Segment Information

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

Segment Information

Segment Information

We have one reportable segment: management operations. All segment revenue is derived in the United States, the majority of which is from the subscriber's agreement between us and the subscribers (policyholders) at the Exchange, our sole customer, as further described in Note 3, "Revenue". Our chief operating decision maker ("CODM") is our Executive Council, which includes our Chief Executive Officer ("CEO"), Chief Financial Officer, executive vice presidents and certain senior vice presidents reporting directly to the CEO as applicable. The CODM assesses performance for the management operations segment and decides how to allocate resources based on net income, as reported in our Consolidated Statements of Operations. Net income is used to monitor budget versus actual results. Total assets as reported in our Consolidated Statements of Financial Position, all of which are located in the United States, are reviewed by the CODM for purposes of decision making. The accounting policies of our management operations segment are the same as those described in Note 2, "Significant Accounting Policies".

The following table presents our management operations segment revenue, significant segment expenses regularly provided to the CODM, and net income for the years ended December 31:

(in thousands)	2025		2024		2023
Management fee revenue	$	3,205,864	$	2,962,429	$	2,505,742
Administrative services reimbursement revenue	836,639		806,336		737,139
Service agreement revenue	24,755		26,350		26,059
Total operating revenue	4,067,258		3,795,115		3,268,940
Commissions	1,777,043		1,601,401		1,348,530
Underwriting and policy processing	204,245		199,485		181,003
Information technology	239,789		215,488		216,746
Sales and advertising	66,475		66,480		58,905
Customer service	46,538		43,045		34,391
Administrative and other	179,345		186,425		171,970
Cost of operations - policy issuance and renewal services	2,513,435		2,312,324		2,011,545
Cost of operations - administrative services	836,639		806,336		737,139
Total operating expenses (1)	3,350,074		3,118,660		2,748,684
Operating income	717,184		676,455		520,256
Total investment income	84,861		69,260		28,968
Other income	8,558		11,564		12,712
Contribution to charitable foundation	(100,000)		—		—
Income tax expense	151,268		156,965		115,875
Net income	$	559,335	$	600,314	$	446,061

(1)    See Note 8, "Fixed Assets", for management operations segment depreciation and amortization expense included primarily in "Total operating expenses", as reported on our Consolidated Statements of Operations. See our Consolidated Statements of Cash Flows for segment

expenditures on fixed asset additions.