Safepoint is a specialty homeowners and commercial insurance underwriter that manages all aspects of the insurance value chain in a capital efficient manner by leveraging a majority fee-based servicing platform. Safepoint is focused on delivering insurance in coastal markets such as Florida and Louisiana, as well as in other U.S. markets. We are a founder-led company that is majority-owned by its management, which we believe creates a strong alignment between the management team and our shareholders. Our management team consists of highly experienced insurance professionals with a shared vision to solve problems for stakeholders in underserved or dislocated property insurance markets. Our business strategy, which has been developed and tested since our founding in 2013, combines sophisticated actuarial analytics, risk management expertise and a low-cost operating model designed to provide better value to our customers across market cycles. We have an innovative organizational structure that combines the benefits of policyholder-owned reciprocal insurance exchanges that we manage as an attorney-in-fact in exchange for a service fee, with our wholly owned insurance company, Safepoint Insurance. As of December 31, 2025, the majority of our in-force premium, which was equal to $1,034.0 million as of such date, was originally placed with the Reciprocal Exchanges, and only 11% of our in-force premium as of such date was originally placed with Safepoint Insurance. We have prudently grown our business over the last 12 years, while producing attractive risk-adjusted returns, which we believe validates the strength of our business model and risk selection. Many of Safepoint’s competitors have not had the staying power to continue writing business in Florida, Louisiana and other U.S. Gulf Coast states, as they have lacked a disciplined approach to underwriting, risk management and expense control. We have assumed policies from other private insurers and depopulation programs of state-sponsored insurers, as well as from new business sales from our broad network of independent agents. We are led by an entrepreneurial executive management team, with a focus on data-driven underwriting and prudent risk management through our robust and comprehensive reinsurance strategy. Our founder and chief executive officer, David Flitman, is a credentialed actuary who has held executive roles in large, global insurance and reinsurance companies during his more than 30 years of industry experience. The executive management team’s actuarial and reinsurance focus and expertise form the basis of our business strategy, and meaningfully influence all aspects of our operations and culture. Our approach to insurance underwriting integrates pricing and cost drivers into our products at a policy level to ensure optimal risk-adjusted portfolio profitability. In order to determine whether an underwriting opportunity is attractive to us, we focus on evaluating the following three questions: • Why does Safepoint have this opportunity and why are we best positioned to capitalize on it? Insurance is very competitive and commoditized. Focusing on certain overlooked segments increases our ability to effectively execute in the market. • Do we have the data to properly evaluate the risks? We must have sufficient data, proper tools, and the requisite skills to evaluate, price, and hedge the risk. • Can we make our margins across a wide range of potential scenarios? By focusing on specialized, less competitive segments and not compromising on our risk evaluation and thresholds, we are able to achieve attractive profitability. We use a highly granular and integrated approach to analyze the profitability of policies at the time of underwriting on an individual risk basis through the allocation of reinsurance costs and other loss and expense assumptions. Safepoint’s underwriting and risk management strategy is supported by our use of both proprietary and vendor modeling tools. We actively monitor our portfolio and employ back-testing of past events to effectively evaluate blind spots and discover “unknown unknowns” and systematic parameter risks. One of the critical elements of this approach is to ingest and catalog detailed information relating to the individual risk to assess and reveal insights on the overall portfolio. Safepoint believes that the richness of our data and analytics serves as the foundation for our ability to consistently provide our agents and customers with fair pricing for dislocated, underserved and catastrophe prone areas. A key pillar of our business strategy is risk hedging, where we continuously reassess and syndicate insurance risk to various capital providers, depending on market conditions, terms, availability and pricing. We believe our sustainable risk partnerships are emblematic of our prudent approach to risk management and support our ability to grow in existing and new markets. Safepoint employs catastrophe bonds, industry loss warranties and traditional reinsurance, well in excess of regulatory and rating agency requirements for purchasing protection, to conservatively hedge risk to ensure superior claims-paying resources. Safepoint typically purchases excess of loss reinsurance above a 1-in-250 year probable maximum loss and has never had an event or cluster of events exceed even half of its available reinsurance limit in a given accident year. We have sustained consistent support since inception from our reinsurance relationships and catastrophe bond investors. As of March 31, 2026, all of our reinsurance was purchased from reinsurers rated “A-” or better by AM Best or from capital markets-linked reinsurers, including fully collateralized reinsurers, and through the use of catastrophe bonds. We believe that, as a result of our strategy of deliberate and profitable growth, we are well positioned to take advantage of increasingly dislocated property insurance markets in the United States. We have organically increased gross written premiums over the five-year period ending December 31, 2025 from $188 million during the year ended December 31, 2021 to $927.2 million during the year ended December 31, 2025. During that period, we have transitioned from a risk-bearing balance sheet-owned insurance model to a predominantly insurance services model, whereby we receive fee income from the policyholder-owned Reciprocal Exchanges and third-party MGAs and insurance companies. For the years ended December 31, 2025 and December 31, 2024, we had net income attributable to controlling interest of $157.2 million and $41.3 million, respectively, income before income taxes for the Insurance Services segment of $114.9 million and $46.5 million, respectively, and income before income taxes for the Risk-Bearing Entities segment of $134.3 million and $49.9 million, respectively. For the three months ended March 31, 2026 and March 31, 2025, respectively, we had net income attributable to controlling interest of $48.0 million and $16.6 million, respectively, income before income taxes for the Insurance Services segment of $23.3 million and $23.2 million, respectively, and income before income taxes for the Risk-Bearing Entities segment of $42.8 million and $13.2 million, respectively. We seek to continuously grow our business by increasing our market penetration, including in new geographies, and by developing new products which harness our core competencies where we believe we can generate attractive risk adjusted returns. We recently added E&S products and capabilities which we believe unlocks a larger, more nationwide footprint. Additionally, we believe our fee-based reciprocal exchange structure provides us with a meaningful competitive advantage relative to stock companies, particularly as pricing markets soften. The Reciprocal Exchanges are managed to optimize underwriting capital, as opposed to stock companies, which often focus on short term profits. The reciprocal exchanges’ capital is partly supported by annual subscriber capital contributions equal to 10% of premiums. This capital subsidy and structure allows us the flexibility to provide competitive pricing to our policyholders across market cycles, while sustaining the requisite capital, and providing sustainable, recurring fee income. The other elements of our plan to continue to grow earnings include: (a) expansion of our distribution capabilities via new channels, including wholesalers and third-party MGAs; (b) optimization of our reinsurance program based on our fast-growing capital base; and (c) expansion of our third party service relations with MGAs and carriers in exchange for fees. Our principal business office is located in Tampa, Florida.
