Financial Data and Key Metrics Changes - Hippo generated over $1.1 billion of Gross Written Premium for the first time, an increase of 24% year-over-year [5] - Net Written Premium for the year was $422 million, up 13% [5] - Net Income for the year was $58 million, reflecting a significant improvement [18] - Q4 Gross Written Premium grew 40% year-over-year to $288 million [13] - Q4 Adjusted Net Income grew 20% year-over-year to $18 million [18] Business Line Data and Key Metrics Changes - Homeowners business wrote $379 million of Gross Written Premium, down approximately 10% from the prior year [7] - Renters business produced $175 million Gross Written Premium for the year, a 19% increase year-over-year [8] - Commercial multi-peril delivered $265 million of Gross Written Premium, increasing 75% over 2024 [9] - Casualty business grew 92% to $264 million of Gross Written Premium [9] Market Data and Key Metrics Changes - Homeowners accounted for 34% of Gross Written Premium in 2025, down from 47% in 2024, indicating ongoing portfolio diversification [14] - Casualty and Commercial multi-peril each accounted for 24% of 2025 Gross Written Premium [13] Company Strategy and Development Direction - Hippo's strategy focuses on three pillars: Strategic Diversification, Unlocking Market Growth, and Optimized for Risk Management [6] - The company aims to achieve over $2 billion in Gross Written Premium and $125 million in Adjusted Net Income by 2028 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving and exceeding 2028 targets, with expectations for continued growth in newer lines of business [20] - The Homeowners business is expected to return to growth in 2026, driven by strategic partnerships and improved product offerings [21] Other Important Information - The Net Combined Ratio improved by 25 percentage points to 113% compared to 2024 [17] - Total Hippo shareholders' equity at the end of the quarter was $436 million, up 17% from the previous year [19] Q&A Session Summary Question: About the relaunch of the Homeowners book outside of Builders - Management discussed a thoughtful go-to-market strategy, emphasizing improved product terms and conditions, and plans to expand partnerships [24][25] Question: Insights on the casualty business growth - Management detailed the diverse portfolio underlying the casualty business, including cyber insurance and commercial GL, and discussed plans to increase retention thoughtfully [26][27][29] Question: Reserve development in the quarter - Management indicated that reserve development was primarily driven by one large liability claim in the Homeowners business, but overall reserve outlook remains positive [33][34] Question: Expected renewal premium increases in Homeowners - Management expects premium changes to continue in 2026, trending faster than loss costs, while maintaining rate adequacy [35][36][38]

Financial Data and Key Metrics Changes - Hippo generated over $1.1 billion in Gross Written Premium for the first time, an increase of 24% year-over-year [5] - Net Written Premium for the year was $422 million, up 13% [5] - Net Income for the year was $58 million, reflecting a significant improvement [19] - Adjusted Net Income for Q4 grew 20% year-over-year to $18 million [19] - Total shareholders' equity at the end of the quarter was $436 million, up 17% from the previous year [20] Business Line Data and Key Metrics Changes - Homeowners business wrote $379 million in gross written premium, down approximately 10% from the prior year [7] - Renters business produced $175 million in gross written premium, a 19% increase year-over-year [8] - Commercial multi-peril gross written premium increased 75% over 2024 to $265 million [9] - Casualty business grew 92% to $264 million in gross written premium [9] - Homeowners accounted for 34% of gross written premium, down from 47% in 2024 [15] Market Data and Key Metrics Changes - Casualty accounted for 24% of 2025 Gross Written Premium, reflecting strong growth [14] - Commercial multi-peril also accounted for 24% of 2025 Gross Written Premium [14] - Homeowners business saw a decline in market share, indicating a shift in portfolio diversification [15] Company Strategy and Development Direction - Hippo aims to achieve over $2 billion in Gross Written Premium by 2028, with a focus on strategic diversification and optimized risk management [6] - The company is expanding its premium base across personal and commercial lines to build a more balanced portfolio [6] - The relaunch of the homeowners product line is being approached thoughtfully, with a focus on profitability and competitiveness [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving and exceeding 2028 targets, citing positive momentum entering 2026 [6] - The competitive environment in homeowners is acknowledged, with a focus on improving product offerings and partnerships [24] - Management expects the homeowners business to return to growth in 2026, driven by strategic partnerships and improved product terms [25] Other Important Information - The company is leveraging its diversified portfolio and risk management capabilities to optimize performance across market cycles [6] - The net Combined Ratio improved by 25 percentage points to 113% for the full year [18] Q&A Session Summary Question: Can you discuss the relaunch of the homeowners book outside of Builders? - Management highlighted a thoughtful go-to-market strategy, focusing on profitability and competitiveness, with plans to expand partnerships and distribution [24][25] Question: What drives the growth in the casualty business? - The casualty business includes diverse exposures such as cyber insurance and commercial GL, with a focus on maintaining low risk participation [26][28] Question: What drove the reserve development in the quarter? - A large liability claim in the homeowners business impacted reserves, but overall reserve development for the year was positive [33][34] Question: How do you expect renewal premium increases in homeowners to trend? - Management expects premium increases to continue, albeit at a lower rate than the 15% achieved in 2025, while remaining ahead of loss costs [35][37]

4th Quarter 2025 Financial Results February 25th, 2026 Disclaimers Forward-looking Statements Safe Harbor Certain statements included in this presentation that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan, ...

Core Insights - Bowhead Specialty Holdings Inc. achieved a 21% increase in gross written premiums (GWP) in Q4 to $224 million and a 24% increase for the full year to approximately $863 million, driven primarily by disciplined premium growth in the casualty division [1][2][19] - The company reported a 30% growth in adjusted net income for the year, with an adjusted return on equity of 13.6% and diluted adjusted earnings per share of $1.65 [2][19] - The casualty division was the largest contributor to GWP growth, with a 26% increase in Q4 to $133 million and a 28% increase for the full year to $551 million, largely due to the excess casualty portfolio [1][19] Financial Performance - The expense ratio improved to below 30% for the year, better than the low-30s range initially expected, contributing to the overall profitability [2][28] - The loss ratio for 2025 was reported at 66.7%, an increase of 2.3 points from 2024, influenced by higher expected loss ratios and portfolio mix changes [20][27] - The company’s investment portfolio saw a 36% increase in pretax net investment income for Q4 and a 44% increase for the year, totaling $57.8 million [29] Growth Drivers - The fourth quarter's growth was bolstered by the approval of construction projects, which added nearly 30% to casualty premiums [5] - The cyber liability portfolio and healthcare management liability were significant contributors to full-year growth, with GWP in healthcare increasing 14% to $116 million [6][19] - The digital underwriting model, including the Baleen initiative, is expected to drive future growth, with Baleen generating over $21 million for the year [7][19] Underwriting Strategy - The company employs two underwriting models: a craft underwriting model for complex risks and a digital underwriting model for small, harder-to-place risks [8][9] - The craft model accounted for over 97% of GWP in 2025, while the digital model is designed for speed and efficiency in decision-making [10] - Bowhead Specialty Holdings Inc. maintains a disciplined approach to underwriting, focusing on profitability over volume and avoiding high-risk classes [16][17] Future Outlook - The company anticipates a GWP growth of around 20% for 2026, primarily driven by the casualty division and digital capabilities [11][30] - The expense ratio is expected to remain below 30% due to ongoing scaling and technology initiatives [32] - The company plans to extend the duration of its investment portfolio from 3 to 4 years to better match liabilities [33]

Financial Data and Key Metrics Changes - Bowhead achieved disciplined premium growth of 24% for the year, surpassing the original expectation of 20% [5] - Adjusted net income grew over 30% for the year, with an adjusted return on equity of 13.6% and diluted adjusted earnings per share of $1.65 [5][20] - Gross written premiums (GWP) increased 21% in Q4 to $224 million, and 24% for the full year to approximately $863 million [6][20] Business Line Data and Key Metrics Changes - Casualty division drove GWP growth, increasing approximately 26% in Q4 to $133 million, and 28% for the full year to $551 million [7] - Professional liability division GWP increased approximately 4% in Q4 to $48 million and 9% for the full year to $174 million, primarily driven by the cyber liability portfolio [8] - Healthcare liability division GWP increased approximately 8% in Q4 to $34 million and 14% for the full year to $116 million, with growth driven by healthcare management liability and senior care portfolios [8] Market Data and Key Metrics Changes - The current accident year loss ratio increased 1.8 points due to higher expected loss ratios and trends after the annual reserve review [21] - The overall loss ratio for 2025 was 66.7%, an increase of 2.3 points compared to 64.4% in 2024 [21] - The investment portfolio's pre-tax net investment income for the quarter increased approximately 36% to $16.6 million, and 44% for the year to $57.8 million [28] Company Strategy and Development Direction - Bowhead aims for sustainable and profitable growth across market cycles through two underwriting models: craft underwriting and digital underwriting [9][10] - The company expects profitable premium growth of around 20% for 2026, primarily driven by the casualty division and digital capabilities [12][29] - Investments in technology and talent are expected to enhance the company's ability to capture more opportunities [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current market, noting a healthy balance of rate and limit management [18] - The company anticipates that social inflation and litigation funding will continue to impact the market, but remains focused on disciplined risk selection [17] - Management highlighted that submissions are growing faster than they can quote, indicating strong demand for their offerings [19] Other Important Information - The company issued $150 million of 7.75% senior unsecured notes scheduled to mature on December 1, 2030, to support regulatory capital requirements [31] - The effective tax rate for the year was 20.1%, which may vary due to state taxes and stock-based compensation [28] Q&A Session Summary Question: What does the prior year reserve development imply for price adequacy for 2026 for professional and healthcare? - Management believes they are priced well, with pricing coming in above trend, and adjustments were made conservatively [33] Question: How should we think of a mature Baleen in terms of loss ratio characteristics? - Management expects Baleen's loss ratio to be superior to the general large casualty business due to the restricted nature of coverage [36] Question: How do you translate industry data into the loss ratio picks? - The company uses proprietary information from a third-party actuary to tailor industry benchmarks to their portfolio [39] Question: What is the long-term target for the expense ratio? - Management aims to keep the expense ratio below 30%, leveraging technology initiatives to improve efficiencies [41] Question: Is there any sign that pricing environment in Excess Casualty is beginning to plateau? - Management noted a lumpy moderation in the market but believes that rate is exceeding loss trend overall [46] Question: Will technology allow for disintermediation of brokers? - Management does not foresee disintermediation happening soon, as the complexity of specialty insurance requires broker involvement [48] Question: How much did mix contribute to the actual loss ratio uptick in 2025? - Management indicated that they will review loss picks quarterly and adjust as necessary, but could not provide a precise number for next year [52] Question: How much of the lower expense ratio guide for 2026 is attributable to scale versus mix? - The improvement is attributed to technology initiatives across both digital and craft businesses [69]

Financial Data and Key Metrics Changes - Bowhead achieved disciplined premium growth of 24% for the year, surpassing the original expectation of 20% [6] - Adjusted net income grew over 30% for the year, with an adjusted return on equity of 13.6% and diluted adjusted earnings per share of $1.65 [6][21] - Gross written premiums (GWP) increased 21% in Q4 to $224 million, and 24% for the full year to approximately $863 million [6][21] Business Line Data and Key Metrics Changes - Casualty division drove GWP growth, increasing approximately 26% in Q4 to $133 million, and 28% for the full year to $551 million [7] - Professional liability GWP increased approximately 4% in Q4 to $48 million and 9% for the full year to $174 million, primarily driven by the cyber liability portfolio [8] - Healthcare liability GWP increased approximately 8% in Q4 to $34 million and 14% for the full year to $116 million, driven by healthcare management liability and senior care portfolios [9] Market Data and Key Metrics Changes - The current accident year loss ratio increased 1.8 points, partly due to higher expected loss ratios and trends after the annual reserve review [22] - The overall loss ratio for 2025 was 66.7%, an increase of 2.3 points compared to 64.4% in 2024 [22] - The investment portfolio's pre-tax net investment income increased approximately 36% to $16.6 million for Q4, and 44% for the year to $57.8 million [29] Company Strategy and Development Direction - Bowhead aims for sustainable and profitable growth across market cycles, utilizing two complementary underwriting models: craft underwriting and digital underwriting [10][11] - The company expects profitable premium growth of around 20% for 2026, primarily driven by the casualty division and digital capabilities [13][30] - Investments in technology and talent are expected to enhance the ability to capture more opportunities that fit the company's appetite [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to grow profitably despite a competitive market, noting a healthy balance of rate and limit management [19] - The company anticipates a loss ratio in the mid to high 60s for 2026, with an expense ratio below 30% due to continued scaling and technology initiatives [31] - Management highlighted the importance of disciplined risk selection and the ability to walk away from unprofitable deals [19] Other Important Information - Total equity was $449 million, resulting in a diluted book value per share of $13.45, an increase of 22% from year-end 2024 [30] - The company issued $150 million of 7.75% senior unsecured notes scheduled to mature on December 1, 2030, to support regulatory capital requirements [32] Q&A Session Summary Question: Price adequacy for 2026 for professional and healthcare lines - Management believes pricing is above trend and adjustments are conservative, with no significant pricing impact expected [34] Question: Baleen's loss ratio characteristics - Management expects Baleen's loss ratio to be superior to the general large casualty business due to the restricted nature of coverage [36] Question: Industry data translation into loss ratio picks - The company uses proprietary information from third-party actuaries to tailor industry benchmarks to its portfolio [39] Question: Expense ratio target and future expectations - Management aims to reduce the expense ratio further, leveraging technology initiatives while facing headwinds from increased acquisition costs [41] Question: Pricing environment in Excess Casualty - Management noted a moderation in the market but believes that rates are still exceeding loss trends [44] Question: Disintermediation of brokers - Management does not foresee disintermediation of brokers due to the complexity of specialty insurance [48] Question: Growth of Baleen and investment portfolio risk profile - Management indicated that growth in Baleen is improving due to increased acceptance and infrastructure, while maintaining a conservative investment portfolio [62][64]

Financial Data and Key Metrics Changes - Bowhead achieved a disciplined premium growth of 24% for the year, surpassing the original expectation of 20% [6] - Adjusted net income increased by over 30% for the year, with an adjusted return on equity of 13.6% and diluted adjusted earnings per share of $1.65 [6][21] - Gross written premiums (GWP) rose 21% in Q4 to $224 million and 24% for the full year to approximately $863 million [6][21] Business Line Data and Key Metrics Changes - In the casualty division, GWP increased approximately 26% in Q4 to $133 million and 28% for the full year to $551 million, primarily driven by the excess casualty portfolio [7] - Professional liability GWP grew approximately 4% in Q4 to $48 million and 9% for the full year to $174 million, mainly due to the cyber liability portfolio [8] - Healthcare liability GWP increased approximately 8% in Q4 to $34 million and 14% for the full year to $116 million, driven by healthcare management liability and senior care portfolios [9] Market Data and Key Metrics Changes - The casualty market is experiencing a positive rate environment, with Bowhead benefiting from disciplined risk selection and limit management [19] - The company noted that submissions are growing faster than they can quote, indicating a strong demand in the market [20] Company Strategy and Development Direction - Bowhead aims for sustainable and profitable growth across market cycles through two complementary underwriting models: craft underwriting and digital underwriting [10] - The digital underwriting model, initiated with Baleen, focuses on small, harder-to-place risks and aims to improve efficiency through technology [11] - The company expects profitable premium growth of around 20% for 2026, primarily driven by the casualty division and digital capabilities [13][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current market conditions, noting a healthy balance of rate and limit management [19] - The company anticipates a loss ratio in the mid to high 60s for 2026, with an expense ratio below 30% due to ongoing scaling and technology initiatives [31] Other Important Information - Bowhead's investment portfolio saw a pre-tax net investment income increase of approximately 36% in Q4 to $16.6 million and 44% for the year to $57.8 million [29] - Total equity reached $449 million, resulting in a diluted book value per share of $13.45, a 22% increase from year-end 2024 [30] Q&A Session Summary Question: What does the prior year reserve development imply for price adequacy for 2026? - Management believes they are priced well, with pricing coming in above trend, and adjustments were made conservatively without significant pricing impact [34] Question: How should we think about the loss ratio characteristics of Baleen as it matures? - Management expects Baleen's loss ratio to be superior to the general large casualty business due to the restricted nature of its coverage [36] Question: How does the company translate industry data into loss ratio picks? - The company utilizes third-party actuaries with proprietary information tailored to their portfolio, enhancing their reserving conservatism [39] Question: What is the long-term target for the expense ratio? - Management aims to keep the expense ratio below 30%, driven by technology initiatives and operational efficiencies [41] Question: Is there a sign that the pricing environment for excess casualty is beginning to plateau? - Management noted a moderation in the market but indicated that rates are still exceeding loss trends overall [44] Question: Will technology advancements lead to disintermediation of brokers? - Management does not foresee disintermediation, emphasizing the complexity of specialty insurance that requires broker expertise [48]

Core Insights - Palomar Holdings, Inc. will host a fireside chat at the 47th Annual Raymond James Institutional Investors Conference on March 2, 2026, at 2:15 pm ET, featuring CEO Mac Armstrong and CFO Chris Uchida [1] - Management will also be available for one-on-one and small group meetings with investors during the conference [1] Company Overview - Palomar Holdings, Inc. is the holding company for several subsidiaries, including Palomar Specialty Insurance Company, Palomar Specialty Reinsurance Company Bermuda Ltd., and others, providing a range of insurance services [3] - The company specializes in five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop [3] - Palomar's insurance subsidiaries have received strong financial strength ratings, with PSIC, PSRE, PESIC, and FIA rated "A" (Excellent) and PCSC rated "A-" (Excellent) by A.M. Best [3]

Core Insights - The company achieved an all-time high in employee engagement scores and completed significant sales of Armada MGA and Acadian MGA, generating $390 million in liquidity and nearly $200 million in off-balance sheet value [1][17] - The operating return on equity for 2025 was reported at 16.2%, exceeding the target range of 12% to 15% [3][5] - The company experienced strong growth in gross written premiums, with an 18% increase in the fourth quarter and a 16% increase for the full year [2][4] Financial Performance - The core combined ratio stood at 92.9%, reflecting strong underwriting results despite historical one-off acquisition costs [2][25] - Operating income for 2025 reached $310 million, a 49% increase year-over-year, with diluted book value per share growing by 28% [21][24] - The company reported a net income increase of 141% to $444 million for 2025 [23][24] Underwriting and Growth Strategy - The accident and health segment grew by 23% in 2025, contributing significantly to overall growth, with 60% of growth coming from lines less correlated with property and casualty pricing cycles [10][7] - The company is focusing on a disciplined underwriting strategy and has added three new MGA partners, maintaining a rigorous selection process [15][16] - The company plans to prioritize underwriting performance over growth, with a focus on maintaining a lower volatility portfolio [8][9] Acquisitions and Future Outlook - The acquisition of Assist America and World Nomads is expected to enhance the company's service offerings and contribute an additional $4 million to $5 million in EBITDA annually post-integration [12][13][14] - The company intends to repurchase $100 million of outstanding common shares over the next twelve months, which is expected to be accretive to EPS and ROE [20][44] - The company anticipates a challenging insurance market in 2026 but believes it can maintain current performance levels due to its diversified portfolio [6][49]

Financial Data and Key Metrics Changes - The company's top line grew by 16% in 2025, with diluted book value per share increasing by 28% [4][22] - Operating earnings per share rose by 49% year-over-year, with a full-year operating return on equity of 16.2%, exceeding the target of 12%-15% [5][25] - The fourth quarter saw an operating return on equity of 17.1% and a GAAP return on equity of 44.9% due to the sale of Armada for $250 million [5][25] - The core combined ratio improved to 92.9%, despite historical one-off acquisition costs [5][26] Business Line Data and Key Metrics Changes - Gross written premiums grew by 18% in the fourth quarter, with accident and health premiums increasing by 23% to around $1 billion, representing 27% of the business mix [6][12] - The insurance and services segment reported a combined ratio of 93.3% for the fourth quarter, with a full-year combined ratio of 91.7% [30][31] - Casualty premiums increased by 8% for the year, with firm pricing observed in certain areas, while other specialties like surety saw strong growth [32][33] Market Data and Key Metrics Changes - 60% of the company's growth in 2025 came from lines less correlated with property and casualty pricing cycles, with accident and health being the largest contributor [10][12] - The company anticipates tougher market conditions in 2026 but believes it can maintain current profitability levels due to its diversified portfolio [9][10] Company Strategy and Development Direction - The company aims to focus on underwriting performance over growth, targeting higher growth in insurance compared to reinsurance [11][12] - Recent acquisitions, including Assist America and World Nomads, are expected to enhance service offerings and contribute to fee income growth [14][15] - The company emphasizes a disciplined approach to onboarding new distribution partners, rejecting over 90% of opportunities presented [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that while market conditions may be tougher in 2026, the company is well-positioned to maintain performance due to its diversified portfolio and focus on specialist MGAs [9][10] - The company is committed to prudent capital management and has plans for a $100 million share buyback to enhance shareholder value [21][43] Other Important Information - The company reported a net income increase of 141% to $444 million for 2025, with a return on equity of 22.1% [25][26] - The BSCR ratio improved to 247% in the fourth quarter, indicating a strong capital position [42][43] Q&A Session Summary Question: Market conditions in 2026 and combined ratio outlook - Management recognizes tougher market conditions but believes the combined ratio of 91.7% is a good run rate for 2026, with potential for slight adjustments based on mix [47][49][52] Question: Fee income expectations for 2026 - The fee income run rate is expected to be around $30 million, with potential growth to $40 million post-acquisition integration [54][56] Question: Sustainability of Surety business growth - Management believes the growth in Surety is sustainable, with minimal exposure to government infrastructure and data centers, indicating a strong pipeline for future growth [59][61] Question: Rate environment for casualty insurance - The rate environment is expected to remain disciplined, with management feeling positive about the outlook for casualty insurance [68][69] Question: Talent acquisition focus areas - The company is attracting underwriting and functional talent across the organization, enhancing its capabilities [70][71] Question: Retention rate opportunities - Management sees continued opportunities for improving retention rates, emphasizing a risk management approach [72][73]