Market risk represents the potential for economic loss arising from adverse changes in the fair value of financial instruments and investment real estate. The Company’s primary market risk exposures relate to changes in interest rates, credit spreads, equity prices and real estate market values. The Company’s investment portfolio as of June 30, 2026 primarily consisted of available-for-sale debt securities and equity securities. Available-for-sale debt securities and equity securities are carried at fair value; however, unrealized gains and losses on available-for-sale debt securities are generally recorded in accumulated other comprehensive income, while changes in the fair value of equity securities are recognized in earnings. Investment real estate is carried at net book value and is subject to market value and impairment risk. The primary objectives of the investment portfolio are preservation of capital and maintenance of adequate liquidity to fund claim payments, reinsurance obligations and other cash requirements. The portfolio’s secondary objective is to generate total return, with an emphasis on investment income. The Company does not hold risk-sensitive financial instruments for trading purposes. There were no material changes in the Company’s market risk exposures during the six months ended June 30, 2026 from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. See “Item 1—Note 3 (Investments)” for additional information regarding the Company’s investment portfolio. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will affect the fair value of the Company’s fixed-rate financial instruments. In general, increases in interest rates reduce the fair value of fixed-rate securities, while decreases in interest rates increase their fair value. The extent of the change in fair value depends on several factors, including the remaining term to maturity, coupon rate, duration, credit quality and market conditions. The following tables present information about the Company’s fixed-income financial instruments as of June 30, 2026 and December 31, 2025 that are sensitive to changes in interest rates. The tables summarize expected cash flows by year of effective 51 Table of Contents maturity, based on amortized cost, and compare those amounts with fair value, book yield and coupon yield (dollars in thousands): June 30, 2026 2026 2027 2028 2029 2030 Thereafter Other Total Amortized cost $ 172,864 $ 221,238 $ 163,444 $ 198,258 $ 235,461 $ 562,635 — $ 1,553,900 Fair market value $ 171,681 $ 219,221 $ 160,926 $ 190,411 $ 224,278 $ 539,629 — $ 1,506,146 Coupon rate 3.51 % 3.51 % 4.31 % 3.64 % 3.26 % 4.34 % — 3.87 % Book yield 3.37 % 3.85 % 3.99 % 3.51 % 3.56 % 4.33 % — 3.90 % * Years to effective maturity - 4.4 years December 31, 2025 2026 2027 2028 2029 2030 Thereafter Other Total Amortized cost $ 161,486 $ 236,488 $ 160,014 $ 158,158 $ 220,390 $ 527,206 $ 2,403 $ 1,466,145 Fair market value $ 160,558 $ 235,232 $ 158,958 $ 155,235 $ 210,711 $ 507,974 $ 2,360 $ 1,431,028 Coupon rate 3.14 % 3.17 % 3.98 % 3.79 % 3.31 % 4.01 % 3.61 % 3.64 % Book yield 3.15 % 3.59 % 3.72 % 3.64 % 3.24 % 4.04 % 3.69 % 3.67 % * Years to effective maturity - 4.5 years Except for securities with perpetual maturities, the tables above categorize securities by years to effective maturity. Effective maturity reflects potential prepayments, including call features and scheduled prepayments, that may shorten the period to contractual maturity. Equity Price Risk Equity price risk is the potential for loss in fair value of Financial Instruments in common stock and mutual funds and other from adverse changes in the prices of those Financial Instruments. The following table provides information about the Financial Instruments in our investment portfolio subject to price risk as of the dates presented (in thousands): June 30, 2026 December 31, 2025 Fair Value Percent Fair Value Percent Equity Securities: Common stock $ 43,106 38.5 % $ 37,509 43.9 % Mutual funds and other 68,723 61.5 % 47,911 56.1 % Total equity securities $ 111,829 100.0 % $ 85,420 100.0 % A hypothetical decrease of 20% in the market prices of each of the equity securities held at June 30, 2026, and December 31, 2025, would have resulted in a decrease of $22.4 million and $17.1 million, respectively, in the fair value of those securities.