Employers Holdings, Inc.

Previous wording

We are a Nevada holding company. Through our insurance subsidiaries, we provide workers’ compensation insurance coverage to small and mid-sized businesses engaged in low-to-medium hazard industries. Workers’ compensation insurance is provided under a statutory system wherein most employers are required to provide coverage for their employees’ medical, disability, vocational rehabilitation, and/or death benefit costs for work-related injuries or illnesses. We provide workers’ compensation insurance throughout most of the United States, with a concentration in California, where 46% of our in-force premiums are generated. Our revenues primarily consist of net premiums earned, net investment income, and net realized and unrealized gains and losses on investments.

Current wording

We are a Nevada holding company. Through our insurance subsidiaries, we provide workers’ compensation insurance coverage to small and mid-sized businesses engaged in low-to-medium hazard industries. Workers’ compensation insurance is provided under a statutory system wherein most employers are required to provide coverage for their employees’ medical, disability, vocational rehabilitation, and/or death benefit costs for work-related injuries or illnesses. We provide workers’ compensation insurance throughout most of the United States, with a concentration in California, where 47% of our in-force premiums are generated. Our revenues primarily consist of net premiums earned, net investment income, and net realized and unrealized gains and losses on investments.

Previous wording

We also continue to execute a number of ongoing business initiatives, including: achieving internal and customer-facing business process excellence and efficiency; delivering self-service options to policyholders, agents, and injured workers; further diversifying our risk exposure across geographic markets and economic sectors; and expanding our appetite expansion.

Current wording

We also continue to execute a number of ongoing business initiatives, including: achieving internal and customer-facing business process excellence and efficiency; delivering self-service options to policyholders, agents, and injured workers; further diversifying our risk exposure across geographic markets and economic sectors; and broadening our appetite expansion.

Previous wording

Our net income was $12.8 million for the three months ended March 31, 2025 compared to $28.3 million for the corresponding period of 2024. The key factors that affected our financial performance during the three months ended March 31, 2025, compared to the same period of 2024, included:

Current wording

Our net income was $29.7 million and $42.5 million for the three and six months ended June 30, 2025, respectively, compared to $31.7 million and $60.0 million for the corresponding periods of 2024. The key factors that affected our financial performance during the three and six months ended June 30, 2025, compared to the same periods of 2024, included:

Previous wording

•Net realized and unrealized (losses) gains on investments of $(12.8) million compared to $11.4 million;

Current wording

•Net realized and unrealized gains on investments of $20.9 million and $8.1 million compared to $2.2 million and $13.6 million;

Previous wording

Our 2025 underwriting results reflect lower net premiums earned and higher losses and LAE expenses offset by reductions in commission and underwriting expenses. Our investment results benefited from strong net investment income partially offset by net realized and unrealized losses.

Current wording

Our 2025 underwriting results reflect moderate increases in net premiums earned offset by higher losses and LAE. Commission expense and underwriting expenses were higher in the second quarter, but lower in the first half of 2025 compared to the same periods of 2024. Our 2025 investment results benefited from strong net investment income and favorable net realized and unrealized gains.

Previous wording

Our 2024 underwriting results reflect moderate increases in net premiums earned, as compared to the first quarter of 2023, due to higher new and renewal business premiums. Our investment results benefited from strong and steady net investment income and moderate net realized and unrealized gains.

Current wording

Our 2024 underwriting results reflect moderate increases in net premiums earned, compared to the same periods of 2023, due to higher new and renewal business premiums, as well as continued favorable prior year loss reserve development and lower underwriting expenses. Our 2024 investment results benefited from strong and steady net investment income and moderate net realized and unrealized gains.

Previous wording

Our consolidated financial results of operations for the three months ended March 31, 2025 and 2024 are as follows:

Current wording

Our consolidated financial results of operations for the six months ended June 30, 2025 and 2024 are as follows:

Previous wording

Underwriting income or loss is determined by deducting losses and LAE, commission expense, and underwriting expenses from net premiums earned. Our underwriting results for the three months ended March 31, 2025 and 2024 are as follows:

Current wording

Underwriting income or loss is determined by deducting losses and LAE, commission expense, and underwriting expenses from net premiums earned. Our underwriting results for the six months ended June 30, 2025 and 2024 are as follows:

Previous wording

Gross premiums written were $212.1 million for the three months ended March 31, 2025, compared to $210.9 million for the corresponding period of 2024. While renewal premiums have benefited from strong retention rates experienced during the first three months of 2025, this growth was offset by a decline in new business premiums and lower final audit premiums. We closed another quarter with a record number of policies in-force. Total in-force policies at March 31, 2025 were 133,121 compared to 130,767 in-force policies at December 31, 2024.

Current wording

Gross premiums written were $203.3 million and $415.4 million for the three and six months ended June 30, 2025, respectively, compared to $207.9 million and $418.7 million for the corresponding periods of 2024. For the three and six months ended June 30, 2025, the declines in gross premiums written were driven primarily by reductions in new business. Nonetheless, we closed another quarter with a record number of policies in-force. Total in-force policies at June 30, 2025 were 134,421 compared to 133,121 in-force policies at March 31, 2025, and 130,767 in-force policies at December 31, 2024.

Previous wording

Net premiums written were $210.3 million for the three months ended March 31, 2025, compared to $209.1 million for the corresponding period of 2024. Reinsurance premiums ceded were $1.8 million for each of the three months ended March 31, 2025 and 2024.

Current wording

Net premiums written were $201.5 million and $411.8 million for the three and six months ended June 30, 2025, respectively, compared to $206.1 million and $415.2 million for the corresponding periods of 2024. Reinsurance premiums ceded were $1.8 million and $3.6 million for the three and six months ended June 30, 2025, respectively, compared to $1.8 million and $3.5 million for the corresponding periods of 2024.

Previous wording

Losses and LAE represents our largest expense item and includes claim payments made, amortization of the Deferred Gain, Contingent Commission adjustments, estimates for future claim payments and changes in those estimates for current and prior accident years, and costs associated with investigating, defending, and adjusting claims. The accuracy of our financial reporting depends in large part on determining our losses and LAE reserves, which are inherently uncertain as they are estimates of the ultimate cost of individual claims based on actuarial estimation techniques.

Current wording

Losses and LAE represents our largest expense item and includes claim payments made, amortization of the Deferred Gain, Contingent Commission adjustments, estimates for future claim payments and changes in those estimates for current and prior accident years, and costs associated with investigating, defending, and adjusting claims. The accuracy of our financial reporting depends in large part on determining our losses and LAE reserves, which are inherently uncertain as they are estimates of the ultimate cost of individual claims based on actuarial estimation techniques. We believe that our loss estimates are adequate; however, ultimate losses will not be known with any certainty for many years.

Previous wording

We analyze our loss and LAE ratios on both a calendar year and accident year basis. Our current accident year loss and LAE estimates, excluding LPT, for the three months ended March 31, 2025, as shown below, are slightly increased as compared to those of the prior period presented. We believe that our current accident year loss estimate is adequate; however, ultimate losses will not be known with any certainty for many years. Our current accident year loss and LAE ratios continue to reflect the impact of key business initiatives, including: an emphasis on accelerated settlements of open claims; further diversifying risk exposure across geographic markets, when appropriate; and leveraging data-driven strategies to target, underwrite, and price profitable classes of business across all of our markets.

Current wording

We analyze our loss and LAE ratios on both a calendar year and accident year basis.

Previous wording

The accident year loss and LAE ratio is calculated by dividing cumulative losses and LAE for reported events that occurred during a particular year by the net premiums earned for that year. The accident year loss and LAE ratio for a particular year can decrease or increase when recalculated in subsequent periods as the reserves established for insured events occurring during that year fluctuate.

Current wording

The accident year loss and LAE ratio is calculated by dividing cumulative losses and LAE that occurred during a particular year by the net premiums earned for that year. The accident year loss and LAE ratio for a particular year can decrease or increase when recalculated in subsequent periods as the reserves established for insured events occurring during that year fluctuate. Our current accident year loss and LAE ratios continue to reflect the impact of key business initiatives, including: an emphasis on accelerated settlements of open claims; further diversifying risk exposure across geographic markets, when appropriate; and leveraging data-driven strategies to target, underwrite, and price profitable classes of business across all of our markets.

Previous wording

The increase in our calendar year losses and LAE during the three months ended March 31, 2025, as compared to the same period of 2024, was primarily due to a higher current accident year loss and LAE estimate as unfavorable loss trends have been observed. Prior accident year unfavorable loss reserve development totaled $1.3 million during the three months ended March 31, 2025, which included $0.6 million net unfavorable loss reserve development on our assigned risk business. Prior accident year favorable loss reserve development on our assigned risk business totaled $0.1 million during three months ended March 31, 2024.

Current wording

Prior accident year unfavorable loss reserve development on our assigned risk business totaled $0.3 million during the three months ended June 30, 2025. Prior accident year favorable loss reserve development totaled $9.1 million during the three months ended June 30, 2024, which included $9.3 million net favorable loss reserve development on our voluntary risk business, partially offset by $0.2 million of net unfavorable loss reserve development on our assigned risk business.

Previous wording

We refined the presentation of certain expenses associated with our involuntary premium during 2024. This revision, which was immaterial, reduced our first quarter 2024 commission expense and commission expense ratio by $0.4 million and 0.2 percentage points, respectively, and increased our first quarter 2024 underwriting expenses and underwriting expense ratio by the same amounts. This revision had no effect on our total expenses or net income.

Current wording

We refined the presentation of certain expenses associated with our involuntary premium during 2024. This revision, which was immaterial, reduced both our second quarter 2024 and the first half of 2024 commission expense and commission expense ratio by approximately $0.8 million and $1.2 million and 0.4 points and 0.3 points, respectively, and increased our respective underwriting expenses and underwriting expense ratio by the same amounts. These revisions had no effect on our total expenses or net income.

Previous wording

Our commission expense ratio was 12.6% for the three months ended March 31, 2025, compared to 13.6% for the corresponding period of 2024, and our commission expense was $23.0 million for the three months ended March 31, 2025, compared to $25.1 million for the corresponding period of 2024. The reduction in our commission expense for three months ended March 31, 2025, primarily related to a release of commissions payable associated with non-performing policies sent to collections totaling $1.4 million.

Current wording

Our commission expense ratio was 13.2% and 12.9% for the three and six months ended June 30, 2025, respectively, compared to 13.9% and 13.7% for the corresponding periods of 2024, and our commission expense was $26.1 million and $49.1 million for the three and six months ended June 30, 2025, respectively, compared to $26.0 million and $51.1 million for the corresponding periods of 2024. Our commission expense for the three months ended June 30, 2025, was relatively flat compared to 2024. The decrease in our commission expense for the six months ended June 30, 2025 was primarily related to a release of commissions payable associated with non-performing policies sent to collections.

Previous wording

The decrease in underwriting expenses for the three months ended March 31, 2025 was primarily the result of decreases in the net CECL provision on premiums receivable of $2.1 million and compensation-related expenses of $1.6 million, each compared to the same period of 2024.

Current wording

The increase in underwriting expenses for the three months ended June 30, 2025, was primarily the result of an increase in the net CECL provision on premiums receivable of $2.3 million and lower AO and other expense allocations of $3.9 million, partially offset by decreases in compensation-related expenses of $2.6 million, depreciation and amortization of $2.1 million, and policyholder dividends of $0.7 million, each compared to the same period of 2024.

Previous wording

Net investment income increased 19.8% during the three months ended March 31, 2025, compared to the same period of 2024. The increase for the three months ended March 31, 2025 was primarily the result of returns from our investments in private equity limited partnerships, along with higher book yields on our fixed maturity securities.

Current wording

Net investment income increased 0.7% and 10.0% during the three and six months ended June 30, 2025, respectively, compared to the same periods of 2024. The increase for the six months ended June 30, 2025 was primarily the result of returns from our investments in private equity limited partnerships, along with higher book yields on our fixed maturity securities.

Previous wording

Realized and unrealized gains and losses on our investments are reported separately from our net investment income. Realized gains and losses on investments include the gain or loss on a security at the time of sale compared to its original or adjusted cost (equity securities) or amortized cost (fixed maturity securities). Realized losses are also recognized for adverse changes in our CECL allowance or when securities are written down because of an other-than-temporary impairment. Changes in the fair value of equity securities and other invested assets are also included in Net realized and unrealized (losses) gains on investments on our Consolidated Statements of Comprehensive Income (Loss).

Current wording

Realized and unrealized gains and losses on our investments are reported separately from our net investment income. Realized gains and losses on investments include the gain or loss on a security at the time of sale compared to its original or adjusted cost (equity securities) or amortized cost (fixed maturity securities). Realized losses are also recognized for adverse changes in our CECL allowance or when securities are written down because of an other-than-temporary impairment. Changes in the fair value of equity securities and other invested assets are also included in Net realized and unrealized gains on investments on our Consolidated Statements of Comprehensive Income (Loss).

Previous wording

Net realized and unrealized (losses) gains on investments were $(12.8) million for the three months ended March 31, 2025, compared to $11.4 million for the corresponding period of 2024. The net realized and unrealized (losses) gains on investments for the three months ended March 31, 2025 and 2024 included $(11.9) million and $12.3 million of net realized and unrealized (losses) gains on equity securities and other investments, respectively, and $0.9 million of net realized losses on fixed maturity securities for both periods.

Current wording

Net realized and unrealized gains on investments were $20.9 million and $8.1 million for the three and six months ended June 30, 2025, respectively, compared to $2.2 million and $13.6 million for the corresponding periods of 2024. The net realized and unrealized gains on investments for the three months ended June 30, 2025 and 2024 included $21.0 million and $5.7 million of net realized and unrealized gains on equity securities and other investments, respectively, partially offset by $0.1 million and $3.5 million of net realized losses on fixed maturity securities, respectively. The net realized and unrealized gains on investments for the six months ended June 30, 2025 and 2024 included $9.1 million and $18.0 million of net realized and unrealized gains on equity securities and other investments, respectively, partially offset by $1.0 million and $4.4 million of net realized losses on fixed maturity securities, respectively.

Previous wording

The net investment gains on our equity securities during the three months ended March 31, 2024 were largely consistent with the performance of the U.S. equity markets. The net realized investment losses on our fixed maturity securities during the three months ended March 31, 2024 included a $0.5 million increase in our allowance for CECL.

Current wording

The net investment gains on our equity securities during the three and six months ended June 30, 2025 were largely consistent with the performance of the U.S. equity markets. The net investment gains on our other investments during the three months ended June 30, 2025 resulted primarily from an increase in the underlying value of the private equity limited partnership interests we own. The net investment losses on our other investments during the six months ended June 30, 2025 was primarily driven by the reduction in net asset value due to distributed investment returns from our investments in private equity limited partnerships. The net realized investment losses on our fixed maturity securities during the three and six months ended June 30, 2025 were primarily the result of sales associated with the rebalancing of our fixed maturity investment portfolio.

Previous wording

The net investment losses on our equity securities during the three months ended March 31, 2025 were largely consistent with the performance of the U.S. equity markets. The net investment losses on our other investments during the three months ended March 31, 2025 included the returns from our investments in private equity limited partnerships. The net realized investment losses on our fixed maturity securities during the three months ended March 31, 2025 included a $0.3 million increase in our allowance for CECL.

Current wording

The net investment gains and losses on our equity securities during the three and six months ended June 30, 2024 were the result of price appreciation for our investment holdings. The net investment gains on our other investments during the three and six months ended June 30, 2024 resulted primarily from an increase in the underlying value of the private equity limited partnership interests we own. The net realized investment losses on our fixed maturity securities during the three and six months ended June 30, 2024 were primarily the result of sales associated with the rebalancing of our fixed maturity investment portfolio partially offset by a $1.3 million and $0.8 million decrease in our allowance for CECL, respectively.

Previous wording

Interest and financing expenses were $0.1 million for the three months ended March 31, 2025, compared to less than $0.1 million for the corresponding period of 2024.

Current wording

Interest and financing expenses were less than $0.1 million and $0.1 million for the three and six months ended June 30, 2025, respectively, compared to less than $0.1 million for each of the corresponding periods of 2024.

Previous wording

Income tax expense was $3.1 million for the three months ended March 31, 2025, compared to $7.0 million for the corresponding period of 2024. The effective tax rates were 19.5% for the three months ended March 31, 2025, compared to 19.8% for the corresponding period of 2024. The effective rates during each of the periods presented included income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, Deferred Gain amortization and related adjustments, and tax credits utilized.

Current wording

Income tax expense was $7.3 million and $10.4 million for the three and six months ended June 30, 2025, compared to $8.3 million and $15.3 million for the corresponding periods of 2024. The effective tax rates were 19.7% for each of the three and six months ended June 30, 2025, compared to 20.8% and 20.3% for the corresponding periods of 2024. The effective rates during each of the periods presented included income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, Deferred Gain amortization and related adjustments, and tax credits utilized.

Previous wording

Total cash and investments at the holding company were $68.0 million at March 31, 2025, consisting of $35.9 million of cash and cash equivalents, $7.5 million of fixed maturity securities, and $24.6 million of equity securities.

Current wording

Total cash and investments at the holding company were $37.8 million at June 30, 2025, consisting of $5.8 million of cash and cash equivalents, $6.7 million of fixed maturity securities, and $25.3 million of equity securities.

Previous wording

The interest rates applicable to loans under the Credit Agreement are generally based on, at EHI's option: (i) a base rate, defined as the higher of the Prime Rate, the Federal Funds Rate plus 1.25% and the Adjusted Term SOFR Rate for a one-month tenor plus 1.75%, or (ii) an Adjusted Term SOFR Rate, defined as the applicable Adjusted Term SOFR Rate plus 1.75%. Borrowings under the Credit Agreement may be used for working capital and general corporate purposes of EHI and its subsidiaries. Total interest paid and/or fees incurred pursuant to the Credit Agreement was $0.1 million for three months ended March 31, 2025.

Current wording

The interest rates applicable to loans under the Credit Agreement are generally based on, at EHI's option: (i) a base rate, defined as the higher of the Prime Rate, the Federal Funds Rate plus 1.25% and the Adjusted Term SOFR Rate for a one-month tenor plus 1.75%, or (ii) an Adjusted Term SOFR Rate, defined as the applicable Adjusted Term SOFR Rate plus 1.75%. Borrowings under the Credit Agreement may be used for working capital and general corporate purposes of EHI and its subsidiaries.

Previous wording

EHI had no borrowings under the Credit Agreement during the three months ended March 31, 2025.

Current wording

EHI had no borrowings under the Credit Agreement during the six months ended June 30, 2025.

Previous wording

Total cash and investments held by our operating subsidiaries was $2,469.6 million at March 31, 2025, consisting of $64.7 million of cash and cash equivalents, and restricted cash, $2,079.9 million of fixed maturity securities, $229.6 million of equity securities, and $95.4 million of other invested assets. Sources of immediate and unencumbered liquidity at our operating subsidiaries as of March 31, 2025 consisted of $64.5 million of cash and cash equivalents, $223.9 million of publicly traded equity securities whose proceeds are available within two business days and $684.1 million of highly liquid fixed maturity securities whose proceeds are also available within two business days. We believe that our subsidiaries’ liquidity needs over the next 12 months and for the longer-term period thereafter will be met with cash from operations, investment income, and maturing investments.

Current wording

Total cash and investments held by our operating subsidiaries was $2,491.7 million at June 30, 2025, consisting of $63.5 million of cash and cash equivalents, and restricted cash, $2,070.3 million of fixed maturity securities, $250.3 million of equity securities, $98.6 million of other invested assets, and $9.0 million of short-term investments. Sources of immediate and unencumbered liquidity at our operating subsidiaries as of June 30, 2025 consisted of $63.3 million of cash and cash equivalents, $242.8 million of publicly traded equity securities whose proceeds are available within two business days and $688.6 million of highly liquid fixed maturity securities whose proceeds are also available within two business days. We believe that our subsidiaries’ liquidity needs over the next 12 months and for the longer-term period thereafter will be met with cash from operations, investment income, and maturing investments.

Previous wording

Various state laws and regulations require us to hold investment securities or letters of credit on deposit with certain states in which we do business. Securities having a fair value of $649.3 million and $630.9 million were on deposit at March 31, 2025 and December 31, 2024, respectively. These laws and regulations govern both the amount and types of investment securities that are eligible for deposit. Additionally, standby letters of credit from the FHLB have been issued in lieu of $170.0 million of securities on deposit at both March 31, 2025 and December 31, 2024.

Current wording

Various state laws and regulations require us to hold investment securities or letters of credit on deposit with certain states in which we do business. Securities having a fair value of $655.3 million and $630.9 million were on deposit at June 30, 2025 and December 31, 2024, respectively. These laws and regulations govern both the amount and types of investment securities that are eligible for deposit. Additionally, standby letters of credit from the FHLB have been issued in lieu of $170.0 million of securities on deposit at both June 30, 2025 and December 31, 2024.

Previous wording

We purchase reinsurance annually to protect us against the costs of severe claims and certain catastrophic events. On July 1, 2024, we entered into a new reinsurance program that is effective through June 30, 2025. The reinsurance program consists of one treaty covering excess of loss and catastrophic loss events in four layers of coverage. Our reinsurance coverage is $190.0 million in excess of our $10.0 million retention on a per occurrence basis, including a maximum any one life limit of $20.0 million, subject to certain exclusions. We believe that our reinsurance program currently meets our needs.

Current wording

We purchase reinsurance annually to protect us against the costs of severe claims and certain catastrophic events. On July 1, 2025, we entered into a new reinsurance program that is effective through June 30, 2026. The reinsurance program consists of one treaty covering excess of loss and catastrophic loss events in four layers of coverage, which includes a 10% co-participation share within each layer of coverage retained by the Company. Our reinsurance coverage is $190.0 million in excess of our $10.0 million retention on a per occurrence basis, including a maximum any one life limit of $20.0 million, subject to certain exclusions. We believe that our reinsurance program currently meets our needs.

Previous wording

Certain reinsurance contracts require funds owned by us to be held in trust for the benefit of the ceding reinsurer to secure the outstanding liabilities we have assumed. The fair value of fixed maturity securities held in trust for the benefit of our ceding reinsurers was $3.0 million at both March 31, 2025 and December 31, 2024.

Current wording

Certain reinsurance contracts require funds owned by us to be held in trust for the benefit of the ceding reinsurer to secure the outstanding liabilities we have assumed. The fair value of fixed maturity securities held in trust for the benefit of our ceding reinsurers was $3.1 million and $3.0 million at June 30, 2025 and December 31, 2024, respectively.

Previous wording

The table below shows our net cash flows for the three months ended:

Current wording

The table below shows our net cash flows for the six months ended:

Previous wording

Net cash provided by operating activities for the three months ended March 31, 2025, included net premiums received of $192.7 million, investment income received of $32.8 million, and federal tax refund received of $2.8 million. The cash provided by these operating activities were partially offset by net claims payments of $132.9 million, underwriting expenses paid of $54.1 million and commissions paid of $26.6 million.

Current wording

Net cash provided by operating activities for the six months ended June 30, 2025, included net premiums received of $385.4 million and investment income received of $58.1 million. The cash provided by these operating activities were partially offset by net claims payments of $274.9 million, underwriting expenses paid of $92.1 million, commissions paid of $50.2 million, and federal income taxes paid of $11.6 million.

Previous wording

Net cash provided by operating activities for the three months ended March 31, 2024, included net premiums received of $185.1 million and investment income received of $26.2 million. The cash provided by these operating activities were largely offset by net claims payments of $124.6 million, underwriting expenses paid of $57.3 million, and commissions paid of $28.8 million.

Current wording

Net cash provided by operating activities for the six months ended June 30, 2024, included net premiums received of $372.5 million and investment income received of $52.7 million. The cash provided by these operating activities were largely offset by net claims payments of $252.9 million, underwriting and general and administrative expenses paid of $94.4 million, commissions paid of $51.1 million, and federal income taxes paid of $14.5 million.

Previous wording

Net cash provided by investing activities for the three months ended March 31, 2025, related primarily to returns from our investments, investment sales, maturities, and redemptions whose proceeds were used to fund claims payments, underwriting expenses, stockholder dividend payments, and common stock repurchases. Those investing cash inflows were partially offset by investments of premiums received and the reinvestment of funds from investment sales, maturities, redemptions and interest income.

Current wording

Net cash provided by investing activities for the six months ended June 30, 2025, related primarily to returns from our investments, investment sales, maturities, and redemptions whose proceeds were used to fund claims payments, underwriting expenses, stockholder dividend payments, and common stock repurchases. Those investing cash inflows were partially offset by investments of premiums received and the reinvestment of funds from investment sales, maturities, redemptions and interest income.

Previous wording

Net cash used by investing activities for the three months ended March 31, 2024, related primarily to investment of premiums received and the reinvestment of funds from investment sales, maturities, redemptions, and interest income. The cash used in these investment activities was partially offset by investment sales, maturities, and redemptions whose proceeds were used to fund claims payments, underwriting expenses, stockholder dividend payments, and common stock repurchases.

Current wording

Net cash used in investing activities for the six months ended June 30, 2024, related primarily to investment of premiums received and the reinvestment of funds from investment sales, maturities, redemptions, and interest income. The cash used in these investment activities was partially offset by investment sales, maturities, and redemptions whose proceeds were used to fund claims payments, underwriting expenses, stockholder dividend payments, and common stock repurchases.

Previous wording

Net cash used in financing activities for each of the three months ended March 31, 2025 and 2024, related primarily to stockholder dividend payments and common stock repurchases.

Current wording

Net cash used in financing activities for each of the six months ended June 30, 2025 and 2024, related primarily to stockholder dividend payments and common stock repurchases.

Previous wording

We paid $7.5 million and $7.8 million in dividends to our stockholders and eligible equity plan award holders for the three months ended March 31, 2025 and 2024, respectively. The declaration and payment of future dividends to our stockholders, including any special dividends, will be at the discretion of our Board of Directors (Board) and will depend upon many factors including our financial position, capital requirements of our operating subsidiaries, legal and regulatory requirements, and any other factors that our Board deems relevant. On April 30, 2025, the Board declared a quarterly dividend per share of $0.32, which is payable May 28, 2025 to stockholders of record on May 14, 2025.

Current wording

We paid $15.4 million in dividends to our stockholders and eligible equity plan award holders for each of the six months ended June 30, 2025 and 2024. The declaration and payment of future dividends to our stockholders, including any special dividends, will be at the discretion of our Board of Directors (Board) and will depend upon many factors including our financial position, capital requirements of our operating subsidiaries, legal and regulatory requirements, and any other factors that our Board deems relevant. On July 30, 2025, the Board declared a quarterly dividend per share of $0.32, which is payable August 27, 2025 to stockholders of record on August 13, 2025.

Previous wording

We repurchased 406,101 shares of our common stock for $20.2 million during the three months ended March 31, 2025. Future repurchases of our common stock will be at the discretion of our Board and will depend upon many factors, including our financial position, capital requirements of our operating subsidiaries, general business and socioeconomic conditions, legal, tax, regulatory, and/or contractual restrictions, and any other factors that our Board deems relevant.

Current wording

We repurchased 482,000 shares of our common stock for $23.2 million during the three months ended June 30, 2025 and we repurchased 888,101 shares of our common stock for $43.4 million during the six months ended June 30, 2025. Future repurchases of our common stock will be at the discretion of our Board and will depend upon many factors, including our financial position, capital requirements of our operating subsidiaries, general business and socioeconomic conditions, legal, tax, regulatory, and/or contractual restrictions, and any other factors that our Board deems relevant.

Previous wording

As of March 31, 2025, the capital resources available to us consisted of $1,075.7 million of stockholders’ equity and the $92.4 million Deferred Gain.

Current wording

As of June 30, 2025, the capital resources available to us consisted of $1,083.1 million of stockholders’ equity and the $90.7 million Deferred Gain.