Property and Casualty Insurance Activity (Tables)

6 Months Ended

Jun. 30, 2026

Property and Casualty Insurance Activity

Premiums written, ceded and earned are as follows:


	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

Schedule of Unpaid Loss and Loss Adjustment Expense Reserves

The following table provides a reconciliation of the beginning and ending balances for unpaid loss and LAE reserves:


	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

Schedule of Line of Business

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.

All Lines of Business

(in thousands, except reported claims data)


	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

All Lines of Business

(in thousands)


	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

Schedule of Reconciliation of the Disclosure of Incurred and Paid Loss Development to the Liability for Loss and LAE Reserves

The reconciliation of the net incurred and paid loss development tables to the loss and LAE reserves in the condensed consolidated balance sheet is as follows:

Reconciliation of the Disclosure of Incurred and Paid Loss Development

to the Liability for Loss and LAE Reserves


(in thousands)	As of June 30, 2026
Liabilities for allocated loss and loss adjustment expenses, net of reinsurance	$	120,457
Total reinsurance recoverable on unpaid losses	38,932
Unallocated loss adjustment expenses	8,086
Total gross liability for loss and LAE reserves	$	167,475

Schedule of Material Terms for Reinsurance Treaties

Material terms for reinsurance treaties in effect for the treaty years shown below are as follows (see Note 15 - Subsequent Events, Reinsurance):


	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.

(6)For the 2025/2026 Treaty, 6% of the 16% total of losses ceded under this treaty were excluded from a named catastrophe event. For the 2026/2027 Treaty, there is no exclusion for catastrophe events. Quota share reinsurance under the 2026/2027 treaty is 5% for personal lines business written in all states except California (for which the quota share rate is 30%).

(7)Plus losses in excess of catastrophe coverage.

(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.

Schedule of Line of Business of Reinsurance Coverage


	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)

(1)Coverage on all commercial lines policies expired in September 2020; reinsurance coverage is based on treaties in effect on the date of loss.

Schedule Of Ceding Commission Revenue

Ceding commission revenue consists of the following:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025

Provisional ceding commissions earned	$	1,351,943	$	3,387,505	$	2,628,693	$	6,639,909
Contingent ceding commissions earned	181,023		(305,949)		308,149		(599,662)
	$	1,532,966	$	3,081,556	$	2,936,842	$	6,040,247