Palomar Holdings, Inc.

Previous wording

The results of operations for the six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2025, or for any other future period. The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Quarterly Report, and in conjunction with our audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K as filed with the SEC on February 25, 2025.

Current wording

The results of operations for the nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2025, or for any other future period. The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Quarterly Report, and in conjunction with our audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K as filed with the SEC on February 25, 2025.

Previous wording

Gross written premiums increased $111.1 million, or 28.8%, to $496.3 million for the three months ended June 30, 2025 compared to $385.2 million for the three months ended June 30, 2024. Premium growth was primarily due to an increased volume of policies in the majority of our lines of business which was driven by new business generated with existing partners, strong premium retention rates for existing business, expansion of our distribution footprint, and new partnerships, partially offset by a decrease in our Fronting line. The following table summarizes our gross written premiums by line of business and shows each line’s percentage of total gross written premiums for each period:

Current wording

Gross written premiums increased $182.2 million, or 43.9%, to $597.2 million for the three months ended September 30, 2025 compared to $415.0 million for the three months ended September 30, 2024. Premium growth was primarily due to an increased volume of policies in the majority of our lines of business, particularly in our Casualty and Crop lines, which was driven by new business generated with existing partners, strong premium retention rates for existing business, expansion of our distribution footprint, and new partnerships, partially offset by a decrease in our Fronting line. The following table summarizes our gross written premiums by line of business and shows each line’s percentage of total gross written premiums for each period:

Previous wording

Fronting premiums represent premium where we subsequently cede the majority of the premium and risk in exchange for a fronting fee, which is our primary source of profit in the arrangement. The volume of fronting premiums written each period may vary due to the timing of entering new fronting partnerships and terminations of existing fronting partnerships. A large fronting partnership terminated in the third quarter of 2024, causing the decline in fronting premiums shown above.

Current wording

Fronting premiums represent premium where we subsequently cede the majority of the premium and risk in exchange for a fronting fee, which is our primary source of profit in the arrangement. The decline in fronting premiums shown above is primarily the result of a large fronting partnership terminated in the third quarter of 2024.

Previous wording

Ceded written premiums increased $57.3 million, or 27.4%, to $266.5 million for the three months ended June 30, 2025 from $209.2 million for the three months ended June 30, 2024. The increase in ceded written premium was primarily driven by growth in written premiums subject to quota share arrangements, such as those in casualty and crop lines, as well as elevated exposure leading to higher XOL reinsurance expense.

Current wording

Ceded written premiums increased $66.7 million, or 26.1%, to $321.9 million for the three months ended September 30, 2025 from $255.3 million for the three months ended September 30, 2024. The increase in ceded written premium was primarily driven by growth in written premiums subject to quota share arrangements, such as those in Casualty and Crop lines, as well as elevated exposure leading to higher XOL reinsurance expense.

Previous wording

Although our volume of ceded written premiums increased, ceded written premiums as a percentage of gross written premiums decreased to 53.7% for the three months ended June 30, 2025 from 54.3% for the three months ended June 30, 2024. This percentage decrease was driven by changes in our composition of business whereby premiums written in the current period were subject to lower quota share or XOL cession percentages compared to premiums written in the prior period.

Current wording

Although our volume of ceded written premiums increased, ceded written premiums as a percentage of gross written premiums decreased to 53.9% for the three months ended September 30, 2025 from 61.5% for the three months ended September 30, 2024. This percentage decrease was driven by changes in our composition of business whereby premiums written in the current period were subject to lower quota share or XOL cession percentages compared to premiums written in the prior period.

Previous wording

Net written premiums increased $53.8 million, or 30.6%, to $229.8 million for the three months ended June 30, 2025 from $176.0 million for the three months ended June 30, 2024. The increase was primarily due to an increase in gross written premiums, primarily in our Casualty and Crop lines, partially offset by increased ceded written premiums.

Current wording

Net written premiums increased $115.5 million, or 72.3%, to $275.2 million for the three months ended September 30, 2025 from $159.7 million for the three months ended September 30, 2024. The increase was primarily due to an increase in gross written premiums, primarily in our Casualty and Crop lines, partially offset by increased ceded written premiums.

Previous wording

Net earned premiums increased $57.7 million, or 47.2%, to $180.0 million for the three months ended June 30, 2025 from $122.3 million for the three months ended June 30, 2024 due primarily to the earning of increased gross written premiums partially offset by the earning of ceded written premiums under reinsurance agreements. The table below shows the amount of premiums we earned on a gross and net basis and net earned premiums as a percentage of gross earned premiums in each period presented:

Current wording

Net earned premiums increased $89.5 million, or 66.0%, to $225.1 million for the three months ended September 30, 2025 from $135.6 million for the three months ended September 30, 2024 due primarily to the earning of increased gross written premiums partially offset by the earning of ceded written premiums under reinsurance agreements. The table below shows the amount of premiums we earned on a gross and net basis and net earned premiums as a percentage of gross earned premiums in each period presented:

Previous wording

Commission and other income increased $0.9 million to $1.7 million for the three months ended June 30, 2025 from $0.8 million for the three months ended June 30, 2024. The balance increased due to an increase in commissions and policy related fees driven by increased premiums written.

Current wording

Commission and other income increased $0.7 million to $1.4 million for the three months ended September 30, 2025 from $0.7 million for the three months ended September 30, 2024. The balance increased due to an increase in commissions and policy related fees driven by increased premiums written.

Previous wording

Losses and loss adjustment expenses increased $15.8 million, or 51.8% to $46.2 million for the three months ended June 30, 2025 from $30.4 million for the three months ended June 30, 2024. Losses and loss adjustment expenses consisted of the following elements during the respective periods:

Current wording

Losses and loss adjustment expenses increased $32.5 million, or 80.6%, to $72.8 million for the three months ended September 30, 2025 from $40.3 million for the three months ended September 30, 2024. Losses and loss adjustment expenses consisted of the following elements during the respective periods:

Previous wording

Catastrophe loss activity for the quarter ended June 30, 2024 was primarily related to severe convective storms.

Current wording

Catastrophe loss activity for the quarter ended September 30, 2025 was primarily related to flood events.

Previous wording

Catastrophe loss activity for the quarter ended June 30, 2025 was minimal and related to favorable development on prior period catastrophe events.

Current wording

Catastrophe loss activity for the quarter ended September 30, 2024 was primarily related to Hurricanes Beryl, Debby, and Helene.

Previous wording

Acquisition expenses increased $15.8 million, or 44.2%, to $51.6 million for the three months ended June 30, 2025 from $35.8 million for the three months ended June 30, 2024. The increase was primarily due to higher commissions and premium-related taxes resulting from higher gross earned premiums. Acquisition expenses as a percentage of gross earned premiums were 12.6% for the three months ended June 30, 2025 compared to 11.0% for the three months ended June 30, 2024. Acquisition expenses as a percentage of gross earned premiums increased due to higher commissions and premium-related taxes as a percentage of gross earned premiums and lower ceded commissions and fronting fees as a percentage of gross earned premiums due to changes in the composition of our business.

Current wording

Acquisition expenses increased $14.8 million, or 35.7%, to $56.3 million for the three months ended September 30, 2025 from $41.5 million for the three months ended September 30, 2024. The increase was primarily due to higher commissions and premium-related taxes resulting from higher gross earned premiums. Acquisition expenses as a percentage of gross earned premiums were 10.8% for the three months ended September 30, 2025 compared to 10.5% for the three months ended September 30, 2024. Acquisition expenses as a percentage of gross earned premiums increased due to higher commissions as a percentage of gross earned premiums and lower fronting fees as a percentage of gross earned premiums due to changes in the composition of our business.

Previous wording

Other underwriting expenses increased $14.3 million, or 45.8%, to $45.5 million for the three months ended June 30, 2025 from $31.2 million for the three months ended June 30, 2024. The increase was primarily due to the Company incurring higher payroll, technology, and stock-based compensation expenses associated with growth of the Company.

Current wording

Other underwriting expenses increased $20.2 million, or 71.7%, to $48.3 million for the three months ended September 30, 2025 from $28.1 million for the three months ended September 30, 2024. The increase was primarily due to the Company incurring higher payroll, technology, and stock-based compensation expenses associated with general growth.

Previous wording

Other underwriting expenses as a percentage of gross earned premiums were 11.1% for the three months ended June 30, 2025 compared to 9.6% for the three months ended June 30, 2024. Excluding the impact of expenses relating to transactions, stock-based compensation, and amortization of intangibles, other underwriting expenses as a percentage of gross earned premiums were 8.7% for the three months ended June 30, 2025 compared to 7.3% for the three months ended June 30, 2024. Other underwriting expenses as a percentage of gross earned premiums fluctuates period over period based on timing of certain expenses relative to premium growth.

Current wording

Other underwriting expenses as a percentage of gross earned premiums were 9.3% for the three months ended September 30, 2025 compared to 7.1% for the three months ended September 30, 2024. Excluding the impact of expenses relating to transactions, stock-based compensation, and amortization of intangibles, other underwriting expenses as a percentage of gross earned premiums were 7.9% for the three months ended September 30, 2025 compared to 5.9% for the three months ended September 30, 2024. Other underwriting expenses as a percentage of gross earned premiums fluctuates period over period based on timing of certain expenses relative to premium growth.

Previous wording

Net investment income increased $5.4 million, or 68.0%, to $13.4 million for the three months ended June 30, 2025 from $8.0 million for the three months ended June 30, 2024. The increase was primarily due to a higher average balance of investments during the three months ended June 30, 2025 due to the investing of cash generated from operations and the proceeds from our August 2024 secondary offering as well as higher yields on invested assets versus the prior year.

Current wording

Net investment income increased $5.2 million, or 54.9%, to $14.6 million for the three months ended September 30, 2025 from $9.4 million for the three months ended September 30, 2024. The increase was primarily due to a higher average balance of investments during the three months ended September 30, 2025 due to the investing of cash generated from operations and the proceeds from our August 2024 secondary offering as well as higher yields on invested assets versus the prior year.

Previous wording

The Company incurred $8.3 million of net realized and unrealized gains on investments for the three months ended June 30, 2025 compared to an immaterial amount of net realized and unrealized gains for the three months ended June 30, 2024. In both periods, the balance was primarily driven by unrealized gains on our equity securities. Unrealized gains and losses on fixed maturity securities are recognized as a component of other comprehensive income and do not impact our net income. The following table summarizes the components of our investment income for each period presented:

Current wording

The Company incurred $3.5 million of net realized and unrealized gains on investments for the three months ended September 30, 2025 compared to $2.7 million of net realized and unrealized gains for the three months ended September 30, 2024. In both periods, the balance was primarily driven by unrealized gains on our equity securities. Unrealized gains and losses on fixed maturity securities are recognized as a component of other comprehensive income and do not impact our net income. The following table summarizes the components of our investment income for each period presented:

Previous wording

Income tax expense increased $5.7 million to $13.4 million for the three months ended June 30, 2025 from $7.6 million for the three months ended June 30, 2024 due to higher pre-tax income for the period ended June 30, 2025. During the three months ended June 30, 2025 and 2024, the Company’s income tax rates of 22.3% and 22.9%, respectively, were higher than the statutory rate of 21% due primarily to non-deductible executive compensation expense.

Current wording

Income tax expense increased $7.7 million to $15.7 million for the three months ended September 30, 2025 from $8.0 million for the three months ended September 30, 2024 due to higher pre-tax income for the period ended September 30, 2025. During the three months ended September 30, 2025 our income tax rate of 23.4% was higher than the statutory rate of 21% due primarily to non-deductible executive compensation expense. During the three months ended September 30, 2024 our income tax rate of 20.8% was lower than the statutory rate of 21% due primarily to the tax impact of the permanent component of employee stock option exercises.

Previous wording

The following table summarizes our results for the six months ended June 30, 2025 and 2024:

Current wording

The following table summarizes our results for the nine months ended September 30, 2025 and 2024:

Previous wording

Gross written premiums increased $185.2 million, or 24.6%, to $938.5 million for the six months ended June 30, 2025 compared to $753.3 million for the six months ended June 30, 2024. Premium growth was primarily due to an increased volume of policies in the majority of our lines of business which was driven by new business generated with existing partners, strong premium retention rates for existing business, expansion of our distribution footprint, and new partnerships, partially offset by a decrease in our Fronting line. The following table summarizes our gross written premiums by line of business and shows each line’s percentage of total gross written premiums for each period:

Current wording

Gross written premiums increased $367.4 million, or 31.4%, to $1.5 billion for the nine months ended September 30, 2025 compared to $1.2 billion for the nine months ended September 30, 2024. Premium growth was primarily due to an increased volume of policies in the majority of our lines of business, particularly in our Casualty and Crop lines, which was driven by new business generated with existing partners, strong premium retention rates for existing business, expansion of our distribution footprint, and new partnerships, partially offset by a decrease in our Fronting line. The following table summarizes our gross written premiums by line of business and shows each line’s percentage of total gross written premiums for each period:

Previous wording

Ceded written premiums increased $59.9 million, or 13.7%, to $497.3 million for the six months ended June 30, 2025 from $437.4 million for the six months ended June 30, 2024. The increase in ceded written premium was primarily driven by growth in written premiums subject to quota share arrangements, such as those in casualty and crop lines, as well as elevated exposure leading to higher XOL reinsurance expense.

Current wording

Ceded written premiums increased $126.6 million, or 18.3%, to $819.2 million for the nine months ended September 30, 2025 from $692.6 million for the nine months ended September 30, 2024. The increase in ceded written premium was primarily driven by growth in written premiums subject to quota share arrangements, such as those in Casualty and Crop lines, as well as elevated exposure leading to higher XOL reinsurance expense.

Previous wording

Although our volume of ceded written premiums increased, ceded written premiums as a percentage of gross written premiums decreased to 53.0% for the six months ended June 30, 2025 from 58.1% for the six months ended June 30, 2024. This percentage decrease was driven by changes in our composition of business whereby premiums written in the current period were subject to lower quota share or XOL cession percentages compared to premiums written in the prior period.

Current wording

Although our volume of ceded written premiums increased, ceded written premiums as a percentage of gross written premiums decreased to 53.3% for the nine months ended September 30, 2025 from 59.3% for the nine months ended September 30, 2024. This percentage decrease was driven by changes in our composition of business whereby premiums written in the current period were subject to lower quota share or XOL cession percentages compared to premiums written in the prior period.

Previous wording

Net written premiums increased $125.3 million, or 39.7%, to $441.2 million for the six months ended June 30, 2025 from $315.9 million for the six months ended June 30, 2024. The increase was primarily due to an increase in gross written premiums, primarily in our Casualty and Inland Marine and Other Property lines, partially offset by increased ceded written premiums.

Current wording

Net written premiums increased $240.8 million, or 50.6%, to $716.5 million for the nine months ended September 30, 2025 from $475.6 million for the nine months ended September 30, 2024. The increase was primarily due to an increase in gross written premiums, primarily in our Casualty and Crop lines, partially offset by increased ceded written premiums.

Previous wording

Net earned premiums increased $113.9 million, or 49.5%, to $344.0 million for the six months ended June 30, 2025 from $230.2 million for the six months ended June 30, 2024 due primarily to the earning of increased gross written premiums offset by the earning of ceded written premiums under reinsurance agreements. The table below shows the amount of premiums we earned on a gross and net basis and net earned premiums as a percentage of gross earned premiums in each period presented:

Current wording

Net earned premiums increased $203.4 million, or 55.6%, to $569.2 million for the nine months ended September 30, 2025 from $365.8 million for the nine months ended September 30, 2024 due primarily to the earning of increased gross written premiums offset by the earning of ceded written premiums under reinsurance agreements. The table below shows the amount of premiums we earned on a gross and net basis and net earned premiums as a percentage of gross earned premiums in each period presented:

Previous wording

Commission and other income increased $1.2 million to $2.5 million for the six months ended June 30, 2025 from $1.3 million for the six months ended June 30, 2024. The balance increased due to an increase in commissions and policy related fees driven by increased premiums written.

Current wording

Commission and other income increased $1.9 million to $4.0 million for the nine months ended September 30, 2025 from $2.0 million for the nine months ended September 30, 2024. The balance increased due to an increase in commissions and policy related fees driven by increased premiums written.

Previous wording

Losses and loss adjustment expenses increased $27.7 million, or 48.3% to $84.9 million for the six months ended June 30, 2025 from $57.3 million for the six months ended June 30, 2024. Losses and loss adjustment expenses consisted of the following elements during the respective periods:

Current wording

Losses and loss adjustment expenses increased $60.2 million, or 61.6%, to $157.7 million for the nine months ended September 30, 2025 from $97.6 million for the nine months ended September 30, 2024. Losses and loss adjustment expenses consisted of the following elements during the respective periods:

Previous wording

Catastrophe loss activity for the six months ended June 30, 2025 was related to favorable development on prior period catastrophe events.

Current wording

Catastrophe loss activity for the nine months ended September 30, 2025 was related to flood losses in the third quarter offset by favorable development on prior period catastrophe events.

Previous wording

Catastrophe loss activity for the six months ended June 30, 2024 was primarily related to flood losses in the first quarter and severe convective storms in the second quarter.

Current wording

Catastrophe loss activity for the nine months ended September 30, 2024 was primarily related to flood losses in the first quarter, severe convective storms in the second quarter, and Hurricanes Beryl, Debby, and Helene during the third quarter.

Previous wording

Non-catastrophe losses increased for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 due mainly to higher attritional losses driven by premium growth on lines of business subject to attritional losses such as Casualty and Inland Marine and Other Property.

Current wording

Non-catastrophe losses increased for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due mainly to higher attritional losses driven by premium growth on lines of business subject to attritional losses such as Casualty, Crop, and Inland Marine and Other Property.

Previous wording

Acquisition expenses increased $30.4 million, or 45.0%, to $98.0 million for the six months ended June 30, 2025 from $67.6 million for the six months ended June 30, 2024. The increase was primarily due to higher commissions and premium-related taxes resulting from higher gross earned premiums. Acquisition expenses as a percentage of gross earned premiums were 12.5% for the six months ended June 30, 2025 compared to 10.7% for the six months ended June 30, 2024. Acquisition expenses as a percentage of gross earned premiums increased due to higher commissions and premium-related taxes as a percentage of gross earned premiums and lower ceded commissions and fronting fees as a percentage of gross earned premiums due to changes in the composition of our business.

Current wording

Acquisition expenses increased $45.2 million, or 41.4%, to $154.3 million for the nine months ended September 30, 2025 from $109.1 million for the nine months ended September 30, 2024. The increase was primarily due to higher commissions and premium-related taxes resulting from higher gross earned premiums. Acquisition expenses as a percentage of gross earned premiums were 11.8% for the nine months ended September 30, 2025 compared to 10.6% for the nine months ended September 30, 2024. Acquisition expenses as a percentage of gross earned premiums increased due to higher commissions as a percentage of gross earned premiums and lower fronting fees as a percentage of gross earned premiums due to changes in the composition of our business.

Previous wording

Other underwriting expenses increased $25.2 million, or 45.0%, to $81.3 million for the six months ended June 30, 2025 from $56.0 million for the six months ended June 30, 2024. The increase was primarily due to the Company incurring higher payroll, technology, and stock-based compensation expenses associated with growth of the Company.

Current wording

Other underwriting expenses increased $45.4 million, or 53.9%, to $129.6 million for the nine months ended September 30, 2025 from $84.2 million for the nine months ended September 30, 2024. The increase was primarily due to the Company incurring higher payroll, technology, and stock-based compensation expenses associated with general growth.

Previous wording

Other underwriting expenses as a percentage of gross earned premiums were 10.4% for the six months ended June 30, 2025 compared to 8.9% for the six months ended June 30, 2024. Excluding the impact of expenses relating to transactions, stock-based compensation, and amortization of intangibles, other underwriting expenses as a percentage of gross earned premiums were 8.1% for the six months ended June 30, 2025 compared to 7.1% for the six months ended June 30, 2024. Other underwriting expenses as a percentage of gross earned premiums fluctuates period over period based on timing of certain expenses relative to premium growth.

Current wording

Other underwriting expenses as a percentage of gross earned premiums were 9.9% for the nine months ended September 30, 2025 compared to 8.2% for the nine months ended September 30, 2024. Excluding the impact of expenses relating to transactions, stock-based compensation, and amortization of intangibles, other underwriting expenses as a percentage of gross earned premiums were 8.0% for the nine months ended September 30, 2025 compared to 6.6% for the nine months ended September 30, 2024. Other underwriting expenses as a percentage of gross earned premiums fluctuates period over period based on timing of certain expenses relative to premium growth.

Previous wording

Net investment income increased $10.3 million, or 68.5%, to $25.4 million for the six months ended June 30, 2025 from $15.1 million for the six months ended June 30, 2024. The increase was primarily due to a higher average balance of investments during the six months ended June 30, 2025 due primarily to the investing of proceeds from our August 2024 secondary offering and also due to higher yields on invested assets versus the prior year.

Current wording

Net investment income increased $15.5 million, or 63.3%, to $40.0 million for the nine months ended September 30, 2025 from $24.5 million for the nine months ended September 30, 2024. The increase was primarily due to a higher average balance of investments during the nine months ended September 30, 2025 due primarily to the investing of proceeds from our August 2024 secondary offering and also due to higher yields on invested assets versus the prior year.

Previous wording

The Company incurred $6.0 million of net realized and unrealized gains on investments for the six months ended June 30, 2025 compared to $3.0 million of net realized and unrealized gains for the six months ended June 30, 2024 In both periods, the balance was primarily driven by unrealized gains on our equity securities. Unrealized gains and losses on fixed maturity securities are recognized as a component of other comprehensive income and do not impact our net income. The following table summarizes the components of our investment income for each period presented:

Current wording

The Company incurred $9.5 million of net realized and unrealized gains on investments for the nine months ended September 30, 2025 compared to $5.8 million of net realized and unrealized gains for the nine months ended September 30, 2024. In both periods, the balance was primarily driven by unrealized gains on our equity securities. Unrealized gains and losses on fixed maturity securities are recognized as a component of other comprehensive income and do not impact our net income. The following table summarizes the components of our investment income for each period presented:

Previous wording

Income tax expense increased $8.5 million to $24.1 million for the six months ended June 30, 2025 from $15.6 million for the six months ended June 30, 2024 due to higher pre-tax income for the period ended June 30, 2025. For the six months ended June 30, 2025 and 2024, the Company’s income tax rates of 21.3% and 23.1%, respectively, were higher than the statutory rate of 21% due primarily to non-deductible executive compensation expense.

Current wording

Income tax expense increased $16.2 million to $39.8 million for the nine months ended September 30, 2025 from $23.6 million for the nine months ended September 30, 2024 due to higher pre-tax income for the period ended September 30, 2025. For the nine months ended September 30, 2025 and 2024, the Company’s income tax rates of 22.0% and 22.2%, respectively, were higher than the statutory rate of 21% due primarily to non-deductible executive compensation expense.

Previous wording

The following table summarizes our cash flows for the six months ended June 30, 2025 and 2024:

Current wording

The following table summarizes our cash flows for the nine months ended September 30, 2025 and 2024:

Previous wording

Our cash flow from operating activities was positive during the six months ended June 30, 2025 and 2024 due to net income and a decrease in net operating assets in each period.

Current wording

Our cash flow from operating activities was positive during the nine months ended September 30, 2025 and 2024 due to net income and a decrease in net operating assets in each period.

Previous wording

Cash used in investing activities for the six months ended June 30, 2025 and 2024 related primarily to purchases of fixed maturity securities in excess of sales and maturities and acquisitions occurring in each period.

Current wording

Cash used in investing activities for the nine months ended September 30, 2025 and 2024 related primarily to purchases of fixed maturity securities in excess of sales and maturities and acquisitions occurring in each period.

Previous wording

Cash provided by financing activities for the six months ended June 30, 2025 was related to the receipt of $3.3 million in proceeds from stock option exercises, the receipt of $0.5 million in proceeds from our employee stock purchase plan and the receipt of $1.8 million in proceeds from policy holder contributions of surplus, offset by $0.1 million in offering costs from the August 2024 Secondary Offering. Cash used in financing activities for six months ended June 30, 2024 was related to $52.6 million in payments on our FHLB line of credit, offset by the receipt of $4.0 million in proceeds from stock option exercises, the receipt of $0.4 million in proceeds from our employee stock purchase plan and the receipt of $1.1 million in proceeds from policy holder contributions of surplus.

Current wording

Cash used in financing activities for the nine months ended September 30, 2025 was related to the repurchase of $37.3 million of our common stock and $0.1 million in offering costs from the August 2024 Secondary Offering, partially offset by the receipt of $3.3 million in proceeds from stock option exercises, the receipt of $2.9 million in proceeds from policy holder contributions of surplus, and the receipt of $1.2 million in proceeds from our employee stock purchase plan. Cash provided by financing activities for the nine months ended September 30, 2024 was related to the receipt of $115.7 million in net proceeds from the August 2024 Secondary Offering, the receipt of $5.0 million in proceeds from stock option exercises, the receipt of $2.0 million in proceeds from policy holder contributions of surplus, and the receipt of $0.9 million in proceeds from our employee stock purchase plan, partially offset by $52.6 million in payments on our FHLB line of credit.

Previous wording

On July 31, 2025, the Company’s Board of Directors approved a share repurchase program authorizing the repurchase of up to $150 million of the Company's outstanding common stock through July 31, 2027.

Current wording

On July 31, 2025, the Company’s Board of Directors approved a share repurchase program authorizing the repurchase of up to $150 million of the Company’s outstanding common stock through July 31, 2027. We also have implemented a share repurchase plan and have used and may use our cash in the future to purchase outstanding shares of our common stock. Under our current share repurchase program, shares may be repurchased from time to time in the open market or negotiated transactions at prevailing market rates, or by other means in accordance with federal securities laws. We repurchased 308,417 shares for $37.3 million under this program during the nine months ended September 30, 2025 and $112.7 million remains available for future repurchases.

Previous wording

At June 30, 2025 total stockholders’ equity was $847.2 million and tangible stockholders’ equity was $784.4 million, compared to total stockholders’ equity of $729.0 million and tangible stockholders’ equity of $715.8 million as of December 31, 2024. Stockholders’ equity increased due to net income earned for the period, activity related to stock-based compensation, and unrealized gains on fixed maturity securities.

Current wording

At September 30, 2025 total stockholders’ equity was $878.1 million and tangible stockholders’ equity was $815.6 million, compared to total stockholders’ equity of $729.0 million and tangible stockholders’ equity of $715.8 million as of December 31, 2024. Stockholders’ equity increased due to net income earned for the period, activity related to stock-based compensation, and unrealized gains on fixed maturity securities.