Employee Benefit Plans

9 Months Ended

Sep. 30, 2025

Employee Benefit Plans

Employee Benefit Plans

Employee Benefit Plans

Bonus Plans

Employee Bonus Plan

For the three months ended September 30, 2025 and 2024, the Company accrued $1,414,952 and $873,219, respectively ("Cash Payments"), related to an employee bonus plan (the "Bonus Plan"), of which $322,609 and $199,094, respectively, is allocated and recorded in loss and LAE, and $1,092,343 and $674,125, respectively, is recorded in other underwriting expenses on the accompanying condensed consolidated statements of income and comprehensive income. For the nine months ended September 30, 2025 and 2024, the Company accrued approximately $2,395,343 and $1,457,359, respectively, of Cash Payments related to the Bonus Plan, of which $546,138 and $332,278, respectively, is allocated and recorded in loss and LAE, and $1,849,205 and $1,125,081, respectively, is

recorded in other underwriting expenses on the accompanying condensed consolidated statements of income and comprehensive income. In addition to the Cash Payments, the Bonus Plan provides for a restricted stock award ("RSA") to the Company's senior leadership team ("SLT") and other members of management in an amount up to their Cash Payments if certain performance metrics have been met. The performance metrics for the three months ended September 30, 2025 and 2024 were met, and, accordingly, $149,862 and $150,000 of stock-based compensation liability has been accrued for the three months ended September 30, 2025 for the SLT RSA bonus and is recorded in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income. The performance metrics for the nine months ended September 30, 2025 and 2024 were met, and, accordingly, $197,868 and $150,000 of stock-based compensation liability has been accrued for the nine months ended September 30, 2025 for the SLT RSA bonus and is recorded in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income.

Executive Bonus Plan

For the three months ended September 30, 2025 and 2024, the Company accrued approximately $254,000 and $205,000, respectively, for a bonus pursuant to the Third Amended Golden Employment Agreement ("Executive Bonus"), of which $229,000 and $290,000, respectively, is recorded in other underwriting expenses, and $25,000 and $(85,000), respectively, is recorded in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income. For the nine months ended September 30, 2025, the Company accrued approximately $625,000 and $322,000, respectively, for the Executive Bonus of which $563,000 and $290,000, respectively, is recorded in other underwriting expenses, and $62,000 and $32,000, respectively, is recorded in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income.

401(k) Plan

The Company maintains a salary reduction plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) for its qualified employees. The Company matches 100% of each participant’s contribution up to 4% of the participant’s eligible contribution. The Company incurred approximately $86,000 and $74,000, respectively, of expense for the three months ended September 30, 2025 and 2024, related to the 401(k) Plan, which is recorded in other underwriting expenses on the accompanying condensed consolidated statements of income and comprehensive income. The Company incurred approximately $271,000 and $212,000, respectively, of expense for the nine months ended September 30, 2025 and 2024, related to the 401(k) Plan, which is recorded in other underwriting expenses on the accompanying condensed consolidated statements of income and comprehensive income.