Reinsurance (Tables)

3 Months Ended

Mar. 31, 2026

The effect of all of our reinsurance transactions on our consolidated statement of operations is shown in table 7.1 below.


Reinsurance
Table	7.1
		Three Months Ended March 31,
(In thousands)		2026		2025
Premiums earned:
Direct		$	286,927	$	284,821
Assumed		3,980		3,561
Ceded:
Ceded - quota share reinsurance (1)		(37,769)		(29,943)
Ceded - excess-of-loss reinsurance		(17,775)		(14,720)
Total ceded		(55,544)		(44,663)
Net premiums earned		$	235,363	$	243,719

Losses incurred:
Direct		$	45,270	$	16,017
Assumed		(2)		5
Ceded - quota share reinsurance		(12,026)		(6,431)
Losses incurred, net		$	33,242	$	9,591

Other Reinsurance Impacts:
Profit commission on quota share reinsurance (1)		$	29,103	$	28,695
Ceding commission on quota share reinsurance		13,374		11,727

(1)Ceded premiums earned are shown net of profit commission.

Schedule of quota share reinsurance transactions

Table 7.2 below provides additional detail regarding our QSR Transactions in effect as of March 31, 2026.


Quota Share Reinsurance
Table	7.2

Quota Share Contract		Covered Policy Years	Quota Share %		Annual Loss Ratio to Exhaust Profit Commission (1)		Contractual Termination Date
2020 QSR and 2021 QSR		2021	14.8	%	69.0	%	December 31, 2036
2021 QSR and 2022 QSR		2021	11.1	%	69.0	%	December 31, 2036
2021 QSR and 2022 QSR		2022	13.8	%	67.5	%	December 31, 2037
2022 QSR and 2023 QSR		2022	14.5	%	67.5	%	December 31, 2037
2022 QSR and 2023 QSR		2023	15.0	%	62.0	%	December 31, 2034
2023 QSR		2023	10.0	%	58.5	%	December 31, 2034
2024 QSR		2024	30.0	%	56.0	%	'December 31, 2035
2025 QSR		2025	40.0	%	63.0	%	'December 31, 2036
2026 QSR		2026	40.0	%	62.0	%	December 31, 2037
Credit Union QSR		2020-2025	65.0	%	50.0	%	December 31, 2039
		2026-2030 (2)	65.0	%	60.0	%	December 31, 2044

(1)We will receive a profit commission provided the annual loss ratio on policies covered under the transaction remains below this ratio.

(2)We can elect early termination of the QSR Transaction beginning on December 31, 2028, and quarterly thereafter.

Table 7.3 provides additional detail regarding optional termination dates and optional reductions to our quota share percentage which can, in each case, be elected by us for a fee. Under the optional reduction to the quota share percentage, we may reduce our quota share percentage from the original percentage shown in table 7.2 to the percentage shown in table 7.3.

Quota Share Reinsurance

Table

7.3

Quota Share Contract

Covered Policy Years

Optional Termination Date (1)

Optional Quota Share % Reduction Date (2)

Optional Reduced Quota Share %

2020 QSR and 2021 QSR

2021

December 31, 2027

January 1, 2028

12.3% or 10%

2021 QSR and 2022 QSR

2021

December 31, 2027

January 1, 2028

9.4% or 7%

2021 QSR and 2022 QSR

2022

June 30, 2028

July 1, 2028

11.5% or 9.2%

2022 QSR and 2023 QSR

2022

June 30, 2028

July 1, 2028

12.1% or 9.7%

2022 QSR and 2023 QSR

2023

June 30, 2026

July 1, 2026

12.5% or 10%

2023 QSR

2023

June 30, 2026

July 1, 2026

8% or 7%

2024 QSR

2024

December 31, 2027

23% or 15%

2025 QSR

2025

December 31, 2027

30% or 20%

2026 QSR

2026

December 31, 2028

30% or 20%

(1)We can elect early termination of the QSR Transaction beginning on this date, and semi-annually thereafter.

(2)We can elect to reduce the quota share percentage beginning on this date, and semi-annually thereafter.

Schedule of coverages and retention

The following table provides a summary of our XOL Transactions that were in effect as of March 31, 2026.

Excess of Loss Reinsurance

Table 7.4a

Issue Date

Policy In Force Dates

Optional Call Date (1)

Legal Maturity

2026 Traditional XOL

January 1, 2026

January 1, 2026 - December 31, 2026

January 1, 2032

10 years

2025 Traditional XOL

June 1, 2025

January 1, 2025 - December 31, 2025

January 1, 2031

10 years

2024 Traditional XOL

April 1, 2024

January 1, 2024 - December 31, 2024

January 1, 2030

10 years

2023 Traditional XOL

April 1, 2023

January 1, 2023 - December 29, 2023

January 1, 2031

10 years

2022 Traditional XOL

April 1, 2022

January 1, 2022 - December 30, 2022

January 1, 2030

10 years

2021 Traditional XOL

December 1, 2025

January 1, 2021 - December 31, 2021

January 1, 2031

10 years

2020 Traditional XOL

March 1, 2025

January 1, 2020 - December 31, 2020

April 1, 2030

10 years

Home Re 2026-1, Ltd.

January 29, 2026

January 1, 2022 - March 31, 2025

January 25, 2031

10 years

Home Re 2023-1, Ltd.

October 23, 2023

June 1, 2022 - August 31, 2023

October 25, 2028

10 years

Home Re 2022-1, Ltd.

April 26, 2022

May 29, 2021 - December 31, 2021

April 25, 2028

12.5 years

Home Re 2021-2, Ltd.

August 3, 2021

January 1, 2021 - May 28, 2021

July 25, 2028

12.5 years

(1)We have the right to terminate the Home Re Transactions under certain circumstances, including an optional call feature that provides us the right to terminate if the outstanding principal balance of the related insurance-linked notes falls below 10% of the initial principal balance of the related insurance-linked notes, and on any payment date on or after the respective Optional Call Date. We can elect early termination of the Traditional XOL Transactions beginning on this date, and quarterly thereafter.

Tables 7.4b and 7.4c provide additional information about our XOL Transactions in effect as of the dates indicated.



Table 7.4b			Remaining First Layer Retention
($ in thousands)	Initial First Layer Retention		March 31, 2026		December 31, 2025
2025 Traditional XOL	$	95,966	$	95,966	$	95,966
2024 Traditional XOL	125,016		123,596		124,458
2023 Traditional XOL	70,578		68,299		69,060
2022 Traditional XOL	82,523		76,952		78,023
2021 Traditional XOL	142,291		142,291		142,291
2020 Traditional XOL	68,343		68,288		68,288
Home Re 2026-1, Ltd.	231,769		231,750		N/A
Home Re 2023-1, Ltd.	272,961		263,855		266,371
Home Re 2022-1, Ltd.	325,589		317,741		318,906
Home Re 2021-2, Ltd.	190,159		186,537		187,030


Table 7.4c							Remaining Excess of Loss Reinsurance Coverage (1)
($ in thousands)	Initial Excess of Loss Reinsurance Coverage (1)		Initial Funding Percentage (2)		Funding Percentage at 3/31/2026 (2)		March 31, 2026		December 31, 2025
2025 Traditional XOL	$	151,851	N/A		N/A		$	151,851	$	151,851
2024 Traditional XOL	187,220		N/A		N/A		178,796		187,220
2023 Traditional XOL	96,942		N/A		N/A		59,066		64,217
2022 Traditional XOL	142,642		N/A		N/A		97,362		100,274
2021 Traditional XOL	250,000		N/A		N/A		250,000		250,000
2020 Traditional XOL	250,592		N/A		N/A		250,592		250,592
Home Re 2026-1, Ltd.	323,504		100	%	100	%	322,204		N/A
Home Re 2023-1, Ltd.	330,277		97	%	95	%	214,444		231,708
Home Re 2022-1, Ltd.	473,575		100	%	100	%	188,763		207,641
Home Re 2021-2, Ltd.	398,429		100	%	100	%	68,267		84,376

(1)The initial and remaining excess of loss reinsurance coverage is reduced by the applicable funding percentage.

(2)The funding percentage represents the aggregate outstanding note balances divided by the aggregate ending coverage amounts.

Schedule of total assets of Home Re

Table 7.5 presents the total assets of the Home Re Entities as of March 31, 2026 and December 31, 2025.


Home Re total assets
Table	7.5
(In thousands)		Total VIE Assets
Home Re Entity		March 31, 2026		December 31, 2025

Home Re 2026-1 Ltd.		$	323,504	N/A
Home Re 2023-1 Ltd.		221,144		237,900
Home Re 2022-1 Ltd.		196,027		214,788
Home Re 2021-2 Ltd.		74,244		89,865

- Definition

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