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Segment Information | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segment Information | Segment Information We have one reportable segment: management operations. All segment revenue is derived in the United States, the majority of which is from the subscriber’s agreement between us and the subscribers (policyholders) at the Exchange, our sole customer, as further described in Note 3, "Revenue". Our chief operating decision maker ("CODM") is our Executive Council, which includes our Chief Executive Officer ("CEO"), Chief Financial Officer, executive vice presidents and certain senior vice presidents reporting directly to the CEO as applicable. The CODM assesses performance for the management operations segment and decides how to allocate resources based on net income, as reported in our Consolidated Statements of Operations. Net income is used to monitor budget versus actual results. Total assets as reported in our Consolidated Statements of Financial Position, all of which are located in the United States, are reviewed by the CODM for purposes of decision making. The accounting policies of our management operations segment are the same as those described in Note 2, "Significant Accounting Policies, of Notes to Consolidated Financial Statements" included in our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on February 27, 2025. The following table presents our management operations segment revenue, significant segment expenses regularly provided to the CODM and net income:
| Three months ended September 30, |  | Nine months ended September 30,
(in thousands) | 2025 |  | 2024 |  | 2025 |  | 2024
Management fee revenue | $ | 844,106 |  |  | $ | 786,316 |  |  | $ | 2,458,949 |  |  | $ | 2,246,873 |
Administrative services reimbursement revenue | 215,694 |  |  | 206,754 |  |  | 638,611 |  |  | 604,349 |
Service agreement revenue | 6,939 |  |  | 6,816 |  |  | 18,675 |  |  | 19,803 |
Total operating revenue | 1,066,739 |  |  | 999,886 |  |  | 3,116,235 |  |  | 2,871,025 |
Commissions | 461,513 |  |  | 420,516 |  |  | 1,361,815 |  |  | 1,216,227 |
Underwriting and policy processing | 53,097 |  |  | 51,449 |  |  | 156,264 |  |  | 150,350 |
Information technology | 56,294 |  |  | 54,825 |  |  | 178,748 |  |  | 158,914 |
Sales and advertising | 14,342 |  |  | 18,725 |  |  | 51,498 |  |  | 52,886 |
Customer service | 12,176 |  |  | 11,300 |  |  | 35,253 |  |  | 31,726 |
Administrative and other | 44,702 |  |  | 56,192 |  |  | 134,576 |  |  | 147,428 |
Cost of operations - policy issuance and renewal services | 642,124 |  |  | 613,007 |  |  | 1,918,154 |  |  | 1,757,531 |
Cost of operations - administrative services | 215,694 |  |  | 206,754 |  |  | 638,611 |  |  | 604,349 |
Total operating expenses (1) | 857,818 |  |  | 819,761 |  |  | 2,556,765 |  |  | 2,361,880 |
Operating income | 208,921 |  |  | 180,125 |  |  | 559,470 |  |  | 509,145 |
Total investment income | 21,554 |  |  | 19,549 |  |  | 60,690 |  |  | 48,455 |
Other income | 2,286 |  |  | 1,168 |  |  | 8,094 |  |  | 7,871 |
Income tax expense | 49,908 |  |  | 41,012 |  |  | 132,299 |  |  | 117,186 |
Net income | $ | 182,853 |  |  | $ | 159,830 |  |  | $ | 495,955 |  |  | $ | 448,285 |
(1) Management operations segment depreciation and amortization expense included in "Total operating expenses" as reported on our Consolidated Statements of Operations totaled $18.4 million and $14.4 million in the third quarter of 2025 and 2024, respectively, and $50.3 million and $41.5 million for the nine months ended September 30, 2025 and 2024, respectively. The Exchange and its insurance subsidiaries reimbursed us approximately 30% and 28% for the nine months ended September 30, 2025 and 2024, respectively, for depreciation and amortization expense on assets supporting administrative services. See our Consolidated Statements of Cash Flows for segment expenditures on fixed asset additions.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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