0001104659-26-048474
SEC filingRevenue was $423.9M (4.0%) Net Income was $54.9M (-13.2%) Eps was $0.60 (-11.8%) Free Cash Flow was $41.8M
Net income declined 13.2% to $54.9M, and diluted EPS fell 11.8% to $0.60. The decrease reflects headwinds in underwriting income, including higher pretax catastrophe losses and reduced favorable prior-year reserve development. While the magnitude of those components was removed during audit, their directional impact is affirmed in the business context as drivers of the net income variance.
The effective tax rate decreased in Q1 2026, primarily due to higher levels of tax credit utilization — a qualitative explanation directly sourced from Item 2 of the Management Discussion. Separately, investment income increased, attributable to both higher reinvestment rates and a larger average asset base compared to Q1 2025. These two factors jointly supported earnings resilience despite underwriting pressure.