Forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 appear throughout this report. These forward looking statements generally include words such as “expect,” “predict,” “estimate,” “will,” “should,” “anticipate,” “believe” and similar expressions. Such assumptions are, in turn, based on information available and internal estimates and analyses of general economic conditions, competitive factors, conditions specific to the property and casualty insurance and reinsurance industries, claims development and the impact thereof on our loss reserves, the adequacy and financial security of our reinsurance programs, developments in the securities market and the impact on our investment portfolio, regulatory changes and conditions and other factors. These assumptions are subject to various risks, uncertainties and other factors, including, without limitation those set forth in “Item 1A. Risk Factors” within the Annual Report on Form 10-K for the year ended December 31, 2025 and Part II within this report. Actual results could differ materially from those expressed in, or implied by, these forward looking statements. Forward looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this report. While the Company may elect to update these forward looking statements at some point in the future, the Company specifically disclaims any obligation to do so. You should review the various risks, uncertainties and other factors listed from time to time in our Securities and Exchange Commission filings. The results of operations for the six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2026, or for any other future period. The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included in Part I, Item 1 of this Quarterly Report, and in conjunction with our audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K as filed with the SEC on February 24, 2026. References to the “Company,” “Palomar,” “we,” “us,” and “our” are to Palomar Holdings, Inc. and its subsidiaries, unless the context otherwise requires. Overview We are a specialty insurance company that provides property and casualty insurance products to individuals and businesses. We use our underwriting and analytical expertise to provide innovative solutions in five product categories: Earthquake, Inland Marine and Property, Casualty, Crop, and Surety & Credit. We use proprietary data analytics and a modern technology platform to offer our customers flexible products with customized and granular pricing for both the admitted and excess and surplus lines (“E&S”) markets. Our insurance company subsidiaries, Palomar Specialty Insurance Company (“PSIC”), Palomar Excess and Surplus Insurance Company (“PESIC”), and First Indemnity of America Insurance Co. (“FIA”) carry an “A” (Excellent) rating from A.M. Best Company (“A.M. Best”), a leading rating agency for the insurance industry. Palomar Casualty and Surety Company (“PCSC”) carries an “A-” (Excellent) rating from A.M. Best. We distribute our products through multiple channels, including retail agents, program administrators, wholesale brokers, and partnerships with other insurance companies. Our business strategy is supported by a comprehensive risk transfer program with reinsurance coverage that we believe reduces earnings volatility and provides appropriate levels of protection from catastrophic events. Our management team combines decades of insurance industry experience across specialty underwriting, reinsurance, program administration, distribution, and analytics. Founded in 2014, we have significantly grown our business and have generated attractive returns. We have organically increased gross written premiums from $16.6 million in our first year of operations to $2.0 billion for the year ended December 31, 2025, which reflects a compound annual growth rate of approximately 55%. We have also been profitable since 2016 and our net income growth since 2016 reflects a compound annual growth rate of 46%. We seek to continuously grow our income by developing product offerings for lines of business that harness our core competencies and where we believe we can generate attractive risk adjusted returns. In recent years, we have introduced several new products including Crop, E&S Casualty, Surety and Environmental Liability. These new products diversify our book of business and broaden our product portfolio. We believe that our market opportunity, distinctive products, and differentiated business model position us to grow our business profitably. Components of Our Results of Operations Gross Written Premiums Gross written premiums are the amounts received or to be received for insurance policies written or assumed by us during a specific period of time without reduction for policy acquisition costs, reinsurance costs or other deductions. The volume of our gross written premiums in any given period is generally influenced by: •Volume of new business submissions in existing products or partnerships; 25 Table of Contents •Binding of new business submissions in existing products or partnerships into policies; •Entrance into new partnerships or the offering of new types of insurance products; •Exits from existing partnerships or reducing or ceasing to offer existing insurance products; •Renewal rates of existing policies; and •Average size and premium rate of bound policies. Our gross written premiums are also impacted when we assume unearned in-force premiums due to new partnerships or other business reasons. In periods where we assume a large volume of unearned premiums, our gross written premiums may increase significantly compared to prior periods and the increase may not be indicative of future trends. The majority of our Crop written premiums are recognized in the third quarter, as we receive the requisite reporting from insureds at that time. This pattern reflects the seasonal nature of the Crop business, which typically results in a disproportionate amount of Crop premiums being recognized in the third quarter. As such, our interim results may not be indicative of full-year performance. Ceded Written Premiums Ceded written premiums are the amount of gross written premiums ceded to reinsurers. We enter into reinsurance contracts to limit our exposure to potential losses and to provide additional capacity for growth. We cede premiums through excess of loss (“XOL”) agreements, quota share agreements, and fronting agreements. Ceded written premiums are earned pro-rata over the period of risk covered. The volume of our ceded written premiums is impacted by the amount of our gross written premiums and our decisions to increase or decrease limits or retention levels in our XOL agreements and co-participation levels in our quota share agreements. The volume of ceded written premiums is also impacted by the amount of premium we write under fronting agreements. Our ceded written premiums can be impacted significantly in certain periods due to changes in quota share agreements. In periods where we modify a quota share agreement, ceded written premiums may increase or decrease significantly compared to prior periods and these fluctuations may not be indicative of future trends. Our XOL costs as a percentage of gross earned premiums also may vary each period due to changes in cost of XOL between contract periods, changes of premium in-force during the XOL contract period, or due to acceleration of XOL charges or the need to purchase additional XOL reinsurance due to losses. Net Earned Premiums Net earned premiums represent the earned portion of our gross written premiums, less the earned portion that is ceded to third-party reinsurers under our reinsurance agreements. The majority of our insurance policies have a term of one year and premiums are earned pro rata over the terms of the policies. Crop premiums are earned ratably over the risk period. The requisite reporting of Crop premiums is primarily received in the third quarter, after the start of the risk period, and earned premium is caught up to cover the period between the start of the risk period and receipt of reporting. Generally, this process results in a significant amount of the Crop earned premiums being recognized in the third quarter of each year. Commission and Other Income Commission and other income consist of commissions earned on policies written on behalf of third-party insurance companies where we have no exposure to the insured risk and certain fees earned in conjunction with underwriting policies. Commission and other income are earned on the effective date of the underlying policy. Losses and Loss Adjustment Expenses Losses and loss adjustment expenses represent the costs incurred for losses, net of any losses ceded to reinsurers. These expenses are a function of the size and term of the insurance policies we write and the loss experience associated with the underlying coverage. Certain policies we write subject us to attritional losses such as building fires or casualty claims. In addition, many of the policies we write subject us to catastrophe losses. Catastrophe losses are certain losses resulting from events involving multiple claims and policyholders, including earthquakes, hurricanes, floods, droughts, convective storms, terrorist acts or other aggregating events. Our losses and loss adjustment expenses are generally affected by: •The occurrence, frequency, and severity of catastrophe events in the areas where we underwrite policies relating to these perils; •The occurrence, frequency, and severity of non‑catastrophe attritional losses; •The mix of business written by us; 26 Table of Contents •The reinsurance agreements we have in place at the time of a loss; •The geographic location and characteristics of the policies we underwrite; •Changes in the legal or regulatory environment related to the business we write; •Trends in legal defense costs; •Inflation in housing and construction costs; and •Increases in amounts awarded by courts and juries. Losses and loss adjustment expenses are based on an actuarial analysis of the estimated losses, including losses incurred during the period and changes in estimates from prior periods. Losses and loss adjustment expenses may be paid out over multiple years. Acquisition Expenses Acquisition expenses are principally comprised of the commissions we pay retail agents, program administrators and wholesale brokers, net of ceding commissions and fronting fees we receive on business ceded under quota share and fronting reinsurance agreements. In addition, acquisition expenses include premium‑related taxes and other fees. Acquisition expenses related to each policy we write are deferred and expensed pro rata over the term of the policy. Other Underwriting Expenses Other underwriting expenses represent the general and administrative expenses of our insurance operations including employee salaries and benefits, software and technology costs, office rent, stock-based compensation, licenses and fees, and professional services fees such as legal, accounting, and actuarial services. Interest Expense Interest expense consists of interest incurred on borrowings from our U.S. Bank credit agreement and FHLB line of credit and the unused line fee and amortization of the commitment fee on our U.S. Bank credit agreement. Net Investment Income We earn investment income on our portfolio of invested assets. We invest primarily in investment grade fixed maturity securities, including U.S. government issues, state government issues, mortgage and asset-backed obligations, and corporate bonds with a small portion of our portfolio in equity securities and cash and cash equivalents. The principal factors that influence net investment income are the size of our investment portfolio, the yield on that portfolio, and investment management expenses. As measured by amortized cost, which excludes fair value fluctuations from changes in interest rates or other factors, the size of our investment portfolio is mainly a function of our invested capital along with premium we receive from our insureds, less payments on policyholder claims and other operating expenses. Net Realized and Unrealized Gains and Losses on Investments Net realized and unrealized gains and losses on investments are a function of the difference between the amount received by us on the sale of a security and the security’s cost-basis, mark-to-market adjustments, credit losses recognized in earnings, and unrealized gains and losses on equity securities and equity method investments. Unrealized gains and losses on fixed maturity securities are recognized as a component of other comprehensive income and do not impact our net income. Income Tax Expense Currently our income tax expense consists mainly of federal income taxes imposed on our operations. Our effective tax rates are dependent upon the components of pretax earnings and the related tax effects. Key Financial and Operating Metrics We discuss certain key financial and operating metrics, described below, which provide useful information about our business and the operational factors underlying our financial performance. 27 Table of Contents Underwriting revenue is a non‑GAAP financial measure defined as total revenue, excluding net investment income and net realized and unrealized gains and losses on investments. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of total revenue calculated in accordance with GAAP to underwriting revenue. Underwriting income is a non‑GAAP financial measure defined as income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, and interest expense. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to underwriting income. Adjusted net income is a non‑GAAP financial measure defined as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We calculate the tax impact only on adjustments which would be included in calculating our income tax expense using the estimated tax rate at which we received a deduction for these adjustments. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of net income calculated in accordance with GAAP to adjusted net income. Annualized return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. Annualized adjusted return on equity is a non‑GAAP financial measure defined as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of return on equity calculated using unadjusted GAAP numbers to adjusted return on equity. Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses, to net earned premiums. Expense ratio, expressed as a percentage, is the ratio of acquisition and other underwriting expenses, net of commission and other income to net earned premiums. Combined ratio is defined as the sum of the loss ratio and the expense ratio. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss. Adjusted combined ratio is a non‑GAAP financial measure defined as the sum of the loss ratio and the expense ratio calculated excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio. Diluted adjusted earnings per share is a non‑GAAP financial measure defined as adjusted net income divided by the weighted-average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of diluted earnings per share calculated in accordance with GAAP to diluted adjusted earnings per share. Catastrophe loss ratio is a non‑GAAP financial measure defined as the ratio of catastrophe losses to net earned premiums. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of loss ratio calculated using unadjusted GAAP numbers to catastrophe loss ratio. Adjusted combined ratio excluding catastrophe losses is a non‑GAAP financial measure defined as adjusted combined ratio excluding the impact of catastrophe losses. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio excluding catastrophe losses. Adjusted underwriting income is a non-GAAP financial measure defined as underwriting income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to adjusted underwriting income. Tangible stockholders’ equity is a non‑GAAP financial measure defined as stockholders’ equity less intangible assets. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of stockholders’ equity calculated in accordance with GAAP to tangible stockholders’ equity. 28 Table of Contents Results of Operations Three months ended June 30, 2026 compared to three months ended June 30, 2025 The following table summarizes our results for the three months ended June 30, 2026 and 2025: Three Months Ended June 30, 2026 2025 Change % Change (in thousands, except per share data) Gross written premiums $ 630,456 $ 496,288 $ 134,168 27.0 % Ceded written premiums (305,279 ) (266,506 ) (38,773 ) 14.5 % Net written premiums 325,177 229,782 95,395 41.5 % Net earned premiums 286,951 179,958 106,993 59.5 % Commission and other income 769 1,677 (908 ) (54.1 )% Total underwriting revenue (1) 287,720 181,635 106,085 58.4 % Losses and loss adjustment expenses 98,988 46,183 52,805 114.3 % Acquisition expenses, net of ceding commissions and fronting fees 71,256 51,637 19,619 38.0 % Other underwriting expenses 69,429 45,525 23,904 52.5 % Underwriting income (1) 48,047 38,290 9,757 25.5 % Interest expense (4,947 ) (86 ) (4,861 ) NM Net investment income 19,950 13,370 6,580 49.2 % Net realized and unrealized gains on investments 6,753 8,306 (1,553 ) (18.7 )% Income before income taxes 69,803 59,880 9,923 16.6 % Income tax expense 17,211 13,352 3,859 28.9 % Net income $ 52,592 $ 46,528 $ 6,064 13.0 % Adjustments: Net realized and unrealized gains on investments (6,753 ) (8,306 ) 1,553 (18.7 )% Expenses associated with transactions 6 754 (748 ) (99.2 )% Stock-based compensation expense 7,438 5,347 2,091 39.1 % Amortization of intangibles 9,180 1,346 7,834 NM Expenses associated with catastrophe bond 2,330 2,661 (331 ) (12.4 )% Tax impact (1,025 ) 202 (1,227 ) NM Adjusted net income (1) $ 63,768 $ 48,532 $ 15,236 31.4 % Key Financial and Operating Metrics Annualized return on equity 21.7 % 22.7 % Annualized adjusted return on equity (1) 26.3 % 23.7 % Loss ratio 34.5 % 25.7 % Expense ratio 48.8 % 53.1 % Combined ratio 83.3 % 78.8 % Adjusted combined ratio (1) 76.7 % 73.1 % Diluted earnings per share $ 1.94 $ 1.68 Diluted adjusted earnings per share (1) $ 2.36 $ 1.76 Catastrophe losses $ (418 ) $ (22 ) Catastrophe loss ratio (1) -0.1 % 0.0 % Adjusted combined ratio excluding catastrophe losses (1) 76.8 % 73.1 % Adjusted underwriting income (1) $ 67,001 $ 48,398 $ 18,603 38.4 % NM - not meaningful (1)Indicates non-GAAP financial measure; see “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of the non-GAAP financial measures to their most directly comparable financial measures prepared in accordance with GAAP. 29 Table of Contents Gross Written Premiums Gross written premiums increased $134.2 million, or 27.0%, to $630.5 million for the three months ended June 30, 2026 compared to $496.3 million for the three months ended June 30, 2025. Premium growth was primarily due to an increased volume of policies in the majority of our lines of business, particularly in our Casualty and Crop lines, which was driven by new business generated with existing partners, strong premium retention rates for existing business, expansion of our distribution footprint, and new partnerships. The following table summarizes our gross written premiums by line of business and shows each line’s percentage of total gross written premiums for each period: Three Months Ended June 30, 2026 2025 ($ in thousands) % of % of % Amount GWP Amount GWP Change Change Product(1) Casualty $ 197,494 31.3 % $ 144,388 29.1 % $ 53,106 36.8 % Inland Marine and Property 169,728 26.9 % 153,040 30.8 % 16,688 10.9 % Earthquake 146,648 23.3 % 147,709 29.8 % (1,061 ) (0.7 )% Crop 77,368 12.3 % 39,464 8.0 % 37,904 96.0 % Surety & Credit 39,218 6.2 % 11,687 2.3 % 27,531 235.6 % Total gross written premiums $ 630,456 100.0 % $ 496,288 100.0 % $ 134,168 27.0 % (1)Beginning in 2026, we updated the categorization of our products to align with management’s current strategy and view of the business. Prior year amounts have been reclassified for comparability purposes. The recategorization is for presentation purposes only and does not impact overall gross written premiums. The following table summarizes our gross written premiums by insurance subsidiary: Three Months Ended June 30, 2026 2025 ($ in thousands) % of % of % Amount GWP Amount GWP Change Change Subsidiary PESIC $ 304,276 48.3 % $ 237,943 47.9 % $ 66,333 27.9 % PSIC 278,176 44.1 % 232,983 46.9 % 45,193 19.4 % Laulima 23,407 3.7 % 20,134 4.1 % 3,273 16.3 % PCSC 21,558 3.4 % — — % 21,558 — % FIA 3,039 0.5 % 5,228 1.1 % (2,189 ) (41.9 )% Total gross written premiums $ 630,456 100.0 % $ 496,288 100.0 % $ 134,168 27.0 % Ceded Written Premiums Ceded written premiums increased $38.8 million, or 14.5%, to $305.3 million for the three months ended June 30, 2026 from $266.5 million for the three months ended June 30, 2025. The increase in ceded written premium was primarily driven by growth in written premiums subject to quota share arrangements, such as those in Casualty and Crop lines. Although our volume of ceded written premiums increased, ceded written premiums as a percentage of gross written premiums decreased to 48.4% for the three months ended June 30, 2026 from 53.7% for the three months ended June 30, 2025. This percentage decrease was driven by changes in our composition of business whereby premiums written in the current period were subject to lower quota share or XOL cession percentages compared to premiums written in the prior period. Net Written Premiums Net written premiums increased $95.4 million, or 41.5%, to $325.2 million for the three months ended June 30, 2026 from $229.8 million for the three months ended June 30, 2025. The increase was primarily due to an increase in gross written premiums, primarily in our Casualty and Crop lines, partially offset by increased ceded written premiums. 30 Table of Contents Net Earned Premiums Net earned premiums increased $107.0 million, or 59.5%, to $287.0 million for the three months ended June 30, 2026 from $180.0 million for the three months ended June 30, 2025 due primarily to the earning of increased gross written premiums partially offset by the earning of ceded written premiums under reinsurance agreements. The following table shows the amount of premiums we earned on a gross and net basis and net earned premiums as a percentage of gross earned premiums in each period presented: Three Months Ended June 30, 2026 2025 Change % Change ($ in thousands) Gross earned premiums $ 552,859 $ 408,764 $ 144,095 35.3 % Ceded earned premiums (265,908 ) (228,806 ) (37,102 ) 16.2 % Net earned premiums $ 286,951 $ 179,958 $ 106,993 59.5 % Net earned premium ratio 51.9 % 44.0 % Our net earned premium ratio increased as premiums earned in the current period were subject to lower quota share or XOL cession percentages compared to premiums earned in the prior period. This was primarily driven by our decision to retain a higher percentage of premiums on our Crop business in 2026 and lower XOL pricing. Commission and Other Income Commission and other income decreased $0.9 million to $0.8 million for the three months ended June 30, 2026 from $1.7 million for the three months ended June 30, 2025. The balance decreased due to the non-recurrence of a reimbursement arrangement that benefited us in the prior quarter. Losses and Loss Adjustment Expenses Losses and loss adjustment expenses increased $52.8 million, or 114.3%, to $99.0 million for the three months ended June 30, 2026 from $46.2 million for the three months ended June 30, 2025. Losses and loss adjustment expenses consisted of the following elements during the respective periods: Three Months Ended June 30, 2026 2025 Change % Change ($ in thousands) Catastrophe losses $ (418 ) $ (22 ) $ (396 ) NM Non-catastrophe losses 99,406 46,205 53,201 115.1 % Total losses and loss adjustment expenses $ 98,988 $ 46,183 $ 52,805 114.3 % Catastrophe loss ratio -0.1 % — % Non-catastrophe loss ratio 34.6 % 25.7 % Total loss ratio 34.5 % 25.7 % Catastrophe loss activity for the quarter ended June 30, 2026 was primarily related to favorable development on prior period catastrophe events. Catastrophe loss activity for the quarter ended June 30, 2025 was minimal and related to favorable development on prior period catastrophe events. Non-catastrophe losses increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 due mainly to higher attritional losses driven by premium growth on lines of business subject to attritional losses such as Casualty, Crop, and Inland Marine and Property and due to our decision to retain a higher percentage of premiums and losses on our Crop business in 2026. 31 Table of Contents Acquisition Expenses Acquisition expenses increased $19.6 million, or 38.0%, to $71.3 million for the three months ended June 30, 2026 from $51.6 million for the three months ended June 30, 2025. The increase was primarily due to higher commissions and premium-related taxes resulting from higher gross earned premiums. Acquisition expenses as a percentage of gross earned premiums were 12.9% for the three months ended June 30, 2026 compared to 12.6% for the three months ended June 30, 2025. Acquisition expenses as a percentage of gross earned premiums increased due to higher commissions as a percentage of gross earned premiums due to changes in the composition of our business. Other Underwriting Expenses Other underwriting expenses increased $23.9 million, or 52.5%, to $69.4 million for the three months ended June 30, 2026 from $45.5 million for the three months ended June 30, 2025. The increase was primarily due to us incurring higher payroll, technology, and stock-based compensation expenses associated with general growth. Other underwriting expenses as a percentage of gross earned premiums were 12.6% for the three months ended June 30, 2026 compared to 11.1% for the three months ended June 30, 2025. Excluding the impact of expenses relating to transactions, stock-based compensation, and amortization of intangibles, other underwriting expenses as a percentage of gross earned premiums were 9.1% for the three months ended June 30, 2026 compared to 8.7% for the three months ended June 30, 2025. Other underwriting expenses as a percentage of gross earned premiums fluctuates period over period based on timing of certain expenses relative to premium growth. Net Investment Income and Net Realized and Unrealized Gains (Losses) on Investments Net investment income increased $6.6 million, or 49.2%, to $20.0 million for the three months ended June 30, 2026 from $13.4 million for the three months ended June 30, 2025. The increase was primarily due to a higher average balance of investments during the three months ended June 30, 2026 due to the investing of cash generated from operations and higher yields on invested assets versus the prior year. We incurred $6.8 million of net realized and unrealized losses on investments for the three months ended June 30, 2026 compared to $8.3 million of net realized and unrealized losses for the three months ended June 30, 2025. In both periods, the balance was primarily driven by unrealized losses on our equity securities. Unrealized gains and losses on fixed maturity securities are recognized as a component of other comprehensive income and do not impact our net income. The following table summarizes the components of our investment income for each period presented: Three Months Ended June 30, 2026 2025 Change % Change ($ in thousands) Interest income $ 19,090 $ 13,344 $ 5,746 43.1 % Dividend income 1,370 242 1,128 NM Investment management fees and expenses (510 ) (216 ) (294 ) 136.1 % Net investment income 19,950 13,370 6,580 49.2 % Net realized and unrealized gains on investments 6,753 8,306 (1,553 ) (18.7 )% Total $ 26,703 $ 21,676 $ 5,027 23.2 % NM - not meaningful Income Tax Expense Income tax expense increased $3.9 million to $17.2 million for the three months ended June 30, 2026 from $13.4 million for the three months ended June 30, 2025 due to higher pre-tax income for the period ended June 30, 2026. For the three months ended June 30, 2026 and 2025 our income tax rates of 24.7% and 22.3%, respectively, were higher than the statutory rate of 21% due primarily to non-deductible executive compensation expense. 32 Table of Contents Results of Operations Six months ended June 30, 2026 compared to six months ended June 30, 2025 The following table summarizes our results for the six months ended June 30, 2026 and 2025: Six Months Ended June 30, 2026 2025 Change % Change (in thousands, except per share data) Gross written premiums $ 1,260,284 $ 938,452 $ 321,832 34.3 % Ceded written premiums (597,192 ) (497,251 ) (99,941 ) 20.1 % Net written premiums 663,092 441,201 221,891 50.3 % Net earned premiums 548,389 344,029 204,360 59.4 % Commission and other income 2,178 2,507 (329 ) (13.1 )% Total underwriting revenue (1) 550,567 346,536 204,031 58.9 % Losses and loss adjustment expenses 186,085 84,927 101,158 119.1 % Acquisition expenses, net of ceding commissions and fronting fees 141,571 97,996 43,575 44.5 % Other underwriting expenses 134,336 81,258 53,078 65.3 % Underwriting income (1) 88,575 82,355 6,220 7.6 % Interest expense (8,105 ) (171 ) (7,934 ) NM Net investment income 37,934 25,441 12,493 49.1 % Net realized and unrealized gains on investments 4,860 5,968 (1,108 ) (18.6 )% Income before income taxes 123,264 113,593 9,671 8.5 % Income tax expense 27,725 24,143 3,582 14.8 % Net income $ 95,539 $ 89,450 $ 6,089 6.8 % Adjustments: Net realized and unrealized gains on investments (4,860 ) (5,968 ) 1,108 (18.6 )% Expenses associated with transactions 7,412 2,841 4,571 160.9 % Stock-based compensation expense 16,224 10,092 6,132 60.8 % Amortization of intangibles 15,235 2,054 13,181 NM Expenses associated with catastrophe bond 2,330 2,661 (331 ) (12.4 )% Tax impact (4,976 ) (1,293 ) (3,683 ) 284.8 % Adjusted net income (1) $ 126,904 $ 99,837 $ 27,067 27.1 % Key Financial and Operating Metrics Annualized return on equity 19.9 % 22.7 % Annualized adjusted return on equity (1) 26.4 % 25.3 % Loss ratio 33.9 % 24.7 % Expense ratio 49.9 % 51.4 % Combined ratio 83.8 % 76.1 % Adjusted combined ratio (1) 76.3 % 70.9 % Diluted earnings per share $ 3.51 $ 3.24 Diluted adjusted earnings per share (1) $ 4.66 $ 3.62 Catastrophe losses $ (149 ) $ (565 ) Catastrophe loss ratio (1) 0.0 % -0.2 % Adjusted combined ratio excluding catastrophe losses (1) 76.4 % 71.1 % Adjusted underwriting income (1) $ 129,776 $ 100,003 $ 29,773 29.8 % NM - not meaningful (1)Indicates non-GAAP financial measure; see “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of the non-GAAP financial measures to their most directly comparable financial measures prepared in accordance with GAAP. Gross Written Premiums Gross written premiums increased $321.8 million, or 34.3%, to $1.3 billion for the six months ended June 30, 2026 compared to $938.5 million for the six months ended June 30, 2025. Premium growth was primarily due to an increased volume of policies in the majority of our lines of business, particularly in our Casualty and Crop lines, which was driven by new business generated with existing partners, strong premium retention rates for existing business, expansion of our distribution footprint, and new partnerships. 33 Table of Contents The following table summarizes our gross written premiums by line of business and shows each line’s percentage of total gross written premiums for each period: Six Months Ended June 30, 2026 2025 ($ in thousands) % of % of % Amount GWP Amount GWP Change Change Product(1) Casualty $ 403,793 32.0 % $ 277,490 29.6 % $ 126,303 45.5 % Inland Marine and Property 336,291 26.7 % 266,366 28.4 % 69,925 26.3 % Earthquake 283,964 22.5 % 281,405 30.0 % 2,559 0.9 % Crop 165,142 13.1 % 87,683 9.3 % 77,459 88.3 % Surety & Credit 71,094 5.7 % 25,508 2.7 % 45,586 178.7 % Total gross written premiums $ 1,260,284 100.0 % $ 938,452 100.0 % $ 321,832 34.3 % (1)Beginning in 2026, we updated the categorization of our products to align with management’s current strategy and view of the business. Prior year amounts have been reclassified for comparability purposes. The recategorization is for presentation purposes only and does not impact overall gross written premiums. The following table summarizes our gross written premiums by insurance subsidiary: Six Months Ended June 30, 2026 2025 ($ in thousands) % of % of % Amount GWP Amount GWP Change Change Subsidiary PSIC $ 601,929 47.8 % $ 463,900 49.4 % $ 138,029 29.8 % PESIC 574,346 45.6 % 428,730 45.7 % 145,616 34.0 % Laulima 42,078 3.3 % 36,171 3.9 % 5,907 16.3 % PCSC 33,979 2.7 % — — % 33,979 — % FIA 7,952 0.6 % 9,651 1.0 % (1,699 ) (17.6 )% Total gross written premiums $ 1,260,284 100.0 % $ 938,452 100.0 % $ 321,832 34.3 % Ceded Written Premiums Ceded written premiums increased $99.9 million, or 20.1%, to $597.2 million for the six months ended June 30, 2026 from $497.3 million for the six months ended June 30, 2025. The increase in ceded written premium was primarily driven by growth in written premiums subject to quota share arrangements, such as those in Casualty and Crop lines. Although our volume of ceded written premiums increased, ceded written premiums as a percentage of gross written premiums decreased to 47.4% for the six months ended June 30, 2026 from 53.0% for the six months ended June 30, 2025. This percentage decrease was driven by changes in our composition of business whereby premiums written in the current period were subject to lower quota share or XOL cession percentages compared to premiums written in the prior period. Net Written Premiums Net written premiums increased $221.9 million, or 50.3%, to $663.1 million for the six months ended June 30, 2026 from $441.2 million for the six months ended June 30, 2025. The increase was primarily due to an increase in gross written premiums, primarily in our Casualty and Crop lines, partially offset by increased ceded written premiums. Net Earned Premiums Net earned premiums increased $204.4 million, or 59.4%, to $548.4 million for the six months ended June 30, 2026 from $344.0 million for the six months ended June 30, 2025 due primarily to the earning of increased gross written premiums partially 34 Table of Contents offset by the earning of ceded written premiums under reinsurance agreements. The following table shows the amount of premiums we earned on a gross and net basis and net earned premiums as a percentage of gross earned premiums in each period presented: Six Months Ended June 30, 2026 2025 Change % Change ($ in thousands) Gross earned premiums $ 1,056,731 $ 784,540 $ 272,191 34.7 % Ceded earned premiums (508,342 ) (440,511 ) (67,831 ) 15.4 % Net earned premiums $ 548,389 $ 344,029 $ 204,360 59.4 % Net earned premium ratio 51.9 % 43.9 % Our net earned premium ratio increased as premiums earned in the current period were subject to lower quota share or XOL cession percentages compared to premiums earned in the prior period. This was primarily driven by our decision to retain a higher percentage of premiums on our Crop business in 2026 and lower XOL pricing. Commission and Other Income Commission and other income decreased $0.3 million to $2.2 million for the six months ended June 30, 2026 from $2.5 million for the six months ended June 30, 2025. The balance decreased due to the non-recurrence of a reimbursement arrangement that benefited us in the prior quarter. Losses and Loss Adjustment Expenses Losses and loss adjustment expenses increased $101.2 million, or 119.1%, to $186.1 million for the six months ended June 30, 2026 from $84.9 million for the six months ended June 30, 2025. Losses and loss adjustment expenses consisted of the following elements during the respective periods: Six Months Ended June 30, 2026 2025 Change % Change ($ in thousands) Catastrophe losses $ (149 ) $ (565 ) $ 416 (73.6 )% Non-catastrophe losses 186,234 85,492 100,742 117.8 % Total losses and loss adjustment expenses $ 186,085 $ 84,927 $ 101,158 119.1 % Catastrophe loss ratio 0.0 % -0.2 % Non-catastrophe loss ratio 33.9 % 24.9 % Total loss ratio 33.9 % 24.7 % Catastrophe loss activity for the six months ended June 30, 2026 was primarily related to Hawaii flood activity offset by favorable development on prior period catastrophe events. Catastrophe loss activity for the six months ended June 30, 2025 was related to favorable development on prior period catastrophe events. Non-catastrophe losses increased for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 due mainly to higher attritional losses driven by premium growth on lines of business subject to attritional losses such as Casualty, Crop, and Inland Marine and Property and due to our decision to retain a higher percentage of premiums and losses on our Crop business in 2026. Acquisition Expenses Acquisition expenses increased $43.6 million, or 44.5%, to $141.6 million for the six months ended June 30, 2026 from $98.0 million for the six months ended June 30, 2025. The increase was primarily due to higher commissions and premium-related taxes resulting from higher gross earned premiums. Acquisition expenses as a percentage of gross earned premiums were 13.4% for the six months ended June 30, 2026 compared to 12.5% for the six months ended June 30, 2025. Acquisition expenses as a percentage 35 Table of Contents of gross earned premiums increased due to higher commissions as a percentage of gross earned premiums due to changes in the composition of our business. Other Underwriting Expenses Other underwriting expenses increased $53.1 million, or 65.3%, to $134.3 million for the six months ended June 30, 2026 from $81.3 million for the six months ended June 30, 2025. The increase was primarily due to us incurring higher payroll, technology, and stock-based compensation expenses associated with general growth. Other underwriting expenses as a percentage of gross earned premiums were 12.7% for the six months ended June 30, 2026 compared to 10.4% for the six months ended June 30, 2025. Excluding the impact of expenses relating to transactions, stock-based compensation, and amortization of intangibles, other underwriting expenses as a percentage of gross earned premiums were 8.8% for the six months ended June 30, 2026 compared to 8.1% for the six months ended June 30, 2025. Other underwriting expenses as a percentage of gross earned premiums fluctuates period over period based on timing of certain expenses relative to premium growth. Net Investment Income and Net Realized and Unrealized Gains (Losses) on Investments Net investment income increased $12.5 million, or 49.1%, to $37.9 million for the six months ended June 30, 2026 from $25.4 million for the six months ended June 30, 2025. The increase was primarily due to a higher average balance of investments during the six months ended June 30, 2026 due to the investing of cash generated from operations and higher yields on invested assets versus the prior year. We incurred $4.9 million of net realized and unrealized losses on investments for the six months ended June 30, 2026 compared to $6.0 million of net realized and unrealized losses for the six months ended June 30, 2025. In both periods, the balance was primarily driven by unrealized losses on our equity securities. Unrealized gains and losses on fixed maturity securities are recognized as a component of other comprehensive income and do not impact our net income. The following table summarizes the components of our investment income for each period presented: Six Months Ended June 30, 2026 2025 Change % Change ($ in thousands) Interest income $ 36,398 $ 25,308 $ 11,090 43.8 % Dividend income 2,340 559 1,781 NM Investment management fees and expenses (804 ) (426 ) (378 ) 88.7 % Net investment income 37,934 25,441 12,493 49.1 % Net realized and unrealized gains on investments 4,860 5,968 (1,108 ) (18.6 )% Total $ 42,794 $ 31,409 $ 11,385 36.2 % NM- not meaningful Income Tax Expense Income tax expense increased $3.6 million to $27.7 million for the six months ended June 30, 2026 from $24.1 million for the six months ended June 30, 2025 due to higher pre-tax income for the period ended June 30, 2026. For the six months ended June 30, 2026 and 2025, our income tax rates of 22.5% and 21.3%, respectively, were higher than the statutory rate of 21% due primarily to non-deductible executive compensation expense. 36 Table of Contents Reconciliation of Non‑GAAP Financial Measures Underwriting Revenue We define underwriting revenue as total revenue excluding net investment income and net realized and unrealized gains and losses on investments. Underwriting revenue represents revenue generated by our underwriting operations and allows us to evaluate our underwriting performance without regard to investment results. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Underwriting revenue should not be viewed as a substitute for total revenue calculated in accordance with GAAP, and other companies may define underwriting revenue differently. Total revenue calculated in accordance with GAAP reconciles to underwriting revenue as follows: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 ($ in thousands) ($ in thousands) Total revenue $ 314,423 $ 203,311 $ 593,361 $ 377,945 Net investment income (19,950 ) (13,370 ) (37,934 ) (25,441 ) Net realized and unrealized gains on investments (6,753 ) (8,306 ) (4,860 ) (5,968 ) Underwriting revenue $ 287,720 $ 181,635 $ 550,567 $ 346,536 Underwriting Income and Adjusted Underwriting Income We define underwriting income as income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, and interest expense. Underwriting income represents the pre‑tax profitability of our underwriting operations and allows us to evaluate our underwriting performance without regard to investment results. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Underwriting income should not be viewed as a substitute for pre‑tax income calculated in accordance with GAAP, and other companies may define underwriting income differently. We define adjusted underwriting income as underwriting income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. We use this metric as we believe it gives our management and other users of our financial information useful insight into our underlying business performance. Adjusted underwriting income should not be viewed as a substitute for pre‑tax income calculated in accordance with GAAP. Other companies may define adjusted underwriting income differently. Income before income taxes calculated in accordance with GAAP reconciles to underwriting income and adjusted underwriting income as follows: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 ($ in thousands) ($ in thousands) Income before income taxes $ 69,803 $ 59,880 $ 123,264 $ 113,593 Net investment income (19,950 ) (13,370 ) (37,934 ) (25,441 ) Net realized and unrealized gains on investments (6,753 ) (8,306 ) (4,860 ) (5,968 ) Interest expense 4,947 86 8,105 171 Underwriting income $ 48,047 $ 38,290 $ 88,575 $ 82,355 Expenses associated with transactions 6 754 7,412 2,841 Stock-based compensation expense 7,438 5,347 16,224 10,092 Amortization of intangibles 9,180 1,346 15,235 2,054 Expenses associated with catastrophe bond 2,330 2,661 2,330 2,661 Adjusted underwriting income $ 67,001 $ 48,398 $ 129,776 $ 100,003 37 Table of Contents Adjusted Net Income We define adjusted net income as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We calculate the tax impact only on adjustments which would be included in calculating our income tax expense using the estimated tax rate at which we received a deduction for these adjustments. We use adjusted net income as an internal performance measure in the management of our operations because we believe it gives our management and financial statement users useful insight into our results of operations and our underlying business performance. Adjusted net income does not reflect the overall profitability of our business and should not be viewed as a substitute for net income calculated in accordance with GAAP. Other companies may define adjusted net income differently. Net income calculated in accordance with GAAP reconciles to adjusted net income as follows: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 ($ in thousands) ($ in thousands) Net income $ 52,592 $ 46,528 $ 95,539 $ 89,450 Adjustments: Net realized and unrealized gains on investments (6,753 ) (8,306 ) (4,860 ) (5,968 ) Expenses associated with transactions 6 754 7,412 2,841 Stock-based compensation expense 7,438 5,347 16,224 10,092 Amortization of intangibles 9,180 1,346 15,235 2,054 Expenses associated with catastrophe bond 2,330 2,661 2,330 2,661 Tax impact (1,025 ) 202 (4,976 ) (1,293 ) Adjusted net income $ 63,768 $ 48,532 $ 126,904 $ 99,837 Annualized Adjusted Return on Equity We define annualized adjusted return on equity as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. We use annualized adjusted return on equity as an internal performance measure in the management of our operations because we believe it gives our management and financial statement users useful insight into our results of operations and our underlying business performance. Annualized adjusted return on equity should not be viewed as a substitute for return on equity calculated using unadjusted GAAP numbers, and other companies may define adjusted return on equity differently. Annualized adjusted return on equity is calculated as follows: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 ($ in thousands) ($ in thousands) Annualized adjusted net income $ 255,072 $ 194,128 $ 253,808 $ 199,674 Average stockholders’ equity $ 969,991 $ 818,823 $ 961,805 $ 788,114 Annualized adjusted return on equity 26.3 % 23.7 % 26.4 % 25.3 % Adjusted Combined Ratio We define adjusted combined ratio as the sum of the loss ratio and the expense ratio calculated excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. We use adjusted combined ratio as an internal performance measure in the management of our operations because we believe it gives our management and financial statement users useful insight into our results of operations and our underlying business performance. Adjusted combined ratio should not be viewed as a substitute for combined ratio calculated using unadjusted GAAP numbers, and other companies may define adjusted combined ratio differently. 38 Table of Contents Adjusted combined ratio is calculated as follows: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 ($ in thousands) ($ in thousands) Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income $ 238,904 $ 141,668 $ 459,814 $ 261,674 Denominator: Net earned premiums $ 286,951 $ 179,958 $ 548,389 $ 344,029 Combined ratio 83.3 % 78.8 % 83.8 % 76.1 % Adjustments to numerator: Expenses associated with transactions $ (6 ) $ (754 ) $ (7,412 ) $ (2,841 ) Stock-based compensation expense (7,438 ) (5,347 ) (16,224 ) (10,092 ) Amortization of intangibles (9,180 ) (1,346 ) (15,235 ) (2,054 ) Expenses associated with catastrophe bond (2,330 ) (2,661 ) (2,330 ) (2,661 ) Adjusted combined ratio 76.7 % 73.1 % 76.3 % 70.9 % Diluted Adjusted Earnings Per Share We define diluted adjusted earnings per share as adjusted net income divided by the weighted-average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. We use diluted adjusted earnings per share as an internal performance measure in the management of our operations because we believe it gives our management and financial statement users useful insight into our results of operations and our underlying business performance. Diluted adjusted earnings per share should not be viewed as a substitute for diluted earnings per share calculated in accordance with GAAP, and other companies may define diluted adjusted earnings per share differently. Diluted adjusted earnings per share is calculated as follows: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (in thousands, except per share data) (in thousands, except per share data) Adjusted net income $ 63,768 $ 48,532 $ 126,904 $ 99,837 Weighted-average common shares outstanding, diluted 27,056,554 27,628,733 27,208,113 27,568,913 Diluted adjusted earnings per share $ 2.36 $ 1.76 $ 4.66 $ 3.62 Catastrophe Loss Ratio Catastrophe loss ratio is defined as the ratio of catastrophe losses to net earned premiums. Although we are inherently subject to catastrophe losses, the frequency and severity of catastrophe losses is unpredictable and their impact on our operating results may vary significantly between periods and obscure other trends in our business. Therefore, we are providing this metric because we believe it gives our management and other financial statement users useful insight into our results of operations and trends in our financial performance without the volatility caused by catastrophe losses. Catastrophe loss ratio should not be viewed as a substitute for loss ratio calculated using unadjusted GAAP numbers, and other companies may define catastrophe loss ratio differently. 39 Table of Contents Loss ratio and catastrophe loss ratio are calculated as follows: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 ($ in thousands) ($ in thousands) Numerator: Losses and loss adjustment expenses $ 98,988 $ 46,183 $ 186,085 $ 84,927 Denominator: Net earned premiums $ 286,951 $ 179,958 $ 548,389 $ 344,029 Loss ratio 34.5 % 25.7 % 33.9 % 24.7 % Numerator: Catastrophe losses $ (418 ) $ (22 ) $ (149 ) $ (565 ) Denominator: Net earned premiums $ 286,951 $ 179,958 $ 548,389 $ 344,029 Catastrophe loss ratio -0.1 % 0.0 % 0.0 % -0.2 % Adjusted Combined Ratio Excluding Catastrophe Losses Adjusted combined ratio excluding catastrophe losses is defined as adjusted combined ratio excluding the impact of catastrophe losses. Although we are inherently subject to catastrophe losses, the frequency and severity of catastrophe losses is unpredictable and their impact on our operating results may vary significantly between periods and obscure other trends in our business. Therefore, we are providing this metric because we believe it gives our management and other financial statement users useful insight into our results of operations and trends in our financial performance without the volatility caused by catastrophe losses. Adjusted combined ratio excluding catastrophe losses should not be viewed as a substitute for combined ratio calculated using unadjusted GAAP numbers, and other companies may define adjusted combined ratio excluding catastrophe losses differently. Adjusted combined ratio excluding catastrophe losses is calculated as follows: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 ($ in thousands) ($ in thousands) Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses, net of commission and other income $ 238,904 $ 141,668 $ 459,814 $ 261,674 Denominator: Net earned premiums $ 286,951 $ 179,958 $ 548,389 $ 344,029 Combined ratio 83.3 % 78.8 % 83.8 % 76.1 % Adjustments to numerator: Expenses associated with transactions $ (6 ) $ (754 ) $ (7,412 ) $ (2,841 ) Stock-based compensation expense (7,438 ) (5,347 ) (16,224 ) (10,092 ) Amortization of intangibles (9,180 ) (1,346 ) (15,235 ) (2,054 ) Expenses associated with catastrophe bond (2,330 ) (2,661 ) (2,330 ) (2,661 ) Catastrophe losses 418 22 149 565 Adjusted combined ratio excluding catastrophe losses 76.8 % 73.1 % 76.4 % 71.1 % Tangible Stockholders’ Equity We define tangible stockholders’ equity as stockholders’ equity less intangible assets. Our definition of tangible stockholders’ equity may not be comparable to that of other companies, and it should not be viewed as a substitute for stockholders’ equity calculated in accordance with GAAP. We use tangible stockholders’ equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure. 40 Table of Contents Stockholders’ equity calculated in accordance with GAAP reconciles to tangible stockholders’ equity as follows: June 30, December 31, 2026 2025 ($ in thousands) Stockholders’ equity $ 980,942 $ 942,667 Goodwill and intangible assets (236,756 ) (61,054 ) Tangible stockholders’ equity $ 744,186 $ 881,613 Liquidity and Capital Resources Sources and Uses of Funds We operate as a holding company with no business operations of our own. Consequently, our ability to pay dividends to stockholders and pay taxes and administrative expenses is largely dependent on dividends or other distributions from our subsidiaries and affiliates, whose ability to pay us is highly regulated. Our U.S. insurance company subsidiaries, PSIC, PESIC, FIA, and PCSC are restricted by the statutes as to the amount of dividends that they may pay without prior approval by state insurance commissioners. Under California and Oregon statutes which govern PSIC, dividends paid in a consecutive twelve month period cannot exceed the greater of (i) 10% of an insurance company’s statutory policyholders’ surplus as of December 31 of the preceding year, or (ii) 100% of its statutory net income for the preceding calendar year. Any dividends or distributions in excess of these amounts would require regulatory approval. In addition, under Oregon statute PSIC may only declare a dividend from earned surplus, which does not include contributed capital. Surplus arising from unrealized capital gains or revaluation of assets is not considered part of earned surplus. Based on the above restrictions, PSIC may pay a dividend or distribution of no greater than $176.0 million in 2026 without approval by the California and Oregon Insurance Commissioners. Under Arizona statute which governs PESIC, dividends paid in a consecutive twelve month period cannot exceed the lesser of (i) 10% of an insurance company’s statutory policyholders’ surplus as of December 31 of the preceding year, or (ii) 100% of its statutory net income for the preceding calendar year. Based on the above restrictions, PESIC may pay a dividend or distribution of no greater than $7.4 million in 2026 without approval of the Arizona Insurance Commissioner. We are subject to New Jersey law, such that all dividend payments require 30-day prior approval of the New Jersey Commissioner of Banking and Insurance (the “Commissioner”). The maximum dividend, which may be paid in any twelve-month period, is limited to the greater of 10% of statutory surplus as of December 31 of the preceding year or the net gain from operations of the preceding calendar year. Cash dividends may only be paid out of surplus derived from realized net profits. Based on these limitations, FIA has capacity to pay a dividend of $1.8 million in 2026, conditional upon the Commissioner’s approval. Under Louisiana law which governs PCSC, the maximum amount of stockholder dividends that the Company may pay without prior approval of the Louisiana Insurance Commissioner is limited to the lesser of (i) statutory net income for the preceding three calendar years excluding realized capital gains and dividend paid during the preceding two calendar years, or (II) 10% of statutory surplus. Based on the above restrictions, PCSC may pay a dividend or distribution of no greater than $13.2 million in 2026 without approval of the Louisiana Insurance Commissioner. State insurance regulators have broad powers to prevent the reduction of statutory surplus to inadequate levels, and there is no assurance that dividends up to the maximum amounts calculated under any applicable formula would be permitted. In addition, state insurance regulators may adopt statutory provisions and dividend limitations more restrictive than those currently in effect in the future. Bermuda regulations limit the amount of dividends and return of capital paid by a regulated entity. A Class 3A insurer is prohibited from declaring or paying a dividend if it is in breach of its minimum solvency margin, its enhanced capital requirement, or its minimum liquidity ratio, or if the declaration or payment of such dividend would cause such a breach. If a Class 3A insurer has failed to meet its minimum solvency margin on the last day of any financial year, it will also be prohibited, without the approval of the Bermuda Monetary Authority (“BMA”), from declaring or paying any dividends during the next financial year. Furthermore, the Insurance Act limits the ability of PSRE to pay dividends or make capital distributions by stipulating certain margin and solvency requirements and by requiring approval from the BMA prior to a reduction of 15% or more of a Class 3A insurer’s total statutory capital as reported on its prior year statutory balance sheet. Moreover, an insurer must submit an affidavit to the BMA, sworn by at least two directors and the principal representative in Bermuda of the Class 3A insurer, at least seven days prior to payment of any dividend which would exceed 25% of that insurer’s total statutory capital and surplus as reported on its prior year statutory balance 41 Table of Contents sheet. The affidavit must state that in the opinion of those swearing the declaration of such dividend, such dividend has not caused the insurer to fail to meet its relevant margins. Further, under the Companies Act (as defined below), PSRE may only declare or pay a dividend, or make a distribution out of contributed surplus, if it has no reasonable grounds for believing that: (1) it is, or would after the payment be, unable to pay its liabilities as they become due or (2) the realizable value of its assets would be less than its liabilities. Pursuant to Bermuda regulations, the maximum amount of dividends and return of capital available to be paid by a reinsurer is determined pursuant to a formula. Under this formula, the maximum amount of dividends and return of capital available from PSRE during 2026 is calculated to be approximately $4.5 million. However, this dividend amount is subject to annual enhanced solvency requirement calculations. One of our insurance company subsidiaries, PSIC, is a member of the Federal Home Loan Bank of San Francisco (FHLB). Membership allows PSIC access to collateralized advances, which may be used to support and enhance liquidity management. The amount of advances that may be taken is dependent on statutory admitted assets. Cash Flows Our primary sources of cash flow are written premiums, investment income, reinsurance recoveries, sales and redemptions of investments, and proceeds from borrowings on our lines of credit. We use our cash flows primarily to pay reinsurance premiums, operating expenses, losses and loss adjustment expenses, and income taxes. Our cash flows from operations may differ substantially from our net income due to non‑cash charges or due to changes in balance sheet accounts. The timing of our cash flows from operating activities can also vary among periods due to the timing by which payments are made or received. Some of our payments and receipts, including loss settlements and subsequent reinsurance receipts, can be significant. Therefore, their timing can influence cash flows from operating activities in any given period. The potential for a large claim under an insurance or reinsurance contract means that our insurance subsidiaries may need to make substantial payments within relatively short periods of time, which would have a negative impact on our operating cash flows. Management believes that our current liquidity and cash receipts from written premiums, investment income, proceeds from investment sales and redemptions, and reinsurance recoveries, if necessary, are sufficient to cover cash outflows for each of our insurance subsidiaries in the foreseeable future. The following table summarizes our cash flows for the six months ended June 30, 2026 and 2025: Six Months Ended June 30, 2026 2025 ($ in thousands) Cash provided by (used in): Operating activities $ 214,197 $ 208,061 Investing activities (493,109 ) (212,698 ) Financing activities 234,724 5,413 Change in cash, cash equivalents, and restricted cash $ (44,188 ) $ 776 Our cash flow from operating activities was positive during the six months ended June 30, 2026 and 2025. Variations in operating cash flow between periods are primarily driven by variations in our gross and ceded written premiums and the volume and timing of premium receipts, claim payments, reinsurance payments, and reinsurance recoveries on paid losses. In addition, fluctuations in losses and loss adjustment expenses and other insurance operating expenses impact operating cash flow. Cash used in investing activities for the six months ended June 30, 2026 and 2025 related primarily to purchases of fixed maturity securities in excess of sales and maturities and acquisitions occurring in each period. Cash provided by financing activities for the six months ended June 30, 2026 was related to the issuance of a term loan for $300.0 million, the receipt of $2.0 million in proceeds from policy holder contributions of surplus, the receipt of $0.7 million in proceeds from our employee stock purchase plan, and the receipt of $0.5 million in proceeds from stock option exercises, partially offset by repurchases of $64.1 million of our common stock, payment of debt issuance costs of $2.6 million, and principal repayment on our term loan of $1.9 million. Cash provided by financing activities for the six months ended June 30, 2025 was related to the receipt of $3.3 million in proceeds from stock option exercises, the receipt of $1.8 million in proceeds from policy holder 42 Table of Contents contributions of surplus, and the receipt of $0.5 million in proceeds from our employee stock purchase plan, partially offset by $0.1 million in offering costs from the August 2024 secondary offering. We do not have any current plans for material capital expenditures other than current operating requirements. We believe that we will generate sufficient cash flows from operations to satisfy our liquidity requirements for at least the next 12 months and beyond. The key factor that will affect our future operating cash flows is the frequency and severity of catastrophe losses. To the extent our future operating cash flows are insufficient to cover our net losses from catastrophic events, we had $1.7 billion in cash and investment securities available at June 30, 2026. We also have the ability to access additional capital through pursuing third‑party borrowings, sales of our equity or debt securities or entrance into a reinsurance arrangement. Share Repurchases On July 31, 2025, our Board of Directors approved a share repurchase program, (the “2025 Repurchase Program”), authorizing the repurchase of up to $150 million of our outstanding common stock through July 31, 2027. As such, we have used and may use our cash in the future to purchase outstanding shares of our common stock. Under the 2025 Repurchase Program, shares may be repurchased from time to time in the open market or negotiated transactions at prevailing market rates, or by other means in accordance with federal securities laws. We repurchased 226,130 shares for $27.3 million under the 2025 Program during the six months ended June 30, 2026 and no amount remains available for future repurchases. On April 30, 2026, our Board of Directors approved a share repurchase program, (the “2026 Repurchase Program”), effective May 6, 2026, which replaces the 2025 Repurchase Program, and authorizes the repurchase of up to $200 million of our outstanding common stock through May 6, 2028. Under the 2026 Repurchase Program, shares may be repurchased from time to time in the open market or negotiated transactions at prevailing market rates, or by other means in accordance with federal securities laws. We repurchased 332,844 shares for $36.8 million under this program during the six months ended June 30, 2026 and $163.2 million remains available for future repurchases. Dividends On July 30, 2026 our Board of Directors declared a cash dividend of $0.45 per share on our common stock, representing the first cash dividend declared on our common stock. The dividend is payable on September 2, 2026 to stockholders of record as of August 19, 2026. We expect the aggregate cash payment for this dividend to be approximately $12.2 million, although the actual aggregate amount paid will depend on the number of shares of our common stock and unvested PSUs and RSUs outstanding as of the record date. We intend to fund this dividend payment from cash on hand and cash generated from operations. The declaration and payment of any future dividends will be at the discretion of our Board of Directors and will be subject to the restrictions described under “Sources and Uses of Funds” above and in Note 13 to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report. Credit Agreements We have the ability to access additional capital through multiple credit agreements. In December 2021, we entered into a credit agreement with U.S. Bank National Association (the “2021 Credit Agreement”) which provided a revolving credit facility of up to $100 million through December 8, 2026. In January 2026, we entered into a new credit agreement (the “2026 Credit Agreement”) that replaced the 2021 Credit Agreement. The 2026 Credit Agreement provides for unsecured credit facilities totaling $450 million, comprised of a $150 million revolving facility (the “Revolving Facility”) and a $300 million term loan (the “Term Loan”), each maturing on January 27, 2031. Borrowings under the 2026 Credit Agreement bear interest at variable rates based on Term Secured Overnight Financing Rate (“SOFR”) or an alternate base rate, plus an applicable margin determined by our debt-to-capital ratio (as defined in the 2026 Credit Agreement). In addition to interest on funds borrowed, we must pay an unused line fee of up to 0.25%, determined by our debt-to-capital ratio (as defined in the 2026 Credit Agreement), on any amounts not borrowed. The Term Loan amortizes quarterly, and borrowings may be prepaid without premium. Obligations under the 2026 Credit Agreement are guaranteed by certain of our domestic subsidiaries and are unsecured, subject to a negative pledge. Proceeds from the 2026 Credit Agreement may be used for general corporate purposes, including permitted acquisitions and the refinancing of existing indebtedness. Currently, $4.1 million of the borrowing capacity of the Revolving Facility is pledged as collateral and not able to be utilized. As of June 30, 2026, the Company had $295.8 million outstanding on its Term Loan. As of June 30, 2026, we had no borrowings outstanding through the 2021 Credit Agreement and the Revolving Facility. Our PSIC subsidiary is a member of the Federal Home Loan Bank of San Francisco (“FHLB”). Membership in the FHLB provides PSIC access to collateralized advances, which can be drawn for general corporate purposes and used to enhance liquidity 43 Table of Contents management. All borrowings are fully secured by a pledge of specific investment securities of PSIC and the borrowing capacity is equal to 10% of PSIC’s statutory admitted assets. All advances have predetermined term and the interest rate varies based on the term of the advance. As of June 30, 2026, we had no borrowings outstanding through the FHLB line of credit. Stockholders’ Equity At June 30, 2026 total stockholders’ equity was $980.9 million and tangible stockholders’ equity was $744.2 million, compared to total stockholders’ equity of $942.7 million and tangible stockholders’ equity of $881.6 million as of December 31, 2025. Stockholders’ equity increased due to net income earned for the period, activity related to stock-based compensation, and unrealized gains on fixed maturity securities. Tangible stockholders’ equity is a non‑GAAP financial measure. See “Reconciliation of Non‑GAAP Financial Measures” for a reconciliation of stockholders’ equity in accordance with GAAP to tangible stockholders’ equity. Investment Portfolio Our primary investment objectives are to maintain liquidity, preserve capital and generate a stable level of investment income. We purchase securities that we believe are attractive on a relative value basis and seek to generate returns in excess of predetermined benchmarks. Our Investment Committee reviews and recommends investment guidelines, which are subject to approval by our Board of Directors in accordance with applicable regulatory restrictions on asset type, quality and concentration. Our current investment guidelines allow us to invest in taxable and tax‑exempt fixed maturities, as well as publicly traded mutual funds and common stock of individual companies. Our cash and invested assets consist of cash and cash equivalents, fixed maturity securities, equity securities, and other investments. As of June 30, 2026, the majority of our investment portfolio, or $1.5 billion, was comprised of fixed maturity securities that are classified as available‑for‑sale and carried at fair value with unrealized gains and losses on these securities, net of applicable taxes, reported as a separate component of accumulated other comprehensive income. Also included in our investment portfolio were $129.5 million of equity securities, $40.9 million of investments in limited partnerships, and $5.0 million of a livestock put option. In addition, we maintained a non‑restricted cash and cash equivalent balance of $62.7 million at June 30, 2026. Our fixed maturity securities, including cash equivalents, had a weighted average effective duration of 4.33 and 3.81 years and an average rating of “A1/A+” as of June 30, 2026 and December 31, 2025, respectively. Our fixed income investment portfolio had a book yield of 4.99% as of June 30, 2026, compared to 4.83% as of December 31, 2025. At June 30, 2026 and December 31, 2025 the amortized cost and fair value on available‑for‑sale securities were as follows: Amortized Fair % of Total June 30, 2026 Cost or Cost Value Fair Value ($ in thousands) Fixed maturities: U.S. Governments $ 23,870 $ 23,535 1.6 % U.S. States, Territories, and Political Subdivisions 17,773 16,905 1.1 % Special revenue excluding mortgage/asset-backed securities 20,165 18,429 1.2 % Corporate and other 750,667 741,655 49.3 % Mortgage/asset-backed securities 710,530 702,336 46.7 % Total available-for-sale investments $ 1,523,005 $ 1,502,860 99.9 % Amortized Fair % of Total December 31, 2025 Cost or Cost Value Fair Value ($ in thousands) Fixed maturities: U.S. Governments $ 23,716 $ 23,587 1.9 % U.S. States, Territories, and Political Subdivisions 19,745 18,862 1.5 % Special revenue excluding mortgage/asset-backed securities 19,280 17,465 1.4 % Corporate and other 606,748 608,235 49.7 % Mortgage/asset-backed securities 558,116 556,038 45.5 % Total available-for-sale investments $ 1,227,605 $ 1,224,187 100.0 % 44 Table of Contents The following tables provide the credit quality of investment securities as of June 30, 2026 and December 31, 2025: Estimated % of June 30, 2026 Fair Value Total ($ in thousands) Rating AAA $ 168,710 11.2 % AA 500,803 33.3 % A 411,735 27.4 % BBB 367,542 24.5 % BB 48,554 3.2 % B 4,016 0.3 % CCC & Below 1,500 0.1 % $ 1,502,860 100.0 % Estimated % of December 31, 2025 Fair Value Total ($ in thousands) Rating AAA $ 143,223 11.7 % AA 411,484 33.6 % A 318,324 26.0 % BBB 297,191 24.3 % BB 48,471 4.0 % B 3,993 0.3 % CCC & Below 1,501 0.1 % $ 1,224,187 100.0 % The amortized cost and fair value of our available‑for‑sale investments in fixed maturity securities summarized by contractual maturity as of June 30, 2026 were as follows: Amortized Fair % of Total June 30, 2026 Cost Value Fair Value ($ in thousands) Due within one year $ 50,675 $ 50,623 3.4 % Due after one year through five years 295,580 292,059 19.4 % Due after five years through ten years 278,412 276,482 18.4 % Due after ten years 187,808 181,360 12.1 % Mortgage and asset-backed securities 710,530 702,336 46.7 % $ 1,523,005 $ 1,502,860 100.0 % Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations. Reinsurance We purchase a significant amount of reinsurance from third parties that we believe enhances our business by reducing our exposure to potential catastrophe losses, limiting volatility in our underwriting performance, and providing us with greater visibility into our future earnings. Reinsurance involves transferring, or ceding, a portion of our risk exposure on policies that we write to another insurer, the reinsurer, in exchange for a premium. To the extent that our reinsurers are unable to meet the obligations they assume under our reinsurance agreements, we remain liable for the entire insured loss; see “Risk Factors—Risks Related to Our Business and Industry—We may be unable to purchase third-party reinsurance or otherwise expand our catastrophe coverage in amounts we desire on commercially acceptable terms or on terms that adequately protect us, and this inability may materially adversely affect our business, financial condition and results of operations.” We use treaty reinsurance and, on a limited basis, facultative reinsurance coverage. Treaty coverage refers to a reinsurance contract that is applied to a group or class of business where all the risks written meet the criteria for that class. Our treaty reinsurance program primarily consists of catastrophe XOL coverage, in which the reinsurer(s) agree to assume all or a portion of the ceding 45 Table of Contents company’s losses relating to a group of policies occurring in relation to specified events, subject to customary exclusions, in excess of a specified amount. Additionally, we buy program specific reinsurance coverage for specific lines of business on a quota share, property per risk or a facultative basis. In quota share reinsurance, the reinsurer agrees to assume a specified percentage of the ceding company’s losses arising out of a defined class of business in exchange for a corresponding percentage of premiums, net of a ceding commission. Property per risk coverage is similar to catastrophe XOL coverage except that the treaty applies in individual property losses rather than in the aggregate for all claims associated with a single catastrophic loss occurrence. Facultative coverage refers to a reinsurance contract on individual risks as opposed to a group or class of business. We use facultative reinsurance selectively to supplement limits or to cover risks or perils excluded from other reinsurance contracts. We have a robust program utilizing a mix of traditional reinsurers and insurance linked securities. We currently purchase reinsurance from over 100 reinsurers, who either have an “A−” (Excellent) (Outlook Stable) or better financial strength rating by A.M. Best or post collateral. Our reinsurance contracts include special termination provisions that allow us to cancel and replace any participating reinsurer that is downgraded below a rating of “A−” (Excellent) (Outlook Stable) from A.M. Best, or whose surplus drops by more than 20%. In addition to reinsurance from traditional reinsurers, we utilize collateralized protection via catastrophe bonds. We currently have $1.2 billion of multi-year indemnity-based reinsurance coverage for catastrophe events, all issued through Torrey Pines Re Ltd., a Bermuda-domiciled special purpose insurer. Our catastrophe event retention is $20 million for earthquake events and $11 million for hurricane events and all other perils. Laulima maintains Hawaii hurricane reinsurance coverage through a standalone XOL treaty, which provides per-occurrence coverage up to $865 million with a retention of $1.5 million. Our reinsurance coverage exhausts at $3.9 billion for earthquake events and $135 million for continental U.S. hurricane events, providing coverage in excess of our 1 in 250-year peak zone PML and in excess of our A.M. Best requirement. In addition, we maintain reinsurance coverage equivalent to or better than the 1 in 250-year PML for our other lines. In the event that multiple catastrophe events occur in a period, many of our contracts include the right to reinstate reinsurance limits for potential future recoveries during the same contract year and preserve our limit for subsequent events. This feature for subsequent event coverage is known as a “reinstatement.” Critical Accounting Estimates We identified the accounting estimates which are critical to the understanding of our financial position and results of operations. Critical accounting estimates are defined as those estimates that are both important to the portrayal of our financial condition and results of operations and require us to exercise significant judgment. We use significant judgment concerning future results and developments in applying these critical accounting estimates and in preparing our condensed consolidated financial statements. These judgments and estimates affect our reported amounts of assets, liabilities, revenues and expenses and the disclosure of our material contingent assets and liabilities. Actual results may differ materially from the estimates and assumptions used in preparing the condensed consolidated financial statements. We evaluate our estimates regularly using information that we believe to be relevant. Our critical accounting policies and estimates are described in our annual consolidated financial statements and the related notes in our 2025 Annual Report on Form 10-K. In addition to those policies, during the current period the Company applied significant judgment in connection with the acquisition of Gray Surety, particularly with respect to the preliminary purchase price allocation, including the estimation of the fair value of acquired assets and assumed liabilities (such as intangible assets and reserves). These estimates remain subject to refinement as additional information becomes available during the measurement period. Our critical accounting policies remain consistent with those disclosed in Management’s Discussion and Analysis of Financial Condition and Operations included in our 2025 Annual Report on Form 10-K.