Exzeo Group, Inc.

There have been no material changes in the risk factors previously disclosed in the section entitled "Risk Factors" in our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the SEC on February 26, 2026, except for the additional risk factors set forth below.

Our investment in the development of artificial intelligence (AI)-native products, services and businesses is inherently risky, and could divert management attention and harm our business, financial condition, and operating results.

We have invested in the development of AI-native products, services and businesses and the integration of AI capabilities into existing products and services. The investments that we are making reinforce our commitment to innovation and to developing products and services that meet the evolving needs of our customers. Our investments ultimately may not be commercially viable or may not result in an adequate return of capital and, in pursuing new strategies, we may incur unanticipated liabilities. In addition, competitors and other third parties may incorporate AI into products and offerings more quickly or more successfully than we do, which could impair our ability to compete effectively and adversely affect our results of operations.

Innovations in our products and services could also result in changes to user and customer behavior and affect our revenue trends. These endeavors involve significant risks and uncertainties, including diversion of resources and management attention from current operations.

In addition to the AI investments and development activities that are occurring throughout our existing core operating business, we recently formed Exzeo Ventures as a new division of our company to focus on the development and use of agentic AI technologies for catastrophe claims, underwriting and risk transfer solutions, and distribution automation.

We use artificial intelligence in our business, and challenges with properly managing its use could result in legal liability or reputational harm.

We are using, and expect to continue to expand our use of, AI and machine learning in our product development processes, services and operations. The use of AI technologies carries inherent risks, and there can be no assurance that our use of AI will enhance our products or services or achieve any improvements in innovation or efficiency. If the content, analyses or recommendations that AI applications assist in producing are or are alleged to be inaccurate, deficient or biased, our business, financial condition and results of operations may be adversely affected. Furthermore, our services that integrate third-party AI models may rely on certain safeguards implemented by the third-party providers of the underlying AI models, including those related to the accuracy, bias and other variables of the data, and these safeguards may be insufficient. Legislation and regulations governing the development or use of AI and automated-decision making have been implemented or are under consideration in the U.S. at the state and local level, as well as internationally. Such legislation and regulations may impose obligations related to our development, offering and use of AI, particularly those use cases that are deemed by the law to be "high risk," and expose us to increased risk of regulatory enforcement and litigation. As a result, our ability to use AI and machine learning may be constrained by current or future laws, regulatory or self-regulatory requirements.