U.S. state insurance laws and regulations prescribe accounting practices for determining statutory net income and capital and surplus for insurance companies. In addition, state regulators may permit statutory accounting practices that differ from prescribed practices. Statutory accounting practices (“SAP”) prescribed or permitted by regulatory authorities for the Company’s insurance subsidiaries differ from U.S. GAAP. The principal differences between SAP and GAAP as they relate to the financial statements of the Company’s insurance subsidiaries are (a) policy acquisition costs are expensed as incurred under SAP, whereas they are deferred and amortized under GAAP, (b) certain assets are not admitted for purposes of determining surplus under SAP, (c) investments in fixed income securities are carried at fair value under GAAP whereas such securities are carried at amortized cost under SAP, and (d) the criteria for recognizing net DTAs and the methodologies used to determine such amounts are different under SAP and GAAP.

Combined statutory net income and statutory capital surplus for the U.S. insurance subsidiaries, PSIC, PESIC, FIA, and Laulima as of December 31, 2025, 2024 and 2023 and for the years then ended are summarized as follows:


	PSIC & PESIC		FIA			Laulima
Statutory net income (loss):
Year ended December 31, 2025	$	179,240	$	(1,620	)	$	2,833
Year ended December 31, 2024		102,510		—			679
Year ended December 31, 2023		97,391		—			(357	)
Statutory capital and surplus:
Year ended December 31, 2025	$	530,337	$	18,036		$	25,593
Year ended December 31, 2024		451,719		—			18,136
Year ended December 31, 2023		439,264		—			14,711

Risk-Based Capital (“RBC”) requirements promulgated by the NAIC require property/casualty insurers to maintain minimum capitalization levels determined based on formulas incorporating various business risks of the insurance subsidiaries. As of December 31, 2025 and 2024, the company’s capital and surplus exceeds its authorized control level.

Under the Bermuda Insurance Act, 1978 and related regulations, PSRE is required to maintain certain solvency and liquidity levels. The minimum statutory solvency margin required was approximately $1.2 million at December 31, 2025 and 2024. Actual

statutory capital and surplus at December 31, 2025 and 2024 was $17.8 million and $17.0 million, respectively. PSRE had statutory net income of $0.4 million, $0.4 million and $0.3 million for 2025, 2024 and 2023, respectively.

PSRE had stockholders’ equity of $18.1 million and $16.9 million on a GAAP basis at December 31, 2025 and 2024, respectively. The principal difference between statutory capital and surplus and stockholders’ equity presented in accordance with GAAP is related to the valuation of investments. No dividends were paid in 2025 and 2024.

PSRE maintains a Class 3A license and thus must maintain a minimum liquidity ratio in which the value of its relevant assets is not less than 75.0% of the amount of its relevant liabilities for general business. Relevant assets include cash and cash equivalents, fixed maturity securities, accrued interest income, premiums receivable, losses recoverable from reinsurers, and funds withheld. The relevant liabilities include total general business insurance reserves and total other liabilities, less sundry liabilities. As of December 31, 2025 and 2024, the Company met the minimum liquidity ratio requirement.