Financial Data and Key Metrics Changes - Adjusted net income for Q3 2025 was $18 million, with gross written premium growing by 33% year over year to $311 million, up from $234 million in Q3 2024 [5][13] - Net written premium increased by 30% year over year to $118 million, up from $91 million in Q3 2024 [15] - Consolidated net income for Q3 was $98 million, or $3.77 per diluted share, a $107 million improvement year over year [19] - Total shareholders' equity at the end of the quarter was $422 million, up 14% from $362 million at year-end 2024 [19][20] Business Line Data and Key Metrics Changes - Casualty increased to 25% of gross written premium, up from 14% last year, while commercial and multi-peril increased to 21%, up from 13% [14] - Homeowners decreased from 47% of gross written premium in Q3 2024 to 32% in Q3 2025 [14] - Renters increased to 22% of net written premium, up from 10% last year, with a significant growth of 203% year over year [15][16] Market Data and Key Metrics Changes - The company bound its first new policies with Westwood Insurance Agency, which is expected to triple access to annual new home closings [7] - The underwriting results improved significantly, with a net loss ratio improving by 25 percentage points year over year to 48% [9][17] Company Strategy and Development Direction - The company is focusing on three strategic pillars: strategic diversification, unlocking market growth, and optimized risk management [6] - The introduction of a new reporting structure aligns with a unified way of managing the business, emphasizing gross and net premium by line of business [12] - The company anticipates growth in the homeowners market over the next three years, aiming for over $2 billion in premium by 2028 [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underwriting discipline and the ability to maintain pricing standards amid increased competition [8] - The company raised its full-year 2025 guidance for gross written premium to a range of $1.09-$1.11 billion, reflecting expectations for continued growth in newer lines of business [20] - The consolidated net loss ratio guidance was improved to a range of 63%-64%, driven by positive loss trends [21] Other Important Information - The company appointed Robin Gordon as Chief Data Officer to enhance risk management and customer experience [10] - The consolidated combined ratio improved by 28 percentage points year over year to 100% [18] Q&A Session Summary Question: Growth in casualty business - Management noted that casualty growth is a combination of cyber, commercial general liability, and other lines, with a cautious approach to risk retention until profitability is established [25][26] Question: Competition in homeowners market - Management indicated that the admitted market is rebounding, leading to increased competition, but they feel confident in their pricing adequacy [27] Question: Future business mix by 2028 - Management expects to diversify further while anticipating growth in the homeowners market, aiming for over $2 billion in premium by 2028 [30][31] Question: Share repurchases and capital use - Management stated that capital will be used for portfolio growth and potential acquisitions to accelerate diversification [34]

Financial Data and Key Metrics Changes - In Q2 2025, gross written premium grew 16% year over year to $299 million, up from $258 million in Q2 2024 [16] - Revenue increased by 31% to $117 million, up from $90 million in Q2 2024 [17] - Consolidated net loss ratio improved by 46 percentage points year over year to 47% [18] - Q2 net income was $1 million, a $41 million improvement compared to Q2 2024 [21] - Adjusted net income for Q2 was $17 million, a $37 million improvement compared to Q2 2024 [22] Business Line Data and Key Metrics Changes - The hybrid fronting programs contributed $24 million in organic growth, while new programs added $23 million [16] - The HJP segment saw a 9% year over year reduction in gross written premium due to reduced CapEx exposure from existing homes [16] - Premium retention increased by nine percentage points to 39%, up from 30% in Q2 2024 [17] Market Data and Key Metrics Changes - The partnership with Baldwin Group is expected to triple access to new home closings, enhancing premium growth and geographic diversification [10] - The company anticipates that the Baldwin partnership will support continued expansion within the new homes channel [17] Company Strategy and Development Direction - The strategic plan focuses on three pillars: strategic diversification, optimizing risk management, and strengthening financial position [6][7] - The company aims to build a well-balanced portfolio of insurance risks to deliver superior returns on capital [10] - The long-term financial targets include gross written premium over $2 billion and adjusted net income over $125 million by 2028 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term trajectory of the business, citing strong performance across key financial metrics [14] - The company plans to remain opportunistic in adjusting premium retention based on market conditions and return on equity [18] - Management acknowledged the challenges in the homeowners insurance market but emphasized the importance of proactive services to mitigate risks [44][46] Other Important Information - The company raised its full-year guidance for gross written premium from $1.05 billion - $1.1 billion to $1.07 billion - $1.1 billion [24] - The sale of the homebuilder distribution network is expected to record a gain of approximately $90 million in consolidated financial statements [22] Q&A Session Summary Question: Discussion on guidance for 2025 and rate approvals for HHIP product - Management indicated that while substantial rate increases are largely completed, they will continue to take smaller rate actions as needed [29] Question: Clarification on net loss ratio and cat loss ratio components - Management confirmed unchanged guidance for the second half, with specific cat load expectations for Q3 and Q4 [33] Question: Inquiry about reinsurance structure and per event limits - Management explained that they do not disclose specific per event limits but emphasized their ample reinsurance protection for potential large losses [39][40] Question: Update on homeowners insurance market dynamics - Management acknowledged the challenges in the homeowners market and discussed strategies to mitigate weather-related risks [44][46] Question: Operating leverage and fixed cost investments - Management stated that while fixed expenses may increase, they expect operating leverage to grow slower, allowing for continued profitability [52][54] Question: Criteria for MGA partner selection - Management highlighted the importance of risk evaluation and portfolio balance when selecting new MGA partners [58][60]