# UNITED FIRE GROUP INC (UFCS) Informational only - not investment advice. CIK: 0000101199 SIC: 6331 Fire, Marine & Casualty Insurance SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Insurance Carriers](/major-group/63/) > [SIC 6331 Fire, Marine & Casualty Insurance](/industry/6331/) Latest 10-K filed: 2026-02-26 SEC page: https://www.sec.gov/edgar/browse/?CIK=101199 Filing source: https://www.sec.gov/Archives/edgar/data/101199/000010119926000015/ufcs-20251231.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 1386412000 | USD | 2025 | 2026-02-26 | | Net income | 118191000 | USD | 2025 | 2026-02-26 | | Assets | 3840789000 | USD | 2025 | 2026-02-26 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000101199.json. Derived margins are computed from the extracted annual SEC facts. | Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 996,362,000 | 1,052,737,000 | 1,070,166,000 | 1,201,165,000 | 1,068,627,000 | 1,066,191,000 | 980,286,000 | 1,095,467,000 | 1,253,307,000 | 1,386,412,000 | | Net income | | 49,904,000 | 51,023,000 | 27,650,000 | 14,820,000 | -112,706,000 | 80,594,000 | 15,031,000 | -29,700,000 | 61,957,000 | 118,191,000 | | Diluted EPS | 3.53 | 1.93 | 1.99 | 1.08 | 0.58 | -4.50 | | 0.59 | -1.18 | 2.39 | 4.48 | | Assets | | 4,054,758,000 | 4,183,431,000 | 2,816,698,000 | 3,013,472,000 | 3,069,678,000 | 3,012,721,000 | 2,882,286,000 | 3,144,190,000 | 3,488,469,000 | 3,840,789,000 | | Liabilities | | 3,112,874,000 | 3,210,058,000 | 1,928,323,000 | 2,103,000,000 | 2,244,529,000 | 2,133,600,000 | 2,142,172,000 | 2,410,445,000 | 2,706,938,000 | 2,899,619,000 | | Stockholders' equity | | 941,884,000 | 973,373,000 | 888,375,000 | 910,472,000 | 825,149,000 | 879,121,000 | 740,114,000 | 733,745,000 | 781,531,000 | 941,170,000 | | Cash and cash equivalents | | 89,194,000 | 95,562,000 | 64,454,000 | 120,722,000 | 87,948,000 | 132,104,000 | 96,650,000 | 102,046,000 | 200,949,000 | 156,332,000 | | Net margin | | 5.01% | 4.85% | 2.58% | 1.23% | -10.55% | 7.56% | 1.53% | -2.71% | 4.94% | 8.52% | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000101199.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-30 | | | -0.42 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | -0.91 | reported discrete quarter | | 2023-Q2 | 2023-03-31 | | 694,000 | | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.03 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 267,089,000 | | -2.23 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | -56,382,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 273,955,000 | | 0.25 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 287,319,000 | 19,608,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 295,999,000 | 13,502,000 | 0.52 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | 13,502,000 | | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | -2,735,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 301,169,000 | | -0.11 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 322,964,000 | | 0.76 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 333,175,000 | 31,442,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 331,115,000 | 17,700,000 | 0.67 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 335,473,000 | 22,947,000 | 0.87 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 354,018,000 | 39,190,000 | 1.49 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 365,806,000 | 38,354,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 369,442,000 | 30,052,000 | 1.15 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/101199/000010119926000031/ufcs-20260331.htm Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high Filing date: 2026-05-06 Report date: 2026-03-31 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with Part I, Item 1 "Financial Statements and Supplementary Data." CRITICAL ACCOUNTING POLICIES Critical accounting policies are defined as those that are representative of significant judgments and uncertainties and that may result in materially different results under different assumptions and conditions. We base our discussion and analysis of our consolidated financial condition and results of operations on the amounts reported in our Consolidated Financial Statements, which we have prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). As we prepare these Consolidated Financial Statements, we must make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses for the reporting period. We evaluate our estimates on an ongoing basis. We base our estimates on historical experience and on other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. Our critical accounting policies are more fully described in our Management's Discussion and Analysis of Financial Condition and Results of Operations presented in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025, filed on February 26, 2026. There have been no changes in our critical accounting policies from December 31, 2025. INTRODUCTION The purpose of this Management's Discussion and Analysis is to provide an understanding of our results of operations and consolidated financial condition. Our Management's Discussion and Analysis should be read in conjunction with our Consolidated Financial Statements and related notes, including those in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2025. Our Consolidated Financial Statements are prepared in accordance with GAAP. We also prepare financial statements for each of our insurance company subsidiaries based on statutory accounting principles and file them with insurance regulatory authorities in the states where they do business. When we provide information on a statutory or other basis, we label it as such, otherwise all other data is presented in accordance with GAAP. BUSINESS OVERVIEW Originally founded in 1946 as United Fire & Casualty Company, United Fire Group, Inc. ("UFG," the "Company," "we," "us," or "our") and its consolidated insurance subsidiaries provide insurance protection for individuals and businesses through several regional companies. Our property and casualty insurance company subsidiaries are licensed in 50 states and the District of Columbia and are represented by approximately 850 independent property and casualty agencies, along with contract surety and commercial surety bonds offered through approximately 160 surety agencies. Reportable Segments Our property and casualty insurance business operates and reports as one business segment. For more information, refer to Note 13 "Segment Information" in Part I, Item 1. 26 Table of Contents Products and Lines of Business Our business consists primarily of commercial lines property and casualty insurance, including surety bonds. Our core commercial products support a wide variety of customers including small business owners and middle market businesses operating in industries such as construction, services, retail trade, financial and manufacturing, along with contract surety and commercial surety bonds offered through approximately 850 independent property and casualty agencies. We also provide specialty and surplus lines coverage written exclusively through wholesale brokers on an admitted and non-admitted basis. The Company also participates as a member of Lloyd's of London syndicates through our insurance subsidiary, McIntyre Cedar Corporate Member LLP. Additionally, the Company offers reinsurance coverage for property and casualty insurance through traditional treaty reinsurance channels. The reinsurance operation supports primarily commercial lines of business but also assumes risk in professional, financial and personal lines of insurance. We also partner with Management General Agents ("MGAs") to offer delegated underwriting programs providing niche products including marine specialty, professional liability and earthquake coverages. We review and report our results using lines of business. The following table shows the principal types of property and casualty insurance policies we write and issue, and in which lines of business they are reported: Direct Writer Treaty Reinsurance(1) Lloyd's of London MGAs Commercial Lines Other Liability x P x Fire and allied lines x P x Automobile x P Workers' compensation x P Surety(2) x P Miscellaneous x x Personal Lines Fire and allied lines P Automobile P Miscellaneous P Reinsurance Assumed NP x (1) Treaty Reinsurance is split between proportional reinsurance (P) and non-proportional reinsurance (NP). (2) Commercial lines "Surety" previously referred to as "Fidelity and surety." Commercial other liability - primarily business insurance covering bodily injury and property damage including construction defect, excess and surplus lines excess casualty, and standard umbrella. Proportional assumed reinsurance on these lines and professional liability coverage managed by an MGA partner. Commercial fire and allied lines - primarily multi-peril non-liability property coverage and inland marine. Proportional assumed reinsurance on these lines and earthquake coverage managed by an MGA partner. Commercial automobile - physical damage to an insured's vehicle, as well as liabilities to third parties. Automobile physical damage insurance covers loss or damage to vehicles from collision, vandalism, fire, theft, flood or other causes. Automobile liability insurance covers bodily injury, damage to property resulting from automobile accidents caused by the insured, uninsured or under-insured motorists and the legal costs of defending the insured against lawsuits. Proportional reinsurance on these lines is also included. Workers' compensation - business coverage for employees who are injured or become ill as a result of their job, including proportional assumed reinsurance for this coverage. Our workers' compensation insurance covers primarily small- to mid-sized accounts. 27 Table of Contents Surety - contract and commercial surety bond coverage which guarantees performance and payment by our bonded principals, protects owners from failure to perform on the part of our principals, and protects material suppliers and subcontractors from nonpayment by our contractors. Proportional reinsurance on these lines is also included. Commercial miscellaneous - commercial theft coverage, boiler and machinery and ocean marine business managed by an MGA partner. Personal fire and allied lines - proportional assumed reinsurance for homeowners multi-peril coverage. Reinsurance assumed - primarily non-proportional assumed reinsurance and Funds at Lloyd's property and casualty syndicates. Lloyd's of London ("Lloyds") Syndicates The Company is a member of Lloyd's through its insurance subsidiary, McIntyre Cedar Corporate Member LLP. Lloyd's operates as an insurance marketplace whereby members join syndicates to underwrite property and casualty and reinsurance business through a managing agent in return for receiving premiums. The Company participates in 13 syndicates as of March 31, 2026. The Company is required to maintain capital at Lloyd's, referred to as Funds at Lloyd's ("FAL"), to support participation in these syndicates. Pooling Arrangement All of our property and casualty insurance subsidiaries belong to an intercompany reinsurance pooling arrangement. Pooling arrangements permit the participating companies to rely on the capacity of the entire pool's capital and surplus, rather than being limited to policy exposures of a size commensurate with each participant's own surplus level. Under such arrangements, the members share substantially all of the insurance business that is written and allocate the combined premiums, losses and expenses based on percentages defined in the arrangement. Geographic Concentration For the three-month period ended March 31, 2026, approximately 50 percent of our property and casualty premiums were written in Texas, California, New Jersey, Iowa, and Missouri. NON-GAAP FINANCIAL MEASURES We evaluate profit or loss based upon operating and investment results. Profit or loss described in the following sections of this Management's Discussion and Analysis is reported on a pre-tax basis. Our primary sources of revenue are premiums and investment income. Major categories of expenses include losses and loss settlement expenses, underwriting and other operating expenses. Management uses metrics to provide financial statement users with a better understanding of results of operations, including adjusted operating income and three components of the loss ratio: underlying loss ratio, impacts of catastrophes and non-catastrophe prior period reserve development. Adjusted operating income is calculated by excluding net investment gains and losses, after applicable federal and state income taxes from net income (loss). Management believes adjusted operating income is a meaningful measure for evaluating insurance company performance and a useful supplement to GAAP information because it better represents the normal, ongoing performance of our business. Investors and equity analysts who invest in and report on the insurance industry and the Company generally focus on this metric in their analyses. Underlying loss ratio represents the net loss ratio less the impacts of catastrophes and non-catastrophe prior period reserve development. The underlying combined ratio represents the combined ratio less the impacts of catastrophes and non-catastrophe prior period reserve development. The Company believes that the underlying loss ratio and underlying combined ratio are meaningful measures to understand the underlying trends in the core business in the current accident year, removing the volatility of catastrophes and prior period impacts. Management believes separate discussions on catastrophe losses and prior period reserve development are important to understanding how the Company is managing catastrophe risk and in identifying developments in longer-tailed business. 28 Table of Contents Catastrophe losses is an operational measure that utilizes the designations of the Insurance Services Office ("ISO") and is reported with losses and loss adjustment expense amounts net of reinsurance recoverables, unless specified otherwise. In addition to ISO catastrophes, we also include as catastrophes those events which may include U.S. or international losses, that we believe are, or will be, material to our operations, either in amount or in number of claims made. Catastrophes are not predictable and are unique in terms of timing and financial impact. While management estimates catastrophe losses as incurred, due to the inherently unique nature of catastrophe losses, the impact in a reporting period is inclusive of catastrophes that occurred in the reporting period, as well as development on catastrophes that may have occurred in prior periods. Prior period reserve development is the increase (unfavorable) or decrease (favorable) in incurred loss and loss adjustment expense reserves at the valuation dates for losses which occurred in previous calendar years. This measure excludes development on catastrophe losses. 29 Table of Contents RESULTS OF OPERATIONS The following [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with Part II, Item 8, "Financial Statements and Supplementary Data." Amounts (except per share amounts) are presented in thousands, unless otherwise noted. MD&A Index Page Forward-Looking Statements 25 Business Overview 27 Critical Accounting Estimates 29 Non-GAAP Financial Measures 37 Results of Operations 38 Investments 46 Reinsurance 49 Liquidity and Capital Resources 53 Recently Issued Accounting Standards 56 FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about our operations, anticipated performance and other similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor under the Securities Act of 1933, as amended (the "Securities Act") and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), for forward-looking statements. The forward-looking statements are not historical facts and involve risks and uncertainties that could cause actual results to differ from those expected and/or projected. Such forward-looking statements are based on current expectations, estimates, forecasts and projections about United Fire Group, Inc. ("UFG," the "Registrant," the "Company," "we," "us," or "our"), the industry in which we operate, and beliefs and assumptions made by management. Words such as "expect(s)," "anticipate(s)," "intend(s)," "plan(s)," "believe(s)," "continue(s)," "seek(s)," "estimate(s)," "goal(s)," "remain(s) optimistic," "target(s)," "forecast(s)," "project(s)," "predict(s)," "should," "could," "may," "will," "might," "hope," "can" and other words and terms of similar meaning or expression in connection with a discussion of future operations, financial performance or financial condition, are intended to identify forward-looking statements. See Part I, Item 1A "Risk Factors" of this report for more information concerning factors that could cause actual results to differ materially from those in the forward-looking statements. Risks and uncertainties that may affect the actual financial condition and results of the Company include, but are not limited to, the following: •The success of our strategy may be adversely impacted by various internal and external factors; •Our core insurance business is dependent on strong and beneficial relationships with a large network of independent insurance agents. A strain in these relationships could result in loss of sufficient business opportunities within our expertise and stated risk appetite; •We will be at a competitive disadvantage if, over time, our competitors are more effective in pricing their products, development of new product offering, implementation of technology or data analytics; •Our strategy's success could be affected by our timely ability to recognize and adapt to our position in the insurance cycle; •Changing weather patterns and climate change add to the unpredictability, frequency and severity of catastrophe losses and may adversely affect the results of our operations, liquidity and financial condition; 25 Table of Contents •Our success depends primarily on our ability to underwrite risks effectively and adequately price the risks we insure; •We may be unable to predict the rising cost of insurance claims resulting from changing societal expectations that lead to increasing litigation, broader definitions of liability, broader contract interpretations, more plaintiff-friendly legal decisions and larger compensatory jury awards; •Our reserves for property and casualty insurance losses and loss settlement expenses are based on estimates and may be inadequate, adversely impacting our financial results; •We insure property that is exposed to various natural perils that can give rise to significant claims costs; •We are subject to certain risks related to our investment portfolio that could negatively affect our profitability; •A downgrade in our financial strength or issuer credit ratings could result in a loss of business and could have a material adverse effect on our financial condition, results of operations and liquidity; •We may be unable to secure reinsurance capacity that provides necessary risk protection at a reasonable cost; •We may be unable to attract, retain or effectively manage the succession of key personnel; •Unauthorized data access, cyber attacks and other security breaches could have an adverse impact on our business and reputation; •We are subject to comprehensive laws and regulations, which may have an adverse effect on our financial condition and results of operations; •Macroeconomic conditions could materially and adversely affect our business, results of our operations, financial condition, and growth; •Our stock price could become more volatile, and your investment could lose value; •Efforts to disrupt the structure, management or ownership of the Company could diminish the value of our common stock; and •The ability of our subsidiaries to pay dividends may affect our liquidity and ability to meet our obligations. These are representative of the risks, uncertainties, and assumptions that could cause actual outcomes and results to differ materially from what is expressed in forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report or as of the date they are made. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission ("SEC"), we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. 26 Table of Contents BUSINESS OVERVIEW Reportable Segments We operate as one operating segment. Our revenues are primarily derived from premiums earned for property and casualty insurance products issued to customers. For additional information, see Note 10, Segment Information, in Part II, Item 8, "Financial Statements and Supplementary Data." We review and report our results using lines of business. The following table shows the principal types of property and casualty insurance policies we write and issue, and in which lines of business they are reported: Direct Writer Treaty Reinsurance(1)  Lloyd's of London MGAs Commercial Lines Other liability x P x Fire and allied lines x P x Automobile x P Workers' compensation x P Surety(2) x P Miscellaneous x x Personal Lines Fire and allied lines * P Automobile * P Miscellaneous * P Reinsurance assumed NP x * Personal lines direct business was discontinued in 2020 and no exposure to direct personal lines of business remains as of December 31, 2025. (1) Treaty Reinsurance is split between proportional reinsurance (P) and non-proportional reinsurance (NP). (2) Commercial lines "Surety" previously referred to as "Fidelity and surety." Commercial other liability - primarily business insurance covering bodily injury and property damage including construction defect, excess and surplus lines excess casualty, and standard umbrella. Proportional assumed reinsurance on these lines and professional liability coverage managed by an MGA partner. Commercial fire and allied lines - primarily multi-peril non-liability property coverage, inland marine. Proportional assumed reinsurance on these lines and earthquake coverage managed by an MGA partner. Commercial automobile - physical damage to an insured's vehicle, as well as liabilities to third parties. Automobile physical damage insurance covers loss or damage to vehicles from collision, vandalism, fire, theft, flood or other causes. Automobile liability insurance covers bodily injury, damage to property resulting from automobile accidents caused by the insured, uninsured or under-insured motorists and the legal costs of defending the insured against lawsuits. Proportional reinsurance on these lines is also included. Workers' compensation - business coverage for employees who are injured or become ill as a result of their job, including proportional assumed reinsurance for this coverage. Our workers' compensation insurance covers primarily small- to mid-sized accounts. Surety - contract and commercial surety bond coverage which guarantees performance and payment by our bonded principals, protects owners from failure to perform on the part of our principals, and protects material suppliers and subcontractors from nonpayment by our contractors. Proportional reinsurance on these lines is also included. Commercial miscellaneous - commercial theft coverage, boiler and machinery and ocean marine business managed by an MGA partner. 27 Table of Contents Personal - primarily proportional assumed reinsurance for personal lines. Reinsurance assumed - primarily non-proportional assumed reinsurance and Lloyd's of London property and casualty syndicates. Lloyd's of London ("Lloyds") Syndicates The Company is a member of Lloyd's through its insurance subsidiary McIntyre Cedar Corporate Member LLP. Lloyd’s operates as an insurance marketplace whereby members join syndicates to underwrite property and casualty and reinsurance business through a managing agent in return for receiving premiums. The Company participates in Syndicate 1492, Syndicate 1729, Syndicate 1969, Syndicate 1971, Syndicate 4747, Syndicate 2988, Syndicate 1699, Syndicate 5623, Syndicate 2358, Syndicate 1955 and Syndicate 1609. The Company is required to maintain capital at Lloyd's, referred to as Funds at Lloyd's ("FAL"), to support the participation in these syndicates. Pooling Arrangement All of our property and casualty insurance subsidiaries belong to an intercompany reinsurance pooling arrangement. Pooling arrangements permit the participating companies to rely on the capacity of the entire pool's capital and surplus, rather than being limited to policy exposures of a size commensurate with each participant's own surplus level. Under such arrangements, the members share substantially all of the insurance business that is written and allocate the combined premiums, losses and expenses based on percentages defined in the arrangement. Geographic Concentration For the year ended December 31, 2025, 48.5 percent of our property and casualty premiums were written in Texas, California, Iowa, New Jersey, and Missouri. Direct statutory written premium by our property and casualty insurance operations were distributed as follows for the years ended December 31, 2025, 2024 and 2023: Years Ended December 31, % of Total (In Thousands) 2025 2024 2023 2025 2024 2023 Texas $ 240,158  $ 200,593  $ 176,287  19.7  % 18.4  % 17.4  % California 174,914  136,840  126,262  14.3  12.5  12.4  Iowa 69,438  70,935  71,975  5.7  6.5  7.1  New Jersey 55,401  47,909  42,369  4.5  4.4  4.2  Missouri 51,943  53,575  59,094  4.3  4.9  5.8  Louisiana 51,150  52,795  43,769  4.2  4.8  4.3  Illinois 48,126  40,728  37,158  3.9  3.7  3.7  Colorado 41,796  38,285  36,900  3.4  3.5  3.6  Florida 40,974  30,402  27,866  3.4  2.8  2.7  Minnesota 34,940  33,230  35,718  2.9  3.0  3.5  All Other States 410,464  386,525  356,879  33.7  35.4  35.2  Direct Statutory Written Premium $ 1,219,304  $ 1,091,817  $ 1,014,277  100.0  % 100.0  % 100.0  % 28 Table of Contents CRITICAL ACCOUNTING ESTIMATES Management's discussion and analysis of our financial condition and results of operations are based upon our Consolidated Financial Statements. These statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following critical accounting estimates are those we believe affect the more significant judgments and estimates used in the preparation of our financial statements. Additional information about other significant accounting policies and estimates may be found in Note 1 "Summary of Significant Accounting Policies" in Part II, Item 8, "Financial Statements and Supplementary Data." Investment Valuation Upon acquisition, we classify investments in marketable securities as held-to-maturity, available-for-sale, or trading. We record investments in fixed maturity securities classified as available-for-sale and equity securities at fair value. Other long-term investments consist primarily of our interests in limited liability partnerships that are recorded on the equity method of accounting. We record mortgage loans at their amortized cost less any valuation allowance. In general, investment securities are exposed to various risks, such as interest rate risk, credit risk, and overall market volatility risk. Therefore, it is reasonably possible that changes in the fair value of our investment securities that are reported at fair value will occur in the near term and such changes could materially affect the amounts reported in the Consolidated Financial Statements. Also, it is reasonably possible that changes in the value of our investments in limited liability partnerships could occur in the future and such changes could materially affect our results of operations as reported in our Consolidated Financial Statements. Fair Value Measurement Information specific to the fair value measurement of our financial instruments and disclosures is incorporated by reference from Note 3 "Fair Value of Financial Instruments" contained in Part II, Item 8. Losses and Loss Settlement Expenses Reserves for losses and loss settlement expenses are reported using our best estimate of the ultimate liability for claims that occurred prior to the end of any given reporting period but have not yet been paid. Before credit for reinsurance recoverables, these reserves were $1.9 billion and $1.8 billion at December 31, 2025 and 2024, respectively. We purchase reinsurance to mitigate the impact of large losses and catastrophic events. Loss and loss settlement expense reserves ceded to reinsurers were $213.6 million and $198.1 million at December 31, 2025 and 2024, respectively. 29 Table of Contents Our reserves, before credit for reinsurance recoverables, by line of business as of December 31, 2025, were as follows: (In Thousands) Case Basis IBNR Loss Settlement Expense Total Reserves Commercial lines Fire and allied lines $ 68,387  $ 60,699  $ 28,408  $ 157,494  Other liability 259,142  546,936  166,215  972,293  Automobile 147,419  93,791  29,539  270,749  Workers' compensation 77,398  16,694  14,682  108,774  Surety(1) 18,530  20,363  4,471  43,364  Miscellaneous 3,250  21,535  3,505  28,290  Total commercial lines $ 574,126  $ 760,018  $ 246,820  $ 1,580,964  Personal lines Automobile $ 548  $ 516  $ 195  $ 1,259  Fire and allied lines 2,667  5,934  400  9,001  Miscellaneous 30  2  (2) 30  Total personal lines $ 3,245  $ 6,452  $ 593  $ 10,290  Reinsurance assumed 134,354  195,930  3,288  333,572  Total $ 711,725  $ 962,400  $ 250,701  $ 1,924,826  (1) Commercial lines "Surety" previously referred to as "Fidelity and surety." Case-Basis Reserves For each of our lines of business, our experienced claims personnel estimate case-basis reserves for reported claims. Establishing the case reserve for an individual claim is subjective and complex, requiring us to estimate future payments and values sufficient to settle the claim. Setting a reserve for an individual claim is an inherently uncertain process. When we establish and adjust individual claim reserves, we do so based on our knowledge of the circumstances and facts of the claim at a point in time. Upon notice of a claim, we establish a preliminary (average claim cost) reserve based on the limited claim information initially reported. Subsequently, we conduct an investigation of each reported claim, which allows us to more fully understand the factors contributing to the loss and our potential exposure. This investigation may extend over a long period of time. As our claim investigation progresses, and as our claims personnel identify trends in claims activity, we may refine and adjust our estimates of case-basis reserves. To evaluate and refine our overall reserving process, we track and monitor all claims until they are settled and paid in full, with all salvage, subrogation claims, and liability deductible recoveries being resolved. Our loss reserves include amounts related to both short-tail and long-tail lines of business. A short-tail insurance product is one where claim settlement values are known comparatively quickly. Final settlement values for long-tail insurance products are sometimes not known for many years. The longer the time span between the incidence of a loss and the settlement of the claim, the more the final settlement can vary from the reserves initially established. Accordingly, long-tail insurance products can have significant implications on the reserving process. Our short-tail lines of business include fire and allied lines, commercial property, automobile physical damage and inland marine. The amounts of the case-based reserves that we establish for claims in these lines depend upon various factors, such as individual claim facts (including type of coverage and severity of loss), our historical loss experience and trends in general economic conditions (including changes in replacement costs, medical costs and inflation). Our long-tail lines of business include workers' compensation and other liability. In addition, certain product lines such as commercial automobile, commercial multi-peril and surety include both long-tail coverages and short-tail coverages. For many long-tail liability claims, significant periods of time, ranging up to several years, may elapse 30 Table of Contents between the occurrence of the loss, the reporting of the loss to us and the settlement of the claim. As a result, loss experience in the more recent accident years for the long-tail liability coverages has limited statistical credibility in our reserving process because a relatively small proportion of losses in these accident years are reported claims and an even smaller proportion are paid losses. In addition, long-tail liability claims are more susceptible to litigation and can be significantly affected by changing contract interpretations and the legal environment. Consequently, the estimation of loss reserves for long-tail coverages is more complex and subject to a higher degree of variability than for short-tail coverages. The amounts of the case-basis loss reserves that we establish for claims in long-tail lines of business depend upon various factors, including individual claim facts (including type of coverage, severity of loss and underlying policy limits), company historical loss experience, legislative enactments, judicial decisions, legal developments in the awarding of damages, experience with alternative dispute resolution, changes in political attitudes and trends in general economic conditions, including the effects of inflation. As with our short-tail lines of business, we review and make changes to long-tail case-based reserves based on our review of continually evolving facts as they become available to us during the claims settlement process. Our adjustments to case-based reserves are reported in the financial statements in the period that new information arises about the claim. Examples of facts that become known that could cause us to change our case-based reserves include, but are not limited to: evidence that loss severity is different than previously assessed; new claimants who have presented claims; and the assessment that no coverage exists. Incurred But Not Reported Reserves ("IBNR") Most of our insurance policies are written on an occurrence basis that provides coverage if a loss occurs during the policy period, even if the insured reports the loss many years later. On a quarterly basis, the Company performs a detailed analysis of IBNR reserves. This analysis uses various projection methods to provide several estimates of ultimate loss or loss adjustment expense ("LAE") for each individual accident year and line of business. The projection methods include, but are not limited to, paid development; reported development; expected loss ratio methods; and Bornhuetter Ferguson methods on both a paid and reported basis. These methods may need to be adjusted for anomalies or outliers in the data, unusual internal or external trends, or other factors impacting the reliability/credibility of the historical company experience. Results of the projection methods are compared, and a point estimate of ultimate loss or LAE is established for each individual accident year and line of business. The specific projection methods used to establish point estimates vary depending on what is deemed most appropriate for a particular line of business and accident year. IBNR estimates are derived by subtracting reported loss from the final point estimates. Senior management meets with our actuarial team and controller on a quarterly basis to review the adequacy of carried IBNR reserves based on the results of this actuarial analysis. Adjustments for changes in business and other factors not completely captured by the data within the actuarial analysis are made as deemed necessary. This method of establishing our IBNR reserves has consistently resulted in aggregate reserve levels that management believes are reasonable in comparison to the reserve estimates indicated by the actuarial analysis. For our short-tail lines of business, IBNR reserves constitute a small portion of the overall reserves. These claims are generally reported and settled shortly after the loss occurs. In our long-tail lines of business, IBNR reserves constitute a relatively higher proportion of total reserves, because, for many liability claims, significant periods of time may elapse between the initial occurrence of the losses, the reporting of the losses to us, and the ultimate settlement of the losses. Loss Settlement Expense Reserves Loss settlement expense reserves include amounts ultimately allocable to individual claims, as well as amounts required for the general overhead of the claims handling operation that are not specifically allocable to individual claims. We do not establish case reserves for these expenses. Instead, on a quarterly basis, management performs a statistical analysis to estimate the required reserve for unpaid loss settlement expenses using historical data. 31 Table of Contents LAE is composed of two distinct kinds of expenses which are defense and cost containment ("DCC") and adjusting and other ("A&O"). These two expense types have different purposes and characteristics which necessitates different estimation methods in order to provide a quarterly estimate of the required reserve for unpaid expense which is generally referred to as an LAE IBNR reserve. Reserves for unpaid DCC are estimated quarterly by line of business for each individual accident year using three methods: (1) Paid development, (2) Expected emergence of DCC, and (3) Bornhuetter Ferguson. Each of the three methods produces an estimate of the ultimate DCC cost for an individual accident year and the final estimate is generally a weighted average of the various methods. Inception to date paid DCC is subtracted from the final ultimate DCC estimate to provide the estimated DCC unpaid reserve for each individual accident year. Reserves for unpaid A&O are estimated quarterly by line of business for each individual accident year using a single method. This method consists of applying a percentage factor to unpaid loss reserves. The percentage factor used differs by line of business and is established on an annual basis using year-end data. The percentage factor is evaluated and selected after reviewing the ratio of paid A&O to paid loss using calendar year data for the most recent five years. Reinsurance Reserves There are three distinct types of reserves for expected recoveries: (1) reported claim reserves, (2) loss IBNR, and (3) allocated LAE IBNR. Ceded reserves for reported claims are calculated by subtracting the primary retention from the claim value established by our claim adjuster. Ceded IBNR comes from multiple treaties and is reviewed quarterly by our reserving actuaries in conjunction with the direct IBNR. Multiple methods are utilized in the ceded IBNR which vary by line of business. These include estimates based on the relationship of ceded premium to direct premium, Bornhuetter Ferguson methods, and methods based on industry excess of loss factors. Some of our business is 100 percent ceded or based on a set quota share percentage. In those cases, ceded loss IBNR is typically formulaic based on direct loss IBNR. We will cede some allocated LAE expenses when we cede loss. Our ceded allocated LAE IBNR is estimated based on our ceded unpaid loss reserves and the general relation, by line of business, between LAE and loss. Key Assumptions The Company uses a number of key assumptions in establishing an estimate of loss and loss settlement expense reserves, including but not limited to the following: the Company's case-basis reserves reflect the most up-to-date information available about the unique circumstances of each individual known claim; judicial decisions or regulatory actions have been considered to the extent of our knowledge; new, emerging claim reporting and payment patterns will continue into the future consistent with the observable past; adjustments have been made for significant unique and unusual known claim events; and, to the best of our knowledge, there are no new, unidentified latent trends that would impact our overall reserves. These assumptions about future circumstances and expectations are inherently uncertain and subject to many risk factors including but not limited to heightened levels of inflation, increased litigation activity, changing weather patterns, and changing driver behaviors. Therefore, our key assumptions are subject to change as actual claims occur and as we gain additional information about the variables that underlie our assumptions. Accordingly, management reviews and updates these assumptions periodically to ensure that the assumptions remain relevant and consistent with our current understanding of the environment. If necessary, management makes changes not only in the estimates derived from the use of these assumptions, but also in the assumptions themselves. Due to the inherent uncertainty in the loss reserving process, management believes that there is a reasonable chance that modification to key assumptions could individually, or in aggregate, result in reserve levels above or below the actual amount for which the related claims will eventually settle. Adjustments to the reserves could be recorded in one year or multiple years, depending on when they are identified. This would also affect our financial position as our equity would be adjusted by an amount equal to the net income impact. Any deficiency that would be recognized in our loss and loss settlement expense reserves usually does not 32 Table of Contents have a material effect on our liquidity because the claims have not been paid. Conversely, if our estimates of ultimate unpaid loss and loss settlement expense reserves prove to be redundant, our future earnings and financial position would be improved. We believe our approach produces recorded reserves that are reasonable as to their relative position within a range of reasonable reserves from year-to-year. Historical experience suggests reserve levels can vary considerably for an individual year before ultimate settlement values are known, but variation for the aggregate ultimate loss typically would fall in the range of 2.5% to 5%. The table below provides some scenarios for the impact of this development volatility on our reported net loss and loss adjustment reserves of $1.7 billion as of December 31, 2025. (In Thousands) % Impact from updated assumptions 2.5% 5.0% Impact on total net reported Loss and LAE reserves $ 42,780  $ 85,560  The reserves related to expenses not associated with individual claims (adjusting and other) are reviewed using a projected claim count model. The methodologies relied upon for the remainder of the reserves were not altered but additional considerations were added to our models to aid in selecting key assumptions. In estimating our 2025 loss and loss settlement expense reserves, we did not anticipate future events or conditions that were inconsistent with past development patterns. Certain of our lines of business are subject to the potential for greater loss and loss settlement expense development than others, which are discussed below: Other Liability Reserves Other liability is considered a long-tail line of business, as it can take a relatively long period of time to settle claims from prior accident years. This is partly due to the lag time between the date a loss or event occurs that triggers coverage and the date when the claim is actually reported. Defense costs are also a part of the insured expenses covered by liability policies and can be significant, sometimes greater than the cost of the actual paid claims. For the majority of our products, defense costs are outside of the policy limit, meaning that the amounts paid for defense costs are not subtracted from the available policy limit. Factors that can cause uncertainty in estimating reserves in this line include: reporting time lags; the number of parties involved in the underlying tort action; whether the "event" triggering coverage is confined to only one time period or is spread over multiple time periods; the potential dollars involved in the individual claim actions; whether such claims were reasonably foreseeable and intended to be covered at the time the contracts were written (i.e., coverage disputes); and the potential for mass claim actions. Claims with longer reporting time lags may result in greater inherent risk. This is especially true for alleged claims with a latency feature, particularly where courts have ruled that coverage is spread over multiple policy years, hence involving multiple defendants (and their insurers and reinsurers) and multiple policies (thereby increasing the potential dollars involved and the underlying settlement complexity). Claims with long latencies also increase the potential time lag between writing a policy in a certain market and the recognition that such policy has potential mass tort and/or latent claim exposure. Our reserve for other liability claims at December 31, 2025 was $972.3 million and consisted of 3,528 claims, compared with $912.7 million, consisting of 3,862 claims at December 31, 2024. Of the $972.3 million total reserve for other liability claims, $113.8 million is identified as DCC and $52.0 million is identified as A&O required in the settlement of claims. Included in the other liability line of business are gross reserves for construction defect losses and loss settlement expenses. Construction defect exposure is unique because of its very long tail as claims can often take over six years to be reported to us and another four years to settle, on average. This exposure relates to a deficiency in the design or construction of a building or structure resulting from a failure to design or construct in a reasonably workmanlike 33 Table of Contents manner, and/or in accordance with a buyer's reasonable expectation. In the cases involving latent defects, the determination of when a loss occurred is often unclear and governed by various theories that vary by state. Further, each state has a unique Statute of Repose that determines the length of time an insured has to report a claim generally from the date of substantial completion of a project. In addition to these issues, other variables contribute to a high degree of uncertainty in establishing reserves for construction defect claims. These variables include: whether coverage exists; when losses occur; the size of each loss; expectations for future interpretive rulings concerning contract provisions; and the extent to which the assertion of these claims will expand geographically. In recent years, we have implemented various underwriting measures that we anticipate will mitigate the amount of construction defect losses experienced, including further consideration of insured endorsements; stricter underwriting guidelines on the writing of residential contractors; and increased utilization of loss control. Asbestos and Environmental Reserves Included in the commercial other liability and assumed reinsurance lines of business are reserves for asbestos and other environmental loss and loss settlement expenses. We record our best estimate of loss and loss settlement expense reserves, but the ultimate amounts paid upon settlement of such claims may be more or less than the amount of the reserves given the inherent uncertainties surrounding such claims and the likelihood these uncertainties will not be resolved for many years. At December 31, 2025 and 2024, we had $0.8 million and $0.7 million, respectively, in direct and assumed asbestos and other environmental loss and loss settlement expense reserves. Catastrophe Event Reserves Catastrophe losses are inherent risks of the property and casualty insurance business. Catastrophic events include, without limitation, hurricanes, tornadoes, earthquakes, hailstorms, wildfires, high winds, winter storms and other natural disasters, along with man-made exposures to losses resulting from acts of terrorism and political instability. Some types of catastrophes are more likely to occur at certain times within the year than others, which adds an element of seasonality to our property and casualty insurance claims. The frequency and severity of catastrophic events are difficult to accurately predict in any year. However, some geographic locations are more susceptible to these events than others. We control our direct insurance exposures in regions that are prone to naturally occurring catastrophic events through a combination of geographic diversification, restrictions on the amount and location of new business production in such regions, and reinsurance. We regularly assess our concentration of risk in natural catastrophe exposed areas and consider the impacts of climate change and the unpredictability of future trends in adjusting our geographic concentrations. We have strategies and underwriting standards to manage these exposures through individual risk selection, subject to regulatory constraints, and through the purchase of catastrophe reinsurance coverage. We use catastrophe modeling and a risk concentration management tool to monitor and control our potential losses in natural catastrophe exposed areas, such as the Gulf Coast and East Coast, as well as in areas of exposure in other countries where we are exposed to a portion of an insurer's underwriting risk under our assumed reinsurance contracts. Despite our efforts to manage our catastrophe exposure, the extent of losses from a catastrophe is a function of both the total amount of insured exposure in an area affected by the event and the severity of the event. The occurrence of one or more severe natural catastrophic events in heavily populated areas could have a material effect on our results of operations, financial condition or liquidity. The process of estimating and establishing reserves for losses incurred from catastrophic events is inherently uncertain and the actual ultimate cost of a claim, net of reinsurance recoveries, may vary materially from the estimated amount reserved. Catastrophe modeling generally relies on multiple inputs based on experience, science, engineering and history, and the selection of those inputs requires a significant amount of judgment. The modeling results may also fail to account for risks that are outside the range of normal probability or are otherwise unforeseen. Because of this, actual results may differ materially from those derived from our modeling assumptions. 34 Table of Contents Commercial Automobile Reserves Commercial automobile claim reserves are established at exposure based on information either known and provided or obtained through the claims investigation. The perspective and experience of the claims staff, which may include assumptions as to how the claim will develop over time, is incorporated in the investigation. Exposures are identified and reserves established within 30 to 60 days depending on the complexity of the case. Workers' Compensation Reserves Like the other liability line of business, workers' compensation losses and loss settlement expense reserves are based upon variables that create uncertainty in estimating the ultimate reserve. Estimates for workers' compensation are particularly sensitive to assumptions about medical cost inflation. Other variables we consider and that contribute to the uncertainty in establishing reserves for workers' compensation claims include: state legislative and regulatory environments; trends in jury awards; and mortality rates. Because of these variables, the process of reserving for the ultimate loss and loss settlement expense to be incurred requires the use of informed judgment and is inherently uncertain. Consequently, actual loss and loss settlement expense reserves may deviate from our estimates and such deviations may be significant. Our reserve for workers' compensation claims at December 31, 2025 was $108.8 million and consisted of 1,273 claims, compared with $115.6 million, consisting of 1,042 claims, at December 31, 2024. Reserve Development We recognized favorable development in our net reserves for prior accident years totaling $14.1 million and $1.2 million for the years ended December 31, 2025 and 2024, respectively, and adverse development of $67.8 million for the year ended December 31, 2023. The following table details the pre-tax impact on our financial results and financial condition of reasonably likely reserve development. Our lines of business that have historically been most susceptible to significant volatility in reserve development have been shown separately and utilize hypothetical levels of volatility of 5.0 percent and 10.0 percent. Our other, less volatile, lines of business have been aggregated and utilize hypothetical levels of volatility of 3.0 percent and 5.0 percent. (In Thousands) Hypothetical Reserve Development Volatility Levels -10% -5% +5% +10% Impact on loss and loss settlement expenses Other liability $ (97,229) $ (48,615) $ 48,615  $ 97,229  Workers' compensation (10,877) (5,439) 5,439  10,877  Automobile (27,201) (13,600) 13,600  27,201  Hypothetical Reserve Development Volatility Levels -5% -3% +3% +5% Impact on loss and loss settlement expenses All other lines $ (28,588) $ (17,153) $ 17,153  $ 28,588  Reserve development is discussed in more detail under the heading "Losses and Loss Settlement Expense" in the "Results of Operations" section in this Item 7. Appointed Actuary The Company terminated the engagement with Regnier Consulting Group, Inc. ("Regnier") as its appointed actuary for the year ended December 31, 2024. Beginning with the 2024 reporting period, the Company's Vice President of Actuarial Reserving serves as the appointed actuary, approved by the Board of Directors. The Company has engaged a third party firm to provide an independent and unbiased assessment of the Company's reserves. We do not rely on the external consulting actuary's assessment to determine our recorded reserves; however, we review and 35 Table of Contents discuss its observations on trends, key assumptions, and actuarial methodologies, and consider these items when determining our recorded reserves. Pension Benefit Obligation The process of estimating our pension benefit obligation and related benefit expense is inherently uncertain, and the actual cost of benefits may vary materially from the estimates recorded. These liabilities are particularly volatile due to their long-term nature and are based on several assumptions. The main assumptions used in the valuation of our pension benefit obligation are estimates related to: mortality of the employees and retirees eligible for benefits; expected long-term rates of return on investments; compensation increases; employee turnover; and liability discount rate. We have engaged an independent firm to assist in evaluating and establishing assumptions used in the valuation of our pension benefit obligations. A change in any one or more of these assumptions is likely to result in an ultimate liability different from the original actuarial estimate. Such changes in estimates may be material. For example, a 100 basis point decrease in our estimated discount rate would increase the pension benefit obligation at December 31, 2025 by $20.9 million while a 100 basis point increase in the rate would decrease the pension benefit obligation by $17.3 million, for the same period. A 100 basis point decrease in our estimated long-term rate of return on pension plan assets would increase the benefit expense for the year ended December 31, 2025 by $2.3 million, while a 100 basis point increase in the rate would decrease benefit expense by $2.3 million, for the same period. Corresponding with the impact on benefit expense, there would be an offsetting impact to pension plan assets. In an effort to limit the impacts of interest rate exposure, in September 2023, we made a shift in our pension plan asset investment strategy to a liability driven investment ("LDI") approach to better match the timing of cash flows between payouts from the plan with cash flows from the asset portfolio as well as hedge interest rate risk between assets and liabilities. 36 Table of Contents NON-GAAP FINANCIAL MEASURES We evaluate profit or loss based upon operating and investment results. Profit or loss described in the following sections of this Management's Discussion and Analysis is reported on a pre-tax basis. Our primary sources of revenue are premiums and investment income. Major categories of expenses include losses and loss settlement expenses, underwriting and other operating expenses. Management uses metrics to provide financial statement users with a better understanding of results of operations, including adjusted operating income and three components of the loss ratio: underlying loss ratio, impacts of catastrophes and non-catastrophe prior period reserve development. Adjusted operating income is calculated by excluding net investment gains and losses, after applicable federal and state income taxes from net income (loss). Management believes adjusted operating income is a meaningful measure for evaluating insurance company performance and a useful supplement to GAAP information because it better represents the normal, ongoing performance of our business. Investors and equity analysts who invest in and report on the insurance industry and the Company generally focus on this metric in their analyses. Underlying loss ratio represents the net loss ratio less the impacts of catastrophes and non-catastrophe prior period reserve development. The underlying combined ratio represents the combined ratio less the impacts of catastrophes and non-catastrophe prior period reserve development. The Company believes that the underlying loss ratio and underlying combined ratio are meaningful measures to understand the underlying trends in the core business in the current accident year, removing the volatility of catastrophes and prior period impacts. Management believes separate discussions on catastrophe losses and prior period reserve development are important to understanding how the Company is managing catastrophe risk and in identifying developments in longer-tailed business. Catastrophe losses is an operational measure that utilizes the designations of the Insurance Services Office ("ISO") and is reported with losses and loss adjustment expense amounts net of reinsurance recoverables, unless specified otherwise. In addition to ISO catastrophes, we also include as catastrophes those events which may include U.S. or international losses, that we believe are, or will be, material to our operations, either in amount or in number of claims made. Catastrophes are not predictable and are unique in terms of timing and financial impact. While management estimates catastrophe losses as incurred, due to the inherently unique nature of catastrophe losses, the impact in a reporting period is inclusive of catastrophes that occurred in the reporting period, as well as development on catastrophes that may have occurred in prior periods. Prior period reserve development is the increase (unfavorable) or decrease (favorable) in incurred loss and loss adjustment expense reserves at the valuation dates for losses which occurred in previous calendar years. This measure excludes development on catastrophe losses. 37 Table of Contents RESULTS OF OPERATIONS The following table includes the consolidated results of our operations for the years ended December 31, 2025, 2024 and 2023, with more detailed components and discussion in the sections that follow. Discussions of the components of net income are presented on a pre-tax basis, unless otherwise noted. Financial Highlights Years Ended December 31, (In Thousands) 2025 2024 2023 Revenues Net earned premium $ 1,292,696 $ 1,176,750 $ 1,034,587 Net investment income 97,538 81,986 59,606 Net investment gains (losses) (3,822) (5,429) 1,274 Total revenues $ 1,386,412 $ 1,253,307 $ 1,095,467 Benefits, losses and expenses Losses and loss settlement expenses $ 764,402 $ 744,605 $ 769,414 Amortization of deferred policy acquisition costs 315,323 281,338 244,991 Other underwriting expenses 146,609 140,942 115,800 Interest expense 11,267 7,281 3,260 Other non-underwriting expenses 875 2,107 1,723 Total benefits, losses and expenses $ 1,238,476 $ 1,176,273 $ 1,135,188 Income (loss) before income taxes $ 147,936 $ 77,034 (39,721) Income tax expense (benefit) 29,745 15,077 (10,021) Net income (loss) $ 118,191 $ 61,957 $ (29,700) Combined ratio: Net loss ratio 59.1  % 63.3  % 74.4  % Underwriting expense ratio 35.7  % 35.9  % 34.9  % Combined ratio 94.8  % 99.2  % 109.3  % Additional ratios(1): Net loss ratio 59.1  % 63.3  % 74.4  % Catastrophes 3.2  % 5.4  % 6.2  % Reserve development (favorable) unfavorable (0.4) % —  % 6.0  % Underlying loss ratio (non-GAAP) 56.3  % 57.9  % 62.2  % Underwriting expense ratio 35.7  % 35.9  % 34.9  % Underlying combined ratio (non-GAAP) 92.0  % 93.8  % 97.1  % NM = not meaningful (1) Underlying loss ratio and underlying combined ratio are non-GAAP financial measures. See "Non-GAAP Financial Measures" in Part II, Item 7 for additional information. 38 Table of Contents Net Written Premium Net written premium is the amount charged for insurance policy contracts issued and recognized on an annualized basis at the effective date of the policy. Net written premium is frequently used by industry analysts and other recognized reporting sources to facilitate comparisons of the performance of insurance companies. Management believes net written premium is a meaningful measure for evaluating insurance company sales performance and geographical expansion efforts. Net written premium for an insurance company consists of direct written premium and assumed premium, less ceded premium. The following shows our written premium for the years ended December 31, 2025, 2024 and 2023: (In Thousands) 2025 2024 Years ended December 31, 2025 2024 2023 vs. 2024 vs. 2023 Direct written premium $ 1,308,916  $ 1,177,511  $ 1,061,358  11.2  % 10.9  % Assumed written premium 199,942  217,904  159,335  (8.2) 36.8  Ceded written premium (162,639) (163,945) (153,792) (0.8) 6.6  Net written premium $ 1,346,219  $ 1,231,470  $ 1,066,901  9.3  % 15.4  % See 'Premiums' below for a description of the changes in premiums for the years presented. Revenues Premiums Net earned premium is calculated on a pro-rata basis over the terms of the respective policies. Unearned premium reserves are established for the portion of written premium applicable to the unexpired terms of the insurance policies in force. The difference between net earned premium and net written premium is the change in unearned premium and the change in prepaid reinsurance premium. Direct earned premium is recognized ratably over the life of a policy and differs from direct written premium, which is recognized on the effective date of the policy. The following shows our earned premium for the years ended December 31, 2025, 2024 and 2023: (In Thousands) 2025 2024 Years ended December 31, 2025 2024 2023 vs. 2024 vs. 2023 Direct earned premium 1,259,966  1,109,903  1,017,917  13.5  % 9.0  % Assumed earned premium 206,708  214,043  161,628  (3.4) % 32.4  % Ceded earned premium (173,978) (147,196) (144,958) 18.2  % 1.5  % Net earned premium $ 1,292,696  $ 1,176,750  $ 1,034,587  9.9  % 13.7  % Direct Premium Direct premium is the total policy premium, net of cancellations, associated with policies issued and underwritten by our property and casualty insurance business. Direct premium increased $150.1 million in 2025 as compared to 2024 and increased $92.0 million in 2024 as compared to 2023 primarily due to growth in our core commercial lines resulting from improved retention, increased pricing and substantial new business production. Assumed Premium Assumed premium is the total premium associated with the insurance risk transferred to us by other insurance and reinsurance companies pursuant to reinsurance contracts. Assumed premium decreased $7.3 million in 2025 as compared to 2024 due to targeted management actions of exiting certain reinsurance programs, while assumed premium increased $52.4 million in 2024 as compared to 2023 due to the addition of new programs and cedant growth. 39 Table of Contents Ceded Premium Ceded premium is the portion of direct premium that we cede to our reinsurers under our reinsurance contracts. Ceded premium increased $26.8 million in 2025 due to growth in the subject premium base and ceded reinsurance premium adjustments. For 2024, the ratio of ceded premium to direct premium remained flat as compared to 2023, due to rate decreases in property offsetting rate increases in casualty. Net Investment Income Net investment income was $97.5 million for the year ended December 31, 2025, an increase of $15.6 million or 19.0% from the year ended December 31, 2024. The increase was primarily from our fixed income portfolio increase of $17.9 million or 25.7%, as a result of portfolio management actions, including investing at higher rates, and portfolio growth, offset by lower income on other long-term investments. Net investment income was $82.0 million for the year ended December 31, 2024, an increase of $22.4 million or 37.5% from the year ended December 31, 2023. The increase was primarily from our fixed income portfolio increase of $13.5 million or 23.9%, as a result of portfolio management actions, including investing at higher rates and the strategic re-allocation of equity securities into fixed maturity securities. The following table details our net investment income for the years ended December 31, 2025, 2024, and 2023: (In thousands, except average yields) 2025 2024 2023 Investment income: Interest on fixed maturities $ 87,642  $ 69,703  $ 56,243  Dividends on equity securities —  341  3,548  Income (loss) on other long-term investments 6,944  7,939  (31) Other 15,123  14,951  9,324  Total investment income $ 109,709  $ 92,934  $ 69,084  Less investment expenses 12,171  10,948  9,478  Net investment income $ 97,538  $ 81,986  $ 59,606  Average yield on fixed income securities pre-tax(1) 4.29  % 3.73  % 3.28  % Average yield on investment portfolio pre-tax 3.91  % 3.67  % 3.02  % (1) Fixed income securities yield excluding net unrealized investment gains/losses and expenses. Refer to Note 2 "Investments" in Part II, Item 8 for more information on net investment income. Net Investment Gains (Losses) Net investment losses were $3.8 million for the year ended December 31, 2025 as compared to net investment losses of $5.4 million for the year ended December 31, 2024. The primary reason for the change relates to management actions within the Company's fixed income portfolio to reinvest at higher rates for the year ended December 31, 2024 and an impairment loss recognized on a commercial mortgage loan for the year ended December 31, 2025. Net investment losses were $5.4 million for the year ended December 31, 2024 as compared to net investment gains of $1.3 million for the year ended December 31, 2023. The primary reason for the change relates to management actions within the Company's fixed income portfolio to reinvest at higher rates. Refer to Note 2 "Investments" in Part II, Item 8 for more information on investment gains and losses. 40 Table of Contents Benefits, Losses and Expenses Losses and Loss Settlement Expenses The following shows losses and loss settlement expenses for the years ended December 31, 2025, 2024 and 2023: (In Thousands) Years Ended December 31, 2025 2024 2023 Loss and loss settlement expenses, excluding catastrophes and prior year reserve development $ 728,502  $ 681,604  $ 642,915  Impact of catastrophes, including prior year reserve development 41,090  63,154  64,152  Prior year (favorable) unfavorable reserve development on non-catastrophe losses (5,190) (153) 62,347  Loss and loss settlement expenses $ 764,402  $ 744,605  $ 769,414  Net loss ratio 59.1  % 63.3  % 74.4  % For the year ended December 31, 2025, our loss and loss settlement expenses were $19.8 million, or 2.7%, higher than 2024 and our net loss ratio improved 4.2 points. This was driven by the overall increase and growth in company business, improvement in the underlying loss ratio, favorable prior year development, and a favorable year for catastrophe losses. The underlying loss ratio improvement was driven in part by higher pricing, continued favorable frequency in most major lines, and favorable large loss experience in property lines. The Company experienced $5.2 million of favorable development, excluding catastrophe losses, in our net reserves for prior accident years for the year ended December 31, 2025. Favorable development in commercial automobile and fire and allied lines was largely offset by adverse development in commercial other liability. The commercial automobile favorable development of $22.3 million is a function of favorable experience as well as case-basis and IBNR reserve strengthening in recent years. Favorable development in fire and allied lines of $10.0 million is driven in part by reactions to favorable large loss experience in recent accident years. Adverse development in commercial other liability reflects the company's continued response to increased loss settlements resulting from the impact of economic and social inflation, including increased litigation activity. In 2025, our pre-tax catastrophe losses were $41.1 million, a decrease of $22.1 million compared to $63.2 million in 2024. In 2025, our catastrophe losses included 62 events. Catastrophe losses in 2025 added 3.2 points to the combined ratio, which is below our historical 10-year average. The Company continues to evaluate and limit our exposure in regions prone to naturally occurring catastrophic events through a combination of geographic diversification and restrictions on the amount and location of new business production in such regions. We intend to continue with targeted underwriting and rate initiatives in some regions and/or purchase additional reinsurance as necessary to reduce our exposure. 2024 Results For the year ended December 31, 2024, our loss and loss settlement expenses were $24.8 million, or 3.2%, lower than 2023 and our net loss ratio improved 11.1 points. This was driven by improvement in the underlying loss ratio, no prior year development, and a favorable year for catastrophe losses. The underlying loss ratio improvement was driven in part by higher pricing, continued favorable frequency in most major lines, and favorable large loss experience in property and surety. Favorable results are partially offset by an increase in current and prior accident year loss estimates for other liability reflecting continued efforts to strengthen liability reserves subject to increasing economic and social inflation influences. The Company experienced $0.2 million of favorable development, excluding catastrophe losses, in our net reserves for prior accident years for the year ended December 31, 2024. For non-catastrophe losses, favorable development in commercial automobile and fire and allied lines was offset by adverse development in commercial other liability. The commercial automobile favorable development of $34.5 million is a function of favorable experience as well as case-basis and IBNR reserve strengthening in recent years. Favorable development in fire and allied lines of $10.5 41 Table of Contents million is driven in part by reactions to favorable large loss experience in recent accident years. Adverse development in commercial other liability reflects the company's continued response to increased loss settlements resulting from the impact of economic and social inflation, including increased litigation activity. In 2024, our pre-tax catastrophe losses were $63.2 million, a decrease of $1.0 million compared to $64.2 million in 2023. In 2024, our catastrophe losses included 74 events. Catastrophe losses in 2024 added 5.4 points to the combined ratio, which is below our historical 10-year average. The Company continues to evaluate and limit our exposure in regions prone to naturally occurring catastrophic events through a combination of geographic diversification and restrictions on the amount and location of new business production in such regions. We intend to continue with targeted underwriting and rate initiatives in some regions and/or purchase additional reinsurance as necessary to reduce our exposure. 2023 Results For the year ended December 31, 2023, our loss and loss settlement expenses were $132.3 million, or 20.7%, higher than 2022 and our net loss ratio increased 7.4 points. The primary drivers were an increase in loss and loss settlement expenses of $80.4 million in commercial lines and $48.0 million in reinsurance assumed, partially offset by $64.2 million of catastrophe losses in 2023 for our direct and assumed reinsurance business as compared to $73.5 million in 2022. The Company experienced $62.3 million of adverse development, excluding catastrophe losses, in our net reserves for prior accident years for the year ended December 31, 2023. Commercial other liability lines experienced adverse development of $52.9 million primarily in our excess and surplus lines excess casualty book along with some adverse development in standard umbrella and construction defect due to increasing severity pressures. The increases in these longer tail lines, especially in accident years 2016-2019, related to social and economic inflation, and prompted a re-evaluation of trend assumptions for more recent accident years. The commercial automobile line of business also experienced adverse development of $9.0 million related to increasing severity largely in post-COVID-19 accident years. Commercial fire and allied lines experienced adverse development of $4.4 million largely due to development on both catastrophe and non-catastrophe losses, primarily from accident year 2022. The assumed reinsurance line of business contributed an additional $3.5 million of adverse development largely driven by catastrophe losses. In 2023, our pre-tax catastrophe losses were $64.2 million, a decrease of $9.3 million compared to $73.5 million in 2022. In 2023, our catastrophe losses included 61 events. Catastrophe losses in 2023 added 6.2 points to the combined ratio, which is below our historical 10-year average. Amortization of Deferred Policy Acquisition Costs ("DAC") The following is a summary of the components of DAC, including amortization: (In Thousands) Years ended December 31, 2025 2024 2023 Beginning balance $ 147,224  $ 126,532  $ 104,225  Acquisition costs deferred 325,392  302,017  267,298  Amortization of deferred policy acquisition costs(1) (314,432) (281,325) (244,991) Ending balance $ 158,184  $ 147,224  $ 126,532  (1) Amortization of deferred policy acquisition costs includes impact of changes in foreign currency exchange rates on the Lloyd's of London business, which is included as a component of accumulated other comprehensive income (loss). DAC is amortized over the period the related premium is earned. Amortization increased for the years ended December 31, 2025 and 2024, primarily reflecting an increase in deferred underwriting costs associated with the growth of the business. 42 Table of Contents Net Loss Ratios by Line The following table provides our net loss ratio for the years ended December 31, 2025, 2024 and 2023: Years ended December 31, 2025 2024 2023 (In thousands, except ratios) Net Earned Premium Net Losses and Loss Settlement Expenses Incurred Net Loss Ratio Net Earned Premium Net Losses and Loss Settlement Expenses Incurred Net Loss Ratio Net Earned Premium Net Losses and Loss Settlement Expenses Incurred Net Loss Ratio Commercial lines Other liability 389,154  283,599  72.9  % $ 343,027  $ 283,034  82.5  % $ 320,762  $ 249,106  77.7  % Fire and allied lines 259,005  109,972  42.5  252,142  125,807  49.9  244,674  183,533  75.0  Automobile 287,996  166,028  57.6  239,964  138,517  57.7  208,874  176,667  84.6  Workers' compensation 65,040  43,291  66.6  54,815  37,524  68.5  53,039  33,224  62.6  Surety(1) 64,096  24,522  38.3  60,285  14,812  24.6  39,922  22,259  55.8  Miscellaneous 10,004  5,614  56.1  9,802  5,742  58.6  2,702  940  34.8  Total commercial lines 1,075,295  633,026  58.9  % $ 960,035  $ 605,436  63.1  % $ 869,973  $ 665,729  76.5  % Personal lines Fire and allied lines 14,690  6,146  41.8  % 14,237  8,325  58.5  % 4,733  3,402  71.9  % Automobile 1,752  1,116  63.7  1,214  732  60.3  —  (837) NM Miscellaneous 2  (54) NM 10  197  NM 22  (82) NM Total personal lines 16,444  7,208  43.8  % 15,461  9,254  59.9  % 4,755  2,483  52.2  % Reinsurance assumed(2) 200,957  124,168  61.8  % 201,254  129,915  64.6  % 159,859  101,202  63.3  % Total 1,292,696  764,402  59.1  % 1,176,750  744,605  63.3  % $ 1,034,587  $ 769,414  74.4  % NM = not meaningful (1) Commercial lines "Surety" previously referred to as "Fidelity and surety." (2) Reinsurance assumed includes Lloyd's of London 43 Table of Contents Commercial Lines The net loss ratio in our commercial lines of business was 58.9 percent in 2025 compared to 63.1 percent in 2024 and 76.5 percent in 2023. This result was driven by improvement in the underlying loss ratio, favorable prior year development, and a favorable year for catastrophe losses. Commercial Other Liability We write numerous types of risk that are exposed to liability losses in our direct and assumed books of business. This includes, but is not limited to, bodily injury, property damage, standard umbrella, excess liability, and product liability (including construction defect) loss and loss adjustment expenses. The net loss ratio improved 9.6 points in 2025 compared to 2024. The improved loss ratio was driven by the underlying and prior period development. The Company has been strengthening reserves across our portfolio in response to increased loss settlements resulting from the impact of economic and social inflation, including increased litigation activity. Additional reserve strengthening took place in 2025 but to a lesser extent than 2024. Commercial Fire and Allied Lines The net loss ratio improved 7.4 points in 2025 compared to 2024. Drivers include favorable large loss experience compared to earlier years and favorable catastrophe experience in 2025. Commercial Automobile The net loss ratio improved 0.1 points in 2025 compared to 2024. The underlying result was favorable in 2025 compared to 2024 driven by consistent pricing increases and continued favorable frequency trends associated with more restrictive underwriting guidelines and exposure appetite. This was offset by prior year development which was favorable in 2025 but to a lesser extent than 2024. Workers' Compensation The net loss ratio improved 1.9 points in 2025 compared to 2024. The overall improvement was driven by favorable prior year development partially offset by some large loss experience in the current accident year. Surety The net loss ratio deteriorated 13.7 points in 2025 compared to 2024. When surety losses occur, our loss is determined by estimating the cost to complete the remaining work and to pay the contractor's unpaid bills, offset by contract funds due to the contractor, reinsurance, and the value of any collateral to which we may have access. 2025 was a return to longer term profitability levels and disciplined underwriting, while 2024 benefited from unusually early favorable large loss results. Personal Lines The net loss ratio improved 16.1 points in 2025 compared to 2024, due to proportional assumed reinsurance for homeowners multi-peril coverage included in personal fire and allied lines. Reinsurance Assumed The net loss ratio improved 2.8 points in 2025 compared to 2024. Our assumed reinsurance portfolio is comprised of contracts that provide reinsurance protection to unaffiliated insurance companies. We only reinsure companies with attractive expected profitability, relevant materiality, and strong reputation. Our reinsurance business focuses on long-term relationships. The 2025 non-catastrophe result was relatively consistent with 2024. The business is benefiting from increased pricing and tightly managed loss exposure. Some adverse prior year development was recognized in 2025 driven by worse than expected losses on a few accounts. The overall improvement in 2025 was driven by favorable catastrophe results. 44 Table of Contents Underwriting Expenses The following is a summary of underwriting expenses, including the underwriting expense ratio: (In Thousands) Years Ended December 31, 2025 2024 2023 Amortization of deferred policy acquisition costs $ 315,323  $ 281,338  $ 244,991  Other underwriting expenses 146,609  140,942  115,800  Underwriting expenses $ 461,932  $ 422,280  $ 360,791  Net earned premium 1,292,696  1,176,750  1,034,587  Expense ratio(1) 35.7  % 35.9  % 34.9  % (1) Expense ratio is calculated by dividing non-deferred underwriting expenses and amortization of deferred policy acquisition costs by net earned premium. The expense ratio measures a company's operational efficiency in producing, underwriting and administering its insurance business. The decrease in expense ratio in 2025 as compared to 2024 is driven by expense management actions and growth, partially offset by accelerated development of our new policy administration system implemented in 2025, and increased performance-based compensation for employees and agents due to current year achievements. The increase in expense ratio in 2024 as compared to 2023 is due primarily to investments in talent to deepen expertise across the Company; accelerated development of the new policy administration system (implemented in 2025); and increased performance-based compensation for employees and agents due to current year achievements. Interest Expenses The following is a summary of interest expense: (In Thousands) Years Ended December 31, 2025 2024 2023 Interest paid $ 11,267  $ 7,281  $ 3,260  Our long term debt obligations are $50.0 million of private placement notes issued in December 2020, and $70.0 million and $30.0 million of senior unsecured notes issued in May 2024 and July 2025, respectively. Interest expense increased in 2025 due to the issuance of the senior unsecured notes. Refer to Note 13 "Debt" in Part II, Item 8 for more information on long term debt. Income Taxes The following is a summary of income tax expense (benefit), including the effective tax rate: (In Thousands) Years Ended December 31, 2025 2024 2023 Income (loss) before income taxes $ 147,936 $ 77,034 $ (39,721) Income tax expense (benefit) 29,745 15,077 (10,021) Effective tax rate(1) 20.1  % 19.6  % 25.2  % (1)The effective tax rate is calculated by dividing 'Income tax expense (benefit)' by 'Income (loss) before income taxes' The consolidated effective tax rate for 2025 was 20.1 percent, compared with 19.6 percent in 2024 and 25.2 percent in 2023. The effective tax rate for the year ended December 31, 2025 differs from the statutory rate of 21% primarily due to the net effect of tax-exempt municipal bond interest, state income taxes and interest on a federal tax refund. Refer to Note 7 "Income Tax" in Part II, Item 8 for more information on income taxes, including deferred tax assets and liabilities. 45 Table of Contents Adjusted Operating Income (See "Non-GAAP Financial Measures") The table below shows the adjustments made to reconcile Net income (loss) to Adjusted operating earnings: Net Income Reconciliation (In Thousands) Years Ended December 31, 2025 2024 2023 Income statement data Net income (loss) $ 118,191  $ 61,957  $ (29,700) Less: Net investment gains (losses), after-tax (3,019) (4,289) 1,006  Adjusted operating income (loss) $ 121,210  $ 66,246  $ (30,706) Adjusted operating income reported in 2025 was primarily due to an increase in net earned premium of $115.9 million combined with a decrease in the underlying loss ratio by 1.6 points to 56.3%, a decrease in the catastrophe loss ratio of 2.2 points to 3.2%, and favorable prior year reserve development of 0.4 points in 2025. In addition, net investment income increased by $15.6 million. The underwriting expense ratio improved 0.2 points to 35.7%. Adjusted operating income reported in 2024 was primarily due to an increase in net earned premium of $142.2 million combined with a decrease in the underlying loss ratio by 4.3 points to 57.9%, a decrease in the catastrophe loss ratio of 0.8 points to 5.4%, and no prior year reserve development. In addition, net investment income increased by $23.2 million. The underwriting expense ratio increased 1.0 point to 35.9% Adjusted operating loss reported in 2023 was primarily due to an increase in losses and loss settlement expenses of $132.1 million attributable to adverse reserve development of $67.8 million which added 6.0 points to the loss ratio. In addition, an increase in amortization of deferred acquisition costs of $32.0 million contributed to the operating loss. These were partially offset with an increase in net earned premium of $83.0 million and higher investment income of $15.0 million. INVESTMENTS Investment Philosophy The Company's assets are invested to preserve capital and maximize total return while maintaining an appropriate balance of risk. The risk-adjusted return on our portfolio is an important component of overall financial results, but quality and safety of principal is the highest priority of our investment program. We administer our investment portfolio based on investment guidelines approved by management and the Investment Committee of our Board of Directors that comply with applicable statutory regulations. The portfolio is structured to be compliant with state insurance laws that prescribe the quality, concentration and type of investments that may be made by insurance companies. We monitor our portfolio to appropriately manage risk, achieve portfolio objectives and maximize investment income as market conditions change. Our overall investment strategy is to stay fully invested (i.e., minimize cash balances). If additional cash is needed, we have the ability to take advances through the Federal Home Loan Bank of Des Moines ("FHLB Des Moines") facility. The Company entered into an investment management agreement with NEAM effective as of February 1, 2024, pursuant to which NEAM will provide investment management services. Investment Portfolio Our invested assets at December 31, 2025 totaled $2.5 billion as compared to $2.1 billion at December 31, 2024. We utilize a conservative investment philosophy, investing in a diversified portfolio of high-quality, intermediate-term taxable corporate bonds, taxable U.S. government and government agency bonds and tax-exempt U.S. municipal bonds. 46 Table of Contents The composition of our investment portfolio at December 31, 2025 is presented at carrying value in the following table: Percent (In Thousands, except ratios) Carrying Value of Total Fixed maturities, available-for-sale(1) US Treasury and government agencies $ 104,104  4.0  % States, municipalities and political subdivisions 261,734  11.0  Corporate 783,154  32.0  Residential mortgage-backed 715,597  29.0  Commercial mortgage-backed 145,407  6.0  Other asset-backed 195,354  8.0  Total Fixed maturities, available-for-sale 2,205,350  90.0  Mortgage loans 30,830  1.0  Other long-term investments(2) 228,507  9.0  Total $ 2,464,687  100.0  % (1) Available-for-sale fixed maturity securities are carried at fair value. (2) As a member of Lloyd’s, the Company participates in the Syndicate results which include the fair value of the investments. Starting in Q4 2024, these investments are included in other long-term investments. The fair value of Lloyd's syndicate investments included in other long-term investments was $127.9 million as of December 31, 2025. Also included in our "Other long-term investments" on the Consolidated Balance Sheets is our interest in limited liability partnerships with a current fair value of $99.2 million at December 31, 2025. Credit Quality The following table shows the composition of fixed maturity securities by credit rating at December 31, 2025 and 2024. Information contained in the table is generally based upon issuer credit ratings provided by external rating agencies. (In Thousands) December 31, 2025 December 31, 2024 Rating Carrying Value % of Total Carrying Value % of Total AAA $ 574,379  26.0  % $ 1,013,702  54.3  % AA 894,246  40.6  243,353  13.0  A 481,633  21.8  373,208  20.0  Baa/BBB 207,649  9.4  233,523  12.5  Other/Not Rated 47,443  2.2  4,545  0.2  $ 2,205,350  100.0  % $ 1,868,331  100.0  % As of December 31, 2025 and 2024, we did not have direct exposure to investments in subprime mortgages or other credit enhancement vehicles. Duration Our investment portfolio is invested primarily in fixed maturity securities whose fair value is susceptible to market risk, specifically interest rate changes. Duration is a measurement used to quantify our inherent interest rate risk and analyze our ability to match our invested assets to our reserve liabilities. Invested assets and reserve liability accounts with similar durations will have an offsetting effect of any change in interest rates. The primary purpose for matching invested assets and reserve liabilities is liquidity, and with appropriate matching, our investments will mature when cash is needed, preventing the need to liquidate other assets prematurely. Mismatches in the duration of assets and liabilities can cause significant fluctuations in our results of operations. We analyze potential changes in the value of our investment portfolio due to the market risk factors noted above within the overall context of asset and liability management. A technique we use in the management of our investment portfolio specifically related to interest rate risk is the calculation of duration. Our actuaries estimate the payout pattern of our reserve liabilities to determine their duration, which is the present value of the weighted average payments expressed in years. We then establish a target duration for our investment portfolio so that at any 47 Table of Contents given time the estimated cash generated by the investment portfolio will closely match the estimated cash required for the payment of the related reserves. We structure the investment portfolio to meet the target duration to achieve the required cash flow, based on liquidity and market risk factors. The weighted average effective duration of our portfolio of fixed maturity securities was 4.3 years at December 31, 2025 compared to 4.2 years at December 31, 2024. Refer to Note 2 "Investments" in Part II, Item 8 for more information on investment maturities. Unrealized Investment Gains and Losses Net unrealized investment losses, after tax, totaled $25.3 million, $72.2 million and $67.0 million as of December 31, 2025, 2024 and 2023, respectively. The unrealized investment loss position improved from December 31, 2024 due to the decrease in the bond market interest rates during the twelve-month period ended December 31, 2025. The net unrealized investment losses in 2024 and 2023 were a result of continued elevated interest rates that resulted in a change in unrealized gains and losses. Refer to Note 2 "Investments" in Part II, Item 8 for more information on net unrealized investment gains and losses. Expected Credit Losses and Watch List We prepare a watch list to identify securities to evaluate for expected credit losses. Factors used in preparing the watch list include fair values relative to amortized cost, ratings, negative ratings actions and other factors. Detailed analysis is performed for each security on the watch list to further assess the presence of credit impairment loss indicators and, where present, calculate an allowance for expected credit loss or direct write-down of a security’s amortized cost. At December 31, 2025, our watch list included five fixed maturity securities in an unrealized loss position with an amortized cost of $13.4 million, no allowance for expected credit losses, unrealized losses of $0.6 million and a fair value of $12.5 million. At December 31, 2024, our watch list included 10 fixed maturity securities in an unrealized loss position with an amortized cost of $21.8 million, no allowance for expected credit losses, unrealized losses of $2.2 million and a fair value of $24.0 million. Refer to Note 2 "Investments" in Part II, Item 8 for more information on our investments. 48 Table of Contents REINSURANCE Reinsurance is a contract by which one insurer, called the reinsurer, agrees to cover, under certain defined circumstances, a portion of the losses incurred by a primary insurer if a claim is made under a policy issued by the primary insurer. Our property and casualty insurance companies follow the industry practice of reinsuring a portion of their exposure to reduce the net liability on individual risks to predetermined limits and to protect us against catastrophic losses, such as a hurricane or tornado. Ceded Reinsurance Our reinsurance allows us to manage our risk, increase our underwriting capacity and protect us from large loss events. A summary of our key reinsurance programs are as follows: Property & Casualty Core Excess of Loss ("XOL") Treaty Our property and casualty working program, which we refer to as the core treaty, includes a multi-line layer which applies in excess of our retention, as well as property-only and casualty-only towers above the multi-line exhaustion point. Our core treaty incepts January 1, 2026, and each layer is fully placed with the exception of the new 5th Casualty that is 50% placed. The core treaty structure has changed from the 2025 treaty year including raising the multi-line retention and eliminating the annual aggregate deductible. The layer changes are summarized in the table below. Each layer includes provisions providing for extra-contractual and excess of policy limit losses and terrorism coverage. However, included coverage varies based on individual reinsurer participation of each layer. The multi-line treaty includes a provision that limits the per occurrence maximum limit to $12 million. Reinstatement is free and unlimited. This treaty provides coverage to the majority of the commercial property and casualty business that we write. The multi-line treaty combined with the property per risk provides for a combined limit of $46 million coverage excess of the $4 million retention, as compared to $3.0 million retention for the years 2022 through 2025, $2.5 million retention for the years 2021 through 2016, and $2.0 million for the years 2015 through 2012. The 1st Property Per Risk includes six free reinstatements of the full limit. The 2nd and 3rd Property Per Risk layers include one reinstatement to the full amount at the same premium. A semi-automatic property facultative treaty is in place providing coverage for a limit of $25 million excess of $50 million, which brings the combined treaty coverage limit available for an eligible risk to $71 million excess of $4 million. If we have a property risk that requires limits in excess of our reinsured limit, facultative reinsurance is obtained. The multi-line treaty combined with the casualty tower provides for a combined limit of $76 million excess of the $4 million retention, including the 5th layer co-participation. This treaty protects from a loss to an individual policyholder or clash event where an occurrence involves multiple policyholders. The 1st Casualty includes six free reinstatements of the full limit, while the Casualty 2nd, 3rd, 4th, and 5th include a single reinstatement of the full limit at the same premium. The casualty layers include a provision that limits the maximum amount of any one life for workers' compensation losses. At times we may obtain separate casualty facultative reinsurance to cover specific exposures or policies, based on particular exposures presented by a policyholder. Layer Limit Retention Placement Multi-Line 3,000  4,000  100  % Property Per Risk 1st 4,000  7,000  100  % Property Per Risk 2nd 14,000  11,000  100  % Property Per Risk 3rd 25,000  25,000  100  % Casualty 1st 4,000  7,000  100  % Casualty 2nd 10,000  11,000  100  % Casualty 3rd 19,000  21,000  100  % Casualty 4th 20,000  40,000  100  % Casualty 5th 20,000  60,000  50  % 49 Table of Contents Property Catastrophe XOL Effective January 1, 2026, the Company continued the pillar occurrence in addition to the property catastrophe XOL ceded reinsurance programs. No substantive structural changes were made to the property catastrophe XOL or pillar occurrence. With respect to the pillar occurrence, the event retention for Named Storm and Earthquake remains at $5.0 million while the event retention for All Other Perils remains at $4.0 million. The property catastrophe XOL remains fully placed, while the pillar occurrence placement was increased to 85%. We did not experience any property catastrophe events that produced a ceded loss to either program in 2023, 2024 or 2025. Our corporate property catastrophe reinsurance program, effective January 1, 2026, is an XOL treaty. The program consists of $130.0 million in coverage for losses in excess of $20.0 million. The treaty protects from catastrophic events such as earthquakes, hail, windstorms, and fires. The treaty consists of three layers and is fully placed. It includes provisions providing for extra-contractual and excess of policy limit losses and contains exclusions for communicable diseases and cyber loss. The property casualty XOL treaty includes a terrorism exclusion. Additionally, each layer can be reinstated once to its full amount at the same premium. The property catastrophe treaty limit was increased as of January 1, 2026 and retention remained the same as the prior year. Layer Limit Retention Placement First $ 15,000  $ 20,000  100  % Second $ 35,000  $ 35,000  100  % Third $ 80,000  $ 70,000  100  % Earthquake and Flood XOL Treaty We delegate underwriting authority to write a portfolio of Pacific Coast earthquake business. This arrangement began in 2019. An XOL treaty, effective January 1, 2026, is in place to specifically and exclusively reinsure business written through this arrangement. This program consists of $190.0 million for losses in excess of $10.0 million and is fully placed. Each layer can be reinstated once to its full amount at the same premium. Layer Limit Retention Placement First 25,000  10,000  100  % Second 35,000  35,000  100  % Third 70,000  70,000  100  % Fourth 60,000  140,000  100  % Surety Per Principal XOL Treaty Our surety treaty incepts on January 1, 2026 and is an XOL treaty. The program consists of $60.0 million in coverage for losses in excess of $5.0 million per principal. The first layer includes three paid reinstatements, while the second and third include one paid reinstatement. Losses are considered discovered to the treaty year in accordance with the contract terms and conditions. A new fourth layer was placed in 2026 to address business unit objectives and meet risk management priorities. Layer Limit Retention Placement First 5,000  5,000  100  % Second 15,000  10,000  100  % Third 25,000  25,000  100  % Fourth 15,000  50,000  100  % Terrorism Coverage Our principal terrorism reinsurance protection is the coverage provided through the Terrorism Risk Insurance Program Reauthorization Act of 2019 ("TRIPRA"), effective through December 31, 2027. TRIPRA coverage includes most direct commercial lines of business, including coverage for losses from nuclear, biological and chemical exposures if coverage was afforded by an insurer, with exclusions for commercial automobile insurance, burglary and theft insurance, surety, professional liability insurance and farm owners' multiple peril insurance. For calendar year 2025, the aggregate losses exceeding a threshold of $200.0 million industry-wide would be covered 50 Table of Contents under this protection. Our TRIPRA deductible was $138.5 million for 2025 and our TRIPRA deductible is expected to be $159.2 million for 2026. Our catastrophe and non-catastrophe reinsurance programs provide limited coverage for terrorism exposure excluding nuclear, biological and chemical-related claims. Assumed Reinsurance The Company offers reinsurance coverage for property and casualty insurance through traditional treaty reinsurance channels and participates in the Lloyd's market through its corporate member at Lloyd's. We target diversifying risks that complement our direct portfolio. The following provides more detail on the type of assumed reinsurance business we target. •Treaty reinsurance with regional property and casualty carriers, including casualty XOL, property per risk, and property catastrophe XOL. •Treaty reinsurance with professional reinsurers and Lloyd's syndicates. •Mortgage reinsurance with Freddie Mac and Fannie Mae, private mortgage insurers and surety carriers. •Treaty reinsurance on risks underwritten by managing general agents. •Treaty reinsurance underwritten on our behalf through reinsurance intermediary management agreements (RIMA) that define underwriting boundaries by product, class and type. For the year ended December 31, 2025, we made strategic changes in the assumed portfolio to protect margins. Some of the casualty quota share agreements were not seeing rates keep up with loss trends and we elected to non-renew certain agreements. Partially offsetting the reduction in premiums due to these underwriting decisions, we continued to grow our mortgage reinsurance and financial lines reinsurance portfolio. We are also seeing successful, profitable growth with select managing general agents whom we reinsure, and we are growing our business in the Lloyd's market as the opportunities in that market are among the best available currently. For the year ended December 31, 2024, we broadened the scope of our assumed portfolio by growing our client base and building around the renewal business. We grew our standard property and casualty treaty business while holding our property catastrophe retrocessional and Lloyd's businesses to only modest change. We engaged in the mortgage reinsurance market where conditions were favorable. We also incepted a few new managing general agent programs in the cyber liability and transactional liability markets. For the year ended December 31, 2023 we continued to grow our assumed programs by renewing the programs added in 2022 and continuing to diversify our risks. We reduced exposure in property catastrophe retrocessional treaty and managing general agent treaty, while significantly growing our standard property and casualty treaty and Lloyd's businesses. Reinsurer Credit Quality We use many reinsurers, both domestic and foreign, which helps us to avoid concentrations of credit risk associated with our reinsurance. Our criteria for selecting reinsurance markets is to generally require capital and surplus of at least $500.0 million and an A.M. Best rating or an S&P rating of at least "A-." If a reinsurer is rated by both rating agencies, then both ratings must be at least an "A-." Our key reinsurance programs are placed with reinsurers holding a rating of A- or better as of December 31, 2025. For the small amount of reinsurance capacity we utilize that doesn't meet our criteria, markets are required to collateralize the risk. 51 Table of Contents The following table represents the primary reinsurers we utilize and their financial strength ratings as of December 31, 2025: Name of Reinsurer A.M. Best S&P Rating Swiss Reinsurance American Corporation(1) A+ AA- Hannover Ruck SE(1)(2) A+ AA- Certain Underwriting Members of Lloyd's of London(1)(2) A+ AA- Arch Reinsurance Company(1) A+ A+ Berkely Reinsurance Company(1) A+ A+ Partner Reinsurance Company of the US(1)(2) A+ A+ R&V Versicherung AG(1) NR A+ MS Amlin AG(1)(2) A+ A+ Renaissance Reinsurance US Inc(1) A+ A+ SCOR Reinsurance Company(2) A A+ Axis Reinsurance Company(2) A A+ (1) Primary reinsurers participating in the property and casualty excess of loss programs. (2) Primary reinsurers participating in the surety excess of loss program. Refer to Part II, Item 8, Note 4 "Reinsurance" for further discussion of our reinsurance programs. 52 Table of Contents LIQUIDITY AND CAPITAL RESOURCES Liquidity measures our ability to generate sufficient cash flows to meet our short-term cash obligations and long-term cash obligations. Our cash inflows are primarily a result of the receipt of premiums, reinsurance recoveries, sales or maturities of investments, and investment income. Cash provided from these sources is used to fund the payment of losses and loss settlement expenses, the purchase of investments, operating expenses, dividends and interest payments and common stock repurchase, as well as pension plan contributions, as necessary. When considering our liquidity and cash flow, it is important to distinguish between the needs of our insurance subsidiaries and the needs of the holding company, United Fire Group, Inc. As an insurance holding company with no significant independent operations of our own, United Fire Group, Inc. derives its cash primarily from its insurance subsidiaries. The sources of liquidity of the holding company are principally comprised of dividends from subsidiaries, existing surplus notes, investment income on holding company assets and the ability to raise long-term public financing under an SEC-filed registration statement or private placement offering. These sources of liquidity and cash flow support the general corporate needs of the holding company, interest and debt service, and investment in core businesses. We monitor our capital adequacy to support our business on a regular basis. The future capital requirements of our business will depend on many factors, including our ability to write new business successfully and to establish premium rates and reserves at levels sufficient to cover losses. Our ability to underwrite is largely dependent upon the quality of our claims paying and financial strength ratings as evaluated by independent rating agencies. In particular, we require (1) sufficient capital to maintain our financial strength ratings, as issued by various rating agencies, at a level considered necessary by management to enable our insurance company subsidiaries to compete and (2) sufficient capital to enable our insurance company subsidiaries to meet the capital adequacy tests performed by regulatory agencies in the United States. Cash outflows may be variable because of the uncertainty regarding settlement dates for losses. In addition, the timing and amount of individual catastrophe losses are inherently unpredictable and could increase our liquidity requirements. The timing and amount of reinsurance recoveries may be affected by reinsurer solvency and reinsurance coverage disputes. The following table displays a summary of cash sources and uses in 2025, 2024 and 2023: Cash Flow Summary Years Ended December 31, (In Thousands) 2025 2024 2023 Cash provided by (used in) Operating activities $ 269,743  $ 340,304  $ 171,736  Investing activities (325,963) (292,487) (149,886) Financing activities 11,603  51,086  (16,454) Net increase (decrease) in cash and cash equivalents $ (44,617) $ 98,903  $ 5,396  At December 31, 2025, our cash and cash equivalents included $44.8 million related to money market accounts, compared to $23.1 million at December 31, 2024. Operating Activities Net cash flows provided by operating activities totaled $269.7 million, $340.3 million and $171.7 million in 2025, 2024 and 2023, respectively. The primary cash inflows from operating activities include insurance premiums and net investment income. The primary cash outflows from operating activities are comprised of payment of losses and loss settlement expenses, taxes and operating expenses. Our cash flows from operating activities were sufficient to meet our liquidity needs for the years ended December 31, 2025, 2024 and 2023. 53 Table of Contents Investing Activities Cash in excess of operating requirements is generally invested in fixed maturity securities. Fixed maturity securities provide regular interest payments and allow us to match the duration of our liabilities. For further discussion of our investments, including our philosophy and portfolio, see the Investment heading subcategory "Investment Portfolio" section contained in Part II, Item 7 of Management's Discussion and Analysis of Financial Condition and Results of Operations. Sales of investments and proceeds from calls or maturities of fixed maturity securities also can provide liquidity. During the next five years, $420.2 million, or 18.8 percent of our fixed maturity security portfolio will mature. Net cash flows used in investing activities totaled $326.0 million, $292.5 million and $149.9 million in 2025, 2024, and 2023, respectively. In 2025, we had cash inflows from scheduled and unscheduled investment maturities, redemptions, prepayments, and sales of investments that totaled $394.5 million compared to $680.0 million and $162.1 million for the same period in 2024 and 2023, respectively. Our cash outflows for investment purchases totaled $714.0 million in 2025, compared to $960.6 million and $301.1 million for the same period in 2024 and 2023, respectively. Financing Activities Net cash flows provided by financing activities totaled $11.6 million and $51.1 million for the years ended December 31, 2025 and 2024, respectively, due to the successful placement of $30.0 million and $70.0 million of senior unsecured notes in July 2025 and May 2024, respectively. Net cash flows used in financing activities totaled $16.5 million in 2023. The net cash flows used in financing activities are primarily the payment of cash dividends of $16.3 million, $16.2 million and $16.2 million in 2025, 2024 and 2023, respectively. Contractual Obligations and Commitments As of December 31, 2025, our required annual payments relating to contractual and other obligations were as follows: (In Thousands) Payments Due By Period Contractual Obligations Total Less Than One Year One to Three Years Three to Five Years More Than Five Years Loss and loss settlement expense reserves $ 1,924,826  $ 562,036  $ 745,458  $ 325,062  $ 292,270  Long term debt 277,313  12,438  24,875 24,875 215,125  Operating leases 13,971  7,612  5,513  812  34  Profit-sharing commissions 30,300  30,300  —  —  —  Total $ 2,246,410  $ 612,386  $ 775,846  $ 350,749  $ 507,429  Loss and Loss Settlement Expense Reserves The amounts presented are estimates of the dollar amounts and time periods in which we expect to pay out our gross loss and loss settlement expense reserves. Because the timing of future payments may vary from the stated contractual obligation, these amounts are estimates based upon historical payment patterns and may not represent actual future payments. Refer to "Critical Accounting Estimates — Losses and Loss Settlement Expenses" in this section for further discussion. Long term debt Our long term debt obligations are $50.0 million of private placement notes issued in December 2020, $70.0 million of senior unsecured notes issued in May 2024 and $30.0 million of senior unsecured notes issued in July 2025. For further discussion of our long term debt, refer to Part II, Item 8, Note 13 "Debt." 54 Table of Contents Operating Leases Our operating lease obligations are for the rental of office space, vehicles, computer equipment and office equipment. For further discussion of our operating leases, refer to Part II, Item 8, Note 12 "Lease Commitments." Profit-Sharing Commissions We offer our agents a profit-sharing plan as an incentive for them to place high-quality property and casualty insurance business with us. Based on business produced by the agencies in 2025, property and casualty agencies expect to receive profit-sharing payments of $30.3 million in 2026. Funding Commitments Pursuant to agreements with our limited liability partnership investments, we are contractually committed through 2030 to make capital contributions upon request of the partnerships. The timing of these additional contributions is unknown and based upon the timing of when investments and agreements are executed or signed compared to when the actual commitments are funded or closed. Our remaining potential contractual obligation was $15.9 million at December 31, 2025. Guaranty Fund Assessments The Company is subject to guaranty fund and other assessments by the states in which it writes business. At December 31, 2025 the accrued liability for guaranty fund assessments was $0 and the premium tax benefit asset was $1.9 million. Guaranty fund assets are typically realized over the next five to 10 years. No discount is applied to the liability for assessments. Legal Proceedings The Company is a party to various claims and litigation incidental to its business, which, based on the facts and circumstances currently known, are not material to the Company's results of operations or financial position as of December 31, 2025. Commitments for Capital Expenditures Dividends Dividends paid to shareholders totaled $16.3 million, $16.2 million and $16.2 million in 2025, 2024 and 2023, respectively. Payment of any future dividends and the amounts of such dividends depends upon factors such as net income, financial condition, capital requirements, and general business conditions. We will only pay dividends if declared by our Board of Directors out of legally available funds. As an insurance holding company with no significant independent operations of its own, United Fire Group, Inc. relies on dividends received from its insurance company subsidiaries in order to pay dividends to its common shareholders. Dividends payable by our insurance subsidiaries are governed by the laws in the states in which they are domiciled. In all cases, these state laws permit the payment of dividends only from earned surplus arising from business operations. For example, under Iowa law, the maximum dividend or distribution that may be paid within a 12-month period without prior approval of the Iowa Insurance Commissioner is generally restricted to the greater of 10 percent of statutory surplus as of the preceding December 31 less any dividends paid in the previous 12 months, or net income of the preceding calendar year on a statutory basis less any dividends paid in the previous 12 months, not greater than earned statutory surplus. Other states in which our insurance company subsidiaries are domiciled may impose similar restrictions on dividends and distributions. Based on these restrictions, at December 31, 2025 UF&C is able to make a maximum of $50.6 million in dividend payments without prior regulatory approval. These restrictions are not expected to have a material impact in meeting our cash obligations. 55 Table of Contents Share Repurchases Under our share repurchase program, we may purchase our common stock on the open market or through privately negotiated transactions. The amount and timing of any purchases will be at our discretion and will depend upon a number of factors, including the share price, economic and general market conditions, and corporate and regulatory requirements. Our share repurchase program may be modified or discontinued at any time. The Board of Directors reauthorized the share repurchase program in August 2024 and extended the program through August 2026. The Company did not repurchase any shares of our common stock during the years ended December 31, 2025, 2024 and 2023. At December 31, 2025, we remain authorized to purchase up to one million shares of our common stock. Credit Facilities In December 2023, the Company became a member of the Federal Home Loan Bank of Des Moines ("FHLB Des Moines"). Membership allows access to loans or advances. As of December 31, 2025, there were no advances outstanding under the FHLB Des Moines agreement. Refer to Note 13 "Debt" in Part II, Item 8 for further information regarding the agreement with FHLB Des Moines. Stockholders' Equity Stockholders' equity increased 20.4 percent to $941.2 million at December 31, 2025, from $781.5 million at December 31, 2024. The increase is primarily attributed to net income of $118.2 million and a decrease in net unrealized losses on fixed maturity securities, net of tax, of $47.0 million, partially offset with shareholder dividends of $16.3 million. As of December 31, 2025, the book value per share of our common stock was $36.88, compared to $30.80 at December 31, 2024. Recently Issued Accounting Standards Information specific to accounting standards we adopted for the year ended December 31, 2025 or pending accounting standards we expect to adopt in the future is incorporated by reference from Note 1 "Summary of Significant Accounting Policies" contained in Part II, Item 8, "Financial Statements and Supplementary Data."