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Management attributed the significant 2025 net income growth to a multi-year ‘intentional and disciplined’ reshaping of the business foundation, moving away from market cycle reliance toward true underwriting profit.
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Performance was driven by achieving rate adequacy in over 90% of operating geographies, allowing the company to reopen previously paused markets for new business.
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The company successfully navigated $31.8 million in net pretax losses from California wildfires, which management cited as a highlight of the firm’s significant earnings power.
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Strategic capital allocation shifted toward products and regions with the strongest returns, involving hard choices to exit underpriced policies and align with professional distribution networks.
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Operational improvements included deeper integration of data-driven analytics and AI to sharpen risk selection and enhance claims capabilities while maintaining regulatory compliance.
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Management highlighted the benefits of Florida tort reform, noting that reduced litigation has lowered industry loss expectations for recent hurricanes like Milton, benefiting both the company and its reinsurers.
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Revenue growth is expected to accelerate through 2026 as the company ramps up new business efforts, supported by a 60% increase in new business premium production in Q4 2025.
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The company plans to enter the Texas market later in 2026 on an excess and surplus (E&S) basis, focusing on tier-one and tier-two geographies to further geographic diversification.
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Management expressed optimism for improved reinsurance pricing in 2026 due to increased capacity in traditional and ILS markets and a favorable lack of recent catastrophe losses.
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The combined ratio is expected to remain favorable for the next couple of years, though management anticipates it may eventually ‘tweak up’ as rates stabilize and market competition normalizes.
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Investment income is projected to continue an upward trajectory as the company extends duration on the yield curve and benefits from increasing cash flows.
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Tangible book value per share grew 72.5% year-over-year to $16.39, driven by strong net income and a reduction in unrealized losses on fixed income securities.
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A new $25 million share repurchase plan was established through 2026, with management indicating they may seek further board authorization if shares remain undervalued.
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The company reduced its net quota share program at NBIC, which will result in higher net earned premiums but also higher policy acquisition costs due to lower ceding commissions.
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Statutory surplus increased by $106.9 million to $392.6 million, which management stated provides ample capacity to support anticipated organic growth in 2026.
