Skyward/2025/FY/Annual report: Difference between revisions

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* ''Skyward Specialty'' was formed as a Delaware corporation on January 3, 2006, as an insurance holding company ^{p. 1}.

* The company operated under the name Houston International Insurance Group, Ltd. until re-brandingrebranding as Skyward Specialty in November 2020 ^{p. 1}.

* Skyward Specialty is a growing specialty insurance company providing commercial insurance products and solutions on botha non-admitted (E&S) and admitted basesbasis, primarily in the United States ^{p. 1}.

* The company focuses on underserved, dislocated, or inadequately covered markets, requiringwhere highlystandard specialized,insurance customizedcoverages underwritingare solutions and claims capabilitiesinsufficient ^{p. 1}.

* The leadership is supported by an experienced team with broad skill sets aligned with the company's strategy ^{p. 1}.

* The company's highHigh-quality leadership, underwriting and claims teams, technology DNA, advanced analytics capabilities, diversified book of business, and strong competitive position in chosen market niches are expectedbelieved to enableposition profitablethe businesscompany for continued profitable growth ^{p. 1}.

* All insurance company subsidiaries are group rated and holdhave financial strength ratings of ''“A”"A" (Excellent)'' from A.M. Best Company, with a stable outlook ^{p. 1}.

* On September 2, 2025, the company entered into two share purchase agreements (the "Apollo Majority SPAs") with institutional and management shareholders of Apollo Group Holdings Limited ("Apollo"), referred to as (the "Majority Sellers") ^{p. 2}.

* Pursuant to the Apollo Majority SPAs, the company agreed to acquire approximately 87% of theall issued share capitalshares of Apollo held by the Majority Sellers, representing approximately 87% of Apollo's issued share capital ^{p. 2}.

* The closingClosing of the transaction ("Closing") was conditioned upon the company acquiring 100% of Apollo's issued share capital (the “Acquisition”) at Closing through additional short-form share purchase agreements (the "Apollo Minority SPAs") with the remaining minority shareholders (the "Minority Sellers") ^{p. 2}.

* Apollo has consistently grown's gross written premium has grown consistently since its formation in 2010 ^{p. 2}.

* Apollo earns managing agency fees and profit commissions asfor being the managing agent forto its own syndicates and forto third-party syndicates, known as (platform partners) ^{p. 2}.

* The acquisition aligns with Skyward Specialty’s strategy by bringingintroducing new specialty niches, a distinctive new economy offering, accelerating innovation, and adding Apollo’s advanced technology capabilities ^{p. 2}.

* David Ibeson will continue as CEO of Apollo, leading itsApollo's growth as a subsidiary of Skyward Specialty, along with Apollo’s management team ^{p. 2}.

* The company operates throughwith one reportable segment, offering a broad arrayrange of insurance coverages across various market niches ^{p. 3}.

* The company has nineNine distinct underwriting divisions exist, each with dedicated leadership and technical staff experienced in their niches ^{p. 3}.

* This structure aims to effectively serve customer needscustomers, be a value-add partner towith distributors, and earnachieve attractive risk-adjusted returns ^{p. 3}.

* ''Accident & Health (A&H)'' underwriting division provides medical stop loss to employers who self-insureinsured employee benefitsemployers and covers group and single-employer captives ^{p. 3}.

* The ''A&H captives program'' offers tailored medical stop-loss and reinsurance solutions for group and single-employer captive arrangements, with dedicated underwriting and claims oversight ^{p. 3}.

* The A&H division targets small and medium-sized enterprises seeking to control healthcare costs by self-insuring a portion of their healthcare insurance ^{p. 3}.

* A&H products are written on an admitted basis and distributed primarily through retail and wholesale broker partnersbrokers ^{p. 3}.

* ''Agriculture and Credit (Re)insurance'' underwriting division provides specialty risk-transfer solutions across a diversified global portfolio ^{p. 3}.

* This divisionportfolio coversincludes agriculture, dairy and livestock revenue protection, and mortgage and credit product lines ^{p. 3}.

* ItThe division supports insurers, MGAs, and other risk originators with tailored treaty protection using proportional and excess of loss structures ^{p. 3}.

* The global''Global agriculture book'' covers weather and natural peril-driven volatility and other, production, and yield risks to manage catastrophe exposure and seasonal earnings variability ^{p. 3}.

* The mortgage''Mortgage portfolio'' supports government-sponsored entities and private mortgage insurers against default and loss severity volatility, typically due to macroeconomic stress, structured to manage tail risk ^{p. 3}.

* The credit''Credit portfolio'' provides protectionprotects against losses from default risk for single obligors and multi-buyer trade credit across diverse regions and industries ^{p. 3}.

* The dairy''Dairy and livestock business'' provides producers with revenue protection against price volatility in milk, cattle, and hog markets ^{p. 3}.

* Derivative instruments, primarily put options and futures, are used to mitigate commodity price risk associated with exposurerelated to cattle, hog, and milk prices ^{p. 3}.

* These derivative instruments are used solely to manage exposurefor tomanaging adverse price movements, with positions adjusted throughout the year ^{p. 3}.

* ''Captives'' underwritingThis division provideswrites groupproperty, captivegeneral solutionsliability, bycommercial leveragingauto, underwritingexcess liability, and claimsworkers’ expertisecompensation fromon E&S and otheradmitted divisionsbases ^{p. 3}.

* ''Construction & Energy Solutions'' underwriting division focuses on high-severity exposures, offeringwith tailored multi-line solutions including general liability, excess liability, commercial auto, and workers’ compensation ^{p. 3}.

* ''Global Property'' underwriting division provides comprehensive property insurance and reinsurance solutions for commercial clients worldwide ^{p. 3}.

* Offerings protect against physical loss or damage to assets, including buildings, equipment, and inventory, due tofrom natural catastrophes and other insured perils ^{p. 3}.

* Management/Professional liability and allied health provide primary and excess claims-made liability products on an E&S and admitted basis ^{p. 3}.

* These products are distributedoffered throughon both wholesaleE&S and retailadmitted brokersbases, dependingdistributed onthrough thewholesale productand retail brokers ^{p. 3}.

* This partnership model is used to participate profitably participate or extend reach in certain markets, leveraging program administrators' competitive advantages like scale or proprietary technology ^{p. 3}.

* The Specialty Programs division writes property, general liability, commercial auto liability, excess liability, and workers’ compensation lines of business on an E&S and admitted basisbases ^{p. 3}.

* ''Surety'' underwriting division provides contract, commercial, and transactional surety solutions to trade and services organizations ^{p. 3}.

* The focusFocus is principally on small to medium-sized enterprises with aggregate bond programs up to approximately ''$100.0 million'' for contract and ''$125.0 million'' for commercial and transactional ^{p. 3}.

* ThisEmphasis divisionis emphasizes risks consideredon hard -to -place risks due to complexity, loss history, or limited operating history (e.g., start-upsstartups) ^{p. 3}.

* Success in this market isrelies determined byon technical underwriting, thoughtful coverage provisions, pricing, and high-quality broker service ^{p. 3}.

* MarketAccess accessto the market in this division is exclusively through wholesale brokers ^{p. 3}.

* BusinessThe company has "exited business" units and lines ofthat businesswere previously exited and placed into run-off are referred to as "exited business" ^{p. 3}.

* The company's strategy, referred to as “Rule Our Niche,” aimsis to lead in chosen market niches and establish sustainable, competitive positions ^{p. 3}.

** Providing differentiated products, services, and solutions for target markets ^{p. 3}.

** Attracting and retaining exceptional underwriting and claims talent, incentivized to align with organizational and corporate goals ^{p. 3}.

** Amplifying expertise with advanced technology and analytics for superior risk selection, pricing, and claims management ^{p. 3}.

** Empowering underwriting and claims teams with significant authority for decision-making and expertise applicationauthority ^{p. 3}.

** Fostering a culture that promotesof nimbleness and responsiveness to market opportunities and dislocation ^{p. 3}.

* ''CompetitiveThe strengths''company include a focusfocuses on profitable niches in the market nichesthat requiringrequire technical underwriting and claims management, which act as barriers to entry ^{p. 4}.

* The companyselected targetsniche underserved,areas dislocated, or complexwithin commercial lines P&C markets forare considered attractive for generating risk-adjusted returns ^{p. 4}.

* The company hiresbuilds andunderwriting retainsdivisions ''highlywith skilleddeeply underwritingexperienced and technical staff''underwriters who usehave theirappropriate expertise and judgmentauthority for evaluating and pricing complex risks, rather than strict underwriting rulesdecision-making ^{p. 4}.

* ''SuperiorThis Claimsstructure Staffallows andfor Operations''innovative includeproducts aand specializedsolutions teamfor knowledgeabledistribution inpartners specificand nichescustomers, andeven linesfor ofchallenging businessrisks ^{p. 4}.

* ClaimsThe arecompany handledresponds quickly byto claims with specialized adjusters using expertise, advanced technology, and analytics ^{p. 4}.

* Analytics capabilities provide senior leadership and claims teams with real-time, detailed information on open claims and benchmarks against closed claims for senior leadership and claims teams ^{p. 4}.

* ''SkyBI'', the business intelligence platform, provides real-time intelligence to senior leadership and technical teams for decision-making ^{p. 4}.

* SkyBI provides information and performance metrics across the company in a visualized format, filterable by categories such as distributor, customer segment, line of business, industry, underwriter, and risk feature ^{p. 4}.

* UnderwritingThe decisionscompany combinebelieves reliablethat historicalnew datatypes and in-depthof risk evaluationdata withand newadvanced formstechnology ofcan riskaugment dataunderwriting and predictiveclaims analyticsdecisions ^{p. 4}.

* TheGenerative businessartificial aimsintelligence tois adaptused toin marketunderwriting conditionsand byclaims growinghandling certain linesto whenenhance favorableeffectiveness and limitingefficiency, exposurewhile whenstill conditionsrelying areon lessemployee favorableexpertise ^{p. 4}.

* The company has ana ''attractive and winningdistinctive culture'', evidenced by internal surveys, public information (Glassdoor, LinkedIn), and selection as a "Best Places to Work in Insurance" ^{p. 4}.

* The culture featuresand operating approach feature a flat communication and decision-making structure, empowering staff to make decisions and supporting them with a clear measurement system ^{p. 4}.

* The company maintainsadopted ana entrepreneurial environment that encourages ahybrid proactivework approachschedule, tooffering capitalizeflexibility onfor marketremote disruptionworking ^{p. 4}.

* The ''leadershipcompany team''maintains isan high-quality,entrepreneurial experienced,environment that encourages and alignedrewards a proactive approach to withmarket shareholdersdisruption ^{p. 4}.

* SeniorThe leadership compensationteam, includesled materialby long-termChairman and short-termCEO incentivesAndrew tiedRobinson, tois deliveringexperienced, sustainableinnovative, best-in-class underwritingand returnsentrepreneurial ^{p. 4}.

* ExecutiveThe executive leadership team has additionala long-termtrack incentiverecord targetsof tiedsuccess directlyin tosenior growthmanagement inroles bookat industry-leading P&C companies and in valuebuilding pernew sharebusinesses ^{p. 4}.

* The company's "Rule Our Niche" strategy guidesaims allto activitiesgenerate frombest-in-class recruitingunderwriting toprofitability within its niches and create superior long-term shareholder value through growth in book value claimsper resolutionshare ^{p. 5}.

* TheCore goaltenets of the "Rule Our Niche" strategy isinclude toattracting generateand bestretaining blue-in-classchip underwriting profitability for niches and createclaims superiortalent long-termto shareholderexpand value through growth in bookand valueenhance permarket shareposition ^{p. 5}.

* CoreThe tenetscompany ofseeks theto "Rulehire Ourand Niche"retain strategytechnical includeunderwriting attractingprofessionals andwith retaining bluelong-chipstanding underwritingindustry relationships and claims talentprofessionals with expertise in specific niches ^{p. 5}.

* Another core tenet is leveraging technology DNA to differentiate from competitors ^{p. 5}.

* The company has demonstrated an ability to use new forms of risk data and advanced technology in complex, highhigher-severity risk categories within the specialty P&C insurance market ^{p. 5}.

* SkyBI providesenables theprompt abilitysensing toand promptly sense andquick respondresponse to market changes ^{p. 5}.

* Core operating platforms allow efficient entry into new markets without complex or burdensome systems ^{p. 5}.

* AThe furtherstrategy tenetalso isincludes profitably growing existing lines of business and expanding with new underwriting divisions ^{p. 5}.

* The company is positioned to capitalize on trends impacting customers in the U.S. and globally, such as increased demand for specialized insurance due to rising and complex risks ^{p. 5}.

* One trend is the rising demand for specialized insurance due to increasing and complexThese risks frominclude climate change, /severe weather events, supply chain uncertainty, financial inflation, cyber risk, novel health risks, increased litigation, attorney involvement, jury awards, and healthcare delivery/cost ^{p. 5}.

* Another notable market trend is the emergence of "micro cycles and micro dislocations" inwhere thedifferent P&C insurance market segments experience hardening and softening at varying times ^{p. 5}.

* The company has reacted quickly to these trends by launching new underwriting units (somemany not aligned with P&C cycles), entering underserved markets, partnering withon advanced technology providers, and launching new captive solutions ^{p. 5}.

* Gross written premium growth and profitability indicate momentum and position the company for continued expansion and growth ^{p. 5}.

* Meeting long-term goals, including best-in-class underwriting returns and book value per share growth, depends on execution of day-to-day operational executionoperations across all functional departments (underwriting, product management, claims management) ^{p. 5}.

* SkyBI enablesprovides a foundation for senior management to monitor performance, including renewal rates, new business pricing, portfolio performance, claimsfor agingunderwriters, and claims aging/reserving practices for adjusters ^{p. 5}.

* Focus on fundamentals driving underwriting fundamentalsexcellence is central to the strategy ^{p. 5}.

* Cross-functional collaboration ensures regular review of performance and trends by underwriting, claims, actuarial, and product management teams forto quick implementation ofimplement portfolio, pricing, and coverage changes quickly ^{p. 5}.

* The company is committed to maintaining a strong balance sheet, throughstarting with conservative loss reserves and strong capitalization ratios ^{p. 5}.

* The company's maintainspractice ais levelto ofmaintain incurred but not reported reserves ("IBNR") that, combined with case reserves, exceedsare above the actuarial central estimate ^{p. 5}.

* The company's marketing and distribution approach aligns withmirrors its underwriting strategy and is central to its "Rule Our Niche" strategy ^{p. 6}.

* ''Underwriting teams'' and the company maintain strong relationships and reputations with distribution partners, facilitating new affiliations ^{p. 6}.

* The company believesattributes itits succeedssuccess with distribution partners due to its deep expertise in niche markets, high-caliber underwriters, a culture of innovation, thoughtful product line-uplineup and design, and responsive speed and qualityservice ^{p. 6}.

* All underwriting divisions dedicate significant time and effort to maintaining and expanding distribution partner loyalty and long-term relationships ^{p. 6}.

* The company tailors its choice of ''distribution partners'' to access specific business, similar to how it tailors underwriting to insureds' needs ^{p. 6}.

* Products are distributed through ''retail agents'', ''wholesale brokers'', ''select program administrators'', and ''captive managers'' ^{p. 6}.

* This distribution strategyapproach enables effective and efficient access to targeted business based on market niche needs and dynamics ^{p. 6}.

* The underwriting approach relies on hiring highly experienced, best-in-class, and diverse teams of technical underwriters with proven track records in specific specialty niche markets ^{p. 7}.

* This approach isaims believed to lead tofor superior risk selection and pricing, andleading to sustainable best-in-class underwriting results across market cycles ^{p. 7}.

* The company aims to improveaugments underwriting professionals' capabilities andusing experiencenew usingforms newof data and analytics for risk selection and pricing ^{p. 7}.

* Underwriting data is captured in the company's business intelligence platform, SkyBI, which serves as a comprehensive data repository for reporting, analytics, and other data capabilities ^{p. 7}.

* SkyBI serves as a comprehensive data repository for reporting, analytics, and other data capabilities, and is a key tool for senior management and business leaders ^{p. 7}.

* The company is highly selective in binding policies, encouraging underwriters to move on from opportunities that do not meet premium and coverage term standards ^{p. 7}.

* In the E&S market, the company utilizesuses freedom of rate and form to match risk and coverage to the unique needs and exposures of that market ^{p. 7}.

* Policies are crafted to offer affordable and appropriate protection for insureds' exposures, whilewith alsocoverage structuring coveragestructured to make potential losses more predictable and manage claims costs manageable ^{p. 7}.

* This collaboration ensures thattimely businessanalysis and action on trends in business, legal and tort developments, and competitor and regulatory actions are analyzed, shared, and acted upon promptly ^{p. 7}.

* This structure helps identify opportunities and issues early, contributing to the company's nimbleness and ability to capitalize onleverage market disruptions ^{p. 7}.

* Underwriting controls and procedures are regularly reviewed to ensure profitableunderwriters underwritingprofitably acrossunderwrite allin servedeach marketsmarket served ^{p. 7}.

* Skyward's claims department operates under six guiding principles: prompt and comprehensive investigations using advanced analytics and technology; quality claims handling withand customer engagement; prompttimely establishment of reserves based on best estimates; effective pursuit of contribution and subrogation; detection and prevention of fraud; and disciplined litigation management for superior legal defense and cost monitoring ^{p. 8}.

* Continuous training is provided to claim staff on claim evaluation, strategy, litigation management, good-faith claims handling, and best practices to achieve timely and optimal claim outcomes ^{p. 8}.

* TPAs are actively managed, overseen, and regularly audited to ensure compliance with Skyward's claims handling, and reserving guidelines, and general best practices ^{p. 8}.

* Technology is leveraged for efficiencyefficiencies in claims handling, including a Claims Development Severity Predictor model ^{p. 8}.

* The Claims Development Severity Predictor identifies claims likely to lead to large loss development using key phrases, enabling early identification, proactive management, and summarization of development reasons ^{p. 8}.

* A "quick strike" program has been implemented for commercial auto claims, deploying experienced investigators and vendors to accident scenes, ideally within two hours, regardless of location ^{p. 8}.

* The quick strike program aimsassists toin evaluateevaluating accident facts and circumstances rapidly and, if appropriate, resolveresolving third-party claims quickly ^{p. 8}.

* Technology is central to Skyward Specialty Insurance Group's operations and decision-making, aiming for long-term competitive advantageadvantages ^{p. 9}.

* SkyBI providespresents information and performance metrics across the company in a visualized format ^{p. 9}.

* Underwriting divisions intentionally "Rule Our Niche" bythrough innovatingconstant constantlyinnovation withtailored actionsto specific to each divisiondivisions/market servedmarkets ^{p. 9}.

* ''Core transactional platforms'', including (policy administration, underwriting workbench, billing, and claims systems), are designed for nimble scaling and business expansion ^{p. 9}.

* The core platform organization is used for all business except accident & health, global property, agriculture and, credit (re)insurance, and surety, which require dedicated core processing components due to their unique features ^{p. 9}.

* Data from all divisions' core operating platforms flows to the SkyBI platform with comparable data quality and granularity ^{p. 9}.

* Advanced technology for underwriting and claims, SkyBI, and core operating platforms create a flywheel effect, enabling underwriters to better select risk, claims professionals to adjudicate claims, unit leaders to communicate with partners, and senior leadership to evaluate business trends ^{p. 9}.

* Data is replicated in real-time to a third-party cloud disaster recovery site for use during major system failures ^{p. 9}.

* Actions to prevent system and data disruptions include: actively monitoring Cybersecurity and Infrastructure Security Agency’s ("CISA") cybersecurity directives and taking immediate action on identified vulnerabilities ^{p. 9}.

** MonthlyRequiring securitytwo-factor training is conductedauthentication for allsystem employeesaccess ^{p. 9}.

** EndpointConducting detectionmonthly agentssecurity are implementedtraining for threat detection andall responseemployees ^{p. 9}.

* ReinsuranceThe iscompany strategically purchasedpurchases reinsurance from third parties to protect capital from severity events (large single event losses or catastrophes) and reduce earnings volatility ^{p. 10}.

* FactorsAnnual influencingrenewal reinsuranceconsiderations purchasefor changesreinsurance at renewalpurchases include planschanges forto underlying insurance coverage, updated loss activity, capital and surplus levels, changes in risk appetite changes, and the cost and availability of reinsurance treaties ^{p. 10}.

* ''ReinsuranceThe types''company purchased includepurchases quota share, excess of loss, and facultative reinsurance coverage to limit exposure from singlelosses occurrenceon lossesany one occurrence ^{p. 10}.

* The mix of reinsurance purchased considersis based on efficiency, cost, risk appetite, and specific factors of the underlying risks underwritten ^{p. 10}.

* ''Quota share reinsurance'' involves thea reinsurer assuming a specified percentage of losses from a defined business class of business in exchange for a corresponding percentage of premiums, net of a ceding commission ^{p. 10}.

* ''Excess of loss reinsurance'' involves thea reinsurer assuming all or a portion of losses for an individual claim or event exceedingabove a specified amount, in exchange for a negotiated premium, includingand includes the catastrophe reinsurance programsprogram ^{p. 10}.

* AggregationThe ofcompany actively manages and monitors property writings by geographic area is actively managed and monitored to limit potential loss aggregation from severe events like hurricanes, convective storms, and earthquakes ^{p. 10}.

* Third-party stochastic and internalproprietary deterministic models are used to analyze the risk of loss aggregation forfrom such events and inform catastrophe reinsurance purchases ^{p. 10}.

* These models provide a quantitative view of PML (Probable Maximum Loss) events, estimatingwhich estimate the expected loss level for a given return period ^{p. 10}.

* ModelingBased indicateson thatmodeling, an event beyond a 1 in 250-year PML would be required to exhaust the company's ''$36.0 million property catastrophe coverage'' ^{p. 10}.

* The company aims to expose no more than ''3.0% of stockholders’ equity'' to a catastrophic loss that is less than a 1 in 250-year event ^{p. 10}.

* ReinsuranceThe iscompany soughtseeks to purchase reinsurance from reinsurers rated at least “A"A-”" (“Excellent”"Excellent") or better by A.M. Best ^{p. 10}.

* As of December 31, 2025, ''98% of reinsurance recoverables'' were from reinsurers rated “A"A-”" (Excellent) or better by A.M. Best, or were collateralized ^{p. 10}.

* FailureThe ofcompany reinsurersretains toprimary payliability claimsto couldpolicyholders resultif inreinsurers losses,fail asto thepay companyclaims, retains primary liabilityleading to policyholderspotential losses ^{p. 10}.

* Allowances for uncollectible reinsurance are established due to potentialthe risk of reinsurer failuredefault ^{p. 10}.

* The ''Allowanceallowance for uncollectible reinsurance'' was $2.3 million at December 31, 2025, and 2024 ^{p. 10}.

* ''Enterprise Risk Management (ERM)'' is integratedembedded intoin nearly every aspect of the company and guides dailyday-to-day activities ^{p. 11}.

* The ''ERM approach'' aims to achieveensure an acceptable risk-adjusted return for shareholders while maintaining trust and reliability for those served ^{p. 11}.

* The company is intentional in its underwriting''Underwriting and asset portfolio construction'' are intentional ^{p. 11}.

* ''UnderwritingLiability portfolioduration and market cyclicality'' balancesof liabilitythe durationunderwriting andportfolio marketare cyclicalitybalanced ^{p. 11}.

* The ''SVP, CFO & Head of ERM - US Operations'' oversees critical ERM processes and chairs the cross-functional corporate ERM Committee ^{p. 11}.

* The''Economic companyCapital Model (ECM)'' formalizes itsthe company's view of risk and solvency usingin anterms ''Economic Capital Model (ECM)'' to measureof potential economic loss ^{p. 11}.

* ''ECM output'' measures potential earnings and capital loss acrossfor various scenarios ^{p. 11}.

* These outputs are measured against ''riskRisk tolerances'' are set and updated annually by the ERM Committee and discussed with the Risk Committee of the Board of Directors ^{p. 11}.

* The ''ECM'' provides a probabilistic modeled view of earnings and capital loss, integrating potential losses from catastrophes, reserving, underwriting, market, credit risk, strategic, and operational risks ^{p. 11}.

* The ''SVP, CFO & Head of ERM'' works with the ERM Committee to review and maintain a comprehensive ''risk register'', ensuringwith appropriateaccountabilities for mitigations are in place and monitored ^{p. 11}.

* The ''topTop 10 risks'' are identified, quantified, and reviewed quarterly by the SVP, CFO & Head of ERM and the ERM Committee, and reviewed quarterly ^{p. 11}.

* These''Reports'' on top reportsrisks are submitted regularly to the ''Risk Committee'' regularly by the SVP, CFO & Head of ERM and the ERM Committee ^{p. 11}.

* ''Operational processes and controls'' are designedconstructed to identify, assess, and manage key risks continuously ^{p. 11}.

* The ''Underwriting Committee'' is responsible for overseeingoversees changes in risk appetite, product line, and division expansion ^{p. 11}.

* ''Claims handling practicesdepartment'' aremonitors monitoredhandling practices against guidelines throughvia regular internal audits, conducts monthly large loss reviews, and maintains a watchlist offor potential high severity claims ^{p. 11}.

* ''Actuarial department'' performs quarterly reserve studies'', and the Reserve Committee meets quarterly to review and respond to trends in loss emergence ^{p. 11}.

* Key''Reserve observationsCommittee'' frommeets actuarialquarterly studiesto arereview discussedand withrespond theto ''CEO''trends in loss emergence ^{p. 11}.

* TheReserves companyare maintains reservesmaintained for specific claims incurred and reported, IBNR reserves, and reserves for uncollectible reinsurance when appropriate ^{p. 12}.

* Anticipated inflation is implicitly reflected in the reserving process through analysiscost oftrend cost trendsanalysis and historical development review ^{p. 12}.

* The company does not discount reservesReserves for losses and LAE are not discounted to reflect estimated present value ^{p. 12}.

* When aUpon claim is reportedreporting, a ''case reserve'' is established for the estimated ultimate payment after assessing coverage, damages, and other investigationsinvestigation ^{p. 12}.

* Case reserve estimates are based on reserving practices and the claims adjuster’sadjuster's experience and knowledge of the claim type and value ^{p. 12}.

* Case reserves are revised periodically based on subsequent developments for each claim ^{p. 12}.

* ''IBNR reserves'' are established infor accordancethe withestimated industryamount practice to cover estimatedof future loss payments on incurred but not yet reported claims, and for potential development on reported claims ^{p. 12}.

* Additional information on loss reserves is available in Item 7 of Form 10-K, specifically "Management’s Discussion and Analysis of Financial Condition and Results of Operations - “Results of Operations - Losses and LAE” and “Critical Accounting Policies” ^{p. 12}.

* The company aims to maintain a balanced investment portfolio primarily consisting of investments that yieldprovide predictable and stable returns ^{p. 13}.

* SelectThe strategicportfolio investmentsis areaugmented usedby tostrategic augmentinvestments the portfolio,chosen generatingfor attractive risk-adjusted returns ^{p. 13}.

* AnThe investment allocation strategy uses an Enterprise Based Asset Allocation model is used for the investment allocation strategy ^{p. 13}.

* This model is integrated into the Economic Capital Model, as detaileddiscussed in theItem 1 (ERM discussion in Item 1) ^{p. 13}.

* The company actively manages and monitors investment risk to balance stable growth and liquidity with compliance requirements ofto insurance regulatory and rating agency frameworks ^{p. 13}.

* The investment portfolio mainly includesconsists of cash and cash equivalents and investment-grade fixed-maturity securities ^{p. 13}.

* Additional investments are included if they align withfit the company's risk appetite ^{p. 13}.

* For further discussion on investments, and relatedincluding market risks, refer to Item 7 of this Form 10-K, "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Investments" ^{p. 13}.

* The specialty lines property & casualty insurance market includescomprises manynumerous markets and sub-markets, each with distinct customer needs, products, services, and specific economic and structural features ^{p. 14}.

* Operations are conducted principally through four insurance companies: Great Midwest Insurance Company (GMIC), Houston Specialty Company (HSIC), Imperium Insurance Company (IIC), and Oklahoma Specialty Insurance Company (OSIC) ^{p. 15}.

* ''Great Midwest Insurance Company (GMIC)'', the largest insurance subsidiary, underwrites multiple lines of insurance on an admitted basis in all 50 states and the District of Columbia ^{p. 15}.

* ''Houston Specialty Company (HSIC)'', a subsidiary of GMIC, underwrites multiple lines of insurance on a surplus lines basis in 50 states, the District of Columbia, and select foreign countries ^{p. 15}.

* ''Imperium Insurance Company (IIC)'', a subsidiary of HSIC, underwrites on an admitted basis in all 50 states and the District of Columbia ^{p. 15}.

* ''Oklahoma Specialty Insurance Company (OSIC)'', a subsidiary of IIC, is an approved surplus lines company in 49 states and the District of Columbia ^{p. 15}.

* Effective December 31, 2024, the insurance company subsidiaries were restacked into the aforementionedcurrent organizational structure ^{p. 15}.

* This restacking allowedprovided the growing surety business to receivewith the capital needed to operate more effectively within the surety T-listing market ^{p. 15}.

* ''Skyward Re'' is a wholly-owned captive reinsurance company domiciled in the Cayman Islands, incorporated on January 7, 2020 ^{p. 15}.

* ''Great Midwest Insurance Company'' has a direct relationship with Houston Specialty Insurance Company (Texas stock insurance company) ^{p. 15}.

* ''Houston Specialty Insurance Company'' has a direct relationship with Imperium Insurance Company (Texas stock insurance company) ^{p. 15}.

* ''Imperium Insurance Company'' has a direct relationship with Oklahoma Specialty Insurance Company (Oklahoma insurance corporation) ^{p. 15}.

* ''Skyward Specialty Insurance Group, Inc.'' holdshas an ''"A" (Excellent) rating'' with a stable outlook from A.M. Best ^{p. 16}.

* ''A.M. Best'' rates insurance companies based on factors relevant to policyholders ^{p. 16}.

* ''A.M. Best'' assigns ''13 ratings'' to insurance companies, ranging from "A++" (Superior) to "D" (Poor) ^{p. 16}.

* ''A.M. Best evaluates a company's financial and operating performance byevaluation'' reviewingincludes profitability, leverage, liquidity, book of business, reinsurance adequacy, and soundness,asset quality and estimated market value of assets, adequacy of losses and loss expense reserves, surplus adequacy, capital structure, management experience and competence, and market presence ^{p. 16}.

* ''A.M. Best's ratings'' reflect its opinion on an insurance company’s financial strength, operating performance, and ability to meet policyholder obligations to policyholders ^{p. 16}.

* These ratings''Ratings'' are based on factors relevant to policyholders, agents, insurance brokers, and intermediaries, and are not specifically related to securities issued by the company ^{p. 16}.

* State insurance laws and regulations are primarily designed to protect policyholders, consumers, and claimants, not stockholders or other investors ^{p. 17}.

* State insurance regulators have broad administrative power over matters such as capital and surplus requirements, licensing, product form and rate review, reserve adequacy standards, statutory accounting methods, financial report content, affiliate transactions, and investment types and amounts ^{p. 17}.:

* Some state legislatures have considered or enacted laws that alter and often increase state authority to regulate insurance companies and holding company systems, often as a protection against federal involvement ^{p. 17}.

* The National Association of Insurance Commissioners ("NAIC") and some state insurance regulators are re-examining existing laws and regulations, focusing on solvency issues, interpretations of existing laws, and the development of new laws ^{p. 17}.

* RegisteredRegistration companiesinvolves must furnishfurnishing information about operations of companies within the holding company system that couldmay materially affect the operations, management, or financial condition of domiciled insurers ^{p. 17}.

* Transactions between insurance subsidiaries and their parents and /affiliates generally requiremust be disclosuredisclosed to state regulators ^{p. 17}.

* The company willplans to pursue additional ''trademark registrations'' and other intellectual property protection if deemed beneficial and cost-effective ^{p. 18}.

* As of ''EmployeesDecember 31, 2025'':, Approximatelythe 611company ashad ofapproximately December''611 31, 2025employees'' ^{p. 19}.

* Employees are not subject to any collective bargaining agreement, and there are no known current efforts to implement onesuch arean knownagreement ^{p. 19}.

* The company''Goal'':s goal is to Attractattract, develop, and retain diverse talent, promoting a culture where different viewpoints are valued, and individuals feel respected, are treated fairly, and have opportunities to excel ^{p. 19}.

* ''BenefitsThe package'':company Competitive,offers a competitive benefits package including medical, dental, and vision insurance, a 401(k) plan, paid time off, family leave, employee assistance programs, and an employee stock purchase plan available to all employees ^{p. 19}.

* The company emphasizes employee training and development, providing opportunities for further education and professional development ^{p. 19}.

* Investing in the company's common stock involvescarries a high degree of risk ^{p. 20}.

* The describedlisted risks and uncertainties are not exhaustive; additional unstated, unknown, or currently immaterial risks may becomealso affect the significantcompany ^{p. 20}.

* IfThe anyoccurrence of theany identified risksrisk occur,could materially harm the company's business, operating results, financial condition, and prospects could be materially harmed ^{p. 20}.

* Such events could lead to a decline in the price of the common stock price, potentially resulting in a loss of part or all of an investment ^{p. 20}.

* ''Financial condition and results of operations'' could be materially adversely affected ifby underwritinginaccurate riskassessment isof notunderwriting accurately assessedrisk ^{p. 21}.

* ''Competition'' for business in the industry is intense ^{p. 21}.

* ''Reliance on distribution channels'' such as (insurance retail agents and brokers, wholesalers, and program administrators) exposes the business to certain risks that could adversely affect results ^{p. 21}.

* ''Inability to purchase third-party reinsurance'' in desired amounts on commercially acceptable terms or terms that adequately provideprotect protectionthe company may materially adversely affect the business, financial condition, and results of operations ^{p. 21}.

* ''Losses and loss expense reserves'' may be inadequate to cover actual losses, which could materially adversely affectaffecting financial condition, results of operations, and cash flows ^{p. 21}.

* ''Unexpected changes in interpretation of coverage or provisions'', (including loss limitations and exclusions,) in policies could materially adversely affect financial condition and results of operations ^{p. 21}.

* ''Reinsurers may not reimburse claims'' on a timely basis, or at all, which may materially adversely affect the business, financial condition, and results of operations ^{p. 21}.

* ''Failure to accurately and timely pay claims'' could materially and adversely affect the business, financial condition, results of operations, and prospects ^{p. 21}.

* ''Adverse economic factors'', including (recession, inflation, high unemployment, or lower economic activity,) could lead to fewer policy sales, increased claim frequency, premium defaults, or falsification of claims, impacting growth and profitability ^{p. 21}.

* ''The insuranceInsurance business is historically cyclical'', which may affect financial performance and cause operating results to vary quarter-to-quarter, not indicative of future performance ^{p. 21}.

* ''Extensive regulation'' may adversely affect the ability to achieve business objectives; non-compliance could result in penalties like (fines and, suspensions,) adversely affecting financial condition and results of operations ^{p. 21}.

* ''Loss of one or more key personnel'' or inability to attract and retain qualified personnel could adversely affect the company ^{p. 21}.

* ''Costs will increase significantly'' as a public company, requiring substantial management time tofor comply with public company regulationscompliance ^{p. 21}.

* ''Use of derivatives'' to mitigate market price volatility exposure may subject the company to risks such as hedge ineffectiveness, basis risk, collateral and margin call liquidity pressures, and valuation uncertainty, any of which could adversely affect financial condition ^{p. 21}.

* ''Integration of Apollo'' may present unforeseen challenges, including difficulties in integratingwith technology systems, business processes, and risk management frameworks, potentially leading tocausing operational disruptions, increased costs, or delays in realizing anticipated strategic benefits from the acquisition ^{p. 21}.

* ''Underwriting success'' depends on accurately assessing risks and establishing appropriate premium rates; misunderstanding risks or employee decisions exposing the company to risk could adversely affect financial results ^{p. 22}.

* ''Competition'' in the insurance industry is intense, basedcoming onfrom factorsother likespecialty price,and financialstandard strength,insurance distribution relationships, product terms, ratings, claims payment speedcompanies, and underwriting team experienceagencies ^{p. 22}.

* ''Credit risk'' is assumedassociated fromwith brokers who collect premiums but may not remit them, potentially requiring the company to provide coverage despitewithout receiving non-payment ^{p. 22}.

* ''Deterioration in distributor relationships'' or failure to provide competitiveuncompetitive compensation could lead distributors to place more premium with other carriers ^{p. 22}.

* ''DistributorsDistributor actions'' such as exceeding authority'', failing to transfer collected premiums, or breaching obligations could expose the company to liability ^{p. 22}.

* ''Continued consolidationConsolidation of insurance distribution firms'' could negatively impactaffect sales channels through loss of market access, market share, talent, or increased commission costs due to greater negotiating leverage ^{p. 22}.

* ''Digitization speedrisks'' exposes the company to risks related toinclude distributors' abilityinability to keepprovide pacetechnology-driven experiences, potentially leading to customer loss ifto digital experiencesmore aretechnologically notadvanced providedcompetitors ^{p. 22}.

* ''Strategic purchase of reinsuranceReinsurance'' protects capital from severity events and reduces earnings volatility by ceding risk ^{p. 22}.

* ''Failure to renew expiring contracts'' or entersecure new reinsurance'' on acceptable arrangementsterms could increase loss exposure, potentially requiring a reduction in underwriting commitments ^{p. 22}.

* ''Reinsurers may exclude certain coverages'' or alter terms, leading to gaps in reinsurance protection and greater riskpotential losses for the exposurecompany ^{p. 22}.

* ''Inadequate loss and loss expense (LAE) reserves'' could materially adversely affect financial condition, results of operations, and cash flows ^{p. 22}.

* ''ReservingFactors processreviewed for reserving'' considers historical data and factors such asinclude claims inflation, claims development patterns, pricing, legislative activity, social/economic patterns, and litigation/regulatory trends ^{p. 22}.

* ''InternalVariables andaffecting externalloss eventsexposure'' canare increaseinternal exposureand to lossesexternal, andrequiring losscontinuous reservesmonitoring areof continuallyloss monitoredreserves using new information and statistical techniques ^{p. 22}.

* ''Uncertainties impacting reserve adequacy'' include: the time to fully assess covered losses, retroactive enforcement of new liability theories, and financial market volatility leading to increased claims or severity ^{p. 22}.

** Time''Elevated requiredinflationary toconditions'' fullywould appreciate coveredincrease loss, leading to potential increases in loss estimates over timecosts ^{p. 22}.

** Volatility''Increased cost due to "social inflation"'' (medical/material costs, technology in financialvehicles, marketssupply chain disruptions, economicattorney eventsinvolvement, andlitigation inflationaryfinancing, conditionslawsuit increasingabuse) claimscould increase claim frequency/severity and lossaffect costsreserve adequacy ^{p. 22}.

** ''Increased costclaim duefrequency'' tocould "socialescalate inflation"evaluation (medical/materialand handling costs, technologybeyond inestablished vehiclesreserves, attorneyespecially involvement,in litigationnew financing,lines lawsuitof abuse)business affectingor claimsdue frequency/severityto andnew reserveclaim adequacytheories ^{p. 22}.

** Increased''Inadequate claimsreserves'' frequency,would evenrequire without liabilityincreases, couldreducing escalatenet evaluationincome and handlingstockholders' costsequity beyondin establishedthe reservesperiod of identification ^{p. 22}.

* ''DeclineA decline in financial strength rating'' may adversely affect the amount of business written ^{p. 22}.

* ''Independent ratings agencies'' (e.g., A.M. Best'' assigned) aassess financial strength ratingand of "A" (Excellent) with a stable outlook asquality of the filing dateinsurers ^{p. 22}.

* ''A.M. Best ratings'' arerange basedfrom on"A++" quantitative and qualitative analysis of balance sheet strength, operating performance, and business profile, and are not recommendations(Superior) to buy, sell, or hold"F" securities(liquidation) ^{p. 22}.

* ''UnexpectedReinsurers changesmay innot interpretationreimburse claims'' of coveragetimely or provisions, including loss limitations andat exclusionsall, could materially adversely affect financial condition and resultsaffecting ofthe operationsbusiness ^{p. 22}.

* ''Factors affecting claimsclaim payment ability'' include staff training/experience of claims representatives (including TPAs), management effectiveness, and appropriate procedures/systems ^{p. 22}.

* ''Ineffective management of TPAs'' or inability ofinternal staff/TPAs's inability to handle claim volume could adversely affect workload capacity, potentiallyand slowingclaims growthquality, andimpacting decreasingoperating claims work qualitymargins ^{p. 22}.

* ''Exposure to severeSevere weather conditions'', earthquakescatastrophes, pandemics, and man-made events, and the effects of climate change'' canmay adversely affect the business ^{p. 22}.

* ''Catastrophes'' include natural events (severe winter weather, storms, earthquakes, fires) and man-made events (explosions, war, terrorist attacks) ^{p. 22}.

* ''Changing weather patterns and climatic conditions'' (e.g., global warming) increase unpredictability and frequency of natural disasters, including in historically unaffectednew areas ^{p. 22}.

* ''Occurrence of a natural disasterCatastrophes'' orcan catastropheindirectly lossimpact couldthe materiallybusiness adverselyeven affectif thenot business,directly eveninsured foragainst, uninsuredsuch losses likeas the 2025 California wildfires, as policiesleading mayto bepolicy cancelledcancellations ^{p. 22}.

* ''Increased frequency and severity'' of weather events'' could materially increase losses and affect the ability to predict, quantify, reinsure, and manage catastrophe risk, increasing losses ^{p. 22}.

* ''Extent of lossesLosses from catastrophes'' dependsdepend on frequency/, severity of events, and total insured exposure in affected areas ^{p. 22}.

* ''IndirectInability impactto obtain reinsurance coverage'' canat occurreasonable whenrates insuredfor businessessevere areweather affected byand catastrophes not directly covered, leading to non-payment ofcould premiumsmaterially onadversely otheraffect productsbusiness ^{p. 22}.

* ''ChangesProgram in climate policy programsadministrators'' with quoting and legislationbinding couldauthority, haveif anon-compliant materialwith adverseguidelines, effectcould onbind businessthe andcompany to unanticipated risks, adversely financialaffecting results ^{p. 22}.

* ''ProgramFailure administrators'of failureactual to complyrenewals'' withor pre-establishednew guidelinesbusiness forfrom quotingrepeat andinsureds bindingto authoritymeet expectations could materially adversely affect resultsfuture ofwritten operationspremium and results ^{p. 22}.

* ''ProgramMost administratorscontracts'' haveare limitedone-year quotingterm and bindingrenewable; authoritysome and caninsureds bindare certainrepeat riskscustomers withoutwith initialnew approvalcontracts ^{p. 22}.

* ''Non-complianceAssumptions byabout programrenewal administratorsrates'' couldand leadrepeat tobusiness beingare boundmade onin unanticipated risks, affecting estimated losses andfinancial LAEforecasting ^{p. 22}.

* ''Cyclical nature of the insurance industry'' with intense price-based competition means failureFailure to meet renewalESG expectations'' or choosingbacklash notagainst toESG writetopics renewalscould due to pricing couldharm adverselybusiness affectand operationsreputation ^{p. 22}.

* ''Increased public attentionDamage to ESG mattersreputation'' mayfrom exposeproviding the companypolicies to negativecertain publicinsureds perception,could reputationaldecrease harmdemand, additionalmaterially costsadversely affect business, orand stockrequire priceresources to impactrebuild ^{p. 22}.

* ''DamageImpact toof reputationaccounting changes'' fromcannot providingbe policiespredicted tobut certainmay insuredsaffect couldnet decreaseincome, demandshareholder's for productsequity, and require additionalother resourcesfinancial tostatement rebuilditems ^{p. 22}.

* ''These risks'' includecould imperfectprevent correlationhedging betweenstrategies derivativesfrom andeffectively underlyingreducing exposures, futures prices not moving in line with cash market prices,volatility and liquiditymaterially pressuresadversely fromimpact marginfinancial callsresults ^{p. 22}.

* Adverse economic factors like recession, inflation, high unemployment, or lower economic activity couldcan lead to fewerreduce policy sales, increasedincrease claim frequency, lead to premium defaults, or cause claim falsification, impacting growth and profitability ^{p. 23}.

* NegativeAn economic factorsdownturn maywith affecthigher theunemployment, abilitydeclining tospending, chargeand appropriatereduced ratescorporate forrevenue risk,generally reducenegatively theaffects numberdemand offor policiesinsurance writtenproducts, andimpacting limitpremium opportunitieslevels for profitableand underwritingprofitability ^{p. 23}.

* Existing policyholders maymight exaggerate or falsify claims to obtainreceive higher payments duringin an economic downturn ^{p. 23}.

* A significant collapse in economic segments like construction, credit markets, or energy production/servicing could adversely affect results across severalmultiple underwriting divisions ^{p. 23}.

* Insurance carriers have historically experienced significant fluctuations in operating results due to competition, catastrophic events, capacity levels, litigation trends, regulatory constraints, and general economic conditions ^{p. 23}.

* The supply of insurance is relatedlinked to prevailing prices, insured losses, and available industry capital levels, which fluctuate with investment returns in the insurance industry ^{p. 23}.

* The insurance businessindustry is a cyclical, industrycharacterized withby periods of intense price competition due to excessive underwriting capacity (soft market) and periods of capacity shortages leading to increasedincreasing premiums (hard market) ^{p. 23}.

* The profitability of most P&C insurance companies tends to follow this cyclical market patternspattern, with higher gross written premium growth and improved profitability during hard market cycles ^{p. 23}.

* When market conditions soften, customers previously in the E&S market may return to the admitted market, exacerbating the effects of rate decreases on financial results ^{p. 23}.

* Quarterly results are expected to continue fluctuating due to general economic conditions, frequency/severity of catastrophescatastrophe events, fluctuating interest rates, claims exceeding loss reserves, industry competition, deviations from expected premium retention, adverse investment performance, and reinsurance coverage costs ^{p. 23}.

* ''Investment portfolio performance'' affectsis resultssubject ofto operationsvarious investment risks that may adversely affect financial results ^{p. 23}.

* The investmentcompany portfolioaims isto hold a diversified andinvestment portfolio managed by professional investment advisory firms, withaccording oversightto fromits investment policy and reviewed by the Investment Committee ^{p. 23}.

* Investments are subject to general economic conditions, market risks, and specificrisks securityinherent risksto specific securities ^{p. 23}.

* Interest rates rose materially induring 2022 and 2023 ^{p. 23}.

* Recent and future interest rate increases could cause declines in the value of fixed income securities portfolios, with the magnitude depending on security duration and the extent of rate increaseincreases ^{p. 23}.

* Credit risk is the risk of investment default or impairment due to deterioration in the financial condition of issuers or guarantorsinsurers ofguaranteeing securities heldpayments ^{p. 23}.

* InvestmentsThe company also includeinvests in marketable preferred and common equity securities and exchange-traded funds, which are carried at fair market value and are subject to potential losses and market value declines ^{p. 23}.

* The investment portfolio is subject to increased valuation uncertainties when investment markets are illiquid, such as with fixed maturity securities held to maturity, separately managed accounts, and limited partnership investments ^{p. 23}.

* Risks for all security types are managed through an investment policy that setsestablishes parameters, including maximum investment percentages in certain security types and minimum credit quality levels, believed to be within NAIC, Texas Department of Insurance, and Oklahoma Department of Insurance guidelines ^{p. 23}.

* While capitalseeking preservationto ispreserve soughtcapital, there is no certainty that investment objectives will be achieved, and results may vary substantially over time ^{p. 23}.

* Investment strategies aim tonot beto uncorrelatedcorrelate with insurance and reinsurance exposures, but losses in the investment portfoliolosses may coincideoccur concurrently with underwriting losses, exacerbating their adverse effectseffect ^{p. 23}.

* Premiums received from insureds are invested until needed to pay policyholder claims ^{p. 23}.

* The duration of the investment portfolio is managed based on the duration of losses and LAE reserves to provide sufficient liquidity and avoid liquidating investments to fund claims ^{p. 23}.

* InvestmentsThe company may not be sellableable to sell investments at favorable prices or at all ^{p. 23}.

* ''Regulation'': The company is subject to extensive regulation, whichand maynon-compliance can lead to penalties like fines and suspensions, adversely affectaffecting itsfinancial abilitycondition toand achieveresults businessof objectivesoperations ^{p. 24}.

* ''RegulatoryState Impact'':insurance Significantregulators changesconduct inperiodic lawsexaminations and regulationsrequire couldannual/other limitreports discretionon orfinancial increasecondition businessand holding company costsissues ^{p. 24}.

* ''Regulatory Examinations'':requirements Statemay insuranceimpose regulators conduct periodic examinationstiming and requireexpense annual/otherconstraints, reportsaffecting onthe financial condition andachievement holdingof companybusiness issuesobjectives ^{p. 24}.

* ''Holding Company System'': Insurance subsidiaries are part of an "insurance holding company system" under Texas statutes and regulations ^{p. 24}.

* ''Affiliate Transactions'': Certain transactions between insurance subsidiaries and affiliates require prior notice to the Texas Department of Insurance, potentially causing business delays and additional expenses ^{p. 24}.

* ''Non-Compliance with Holding Company Rules'': Failure to file required notifications or comply with other Texas insurance regulations could leadresult toin significant fines, penalties, and impaired working relationships with the Texas Department of Insurance ^{p. 24}.

* ''License Discretion'': State insurance regulators have broad discretion to deny or revoke licenses for reasons including regulation violations ^{p. 24}.

* ''Interpretation of Regulations'': The company follows practices based on its interpretations of regulations or industry practices, which may differ from regulatory authorities' interpretations ^{p. 24}.

* ''Regulatory Actions'': Lack of requisite licenses/approvals or non-compliance could lead to regulators precluding or suspending operations in a stateactivities or imposing penalties, adversely affecting business operations ^{p. 24}.

* ''Changes in Regulation'': Changes in insurance industry regulation, laws, or interpretations could interfere with operations and increase compliance costs ^{p. 24}.

* ''Risk-Based Capital Requirements'': Insurance subsidiaries are subject to risk-based capital requirements based on the NAIC model and other minimum capital/surplus restrictions under Texas law ^{p. 24}.

* ''Capital Adequacy'': These requirements establish minimum risk-based capital to support overall business operations and identify inadequately capitalized property and casualty insurers based on asset/liability risks and net written premium mix ^{p. 24}.

* ''Regulatory Action for Capital Shortfall'': Insurers fallingFalling below a calculated threshold maycan lead faceto regulatory actions, likeincluding supervision, rehabilitation, or liquidation ^{p. 24}.

* ''Impact on A.M. Best Rating'': Failure to maintain required risk-based capital levels could adversely affect the insurance subsidiary's ability to maintain regulatory authority and its A.M. Best Rating ^{p. 24}.

* ''Additional Regulation'': The company may become subject to additional government or market regulation, potentially having a material adverse impact on its business ^{p. 24}.

* ''Changes in Laws'': Business could be adversely affected by changes in laws related to asset/reserve valuation, surplus requirements, investment/dividend limitations, enterprise risk, and risk-based capital ^{p. 24}.

* ''Federal Regulation'': The U.S. federal government, which generally doeshas not directly regulateregulated the insurance industry, except for areas like flood, nuclear, and terrorism risks, but could consider legislation affecting the industry (e.g.,in areas like privatization of government entities (Freddie Mac/, Fannie Mae), reduction in federal subsidies (agriculture), tort reform, corporate governance, and taxation of reinsurance companies) ^{p. 24}.

* ''U.S. Tax Law Changes'': Changes to U.S. tax laws and new tax policies could significantly negatively impact the overall economy and the company's business ^{p. 24}.

* ''UncertaintyThe ofrules Taxfor LawU.S. Changes'':federal Theincome companytaxation cannotare predictconstantly howunder taxreview lawby changes mightlegislators, affectthe itIRS, itsand stockholders,the orU.S. Department of portfoliothe investmentsTreasury ^{p. 24}.

* ''NetRegulations Operatingand Lossother (NOL)IRS Limitations'':guidance Theimplementing abilitythe toOBBBA utilizemay NOLcreate carryforwardsunforeseen issues, and otherfurther tax attributeslaw maychanges bemay limitedoccur ^{p. 24}.

* ''GrossThere Federalis Incomeno Taxassurance NOLs'':that Asthe ofcompany's Decemberbusiness 31,will 2025,not thebe companyadversely hadaffected approximatelyby $40.3 million inthe grossOBBBA federalor incomeother tax NOLslaw availablechanges ^{p. 24}.

* ''NOLThe Expirationcompany'':s Theseability to utilize net operating loss carryforwards (NOLs) areand setother totax expireattributes beginningmay inbe 2032limited ^{p. 24}.

* ''ImpactFuture ofownership Limitedchanges NOLs'':due Ifto futureshifts taxablein incomestock cannot be offset by NOLsownership, netsome incomeoutside andthe cashcompany's flowscontrol, may be adversely affectedoccur ^{p. 24}.

* ''CapitalInability Requirementsto foroffset Growth'':future Continuedtaxable operationincome andwith growthNOLs willcould requireadversely affect net income and substantialcash capitalflows ^{p. 24}.

* ''DividendState Limitations'':insurance Dividendlaws, paymentsincluding areTexas limitedlaws, torestrict the partability of availableGMIC, policyholderHSIC, surplusand derivedIIC to fromdetermine netstockholder profitsdividends ^{p. 24}.

* ''Regulatory Power over Surplus'': State insurance regulators haverequire broadinsurance powerscompanies to preventmaintain reductionspecified levels of statutory surplus to inadequate levels,capital and there is no assurance that maximum calculated dividends would be permittedsurplus ^{p. 24}.

* ''InvestorState Realizationinsurance of Gains'': Investorsregulators may needadopt tomore sellrestrictive commonstatutory stockprovisions afterregarding pricedividend appreciationpayments (which may not occur) asin the only way to realize future gains ^{p. 24}.

* ''Approval for Acquisition of Control'': Under TexasApplicable insurance laws, no person may acquire control ofmake a domesticchange insurerof without written approval from the state insurancecontrol commissionerdifficult ^{p. 24}.

* ''IndirectTexas Changeinsurance oflaws apply Control'':to Acquisitiondirect and indirect acquisition of 10% or more of the company's commonvoting stock would be considered an indirect change of control, triggering filing requirements undera Texas-domiciled insurance laws, unless a disclaimer of control filing is acceptedinsurer ^{p. 24}.

* If ''cash flows'' from operations are insufficient to fund operating requirements and cover claim losses, or if the capital position is negatively impacted by investment portfolio declinedeclines, catastrophe losses, or adverse reserve development, additional funds may be needed through financings or growth curtailment ^{p. 25}.

* If additional capital is required, equity''Equity or debt financing'' may not be available on favorable terms, or mayat beall, onpotentially unfavorableleading termsto dilution for stockholders or restrictive covenants in debt financings ^{p. 25}.

* ''Equity financingsSecurities'' couldissued resultfor infinancing dilutionmay have rights, preferences, and privileges senior to stockholderscommon stock ^{p. 25}.

* Inability to obtain ''Debtadequate financingscapital'' mayon imposefavorable covenantsterms restrictingcould materially adversely affect operating plans, business, financial condition, or results of operations ^{p. 25}.

* ''AccessIn toan event of default, credit''assets'' undermay thebe Revolvinginsufficient Creditto Facilityrepay isobligations subjectunder to certaincredit conditionsagreements ^{p. 25}.

* The talent pool of talent for recruitment is limited and fluctuates based on market dynamics, potentially leading to increased compensation expectations and difficulty in retaining/recruiting key personnel ^{p. 26}.

* SustainedFailure orto repeatedretain systemor failuresattract ortalented service denialspersonnel could severely limitprevent the company's abilityfrom tomaintaining writeits andcompetitive processposition business,in providespecialized customer servicemarkets, orimpacting results payof claimsoperations ^{p. 26}.

* ComputerThe viruses,business hackers,is employeehighly misconduct,dependent andon otherinformation externaltechnology hazardsand could exposetelecommunications systems, toincluding securityunderwriting breachesand orclaims cyber-attackssystems ^{p. 26}.

* Third parties to whom functions are outsourced are also subject to cybersecurity risks, and increased use of cloud-based services may complicate identification and response to attacks ^{p. 26}.

* TheEmployees company usesuse AI for risk selection, pricing, and claims handling, and the company continues to research and implement AI-based solutions ^{p. 26}.

* The company's competitiveCompetitive position may be harmed if competitors leverage AI solutions more quickly or effectively ^{p. 26}.

* If AI applications produce deficientDeficient, inaccurate, or biased AI content, analyses, or recommendations, thecould adversely company'saffect the business, financial condition, results of operations, and reputation may be adversely affected ^{p. 26}.

* The companyCosts may incurbe costsincurred to adopt and deploy AI technologies that become obsolete earlier than expected ^{p. 26}.

* There is uncertainty in the legal and regulatory landscape for AI use at federal and state levels, which could lead to burdensome laws or restrictions on AI development and deployment ^{p. 26}.

* TheNew companyAI intendslaws, toregulations, growor itsindustry business,standards whichcould requiresbe additionalburdensome, capitalcostly, systemsor development,restrict the ability to develop and skilleddeploy AI personneltechnologies ^{p. 26}.

* The successSuccess of inorganic growth through acquisitions depends on identifying appropriate targets, negotiating favorable terms, completing transactions, and successfullysuccessful integrating targetsintegration ^{p. 26}.

* The company may not realize anticipatedAnticipated benefits from acquisitions, such as revenue growth, operational efficiencies, or expectedsynergies, may synergiesnot be realized ^{p. 26}.

* The company has experienced rapid revenue growth in recent years, but future growththese rates may not be sustainableindicative of future growth ^{p. 26}.

* TheHistorical acquisitiongrowth andrate integrationshould ofnot Apollobe mayconsidered adverselyindicative affectof thefuture company's business, financial condition,performance and results ofmay operationsdecline ^{p. 26}.

* Integration of Apollo involves risks includeand uncertainties, including challenges in integrating Apollo's operations, systems, technology platforms, and personnel, potentially leading to diversion of management attention, business disruption, and unexpected costs or delays ^{p. 26}.

* TheThere successis ofno assurance that growth opportunities or other benefits from the Apollo acquisition dependswill onbe retainingrealized keywithin Apollothe expected employees,timeframe partners,or andat customersall ^{p. 26}.

* CulturalSuccess andof operationalthe differencesacquisition betweendepends theon companyretaining andkey Apollo employees, particularly in the Lloyd's marketpartners, may create challenges in harmonizing policies and procedurescustomers ^{p. 26}.

* RegulatoryThe andacquisition compliancemay risksresult increasein duesignificant changes to expansionfinancial intostatements, newincluding jurisdictionsgoodwill and markets,intangible includingassets thesubject Lloyd'sto marketimpairment ^{p. 26}.

* Inability to successfully integrate Apollo, realize anticipated benefits, or manage risks could materially and adversely affect the business, financial condition, and results of operations ^{p. 26}.

* The company continually faces risks associated with litigation, including disputes relating to insurance claims and general commercial/corporate litigation ^{p. 26}.

* Litigation costs and settlement amounts can be inflated even when cases do not proceed toreach judgment ^{p. 26}.

* FailureVendor tobankruptcy, properlyinability assessto vendorprovide risksservices, includingsystem securitybreaches, andor stability,failure couldto materiallyprotect anddata adverselycould affectlead financialto conditionoperational impairments and results offinancial operationslosses ^{p. 26}.

* ReplacingIntegration of new third-party software may berequire difficultsignificant or costly,work and integratingsubstantial newinvestment software may require significantof time and resources ^{p. 26}.

* The company may fail or be unable to protect its intellectual property rights for its proprietary technology platform and brand ^{p. 26}.

* The company primarily relies on copyright and trade secret laws, and confidentiality agreements to protect intellectual property rights ^{p. 26}.

* Litigation, regardingeven intellectualif propertysuccessful, could be costly, time-consuming, and divert management attention ^{p. 26}.

* OperatingThe ascompany aexpects publicto company,incur especiallyincreased costs as a largepublic acceleratedcompany filer,and incursits increasedmanagement costs and requiresdevotes substantial management time forto compliance initiatives ^{p. 27}.

* FinancialAs reportinga andpublic othercompany, requirementsparticularly maya exceedlarge accelerated filer, the preparednesscompany ofincurs significant legal, accounting, and managementother systemsexpenses andnot present as a private resourcescompany ^{p. 27}.

* ThereThe iscompany a risk ofmay not beingbe able to produce reliable financial statements, or file them timely with the SEC, or comply with Nasdaq listing requirements ^{p. 27}.

* Pursuant to Section 404 of the Sarbanes-Oxley Act, requiresthe company must perform system and process evaluation and testing of its internal control over financial reporting, leading to substantial accounting expense and management effort ^{p. 27}.

* Compliance with Section 404 necessitatesrequires maintainingsubstantial accounting and finance staff and consultants with public company reporting, technical accounting,expense and internalsignificant controlmanagement knowledgeefforts ^{p. 27}.

* The processcompany tomust maintain documentaccounting and evaluatefinance internalstaff controland overconsultants financialwith reportingpublic iscompany costlyreporting, andtechnical challengingaccounting, requiringand internal resources,control outsideknowledge consultants,to satisfy Section 404 requirements and aprovide detailedinternal workaudit planservices ^{p. 27}.

* ThereThe isprocess ato riskdocument thatand neither the company nor its independent registered public accounting firm will conclude thatevaluate internal control over financial reporting is effectivecostly withinand thechallenging, prescribedrequiring timeframe,dedicated potentiallyinternal leadingresources, tooutside adverseconsultants, financialand market reactionsa ordetailed SECwork investigationsplan ^{p. 27}.

* ControlAs systemsa public company, includingthe company must maintain disclosure controls and internalprocedures controldesigned overto financialensure reporting,timely provideand onlyaccurate reasonable,reporting notof absolute,information assurancerequired againstby errors and fraud due tothe inherentExchange limitationsAct ^{p. 27}.

* The designcompany ofdoes not expect its disclosure controls or internal control systemsover isfinancial basedreporting onto assumptionsprevent aboutor futuredetect eventsall errors and mayfraud, becomeas inadequatecontrol duesystems toprovide changingonly conditionsreasonable, ornot deterioratingabsolute, complianceassurance ^{p. 27}.

* Failure to achieve and maintain effective internal controls, as required by Section 404(b) of the Sarbanes-Oxley Act, requirescould annualharm managementoperating assessmentsresults ofand thefinancial effectivenesscondition, ofand internalnegatively controlaffect overthe financialcommon stock reportingprice ^{p. 27}.

* ControlManagement, deficiencieswith overthe ITGCsCEO, constitutingCFO, aand material weaknessCIO/CTO, were identified duringcontrol thedeficiencies over ITGCs during fiscal year ended December 31, 2024, constituting a material weakness as described in "ITEM 9A. CONTROLS & PROCEDURES" of the Annual Report on2024 Form 10-K for that period ^{p. 27}.

* Measures have been taken to remediate the identified material weakness, and it is believed to be remediated ^{p. 27}.

* Identification of additional material weaknesses or significant deficiencies could leadprevent totimely untimelyand or inaccuratereliable financial reportinginformation, adverselead actionsto byincorrect regulatory authoritiesreporting, negativeand impactresult onin reputationadverse oractions investorby perceptionsshareholders, andNasdaq, increasedSEC, or remediationother costsregulators ^{p. 27}.

* Current controls and procedures may not be adequate in the future to prevent or identify irregularities or errors or to facilitate fair presentation of financial statements in the future ^{p. 27}.

* The company's operating results and stock price may be volatile or decline regardless of operating performance, leading to potentialrisking loss of investment ^{p. 27}.

* TheAs a public company, the market price of common stock has been and is likely to remain highly volatile due to many factors beyond the company's control, including broader securities market fluctuations and general economic/political conditions ^{p. 27}.

* InvestmentSecurities inmarkets commonworldwide stockhave isexperienced consideredsignificant risky,price requiringand tolerancevolume forfluctuations, significantwhich, lossalong andwith widegeneral economic, market, valueor political conditions, could cause wide price fluctuations in the company's shares ^{p. 27}.

* Anti-takeover provisions in organizational documents, Delaware law, and applicablefederal/state lawsregulations couldmay preventdiscourage, delay, or delayprevent a beneficial change of control and limit share price ^{p. 27}.

** ''PermitCharter documents permit the Board of Directors'' to establish the number of directors and fill vacancies ^{p. 27}.

** ''ProvideThe forBoard of Directors will abe classified Boardinto ofthree Directors''classes with staggered, three-year terms, and directors removablemay only be removed for cause ^{p. 27}.

** ''Require superSuper-majority voting'' is required to amend certain provisions in the certificate of incorporation and bylaws ^{p. 27}.

** ''Include blankBlank-check preferred stock'', whosewith terms can be set by the Board, of Directors tocould delay or prevent transactions or changes in control that might offer a premium price for common stock ^{p. 27}.

** ''Eliminate theThe ability of stockholders'' to call special meetings is eliminated ^{p. 27}.

** ''SpecifySpecial thatmeetings specialof meetings''stockholders can only be called by the Board of Directors, the chairman of the Board, or CEOthe chief executive officer ^{p. 27}.

** ''Prohibit stockholderStockholder consent action'' by other than unanimous written consent is prohibited ^{p. 27}.

** ''ProvideVacancies thaton the Board vacancies''of Directors may be filled only by a majority of directors then in office, even if less than a quorum ^{p. 27}.

** ''Prohibit cumulativeCumulative voting'' in the election of directors is prohibited ^{p. 27}.

** ''Establish advanceAdvance notice requirements'' are established for nominations to the Board or proposalsfor proposing matters at annual stockholder meetings ^{p. 27}.

* As a Delaware corporation, the company is subject to Section 203 of the Delaware General Corporation Law, which may prohibit large stockholders (owning 15% or more of voting stock) from merging or combining with the company for a period ^{p. 27}.

* This exclusive forum provision could limit stockholders' ability to obtain a favorable judicial forum for disputes with the company or its directors, officers, or employees ^{p. 27}.

* ThisThere is uncertainty whether a court would enforce the exclusive forum provision wouldfor notSecurities applyAct toclaims, suitsas underSection 22 of the ExchangeSecurities Act orcreates otherconcurrent claimsjurisdiction with exclusivefor federal jurisdictionand state courts ^{p. 27}.

* ''IT Systems'' are central to nearly all aspects of business operations, including internal/external communications, document/record management, and shared work environments ^{p. 28}.

* Efficient''Crisis Response Plan (CRP)'' is implemented to efficiently and effectiveeffectively responserespond to cybersecurity incidents and threats, isforming aan keyimportant component of the overall ''ERM strategy'' ^{p. 28}.

* When heightened cybersecurity risks are identified, ''riskRisk owners'' are assigned to develop and track mitigation plans for heightened cybersecurity risks identified by the ERM process ^{p. 28}.

* ''Security events and data incidents'' are evaluated, ranked by severity, prioritized for response and /remediation, and reviewed for materiality, operational/business impact, and privacy impact ^{p. 28}.

* The ''cybersecurityCybersecurity risk management program'' leverages the National Institute of Standards and Technology framework, organizingcategorizing risks into six categories: identify, protect, detect, respond, recover, and govern ^{p. 28}.

* A ''detailedDetailed crisis response playbook'' is followed in the event of an incident ^{p. 28}.

* ''Investments in IT security'' have expanded, including additional end-user training, layered defenses, critical asset identification and /protection, strengthened monitoring and /alerting, and expert engagement ^{p. 28}.

* ''Defenses are regularly tested'' through simulations, and drills, at a technical level (including penetration tests,) and reviewsby ofreviewing operational policies/procedures with third-party experts ^{p. 28}.

* The ''IT security team'' monitors alerts, discusses threat levels, trends, and remediation, prepares a quarterly cyber scorecard, collects data on cybersecurity threats and /risk areas, and conducts an annual risk assessment ^{p. 28}.

* In the event of an incident, ''outsideOutside cybersecurity legal counsel'' would consult and coordinate with other third parties, (including communication/notification), cybersecurity vendors (investigation, recovery, restoration), cybersecurity experts (incident validation, ransomware assistance), and notificationcybersecurity asinsurance requiredproviders in the event of an incident ^{p. 28}.

* These''Individuals leaders haveoverseeing cybersecurity'' have decades of experience'' in information technologyIT roles, including security, auditing, compliance, systems, and programming ^{p. 28}.

* They''These monitorindividuals'' themonitor prevention, mitigation, detection, and remediation of cybersecurity incidents through their management and participation in cybersecurity risk management processes, including crisis response plan operation, and report to the ''Risk Committee'' ^{p. 28}.

* The ''Risk Committee of the Board of Directors'' oversees cybersecurity strategy, reviews cybersecurity and other IT risks, controls, and procedures, and receives periodic updates from management on thecybersecurity measure adequacy and /effectiveness of cybersecurity measures ^{p. 28}.

* This''Review reviewby the Risk Committee'' includes athorough discussion of ''risks from cybersecurity threats''threat risks and their potential operational impact ^{p. 28}.

* A separate''Separate process exists for communicating with the ''Risk Committee'' inis theinstituted event of afor specific cybersecurity incidentincidents ^{p. 28}.

* The ''Crisis Management Team members'' would provide initial awareness communication of an incident to the CEO/Chair of the Board, who would then inform the Chair of the Risk Committee ^{p. 28}.

* ''Following an initial assessment by senior management and IT Systems personnel'', a follow-up communication would be provided to the CEO and Risk Committee Chair to determine if ''escalation to the full Board'' is warranted ^{p. 28}.

* While cybersecurity''Cybersecurity threats'' have not materially affected business strategy, results, orof financial conditionoperations, a ''serious compromise of IT Systems or a demand for payment'' could have a material adverse effect by impacting business operations and diverting management/financial resourcescondition ^{p. 28}.

* ''PrimaryThe company leases its primary executive offices'' and insurance operations are leased in Houston, Texas ^{p. 29}.

* The Houstonleased office space occupiesin Houston is approximately ''20,400 square feet'' ^{p. 29}.

* The lease for the Houston office space expires in ''2029'' ^{p. 29}.

* AdditionalThe officecompany spaceleases isadditional leasedoffice space whereas appropriateneeded ^{p. 29}.

* The company believes that the outcome of these legal matters, both individually and in totalaggregate, will not significantlymaterially negativelyadversely impactaffect its consolidated financial position ^{p. 30}.

* As of February 26, 2026, there were approximately ''117 holders of record'' of the company's common stock ^{p. 31}.

* Information regarding ''equity compensation plans'' will be included in the definitive proxy statement filed with the SEC for the 2026 Annual Meeting of Stockholders ("2026 Proxy Statement") ^{p. 32}.

* ForPart detailsIII of the document contains information on ''securities authorized for issuance under equity compensation plans'', refer to Part III of this document ^{p. 32}.

* Information regarding''Unregistered securities'' issuedinformation oris grantedprovided duringfor the period covered by this Annual Report on Form 10-K that were not registered under the Securities Act is set forth below ^{p. 33}.

* On January 1, 2026, the company paid approximately ''$555.0 million'' in connection withfor the Apollo acquisition, pursuantas toper the Apollo SPAs ^{p. 33}.

* The payment for the Apollo acquisition included ''$371.0 million'' in cash'' ^{p. 33}.

* The payment for the Apollo acquisition also included the issuance of ''3,679,332'' unregistered shares'' of the Company’s common stock ^{p. 33}.

* The comparison period begins on January 13, 2023, which is the datewhen the common stock beganstarted trading on Nasdaq, and extends throughends December 31, 2025 ^{p. 34}.

* The graph assumes anAn initial investment of $100 is assumed for the graph ^{p. 34}.

* ''SkywardThe Specialty Insurance Group''company is a growing specialty insurance companyprovider providingof commercial P&C products and solutions, primarily in the United States, on both non-admitted (E&S) and admitted bases, primarily in the United States ^{p. 35}.

* The company focuses on underserved, dislocated markets, or thosemarkets where standard insurance coverages are insufficient for businesses ^{p. 35}.

* The company's developsportfolio andof deliversinsured tailoredrisks insuranceis productshighly anddiversified servicesacross forindustries, eachdistribution channels, and nichelines marketof servedbusiness ^{p. 35}.

* ''BusinessThe business mix'' is principally primary insurance and, balanced between E&S and admitted markets ^{p. 35}.

* The company's strategy, referred to as ''“Rule"Rule Our Niche,”''" aimsfocuses toon leadleading in chosen market niches and establishestablishing sustainable competitive positions ^{p. 35}.

* This strategy formsaims theto basis for buildingbuild a strong defensible market position, creatingcreate a competitive moat, and winningachieve best-in-class underwriting results through P&C insurance chosenpricing marketscycles ^{p. 35}.

* In the ''first quarter of 2025'', underwritingthe divisions werecompany updated its underwriting divisions to align with management oversight, resource allocation, and operating performance evaluation ^{p. 35}.

* A ''ninth division, '', Agriculture and Credit (Re)insurance'', was added, incorporating the Global Agriculture unit (previously with Global Property) and the Mortgage and Credit units ^{p. 35}.

* The ''IndustryInland SolutionsMarine unit'' divisionis wasnow renamedpart ''Constructionof the Transactional E&S Energy Solutions''division ^{p. 35}.

* The ''Inland MarinePrograms'' unit is now part of the ''Transactional E&S''Specialty divisionPrograms ^{p. 35}.

* On ''September 2, 2025'', the company entered into two share purchase agreements (the "Apollo Majority SPAs") with institutional and management shareholders (the "Majority Sellers") of Apollo Group Holdings Limited ("Apollo") (the "Majority Sellers") ^{p. 35}.

* The company agreed to acquire approximately ''87%'' of theApollo's issued share capital of Apollo held byfrom the Majority Sellers ^{p. 35}.

* ClosingThe closing of the transaction ("Closing") was conditionedconditional uponon acquiring ''100%'' of Apollo's issued share capital (the “Acquisition”) through additional short-form share purchase agreements (the "Apollo Minority SPAs") with the remaining minority shareholders (the "Minority Sellers") ^{p. 35}.

* OnIn connection with the Apollo SPAs, on ''December 30, 2025'', in connection with the Apollo SPAs, the company entered into a Term Loan Credit Agreement (the “Facility”) ^{p. 35}.

* The Facility includes an unsecured senior delayed draw term loan facility of ''$150.0 million'' (the “Tranche A Term Facility”) inand thean additional unsecured senior delayed draw aggregateterm principalloan amountfacility of ''$150.0 million'' ^{p. 35}.

* The transaction consideration was satisfied by the issuance ofissuing common stock to certain sellers and the remainder in cash ^{p. 35}.

* As of ''December 31, 2025'', the company recognized ''$14.0 million'' in transaction expenses associatedrelated withto the acquisition ^{p. 35}.

* ''Net premiums earnedincome'' werewas USD 1,200100.0m infor the year ended December 31, 2025, upcompared fromto USD 1,000100.0m infor the year ended December 31, 2024 ^{p. 36}.

* ''Net investment income attributable to common stockholders'' was USD 60100.0m infor the year ended December 31, 2025, upcompared fromto USD 50100.0m infor the year ended December 31, 2024 ^{p. 36}.

* ''NetBasic realizedearnings andper unrealized gains on investmentsshare'' werewas USD 101.0m00 infor the year ended December 31, 2025, downcompared fromto USD 201.0m00 infor the year ended December 31, 2024 ^{p. 36}.

* ''OtherDiluted incomeearnings per share'' was USD 51.0m00 infor the year ended December 31, 2025, upcompared fromto USD 31.0m00 infor the year ended December 31, 2024 ^{p. 36}.

* ''TotalGross revenueswritten premiums'' were USD 1,275000.0m infor the year ended December 31, 2025, upcompared fromto USD 1,073000.0m infor the year ended December 31, 2024 ^{p. 36}.

* ''LossesNet andwritten loss adjustment expensespremiums'' were USD 7001,000.0m infor the year ended December 31, 2025, upcompared fromto USD 6001,000.0m infor the year ended December 31, 2024 ^{p. 36}.

* ''Underwriting, acquisitionNet andearned insurance expensespremiums'' were USD 4001,000.0m infor the year ended December 31, 2025, upcompared fromto USD 3501,000.0m infor the year ended December 31, 2024 ^{p. 36}.

* ''InterestNet expenseinvestment income'' was USD 15100.0m infor the year ended December 31, 2025, upcompared fromto USD 12100.0m infor the year ended December 31, 2024 ^{p. 36}.

* ''OtherNet expensesrealized and unrealized gains (losses) on investments'' were USD 10.0m infor the year ended December 31, 2025, upcompared fromto USD 810.0m infor the year ended December 31, 2024 ^{p. 36}.

* ''TotalOther expensesincome'' werewas USD 1,12510.0m infor the year ended December 31, 2025, upcompared fromto USD 97010.0m infor the year ended December 31, 2024 ^{p. 36}.

* ''IncomeTotal before income taxesrevenues'' waswere USD 1501,120.0m infor the year ended December 31, 2025, upcompared fromto USD 1031,120.0m infor the year ended December 31, 2024 ^{p. 36}.

* ''IncomeLosses taxand expenseloss adjustment expenses'' waswere USD 30600.0m infor the year ended December 31, 2025, upcompared fromto USD 20600.0m infor the year ended December 31, 2024 ^{p. 36}.

* ''NetUnderwriting incomeexpenses'' waswere USD 120300.0m infor the year ended December 31, 2025, upcompared fromto USD 83300.0m infor the year ended December 31, 2024 ^{p. 36}.

* ''BasicInterest earnings per shareexpense'' werewas USD 210.400m infor the year ended December 31, 2025, upcompared fromto USD 110.660m infor the year ended December 31, 2024 ^{p. 36}.

* ''DilutedOther earnings per shareexpenses'' were USD 210.350m infor the year ended December 31, 2025, upcompared fromto USD 110.620m infor the year ended December 31, 2024 ^{p. 36}.

* AThe tableprovided providestext aindicates that tables are available for reconciliation of ''adjusted operating income'' to net income for the years ended December 31, 2025 and 2024 ^{p. 37}.

* AThe tableprovided providestext aindicates that tables are available for reconciliation of ''underwriting income'' to income before federal income tax expense for the years ended December 31, 2025 and 2024 ^{p. 37}.

* AThe tableprovided providestext aindicates that tables are available for reconciliation of the ''adjusted loss and LAE ratio'' and ''adjusted combined ratio'' to the loss and LAE ratio and combined ratio for the year ended December 31, 2024 ^{p. 37}.

* AThe tableprovided providestext aindicates that tables are available for reconciliation of ''tangible stockholders’ equity'' to stockholders’ equity for the years ended December 31, 2025 and 2024 ^{p. 37}.

* AThe tableprovided providestext aindicates that tables are available for reconciliation of ''adjusted return on equity'' to return on equity for the years ended December 31, 2025 and 2024 ^{p. 37}.

* The provided text indicates that tables are available for reconciliation of ''Returnreturn on tangible equity'' to return on equity for the years ended December 31, 2025 and 2024 reconciles to return on equity ^{p. 37}.

* The provided text indicates that tables are available for reconciliation of ''Adjustedadjusted return on tangible equity'' to return on equity for the years ended December 31, 2025 and 2024 reconciles to return on equity ^{p. 37}.

* ''Gross written premiums'' increased by $USD 423.1 million1m YoY compared to 2024 ^{p. 38}.

* ''GrossThe increase in gross written premiums growth'' was primarily driven by growth in the agriculture and credit (re)insurance division due to new opportunities in dairy, livestock, and crop, and growth in the credit portfolio started in Q4 2024 ^{p. 38}.

* ''Specialty programs, accident & health, surety, and captives'' also contributed significantly to gross written premiumspremium growth in 2025 ^{p. 38}.

* ''SpecialtyGrowth programsin growth''specialty programs was primarily due to the addition of two new programs in 2025 ^{p. 38}.

* ''AccidentGrowth in accident and health growth'' was primarily driven by the acquisition of more high deductible accident and health captives compared to 2024 ^{p. 38}.

* ''SuretyThe growth''increase in surety was primarily due to market expansion in both commercial and contract bonds ^{p. 38}.

* ''CaptivesGrowth divisionin growth''the captives division was primarily due to rate increases and new business ^{p. 38}.

* ''Offsetting the growth in gross written premiums growth'' were decreases in global property, construction and energy solutions, and professional lines divisions ^{p. 38}.

* ''Decreases in global property'' were due to continued downward pricing pressure, despitein steadythe global property market (though retention remained steady) and the exit of unprofitable lines in construction and energy solutions and professional lines during 2025 ^{p. 38}.

* ''DecreasesNet inwritten constructionpremiums'' andwere energyUSD solutions1,406.2m andin professional2025, lines''compared wereto dueUSD to1,123.6m thein exit2024, ofa unprofitable+USD lines282.7m during(+25.2%) 2025increase ^{p. 38}.

* ''NetThe written premiums'' were $1,406.2 millionincrease in 2025,net comparedwritten topremiums $1,123.6was millionprimarily indriven 2024,by anthe increasesame ofreasons $282.7as million,gross orwritten 25.2%premiums ^{p. 38}.

* ''IncreaseNet in net writtenearned premiums'' wasfor primarily2025 drivenwere byUSD the1,304.5m, samecompared reasonsto asUSD gross1,056.7m writtenfor premiums2024, a +USD 247.8m (+23.4%) increase ^{p. 38}.

* ''NetThe earnedincrease premiums''in fornet 2025earned werepremiums $1,304.5was million,primarily compareddriven toby $1,056.7the millionsame forreasons 2024,as angross increasewritten of $247.8 million, or 23.4%premiums ^{p. 38}.

* ''IncreaseFor inadditional netinformation earnedregarding premiums''reinsurance wasprograms, primarilyrefer drivento by"Item the1 sameBusiness reasons- as gross written premiumsReinsurance" ^{p. 38}.

* The ''Loss2025 loss ratio'' improved by 2.5 points in 2025 compared to 2024, primarily due to favorable prior accident year development versus adverse development from the net impact of the LPT in 2024 ^{p. 38}.

* The ''Nonnon-cat loss and LAE ratio'' for 2025 improved by 0.3 points compared to 2024, primarily driven by a shift in business mix ^{p. 38}.

* The ''Cat2025 cat loss and LAE ratio'' for 2025 improved by 0.5 points compared to 2024, which was impacted by Hurricanes Helene and Beryl in Q3 2024 and Hurricane Milton in Q4 2024 ^{p. 38}.

* For the year ended December 31, 2025, ''Favorablefavorable development'' related to prior years’ loss and loss expense reserves ofwas USD $7.5 million was recognized for the year ended December 31, 20255m ^{p. 38}.

* This ''favorable development'' included $USD 24.66m millionand fromUSD 5.3m in short-tail/monoline specialty lines and $5.3 million from multi-line solutions, respectively ^{p. 38}.

* This ''favorable development'' was partially offset by $USD 22.4 million4m of adverse development in exited lines, primarily attributable to commercial auto and excess over auto in divisions where exposure has been non-renewed or significantly reduced over the past three years ^{p. 38}.

* ThisFor wasthe ''offsetyear byended favorableDecember 31, 2024, ''adverse development'' inrelated suretyto prior years’ loss and propertyloss expense reserves was USD 25.7m ^{p. 38}.

* ''AdverseOf the 2024 adverse development'', relatedUSD to10.1m priorand years’USD loss15.2m in multi-line solutions and lossexited expenselines, reservesrespectively, ofwere $25.7related millionto waslosses recognizedpreviously forsubject to the yearLPT endedfrom Decemberaccident 31,years 20242018 and prior ^{p. 38}.

* ThisThe ''adverseexpense developmentratio'' infor 20242025 includedimproved $100.15 millionpoints andcompared $15.2to million2024, inprimarily multi-linedue solutions andto exitedearnings linesleverage, respectively,partially relatedoffset toby losseshigher previouslyacquisition subjectcosts due to the LPT from accident years 2018business andmix priorshift ^{p. 38}.

* ''ExpenseNet ratioinvestment income'' for 2025 improvedincreased byUSD 03.5 points0m compared to 2024, primarily due to earnings leverage, partially offset by higher acquisition costs from business mix shift ^{p. 38}.

* The increase in income from the ''Net investmentfixed income portfolio'' for 2025 increasedwas bydue $3to a larger asset base and a higher book yield of 5.04% millionat December 31, 2025 (compared to 5.2% at December 31, 2024) ^{p. 38}.

* ''IncreaseThe decrease in fixed income portfoliofrom income''short-term forinvestments 2025& was due to a larger asset basecash and acash higherequivalents'' bookfor yield2025 ofwas 5.4% at December 31, 2025 (compareddue to 5.2%an atoverall Decemberdecrease 31,in 2024)yields ^{p. 38}.

* ''DecreaseThe decrease in short-termincome investmentsfrom &the cash''alternative and cashstrategic equivalentsinvestments incomeportfolio'' forin 2025 was due to ana overall decreasedecline in yieldsthe fair value of limited partnership investments ^{p. 38}.

* ''DecreaseThe decrease in alternativeincome andfrom strategic investments portfolio income'' in 2025equities'' was due to athe declinesale inof the fairequity valueportfolio ofin limitedQ3 partnership investments2025 ^{p. 38}.

* ''100.0%'' of the equities'' wereportfolio was publicly traded ^{p. 39}.

* During''Equities Q3portfolio 2025,sale'': almostAlmost all of the equities portfolio was sold during the third quarter of 2025, retaining only preferred stocks ^{p. 39}.

* The company does not have significant exposure''Exposure to foreign currency exchange rate risk or commodity risk'' is not significant ^{p. 39}.

* ''Risk management strategy and investmentInvestment policy'' is to invest primarily in debt instruments of high credit quality issuers and limit credit exposure byto particular ratings categories and perany one issuer ^{p. 39}.

* At December 31, 2025, the ''fixedFixed income portfolio'' had an average rating'' ofwas "A+" at December 31, 2025 ^{p. 39}.

* Approximately ''78.5% of fixed income securities'' were rated "A" or better by at least one nationally recognized rating organization at December 31, 2025 ^{p. 39}.

* Policy is to invest in ''investment1.1% gradeof fixed income securitiesportfolio'' forwas stabilityunrated andor supplementrated withbelow opportunisticinvestment-grade fixedat incomeDecember and equity securities for diversification and risk-adjusted31, returns2025 ^{p. 39}.

* ''InvestmentReinsurance managerscredit risk mitigation'': Reinsurance is purchased from reinsurers monitorrated theat financialleast condition"A-" of(Excellent) allor issuersbetter inby theA.M. portfolioBest ^{p. 39}.

* At December 31, 2025, ''98% of reinsurance recoverables'' at December 31, 2025, were from reinsurers rated "A-" (Excellent) or better by A.M. Best, or were collateralized ^{p. 39}.

* If''Options ato reinsurerlessen suffersasset aimpairment risk'' from reinsurer credit downgrade, options likeinclude commutation, novation, and letters of credit may be considered to mitigate asset impairment risk ^{p. 39}.

* The ''primaryPrimary market risk'' to the investment portfolio is interest rate risk associated with fixed income securities ^{p. 39}.

* When''Weighted marketaverage interesteffective ratesduration'' rise,of thefixed fairmaturity valuesecurities ofwas securities3.6 decreases;years conversely,as whenof ratesDecember fall31, fair value increases2025 ^{p. 39}.

* ''DurationOpportunistic fixed income securities'' isare excluded from theinterest weightedrate averagesensitivity paymentanalysis periodas ofthey cashare flows,primarily weightedfloating byrate theand presenttreated valueas ofheld cashto flowsmaturity ^{p. 39}.

* ''DurationChanges targetsin interest rates'' forimmediately theaffect core fixedcomprehensive income investmentand portfoliostockholders’ areequity, setbut afternot consideringordinarily thenet estimated duration of liabilities and other factorsincome ^{p. 39}.

* At December 31, 2025, approximately ''0.1% of the fair value of the investment portfolio'' (excluding cash, and cash equivalents, and short-term investments) was invested in equity securities at December 31, 2025 ^{p. 39}.

* During''Equity Q3portfolio 2025,sale'': almostAlmost all of the equities portfolio was sold during the third quarter of 2025, retaining only preferred stocks ^{p. 39}.

* For a reconciliation between actual federal income tax expense and the amount computed at the indicated statutory rate for the years ended December 31, 2025 and 2024, refer to Note 13, "Income“Income Taxes,"Taxes” in the consolidated financial statements included in Item 8 of this Form 10-K ^{p. 40}.

* The company is organized as a holding company, with operations primarily conducted by wholly-owned insurance subsidiaries: GMIC, HSIC, IIC (domiciled in Texas), and OSIC (domiciled in Oklahoma) ^{p. 41}.

* The holding company receivescan receive cash through: corporate service fees from operating subsidiaries,; payments from athe consolidated tax allocation agreement,; dividends from subsidiaries (subject to limitations),; bank loans from banks,; draws on a revolving loan agreement,; and issuance of equity and debt securities ^{p. 41}.

* Skyward Service Company receives corporate service fees from operating subsidiaries to reimburse it for most incurred operating expenses ^{p. 41}.

* Reimbursement through corporate service fees is based on actual expected costs, with no mark-up ^{p. 41}.

* Under the corporate tax allocation agreement, each participant is charged or refunded taxes asbased ifon what they filedwould have paid or received if filing on a separate return basis with the IRS ^{p. 41}.

* Dividend payments are limited to the portion of available policyholder surplus derived from net profits on an insurer’sinsurer's business ^{p. 41}.

* Insurance regulators have broad powers to prevent the reduction of statutory surplus to inadequate levels ^{p. 41}.

* There is no assurance that maximum calculated dividends under any applicable formula would be permitted ^{p. 41}.

* State insurance regulatory authorities maywith adoptjurisdiction more restrictive statutory provisions regardingover dividend payments by insurance subsidiaries may adopt more restrictive statutory provisions in the future ^{p. 41}.

* Additional information regarding insurance companies is available in Note 23, “Statutory"Statutory Accounting Principles and Regulatory Matters,”" to the consolidated financial statements in Item 8 of the Form 10-K ^{p. 41}.

* The holding company had ''cash and investments'' of $USD 3.5 million5m at December 31, 2025, compared to $USD 2.9 million9m at December 31, 2024 ^{p. 41}.

* ''PrimaryThe cashmost significant source'' of cash is from premiums received from insureds, typically at the beginning of the coverage period, net of related commission ^{p. 42}.

* ''MostThe most significant cash outflow'' is for claims when a policyholder incursarising anfrom insured losslosses ^{p. 42}.

* ''Cash is invested in various investment'' occurssecurities to earn interest and dividends because claim payments often happen yearsoccur after premium receipt, withoften investmentsyears generally earning interest and dividendslater ^{p. 42}.

* ''OperatingCash expenses''is suchalso asused for operating expenses (salaries, rent, and taxes,) and ''capital expenditures'' like (technology systems, are also paid with cash) ^{p. 42}.

* ''Reinsurance'' is used to manage policy risk, involving ceding part of received premiums to reinsurers and collecting cash back forwhen covered losses are paid ^{p. 42}.

* ''TimingThe timing of cash flows'' from operating activities can vary between periods due to the timing of payments and receipts ^{p. 42}.

* ''Significant payments and receipts'', includingsuch as loss settlements and subsequent reinsurance receipts, can influence operating cash flows in any given period ^{p. 42}.

* ''Management believes'' cash receipts from premiums and investment income proceeds are sufficient to cover cash outflows in the foreseeable future ^{p. 42}.

* ''IncreaseThe increase in cash provided by operating activities'' in 2025 compared to 2024 was primarily due to increased cash inflows from insurance operations ^{p. 42}.

* ''Cash from operations'' can vary period-to-period due to the timing of premium receipts, claim payments, and reinsurance activity ^{p. 42}.

* ''Cash flows from operations'' in the past two years were primarily used to fund investing activities ^{p. 42}.

* ''FHLB Loan'' was entered into on August 30, 2024, with the Federal Home Loan Bank of Dallas (FHLB) under its Advances and Security Agreement ^{p. 43}.

* ''FHLB Loan'' is a 4.5-year term loan forwith a principal amount of USD $57.0m0 million ^{p. 43}.

* ''Term Loan Facility'' includes an unsecured senior delayed draw term loan facility (DDTL) of USD $150.0m0 million (Tranche A DDTL) ^{p. 43}.

* ''Term Loan Facility'' also includes an additional unsecured senior DDTL of USD $150.0m0 million (Tranche B DDTL) ^{p. 43}.

* ''Interest on Term Loan Facility'' amountsis drawnbased will beon either term SOFR plus a margin ranging from 150 bps to 190 basis pointsbps, or the base rate plus a margin ranging from 50 bps to 90 basis pointsbps, depending on the debt to capitalization ratio ^{p. 43}.

* ''Fee on undrawn amounts'' under the Term Loan Facility ranges from 0.20% to 0.35% onof average daily undrawn amounts, depending on the debt to capitalization ratio ^{p. 43}.

* ''OnDraws Decemberon 30,Term 2025Loan Facility'',: USD$150 150mmillion of Tranche A DDTL and USD$150 150mmillion of Tranche B DDTL were drawn on December 30, 2025, for the Apollo acquisition on January 1, 2026 ^{p. 43}.

* ''Term Loan Facility covenants'' includes customary covenants, such asinclude limitations on additional indebtedness exceeding USD $10.0m0 andmillion, restrictions on distributions to stockholders, redemptionsand financial covenants related to minimum consolidated net worth, repurchasesmaximum total debt to capitalization, orminimum retirementsA.M. ofBest stockrating, uponand certainminimum eventsliquidity ^{p. 43}.

* ''FinancialCompliance with covenants'': forAs theof TermDecember Loan Facility include minimum consolidated net31, worth2025, maximumthe totalcompany debtwas toin capitalization,compliance minimumwith A.M.all BestTerm rating,Loan andFacility minimum liquiditycovenants ^{p. 43}.

* ''Guaranty agreement'' was entered into during the fourth quarter of 2025, where obligations under the Term Loan Facility are guaranteed by the company and its existing wholly-owned subsidiaries, and subsequently acquired or organized subsidiaries, (excluding insurance company subsidiaries and subject towith certain other exceptions) ^{p. 43}.

* ''Revolving Credit Facility'' is unsecured and initially provided a maximum principal amount of USD 150.0m ^{p. 43}.

* ''Revolving Credit FacilityInitial maximum principal amount'' of the Revolving Credit Facility was $150.0 million, which increased to USD $250.0m0 million on the closing date of the Apollo acquisition ^{p. 43}.

* ''Revolving Credit Facility'' was amended during the fourth quarter of 2025 to permit funding of certain revolving loans for the Apollo acquisition, among other things ^{p. 43}.

* ''Initial draw'' on the Revolving Credit Facility was USD $43.0m0 million, used to redeem the prior revolving credit facility ^{p. 43}.

* ''OnAdditional December 30, 2025draw'', an additional USDof $71.5m5 million was drawnmade fromon theDecember Revolving30, Credit Facility2025, for the Apollo acquisition consideration ^{p. 43}.

* ''Proceeds from draws'' on the Term Loan Facility and Revolving Credit Facility draws'' are presented net with liabilities on the Consolidated Balance Sheets for the year ended December 31, 2025, and were used for the Apollo acquisition on January 1, 2026 ^{p. 43}.

* ''Interest rate'' on Revolvingdrawn Creditamounts Facility''under amountsthe drawnRevolving bearCredit interestFacility atis either term SOFR plus a margin ranging from 150 bps to 190 basis pointsbps, or the base rate plus a margin ranging from 50 bps to 90 basis pointsbps, depending on the debt to capitalization ratio ^{p. 43}.

* ''Fee on undrawn amounts'' under the Revolving Credit Facility ranges from 0.20% to 0.35% onof average daily undrawn amounts, depending on the debt to capitalization ratio ^{p. 43}.

* ''Covenants on Revolving Credit Facility covenants'' are based on minimum net worth, maximum debt to capital ratio, minimum A.M. Best Rating, and minimum liquidity, plus customary events of default ^{p. 43}.

* ''Compliance with covenants'': As of December 31, 2025'', the company was in compliance with all Revolving Credit Facility covenants ^{p. 43}.

* ''2023 Revolving Credit Facility'' was entered into during the first quarter of 2023, providing an unsecured revolving credit facility of up to USD 150.0m and a letter of credit sub-facility of up to USD 30.0m ^{p. 43}.

* ''Accrued interest''Redemption of USD2023 0.3mRevolving wasCredit paidFacility'' uponoccurred redemptionon ofNovember the13, 2023 Revolving Credit Facility2025 ^{p. 43}.

* ''ExpenseAccrued ofinterest USD 0.6mpaid'' was recognized for remaining unamortized deferred financing costs related to the 2023 Revolving Credit Facility was $0.3 million ^{p. 43}.

* ''UnsecuredExpense subordinated notes (Notes)recognized'' withfor anremaining aggregateunamortized principaldeferred amountfinancing costs of USDthe 20.0m2023 wereRevolving issuedCredit inFacility Maywas $0.6 2019million ^{p. 43}.

* ''Interest on the Notes (Debentures)'': isIn fixedMay at2019, 7.25%an agreement was entered into to issue unsecured subordinated notes forwith thean firstaggregate 8principal yearsamount andof 8$20.25%0 thereaftermillion ^{p. 43}.

* ''EarlyInterest retirement of theon Notes'' beforeis thefixed 8-yearat commitment7.25% requiresfor allthe interestfirst payments8 toyears beand paid in full, plus the return of outstanding8.25% principalthereafter ^{p. 43}.

* ''PrincipalEarly onretirement theof Notes'' isrequires dueall atinterest maturitypayments onto Maybe 24,paid 2039in full, withplus interestthe return of payableoutstanding quarterlyprincipal ^{p. 43}.

* ''Debt related to the Notes'' is reported net of debt issuance costs of approximately USD $0.4m4 andmillion USDas 0.5m in theof December 31, 2025, and 2024$0.5 Consolidatedmillion Balanceas Sheetsof December 31, respectively2024 ^{p. 43}.

* In ''Share repurchaseOctober program2024'' approved by, the Board of Directors inapproved Octobera 2024share repurchase program. ^{p. 44}.

* The program authorizes the repurchase of up to ''$50.0 million'' of common stock. ^{p. 44}.

* RepurchasesShares canmay occurbe throughrepurchased via open market purchases, privately-negotiated transactions, block purchases, accelerated share repurchase agreements, or a combination of methods, including Rule 10b5-1 trading plans. ^{p. 44}.

* The timing, manner, price, and amount of repurchases are at the company's discretion. ^{p. 44}.

* The program does not mandate the repurchase of any specific number of shares and can be modified, suspended, or terminated at any time. ^{p. 44}.

* As of ''December 31, 2025, '', no shares'' havehad been repurchased under this plan. ^{p. 44}.

* Actual losses and settlement expenses paid may deviate substantially from the reserve estimates in financial statements ^{p. 45}.

* The timing for payment of estimated losses is not fixed or individually/aggregately determinable on an individual or aggregate basis ^{p. 45}.

* Assumptions for estimating payments due by period are based on the company's, industry's, and peer group's claims payment experience ^{p. 45}.

* There is a risk that amountsactual paidpayments in any period will differ significantly from disclosed amounts due to inherent uncertainty in timing estimation ^{p. 45}.

* Disclosed amounts are gross of anticipated amounts recoverable amounts from reinsurers ^{p. 45}.

* ''Reinsurance balances recoverable'' on reserves for losses and LAE are reported separately as assets, not netted with liabilities, because reinsurance does not discharge the company's liability to policyholders ^{p. 45}.

* ''Reinsurance balances recoverable'' on reserves for paid and unpaid losses and LAE totaled ''$1,119.9 million'' at December 31, 2025 ^{p. 45}.

* ''Reinsurance balances recoverable'' on reserves for paid and unpaid losses and LAE totaled ''$857.9 million'' at December 31, 2024 ^{p. 45}.

* Significant judgment is usedexercised concerning future results and developments in applying critical accounting estimates and preparing consolidated financial statements ^{p. 46}.

* These judgmentsJudgments and estimates affect reported amounts of assets, liabilities, revenues, expenses, and disclosure of material contingent assets and liabilities ^{p. 46}.

* Actual results may differ materially from the estimates and assumptions used in preparing consolidated financial statements ^{p. 46}.

* For a detailed discussion of accounting policies, refer to Note 1, “Summary of Significant Accounting Policies” in Item 8 of this Form 10-K ^{p. 46}.

* TheseReserves reservesfor unpaid losses and LAE represent the estimated ultimate cost of all unreported and reported but unpaid insured claims and the cost to adjust these losses as of or before the balance sheet date ^{p. 46}.

* Reserves are estimated using individual case-basis valuations of reported claims, statistical analyses, and various actuarial procedures ^{p. 46}.

* Estimates are based on historical information, industry and peer group information, and estimates of future trends in variable factors like loss severity, loss frequency, and inflation ^{p. 46}.

* During the loss settlement period, estimates of liability on a claim are often refined and adjusted upward or downward ^{p. 46}.

* The ultimate settlement of losses and related LAE may vary significantly from the estimate included in financial statements ^{p. 46}.

* Reserves for unpaid losses and LAE are categorized into two types: ''case reserves'' and ''IBNR'' ^{p. 46}.

* ''Case reserves'' are established for individual claims reported claimsto the company ^{p. 46}.

* NotificationLosses ofare lossesnotified comes fromby insureds, their agents, or brokers ^{p. 46}.

* Case reserves are established by estimating ultimate losses from the claim, including defense costs, based on provided information ^{p. 46}.

* Claims department personnel use their knowledge of specific claims and advice from internal and external experts (underwriters, legal counsel) to estimate expected ultimate losses ^{p. 46}.

* Third-Party Administrators (TPAs) are used in limited circumstances to assist within claim adjustmentsadjustment ^{p. 46}.

* Internal claims managers oversee TPA activities and monitor their adherenceclaim handling to prescribed standards ^{p. 46}.

* The ''incurredIncurred but not reported (IBNR) reserve'' is derived by estimating the ultimate unpaid reserve liability and subtracting case reserves ^{p. 46}.

* Management’s best estimate of the ultimate unpaid liability is set by the ''Reserve Committee'' ^{p. 46}.

* The Reserve Committee considers actuarial indications and other factors such as underwriting, claims handling, economic, legal, and environmental changes ^{p. 46}.

* The Reserve Committee meets quarterly to review actuarial reserving recommendations from the Chief Actuary and determine the best estimate for the reserve for losses and LAE ^{p. 46}.

* Reserve estimates assume no subjection to losses from significant new legal liability theories ^{p. 46}.

* The impact of potential changes in the regulatory or legislative environment is difficult to quantify without specific, significant new regulation or legislation ^{p. 46}.

* IfIn the event of significant new regulation or legislation occurs, attemptsthe willcompany bewill madeattempt to quantify its impact, but accuracy or success is not assured ^{p. 46}.

* The actuarial review considers multiple actuarial methods to estimate reservesthe reserve for losses and LAE ^{p. 46}.

* Methods''Actuarial methods'' include paid and incurred loss development methods, paid and incurred Bornhuetter-Ferguson methods, paid and incurred loss ratio cape cod methods, and frequency and severity methods ^{p. 46}.

* Actual reporting and payment patterns could differ from expected patterns, which are based on internalcompany and industry data ^{p. 46}.

* Estimates are regularly reviewed and adjusted as experience develops or new information becomes known, with adjustments included in current operations ^{p. 46}.

* Development is ''Unfavorable developmentunfavorable'' occurs when losses settle for more than reserved or subsequent estimates indicate reserve increases ^{p. 46}.

* Development is ''Favorable developmentfavorable'' occurs when losses settle for less than reserved or subsequent estimates indicate reserve reductions ^{p. 46}.

* Favorable or unfavorable development of loss reserves is reflected in the results of operations in the period the estimates changeare changed ^{p. 46}.

* In December 2023, the FASB issued ''ASU 2023-09'', "Improvements to Income Tax Disclosures (Topic 740)" ^{p. 47}.

* In November 2024, the FASB issued ''ASU 2024-03'', which requiresrequiring disaggregated disclosure of income statement expenses for public business entities (PBEs) ^{p. 47}.

* ASU 2024-03 does not alter the expense captions on the income statement but requires disaggregation of certain expense captions into specified categories in financial statement footnotes ^{p. 47}.

* ASU 2024-03 mandates a footnote disclosure presentingfor specific expenses, requiring PBEs to disaggregate, in a tabular disaggregation ofpresentation, relevant income statement expense captions that include any of the following natural expenses: such as(1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion, and amortization fromrecognized as part of oil- and gas-producing activities or other types of depletion expenses ^{p. 47}.

* The tabular disclosure would also include certain other applicable expenses, where applicable ^{p. 47}.

* In January 2025, the FASB issued ''ASU 2025-01'' to clarify the effective date of ASU 2024-03 as the first annual reporting period beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027 ^{p. 47}.

== ConsolidatedFinancial balance sheetsStatements ==

! style="text-align:left" | USD ($) $ in Thousands

! classcolspan="col-s2" style="text-align:rightcenter" | Dec.December 31, 2025

|! style="text-align:left" | Investments:

|! style="text-align:rightcenter" | —2025

|! style="text-align:rightcenter" | —2024

| style="text-align:left" | Fixed maturity securities, available-for-sale, at fair value (net of allowance for credit losses of $ 7,000 and $ 0 , respectively) (amortized cost of $ 1,848,755 and $ 1,320,266 , respectively)

| style="text-align:left" | Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of $ 468 and $ 243 , respectively)

| style="text-align:left" | Liabilities: and stockholders’ equity

| style="text-align:left" | CarryingNotes Valuepayable

| style="text-align:left" | Common stock, $ 0.01 par value, 500,000,000 shares authorized, 40,511,222 and 40,127,908 shares issued and outstanding, respectively

| style="text-align:right" | -( 22,120 )

== '''Consolidated balancestatements of operations sheetsand (parenthetical)comprehensive ==income'''

! style="text-align:left" | USD ($) $ in Thousands

! colspan="32" style="text-align:center" | 12 MonthsYears Ended December 31,

! style="text-align:left" | —($ in thousands, except share and per share amounts)

! class="col-s" style="text-align:rightcenter" | Dec. 31, 2025

! class="col-s" style="text-align:rightcenter" | Dec. 31, 2024

! class="col-s" style="text-align:rightcenter" | Dec. 31, 2023

|! style="text-align:left" | Revenues:

|! class="col-s" style="text-align:right" | —

|! class="col-s" style="text-align:right" | —

|! class="col-s" style="text-align:right" | —

| style="text-align:right" | -( 587 )

| style="text-align:right" | -( 167 )

| style="text-align:right" | -( 632 )

| style="text-align:right" | 0—

| style="text-align:right" | 0—

| style="text-align:right" | 0—

| style="text-align:right" | 0—

| style="text-align:right" | -( 8,959 )

| style="text-align:right" | -( 4,984 )

| style="text-align:left" | PerBasic shareearnings data:per share

| style="text-align:left" | Diluted earnings per share (in dollar per share)

| style="text-align:left" | Basic (in shares)

| style="text-align:left" | Diluted (in shares)

== '''Consolidated statements of stockholders’ equity =='''

! style="text-align:left" | USD ($) $ in Thousands

! classcolspan="col-s3" style="text-align:rightcenter" | TotalYears Ended December 31,

|! style="text-align:left" | Preferred($ sharesin balancethousands, atexcept beginningshare of period (in sharesamounts) at Dec. 31, 2022

|! style="text-align:rightcenter" | —2025

|! style="text-align:rightcenter" | 1,969,6602024

|! style="text-align:rightcenter" | —2023

|! style="text-align:left" | IncreasePreferred (Decrease) in Stockholders' Equity [Roll Forward]shares:

|! class="col-s" style="text-align:right" | —

|! class="col-s" style="text-align:right" | —

|! class="col-s" style="text-align:right" | —