
	Direct		Assumed		Ceded		Net

Six months ended June 30, 2026
Premiums written	$	142,097,049	$	-	$	3,285,295	$	145,382,344
Change in unearned premiums	1,400,866		-		(30,446,919)		(29,046,053)
Premiums earned	$	143,497,915	$	-	$	(27,161,624)	$	116,336,291

Six months ended June 30, 2025
Premiums written	$	119,237,405	$	-	$	(6,017,324)	$	113,220,081
Change in unearned premiums	4,438,637		-		(27,920,395)		(23,481,758)
Premiums earned	$	123,676,042	$	-	$	(33,937,719)	$	89,738,323

Three months ended June 30, 2026
Premiums written	$	72,493,668	$	-	$	(4,704,561)	$	67,789,107
Change in unearned premiums	1,015,525		-		(8,337,155)		(7,321,630)
Premiums earned	$	73,509,193	$	-	$	(13,041,716)	$	60,467,477

Three months ended June 30, 2025
Premiums written	$	61,062,409	$	-	$	(8,851,735)	$	52,210,674
Change in unearned premiums	1,968,256		-		(7,963,670)		(5,995,414)
Premiums earned	$	63,030,665	$	-	$	(16,815,405)	$	46,215,260


	Six months ended June 30,		Year ended December 31,
	2026		2025

Balance at beginning of period	$	140,538,618	$	126,210,428
Less reinsurance recoverables	(33,232,365)		(32,322,637)
Net balance, beginning of period	107,306,253		93,887,791

Incurred related to:
Current year	72,405,016		85,349,385
Prior years	(2,900,135)		(1,083,663)
Total incurred	69,504,881		84,265,722

Paid related to:
Current year	28,629,519		40,940,473
Prior years	19,638,622		29,906,787
Total paid	48,268,141		70,847,260

Net balance at end of period	128,542,993		107,306,253
Add reinsurance recoverables	38,932,025		33,232,365
Balance at end of period	$	167,475,018	$	140,538,618

Prior year incurred loss and LAE development is based upon estimates by line of business and accident year. Prior year loss and LAE development incurred during the six months ended June 30, 2026 and 2025 was $2,900,135 favorable and $812,256 favorable, respectively. During the six months ended June 30, 2026, property claims overall developed better than expected driven primarily by reserve takedowns on several fire and water claims from accident years 2024 and 2025 as well as a large subrogation recovery on a water damage claim from accident year 2023, resulting in favorable development. During the six months ended June 30, 2025, the favorable development was attributable to reserve decreases on fire and water damage claims from accident years 2022 through 2024 as well as a large subrogation recovery on a water damage claim from accident year 2022.

The reserving process for loss and LAE reserves provides for the Company’s best estimate at a particular point in time of the ultimate unpaid cost of all losses and LAE incurred, including settlement and administration of losses, and is based on facts and circumstances then known including losses that have occurred but that have not yet been reported. The process relies on standard actuarial reserving methodologies, judgments relative to estimates of ultimate claim severity and frequency, the length of time before losses will develop to their ultimate level (‘tail’ factors), and the likelihood of changes in the law or other external factors that are beyond the Company’s control. Several actuarial reserving methodologies are used to estimate required loss reserves. The process produces carried reserves set by management based upon the actuaries’ best estimate and is the cumulative combination of the best estimates made by line of business, accident year, and loss and LAE. The amount of loss and LAE reserves for individual reported claims (the “case reserve”) is determined by the claims department and changes over time as new information is gathered. Such information is critical to the review of appropriate IBNR reserves and includes a review of coverage applicability, comparative liability on the part of the insured, injury severity, property damage, replacement cost estimates, and any other information considered pertinent to estimating the exposure presented by the claim. The amounts of loss and LAE reserves for unreported claims and development on known claims (IBNR reserves) are determined using historical information aggregated by line of business as adjusted to current conditions. Since this process produces loss reserves set by management based upon the actuaries’ best estimate, there is no explicit or implicit provision for uncertainty in the carried loss reserves.

results. Reserves are closely monitored and are recomputed periodically using the most recent information on reported claims and a variety of statistical techniques. On at least a quarterly basis, the Company reviews by line of business existing reserves, new claims, changes to existing case reserves, and paid losses with respect to the current and prior periods. Several methods are used, varying by line of business and accident year, in order to select the estimated period-end loss reserves. These methods include the following:

Paid Bornhuetter-Ferguson (“BF”) – an estimated loss ratio for a particular accident year is determined, and is weighted against the portion of the accident year claims that have been paid, based on historical paid loss development patterns. The estimate of required reserves assumes that the remaining unpaid portion of a particular accident year will pay out at a rate consistent with the estimated loss ratio for that year. This method can be useful for situations where an unusually high or low amount of paid losses exists at the early stages of the claims development process.

Incurred Bornhuetter-Ferguson (“BF”) - an estimated loss ratio for a particular accident year is determined, and is weighted against the portion of the accident year claims that have been reported, based on historical incurred loss development patterns. The estimate of required reserves assumes that the remaining unreported portion of a particular accident year will pay out at a rate consistent with the estimated loss ratio for that year. This method can be useful for situations where an unusually high or low amount of reported losses exists at the early stages of the claims development process.

Incremental Claim-Based Methods – historical patterns of incremental incurred losses and paid LAE during various stages of development are reviewed and assumptions are made regarding average loss and LAE development applied to remaining claims inventory. Such methods more properly reflect changes in the speed of claims closure and the relative adequacy of case reserve levels at various stages of development. These methods may provide a more accurate estimate of IBNR for lines of business with relatively few remaining open claims but for which significant recent settlement activity has occurred.

Frequency / Severity Based Methods – historical measurements of claim frequency and average paid claim size (severity) are reviewed for more mature accident years where a majority of claims have been reported and/or closed. These historical averages are trended forward to more recent periods in order to estimate ultimate losses for newer accident years that are not yet fully developed. These methods are useful for lines of business with slow and/or volatile loss development patterns, such as liability lines where information pertaining to individual cases may not be completely known for many years. The claim frequency and severity information for older periods can then be used as reasonable measures for developing a range of estimates for more recent immature periods.

Three key assumptions that materially affect the estimate of loss reserves are the loss ratio estimate for the current accident year used in the BF methods, the loss development factor selections used in the loss development methods, and the loss severity assumptions used in the frequency / severity method described above. The loss ratio estimates used in the BF methods are selected after reviewing historical accident year loss ratios adjusted for rate changes, trend, and mix of business. The severity assumptions used in the frequency / severity method are determined by reviewing historical average claim severity for older more mature accident periods, trended forward to less mature accident periods.

The Company reviews the carried reserves levels on a regular basis as additional information becomes available and makes adjustments in the periods in which such adjustments are determined to be necessary. The Company is not aware of any claim trends that have emerged or that would cause future adverse development that have not already been contemplated in setting current carried reserves levels.

In New York State, lawsuits for negligence are subject to certain limitations and must be commenced within three years from the date of the accident or are otherwise barred. Accordingly, the Company’s exposure to unreported claims (“pure” IBNR) for accident dates of June 30, 2023 and prior is limited, although there remains the possibility of adverse development on reported claims (“case development” IBNR). In certain rare circumstances states have retroactively revised a statute of limitations. The Company is not aware of any such effort that would have a material impact on the Company’s results.

The following is information about incurred and paid claims development as of June 30, 2026, net of reinsurance, as well as the cumulative reported claims by accident year and total IBNR reserves as of June 30, 2026 included in the net incurred loss and allocated expense amounts. The historical information regarding incurred and paid claims development for the years ended December 31, 2017 to December 31, 2025 is presented as supplementary unaudited information.


	Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance																				As of June 30, 2026
Accident Year	For the Years Ended December 31,																		Six Months Ended June 30, 2026		IBNR		Cumulative Number of Reported Claims by Accident Year
	2017		2018		2019		2020		2021		2022		2023		2024		2025

	(Unaudited 2017 - 2025)																		(Unaudited)

2017	$	31,605	$	32,169	$	35,304	$	36,160	$	36,532	$	36,502	$	36,819	$	37,268	$	37,359	$	36,891	$	161	3,401
2018			54,455		56,351		58,441		59,404		61,237		61,145		61,686		61,897		61,708		604		4,238
2019					75,092		72,368		71,544		71,964		73,310		74,363		76,337		76,669		1,675		4,511
2020							63,083		62,833		63,217		63,562		64,400		65,888		66,069		877		5,896
2021									96,425		96,673		96,134		96,771		98,411		98,902		1,294		5,838
2022											79,835		78,759		78,078		77,319		77,172		2,243		4,721
2023													78,978		72,025		70,128		69,925		4,759		4,102
2024															57,860		54,364		54,095		5,943		3,152
2025																	77,556		75,084		16,548		2,406
2026																			67,857		14,567		1,657
																	Total		$	684,371


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	For the Years Ended December 31,																		Six Months Ended June 30, 2026
	2017		2018		2019		2020		2021		2022		2023		2024		2025
	(Unaudited 2017 - 2025)																		(Unaudited)

2017	$	16,704	$	24,820	$	28,693	$	31,393	$	32,529	$	33,522	$	34,683	$	35,046	$	35,336	$	35,361
2018			32,383		44,516		50,553		52,025		54,424		56,199		57,185		57,798		58,582
2019					40,933		54,897		58,055		60,374		63,932		66,109		68,648		70,376
2020							39,045		50,719		53,432		56,523		59,220		60,859		61,101
2021									56,282		77,756		82,317		85,314		90,865		92,342
2022											45,856		65,732		68,170		70,703		71,667
2023													46,280		56,952		59,571		60,511
2024															29,013		40,086		41,500
2025																	36,572		47,331
2026																			26,702
																	Total		$	565,473

Net liability for unpaid loss and allocated loss adjustment expenses for the accident years presented																			$	118,898
All outstanding liabilities before 2017, net of reinsurance																			1,559
Liabilities for loss and allocated loss adjustment expenses, net of reinsurance																			$	120,457

On January 1, 2025, the Company entered into a 16% quota share reinsurance treaty for its personal lines business, which primarily consisted of homeowners’ and dwelling fire policies, covering the period from January 1, 2025 through January 1, 2026 (“2025/2026 Treaty”). Upon the expiration of the 2025/2026 Treaty on January 1, 2026, the Company entered into a new 5% quota share reinsurance treaty for its personal lines business written in all states except California (for which the Company entered into a new 30% quota share reinsurance treaty) covering the period from January 1, 2026 through January 1, 2027 (“2026/2027 Treaty”).

The Company’s excess of loss and catastrophe reinsurance treaties expired on June 30, 2026 and the Company entered into new excess of loss and catastrophe reinsurance treaties effective July 1, 2026. The new catastrophe reinsurance treaties include the second year of the $125,000,000 catastrophe bond ("Series 2025-1 Notes") issued on July 1, 2025. The Series 2025-1 Notes were priced at 4.5% and issued through a Bermuda-registered special purpose insurer, 1886 Re Ltd., providing KICO with $125,000,000 of collateralized reinsurance protection. The Series 2025-1 Notes offer multi-year protection against named storm events across New York, New Jersey, Connecticut, Massachusetts and Rhode Island on an indemnity trigger and per-occurrence basis. The Series 2025-1 Notes, which were structured and placed by AON Securities LLC, cover four annual risk periods from July 1, 2025, through June 30, 2029.

Effective January 1, 2025, the Company renewed an underlying excess of loss reinsurance treaty ("Underlying XOL Treaty") covering the period from January 1, 2025 through June 30, 2025. The treaty provided 50% reinsurance coverage for losses of $400,000 in excess of $600,000. Losses from named storms were excluded from the treaty. Effective July 1, 2025, the Underlying XOL Treaty was renewed along with the Company's excess of loss reinsurance treaty covering the period from July 1, 2025 through June 30, 2026 ("2025/2026 XOL Treaties"). Combined, the renewed 2025/2026 XOL Treaties provided 50% reinsurance coverage for losses of $250,000 in excess of $750,000, and 100% reinsurance coverage for losses in excess of $1,000,000 up to $9,000,000 together with facultative coverage. Effective July 1, 2026, the Underlying XOL Treaty was renewed along with the Company's excess of loss reinsurance treaty covering the period from July 1, 2026 through June 30, 2027 ("2026/2027 XOL Treaties"). Combined, the renewed 2026/2027 XOL Treaties provide 50% reinsurance coverage for losses of $250,000 in excess of $750,000, and 100% reinsurance coverage for losses in excess of $1,000,000 up to $11,000,000 together with facultative coverage. For the period October 1, 2024 through April 30, 2025, the Company purchased catastrophe reinsurance which provides coverage for winter storm losses to the extent of 71% of $4,500,000 in excess of $5,500,000. For the period October 15, 2025 through April 30, 2026, the Company purchased catastrophe reinsurance which provides coverage for winter storm losses to the extent of 90% of $5,000,000 in excess of $5,000,000. For the period July 1, 2026 through June 30, 2027, the Company purchased 70% of all perils coverage excluding named storm losses of $5,000,000 in excess of $5,000,000.


	Treaty Period
			2026/2027 Treaty						2025/2026 Treaty
Line of Business	January 2, 2027 to June 30, 2027		July 1, 2026 to January 1, 2027			January 2, 2026 to June 30, 2026			July 1, 2025 to January 1, 2026			January 2, 2025 to June 30, 2025

Personal Lines:
Homeowners, dwelling fire and canine legal liability
Quota share treaty:
Percent ceded (6)	(5)		5		%	5		%	16		%	16		%
Risk retained on initial
$1,000,000 of losses (4) (5) (6)	(5)		$	950,000		$	950,000		$	840,000		$	840,000
Losses per occurrence
subject to quota share
reinsurance coverage	(5)		$	1,000,000		$	1,000,000		$	1,000,000		$	1,000,000
Expiration date	(5)		January 1, 2027			January 1, 2027			January 1, 2026			January 1, 2026
Excess of loss coverage and
facultative facility
coverage (1) (4) (5)	$	10,250,000	$	10,250,000		$	8,250,000		$	8,250,000		$	8,400,000
	in excess of		in excess of			in excess of			in excess of			in excess of
	$	750,000	$	750,000		$	750,000		$	750,000		$	600,000
Total reinsurance coverage
per occurrence (4) (5)	$	10,125,000	$	10,175,000		$	8,175,000		$	8,285,000		$	8,360,000
Losses per occurrence
subject to reinsurance
coverage (5)	$	11,000,000	$	11,000,000		$	9,000,000		$	9,000,000		$	9,000,000
Expiration date	June 30, 2027		June 30, 2027			June 30, 2026			June 30, 2026			June 30, 2025

Catastrophe Reinsurance:
Initial loss subject to personal
lines quota share treaty (5)	(5)		$	10,000,000		$	10,000,000		$	10,000,000		$	10,000,000
Risk retained per catastrophe
occurrence (5) (6) (7) (8)	$	5,250,000	$	4,750,000		$	5,500,000		$	5,000,000		$	4,250,000
Catastrophe loss coverage
in excess of quota share
coverage (2) (5) (8)	$	494,750,000	$	495,250,000		$	434,500,000		$	435,000,000		$	275,000,000

Reinstatement premium
protection (3)	Yes		Yes			Yes			Yes			Yes

(1)For personal lines, includes the addition of an automatic facultative facility allowing KICO to obtain homeowners single risk coverage up to $9,000,000 in total insured value, which covers direct losses from $3,500,000 to $9,000,000 through June 30, 2026. Effective July 1, 2026, homeowners single risk coverage was increased to $11,000,000 in total insured value, which covers direct losses from $3,500,000 to $11,000,000 through June 30, 2027.

(2)Through June 30, 2026, catastrophe coverage is limited on an annual basis to two times the per occurrence amounts, except for one occurrence on 80% of the first layer of $5,000,000 in excess of $5,000,000, and one occurrence on 52% of the top layer of $240,000,000 in excess of $200,000,000, which is covered under the catastrophe bond. Effective July 1, 2026, catastrophe coverage is limited on an annual basis to two times the per occurrence amounts, except for one occurrence on: (i) 70% of the first layer of $5,000,000 in excess of $5,000,000 for all perils excluding named storms, and (ii), 95% of the first layer of $5,000,000 in excess of $5,000,000 for named storms, and one occurrence on 45% of the layer of $275,000,000 in excess of $215,000,000, which is covered under the catastrophe bond. Duration of 168 consecutive hours for a non-named catastrophe occurrence from windstorm, hail, tornado, hurricane and cyclone. For named storms, duration beginning on the date a watch, warning, advisory, or other bulletin is first issued, continuing for a time period thereafter during which such named storm continues, regardless of its category rating or lack thereof and regardless of whether the watch, warning, advisory or other bulletin remains in effect for such named storm, and ending on the fourth calendar day following the issuance of the last watch, warning, advisory or other bulletin.

(3)For the period July 1, 2024 through June 30, 2025 (expiration date of the catastrophe reinsurance treaty), reinstatement premium protection for $50,000,000 of catastrophe coverage in excess of $10,000,000. For the period July 1, 2025 through June 30, 2026 (expiration date of the catastrophe reinsurance treaty), reinstatement premium protection for $50,000,000 of catastrophe coverage in excess of $10,000,000. For the period July 1, 2026 through June 30, 2027 (expiration date of the catastrophe reinsurance treaty), reinstatement premium protection for $50,000,000 of catastrophe coverage in excess of $10,000,000 for named storms only.

(4)For the period January 1, 2024 through June 30, 2025, the Underlying XOL Treaty provides 50% reinsurance coverage for losses of $400,000 in excess of $600,000. Excludes losses from named storms. Reduces retention to $530,000 from $730,000 under the quota share treaty that expired on January 1, 2025. Retention increases to $640,000 from $530,000 under the 2025/2026 Treaty. For the period July 1, 2025 through June 30, 2026, the Underlying XOL Treaty combined with the excess of loss treaty provide 50% reinsurance coverage for losses of $250,000 in excess of $750,000, and 100% reinsurance coverage for losses in excess of $1,000,000 up to $9,000,000 together with facultative coverage. For the period July 1, 2026 through June 30, 2027, the Underlying XOL Treaty combined with the excess of loss treaty provide 50% reinsurance coverage for losses of $250,000 in excess of $750,000, and 100% reinsurance coverage for losses in excess of $1,000,000 up to $11,000,000 together with facultative coverage. Increased retention to $715,000 from $640,000 under the 2025/2026 Treaty, and increased retention to $825,000 under the 2026/2027 Treaty (see note 5 below).

(5)The personal lines quota share treaty (homeowners, dwelling fire and canine liability) will expire on January 1, 2027, with none of these coverages to be in effect during the period from January 2, 2027 through June 30, 2027. If and when this treaty is renewed on January 2, 2027, the personal lines quota share treaty, will be as provided for therein. Reinsurance coverage in effect from January 2, 2027 through June 30, 2027 is only for excess of loss, Underlying XOL, and catastrophe reinsurance treaties.

(8)Effective July 1, 2025 through June 30, 2026, catastrophe coverage is 80% of the first layer of $5,000,000 in excess of $5,000,000. The remaining coverage is at 100% of $430,000,000 in excess of $10,000,000. For the period October 1, 2024 through April 30, 2025, additional catastrophe reinsurance treaty provided coverage for winter storm losses to the extent of 71% of $4,500,000 in excess of $5,500,000. For the period October 15, 2025 through April 30, 2026, an additional catastrophe reinsurance treaty provided coverage for winter storm losses to the extent of 90% of $5,000,000 in excess of $5,000,000. Retention for winter storms was $5,200,000 under the 2025/2026 Treaty from January 1, 2025 through April 30, 2025, $3,900,000 from October 15, 2025 through January 1, 2026, the expiration date of the 2025/2026 Treaty, and $5,000,000 under the 2026/2027 Treaty through April 30, 2026. Effective July 1, 2026 through June 30, 2027, catastrophe coverage is 95% of the first layer of $5,000,000 in excess of $5,000,000 for named storms, 70% for all other catastrophe risks. The remaining coverage is at 100% of $490,000,000 in excess of $10,000,000.


	Treaty Year
Line of Business	July 1, 2026 to June 30, 2027			July 1, 2025 to June 30, 2026			July 1, 2024 to June 30, 2025

Personal Lines:
Personal Umbrella
Quota share treaty:
Percent ceded - first $1,000,000 of coverage	90		%	90		%	90		%
Percent ceded - excess of $1,000,000 of coverage	95		%	95		%	95		%
Risk retained	$	300,000		$	300,000		$	300,000
Total reinsurance coverage per occurrence	$	4,700,000		$	4,700,000		$	4,700,000
Losses per occurrence subject to quota share reinsurance coverage	$	5,000,000		$	5,000,000		$	5,000,000
Expiration date	June 30, 2027			June 30, 2026			June 30, 2025

Commercial Lines (1)

The Company’s reinsurance program has been structured to enable the Company to grow its premium volume while maintaining regulatory capital and other financial ratios generally within or below the expected ranges used for regulatory oversight purposes. The reinsurance program also provides income as a result of ceding commissions earned pursuant to the quota share reinsurance contracts. The Company’s participation in reinsurance arrangements does not relieve the Company of its obligations to policyholders.

The Company earned ceding commission revenue under the 2025/2026 Treaty for the three and six months ended June 30, 2025 based on: (i) a fixed provisional commission rate at which provisional ceding commissions were earned, and (ii) a sliding scale ("Sliding Scale") of commission rates and ultimate treaty year loss ratio on the policies reinsured under this agreement based upon which contingent ceding commissions are earned. The Sliding Scale included minimum and maximum commission rates in relation to specified ultimate loss ratios. The commission rate and contingent ceding commissions earned increase when the estimated ultimate loss ratio decreases and, conversely, the commission rate and contingent ceding commissions earned decrease when the estimated ultimate loss ratio increases.

Provisional ceding commissions are settled monthly. Balances due to or from reinsurers for contingent ceding commissions on the 2025/2026 Treaty will be settled annually based on the Loss Ratio of the treaty year that ends on January 1. Balances due to or from reinsurers for Sliding Scale contingent ceding commissions on quota share treaties are settled periodically based on the Loss Ratio of each treaty year that ends on June 30 for the expired treaties (which had June 30 expiration dates) that were subject to Sliding Scale

contingent commissions. The Loss Ratios from prior years’ treaties are subject to change as incurred losses from those periods develop, resulting in an increase or decrease in the commission rate and Sliding Scale contingent ceding commissions earned. As of June 30, 2026 and December 31, 2025, contingent ceding commissions receivable from reinsurers under the 2025/2026 Treaty was approximately $2,064,000 and $1,754,000, respectively, which is recorded in other assets on the accompanying condensed consolidated balance sheets. As of June 30, 2026 and December 31, 2025, net contingent ceding commissions payable to reinsurers under all other treaties was approximately $734,000 and $732,000, respectively, which is recorded in reinsurance balances payable on the accompanying condensed consolidated balance sheets.