Hippo Holdings Inc.

Previous wording

The following discussion and analysis of our financial condition and results of our operations addresses the consolidated financial condition as of March 31, 2026, compared with December 31, 2025, and consolidated results of operations for the three months ended March 31, 2026 and 2025. This should be read in conjunction with our unaudited interim condensed consolidated financial statements and notes thereto included in Item 1 of this report and also our Management’s Discussion and Analysis of Financial Condition and Results of Operations, the “Risk Factors” section, and the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the section titled “Risk Factors” in our Annual Report and may be updated from time to time in our other filings with the SEC.

Current wording

The following discussion and analysis of our financial condition and results of our operations addresses the consolidated financial condition as of June 30, 2026, compared with December 31, 2025, and consolidated results of operations for the three months and six months ended June 30, 2026 and 2025. This should be read in conjunction with our unaudited interim condensed consolidated financial statements and notes thereto included in Item 1 of this report and also our Management’s Discussion and Analysis of Financial Condition and Results of Operations, the “Risk Factors” section, and the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the section titled “Risk Factors” in our Annual Report and may be updated from time to time in our other filings with the SEC. Certain percentages herein may not sum or recalculate due to rounding.

Previous wording

Hippo is an insurance holding company with subsidiaries that provide property and casualty insurance products to both individuals and business customers primarily in the United States. We conduct insurance underwriting through our regulated carrier subsidiaries and generate revenue from a combination of insurance underwriting activities and fee- and commission-based services. Our operations include providing insurance capacity and related services for our owned MGA and in partnership with third-party MGAs and fee-based and commission-based services that support the placement and servicing of insurance policies.

Current wording

Hippo is an insurance holding company with subsidiaries that provide property and casualty insurance products to both individuals and business customers primarily in the United States. We conduct insurance underwriting through our regulated carrier subsidiaries and generate revenue from a combination of insurance underwriting activities and fee- and commission-based services. Our operations include providing insurance capacity and related services for our owned managing general agent (“MGA”) and in partnership with third-party MGAs and fee-based and commission-based services that support the placement and servicing of insurance policies.

Previous wording

Our catastrophe reinsurance program supports property risks underwritten by us on behalf of our MGA and third-party MGAs. These risks are protected by program-specific XOL treaties, and in some cases, quota share reinsurance. In addition to the program-specific covers, we are also protected by a corporate catastrophe cover, and participation in the Florida Hurricane Catastrophe Fund (FHCF). This structure is designed to provide protection against severe loss events across the portfolio, covering up to at least a 1-in-250-year return period threshold.

Current wording

Our catastrophe reinsurance program supports property risks underwritten by us on behalf of our MGA and third-party MGAs. These risks are protected mainly by a corporate level group catastrophe XOL (the “Group Cat”) and in some cases by program-specific XOL treaties, catastrophe bonds, and quota share reinsurance. We are also protected by participation in the Florida Hurricane Catastrophe Fund (“FHCF”). Our catastrophe reinsurance structure is designed to provide protection against severe loss events across the portfolio. Effective June 1, 2026, the catastrophe reinsurance program has an occurrence limit of $512.9 million and an aggregate limit of $776.9 million.

Previous wording

For business written by our MGA, we have strategically retained more risk in recent periods by scaling back proportional reinsurance, reflecting our confidence in the portfolio’s underwriting performance. Our MGA is primarily covered by standalone catastrophe XOL protection.

Current wording

For business written by our MGA, we strategically retain a significant level of risk, reflecting our confidence in the portfolio’s underwriting performance. The business written by our MGA is primarily covered by catastrophe XOL protection.

Previous wording

Additionally, we utilize collateralized reinsurance through Mountain Re Ltd., a Bermuda-based special purpose insurer. The catastrophe bonds issued through Mountain Re Ltd. provide multi-year per occurrence coverage for a range of perils for business written through our MGA.

Current wording

We also utilize collateralized reinsurance through Mountain Re Ltd., a Bermuda-based special purpose insurer. The catastrophe bonds issued through Mountain Re Ltd. provide multi-year per occurrence coverage for a range of perils, including hurricane and wildfire, for business written through our MGA.

Previous wording

For the three months ended March 31, 2026, net earned premium was $98.9 million, an increase of $11.6 million, or 13% compared to $87.3 million for the three months ended March 31, 2025. The increase was due primarily to the earnings of increased gross written premiums volume across our Commercial Multi-Peril and Casualty lines.

Current wording

For the three months ended June 30, 2026, net earned premium was $118.7 million, an increase of $24.7 million, or 26% compared to $94.0 million for the three months ended June 30, 2025. The increase was due primarily to the earnings of increased gross written premiums volume and increase in retention across our Commercial Multi-Peril and Casualty lines.

Previous wording

For the three months ended March 31, 2026, service and fee income was $3.2 million, an increase of $0.4 million, or 14%, compared to $2.8 million for the three months ended March 31, 2025.

Current wording

For the three months ended June 30, 2026, service and fee income was $3.7 million, an increase of $0.8 million, or 28%, compared to $2.9 million for the three months ended June 30, 2025. The increase was due primarily to an increase in service fees of $0.5 million.

Previous wording

For the three months ended March 31, 2026, net investment income was $6.7 million, an increase of $0.9 million, or 16%, compared to $5.8 million for the three months ended March 31, 2025. The increase was due primarily to higher average balance in cash and investments during the period. The Company’s investment portfolio is primarily comprised of securities issued by the U.S. government and agencies, money market accounts, high-grade corporate securities, residential and commercial mortgage-backed securities, and other governmental related securities.

Current wording

For the three months ended June 30, 2026, net investment income was $6.6 million, an increase of $0.9 million, or 16%, compared to $5.7 million for the three months ended June 30, 2025. The increase was due primarily to higher average balance in cash and investments during the period. The Company’s investment portfolio is primarily comprised of securities issued by the U.S. government and agencies, money market accounts, high-grade corporate securities, asset backed securities, and residential and commercial mortgage-backed securities.

Previous wording

Included in our non-catastrophe loss ratio for the three months ended March 31, 2026, is a benefit of 2 percentage points related to prior year developments, whereas for the three months ended March 31, 2025, there was a benefit of 4 percentage points related to prior year favorable developments.

Current wording

Included in our non-catastrophe loss ratio for the three months ended June 30, 2026, is a net benefit of 2 percentage points related to a gain from a reinsurance commutation, partially offset by a net adverse impact of 1 percentage point related to prior year developments, whereas for the three months ended June 30, 2025, there was a benefit of 5 percentage points related to prior year developments.

Previous wording

For the three months ended March 31, 2026, insurance related expenses were $34.9 million, an increase of $4.7 million, or 16%, compared to $30.2 million for the three months ended March 31, 2025. The increase was due primarily to an increase in net acquisition expenses of $4.8 million due to increased premium.

Current wording

For the three months ended June 30, 2026, insurance related expenses were $38.7 million, an increase of $5.9 million, or 18%, compared to $32.8 million for the three months ended June 30, 2025. The increase was due primarily to an increase in net acquisition expenses of $3.8 million due to increased premium.

Previous wording

For the three months ended March 31, 2026, technology and development expenses were $9.4 million, an increase of $1.3 million, or 16%, compared to $8.1 million for the three months ended March 31, 2025. The increase was due primarily to higher employee-related costs of $1.2 million due to increase in headcount.

Current wording

For the three months ended June 30, 2026, technology and development expenses were $10.1 million, an increase of $2.0 million, or 25%, compared to $8.1 million for the three months ended June 30, 2025. The increase was due primarily to the transfer of headcount into technology and development related to an internal reorganization as well as an increase in headcount to support a transition services agreement with associated service fee income.

Previous wording

For the three months ended March 31, 2026, general and administrative expenses were $16.2 million, a decrease of $0.3 million, or 2%, compared to $16.5 million for the three months ended March 31, 2025. The decrease was due primarily to a decrease in employee-related expenses of $0.3 million.

Current wording

For the three months ended June 30, 2026, general and administrative expenses were $18.2 million, an increase of $0.8 million, or 5%, compared to $17.4 million for the three months ended June 30, 2025. The increase was due primarily to an increase in employee-related expenses of $0.7 million due to an increase in headcount.

Previous wording

For the three months ended March 31, 2026, there is no net income attributable to noncontrolling interest, compared to $2.3 million for the three months ended March 31, 2025. The decrease was due primarily to the elimination of the remaining noncontrolling interests related to the sale of our homebuilder distribution network.

Current wording

For the three months ended June 30, 2026, there is no net income attributable to noncontrolling interest, compared to $2.6 million for the three months ended June 30, 2025. The decrease was due to the elimination of the remaining noncontrolling interests related to the sale of our homebuilder distribution network.

Previous wording

For the three months ended March 31, 2026, net income attributable to Hippo was $7.1 million, a change of $54.8 million compared to a net loss attributable to Hippo of $47.7 million for the three months ended March 31, 2025 due to the factors described above.

Current wording

For the three months ended June 30, 2026, net income attributable to Hippo was $10.1 million, a change of $8.8 million compared to a net income attributable to Hippo of $1.3 million for the three months ended June 30, 2025 due to the factors described above.

Previous wording

For the three months ended March 31, 2026, commission income was $12.7 million, a decrease of $1.7 million, or 12%, compared to $14.4 million for the three months ended March 31, 2025. The decrease was due primarily to a decrease in agency commissions of $5.4 million due to the sale of our homebuilder distribution network in the third quarter of 2025, partially offset by an increase in fronting fee revenue of $4.2 million earned from third-party MGA program partners, driven by growth across our Commercial Multi-Peril and Casualty lines.

Current wording

For the six months ended June 30, 2026, commission income was $28.4 million, a decrease of $0.7 million, or 2%, compared to $29.1 million for the six months ended June 30, 2025. The decrease was due primarily to a decrease in agency commissions of $10.3 million due to the sale of our homebuilder distribution network in the third quarter of 2025, partially offset by an increase in fronting fee revenue of $9.8 million earned from third-party MGA program partners driven by growth across our Commercial Multi-Peril and Casualty lines.

Previous wording

For the three months ended March 31, 2026, losses and loss adjustment expenses were $47.5 million, a decrease of $44.9 million, or 49%, compared to $92.4 million for the three months ended March 31, 2025 due primarily to losses from a series of destructive wildfires affecting Los Angeles, California (the “LA Wildfires”) in the first quarter of 2025. Losses and loss adjustment expenses consisted of the following elements during the respective periods:

Current wording

For the six months ended June 30, 2026, losses and loss adjustment expenses were $107.3 million, a decrease of $29.6 million, or 22%, compared to $136.9 million for the six months ended June 30, 2025. The decrease was due primarily to losses from a series of destructive wildfires affecting Los Angeles, California (the “LA Wildfires”) in January 2025. These were partially offset by an increase in non-catastrophe losses due primarily to premium growth on Commercial Multi-Peril and Casualty lines. Losses and loss adjustment expenses consisted of the following elements during the respective periods:

Previous wording

Included in our catastrophe loss ratio for the three months ended March 31, 2026 is a benefit of 1 percentage point related to prior year favorable developments, whereas for the three months ended March 31, 2025, there was no benefit related to prior year developments.

Current wording

Included in our non-catastrophe loss ratio for the six months ended June 30, 2026, is an immaterial impact related to prior year developments and a net benefit of 1 percentage point related to a gain from a reinsurance commutation, whereas for the six months ended June 30, 2025, there was a benefit of 4 percentage points related to prior year developments.

Previous wording

For the three months ended March 31, 2026, sales and marketing expenses were $6.3 million, a decrease of $2.6 million, or 29%, compared to $8.9 million for the three months ended March 31, 2025. The decrease was due primarily to a decrease in employee-related costs of $2.0 million, including a decrease in stock-based compensation of $0.3 million, due to a decrease in headcount due to the sale of our homebuilder distribution network. The decrease was also due to the elimination of $0.6 million in amortization of intangible assets acquired in connection with our homebuilder distribution network, which was sold in the third quarter of 2025.

Current wording

For the six months ended June 30, 2026, sales and marketing expenses were $12.6 million, a decrease of $5.5 million, or 30%, compared to $18.1 million for the six months ended June 30, 2025. The decrease was due primarily to a $3.8 million reduction in employee-related costs resulting from lower headcount due to the sale of our homebuilder distribution network in the third quarter of 2025. The decrease also reflects the elimination of $0.8 million in amortization of intangible assets acquired in connection with our homebuilder distribution network, which was sold in the third quarter of 2025.

Previous wording

For the three months ended March 31, 2026, there was no interest and other expense, net compared to interest and other income, net of $0.2 million for the three months ended March 31, 2025. The current period reflects $1.1 million of earnout consideration received in connection with a prior divestiture of First Connect Insurance Services (“First Connect”) in the fourth quarter of 2024, offset by $1.1 million of interest expense on our surplus note issued in June 2025.

Current wording

For the six months ended June 30, 2026, interest and other expense, net were $0.6 million, an increase of $0.7 million, compared to interest and other income, net of $0.1 million for the six months ended June 30, 2025. The increase was due primarily to an increase in interest expense of $2.0 million on our surplus note issued in June 2025, partially offset by $1.1 million of earnout consideration received in connection with a prior divestiture and a $0.6 million gain from litigation settlement.

Previous wording

For the three months ended March 31, 2026 and 2025, income tax expense was $0.1 million and benefit of $0.2 million, respectively.

Current wording

For the six months ended June 30, 2026 and 2025, income tax expense was $1.0 million and benefit of $0.1 million, respectively. The increase was due primarily to an increase in current expense for state income taxes.

Previous wording

We regularly review the following operating and financial metrics to evaluate our business, measure our performance, identify trends in our business, prepare forecasts, and make capital allocation and strategic decisions. Certain metrics discussed below are non-GAAP financial measures. Management uses non-GAAP measures to evaluate operating performance and trends that may not be apparent from GAAP results alone. Non-GAAP measures should be considered supplemental to, and not a substitute for, the most directly comparable GAAP measures, and may not be comparable to similarly titled measures used by other companies. Reconciliations of the non-GAAP measures to the most directly comparable GAAP measures are provided below. For certain non-GAAP financial measures that are expressed as ratios or per-share amounts, the reconciliation to the most directly comparable GAAP financial measure is provided through the calculation of the measure using GAAP components, as presented below.

Current wording

Certain metrics discussed below are non-GAAP financial measures. Management uses non-GAAP measures to evaluate operating performance and trends that may not be apparent from GAAP results alone. Non-GAAP measures should be considered supplemental to, and not a substitute for, the most directly comparable GAAP measures, and may not be comparable to similarly titled measures used by other companies. Reconciliations of the non-GAAP measures to the most directly comparable GAAP measures are provided below. For certain non-GAAP financial measures that are expressed as ratios or per-share amounts, the reconciliation to the most directly comparable GAAP financial measure is provided through the calculation of the measure using GAAP components, as presented below.

Previous wording

(1)Indicates a non-GAAP financial measure.

Current wording

(1) Indicates a non-GAAP financial measure.

Previous wording

Ceded written premium (“CWP”) is the amount of gross written premium written or assumed by us and our affiliates as a carrier that we cede to reinsurers. We enter into reinsurance contracts to limit our exposure to losses, to provide additional capacity for growth, and to support our fronting business. Ceded written premium is treated as a reduction from gross written premium. The volume of our ceded written premium is impacted by the level of our gross written premium and decisions we make to increase or decrease retention levels, as well as the volume of our fronting business.

Current wording

Ceded written premium (“CWP”) is the amount of gross written premium written or assumed by us and our affiliates as a carrier that we cede to reinsurers. We enter into reinsurance contracts to limit our exposure to losses, to provide additional capacity for growth, and to support our underwriting business. Ceded written premium is treated as a reduction from gross written premium. The volume of our ceded written premium is impacted by the level of our gross written premium and decisions we make to increase or decrease retention levels, as well as the volume of our underwriting business.

Previous wording

For the three months ended March 31, 2026, gross written premium was $332.4 million, an increase of$121.5 million, or 58%, compared to $210.9 million for the three months ended March 31, 2025. The increase was primarily driven by growth in our Casualty and Commercial Multi-Peril lines of business. This growth was supported by increased volumes from existing programs and expansion into new program relationships.

Current wording

For the three months ended June 30, 2026, gross written premium was $482.2 million, an increase of $183.6 million, or 61%, compared to $298.6 million for the three months ended June 30, 2025. The increase was primarily driven by growth in our Casualty and Commercial Multi-Peril lines of business. This growth was supported by growth of our business and expansion into new program relationships.

Previous wording

(1)Q1 2025 Renters net written premium exceeded gross written premium due to a one-time reduction in ceded unearned premium resulting from the restructuring of the Renters reinsurance program effective January 1, 2025.

Current wording

(1) In the first quarter of 2025, Renters net written premium exceeded gross written premium due to a one-time reduction in ceded unearned premium resulting from the restructuring of the Renters reinsurance program effective January 1, 2025.

Previous wording

For the three months ended March 31, 2026, net written premium was$101.4 million, an increase of $1.1 million, or 1%, compared to$100.3 million for the three months ended March 31, 2025. Theincrease was primarily driven byhigher gross written premiums in our Casualty and Commercial Multi-Peril lines and higher retention levels in our Homeowners and Casualty lines. These were partially offset by a decrease in retention in our Renters line, where changes in net written premium relative to gross written premium were influenced by changes in retention levels.

Current wording

For the six months ended June 30, 2026, net written premium was $284.6 million, an increase of $77.4 million, or 37%, compared to $207.2 million for the six months ended June 30, 2025. The increase was primarily driven by higher gross written premiums in our Casualty and Commercial Multi-Peril lines and higher retention levels in our Homeowners and Casualty lines. These were partially offset by a decrease in retention in our Renters line, where changes in net written premium relative to gross written premium were influenced by changes in retention levels effective January 1, 2025.

Previous wording

Net retention, calculated as net written premium divided by gross written premium, was 31% and 48%, for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Net retention, calculated as net written premium divided by gross written premium, was 38% and 36%, for the three months ended June 30, 2026 and 2025, respectively, and 35% and 41%, for the six months ended June 30, 2026 and 2025.

Previous wording

We define Adjusted Net Income (Loss) as net income (loss) adjusted for, as applicable, (i) depreciation and amortization, (ii) stock-based compensation expense, (iii) the impact of other non-cash fair market value adjustments, (iv) impairment and restructuring related expenses, (v) gain or loss on the sale of a business, and (vi) other one-off transactions, which primarily include the receipt of earnout consideration and certain legal fees and settlement costs that we consider to be unique in nature, net of tax impact. We calculate the tax impact only on adjustments which would be included in calculating our income tax expense using the estimated tax rate at which the company received a deduction for these adjustments. We exclude the impact of depreciation and amortization, stock-based compensation expense, and non-cash fair market value adjustments, because these are non-cash expenses or non-cash fair value adjustments and we believe that excluding these items provides meaningful information regarding performance and ongoing cash-generation potential. We exclude impairment and restructuring related expenses, gain or loss on sale of business, and other one-off transactions because such expenses are periodic in nature and have no direct correlation to the cost of operating our business on an ongoing basis that we consider to be unique in nature.

Current wording

We define Adjusted Net Income (Loss) as net income (loss) adjusted for, as applicable, (i) depreciation and amortization, (ii) stock-based compensation expense, (iii) the impact of other non-cash fair market value adjustments, (iv) impairment and restructuring related expenses, (v) gain or loss on the sale of a business, (vi) net realized gains or losses on investments and (vii) other one-off transactions, which primarily include the receipt of earnout consideration and certain legal fees and settlement costs (gains) that we consider to be unique in nature, net of tax impact. We calculate the tax impact only on adjustments which would be included in calculating our income tax expense using the estimated tax rate at which the company received a deduction for these adjustments. We exclude the impact of depreciation and amortization, stock-based compensation expense, and non-cash fair market value adjustments, because these are non-cash expenses or non-cash fair value adjustments and we believe that excluding these items provides meaningful information regarding performance and ongoing cash-generation potential. We exclude impairment and restructuring related expenses, gain or loss on sale of business, and other one-off transactions because such expenses are periodic in nature and have no direct correlation to the cost of operating our business on an ongoing basis that we consider to be unique in nature.

Previous wording

Our existing sources of liquidity include cash and cash equivalents and marketable securities. As of March 31, 2026, we had $275.4 million of cash, $29.4 million of restricted cash, and $423.9 million of available-for-sale fixed income securities and short-term investments. We believe our cash, cash equivalents and short-term securities will be sufficient to fund our operations for at least the next twelve months following the date of this Quarterly Report on Form 10-Q.

Current wording

Our existing sources of liquidity include cash and cash equivalents and marketable securities. As of June 30, 2026, we had $244.5 million of cash, $27.1 million of restricted cash, and $498.0 million of available-for-sale fixed income securities and short-term investments. We believe our cash, cash equivalents and short-term securities will be sufficient to fund our operations for at least the next twelve months following the date of this Quarterly Report on Form 10-Q.

Previous wording

In addition, we are a member of the Federal Home Loan Bank (FHLB) of New York, which provides secured borrowing capacity. Our borrowing capacity as of March 31, 2026, is $55.5 million, and there were no outstanding amounts under this agreement.

Current wording

In addition, we are a member of the Federal Home Loan Bank (FHLB) of New York, which provides secured borrowing capacity. Our borrowing capacity as of June 30, 2026, is $58.8 million, and there were no outstanding amounts under this agreement.

Previous wording

To date, we have funded operations primarily with issuances of convertible preferred stock, convertible promissory notes, common stock and a surplus note, as well as from asset dispositions and revenue. While we have achieved profitability in recent quarters, we cannot assure that we will continue to generate sufficient revenue and other income to cover operating expenses, working capital and capital expenditures. We expect the funds raised as discussed above to fund our cash needs. However, our capital requirements depend on many factors, including the volume of issuances of insurance policies, the timing and extent of spending to support research and development efforts, investments in information technology systems, and the expansion of sales and marketing activities. In the future, we may raise additional funds through the issuance of debt or equity securities or through borrowing. We cannot assure that such funds will be on favorable terms, or available at all.

Current wording

To date, we have funded operations primarily with issuances of convertible preferred stock, convertible promissory notes, common stock and a surplus note, as well as from asset dispositions and revenue. While we have achieved profitability in recent quarters, we cannot assure that we will continue to generate sufficient revenue and other income to cover operating expenses, working capital and capital expenditures in the longer term. We expect the funds raised as discussed above to fund our cash needs. However, our capital requirements depend on many factors, including the volume of issuances of insurance policies, the timing and extent of spending to support research and development efforts, investments in information technology systems, and the expansion of sales and marketing activities. In the future, we may raise additional funds through the issuance of debt or equity securities or through borrowing. We cannot assure that such funds will be on favorable terms, or available at all.

Previous wording

Cash provided by investing activities was $42.5 million for the three months ended March 31, 2026, due primarily to the maturities of investment securities and the proceeds of deferred consideration, partially offset by purchases of investment securities.

Current wording

Cash used in investing activities was $34.7 million for the six months ended June 30, 2026, due primarily to the purchases of investment securities, partially offset by the maturities and sales of investment securities and proceeds of deferred consideration.

Previous wording

Cash used in investing activities was $11.0 million for the three months ended March 31, 2025, due primarily to the purchases of investment securities, partially offset by the maturities of investment securities.

Current wording

Cash used in investing activities was $32.9 million for the six months ended June 30, 2025, due primarily to the purchases of investment securities, partially offset by the maturities of investment securities.

Previous wording

Cash provided by financing activities was $3.7 million for the three months ended March 31, 2026, primarily driven by change in fiduciary liabilities and proceeds from common stock issuances.

Current wording

Cash provided by financing activities was $4.6 million for the six months ended June 30, 2026, primarily driven by change in fiduciary liabilities and proceeds from common stock issuances.

Previous wording

Cash used in financing activities was $6.0 million for the three months ended March 31, 2025, primarily driven by distributions to noncontrolling interests and change in fiduciary liabilities, and taxes paid related to net share settlement of RSUs, partially offset by proceeds from common stock issuances.

Current wording

Cash provided by financing activities was $36.8 million for the six months ended June 30, 2025, primarily driven by proceeds from the surplus note and common stock issuances. These are partially offset by distributions to noncontrolling interests and change in fiduciary liabilities, and taxes paid related to net share settlement of RSUs.

Previous wording

Our material cash requirements from known contractual and other obligations primarily relate to purchase commitments, lease payments, our surplus note, and unpaid losses and loss adjustment expense. There have been no material changes to our contractual obligations from those described in the Annual Report on Form 10-K for the year ended December 31, 2025, other than an increase in Unpaid Losses and Loss Adjustment Expense. The estimation of the unpaid losses and loss adjustment expenses is based on various complex and subjective judgments. Actual losses paid may differ, perhaps significantly, from the reserve estimates reflected in our unaudited interim condensed consolidated financial statements. Similarly, the timing of payment of our estimated losses is not fixed and there may be significant changes in actual payment activity. The assumptions used in estimating the likely payments due by period are based on our historical claims payment experience and industry payment patterns, but due to the inherent uncertainty in the process of estimating the timing of such payments, there is a risk that the amounts paid can be significantly different from the amounts disclosed.

Current wording

Our material cash requirements from known contractual and other obligations primarily relate to unpaid losses and loss adjustment expense, our surplus note, purchase commitments, and lease payments. There have been no material changes to our contractual obligations from those described in the Annual Report on Form 10-K for the year ended December 31, 2025, other than an increase in Unpaid Losses and Loss Adjustment Expense. The estimation of the unpaid losses and loss adjustment expenses is based on various complex and subjective judgments. Actual losses paid may differ, perhaps significantly, from the reserve estimates reflected in our unaudited interim condensed consolidated financial statements. Similarly, the timing of payment of our estimated losses is not fixed and there may be significant changes in actual payment activity. The assumptions used in estimating the likely payments due by period are based on our historical claims payment experience and industry payment patterns, but due to the inherent uncertainty in the process of estimating the timing of such payments, there is a risk that the amounts paid can be significantly different from the amounts disclosed.

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 Estimates” in our 2025 Annual Report on Form 10-K and the notes to the unaudited interim condensed consolidated financial statements appearing elsewhere in this Quarterly Report. During the three months ended March 31, 2026, there were no material changes to our critical accounting policies from those discussed in our 2025 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 Estimates” in our 2025 Annual Report on Form 10-K and the notes to the unaudited interim condensed consolidated financial statements appearing elsewhere in this Quarterly Report. During the six months ended June 30, 2026, there were no material changes to our critical accounting policies from those discussed in our 2025 Annual Report on Form 10-K.