Financial Data and Key Metrics Changes - In Q4 2025, the company reported net income of $14.8 million and diluted earnings per share of $1.03, with a GAAP net combined ratio of 64.2 and an annualized return on equity of 51% [4][17] - For the full year, net income more than doubled to $40.8 million, and diluted earnings per share increased by 95% to $2.88, with a return on equity of 43% [4][17] - The net expense ratio improved from 41% in 2021 to 30% in 2025, marking a significant milestone for the company [21] Business Line Data and Key Metrics Changes - Direct premiums written grew 14% in Q4 to $82.8 million and 15% for the full year to $277.8 million, driven by higher average premiums and strong retention [6][17] - The Select product now represents 57% of policies in force, up from 45% a year ago, contributing to improved risk selection and lower claims frequency [5] Market Data and Key Metrics Changes - The company plans to enter the California market in Q2 2026, which is expected to become a significant contributor to growth over time [9][10] - The California homeowners market is valued at $15 billion, nearly double that of New York, with a growing supply-demand imbalance for homeowners coverage [9] Company Strategy and Development Direction - The company aims for $500 million in direct premiums written by year-end 2029, focusing on growth in New York and measured expansion into new markets [9][14] - The introduction of the underlying combined ratio as a primary operating metric will help isolate controllable performance from catastrophe volatility [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic direction and ability to compete effectively in New York despite increasing competition [45] - The guidance for 2026 includes direct premiums written growth of 16%-20% and an underlying combined ratio of 74%-76%, reflecting a healthy and growing controllable business [12][14] Other Important Information - The company has no debt and a robust capital position, with shareholder equity increasing by 84% to $122.7 million [24] - The company is actively monitoring regulatory proposals in New York regarding homeowner insurer profitability [16] Q&A Session Summary Question: Differences in California Risks - Management highlighted that California is a large, dislocated market and will enter with a disciplined approach using the Select product tailored for California [30][32] Question: Expense Ratio Outlook - The company aims to maintain the expense ratio in the 29%-30% range, with potential for slight improvements [41] Question: Competition in New York - Management noted that while competition is increasing, the company has a strong position due to its Select product and deep producer relationships [45]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported net income of $14.8 million and diluted earnings per share of $1.03, with a GAAP net combined ratio of 64.2 and an annualized return on equity of 51% [4][17] - For the full year, net income more than doubled to $40.8 million, and diluted earnings per share increased by 95% to $2.88, with a return on equity of 43% [4][17] - The net earned premium growth increased by 38% in Q4 and 46% for the full year, primarily due to a reduced quota share [7][19] Business Line Data and Key Metrics Changes - Direct premiums written grew 14% to $82.8 million in Q4 and 15% to $277.8 million for the full year, with New York personal lines policies in force growing over 7% [6] - The Select product now represents 57% of policies in force, up from 45% a year ago, improving risk selection and driving lower claims frequency [5] Market Data and Key Metrics Changes - The company plans to enter the California market in Q2 2026, which is significantly larger than New York, with a written premium market of $15 billion [9][10] - The California market is characterized by a supply-demand imbalance for homeowners coverage, which the company aims to address with its E&S approach [10][53] Company Strategy and Development Direction - The company has set a five-year goal of $500 million in direct premiums written by year-end 2029, focusing on growth in New York and measured expansion into new markets [9][14] - The company emphasizes maintaining underwriting discipline and not chasing volume at the expense of quality [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic direction and the ability to navigate competitive pressures in New York [46] - The guidance for 2026 includes direct premiums written growth of 16%-20% and an underlying combined ratio of 74%-76%, reflecting a normalization of catastrophe losses [12][23] Other Important Information - The company has no debt and reported shareholder equity of $122.7 million, an increase of 84% during the year [24] - The expense ratio improved to 30%, down from 41% in 2021, marking a significant milestone for the company [21] Q&A Session Summary Question: Differences in California Risks - Management highlighted that California is a large, dislocated market and will use the same Select product with modifications for local conditions [30][31] Question: Quota Share for California Business - The company will start with a 30% quota share for California to manage risks effectively [33] Question: Competition in New York - Management noted that while competition is increasing, the company has a strong position due to its effective risk management and producer relationships [46]

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