our Personal Lines net premiums written may be affected by price competition and the regulatory and overall macroeconomic environment. These factors may also affect our ability to maintain and improve underwriting results.

Current wording

We obtained renewal pricing increases of approximately 11% in our homeowners line and approximately 7% in our personal automobile line during the third quarter of 2026. Consistent with our expectations, PIF was down slightly compared to the end of 2025, and declined as compared to the first nine months of 2025, driven by lower policies available to renew year over year from prior margin recapture actions taken. Additionally, our Personal Lines net premiums written may be affected by price competition and the regulatory and overall macroeconomic environment. These factors may also affect our ability to maintain and improve underwriting results.

Previous wording

Our Other segment had operating profit of $3.3 million for the six months ended June 30, 2026, compared to operating loss of $1.8 million for the six months ended June 30, 2025, a favorable change of $5.1 million, due to lower expenses and higher net investment income.

Current wording

Our Other segment had an operating loss of $2.8 million for the three months ended September 30, 2026, compared to an operating profit of $3.3 million for the three months ended September 30, 2025, a decrease of $6.1 million, due to higher expenses and lower net investment income.

Previous wording

Net premiums written increased $121.9 million for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase in net premiums written was due to renewal price increases and an increase in new business volume.

Current wording

Net premiums written increased $175.5 million for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The increase in net premiums written was due to the impact of renewal price increases and an increase in new business volume.

Previous wording

Core Commercial net premiums written were $574.8 million for the three months ended June 30, 2026, compared to $536.0 million for the three months ended June 30, 2025. The $38.8 million increase in net premiums written was primarily driven by renewal price increases and, to a lesser extent, an increase in new business volume.

Current wording

Core Commercial net premiums written were $1,854.1 million for the nine months ended September 30, 2026, compared to $1,760.9 million for the nine months ended September 30, 2025. The $93.2 million increase in net premiums written was primarily driven by the impact of renewal price increases and an increase in new business volume.

Previous wording

Core Commercial current accident year underwriting profit, excluding catastrophes, was $95.6 million for the six months ended June 30, 2026, compared to $81.6 million for the six months ended June 30, 2025. This $14.0 million increase was primarily driven by earned premium growth and lower current accident year losses. Within current accident year losses, lower large property losses in our commercial multiple peril line were partially offset by higher losses in our workers’ compensation line of business.

Current wording

Core Commercial current accident year underwriting profit, excluding catastrophes, was $133.6 million for the nine months ended September 30, 2026, compared to $112.4 million for the nine months ended September 30, 2025. This $21.2 million increase was primarily driven by earned premium growth and lower current accident year losses, partially offset by the impact of higher reinsurance reinstatement premiums. Within current accident year losses, lower large property losses in our commercial multiple peril line and, to a lesser extent, lower losses in our commercial automobile line were partially offset by higher losses in our workers’ compensation line of business.

Previous wording

Specialty current accident year underwriting profit, excluding catastrophes, was $92.9 million for the six months ended June 30, 2026, compared to $89.9 million for the six months ended June 30, 2025. This $3.0 million increase was primarily driven by earned premium growth partially offset by higher current accident year losses. Within current accident year losses, higher losses in our Marine and Industrial Property division were partially offset by lower losses in our E&S and Alternative Markets division.

Current wording

Specialty current accident year underwriting profit, excluding catastrophes, was $149.1 million for the nine months ended September 30, 2026, compared to $138.7 million for the nine months ended September 30, 2025. This $10.4 million increase was primarily driven by higher earned premium growth and improvements in current accident year losses. Within current accident year losses, lower losses in our E&S and Alternative Markets division were partially offset by higher losses in our Marine and Industrial Property and Professional and Executive Lines divisions.

Previous wording

Personal Lines underwriting profit for the three months ended June 30, 2026 was $69.4 million, compared to $25.2 million for the three months ended June 30, 2025, an increase of $44.2 million. Catastrophe losses for the three months ended June 30, 2026 were $55.4 million, compared to $70.2 million for the three months ended June 30, 2025, a decrease of $14.8 million. Net favorable development on prior years’ loss reserves for the three months ended June 30, 2026 was $10.1 million, compared to $2.6 million for the three months ended June 30, 2025, an increase of $7.5 million.

Current wording

Personal Lines underwriting profit for the nine months ended September 30, 2026 was $186.7 million, compared to $153.2 million for the nine months ended September 30, 2025, an increase of $33.5 million. Catastrophe losses for the nine months ended September 30, 2026 were $166.3 million, compared to $127.5 million for the nine months ended September 30, 2025, an increase of $38.8 million. Net favorable development on prior years’ loss reserves for the nine months ended September 30, 2026 was $20.0 million, compared to $6.3 million for the nine months ended September 30, 2025, an increase of $13.7 million.

Previous wording

Personal Lines current accident year underwriting profit, excluding catastrophes, was $216.7 million for the six months ended June 30, 2026, compared to $186.6 million for the six months ended June 30, 2025. This $30.1 million increase was primarily due to lower current accident year losses in our homeowners and other personal lines and, to a lesser extent, our personal automobile line, partially offset by higher performance-based agency compensation expenses.

Current wording

Personal Lines current accident year underwriting profit, excluding catastrophes, was $333.0 million for the nine months ended September 30, 2026, compared to $274.4 million for the nine months ended September 30, 2025. This $58.6 million increase was primarily due to lower current accident year losses in our homeowners and other personal lines and, to a lesser extent, our personal automobile line, partially offset by higher performance-based agency compensation expenses.

Previous wording

Our Other segment had operating profit of $1.1 million for the three months ended June 30, 2026, compared to an operating loss of $2.6 million for the three months ended June 30, 2025, an increase of $3.7 million, due to lower expenses.

Current wording

Our Other segment had operating profit of $0.5 million for the nine months ended September 30, 2026, compared to $1.5 million for the nine months ended September 30, 2025, a decrease of $1.0 million.

Previous wording

Loss and LAE reserves in our “Other core commercial” lines include monoline general liability, commercial umbrella, and monoline property. “Marine and Industrial Property” division includes marine and specialty industrial and commercial property coverages. “Professional and Executive Lines” division includes management liability, fidelity and crime, professional liability and other property and liability lines for healthcare firms. “E&S and Alternative Markets” division includes excess and surplus lines, program business, and specialty general liability coverages. “Surety and Other” includes contract and commercial surety coverages. Loss and LAE reserves in our “Total Other” segment relate to run-off direct asbestos and environmental, run-off voluntary assumed property and casualty reinsurance pools, and run-off product liability business.

Current wording

Loss and LAE reserves in our “Other core commercial” lines include monoline general liability, commercial umbrella, and monoline property. “E&S and Alternative Markets” division includes excess and surplus lines, program business, and specialty general liability coverages. “Professional and Executive Lines” division includes management liability, fidelity and crime, professional liability and other property and liability lines for healthcare firms. “Marine and Industrial Property” division includes marine and specialty industrial and commercial property coverages. “Surety and Other” includes contract and commercial surety coverages. Loss and LAE reserves in our “Total Other” segment relate to run-off direct asbestos and environmental, run-off voluntary assumed property and casualty reinsurance pools, and run-off product liability business.

Previous wording

It is not possible to know whether the factors that affected loss reserves in the first six months of 2026 will also occur in future periods. We encourage you to read our 2025 Annual Report on Form 10-K for more information about our reserving process and the judgments, uncertainties and risks associated therewith.

Current wording

It is not possible to know whether the factors that affected loss reserves in the first nine months of 2026 will also occur in future periods. We encourage you to read our 2025 Annual Report on Form 10-K for more information about our reserving process and the judgments, uncertainties and risks associated therewith.

Previous wording

For the six months ended June 30, 2026, favorable catastrophe loss development was $61.7 million, primarily due to lower than expected losses related to several convective storms across multiple states from accident year 2025, and to a lesser extent, accident year 2024, impacting our commercial multiple peril line in Core Commercial and our homeowners line in Personal Lines. In 2025, favorable catastrophe development was $18.0 million, primarily due to lower than expected losses related to events from accident year 2023, and to a lesser extent, accident year 2024, including several convective storms across multiple states and Winter Storm Elliot.

Current wording

For the nine months ended September 30, 2026, favorable catastrophe loss development was $73.7 million, primarily due to lower than expected losses related to several convective storms across multiple states from accident year 2025, and to a lesser extent, accident year 2024, impacting our commercial multiple peril line in Core Commercial and our homeowners line in Personal Lines. In 2025, favorable catastrophe development was $18.0 million, primarily due to lower than expected losses related to events from accident year 2023, and to a lesser extent, accident year 2024, including several convective storms across multiple states and Winter Storm Elliot.

Previous wording

For the six months ended June 30, 2026, net favorable loss and LAE development, excluding catastrophes, was $46.5 million. Specialty favorable loss and LAE development of $25.0 million was primarily due to lower than expected losses in our E&S and Alternative Markets, Marine & Industrial Property, and Surety and Other Specialty Lines divisions. Personal Lines favorable loss and LAE development of $19.3 million was primarily due to lower than expected losses in our homeowners property coverages.

Current wording

For the nine months ended September 30, 2026, net favorable loss and LAE development, excluding catastrophes, was $64.8 million. Specialty favorable loss and LAE development of $39.8 million was primarily due to lower than expected losses in our E&S and Alternative Markets, Marine & Industrial Property, and Surety and Other Specialty Lines divisions. Personal Lines favorable loss and LAE development of $20.0 million was primarily due to lower than expected losses in our homeowners property coverages.

Previous wording

For the six months ended June 30, 2025, net favorable loss and LAE development, excluding catastrophes, was $38.2 million. Specialty favorable loss and LAE development of $28.4 million was primarily due to lower than expected losses in our Professional and Executive Lines and Marine & Industrial Property divisions. Within Personal Lines, lower than expected losses of $5.4 million were driven primarily by homeowners coverages. Core Commercial favorable loss and LAE development of $4.3 million was primarily due to favorable development in the workers’ compensation and commercial multiple peril lines, partially offset by unfavorable development in the commercial automobile line.

Current wording

For the nine months ended September 30, 2025, net favorable loss and LAE development, excluding catastrophes, was $50.3 million. Specialty favorable loss and LAE development of $38.4 million was primarily due to lower than expected losses in our Professional and Executive Lines, Marine & Industrial Property, and E&S and Alternative Markets divisions. Personal Lines favorable loss and LAE development of $6.3 million were driven primarily by homeowners coverages. Core Commercial favorable loss and LAE development of $5.5 million was primarily due to lower than expected losses in the workers’ compensation and commercial multiple peril lines, partially offset by higher than expected losses in the commercial automobile line.

Previous wording

As of June 30, 2026, we had $11.2 million of net asbestos and environmental reserves, comprised of $9.5 million of direct reserves and $1.7 million of assumed reinsurance pool reserves. This compares to net reserves of $10.5 million at December 31, 2025, comprised of $8.3 million of direct reserves and $2.2 million of assumed reinsurance pool reserves. These assumed reinsurance pool reserves relate to pools in which we have terminated our participation, however, we continue to be subject to claims related to years in which we were a participant. Results of operations from these pools are included in our Other segment.

Current wording

As of September 30, 2026, we had $10.1 million of net asbestos and environmental reserves, comprised of $8.5 million of direct reserves and $1.6 million of assumed reinsurance pool reserves. This compares to net reserves of $10.5 million at December 31, 2025, comprised of $8.3 million of direct reserves and $2.2 million of assumed reinsurance pool reserves. These assumed reinsurance pool reserves relate to pools in which we have terminated our participation, however, we continue to be subject to claims related to years in which we were a participant. Results of operations from these pools are included in our Other segment.

Previous wording

Reinsurance recoverables were $2,078.9 million and $2,011.1 million at June 30, 2026 and December 31, 2025, respectively, of which $83.0 million and $62.6 million, respectively, represent billable recoverables. A reinsurance recoverable is billable after an eligible reinsured claim is paid by an insurer. Billable reinsurance recoverables related to the Michigan Catastrophic Claims Association (the “MCCA”) were $33.9 million and $30.5 million at June 30, 2026 and December 31, 2025, respectively, and billable non-MCCA reinsurance recoverables totaled $49.1 million and $32.1 million at June 30, 2026 and December 31, 2025, respectively. Billed balances outstanding greater than 90 days at June 30, 2026 and December 31, 2025 were not material.

Current wording

Reinsurance recoverables were $2,170.9 million and $2,011.1 million at September 30, 2026 and December 31, 2025, respectively, of which $58.2 million and $62.6 million, respectively, represent billable recoverables. A reinsurance recoverable is billable after an eligible reinsured claim is paid by an insurer. Billable reinsurance recoverables related to the Michigan Catastrophic Claims Association (the “MCCA”) were $29.8 million and $30.5 million at September 30, 2026 and December 31, 2025, respectively, and billable non-MCCA reinsurance recoverables totaled $28.4 million and $32.1 million at September 30, 2026 and December 31, 2025, respectively. Billed balances outstanding greater than 90 days at September 30, 2026 and December 31, 2025 were not material.

Previous wording

The increase in net investment income for the three and six months ended June 30, 2026 was primarily due to the continued investment of operational cashflows and the impact of reinvesting at higher interest rates in the fixed maturity portfolio.

Current wording

The increase in net investment income for both the three and nine months ended September 30, 2026 was primarily due to the continued investment of operational cashflows and, to a lesser extent, the impact of reinvesting at higher interest rates in the fixed maturity portfolio and higher partnership income. Income from partnerships can vary significantly from period to period based on the performance in the underlying portfolios.

Previous wording

Total cash and investments decreased $337.3 million, or 2.9%, for the six months ended June 30, 2026 as compared to December 31, 2025. The decrease in total cash and investments was primarily due to the funding of financing activities, including our debt retirement, common stock repurchases and the funding of our dividend payments, as well as to net market value depreciation in our fixed maturity portfolio. These decreases were partially offset by the continued investment of cashflows from operations.

Current wording

Total cash and investments decreased $327.7 million, or 2.8%, for the nine months ended September 30, 2026 as compared to December 31, 2025. The decrease in total cash and investments was primarily due to the funding of financing activities, including our debt retirement, common stock repurchases and the funding of our dividend payments, as well as net market value depreciation in our fixed maturity portfolio. These decreases were partially offset by the continued investment of cashflows from operations.

Previous wording

Based on ratings by the National Association of Insurance Commissioners (“NAIC”), approximately 95% of our fixed maturity portfolio consisted of investment-grade securities at June 30, 2026 and December 31, 2025. The quality of our fixed maturity portfolio remains strong based on ratings, capital structure position, support through guarantees, underlying security, issuer diversification and yield curve position. Our U.S. Treasury and government agencies fixed maturities are directly or indirectly backed by the full faith and credit of the U.S. government. Our municipal bonds include revenue bonds and general obligations of state and local issuers. Corporate fixed maturities include publicly traded and privately placed securities in the industrial, financial, and utility sectors. Residential mortgage-backed securities are structured securities that are collateralized by residential real estate loans and are primarily U.S. agency-backed. Our commercial mortgage-backed securities are structured securities that are collateralized by commercial real estate loans and are well-diversified by geography, property type, expected maturity and vintage year. Our other asset-backed securities are structured securities that are primarily collateralized by consumer and corporate borrowings, including collateralized loan obligations.

Current wording

Based on ratings by the National Association of Insurance Commissioners (“NAIC”), approximately 95% of our fixed maturity portfolio consisted of investment-grade securities at September 30, 2026 and December 31, 2025. The quality of our fixed maturity portfolio remains strong based on ratings, capital structure position, support through guarantees, underlying security, issuer diversification and yield curve position. Our U.S. Treasury and government agencies fixed maturities are either directly backed by, or benefit from the support of, the U.S. government. Our municipal bonds include revenue bonds and general obligations of state and local issuers. Corporate fixed maturities include publicly traded and privately placed securities in the industrial, financial, and utility sectors. Residential mortgage-backed securities are structured securities that are collateralized by residential real estate loans and are primarily U.S. agency-backed. Our commercial mortgage-backed securities are structured securities that are collateralized by commercial real estate loans and are well-diversified by geography, property type, expected maturity and vintage year. Our other asset-backed securities are structured securities that are primarily collateralized by consumer and corporate borrowings, including collateralized loan obligations.

Previous wording

Equity securities primarily consist of U.S. income-oriented large capitalization common stocks and a broadly diversified U.S. equity index exchange-traded fund.

Current wording

Equity securities primarily consist of U.S. income-oriented large capitalization common stocks and broadly diversified U.S. equity index exchange-traded funds.

Previous wording

Although we expect to invest new funds primarily in investment-grade fixed maturities, we have invested, and expect to continue to invest, a portion of funds in below investment-grade fixed maturities, limited partnerships, common equity securities and other investment assets.

Current wording

Although we expect to invest new funds primarily in investment-grade fixed maturities, we have invested, and expect to continue to invest, a portion of funds in below investment-grade fixed maturities, limited partnerships, equity securities and other investment assets.

Previous wording

For the three months ended June 30, 2026, we recognized impairment losses of $2.3 million, consisting of $1.3 million on mortgage loans and $1.0 million on fixed maturities. For the six months ended June 30, 2026, we recognized impairment losses of $4.3 million, consisting of $2.8 million on mortgage loans and $1.5 million on fixed maturities. For both the three and six months ended June 30, 2025, we recognized net impairments of $2.9 million, consisting primarily of $2.6 million and $2.7 million on mortgage loans, respectively.

Current wording

For the three months ended September 30, 2026, net recoveries were de minimis. For the nine months ended September 30, 2026, we recognized impairment losses of $4.1 million, consisting of $3.3 million on fixed maturities and $0.8 million on mortgage loans. For the three months ended September 30, 2025, impairments were de minimis. For the nine months ended September 30, 2025, we recognized net impairment losses of $3.0 million, primarily related to mortgage loans.

Previous wording

At June 30, 2026 and December 31, 2025, the allowance for credit losses on mortgage loans was $9.0 million and $8.1 million, respectively. At June 30, 2026 and December 31, 2025, the allowance for credit losses on available-for-sale debt securities was not material.

Current wording

At September 30, 2026 and December 31, 2025, the allowance for credit losses on mortgage loans was $7.0 million and $8.1 million, respectively. At September 30, 2026 and December 31, 2025, the allowance for credit losses on available-for-sale debt securities was de minimis.

Previous wording

The carrying value of fixed maturity securities on non-accrual status at June 30, 2026 was $2.1 million. The carrying value of mortgage loans on non-accrual status at June 30, 2026 was $7.1 million. We held no fixed maturities or mortgage loans on non-accrual status at December 31, 2025. The effects on income of non-accruals compared with amounts that would have been recognized in accordance with the original terms of the fixed maturities and mortgage loans were not material for the periods ended June 30, 2026 and December 31, 2025. Any defaults in the fixed maturities or mortgage loan portfolios in future periods may negatively affect investment income.

Current wording

The carrying value of mortgage loans on non-accrual status at September 30, 2026 was $7.1 million. The carrying value of fixed maturity securities on non-accrual status at September 30, 2026 was $2.5 million. We held no fixed maturities or mortgage loans on non-accrual status at December 31, 2025. The effects on income of non-accruals compared with amounts that would have been recognized in accordance with the original terms of the fixed maturities and mortgage loans were de minimis for the periods ended September 30, 2026 and December 31, 2025. Any defaults in the fixed maturities or mortgage loan portfolios in future periods may negatively affect investment income.

Previous wording

Gross unrealized losses on fixed maturities at June 30, 2026 were $310.7 million, an increase of $43.5 million compared to December 31, 2025. This increase was primarily due to higher interest rates. At June 30, 2026, gross unrealized losses consisted primarily of $89.3 million on residential mortgage-backed securities, $74.2 million on corporate fixed maturities, $71.9 million on municipals, and $42.4 million on U.S. government securities. See Note 3 – “Investments” in the Notes to Interim Consolidated Financial Statements.

Current wording

Gross unrealized losses on fixed maturities at September 30, 2026 were $642.8 million, an increase of $375.6 million compared to December 31, 2025. This increase was primarily due to higher interest rates. At September 30, 2026, gross unrealized losses consisted primarily of $216.0 million on corporate fixed maturities, $187.5 million on residential mortgage-backed securities, $112.0 million on municipals, and $59.3 million on U.S. government securities. See Note 3 – “Investments” in the Notes to Interim Consolidated Financial Statements.

Previous wording

The U.S. economy continued to expand at a solid pace during the second quarter of 2026, reflecting a stable labor market despite continued, elevated inflation. The Federal Reserve maintained the federal funds target at a range of 3.50% to 3.75%. Heightened geopolitical risks continue to impact economic uncertainty, the extent of which is unknown. These risks, among others, may increase the likelihood of defaults on our fixed income investments, particularly with respect to non-investment grade debt securities. Although a rigorous credit analysis of our fixed income investments is performed, it is difficult to identify with specificity which issuers, industries or markets, if any, will be most affected. As a result, the value of our fixed maturity portfolio could change in ways we cannot currently anticipate, and we could incur additional realized and unrealized losses in future periods.

Current wording

The U.S. economy continued to expand at a solid pace during the third quarter of 2026, reflecting a stable labor market despite continued, elevated inflation. The Federal Reserve increased the Effective Federal Funds Rate by 0.25% in September 2026 to a target range of 3.75% to 4.00%. Heightened geopolitical risks continue to impact economic uncertainty, the extent of which is unknown. These risks, among others, may increase the likelihood of volatility in the market value of our investment holdings, including defaults on our fixed income investments particularly with respect to non-investment grade debt securities. Although rigorous analysis of our investment holdings is performed, it is difficult to identify with specificity which issuers, industries, or markets, if any, will be most affected. As a result, the value of our investment portfolio could change in ways we cannot currently anticipate, and we could incur additional realized and unrealized losses in future periods.