Financial Data and Key Metrics Changes - The company reported an adjusted return on common equity of 29.4% for the quarter, indicating strong performance [4] - Adjusted diluted earnings per common share increased to $1.23 from $1.18 in the prior year quarter, primarily due to higher direct premiums earned, net investment income, and commission revenue [4][5] - Core revenue reached $400.9 million, up 5.7% year over year, driven by higher net premiums earned and net investment income [5] - Direct premiums written were $596.7 million, a 3.2% increase from the prior year quarter, with significant growth in other states [5] - The net combined ratio was 97.8%, up 1.9 points from the prior year quarter, reflecting higher net loss and expense ratios [6] Business Line Data and Key Metrics Changes - Direct premiums earned were $523.4 million, up 6.7% from the prior year quarter, reflecting growth in direct premiums written [6] - Net premiums earned increased to $360.2 million, a 4.4% rise year over year, primarily due to higher direct premiums earned [6] - The net loss ratio was 72.3%, up 1.7 points compared to the prior year quarter, mainly due to a higher ceded premium ratio [7] - The net expense ratio was 25.5%, up 0.2 points from the prior year quarter, driven by higher ceded premium ratio and policy acquisition costs [7] Market Data and Key Metrics Changes - The company experienced a 25.4% growth in direct premiums written in states outside Florida, while Florida saw a 2.5% decrease [5] - The competitive environment in Florida has seen an increase in competitors, but the company does not perceive it as significantly more competitive than previous quarters [14] Company Strategy and Development Direction - The company is optimistic about favorable underwriting trends in the Florida market and has opened additional territories in the state [4][14] - The management emphasizes a focus on profitability rather than competition, leveraging 25 years of experience in Florida [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the Florida market's improvement and the company's strategic positioning [4] - The company noted that the cost of the new reinsurance program is not significantly different from previous periods, indicating stability in the market [20] Other Important Information - The company repurchased approximately 287,000 shares at a cost of $7.4 million, with $15.2 million remaining in the share repurchase authorization program [8] - A quarterly cash dividend of $0.16 per common share was declared, payable on August 8, 2025 [8] Q&A Session Summary Question: Can you provide details on the reinsurance ceding change? - Management explained that the comparison involves different reinsurance programs, with changes in structure affecting costs [10][11] Question: What is the company's perspective on capital and share buybacks? - Management stated that they will continue to purchase shares when they believe they are undervalued [12] Question: Is the market more competitive than before? - Management indicated that while there are more competitors, they do not see a significant increase in competition across Florida [14] Question: Was there any net prior year development or claims handling benefits in the quarter? - Management confirmed that there were negligible prior year developments [18][19] Question: Can you discuss the cost of the new reinsurance program? - Management noted that the cost is not significantly different from previous periods, which is a positive sign for the Florida marketplace [20]