Core Viewpoint - Mercury Insurance is expanding its homeowners insurance options in California, particularly for those in high wildfire risk areas, by submitting a new rate filing based on the State's Sustainable Insurance Strategy, utilizing the Verisk Wildfire catastrophe model to assess future wildfire impacts [1][2][3] Group 1: Rate Filing and Coverage Expansion - The new rate filing proposes an overall average rate increase of 6.9%, driven by inflationary pressures and exposure to catastrophic events like wildfires [3] - The rate increase will not be uniform; higher risk areas may experience larger increases, while lower risk areas could see decreases [3] - Mercury is introducing discounts to help mitigate increases for customers in higher risk areas, potentially saving up to one-third on the wildfire portion of their premium [4][7] Group 2: Commitment to California Homeowners - Mercury's CEO emphasized the company's commitment to providing more insurance options for California homeowners, especially as other insurers reduce their presence in the state [3] - The new plan aims to offer comprehensive coverage options beyond the limited California FAIR Plan, which has been the last resort for homeowners in high-risk areas [2][4] Group 3: Community and Risk Mitigation - Homeowners who take proactive steps to reduce wildfire risks, such as vegetation clearance and using fire-resistant materials, will benefit from expanded discounts [7] - Living in a fire-prepared community that collectively manages wildfire exposure will also provide additional discounts for homeowners [7]

Mercury's New Umbrella Insurance Better Protects Floridians' Personal Wealth Against Bodily Injury Claims LOS ANGELES, Aug. 14, 2025 /PRNewswire/ -- Multi-vehicle crashes, dog bites or a delivery person being injured on your property are some of the unexpected events that are putting Floridians' personal financial health at risk. In fact, bodily injury payouts continue to climb year over year since the pandemic started, with the average amount for a liability claim increasing by 35%, according to Mercury In ...

Core Insights - The truck and SUV segments remain highly sought after by American consumers, prompting Mercury Insurance to compile a list of the most affordable new trucks and SUVs to insure for 2025 [1][3] - This marks the 10th year Mercury has published this list, which includes vehicles from the 2025 and 2026 model years [2] Truck Segment - The top 10 list for trucks includes models such as Chevrolet Colorado LT, Chevrolet Silverado C3500, and Ford Maverick/Ford Ranger, ranked by affordability to insure [6] - Factors influencing insurance costs include claims on similar vehicles, repair costs, and vehicle safety records [2] SUV Segment - The top 10 list for SUVs features models like Hyundai Sante Fe, Honda Pilot, and Kia Sportage, also ranked by affordability to insure [6] - The variety in this year's list caters to consumers with different budgets and lifestyles, from compact SUVs to larger midsize options [3] Company Overview - Mercury Insurance is a multiple-line insurance carrier offering personal auto, homeowners, renters, and commercial insurance across several states [5] - The company has a strong reputation, earning an "A" rating from A.M. Best and recognition as "Best Auto Insurance Company" by Forbes and Insure.com [7]

Core Insights - Mercury Insurance provides essential tips for families and students to ensure proper vehicle insurance coverage as students head to college [1][2] Group 1: Insurance Tips for College-Bound Drivers - Update the auto insurance policy to reflect the new garaging address, as coverage and rates may vary based on the vehicle's primary location [5] - Consider the usage of the vehicle; if the student leaves the car at home, a reduced rate may be available [5] - Ensure vehicles are secure, as dorm and campus parking lots can be prone to theft and vandalism; comprehensive and collision coverage is recommended [5] - Familiarize with campus parking regulations to avoid fines or towing, as college campuses have specific parking rules [5] - Bundling auto and renters insurance can provide additional savings and peace of mind for students living in dorms or off-campus housing [5] Group 2: Company Overview - Mercury Insurance is headquartered in Los Angeles and offers multiple lines of insurance, including personal auto, homeowners, and renters insurance [3][4] - The company has over 4,200 employees and a network of more than 6,340 independent agents across 11 states [4] - Mercury Insurance has received an "A" rating from A.M. Best and has been recognized as a "Best Auto Insurance Company" by Forbes and Insure.com [4]

Core Insights - U.S. stocks have experienced volatility due to tariff news and disappointing job growth, leading to a significant drop in the S&P 500 [1] - Despite the pullback, investor sentiment remains positive, with ongoing negotiations and expectations of lower interest rates supporting a potential recovery [2] Stock Recommendations - Recommended stocks based on relative price strength include Barrick Mining Corporation, LendingTree, Mercury General Corporation, Rigel Pharmaceuticals, and Levi Strauss & Co. [3] Relative Price Strength Strategy - The potential for considerable returns in stocks is primarily determined by earnings and valuation ratios, alongside their price performance relative to peers [4] - Stocks outperforming their industries or benchmarks should be included in investment portfolios for higher return potential [5] - Stocks that have outperformed the S&P 500 over 1 to 3 months and show solid fundamentals are ideal candidates for investment [6] Analyst Optimism - Positive estimate revisions for upcoming earnings are crucial, as upward revisions typically lead to price gains [7] Screening Parameters - Stocks must show positive relative price changes over 12 weeks, 4 weeks, and 1 week, alongside positive current-quarter estimate revisions [8] - Stocks like Barrick Mining, LendingTree, and Rigel Pharmaceuticals have outperformed the S&P 500 and show strong earnings revisions [8] Company Highlights - **Barrick Mining Corporation**: Expected EPS growth rate of 33.5%, with a 55.6% year-over-year growth estimate for 2025 [10][11] - **LendingTree**: 45.1% growth estimate for 2025, with a trailing four-quarter earnings surprise of approximately 70.8% [11][12] - **Mercury General Corporation**: 1,000% surge in earnings estimate over the past 60 days, with a trailing earnings surprise of about 166% [13][14] - **Rigel Pharmaceuticals**: 170.7% growth estimate for 2025, with an average earnings surprise of 1,840.5% [15][16] - **Levi Strauss & Co.**: 4% year-over-year growth estimate for fiscal 2025, with a 5.7% increase in earnings estimate over the past 60 days [17]

Core Viewpoint - Mercury General (MCY) is experiencing solid improvement in earnings estimates, which is expected to positively influence its stock price momentum [1][2]. Earnings Estimates - Analysts are increasingly optimistic about Mercury General's earnings prospects, leading to higher estimates that correlate with stock price movements [2]. - The current-quarter earnings estimate is projected at $2.15 per share, reflecting a year-over-year decline of 15.4%. However, the Zacks Consensus Estimate has risen by 34.38% in the last 30 days, with no negative revisions [5]. - For the full year, the earnings estimate stands at $4.50 per share, indicating a 37.4% decrease from the previous year. Despite this, the consensus estimate has seen a remarkable increase of 1000% over the same timeframe [6][7]. Zacks Rank - Mercury General holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which historically leads to outperformance [3][8]. - Stocks with a Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [8]. Stock Performance - The stock has appreciated by 9.7% over the past four weeks due to favorable estimate revisions, suggesting potential for further upside [9].

Core Insights - Mercury Insurance emphasizes the importance of financial preparedness alongside physical preparation for extreme weather events, suggesting that proactive measures can save homeowners significant costs in the long run [2]. Company Overview - Mercury Insurance, headquartered in Los Angeles, operates as a multiple-line insurance carrier, providing personal auto, homeowners, and renters insurance across various states, including Arizona, California, and Texas [4]. - The company has been in operation since 1962, offering competitive rates and excellent customer service through over 4,200 employees and a network of more than 6,340 independent agents [5]. - Mercury Insurance has received an "A" rating from A.M. Best and has been recognized as a "Best Auto Insurance Company" by Forbes and Insure.com [5]. Financial Readiness Checklist for Extreme Weather - Review insurance coverage to ensure it includes protection against local hazards such as fire, wind, or flooding, and consider additional coverage if necessary [7]. - Understand deductibles and set aside savings for out-of-pocket expenses in case of a disaster [7]. - Create a home inventory to document valuables, which can expedite claims and ensure fair reimbursement [7]. - Build an emergency fund specifically for disaster-related expenses, including temporary housing and food [7]. - Safeguard important documents by storing them in waterproof and fireproof containers or backing them up digitally [7]. - Utilize smart technology, such as leak sensors and weather alerts, to detect damage early [7]. - Plan for evacuation costs by preparing a go-bag and having a plan for lodging and pet care [7]. - Familiarize with FEMA and state aid programs for disaster relief in case of a declared disaster zone [7].

Core Insights - Mercury General reported significantly higher non-GAAP earnings for Q2 2025, with earnings per share reaching $2.67, surpassing the consensus estimate of $1.65 [1][2] - Non-GAAP revenue for the quarter was $1.48 billion, exceeding analyst expectations [1][2] - The company's improved performance was attributed to lower catastrophe losses, favorable reserve development, and enhanced investment results [1] Financial Performance - Non-GAAP EPS increased by 144.9% year-over-year from $1.09 in Q2 2024 to $2.67 in Q2 2025 [2] - GAAP revenue rose by 13.8% year-over-year, from $1.30 billion in Q2 2024 to $1.48 billion in Q2 2025 [2] - Operating income (non-GAAP) surged by 146.7% year-over-year, from $60 million in Q2 2024 to $148 million in Q2 2025 [2] - Net premiums earned grew by 10.6% year-over-year, from $1.24 billion in Q2 2024 to $1.37 billion in Q2 2025 [2] - The combined ratio improved to 92.5% in Q2 2025, down from 98.9% in the prior year [2][5] Business Overview - Mercury General is a major personal lines insurer in California, focusing on personal auto, homeowners, and commercial auto insurance [3] - Approximately 90% of its business is conducted through independent agents, with a strong presence in California's private passenger auto insurance market [3] - The company faces regional risks due to natural disasters and regulatory constraints in California [3] Operational Highlights - The company effectively managed catastrophe risks, particularly from wildfires, through reinsurance and subrogation strategies [4][6] - Catastrophe losses were significantly reduced to $13 million net of reinsurance in Q2 2025, compared to $125 million in Q2 2024 [6] - Investment income before tax increased to $78.8 million in Q2 2025, with an average portfolio yield of 4.7% [7] - The company collected 100% of wildfire-related reinsurance billings through June 30, 2025, by July 15 [8] Future Outlook - Management did not provide formal financial guidance for future quarters but emphasized ongoing efforts in subrogation recoveries and maintaining underwriting discipline [10] - The company highlighted the importance of operational resilience due to its high concentration of policies in California and the tight regulatory environment [10][11]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Q2 2025 saw strong net income growth driven by reduced catastrophe losses and increased investment income, with a quarterly dividend declared [Second Quarter 2025 Performance Summary](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Summary) Q2 2025 net income surged 166.1% to $166.5 million, driven by reduced catastrophe losses and an improved 92.5% combined ratio Consolidated Highlights for Q2 and Six Months Ended June 30, 2025 | Metric | Q2 2025 | Q2 2024 | Change (%) | Six Months 2025 | Six Months 2024 | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Premiums Earned | $1,366.7M | $1,236.0M | 10.6% | $2,649.8M | $2,402.7M | 10.3% | | Net Premiums Written | $1,480.8M | $1,355.5M | 9.2% | $2,795.2M | $2,640.4M | 5.9% | | Net Income | $166.5M | $62.6M | 166.1% | $58.1M | $136.0M | (57.3)% | | Net Income per Diluted Share | $3.01 | $1.13 | 166.4% | $1.05 | $2.46 | (57.3)% | | Operating Income | $147.9M | $60.3M | 145.4% | $21.2M | $103.6M | (79.6)% | | Catastrophe Losses (net) | $13.0M | $125.0M | (89.6)% | $460.0M | $197.0M | 133.5% | | Combined Ratio | 92.5% | 98.9% | (6.4) pts | 105.4% | 99.9% | 5.5 pts | [Investment Results and Dividend](index=2&type=section&id=Investment%20Results%20and%20Dividend) Net investment income increased for Q2 and H1 2025 due to higher yields and invested assets, partly from asset sales, with a $0.3175 per share dividend declared Investment Results for Periods Ended June 30 | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Average Invested Assets at Cost | $5,703.6M | $5,536.2M | $5,686.6M | $5,450.8M | | Net Investment Income (Pre-tax) | $78.8M | $69.0M | $160.2M | $134.0M | | Average Annual Yield (Pre-tax) | 4.7% | 4.5% | 4.7% | 4.5% | - The Board of Directors declared a quarterly dividend of **$0.3175 per share**, payable on September 25, 2025, to shareholders of record on September 11, 2025[6](index=6&type=chunk) - Higher net investment income was attributed to a combination of higher average yield and increased average invested assets and cash. The yield improved partly due to the sale of approximately **$600 million** in low-yielding investments in January 2025 to ensure liquidity for wildfire claims[9](index=9&type=chunk) [Impact of Catastrophe Events](index=2&type=section&id=Impact%20of%20Catastrophe%20Events) H1 2025 net catastrophe losses from wildfires were substantial, mitigated by reinsurance and subrogation efforts, fully exhausting the reinsurance program [Palisades and Eaton Wildfires Impact](index=2&type=section&id=Palisades%20and%20Eaton%20Wildfires%20Impact) H1 2025 net catastrophe losses from wildfires totaled $359 million, mitigated by reinsurance recoveries and subrogation efforts, including a sale of Palisades subrogation rights - For the six months ended June 30, 2025, the company recorded net catastrophe losses and loss adjustment expenses from the Palisades and Eaton wildfires of approximately **$359 million**[7](index=7&type=chunk) Breakdown of Net Losses from Wildfires (Six Months Ended June 30, 2025) | Component | Amount ($K) | | :--- | :--- | | Gross losses and LAE | $2,153,000K | | Subrogation recoverable - Eaton fire | ($528,000K) | | Subrogation recovered - Palisades fire | ($46,500K) | | Reinsurance recovered and recoverable | ($1,293,500K) | | **Net losses before Fair Plan** | **$285,000K** | | Net Fair Plan losses and LAE | $74,000K | | **Total Net Losses and LAE** | **$359,000K** | - The company is pursuing subrogation against Southern California Edison (SCE) for the Eaton fire, recording an estimated recovery of **$528 million**, representing about **55%** of its estimated ultimate losses from that fire[12](index=12&type=chunk) - In June 2025, the company sold its subrogation rights on the Palisades fire to a third party for a guaranteed amount of approximately **$47 million**, plus a potential share of future recoveries[12](index=12&type=chunk) [Reinsurance Program Details](index=3&type=section&id=Reinsurance%20Program%20Details) The $1.29 billion catastrophe reinsurance program was fully exhausted by wildfires, requiring a $101 million reinstatement premium payment, significantly increasing H1 2025 ceded premiums - The catastrophe reinsurance program for the treaty year ending June 30, 2025, provided approximately **$1.29 billion** of limits, which was fully exhausted by the wildfires. This necessitated a reinstatement premium payment of approximately **$101 million**[12](index=12&type=chunk) - As of June 30, 2025, the company had paid out approximately **$1.32 billion** for wildfire-related losses. It has billed reinsurers **$933 million** and collected **100%** of that amount as of July 15, 2025[13](index=13&type=chunk) Impact of Reinsurance Utilization on Ceded Premiums (Six Months Ended 6/30/2025) | Metric | Recorded Amount (Full Limit Used) ($M) | Pro-forma Amount ($0 Limit Used) ($M) | Difference ($M) | | :--- | :--- | :--- | :--- | | Total Ceded Premiums Written | $153.0M | $52.0M | $101.0M | | Total Ceded Premiums Earned | $153.0M | $52.0M | $101.0M | [Financial Statements](index=6&type=section&id=Financial%20Statements) Q2 2025 showed revenue and net income growth, while H1 results reflected increased losses and a deteriorated combined ratio, impacting balance sheet reserves [Summary of Operating Results (Income Statement)](index=6&type=section&id=Summary%20of%20Operating%20Results%20(Income%20Statement)) Q2 2025 total revenues increased to $1.48 billion with net income rising to $166.5 million, while H1 revenues reached $2.87 billion, but increased losses led to a net income decline and combined ratio deterioration Summary of Operating Results (in thousands) | Metric | Q2 2025 ($K) | Q2 2024 ($K) | Six Months 2025 ($K) | Six Months 2024 ($K) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $1,477,885K | $1,304,994K | $2,871,763K | $2,579,080K | | Losses and LAE | $940,037K | $936,714K | $2,160,850K | $1,840,679K | | Total Expenses | $1,271,137K | $1,229,897K | $2,807,312K | $2,414,763K | | Income Before Taxes | $206,748K | $75,097K | $64,451K | $164,317K | | Net Income | $166,472K | $62,568K | $58,145K | $136,030K | | Combined Ratio | 92.5% | 98.9% | 105.4% | 99.9% | [Condensed Balance Sheets](index=7&type=section&id=Condensed%20Balance%20Sheets) Total assets increased to $9.08 billion by June 30, 2025, driven by cash and reinsurance recoverables, while loss and LAE reserves grew to $3.61 billion due to catastrophes Condensed Balance Sheet Highlights (in thousands) | Account | June 30, 2025 ($K) | Dec 31, 2024 ($K) | | :--- | :--- | :--- | | **Assets** | | | | Total Investments | $5,963,247K | $6,076,370K | | Cash | $1,122,252K | $720,257K | | Reinsurance Recoverables | $390,717K | $28,613K | | **Total Assets** | **$9,083,027K** | **$8,310,632K** | | **Liabilities & Equity** | | | | Loss and LAE Reserves | $3,612,160K | $3,152,031K | | Unearned Premiums | $2,184,846K | $2,039,830K | | Notes Payable | $574,327K | $574,128K | | Shareholders' Equity | $1,969,497K | $1,946,524K | | **Total Liabilities & Equity** | **$9,083,027K** | **$8,310,632K** | [Other Key Metrics](index=7&type=section&id=Other%20Key%20Metrics) Book value per share increased to $35.56, net premiums written to surplus ratio rose to 2.74, portfolio duration extended to 4.3 years, and policies-in-force showed modest growth Other Information as of June 30, 2025 | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Book Value Per Share | $35.56 | $35.14 | | Statutory Surplus | $2.02 billion | $2.03 billion | | Net Premiums Written to Surplus Ratio | 2.74 | 2.65 | | Debt to Total Capital Ratio | 22.6% | 22.8% | | Portfolio Duration | 4.3 years | 3.4 years | | Personal Auto PIF (000s) | 1,030 | 1,019 | | Homeowners PIF (000s) | 859 | 852 | [Supplemental Information](index=8&type=section&id=Supplemental%20Information) This section reconciles GAAP to non-GAAP measures, explaining the rationale for using operating income and net premiums written to assess core business performance [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section reconciles GAAP to non-GAAP measures, showing Q2 2025 Net Income of $166.5 million reconciled to Operating Income of $147.9 million Reconciliation of Net Income to Operating Income (in thousands) | Line Item | Q2 2025 ($K) | Q2 2024 ($K) | Six Months 2025 ($K) | Six Months 2024 ($K) | | :--- | :--- | :--- | :--- | :--- | | Net Income (GAAP) | $166,472K | $62,568K | $58,145K | $136,030K | | Less: Net Realized Investment Gains, Net of Tax | $18,549K | $2,290K | $36,973K | $32,461K | | **Operating Income (Non-GAAP)** | **$147,923K** | **$60,278K** | **$21,172K** | **$103,569K** | [Explanation of Non-GAAP Measures](index=9&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Non-GAAP measures provide industry-specific performance insights, with operating income assessing core insurance by excluding volatile investment gains, and net premiums written indicating production levels - Operating income is presented because management believes it provides a valuable measure of ongoing performance by revealing trends in the core insurance business that may be obscured by net realized investment gains and losses, which are often driven by external market conditions[27](index=27&type=chunk) - Net premiums written is a statutory financial measure used to determine production levels and is considered supplemental information to the GAAP measure of net premiums earned[28](index=28&type=chunk)

Premiums and Revenue - For the six months ended June 30, 2025, total direct premiums written amounted to $2,930.4 million, a 9.0% increase from $2,688.4 million in the same period of 2024[138]. - California accounted for 80.9% of total direct premiums written, with $2,371.1 million in premiums, while Texas contributed 7.6% with $222.0 million[138]. - Net premiums earned increased by 10.3% and net premiums written increased by 5.9% compared to the same period in 2024[175]. - Net premiums earned for the six months ended June 30, 2025, were $2,649,808, an increase from $2,402,703 in 2024, while net premiums written rose to $2,795,188 from $2,640,444[177]. - Net premiums earned increased by 10.6% to $1,366,738 thousand for the three months ended June 30, 2025, compared to $1,236,024 thousand in 2024[162]. - Net premiums written rose by 9.2% to $1,480,807 thousand for the three months ended June 30, 2025, up from $1,355,460 thousand in 2024[162]. Loss Reserves and Ratios - The Company recorded loss reserves of approximately $3.61 billion as of June 30, 2025, up from $3.15 billion at the end of 2024, including incurred but not reported loss reserves of $2.08 billion[154]. - The loss ratio improved to 68.8% in Q2 2025 from 75.8% in Q2 2024, reflecting better underwriting performance[163]. - The combined ratio decreased to 92.5% in Q2 2025 from 98.9% in Q2 2024, indicating profitable underwriting results[168]. - The loss ratio for the first half of 2025 was 81.5%, up from 76.6% in 2024, with a combined ratio of 105.4% compared to 99.9% in the prior year[178]. Income and Investment Performance - Net income for the three months ended June 30, 2025, was $166,472 thousand, significantly up from $62,568 thousand in 2024[174]. - Net income for the six months ended June 30, 2025, was $58,145, a significant decrease from $136,030 in 2024, resulting in a basic net income per share of $1.05 compared to $2.46[189]. - Net investment income before taxes increased to $78,759 thousand in Q2 2025 from $68,970 thousand in Q2 2024, driven by higher average yield and invested assets[170]. - Net investment income before taxes increased to $160,238 in 2025 from $133,989 in 2024, with an average annual yield on investments rising to 4.7% from 4.5%[184]. Catastrophe Losses - Catastrophe losses for Q2 2025 amounted to approximately $15 million, primarily due to severe storms, while the previous year saw $120 million in catastrophe losses[164][165]. - Catastrophe losses for the first half of 2025 amounted to approximately $474 million, primarily due to wildfires and severe storms, while 2024 saw $188 million in catastrophe losses[180]. - Catastrophe events in 2025 resulted in approximately $1,783 million in losses before reinsurance, primarily from wildfires and severe storms[203]. Regulatory and Market Conditions - The Company is subject to regulatory examinations by the Department of Insurance in each state it operates, with no material findings reported in recent Texas market conduct examinations[140]. - The property and casualty insurance industry is highly cyclical, affecting the Company's ability to grow and retain business due to competition and economic conditions[135]. - The Company expects to adhere to new market-share requirements in California to incorporate catastrophe modeling and reinsurance costs into its rate-making, with implementation likely not complete until late 2025[143]. Reinsurance and Catastrophe Management - The Company contributed $50 million to the California FAIR Plan to strengthen its capital position following significant wildfire losses in January 2025[144]. - The Catastrophe Reinsurance Treaty provides approximately $2,140 million of coverage for the 12 months ending June 30, 2026, compared to $1,290 million for the same period in 2025[198]. - The annual premium for the Treaty is projected to be $237 million for the 12 months ending June 30, 2026, an increase from $105 million in 2025, primarily due to increased reinsurance coverage and rates[201]. - The Company has reduced its catastrophe exposure from earthquakes by placing risks directly with the California Earthquake Authority[194]. Investment Portfolio - The total investment portfolio at fair value as of June 30, 2025, is $5,963,247 thousand, with fixed maturity securities making up a significant portion[209]. - At June 30, 2025, 40.2% of the total investment portfolio at fair value was invested in tax-exempt state and municipal bonds[209]. - The nominal average maturity of fixed maturity securities, excluding short-term investments, is 13.3 years as of June 30, 2025[213]. - The overall credit ratings for the fixed maturity securities portfolio remained stable, with 95.5% experiencing no change in their overall rating during the six months ended June 30, 2025[216]. - The Company reported equity holdings of $687.7 million, which constituted 11.5% of the total investment portfolio at fair value as of June 30, 2025[229]. Debt and Financial Ratios - The Company’s debts included $375 million of senior unsecured notes and $200 million drawn under an unsecured credit facility as of June 30, 2025[230]. - The ratio of net premiums written to statutory policyholders' surplus was 2.74 to 1, based on a surplus of $2.02 billion and net premiums written of $5.53 billion for the twelve months ended June 30, 2025[231]. - The Company was in compliance with all financial covenants related to minimum statutory surplus and debt ratios as of June 30, 2025[230].