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- **Policy Growth Acceleration**: 49% YoY increase in total policies to 406,000, driven by 25% YoY rise in voluntary policies.
- **Profitability Milestone**: Combined ratio improved to 79% (vs. 94% YoY), with book value per share up 28.2% to $16.14.
- **Market Expansion Success**: 7.9% of portfolio in middle-aged homes, with 25% addressable market potential. Commercial HOA product launched in October.
- **Catastrophe Resilience**: Favorable non-cat loss ratio of 17.4% and optimistic outlook for loss-free 2025 season.
- **Strategic Reinsurance Shift**: Gradual reduction of quota share retention to keep more premium on balance sheet, aligning with long-term profitability goals.

**CEO Summary Section**
- **Policy Growth**: Total policies in force reached 406,000 (up 49% YoY), driven by 78,000 new voluntary policies year-to-date (25% YoY increase). Voluntary retention rate was 82.8%, leading to 19% YoY growth in voluntary policies.
- **Market Expansion**: Expanded into middle-aged homes (32,202 policies, 7.9% of portfolio) and launched commercial residential product in October. North Carolina expansion begins in December.
- **Financial Health**: Non-cat loss ratio of 17.4% (gross) aligns with expectations. Catastrophe losses remain favorable, with potential for a loss-free 2025 season.
- **Strategic Focus**: Emphasized disciplined underwriting, expense control, and reinsurance optimization to maintain profitability.

**CFO Financial Commentary**
- **Topline Growth**: Gross premiums written $239M (49% YoY), net premiums earned $52M (28% YoY). Gross premiums earned $222M (34% YoY).
- **Profitability**: Combined ratio 79% (vs. 94% YoY). Adjusted net income $14M ($0.71 EPS). Book value per share $16.14 (28.2% YoY growth).
- **Expense Efficiency**: Policy acquisition expenses $6.2M (20% YoY decline). Expense ratio 25% (vs. 35% YoY). 
- **Reinsurance**: Ceded premiums $170M (36% YoY). Reducing quota share retention gradually to keep more premium on balance sheet.

**Q&A Key Highlights**
- **Loss Ratio Volatility**: Underlying loss ratio 50% Q3 (vs. 36% YoY) due to quota share reinsurance structure. Expect 17-18% gross non-cat loss ratio in 2026, with potential for improvement if catastrophe losses remain benign.
- **Political Risks**: Legislative reforms protecting underwriting standards are solid, with 2/3 of state leadership committed to maintaining reforms.
- **Reinsurance Strategy**: Catastrophe reinsurance market favorable post-loss-free year. Plan to reduce quota share retention in 2026, but exact amount TBD.
- **Market Penetration**: Middle-aged homes represent 25% of state addressable market, with current penetration at 7.9%. Commercial HOA product targeting underserved market with competitive pricing.


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