Kinsale Capital Group, Inc.

Previous wording

The discussion and analysis below include certain forward-looking statements that are subject to risks, uncertainties and other factors described in "Risk Factors" in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025 and in our Annual Report on Form 10-K for the year ended December 31, 2024. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors.

Current wording

The discussion and analysis below include certain forward-looking statements that are subject to risks, uncertainties and other factors described in "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors.

Previous wording

The results of operations for the three and 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 the Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2026, 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 the Annual Report on Form 10-K for the year ended December 31, 2025.

Previous wording

We have one reportable segment, our Excess and Surplus Lines Insurance segment, which offers property and casualty ("P&C") insurance products through the E&S market. For the first nine months of 2025, the percentage breakdown of our gross written premiums was 70.1% casualty and 29.9% property. Our commercial underwriting divisions include Commercial Property, Excess Casualty, Small Business Casualty, General Casualty, Construction, Small Business Property, Allied Health, Entertainment, Products Liability, Commercial Auto, Energy, Excess Professional, Life Sciences, Professional Liability, Inland Marine, Environmental, Health Care, Public Entity, Management Liability, Agribusiness Casualty, Aviation, Agribusiness Property, Ocean Marine, Product Recall and Railroad. We also write homeowners' coverage in the personal lines market, which in aggregate represented 3.0% of our gross written premiums in the first nine months of 2025.

Current wording

We have one reportable segment, our Excess and Surplus Lines Insurance segment, which offers property and casualty ("P&C") insurance products through the E&S market. For the first three months of 2026, the percentage breakdown of our gross written premiums was 76.0% casualty and 24.0% property. Our commercial underwriting divisions include Excess Casualty, Commercial Property, General Casualty, Small Business Casualty, Construction, Allied Health, Small Business Property, Products Liability, Entertainment, Commercial Auto, Energy, Excess Professional, Inland Marine, Life Sciences, Environmental, Professional Liability, Health Care, Public Entity, Agribusiness Property, Management Liability, Agribusiness Casualty, Aviation, Ocean Marine, and Product Recall. We also write homeowners' coverage in the personal lines market, which in aggregate represented 2.5% of our gross written premiums in the first three months of 2026.

Previous wording

Underwriting income was $268.6 million for the nine months ended September 30, 2025 compared to $228.0 million for the nine months ended September 30, 2024, an increase of 17.8%. The corresponding combined ratios were 77.5% for the nine months ended September 30, 2025 compared to 77.6% for the nine months ended September 30, 2024. The increase in underwriting income for the first nine months of 2025 compared to the same period last year was primarily due to continued growth in the business and higher favorable development of loss reserves from prior accident years offset in part by higher catastrophe losses incurred.

Current wording

Underwriting income was $94.5 million for the three months ended March 31, 2026 compared to $67.5 million for the three months ended March 31, 2025, an increase of 40.1%. The corresponding combined ratios were 77.4% for the three months ended March 31, 2026 compared to 82.1% for the three months ended March 31, 2025. The increase in underwriting income for the first three months of 2026 compared to the same period last year was primarily due to growth in net earned premiums, lower catastrophe losses and higher favorable development of loss reserves from prior accident years.

Previous wording

Gross written premiums were $1.5 billion for the nine months ended September 30, 2025 compared to $1.4 billion for the nine months ended September 30, 2024, an increase of $99.0 million, or 6.9%. Gross written premiums in our Commercial Property Division, our largest division, decreased 15.2% relative to the prior year period due to rate declines and an increasingly competitive environment including from standard carriers. Excluding our Commercial Property Division, gross written premiums grew 14.4% due primarily to continued strong submission flow from brokers across most divisions. The average premium per policy written was $13,800 in the first nine months of 2025 compared to $15,400 in the first nine months of 2024. Excluding our personal insurance division, which has a relatively low premium per policy written, the average premium per policy written was $14,400 for the first nine months of 2025 and $16,200 for the first nine months of 2024. The decrease in average premium per policy for the first nine months of 2025 over the same period last year was due primarily to a decrease in gross written premiums in our Commercial Property Division.

Current wording

The average premium per policy written was $12,200 in the first three months of 2026 compared to $14,200 in the first three months of 2025. Excluding our Personal Insurance Division, which has a relatively low premium per policy written, the average premium per policy written was $12,600 for the first three months of 2026 and $14,700 for the first three months of 2025. The decrease in average premium per policy for the first three months of 2026 over the same period last year was due to an increase in competition on larger accounts, primarily in our Commercial Property Division.

Previous wording

Net written premiums increased by $55.1 million, or 15.8%, to $405.1 million for the three months ended September 30, 2025 from $349.9 million for the three months ended September 30, 2024. The increase in net written premiums for the third quarter of 2025 compared to the same period last year was primarily due to higher gross written premiums. The net retention ratio was 83.3% for the three months ended September 30, 2025 compared to 78.0% for the three months ended September 30, 2024. The increase in the net retention ratio is primarily attributable to an increase in retention on our reinsurance treaties and change in the mix of business.

Current wording

Net written premiums increased by $21.6 million, or 5.6%, to $403.3 million for the three months ended March 31, 2026 from $381.7 million for the three months ended March 31, 2025. The net retention ratio was 83.7% for the three months ended March 31, 2026 compared to 78.8% for the same period last year. The increases in net written premiums and the net retention ratio were primarily due to an increase in the retention on our reinsurance treaties and change in the mix of business.

Previous wording

Net earned premiums increased by $169.6 million, or 17.1%, to $1.2 billion for the nine months ended September 30, 2025 from $990.7 million for the nine months ended September 30, 2024 due primarily to growth in gross written premiums.

Current wording

Net earned premiums increased by $41.1 million, or 11.2%, to $406.9 million for the three months ended March 31, 2026 from $365.8 million for the three months ended March 31, 2025 due primarily to continued earning of premium from prior-period growth in gross written premiums and higher net retention levels.

Previous wording

The loss ratio was 53.9% for the three months ended September 30, 2025 compared to 56.1% for the three months ended September 30, 2024. The decrease in the loss ratio in the third quarter of 2025 compared to the third quarter of 2024 was due primarily to lower catastrophe losses incurred and higher relative net favorable development of loss reserves from prior accident years, particularly in our property lines of business.

Current wording

The loss ratio was 56.3% for the three months ended March 31, 2026 compared to 62.1% for the three months ended March 31, 2025. The decrease in the loss ratio for the first three months of 2026 compared to the first three months of 2025 was due primarily to lower catastrophe losses incurred in the period and higher relative net favorable development of prior-year loss reserves, particularly in our property lines of business.

Previous wording

During the three months ended September 30, 2025, prior accident years developed favorably by $15.8 million, of which $18.0 million was attributable to the 2021 through 2024 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development primarily in our construction liability business in the 2016 through 2019 accident years and adjustments to actuarial assumptions in the 2020 through 2024 accident years to reflect inflation uncertainty around construction defect exposures.

Current wording

During the three months ended March 31, 2026, prior accident years developed favorably by $18.7 million, of which $20.6 million was attributable to the 2020 through 2025 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development primarily in our construction liability business in the 2018 and 2019 accident years.

Previous wording

During the three months ended September 30, 2024, prior accident years developed favorably by $10.1 million, of which $14.9 million was attributable to the 2021 through 2023 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development largely from the 2017 through 2019 accident years due to construction defect claims that are more exposed to inflation. Incurred losses and loss adjustment expenses for the three months ended September 30, 2024 included $13.6 million of net catastrophe losses primarily related to Hurricanes Helene, Francine and Beryl and tornadoes in the Midwest.

Current wording

During the three months ended March 31, 2025, prior accident years developed favorably by $14.6 million, of which $16.7 million was attributable to the 2021 through 2024 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development primarily from the 2017 through 2019 accident years and more conservative actuarial assumptions in the 2021 through 2023 accident years for lines of business exposed to construction liability. Incurred losses and loss adjustment expenses for the three months ended March 31, 2025 included $22.6 million of net catastrophe losses primarily related to the Palisades Fire.

Previous wording

The expense ratio was 21.0% for the three months ended September 30, 2025 compared to 19.6% for the three months ended September 30, 2024. The increase in the expense ratio was primarily due to lower ceding commissions as a result of increased retention on our reinsurance treaties effective with the June 2025 renewal. Direct commissions paid as a percent of gross written premiums was 14.8% and 14.7% for the three months ended September 30, 2025 and 2024, respectively.

Current wording

The expense ratio was 21.1% for the three months ended March 31, 2026 compared to 20.0% for the three months ended March 31, 2025. The increase in the expense ratio was primarily due to lower ceding commissions as a result of increased retention on our reinsurance treaties. Direct commissions paid as a percentage of gross written premiums was 14.9% and 14.8% for the three months ended March 31, 2026 and 2025, respectively.

Previous wording

Net investment income increased by 29.0% to $139.9 million for the nine months ended September 30, 2025 from $108.4 million for the nine months ended September 30, 2024. The increase in the first nine months of 2025 compared to the same period last year was primarily due to growth in our investment portfolio largely generated from the investment of strong operating cash flows. Our investment portfolio, excluding cash equivalents and unrealized gains and losses, had an annualized gross investment return of 4.3% for both the nine months ended September 30, 2025 and 2024.

Current wording

Net investment income increased by 26.5% to $55.4 million for the three months ended March 31, 2026 from $43.8 million for the three months ended March 31, 2025. The increase in the first three months of 2026 compared to the same period last year was primarily due to growth in our investment portfolio largely generated from the investment of strong operating cash flows. Our investment portfolio, excluding cash equivalents and unrealized gains and losses, had an annualized gross investment return of 4.5% and 4.3% for the three months ended March 31, 2026 and 2025, respectively.

Previous wording

Our effective tax rate was 20.8% for the three months ended September 30, 2025 compared to 20.9% for the three months ended September 30, 2024. The effective tax rates were lower than the federal statutory rate of 21% due to the tax benefits from stock-based compensation, including stock options exercised, and from tax-exempt investment income.

Current wording

Our effective tax rate was 19.4% for the three months ended March 31, 2026 compared to 20.6% for the three months ended March 31, 2025. The effective tax rate was lower than the federal statutory rate of 21% primarily due to the tax benefits from stock-based compensation, including stock options exercised, and from tax-exempt investment income.

Previous wording

Our annualized return on equity was 29.1% for the nine months ended September 30, 2025 compared to 32.3% for the nine months ended September 30, 2024. Our annualized operating return on equity was 25.4% for the nine months ended September 30, 2025 compared to 28.2% for the nine months ended September 30, 2024. The decrease in annualized operating return on equity for the nine months ended September 30, 2025 compared to the prior period was due primarily to higher average stockholders' equity. Average stockholders' equity increased primarily as a result of profitable growth and an increase in the fair value of our fixed income and equity securities offset in part by share repurchases.

Current wording

Our annualized return on equity was 22.9% for the three months ended March 31, 2026 compared to 23.3% for the three months ended March 31, 2025. Our annualized operating return on equity was 24.0% for the three months ended March 31, 2026 compared to 22.5% for the three months ended March 31, 2025. The increase in annualized operating return on equity for the three months ended March 31, 2026 compared to the prior period was due primarily to higher profitability compared to the prior-year period offset in part by higher average stockholders' equity.

Previous wording

In August 2025, we filed a universal shelf registration statement with the SEC that expires in 2028. We can use this shelf registration to issue an unspecified amount of common stock, preferred stock, depositary shares and warrants. The specific terms of any securities we issue under this registration statement will be provided in the applicable prospectus supplements.

Current wording

In August 2025, we filed a universal shelf registration statement with the SEC that expires in 2028. We can use this shelf registration to issue an unspecified amount of common stock, preferred stock, depositary shares and warrants.

Previous wording

In October 2024, the Company's Board of Directors authorized a share repurchase program authorizing the repurchase of up to $100.0 million of the Company's common stock. The shares may be repurchased from time to time in open market purchases, privately-negotiated transactions, block purchases, accelerated share repurchase agreements or a combination of methods and pursuant to safe harbors provided by Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934. The timing, manner, price and amount of any repurchases under the share repurchase program will be determined by the Company in its discretion. The stock repurchase program does not require the Company to repurchase any specific number of shares, and may be modified, suspended or terminated at any time. At September 30, 2025, the Company had $50.0 million of capacity remaining under its share repurchase program.

Current wording

In December 2025, our Board of Directors authorized a new share repurchase program authorizing the repurchase of up to $250.0 million of our common stock. The shares may be repurchased from time to time in open market purchases, privately-negotiated transactions, block purchases, accelerated share repurchase agreements or a combination of methods and pursuant to safe harbors provided by Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934. The timing, manner, price and amount of any repurchases under the share repurchase program will be determined by us in our discretion. The share repurchase program does not require us to repurchase any specific number of shares, and may be modified, suspended or terminated at any time.

Previous wording

Our cash flows for thenine months ended September 30, 2025 and 2024 were:

Current wording

Our cash flows for thethree months ended March 31, 2026 and 2025 were:

Previous wording

Net cash provided by operating activities was approximately $802.3 million for the nine months ended September 30, 2025 compared to $763.3 million for the same period in 2024. This increase was largely driven by higher premium volume and the timing of claim payments and reinsurance recoveries.

Current wording

Net cash provided by operating activities was approximately $248.9 million for the three months ended March 31, 2026 compared to $229.8 million for the same period in 2025. This increase was largely driven by higher investment income received and the timing of reinsurance recoveries offset in part by timing of claim payments and a decline in premium volume.

Previous wording

Net cash used in investing activities was $702.9 million for the nine months ended September 30, 2025 compared to $762.1 million for the nine months ended September 30, 2024. Net cash used in investing activities during the first nine months of 2025 included purchases of fixed-maturity securities of $1.8 billion, which included primarily asset- and mortgage-backed securities and corporate bonds. During the first nine months of 2025, we received proceeds of $677.6 million from sales of fixed-maturity securities, largely corporate bonds, asset-backed securities and, to a lesser extent, municipal securities and $554.3 million primarily from redemptions and maturities of asset- and mortgage-backed securities and corporate bonds. For the nine months ended September 30, 2025, purchases of equity securities of$131.4 million consisted of common stocks and ETFs. During the first nine months of 2025, we received proceeds of $14.6 million primarily from sales of common stocks. In addition, net purchases of short-term investments of $6.5 million consisted of U.S. Treasuries.

Current wording

Net cash used in investing activities was $114.4 million for the three months ended March 31, 2026 compared to $181.0 million for the three months ended March 31, 2025. Net cash used in investing activities during the first three months of 2026 included purchases of fixed-maturity securities of $361.8 million, which included primarily mortgage- and asset-backed securities and corporate bonds. During the first three months of 2026, we received proceeds of $182.7 million from sales of fixed-maturity securities, largely corporate bonds, and, to a lesser extent, asset- and mortgage-backed securities and municipal securities and $92.8 million primarily from redemptions and maturities of asset- and mortgage-backed securities. For the three months ended March 31, 2026, purchases of equity securities of$33.1 million consisted of common stocks and ETFs. During the first three months of 2026, we received proceeds of $8.6 million primarily from sales of common stocks and preferred stocks. In addition, net sales of short-term investments of $3.9 million consisted of U.S. Treasuries.

Previous wording

Net cash used in investing activities of $762.1 million during the nine months of 2024 included purchases of fixed-maturity securities of $1.3 billion, which included primarily corporate bonds, asset- and mortgage-backed securities, and to a lesser extent, U.S. Treasuries and municipal securities. During the first nine months of 2024, we received proceeds of $274.2 million from sales of fixed-maturity securities, largely corporate bonds, mortgage- and asset-backed securities, municipal securities, U.S. Treasuries and government agency bonds and $317.4 million from redemptions and maturities of asset- and mortgage-backed securities and corporate bonds. For the nine months ended September 30, 2024, purchases of equity securities of$115.1 million consisted of common stocks and ETFs. During the first nine months of 2024, we received proceeds of $34.2 million primarily from sales of ETFs and common stocks.

Current wording

Net cash used in investing activities of $181.0 million during the first three months of 2025 included purchases of fixed-maturity securities of $369.5 million, which included primarily corporate bonds and asset- and mortgage-backed securities. During the first three months of 2025, we received proceeds of $107.0 million from sales of fixed-maturity securities, largely corporate bonds, mortgage- and asset-backed securities, and, to a lesser extent, municipal securities and $144.7 million from redemptions and maturities of asset- and mortgage-backed securities and corporate bonds. For the three months ended March 31, 2025, purchases of equity securities of$42.7 million consisted primarily of common stocks. During the first three months of 2025, we received proceeds of $11.6 million primarily from sales of common stocks. Cash used in investing activities was partially offset by unsettled purchases of cash equivalents totaling $15.0 million as of March 31, 2025.

Previous wording

During the first nine months of 2025, cash used in financing activities reflected dividends paid of $0.51 per common share, or $11.9 million in aggregate, share repurchases of $40.0 million and payroll taxes withheld and remitted on restricted stock awards of $6.3 million, offset in part by proceeds received from our equity compensation plans of $0.6 million. In addition, in September 2025, we drew down $15.0 million from the Credit Facility to fund the construction of our new corporate headquarters.

Current wording

During the first three months of 2026, cash used in financing activities reflected dividends paid of $0.25 per common share, or $5.8 million in aggregate, share repurchases of $62.5 million and payroll taxes withheld and remitted on restricted stock awards of $6.7 million, offset in part by proceeds received from our equity compensation plans of $0.5 million.

Previous wording

During the first nine months of 2024, cash used in financing reflected dividends paid of $0.45 per common share, or $10.5 million in aggregate. In addition, for the nine months ended September 30, 2024, payroll taxes withheld and remitted on restricted stock awards were $7.0 million, offset in part by proceeds received from our equity compensation plans of $1.2 million.

Current wording

During the first three months of 2025, cash used in financing reflected dividends paid of $0.17 per common share, or $4.0 million in aggregate, share repurchases of $10.0 million and payroll taxes withheld and remitted on restricted stock awards of $6.2 million, offset in part by proceeds received from our equity compensation plans of $0.2 million.

Previous wording

Reinsurance contracts do not relieve us from our obligations to policyholders. Failure of the reinsurer to honor its obligation could result in losses to us, and therefore, we established an allowance for credit risk based on historical analysis of credit losses for highly rated companies in the insurance industry. In formulating our reinsurance programs, we are selective in our choice of reinsurers and we consider numerous factors, the most important of which are the financial stability of the reinsurer, its history of responding to claims and its overall reputation. In an effort to minimize our exposure to the insolvency of our reinsurers, we review the financial condition of each reinsurer regularly. In addition, we continually monitor for rating downgrades involving any of our reinsurers. At September 30, 2025, all reinsurance contracts that our insurance subsidiary was a party to were with companies with A.M. Best ratings of "A-" (Excellent) or better. As of September 30, 2025, we recorded an allowance for credit losses of $1.1 million related to our reinsurance balances.

Current wording

Reinsurance contracts do not relieve us from our obligations to policyholders. Failure of the reinsurer to honor its obligation could result in losses to us, and therefore, we established an allowance for credit risk based on historical analysis of credit losses for highly rated companies in the insurance industry. In formulating our reinsurance programs, we are selective in our choice of reinsurers and we consider numerous factors, the most important of which are the financial stability of the reinsurer, its history of responding to claims and its overall reputation. In an effort to minimize our exposure to the insolvency of our reinsurers, we review the financial condition of each reinsurer regularly. In addition, we continually monitor for rating downgrades involving any of our reinsurers. At March 31, 2026, all reinsurance contracts that our insurance subsidiary was a party to were with companies with A.M. Best ratings of "A-" (Excellent) or better. As of March 31, 2026, we recorded an allowance for credit losses of $1.0 million related to our reinsurance balances.

Previous wording

At September 30, 2025, total stockholders' equity and tangible stockholders' equity were $1.9 billion compared to total stockholders' equity and tangible stockholders' equity of $1.5 billion at December 31, 2024. The increases in both total and tangible stockholders' equity over the prior year-end balances were due to profits generated during the period, an increase in the fair value of our fixed-maturity investments and net activity related to our share-based compensation plan offset in part by share repurchases and payment of dividends. Tangible stockholders’ equity is a non-GAAP financial measure. See "—Reconciliation of non-GAAP financial measures" for a reconciliation of stockholders' equity in accordance with GAAP to tangible stockholders' equity.

Current wording

Total stockholders' equity and tangible stockholders' equity were $2.0 billion at both March 31, 2026 and December 31, 2025. Tangible stockholders’ equity is a non-GAAP financial measure. See "—Reconciliation of non-GAAP financial measures" for a reconciliation of stockholders' equity in accordance with GAAP to tangible stockholders' equity.

Previous wording

At September 30, 2025, our cash and invested assetsof $4.9 billion consisted of fixed-maturity securities, equity securities, short-term investments, cash and cash equivalents and real estate investments. At September 30, 2025, the majority of the investment portfolio was composed of fixed-maturity securities of $4.2 billion that were classified as available-for-sale. Available-for-sale investments are carried at fair value with unrealized gains and losses on these securities, net of applicable taxes, reported as a separate component of accumulated other comprehensive income. At September 30, 2025, we also held $571.1 million of equity securities, which included common stocks, ETFs and non-redeemable preferred stock, $10.9 million of short-term investments, $170.2 million of cash and cash equivalents and $15.0 million of real estate investments.

Current wording

At March 31, 2026, our cash and invested assetsof $5.3 billion consisted of fixed-maturity securities, equity securities, cash and cash equivalents and real estate investments. At March 31, 2026, the majority of the investment portfolio was composed of fixed-maturity securities of $4.4 billion that were classified as available-for-sale. Available-for-sale investments are carried at fair value with unrealized gains and losses on these securities, net of applicable taxes, reported as a separate component of accumulated other comprehensive income. At March 31, 2026, we also held $644.5 million of equity securities, which included common stocks, ETFs and non-redeemable preferred stock, $223.3 million of cash and cash equivalents and $55.0 million of real estate investments.

Previous wording

Ourfixed-maturity securities, including cash equivalents, had a weighted average duration of 3.6 years and 3.0 years at September 30, 2025 and December 31, 2024, respectively, and an average rating of "AA-" at both September 30, 2025 and December 31, 2024.

Current wording

Ourfixed-maturity securities, including cash equivalents, had a weighted average duration of 4.1 years and 4.0 years at March 31, 2026 and December 31, 2025, respectively, and an average rating of "AA-" at both March 31, 2026 and December 31, 2025.

Previous wording

In order to conduct business in certain states, we are required to maintain letters of credit or assets on deposit to support state-mandated insurance regulatory requirements and to comply with certain third-party agreements. Assets held on deposit or in trust accounts are primarily in the form of high-grade securities. The fair value of our restricted assets was $3.9 million and $3.7 million at September 30, 2025 and December 31, 2024, respectively.

Current wording

In order to conduct business in certain states, we are required to maintain letters of credit or assets on deposit to support state-mandated insurance regulatory requirements and to comply with certain third-party agreements. Assets held on deposit or in trust accounts are primarily in the form of high-grade securities. The fair value of our restricted assets was $3.9 million at both March 31, 2026 and December 31, 2025.

Previous wording

Net income for the three and nine months ended September 30, 2025 and 2024, reconciles to underwriting income as follows:

Current wording

Net income for the three months ended March 31, 2026 and 2025, reconciles to underwriting income as follows:

Previous wording

Net income for the three and nine months ended September 30, 2025 and 2024, reconciles to net operating earnings as follows:

Current wording

Net income for the three months ended March 31, 2026 and 2025, reconciles to net operating earnings as follows: