Market risk is the risk of economic losses due to adverse changes in the estimated fair value of a financial instrument as the result of changes in equity prices, interest rates, foreign currency exchange rates, and commodity prices. Our consolidated balance sheets include assets and liabilities with estimated fair values that are subject to market risk. Our primary market risks are equity price risk associated with investments in equity securities, interest rate risk associated with investments in fixed maturity securities and foreign currency exchange rate risk associated with our international operations. During the six months ended June 30, 2026, there were no material changes in our market risk exposures from those described in our 2025 Annual Report on Form 10-K. Credit Risk Credit risk, which is not considered a market risk, is the risk that an entity becomes unable or unwilling to fulfill its obligations to us. Our primary credit risks are the credit risk within our fixed maturity portfolio and the credit risk related to our reinsurance recoverables. In the second quarter of 2026, we recorded a $205.3 million provision for expected credit losses on reinsurance recoverables within State National's program services fronting operations, all of which related to one capacity provider that is currently in bankruptcy. See note 7 of the notes to consolidated financial statements for additional details. 49 Table of Contents For the six months ended June 30, 2026, there were no other material changes in our credit risk exposures from those described in our 2025 Annual Report on Form 10‑K.