Employers Holdings, Inc.

Previous wording

We provide workers’ compensation insurance throughout most of the United States, with a concentration in California, where 47% of our trailing twelve month gross written premiums, excluding adjustments, are generated. In February 2026, we launched a new excess workers’ compensation product focused on self-insured enterprises in several jurisdictions across the United States. We wrote our first excess workers’ compensation policy in June 2026. Our revenues primarily consist of net premiums earned, net investment income, and net realized and unrealized gains and losses on investments.

Current wording

We provide workers’ compensation insurance throughout most of the United States, with a concentration in California, where 47% of our trailing twelve month gross written premiums, excluding adjustments, are generated. In February 2026, we launched a new excess workers’ compensation product focused on self-insured enterprises in several jurisdictions across the United States, and wrote our first excess workers’ compensation policy in June 2026. Our revenues primarily consist of net premiums earned, net investment income, and net realized and unrealized gains and losses on investments.

Previous wording

Our net income was $29.1 million and $39.2 million for the three and six months ended June 30, 2026, compared to $29.7 million and $42.5 million for the corresponding periods of 2025. The key factors that affected our financial performance during the three and six months ended June 30, 2026, compared to the same periods of 2025, included:

Current wording

Our net income (loss) was $11.6 million and $50.8 million for the three and nine months ended September 30, 2026, compared to $(8.3) million and $34.2 million for the corresponding periods of 2025. The key factors that affected our financial performance during the three and nine months ended September 30, 2026, compared to the same periods of 2025, included:

Previous wording

•Net realized and unrealized gains on investments of $18.7 million and $17.0 million compared to $20.9 million and $8.1 million;

Current wording

•Net realized and unrealized (losses) gains on investments of $(3.2) million and $13.8 million compared to $21.2 million and $29.3 million;

Previous wording

•Underwriting loss of $10.1 million and $23.0 million compared to $11.0 million and $14.6 million.

Current wording

•Underwriting loss of $13.3 million and $36.3 million compared to $57.1 million and $71.8 million; and

Previous wording

Our 2026 underwriting results reflect lower net premiums earned, partially offset by reductions in losses and LAE, commission expenses, and underwriting expenses. Our investment results were primarily impacted by favorable net realized and unrealized gains on investments as net investment income was slightly higher for the quarter, but lower in the first half of 2026, as compared to prior year periods.

Current wording

Our 2026 underwriting results reflect lower net premiums earned, partially offset by the related reductions in losses and LAE, commission expenses, and underwriting expenses when compared to the prior year periods. Our investment results benefited from strong and steady net investment income in both periods, while the nine months ended also reflected moderate net realized and unrealized gains on investments.

Previous 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.

Current wording

Our 2025 underwriting results demonstrated moderate growth in net premiums earned, accompanied by reductions in both commission expense and underwriting expenses. These improvements were offset by higher losses and LAE. Our 2025 investment results were strong, driven by solid net investment income and favorable net realized and unrealized gains.

Previous wording

Our consolidated financial results of operations for the three and six months ended June 30, 2026 and 2025 are as follows:

Current wording

Our consolidated financial results of operations for the three and nine months ended September 30, 2026 and 2025 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 and six months ended June 30, 2026 and 2025 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 three and nine months ended September 30, 2026 and 2025 are as follows:

Previous wording

Gross premiums written were $163.4 million and $344.2 million for the three and six months ended June 30, 2026, respectively, compared to $203.3 million and $415.4 million for the corresponding periods of 2025, respectively. For the three and six months ended June 30, 2026, decreases in gross premiums written were largely driven by declines in both new and renewal business premiums, primarily reflecting our pricing and underwriting actions, which commenced in 2025 and continue in 2026, taken to return to historical underwriting margins. These decreases were partially offset by increases in our ending final audit premium accruals and a premium restitution of $2.5 million from a former policyholder reflected in both periods. Additionally, during the second quarter of 2026, we bound our first excess workers' compensation policy. Total in-force policies at June 30, 2026 were 127,601 compared to 134,421 in-force policies at June 30, 2025.

Current wording

Gross premiums written were $151.1 million and $495.4 million for the three and nine months ended September 30, 2026, respectively, compared to $183.9 million and $599.3 million for the corresponding periods of 2025, respectively. The decreases for both periods were largely driven by declines in both new and renewal business premiums, primarily reflecting our pricing and underwriting actions, which commenced in 2025 and continue throughout 2026, undertaken to return to historical underwriting margins. Renewal premium declines were also driven by lower endorsements. These decreases were partially offset by an increase in our ending final audit premium accrual and, for the nine months ended September 30, 2026, a $2.5 million premium restitution recorded in the second quarter of 2026. In addition, we continue to expand our product offerings, including excess workers' compensation policies, which we began underwriting in June 2026. Total in-force policies at September 30, 2026 were 124,043 compared to 135,414 in-force policies at September 30, 2025.

Previous wording

Net premiums written were $162.0 million and $341.4 million for the three and six months ended June 30, 2026, respectively, compared to $201.5 million and $411.8 million for the corresponding periods of 2025, respectively. Reinsurance premiums ceded were $1.4 million and $2.8 million for the three and six months ended June 30, 2026, respectively, compared to $1.8 million and $3.6 million for the corresponding period of 2025, respectively.

Current wording

Net premiums written were $149.7 million and $491.2 million for the three and nine months ended September 30, 2026, respectively, compared to $182.4 million and $594.2 million for the corresponding periods of 2025, respectively. Reinsurance premiums ceded were $1.4 million and $4.2 million for the three and nine months ended September 30, 2026, respectively, compared to $1.5 million and $5.1 million for the corresponding period of 2025, respectively.

Previous wording

Losses and LAE represents our largest expense item and includes claim payments made, amortization of the Deferred Gain, 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.

Current wording

Losses and LAE represents our largest expense item and includes claim payments made, 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, offset by amortization of the Deferred Gain. 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

The decrease in our calendar year losses and LAE during the three months ended June 30, 2026, as compared to the same period of 2025, was primarily due to lower earned premiums as our current accident year loss and LAE estimate remains consistent. The decrease in our calendar year losses and LAE during the six months ended June 30, 2026, as compared to the same period of 2025, was primarily due to lower earned premiums, partially offset by a higher current accident year loss and LAE estimate due to increased cumulative trauma (CT) claim frequency in California.

Current wording

The decrease in our calendar year losses and LAE during the three months ended September 30, 2026, as compared to the same period of 2025, was primarily due to the absence of prior accident year reserve strengthening, lower earned premiums, and a lower current accident year loss and LAE ratio, as the third quarter of 2025 included an increase in our current accident year loss estimate. The decrease in our calendar year losses and LAE during the nine months ended September 30, 2026, as compared to the same period of 2025, was primarily due to lower earned premiums, as our current accident year loss and LAE estimate remains consistent, and the absence of prior accident year adverse loss reserve development recognized in 2025.

Previous wording

Prior accident year net favorable loss reserve development totaled $0.4 million on our assigned risk business during the six months ended June 30, 2026. Prior accident year adverse loss reserve development totaled $1.6 million during the six months ended June 30, 2025, which included $0.7 million net adverse loss reserve development on our voluntary risk business and $0.9 million net adverse loss reserve development on our assigned risk business.

Current wording

Prior accident year net favorable loss reserve development on our assigned risk business totaled $0.3 million during the three months ended September 30, 2026. Prior accident year net adverse loss reserve development totaled $37.8 million during the three months ended September 30, 2025, which included $38.2 million net adverse loss reserve development on our voluntary business and $0.4 million of net favorable loss reserve development on our assigned risk business.

Previous wording

Our current accident year loss and LAE ratio excluding LPT related to our voluntary business was 72.0% for both the three and six months ended June 30, 2026 and consistent with the same ratio recorded for accident year 2025. The $2.5 million premium restitution referenced above reduced the current accident year loss and LAE ratios excluding LPT listed above by approximately 1.0 percentage point and 0.5 percentage point for the three and six months ended June 30, 2026, respectively.

Current wording

Our current accident year loss and LAE ratio excluding LPT related to our voluntary business was 72.0% for both the three and nine months ended September 30, 2026. The $2.5 million premium restitution referenced above reduced the current accident year loss and LAE ratio excluding LPT listed above by approximately 0.3 percentage point for the nine months ended September 30, 2026.

Previous wording

Our commission expense ratio was 12.8% and 12.9% for the three and six months ended June 30, 2026, respectively, compared to 13.2% and 12.9% for the corresponding periods of 2025, respectively, and our commission expense was $22.2 million and $45.9 million for the three and six months ended June 30, 2026, respectively, compared to $26.1 million and $49.1 million for the corresponding periods of 2025, respectively.

Current wording

Our commission expense ratio was 12.9% for each of the three and nine months ended September 30, 2026, compared to 12.0% and 12.6% for the corresponding periods of 2025, respectively, and our commission expense was $20.6 million and $66.5 million for the three and nine months ended September 30, 2026, respectively, compared to $23.0 million and $72.1 million for the corresponding periods of 2025, respectively.

Previous wording

Our underwriting expense ratio was 22.8% and 22.7% for the three and six months ended June 30, 2026, respectively, compared to 21.7% and 22.6% for the corresponding periods of 2025, respectively, and our underwriting expenses were $39.7 million and $80.6 million for the three and six months ended June 30, 2026, respectively, compared to $43.1 million and $86.0 million for the corresponding periods of 2025, respectively. Despite the reduction in our underwriting expenses, our underwriting expense ratio for the three and six months ended June 30, 2026 increased due to lower premiums earned. As highlighted below, we continue our disciplined focus on expense reductions.

Current wording

Our underwriting expense ratio was 24.3% and 23.2% for the three and nine months ended September 30, 2026, respectively, compared to 20.6% and 21.9% for the corresponding periods of 2025, respectively, and our underwriting expenses were $38.9 million and $119.5 million for the three and nine months ended September 30, 2026, respectively, compared to $39.6 million and $125.7 million for the corresponding periods of 2025, respectively. Despite the reduction in our underwriting expenses, our underwriting expense ratio for the three and nine months ended September 30, 2026 increased due to lower premiums earned. As highlighted below, we continue our disciplined focus on expense reductions.

Previous wording

The decrease in underwriting expenses for the three months ended June 30, 2026 was primarily the result of lower policyholder dividends of $1.4 million, net CECL provision on premiums receivable of $1.1 million, compensation-related expenses of $1.0 million, and premium taxes and assessments of $0.7 million. These decreases were partially offset by lower internal AO and other expense allocations of $0.8 million, each compared to the same period of 2025.

Current wording

The decrease in underwriting expenses for the three months ended September 30, 2026 was primarily the result of lower policyholder dividends of $1.2 million, net CECL provision on premiums receivable of $1.1 million, and premium taxes and assessments of $0.4 million. These decreases were partially offset by an increase in compensation-related expenses of $1.4 million and lower internal adjusting and other (AO) expense allocations of $0.6 million, each compared to the same period of 2025.

Previous wording

The decrease in underwriting expenses for the six months ended June 30, 2026 was primarily the result of lower compensation-related expenses of $3.6 million, policyholder dividends of $3.1 million, and premium taxes and assessments of $1.1 million. These decreases were partially offset by lower internal AO and other expense allocations of $2.9 million, each compared to the same period of 2025.

Current wording

The decrease in underwriting expenses for the nine months ended September 30, 2026 was primarily the result of lower policyholder dividends of $4.2 million, compensation-related expenses of $2.4 million, net CECL provision on premiums receivable of $1.5 million, and premium taxes and assessments of $1.5 million. These decreases were partially offset by lower internal AO and other expense allocations of $3.4 million, each compared to the same period of 2025.

Previous wording

Net investment income increased 1.1% and decreased 5.9% during the three and six months ended June 30, 2026, respectively, compared to the same periods of 2025. The increase for the three months ended June 30, 2026 was primarily related to higher yield on fixed maturity securities. The decrease for the six months ended June 30, 2026 was primarily attributable to reduced distributions from our investments in private equity limited partnerships, which were elevated in the prior period, and lower invested balances, partially offset by higher yields on fixed maturity securities resulting from our investment rebalancing activity in 2025.

Current wording

Net investment income increased 23.8% and 3.2% during the three and nine months ended September 30, 2026, respectively, compared to the same periods of 2025. The increase for the three months ended September 30, 2026 was primarily driven by increased returns from our investments in private equity limited partnerships, along with higher book yields on our fixed maturity securities resulting from our investment rebalancing activity in 2025. The increase for the nine months ended September 30, 2026 was primarily the result of higher book yields on our fixed maturity securities.

Previous wording

Net realized and unrealized gains and losses on our investments are reported separately from our net investment income. Net 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 on investments on our Consolidated Statements of Comprehensive Income (Loss).

Current wording

Net realized and unrealized gains and losses on our investments are reported separately from our net investment income. Net 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).

Previous wording

Net realized and unrealized gains on investments were $18.7 million and $17.0 million for the three and six months ended June 30, 2026, respectively, compared to $20.9 million and $8.1 million for the corresponding periods of 2025, respectively. The net realized and unrealized gains on investments for the three months ended June 30, 2026 and 2025 included $19.2 million and $21.0 million of net realized and unrealized gains on equity securities and other investments, respectively, and $0.5 million and $0.1 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, 2026 and 2025 included $18.0 million and $9.1 million of net realized and unrealized gains on equity securities and other investments, respectively, and $1.0 million of net realized losses on fixed maturity securities in each period.

Current wording

Net realized and unrealized (losses) gains on investments were $(3.2) million and $13.8 million for the three and nine months ended September 30, 2026, respectively, compared to $21.2 million and $29.3 million for the corresponding periods of 2025, respectively. The net realized and unrealized (losses) gains on investments for the three months ended September 30, 2026 and 2025 included $(3.2) million and $23.7 million of net realized and unrealized (losses) gains on equity securities and other investments, respectively, and $2.5 million of net realized losses on fixed maturity securities for the three months ended September 30, 2025. The net realized and unrealized gains on investments for the nine months ended September 30, 2026 and 2025 included $14.8 million and $32.8 million of net realized and unrealized gains on equity securities and other investments, respectively, and $1.0 million and $3.5 million of net realized losses on fixed maturity securities, respectively.

Previous wording

The net investment gains on our equity securities during the three and six months ended June 30, 2026 were largely consistent with the performance of the U.S. equity markets. The net investment gains on our other investments during the three and six months ended June 30, 2026 resulted 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, 2026 included a $0.4 million and $0.7 million increase in our allowance for CECL.

Current wording

The net investment gains on our equity securities during the three and nine months ended September 30, 2026 were largely consistent with the performance of the U.S. equity markets. The net investment losses on our other investments during the three and nine months ended September 30, 2026 relate primarily to reductions in private equity partnership investment net asset value due to distributed investment returns. The net realized investment losses on our fixed maturity securities during the three and nine months ended September 30, 2026 included a $0.1 million decrease and $0.6 million increase in our allowance for CECL.

Previous 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.

Current wording

The net investment gains on our equity securities during the three and nine months ended September 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 September 30, 2025 resulted primarily from an increase in the underlying value of the private equity limited partnership interests we own. The net investment gains on our other investments during the nine months ended September 30, 2025 resulted primarily from an increase in the underlying value of the private equity limited partnership interests we own partially offset by a reduction in net asset value due to distributed investment returns from those same investments. The net realized investment losses on our fixed maturity securities during the three and nine months ended September 30, 2025 were primarily the result of sales associated with the rebalancing of our fixed maturity investment portfolio partially offset in each period by a $0.5 million decrease in our allowance for CECL.

Previous wording

Interest and financing expenses were $1.3 million and $2.4 million for the three and six months ended June 30, 2026, respectively, compared to less than $0.1 million and $0.1 million for the three and six months ended June 30, 2025. The increase for the three and six months ended June 30, 2026, resulted primarily from interest expense associated with our various advances with the FHLB.

Current wording

Interest and financing expenses were $1.3 million and $3.7 million for the three and nine months ended September 30, 2026, respectively, compared to $0.2 million and $0.3 million for the three and nine months ended September 30, 2025, respectively. The increase for the three and nine months ended September 30, 2026, resulted primarily from interest expense associated with our various advances with the FHLB.

Previous wording

Income tax expense was $5.6 million and $8.2 million for the three and six months ended June 30, 2026, respectively, compared to $7.3 million and $10.4 million for the corresponding periods of 2025, respectively. The effective tax rate was 16.1% and 17.3% for the three and six months ended June 30, 2026, compared to 19.7% for each of the corresponding periods of 2025, respectively. The effective rates during each of the periods presented deviate favorably from the statutory rate of 21.0% due to, in part, income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, Deferred Gain amortization and related adjustments, income adjustments related to the Fund, and tax credits utilized.

Current wording

Income tax expense was $2.9 million and $11.1 million for the three and nine months ended September 30, 2026, respectively, compared to $(2.9) million and $7.4 million for the corresponding periods of 2025, respectively. The effective tax rate was 20.0% and 17.9% for the three and nine months ended September 30, 2026, compared to 25.9% and 17.8% for the corresponding periods of 2025, respectively. The effective rates during each of the periods presented deviate from the statutory rate of 21.0% due to, in part, income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, Deferred Gain amortization and related adjustments, income adjustments related to the Fund, and tax credits utilized.

Previous wording

Total cash and investments at the holding company were $34.2 million at June 30, 2026, consisting of $30.5 million of cash and cash equivalents, $3.2 million of fixed maturity securities, and $0.5 million of equity securities.

Current wording

Total cash and investments at the holding company were $32.0 million at September 30, 2026, consisting of $27.3 million of cash and cash equivalents, $4.2 million of fixed maturity securities, and $0.5 million of equity securities.

Previous wording

On May 28, 2024, EHI entered into a Credit Agreement (as amended, the Credit Agreement) which provides for a $25.0 million, unsecured, three-year revolving credit facility and is guaranteed by EGI and CGI. On July 29, 2026, EHI and Wells Fargo Bank, National Association, entered into Amendment No. 1 to the Credit Agreement. The Credit Agreement provides for a $35.0 million, unsecured, three-year revolving credit facility and remains guaranteed by EGI and CGI. Borrowings under the Credit Agreement may be used for working capital and general corporate purposes of EHI and its subsidiaries.

Current wording

On May 28, 2024, EHI entered into a Credit Agreement which provides for a $25.0 million, unsecured, three-year revolving credit facility and is guaranteed by EGI and CGI. On July 29, 2026, EHI and Wells Fargo Bank, National Association, entered into Amendment No. 1 to the Credit Agreement. The Credit Agreement, as amended, provides for a $35.0 million, unsecured, three-year revolving credit facility and remains guaranteed by EGI and CGI. Borrowings under the Credit Agreement may be used for working capital and general corporate purposes of EHI and its subsidiaries.

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 0.50% and the Adjusted Term SOFR for a one-month tenor plus 1.00%, or (ii) an Adjusted Term SOFR, defined as the applicable Adjusted Term SOFR plus 1.50%. Interest paid and/or fees incurred pursuant to the Credit Agreement, as applicable, was $0.3 million and less than $0.1 million for the three months ended June 30, 2026 and 2025, respectively, and $0.4 million and $0.1 million for the six months ended June 30, 2026 and 2025, respectively.

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 0.50% and the Adjusted Term SOFR for a one-month tenor plus 1.00%, or (ii) an Adjusted Term SOFR, defined as the applicable Adjusted Term SOFR plus 1.50%. Interest paid and/or fees incurred pursuant to the Credit Agreement, as applicable, was $0.2 million and less than $0.1 million for the three months ended September 30, 2026 and 2025, respectively, and $0.7 million and $0.1 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

The Credit Agreement contains covenants that require EHI and its consolidated subsidiaries to maintain: (i) a minimum consolidated net worth, defined as EHI’s total stockholders’ equity excluding any accumulated other comprehensive income or loss, of no less than $800.0 million; and (ii) a debt to total capitalization ratio of no more than 35%, in each case as determined in accordance with the Credit Agreement. As of June 30, 2026, EHI has remained in compliance with all of the covenants associated with the Credit Agreement since its inception.

Current wording

The Credit Agreement, as amended, contains covenants that require EHI and its consolidated subsidiaries to maintain: (i) a minimum consolidated net worth, defined as EHI’s total stockholders’ equity excluding any accumulated other comprehensive income or loss, of no less than $700.0 million; and (ii) a debt to total capitalization ratio of no more than 27.5%, in each case as determined in accordance with the Credit Agreement. As of September 30, 2026, EHI has remained in compliance with all of the covenants associated with the Credit Agreement since its inception.

Previous wording

On February 17, 2026, EHI borrowed $20.0 million under the Credit Agreement as part of our recapitalization plan. The advance bears interest at a rate of 5.15% based on the three-month Adjusted Term SOFR, with a reset date of August 18, 2026. As of June 30, 2026, $20.0 million was outstanding under the Credit Agreement. The outstanding balance is classified as long-term debt as the amended Credit Agreement expires on July 29, 2029. Advances can be repaid at any time without prepayment penalties or additional fees.

Current wording

On February 17, 2026, EHI borrowed $20.0 million under the Credit Agreement as part of our recapitalization plan. The advance carried an interest rate of 5.15% based on the three-month Adjusted Term SOFR, with a reset date of August 18, 2026. On August 18, 2026, the Company repaid the $20.0 million outstanding principal balance under the Credit Agreement. As of September 30, 2026, no amount was outstanding under the Credit Agreement. Advances can be repaid at any time without prepayment penalties or additional fees.

Previous wording

Total cash and investments held by our operating subsidiaries was $2,415.2 million at June 30, 2026, consisting of $83.0 million of cash and cash equivalents, and restricted cash, $2,034.7 million of fixed maturity securities, $179.7 million of equity securities, $96.1 million of other invested assets, and $21.7 million of short-term investments. Sources of immediate and unencumbered liquidity at our operating subsidiaries as of June 30, 2026 consisted of $82.8 million of cash and cash equivalents, $170.9 million of publicly traded equity securities whose proceeds are available within two business days, and $787.2 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 $2,302.8 million at September 30, 2026, consisting of $48.6 million of cash and cash equivalents, and restricted cash, $1,970.1 million of fixed maturity securities, $181.8 million of equity securities, $89.1 million of other invested assets, and $13.2 million of short-term investments. Sources of immediate and unencumbered liquidity at our operating subsidiaries as of September 30, 2026 consisted of $48.4 million of cash and cash equivalents, $172.7 million of publicly traded equity securities whose proceeds are available within two business days, and $773.9 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

These advances were assumed by EHI through the intercompany loan agreements as described above and executed as part of the Company’s recapitalization plan. Interest incurred and paid on these borrowings during the three and six months ended June 30, 2026 was $1.0 million and $1.9 million, respectively.

Current wording

These advances were assumed by EHI through the intercompany loan agreements as described above and executed as part of the Company’s recapitalization plan. Interest incurred and paid on these borrowings during the three and nine months ended September 30, 2026 was $1.1 million and $3.0 million, respectively.

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 $585.3 million and $587.4 million were on deposit at June 30, 2026 and December 31, 2025, 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, 2026 and December 31, 2025.

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 $559.6 million and $587.4 million were on deposit at September 30, 2026 and December 31, 2025, 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 September 30, 2026 and December 31, 2025.

Previous wording

Net cash used in operating activities for the six months ended June 30, 2026 included net claims payments of $279.9 million, underwriting expenses paid of $75.5 million, commissions paid of $48.4 million, interest paid of $2.4 million and federal income taxes paid of $1.4 million. The cash outflows used in these activities were partially offset by net premiums received of $345.9 million and investment income received of $53.6 million.

Current wording

Net cash used in operating activities for the nine months ended September 30, 2026 included net claims payments of $431.1 million, underwriting expenses paid of $110.1 million, commissions paid of $70.3 million and interest paid of $3.7 million. The cash outflows used in these activities were partially offset by net premiums received of $508.0 million, investment income received of $86.3 million and federal tax refund received of $1.4 million.

Previous 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.

Current wording

Net cash provided by operating activities for the nine months ended September 30, 2025, included net premiums received of $584.3 million and investment income received of $85.2 million. The cash provided by these operating activities was partially offset by net claims payments of $417.4 million, underwriting expenses paid of $120.7 million, commissions paid of $74.4 million, other non-recurring expenses paid of $1.1 million, and federal income taxes paid of $11.6 million.

Previous wording

Net cash used in investing activities for the six months ended June 30, 2026 related primarily to investments of premiums received and the reinvestment of funds from investment sales, maturities, redemptions, and interest income. The cash outflows used in these activities were 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 nine months ended September 30, 2026 related primarily to investments of premiums received and the reinvestment of funds from investment sales, maturities, redemptions, and interest income. The cash outflows used in these activities were 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 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.

Current wording

Net cash provided by investing activities for the nine months ended September 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 in financing activities for the six months ended June 30, 2026 related primarily to stockholder dividend payments and common stock repurchases offset by FHLB advances and borrowings on the Credit Agreement.

Current wording

Net cash used in financing activities for the nine months ended September 30, 2026 related primarily to stockholder dividend payments and common stock repurchases partially offset by FHLB advances.

Previous wording

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

Current wording

Net cash used in financing activities for the nine months ended September 30, 2025 related primarily to stockholder dividend payments and common stock repurchases.

Previous wording

We paid $12.6 million and $15.4 million in dividends to our stockholders and eligible equity plan award holders for the six months ended June 30, 2026 and 2025, 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 July 29, 2026, the Board declared a quarterly dividend per share of $0.34, which is payable August 26, 2026 to stockholders of record on August 12, 2026.

Current wording

We paid $18.8 million and $22.8 million in dividends to our stockholders and eligible equity plan award holders for the nine months ended September 30, 2026 and 2025, 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 October 28, 2026, the Board declared a quarterly dividend per share of $0.34, which is payable December 3, 2026 to stockholders of record on November 12, 2026.