Financial Services, Insurance

12 Months Ended

Dec. 31, 2025

Liability for Future Policy Benefits and Unpaid Claims Disclosure

The following is a summary of loss and loss adjustment expense reserves, including certain components, for the Company’s major product lines by reporting segment at December 31, 2025 and 2024.


	December 31, 2025						December 31, 2024
	Net Claims and Claim Adjustment Expense Reserves		Reinsurance Recoverables on Unpaid Losses		Loss and Loss Adjustment Reserves		Net Claims and Claim Adjustment Expense Reserves		Reinsurance Recoverables on Unpaid Losses		Loss and Loss Adjustment Reserves
Commercial auto	$	23,062	$	136,132	$	159,194	$	28,720	$	129,752	$	158,472
Excess liability	16,897		99,713		116,610		6,571		43,677		50,248
General liability	12,572		51,024		63,596		8,286		26,925		35,211
Workers compensation	17,798		—		17,798		14,465		—		14,465
Non-standard personal auto	3,635		191		3,826		12,185		504		12,689
Professional liability	2,851		37,996		40,846		1,807		15,891		17,698
Multi-peril / business owners (BOP)	1,519		4,666		6,185		43		230		273
Surety	94		12,140		12,233		6		11,211		11,217
Unallocated loss adjustment expense reserves	5,552		9,317		14,869		6,578		5,660		12,238
Other (1)	289		24,544		24,834		320		36,231		36,551
Total	$	84,268	$	375,722	$	459,991	$	78,981	$	270,081	$	349,062

(1)Other includes $23,530 and $35,146 at December 31, 2025 and 2024, respectively, related to legacy liabilities obtained from the acquisitions of Providence Washington Insurance Company, Greenwood Insurance Company, and Consolidated Specialty Insurance Company. All legacy liabilities remain obligations of affiliates of the sellers through reinsurance and contractual indemnities.

Reinsurance

Reinsurance Recoverables, Including Credit Impairments:

Everspan’s reinsurance assets, including deferred ceded premiums and reinsurance recoverables on losses, amounted to $582,457 at December 31, 2025. Credit exposure existed at December 31, 2025, with respect to reinsurance recoverables to the extent that any reinsurer may not be able to reimburse Everspan under the terms of these reinsurance arrangements. At December 31, 2025, there were ceded reinsurance balances payable of $80,561 offsetting this credit exposure. Contractually ceded reinsurance payables can only be offset against amounts owed from the same reinsurer in the event that such reinsurer is unable to meet its obligations to reimburse Everspan.

To minimize its credit exposure to losses from reinsurer insolvencies, Everspan (i) is entitled to receive collateral from its reinsurance counterparties in certain reinsurance contracts and (ii) has certain cancellation rights that can be exercised by Everspan in the event of rating agency downgrades of a reinsurer (among other events and circumstances). Everspan held letters of credit and collateral amounting to $88,732 from its reinsurers at December 31, 2025. For those reinsurance counterparties that do not currently post collateral, Everspan's reinsurers are well-capitalized, highly rated, authorized capacity providers. Additionally, while legacy liabilities from the Providence Washington Insurance Company acquisition and the admitted carriers acquired by Everspan on January 3, 2022, (Greenwood Insurance Company and Consolidated Specialty Insurance Company), were fully ceded to certain reinsurers,

Everspan also benefits from an unlimited, uncapped indemnity from Enstar Holdings (US) and 21st Century Premier Insurance Company to mitigate any residual risk to these reinsurers.

For 2025, our top five reinsurers represented 54% our total reinsurance recoverables on paid and unpaid losses. These reinsurance recoverables were primarily from reinsurers with applicable ratings of A or better. The following table sets forth our five most significant reinsurers by amount of reinsurance recoverables as of December 31, 2025.


Reinsurers	Rating (1)	Reinsurance Recoverable (2)		Unsecured Recoverable (3)
General Reinsurance Company	A++	$	124,602	$	100,165
Munich Reinsurance Company	A+	57,036		55,196
QBE Insurance Corporation	A	19,791		19,791
Everest Reinsurance Company	A+	17,524		17,932
Swiss Reinsurance America Corporation	A+	15,507		14,657
All other reinsurers		201,632		104,054
Total recoverables		$	436,092	$	311,795

(1)Represents financial strength ratings from AM Best.

(2)Represents reinsurance recoverables on paid and unpaid losses. Unsecured amounts from QBE Insurance Corporation is also supported by an unlimited, uncapped indemnity from Enstar Holdings (US).

(3)Reinsurance recoverables reduced by ceded premiums payables due to reinsurers, letters of credit, and collateral posted for the benefit of Everspan.

Everspan has uncollateralized credit exposure to reinsurers of $311,795 and $232,310 and has recorded an allowance for credit losses of $100 and $100 at December 31, 2025 and 2024, respectively. The uncollateralized credit exposure to reinsurers includes legacy liabilities obtained from the acquisitions of Providence Washington Insurance Company and the admitted carriers acquired by Everspan on January 3, 2022, of $23,530 and $35,146 at December 31, 2025 and 2024, respectively. All legacy liabilities remain with affiliates of the sellers through reinsurance and contractual indemnities.