Lemonade, Inc.

Previous wording

As of March 31, 2025, we had $101.9 million of outstanding borrowings under the Amended and Restated Agreement. We incurred interest expense of $3.3 million and $0.6 million for the three months ended March 31, 2025 and 2024, respectively and such interest is included in “General and administrative expense” in the condensed consolidated statements of operations and comprehensive income.

Current wording

As of June 30, 2025, we had $123.5 million of outstanding borrowings under the Amended and Restated Agreement. We incurred interest expense of $7.3 million for the six months ended June 30, 2025 and such interest is included in “General and Administrative expense” in the condensed consolidated statements of operations and comprehensive income.

Previous wording

We conduct certain of our operations in Israel and therefore our results may be adversely affected by political, economic and military instability and conflict in Israel and the surrounding region. There is still uncertainty regarding the extent to which the war and its broader macroeconomic implications will impact our operations in Israel. We will continue to evaluate the extent to which this may impact our business, financial condition, or results of operations. These and other uncertainties could result in changes to our current expectations. For additional information, see "Risk Factors — Risks Relating to our Business —We conduct certain of our operations in Israel and therefore our results may be adversely affected by political, economic and military instability in Israel and the surrounding region." in our Annual Report on Form 10-K.

Current wording

We conduct certain of our operations in Israel and therefore our operations and results may be adversely affected by political, economic and military instability and conflict in Israel and the surrounding region. There is still uncertainty regarding the extent to which the war and its broader macroeconomic implications will impact our operations in Israel. We will continue to evaluate the extent to which this may impact our business, financial condition, or results of operations. These and other uncertainties could result in changes to our current expectations. For additional information, see "Risk Factors — Risks Relating to our Business —We conduct certain of our operations in Israel and therefore our results may be adversely affected by political, economic and military instability in Israel and the surrounding region." in our Annual Report on Form 10-K.

Previous wording

We maintain proportional reinsurance contracts which cover all of the Company's products and geographies, and transferred, or “ceded,” a specified percentage of the premium to reinsurers ("Proportional Reinsurance Contracts"). We also opted to manage the remaining percentage of the business with alternative forms of reinsurance through non-proportional reinsurance contracts ("Non-Proportional Reinsurance Contracts").

Current wording

We maintain proportional reinsurance contracts which cover all of the Company's products and geographies, and transfers, or “cedes,” a specified percentage of the premium to reinsurers. We also manages the remaining percentage of the business with alternative forms of reinsurance through non-proportional reinsurance contracts.

Previous wording

We agreed to the terms of our reinsurance program effective July 1, 2023 through June 30, 2024 which included Whole Account Quota Share Reinsurance Contracts by and among the Company, Lemonade Insurance Company ("LIC"), Metromile Insurance Company ("MIC") and Lemonade Insurance N.V. ("LINV"), and each of Hannover Ruck SE, MAPFRE Re, and Swiss Reinsurance America Corporation (collectively referred to as “Reinsurers”) ("Reinsurance Program"). Under the Reinsurance Program, which covers all products and geographies, the Company transfers, or "cedes," a share of premium to the Reinsurers. In exchange, these Reinsurers pay us a ceding commission on all premiums ceded to the Reinsurers, in addition to funding the corresponding claims, subject to certain limitations, including but not limited to, the exclusion of hurricane losses, and a limit of $5,000,000 per occurrence for non-hurricane catastrophe losses. The overall share of proportional reinsurance under the Reinsurance Program is approximately 55% of premium. The Per Risk Cap across the contracts is $750,000. Additionally, these contracts are subject to loss ratio caps and variable ceding commission, which align our interests with those of our Reinsurers and is settled primarily on a funds withheld basis. We renewed the Reinsurance Program effective July 1, 2024 and will expire on June 30, 2025, with similar terms to the contracts that expired on June 30, 2024, except for the limit per occurrence for non-hurricane catastrophe losses which increased to $10,000,000.

Current wording

We agreed to the terms of our reinsurance program effective July 1, 2024 through June 30, 2025 which included Whole Account Quota Share Reinsurance Contracts by and among the Company, Lemonade Insurance Company ("LIC"), Metromile Insurance Company ("MIC") and Lemonade Insurance N.V. ("LINV"), and each of Hannover Ruck SE ("Hannover"), MAPFRE Re Compania De Reaseguros S.A. ("MAPFRE"), and Swiss Reinsurance America Corporation (collectively referred to as “Reinsurers”) ("Reinsurance Program"). Under the Reinsurance Program, which covers all products and geographies, the Company transfers, or "cedes," approximately 55% of premium to the Reinsurers. In exchange, these Reinsurers pay us a ceding commission on all premiums ceded to the Reinsurers, in addition to funding the corresponding claims, subject to certain limitations, including but not limited to, the exclusion of hurricane losses, and a limit of $10,000,000 per occurrence for non-hurricane catastrophe losses. The Per Risk Cap across the contracts is $750,000. Additionally, these contracts are subject to loss ratio caps and variable ceding commission, which align our interests with those of our Reinsurers and is settled primarily on a funds withheld basis. We renewed the Reinsurance Program with Hannover and MAPFRE effective July 1, 2025 and will expire on June 30, 2026, with a reduced effective cession rate of 20% and with similar terms to the contracts that expired on June 30, 2025.

Previous wording

LIC and LINV entered into a Property Per Risk Excess of Loss Reinsurance Contract with a panel of reinsurance companies (the "PPR Contract"), and LIC entered into an Automatic Facultative Property Per Risk Excess of Loss Reinsurance Contract with Arch Re (the "Automatic Facultative PPR Contract"), each effective from July 1, 2023 until June 30, 2024. Under the PPR Contract, claims in excess of $750,000 are 100% ceded up to a maximum recovery of $2,250,000, subject to certain limitations. The PPR Contract was renewed at similar terms effective July 1, 2024 through June 30, 2025. The Automatic Facultative PPR Contract, in which claims in excess of $3,000,000 are 100% ceded with a potential recovery of at least $10,000,000, subject to certain limitations, expired on June 30, 2024, and was not renewed.

Current wording

LIC and MIC entered into a Property Per Risk Excess of Loss Reinsurance Contract with a panel of reinsurance companies (the "PPR Contract") effective July 1, 2024 and expired on June 30, 2025. Under the PPR Contract, claims in excess of $750,000 were 100% ceded up to a maximum recovery of $2,250,000, subject to certain limitations. The PPR Contract was renewed at similar terms effective July 1, 2025 and will expire on June 30, 2026.

Previous wording

We also entered into an Excess of Loss Reinsurance Contract (the "XOL reinsurance contract") through a captive in Bermuda in which we have a variable interest, primarily to cover catastrophe risk over the initial $50,000,000 limit for each loss occurrence, and further subject to a limit of $80,000,000 for each loss occurrence and in aggregate, primarily on property and car business underwritten by LIC. This XOL reinsurance contract became effective July 1, 2023 and expired on June 30, 2024. We have renewed the XOL reinsurance contract effective July 1, 2024 and will expire on June 30, 2025, at similar terms and is expanded to include risks written by MIC.

Current wording

We also entered into an Excess of Loss Reinsurance Contract (the "XOL reinsurance contract") through a captive in Bermuda in which we have a variable interest. This XOL reinsurance contract primarily covers catastrophe risk on property and car business underwritten by LIC and MIC over the initial $50,000,000 limit for each loss occurrence, and further subject to a limit of $80,000,000 for each loss occurrence and in aggregate. This XOL reinsurance contract effective July 1, 2024 expired on June 30, 2025, and was renewed at similar terms effective July 1, 2025 and expiring on June 30, 2026.

Previous wording

We are also exposed to some risks from MIC ceded through the Quota Share Reinsurance Contract (the "QS reinsurance contract") which is retained in a captive subsidiary, Lemonade Re SPC in the Cayman Islands. This QS reinsurance contract became effective July 1, 2023, and shall remain in force for an indefinite period until terminated by either party.

Current wording

We are also exposed to some risks on property, auto and pet insurance underwritten by LIC and MIC ceded through Quota Share Reinsurance Contracts (the "QS reinsurance contracts") which is retained in an offshore captive subsidiary, Lemonade Re SPC in the Cayman Islands. The MIC QS reinsurance contract which became effective July 1, 2023 was amended to increase the cession rate to 35% and ceding commission rate effective July 1, 2025, and shall remain effective for an indefinite period until terminated by either party. The LIC QS reinsurance contract became effective on July 1, 2025 and will expire on June 30, 2026.

Previous wording

Net earned premium increased $19.9 million, or 24%, to $104.3 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to the earning of increased gross written premium.

Current wording

Net earned premium increased $23.2 million, or 26%, to $112.5 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to the earning of increased gross written premium.

Previous wording

Gross written premium increased $48.6 million, or 24%, to $254.2 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was primarily due to a 21% increase in net added customers year over year driven by the success of our digital advertising campaigns and partnerships. We also continued to expand our geographic footprint and product offerings. In addition, we also saw a 4% increase in premium per customer year over year due to an increasing prevalence of multiple policies per customer, growth in the overall average policy value, and continued shift in the mix of underlying products toward higher value policies. Assumed premium related to car insurance policies written in Texas through our fronting arrangement with a third party carrier in Texas also contributed to the increase in gross written premium during the period.

Current wording

Gross written premium increased $58.3 million, or 26%, to $284.5 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was primarily due to a 24% increase in net added customers year over year driven by the success of our digital advertising campaigns and partnerships. We also continued to expand our geographic footprint and product offerings. In addition, we also saw a 4% increase in premium per customer year over year due to an increasing prevalence of multiple policies per customer, growth in the overall average policy value, and continued shift in the mix of underlying products toward higher value policies. Assumed premium related to car insurance policies written in Texas through our fronting arrangement with a third party carrier in Texas also contributed to the increase in gross written premium during the period.

Previous wording

The table below shows the amount of premium we earned on a gross and net basis. Ceded earned premium as a percentage of gross earned premium is at 55% for the three months ended March 31, 2025 and 2024 consistent with our participation rate in our reinsurance contracts as discussed above.

Current wording

The table below shows the amount of premium we earned on a gross and net basis. Ceded earned premium as a percentage of gross earned premium is at 55% for the three months ended June 30, 2025 and 2024 consistent with our participation rate in our reinsurance contracts as discussed in more detail in the "Reinsurance" section above.

Previous wording

Ceding commission income increased $5.9 million, or 28%, to $26.9 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, consistent with the increase in ceded earned premium during the period.

Current wording

Ceding commission income increased $13.9 million, or 84%, to $30.4 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, consistent with the increase in ceded earned premium during the period and the impact of our variable ceding commission arrangement with reinsurers driven by favorable loss ratio development in comparison to prior period.

Previous wording

Net investment income increased $1.9 million, or 25% to $9.5 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was primarily driven by the diversification of the Company's investment portfolio with higher returns, offset by investment expenses. We mainly invest in cash, money market funds, U.S. Treasury bills, corporate debt securities, asset-backed securities, notes and other obligations issued or guaranteed by the U.S. Government and Non-US Government.

Current wording

Net investment income increased $1.3 million, or 16% to $9.4 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was primarily driven by the diversification of the Company's investment portfolio with higher returns, offset by investment expenses. We mainly invest in cash, money market funds, U.S. Treasury bills, corporate debt securities, asset-backed securities, notes and other obligations issued or guaranteed by the U.S. Government and Non-US Government.

Previous wording

Commission and other income increased $4.4 million, or 72%, to $10.5 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to growth in premiums placed with third-party insurance companies during the period, installment fees and sublease income from our New York and San Francisco office space.

Current wording

Commission and other income increased $3.7 million, or 46%, to $11.8 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to growth in premiums placed with third-party insurance companies during the period, installment fees and sublease income from our New York and San Francisco office space.

Previous wording

Other insurance expense increased $8.8 million, or 51%, to $26.1 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 consistent with growth in earned premium and the California FAIR Plan assessment charge of $6.9 million related to the January 2025 California Wildfires. Credit card processing fees increased $1.3 million, or 34%, as compared to the three months ended March 31, 2024 as a result of the increase in customers and associated premium. Data costs increased $1.0 million, or 38%, as compared to three months ended March 31, 2024.

Current wording

Other insurance expense increased $2.6 million, or 14%, to $21.4 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 consistent with growth in earned premium. Credit card processing fees increased $1.3 million, or 30%, as compared to the three months ended June 30, 2024 as a result of the increase in customers and associated premium. Employee-related expense, including stock-based compensation increased $1.0 million, or 20% as compared to three months ended June 30, 2024.

Previous wording

Sales and marketing expense increased $12.8 million, or 42%, to $43.2 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to brand and performance advertising, which is the largest component of our sales and marketing expenses. Expense related to advertising, other customer acquisition channels and partner payments increased $18.3 million, or 92%, as compared to the three months ended March 31, 2024. Compensation expense related to the warrant shares decreased $6.1 million, or 678%, as compared to the three months ended March 31, 2024 due to the $5.2 million impact of the canceled unvested warrant shares for contract year 2 as a result of the termination of the Warrant Agreement with Chewy.

Current wording

Sales and marketing expense increased $22.8 million, or 62%, to $59.6 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to brand and performance advertising, which is the largest component of our sales and marketing expenses. Expense related to advertising, other customer acquisition channels and partner payments increased $23.9 million, or 93%, as compared to the three months ended June 30, 2024 consistent with growth in our business. Compensation expense related to the warrant shares decreased $1.6 million, or 100%, as compared to the three months ended June 30, 2024 due to the termination of the Warrant Agreement with Chewy.

Previous wording

Technology development expense increased $1.1 million, or 5%, to $22.0 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Employee-related expense, including stock-based compensation, and net of capitalized costs for the development of internal-use software, increased $1.6 million, or 10%, as compared to the three months ended March 31, 2024. Hosting and development costs decreased $0.5 million or 23%, as compared to the three months ended March 31, 2024.

Current wording

Technology development expense increased $1.2 million, or 6%, to $22.4 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Employee-related expense, including stock-based compensation, and net of capitalized costs for the development of internal-use software, increased $1.8 million, or 11%, as compared to the three months ended June 30, 2024. Hosting and development costs decreased $0.4 million or 20%, as compared to the three months ended June 30, 2024.

Previous wording

General and administrative expense increased $6.1 million, or 20%, to $35.9 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Interest expense related to borrowings from financing agreement with GC increased $2.7 million, or 450%, to $3.3 million for the three months ended March 31, 2025 as compared to three months ended March 31, 2024. Employee-related expense, including stock-based compensation, increased $2.0 million, or 15%, as compared to three months ended March 31, 2024. Bad debt expense increased by $1.3 million or 41%, as compared to three months ended March 31, 2024.

Current wording

General and administrative expense decreased $4.0 million, or 13%, to $25.8 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Interest expense related to borrowings from financing agreement with GC increased $2.9 million, or 264%, as compared to three months ended June 30, 2024 due to increased borrowings during the period. Employee-related expense, including stock-based compensation, increased $2.5 million, or 19%, as compared to three months ended June 30, 2024. Bad debt expense increased by $2.3 million or 110%, as compared to three months ended June 30, 2024. During the period, we recorded $11.7 million of tax refund received under the ERC program.

Previous wording

Income tax expense decreased $1.1 million, 52%, to $1.0 million for the three months ended March 31, 2025 and three months ended March 31, 2024 due to the decrease in the liability for uncertain tax positions due to updated benchmarking analyses.

Current wording

Income tax expense decreased $0.8 million, 38%, to $1.3 million for the three months ended June 30, 2025 and three months ended June 30, 2024 due to the decrease in the liability for uncertain tax positions due to updated benchmarking analyses.

Previous wording

Net loss increased $15.1 million, or 32%, to $62.4 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 due to the factors described above.

Current wording

Net loss decreased $13.3 million, or 23%, to $43.9 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 due to the factors described above.

Previous wording

Loss and LAE, net increased $19.5 million, or 30%, to $85.4 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was in line with growth in premium and increased claim costs offset by reserve releases due to better than expected loss reserve emergence on homeowners multi-peril line of business. Net incurred losses during the first quarter of 2025 included the impact of the California Wildfires in January 2025 in the amount of $16.8 million.

Current wording

Loss and LAE, net increased $26.5 million, or 19%, to $162.9 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was in line with growth in premium and increased claim costs offset by reserve releases due to better than expected loss reserve emergence on homeowners multi-peril line of business. Net incurred losses included the impact of the California Wildfires in January 2025 in the amount of $16.9 million.

Previous wording

(1) Includes the impact of canceled unvested warrant shares for contract year 2 related to the termination of the Warrant Agreement with Chewy of $5.2 million for the three months ended March 31, 2025 and compensation expense related to the warrant shares $0.9 million for the three months ended March 31, 2024 (Note 11).

Current wording

(1) Includes the impact of canceled unvested warrant shares for contract year 2 related to the termination of the Warrant Agreement with Chewy of $5.2 million for the six months ended June 30, 2025 and compensation expense related to the warrant shares $1.6 million and $2.5 million for the three and six months ended June 30, 2024, respectively (See Note 11 of the unaudited condensed consolidated financial statements).

Previous wording

(2) California FAIR Plan assessment related to the January 2025 California Wildfires (Note 15).

Current wording

(2) Includes the California FAIR Plan assessment related to the January 2025 California Wildfires for the six months ended June 30, 2025 (See Note 15 of the unaudited condensed consolidated financial statements).

Previous wording

As of March 31, 2025, we had $309.2 million in cash and cash equivalents, and $676.1 million in investments. From the date we commenced operations, we have generated negative cash flows from operations, and we have financed our operations primarily through private and public sales of equity securities and third party financing. Our principal sources of funds are insurance premiums, investment income, reinsurance recoveries and proceeds from maturity and sale of invested assets. These funds are primarily used to pay claims, operating expenses and taxes. In June 2023, we entered into an Agreement with GC, where up to $150 million of financing was provided for our sales and marketing growth efforts through December 31, 2024. The Agreement was amended and restated in January 2024, pursuant to which an additional financing of $140 million will be provided for our sales and marketing growth efforts through December 31, 2025, and was further amended and restated in April 2024 and June 2024 to clarify certain provisions and all material terms and conditions remain unchanged. On February 3, 2025, the Agreement was further amended in which GC will provide up to an additional $200 million of financing for our sales and marketing growth efforts from January 1, 2026 to December 31, 2026. As of March 31, 2025, we had $101.9 million of outstanding borrowings under the Amended and Restated Agreement with GC. We believe our existing cash and cash equivalents as of March 31, 2025 will be sufficient to meet our working capital, liquidity and capital expenditure needs over at least the next 12 months. This belief is subject, to a certain extent, on general economic, financial, competitive, regulatory and other factors that are beyond our control.

Current wording

As of June 30, 2025, we had $377.5 million in cash and cash equivalents, and $645.8 million in investments. From the date we commenced operations, we have generated negative cash flows from operations, and we have financed our operations primarily through private and public sales of equity securities and third party financing. Our principal sources of funds are insurance premiums, investment income, reinsurance recoveries and proceeds from maturity and sale of invested assets. These funds are primarily used to pay claims, operating expenses and taxes. In June 2023, we entered into an Agreement with GC, where up to $150 million of financing was provided for our sales and marketing growth efforts through December 31, 2024. The Agreement was amended and restated in January 2024, pursuant to which an additional financing of $140 million will be provided for our sales and marketing growth efforts through December 31, 2025, and was further amended and restated in April 2024 and June 2024 to clarify certain provisions and all material terms and conditions remain unchanged. On February 3, 2025, the Agreement was further amended in which GC will provide up to an additional $200 million of financing for our sales and marketing growth efforts from January 1, 2026 to December 31, 2026. As of June 30, 2025, we had $123.5 million of outstanding borrowings under the Amended and Restated Agreement with GC. We believe our existing cash and cash equivalents as of June 30, 2025 will be sufficient to meet our working capital, liquidity and capital expenditure needs over at least the next 12 months. This belief is subject, to a certain extent, on general economic, financial, competitive, regulatory and other factors that are beyond our control.

Previous wording

Our U.S. and Dutch insurance company subsidiaries, and our Dutch insurance holding company, are restricted by statute as to the amount of dividends that they may pay without the prior approval of their respective competent regulatory authorities. As of March 31, 2025, cash and investments held by these companies was $604.4 million of which $259.0 million is held as regulatory surplus.

Current wording

Our U.S. and Dutch insurance company subsidiaries, and our Dutch insurance holding company, are restricted by statute as to the amount of dividends that they may pay without the prior approval of their respective competent regulatory authorities. As of June 30, 2025, cash and investments held by these companies was $664.0 million of which $276.5 million is held as regulatory surplus.

Previous wording

Cash used in operating activities was $47.2 million for the three months ended March 31, 2025, an increase of $17.4 million from $29.8 million for the three months ended March 31, 2024. This reflected the $15.1 million decrease in our net loss, primarily offset by changes in our operating assets and liabilities. The increase in cash used in operating activities from the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to claim payments, settlements with our reinsurance partners, and growth and expansion spend of the Company, offset by collection of premiums and recoveries from reinsurance partners.

Current wording

Cash used in operating activities was $41.7 million for the six months ended June 30, 2025, an increase of $0.2 million from $41.5 million for the six months ended June 30, 2024. This reflected the $1.8 million increase in our net loss, primarily offset by changes in our operating assets and liabilities. The increase in cash used in operating activities from the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily due to claim payments, settlements with our reinsurance partners, and growth and expansion spend of the Company, offset by collection of premiums and recoveries from reinsurance partners.

Previous wording

Cash used in investing activities was $40.3 million for the three months ended March 31, 2025, primarily due to purchases of U.S. government obligations, corporate debt securities, asset-backed securities, offset by proceeds from sales and maturities of U.S. government obligations, corporate debt securities, asset-backed securities, short term investments. We also purchased property and equipment during the period.

Current wording

Cash used in investing activities was $10.8 million for the six months ended June 30, 2025, primarily due to purchases of U.S. government obligations, corporate debt securities, asset-backed securities, offset by proceeds from sales and maturities of U.S. government obligations, corporate debt securities, asset-backed securities, short term investments. We also purchased property and equipment during the period.

Previous wording

Cash provided by investing activities was $30.9 million for the three months ended March 31, 2024, primarily due to proceeds from sales and maturities of U.S. government obligations, corporate debt securities, asset-backed securities, short term investments offset by purchases of U.S. government obligations, corporate debt securities, asset-backed securities, short term investments. We also purchased property and equipment during the period.

Current wording

Cash provided by investing activities was $92.2 million for the six months ended June 30, 2024, primarily due to proceeds from sales and maturities of U.S. government obligations, corporate debt securities, asset-backed securities, short term investments offset by purchases of U.S. government obligations, corporate debt securities, asset-backed securities, short term investments. We also purchased property and equipment during the period.

Previous wording

Cash provided by financing activities was $20.0 million for the three months ended March 31, 2025, primarily due to borrowings under the financing agreement offset by principal payments. We also had proceeds from stock option exercises during the period.

Current wording

Cash provided by financing activities was $44.1 million for the six months ended June 30, 2025, primarily due to borrowings under the financing agreement offset by principal payments. We also had proceeds from stock option exercises during the period.

Previous wording

Cash provided by financing activities was $13.5 million for the three months ended March 31, 2024, primarily due to borrowings under the financing agreement offset by principal payments. We also had proceeds from stock option exercises during the period.

Current wording

Cash provided by financing activities was $29.1 million for the six months ended June 30, 2024, primarily due to borrowings under the financing agreement offset by principal payments. We also had proceeds from stock option exercises during the period.

Previous wording

We do not have any current plans for material capital expenditures other than current operating requirements. There have been no material changes as of March 31, 2025 to our contractual obligations from those described in our Annual Report on Form 10-K. To the extent our future operating cash flows are insufficient to cover our net losses from catastrophic events, we had $985.3 million in cash, cash equivalents and investments available at March 31, 2025. We may also seek to raise additional capital through third-party borrowings, sales of our equity, issuance of debt securities or entrance into new reinsurance arrangements. There can be no assurance that we will be able to raise additional capital on favorable terms or at all.

Current wording

We do not have any current plans for material capital expenditures other than current operating requirements. There have been no material changes as of June 30, 2025 to our contractual obligations from those described in our Annual Report on Form 10-K. To the extent our future operating cash flows are insufficient to cover our net losses from catastrophic events, we had $1,023.3 million in cash, cash equivalents and investments available at June 30, 2025. We may also seek to raise additional capital through third-party borrowings, sales of our equity, issuance of debt securities or entrance into new reinsurance arrangements. There can be no assurance that we will be able to raise additional capital on favorable terms or at all.

Previous wording

Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K and the notes to the unaudited condensed consolidated financial statements appearing elsewhere in this Quarterly Report. During the three months ended March 31, 2025, there were no material changes to our critical accounting policies from those discussed in our Annual Report on Form 10-K.

Current wording

Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K and the notes to the unaudited condensed consolidated financial statements appearing elsewhere in this Quarterly Report. During the six months ended June 30, 2025, there were no material changes to our critical accounting policies from those discussed in our Annual Report on Form 10-K.

Previous wording

See “Note 4 — Summary of Significant Accounting Policies” in the notes to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report for a discussion of new accounting pronouncements.

Current wording

See “Note 4 — Summary of Significant Accounting Policies” in the notes to the condensed consolidated financial statements included elsewhere in this Quarterly Report for a discussion of new accounting pronouncements.