Financial Performance - For the full year, the company reported a net income of $106.8 million and a core income of $103.7 million, reflecting an increase of $26.8 million [1] - The combined ratio was 60.1% for the full year, with a non-GAAP underlying combined ratio of 61.5%, which is below the target of 65% [1][4] - In Q4 2025, net income was $26.6 million and core income was $25.8 million, primarily due to a $20.5 million decrease in incurred losses from the previous year [2] Premium Trends - Written premiums fell approximately 19% year-over-year due to rate decreases but rebounded about 59% sequentially in Q4 2025 [6][7] - Net premiums earned for the full year were $306.8 million, exceeding the midpoint of the company's guidance range of $290 million to $320 million [7] Underwriting and Market Conditions - The company maintained underwriting discipline amid a competitive commercial property market, which contributed to lower catastrophe losses compared to the prior year [4] - The rate environment is characterized as falling, linked to Florida legislative reforms that have reduced reinsurance costs and incurred losses [7][8] Expense Management - Operating expenses for Q4 decreased by $1.3 million, or 3.4%, while total expenses for the full year remained flat year-over-year [10] - The company experienced an increase in operating costs by $22.6 million, largely due to reduced ceding commissions, offset by retention related to Hurricane Milton [10] Balance Sheet and Capital Actions - Cash and investments grew by 19.8% in 2025 to $647.7 million, and stockholders' equity increased by 34.8% to $317.6 million [13] - The company declared a special dividend of $0.75 per share in Q4, totaling $36.6 million [13] Growth Initiatives - The company is pursuing growth in the excess and surplus (E&S) market through its ACES unit, which is expected to contribute ≤5% of 2026 revenue [5][15] - A partnership with AmRisc is expected to generate approximately $100 million in premiums, with premium recognition starting in March [16] Reinsurance Strategy - Reinsurance costs have been trending lower, with successful placements of catastrophe programs leading to reduced pricing on a risk-adjusted basis [11] - The company aims to align loss costs and reinsurance costs with premium rate changes to protect margins [11]