
	Three Months Ended September 30, 2024
(In thousands)	Specialty P&C		Workers' Compensation Insurance		Segregated Portfolio Cell Reinsurance		Corporate		Inter-segment Eliminations		Consolidated
Net premiums earned	$	188,704	$	41,829	$	12,627	$	—	$	—	$	243,160
Net investment income	—		—		1,009		36,263		—		37,272
Equity in earnings (loss) of unconsolidated subsidiaries	—		—		—		4,767		—		4,767
Net investment gains (losses)	—		—		599		1,653		—		2,252
Other income (expense)(1)	982		537		1		(2,747)		(971)		(2,198)
Net losses and loss adjustment expenses	(136,337)		(32,193)		(7,801)		—		—		(176,331)
Underwriting, policy acquisition and operating expenses(1)	(51,492)		(14,383)		(4,143)		(11,342)		971		(80,389)
SPC U.S. federal income tax benefit (expense)(2)	—		—		(377)		—		—		(377)
SPC dividend (expense) income	—		—		(1,360)		—		—		(1,360)
Interest expense	—		—		—		(5,698)		—		(5,698)
Income tax benefit (expense)	—		—		—		(4,657)		—		(4,657)
Segment results	$	1,857	$	(4,210)	$	555	$	18,239	$	—	16,441








Net income (loss)											$	16,441
Significant non-cash items:
Depreciation and amortization, net of accretion	$	2,065	$	1,270	$	(671)	$	1,216	$	—	$	3,880


	Nine Months Ended September 30, 2024
(In thousands)	Specialty P&C		Workers' Compensation Insurance		Segregated Portfolio Cell Reinsurance		Corporate		Inter-segment Eliminations		Consolidated
Net premiums earned	$	562,137	$	124,692	$	40,347	$	—	$	—	$	727,176
Net investment income	—		—		2,687		105,040		—		107,727
Equity in earnings (loss) of unconsolidated subsidiaries	—		—		—		16,383		—		16,383
Net investment gains (losses)	—		—		2,327		(3,921)		—		(1,594)
Other income (expense)(1)	3,359		1,483		1		2,281		(3,252)		3,872
Net losses and loss adjustment expenses	(434,564)		(95,980)		(26,481)		—		—		(557,025)
Underwriting, policy acquisition and operating expenses(1)	(153,415)		(44,008)		(14,105)		(29,812)		3,252		(238,088)
SPC U.S. federal income tax benefit (expense)(2)	—		—		(1,043)		—		—		(1,043)
SPC dividend (expense) income	—		—		(2,479)		—		—		(2,479)
Interest expense	—		—		—		(17,004)		—		(17,004)
Income tax benefit (expense)	—		—		—		(7,837)		—		(7,837)
Segment results	$	(22,483)	$	(13,813)	$	1,254	$	65,130	$	—	30,088
Reconciliation of segments to consolidated results:

Contingent Consideration(3)											6,740


Transaction-related costs, net(4)											(253)
Net income (loss)											$	36,575
Significant non-cash items:

Depreciation and amortization, net of accretion	$	6,784	$	3,747	$	(1,661)	$	4,775	$	—	$	13,645


	Three Months Ended September 30, 2023
(In thousands)	Specialty P&C		Workers' Compensation Insurance		Segregated Portfolio Cell Reinsurance		Corporate		Inter-segment Eliminations		Consolidated
Net premiums earned	$	195,772	$	39,885	$	6,763	$	—	$	—	$	242,420
Net investment income	—		—		601		32,153		—		32,754
Equity in earnings (loss) of unconsolidated subsidiaries	—		—		—		(61)		—		(61)
Net investment gains (losses)	—		—		(525)		(3,677)		—		(4,202)
Other income (expense)(1)	1,089		333		2		2,847		(935)		3,336
Net losses and loss adjustment expenses	(162,677)		(41,208)		(5,006)		—		—		(208,891)
Underwriting, policy acquisition and operating expenses(1)	(49,395)		(13,542)		(3,668)		(8,344)		935		(74,014)
SPC U.S. federal income tax benefit (expense)(2)	—		—		175		—		—		175
SPC dividend (expense) income	—		—		2,518		—		—		2,518
Interest expense	—		—		—		(5,514)		—		(5,514)
Income tax benefit (expense)	—		—		—		4,655		—		4,655
Segment results	$	(15,211)	$	(14,532)	$	860	$	22,059	$	—	(6,824)
Reconciliation of segments to consolidated results:
Goodwill impairment											(44,110)

Contingent Consideration (3)											1,500

Net income (loss)											$	(49,434)
Significant non-cash items:

Depreciation and amortization, net of accretion	$	2,728	$	851	$	300	$	2,575	$	—	$	6,454
Goodwill impairment											$	44,110


	Nine Months Ended September 30, 2023
(In thousands)	Specialty P&C		Workers' Compensation Insurance		Segregated Portfolio Cell Reinsurance		Corporate		Inter-segment Eliminations		Consolidated
Net premiums earned	$	562,206	$	121,706	$	46,156	$	—	$	—	$	730,068
Net investment income	—		—		1,625		93,089		—		94,714
Equity in earnings (loss) of unconsolidated subsidiaries	—		—		—		5,450		—		5,450
Net investment gains (losses)	—		—		1,830		(3,174)		—		(1,344)
Other income (expense)(1)	3,106		1,565		3		5,347		(3,157)		6,864
Net losses and loss adjustment expenses	(476,187)		(101,813)		(27,245)		—		—		(605,245)
Underwriting, policy acquisition and operating expenses(1)	(140,949)		(40,923)		(15,241)		(24,823)		3,157		(218,779)
SPC U.S. federal income tax benefit (expense)(2)	—		—		(1,351)		—		—		(1,351)
SPC dividend (expense) income	—		—		(3,171)		—		—		(3,171)
Interest expense	—		—		—		(16,478)		—		(16,478)
Income tax benefit (expense)	—		—		—		3,901		—		3,901
Segment results	$	(51,824)	$	(19,465)	$	2,606	$	63,312	$	—	(5,371)
Reconciliation of segments to consolidated results:

Goodwill impairment											(44,110)
Contingent Consideration(3)											4,500
Net income (loss)											$	(44,981)
Significant non-cash items:

Depreciation and amortization, net of accretion	$	7,927	$	2,573	$	(187)	$	9,772	$	—	$	20,085
Goodwill impairment											$	44,110

(1) Includes certain fees for services provided by the Workers' Compensation Insurance segment to the SPCs at Inova Re and Eastern Re which are recorded as expenses within the Segregated Portfolio Cell Reinsurance segment and as other income within the Workers' Compensation Insurance segment. These fees are primarily SPC rental fees and are eliminated between segments in consolidation.
(2) Represents the provision for U.S. federal income taxes for SPCs at Inova Re, which have elected to be taxed as a U.S. corporation under Section 953(d) of the Internal Revenue Code. U.S. federal income taxes are included in the total SPC net results and are paid by the individual SPCs.

(3) Represents the change in the fair value of contingent consideration issued in connection with the NORCAL acquisition and, for the nine months ended September 30, 2024, the reversal of a nominal amount of associated contingent investment banker fees accrued during purchase accounting, all of which are included as a component of consolidated net investment gains (losses) on the Condensed Consolidated Statements of Income and Comprehensive Income. See further discussion on the contingent consideration in Note 2.

(4) Represents actuarial consulting fees, after-tax, paid in connection with the final determination of contingent consideration associated with the acquisition of NORCAL. For the nine months ended September 30, 2024, pre-tax transaction-related costs of approximately $0.3 million were included as a component of consolidated operating expense and the associated nominal income tax benefit was included as a component of consolidated income tax benefit (expense) on the Condensed Consolidated Statements of Income and Comprehensive Income.