Orion180 Insurance Group Q3 2026 Earnings Results & Report

Orion180 Insurance Group EPS Results

• Actual EPS: $0.14
• Consensus EPS: $0.09
• Beat/Miss: Beat by +$0.05
• One Year Ago EPS: N/A

Orion180 Insurance Group Revenue Results

• Actual Revenue: $53.90 million
• Expected Revenue: $43.71 million
• Beat/Miss: Beat by +$10.19 million
• YoY Revenue Growth: N/A

Orion180 Insurance Group (NASDAQ:OIG), Inc. is a technology-driven property and casualty insurance company focused primarily on personal lines coverage. Through its insurance subsidiaries, the company provides products designed to protect residential properties and personal belongings, including homeowners, renters and related property insurance offerings.

The company uses proprietary technology and data analytics to support policy underwriting, pricing, distribution and claims management. Orion180 distributes its products through independent insurance agents and other channels, with an emphasis on simplifying the insurance purchasing and servicing experience for customers and agents.

Founded in 2016, Orion180 serves customers in selected U.S. markets and has expanded its operations across multiple states. Its business is concentrated in residential property insurance, with product availability and coverage varying by state and regulatory approval.

Orion180 Insurance Group Q3 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Third-quarter growth was strong: managed premiums written rose 60% to $204 million, premiums in force increased 72% to $678 million, revenue grew 58% to $53.9 million, and adjusted EBITDA advanced 65% to $25.1 million.
• Positive Sentiment: Underwriting results improved, with the combined ratio falling to 68.8% from 95.8% and the net loss ratio improving to 42.8%. The gross loss ratio rose to 32.8% from 27.3%, which management attributed in part to seasonal storm activity.
• Positive Sentiment: The company is pursuing further growth through expansion in newer states, including Colorado, and new offerings such as FlexLuxe and its landlord product; management also cited technology, product customization, and agent relationships as differentiators.
• Positive Sentiment: The September IPO generated approximately $224 million in net proceeds, which Orion180 used to reduce debt; it ended the quarter with $166 million in cash and cash equivalents and $56 million of debt, and said it intends to pay down debt using excess cash.
• Negative Sentiment: Policy retention eased to 87.6% from 89.6%, and management acknowledged some pricing pressure and near-term macro uncertainty, though it said these had not significantly affected results through the quarter.

Presentation

[Operator]

Note, this conference is being recorded. I will now turn the call over to Orion180. You may begin.

[Company Representative at Orion180]

Thank you, operator, and good afternoon, everyone. Welcome to Orion180's third quarter 2026 earnings call. With us today are your hosts, Ken Gregg, Founder, Chairman, and Chief Executive Officer, and Christoph Birchler, Chief Financial Officer. By now, everyone should have access to our earnings release, which was issued prior to this call and may also be found on our website at ir.orion180.com. Before we begin our formal remarks, I need to remind everyone that part of our discussion today may include forward-looking statements, which are based on the expectations, estimates, and projections of management as of today. These forward-looking statements are subject to various assumptions, risks, uncertainties, and other factors that are difficult to predict and which could cause actual results to differ materially from those expressed or implied in the forward-looking statements.

[Company Representative at Orion180]

These statements are not guarantees of future performance. Therefore, undue reliance should not be placed upon them. We refer all of you to the risk factors in our prospectus and in our Form 10-Q for the period ended September 30, 2026, and to our other filings with the SEC for a more detailed discussion of the risks and uncertainties that could impact our future operating results and financial condition. We disclaim any intention or obligation to update or revise any forward-looking statements, except to the extent required by applicable law. In addition, today's discussion includes certain non-GAAP financial measures, including consolidated Adjusted EBITDA. These measures should be read alongside the GAAP references in our financial statements and reconciliations to the most directly comparable GAAP measures included in our earnings release.

[Company Representative at Orion180]

This call is being webcast, and a replay will be available on the Investor Relations section of our website for one year after the call. You can reach our investor relations team at ir@orion180.com. With that, I'd like to turn the call over to Founder, Chairman, and Chief Executive Officer, Ken Gregg.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Thank you, and welcome to our third quarter 2026 earnings call, our first call as a public company. We are excited to be speaking with you today, and I want to thank everyone for joining us and for your interest in Orion180. Let me start with the quarter. We delivered an excellent third quarter across all of our key metrics. Managed premiums written grew by 60% year-over-year to $204 million. Managed premiums in force as of September 30th, 2026, grew 72% from last year's period end to $678 million. Consolidated revenue rose 58% from the prior year period to $54 million. Net income increased 32% from the prior year period to $11 million, and consolidated Adjusted EBITDA grew 65% year-over-year to $25 million. In September, we completed our initial public offering, a major milestone in our company's history.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Our CFO, Christoph Birchler, will walk you through the details of our third quarter results in a few minutes. Because this is our first call, for those of you new to the Orion180 story, I'd like to spend a few minutes on who we are, how we win, and where we are going. Orion180 is a founder-led, technology-focused, capital-efficient specialty insurance group with a clear vision: to become the premier provider of specialty property insurance solutions. We began operations in April of 2018 with a simple conviction, that homeowners insurance could be underwritten better, priced faster, and serviced with far more care by leveraging today's technology, as opposed to utilizing legacy systems that are typically slow to evolve. When I founded the company over eight years ago, I had a vision of doing things differently. I didn't focus on finding a problem, but instead on seeing an opportunity.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

I felt I could build a company not focused on price or profit, but focused on the customer experience and providing value for others throughout the entire value chain for all stakeholders, utilizing technology as a differentiator and value proposition, seeing technology as an asset, not as an expense, and utilizing it to drive product innovation as well as operational efficiencies, focusing on solutions that serve customers, agents, and reinsurance partners, as well as the company itself. I built the company on the focus of how something can be done rather than accepting why something can't be done. We are proud to have built this business organically, with no institutional equity funding.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

In roughly eight years, we have become the second-largest E&S homeowners insurance provider in the United States by direct written premiums, with a presence in 14 states and distribution through a network of approximately 17,000 active independent agents as of September 30th, 2026. Our growth has been rapid and consistent while we've remained appropriately disciplined with respect to our underwriting. From less than $2 million of managed premium in 2018, we have grown to well over $650 million on a trailing 12-month basis. We have expanded our footprint from two states to 14 and expanded our reinsurance panel from four to more than 50 global partners. We've achieved this remarkable growth while delivering an underwriting performance that materially outperforms the industry. How we structured the company is what sets us apart.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

We set out to capture as much of the insurance value chain as possible and designed the company to maximize our diversified revenue streams, optimize margins, and be capital efficient. Orion180 has two segments. Our service segment includes our managing general agency, MGA, our in-house claims company, CITON Claims Solutions, and our technology company, OTX. It is fee-based, high-margin, and notably, it generates the majority of our consolidated revenue. Meanwhile, our underwriting segment includes our two in-house fronting carriers and our Bermuda captive. We earn commissions and fees on every dollar of premium we write, while we only retain 15% of the exposure to remain aligned with our partners. The other 85% is ceded to an 11-member panel of third-party unrelated global reinsurance capacity providers, up from 10 members at the same time last year.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

We've also put in place a robust reinsurance program that covers our full portfolio, with an additional 40+ reinsurance providers ensuring that we have significant catastrophe protection to effectively minimize the impact of any major event. As a result, our maximum peril event claims obligation for our in-house fronting carriers under our current reinsurance program is only $1 million, or less than a half of 1% of our managed premiums in force as of September 30th. At the same time, our best-in-class underwriting results have resulted in industry-leading profits for our reinsurance partners over the years. Because the OIG group of companies includes our own in-house fronting carriers, claims entity, and technology company, we participate in the full economics across the entire value chain, as opposed to typical MGAs that only earn commissions and policy fees on the premium produced.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

This differentiated structure not only monetizes, but optimizes the insurance experience. We are confident this model will only become exceedingly more difficult to replicate over time. We are well-positioned for continued long-term growth, driven by four key points. First, our differentiated product lineup. FLEX, our unique flagship product, was designed to give consumers choice. It gives customers the flexibility to create a policy that fits their individual risk tolerance preferences. Insurance can choose from numerous base peril combinations, along with customizable deductibles and features such as a two-year locked-in rate or copay options. We price it in real time and bind it in minutes. We believe it is a truly one-of-a-kind customized homeowners offering. Building on FLEX, we recently introduced FlexLuxe, a new product designed to meet the differentiating demands of our homeowners with high-value homes.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

FlexLuxe expands our dwelling coverage limit up to $5 million with total insured value up to $7.5 million. It recently launched in Florida and Texas, with plans to expand throughout the current geographical footprint and potential additional states. Rounding out our FLEX lineup, our Dwelling Protection, or DP, landlord program launched in the spring of this year and is now live in nine states. Beyond our FLEX suite, we also offer traditional homeowner policies for catastrophic and non-catastrophic exposed geographies. Rounding out our current offerings, we continue to grow our residential private flood coverage offered in 11 states. Secondly, our unique proprietary MY180 technology platform was purpose-built in-house from day one. It is a complete end-to-end platform that is central to everything we do. We are constantly innovating and enhancing the platform's capabilities.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

This provides us with significant advantages in speed to market, advanced analytics, flexibility to rapidly respond to market demands, and comprehensive insight to the business on a real-time basis. It is a core differentiator and paramount to our success, and why 22% of the entire Orion180 team are strictly focused on technology development and delivery. For customers, MY180 means receiving precise pricing, tailored coverage, a self-service portal, and a seamless and pleasurable end-to-end experience. For agents, MY180 means quote-to-bind in minutes, real-time coverage adjustments, efficient onboarding, and best-in-class individual analytics to manage their book and performance. For our reinsurance partners, MY180 means superior underwriting results, key concentration loss analytics, and real-time insight to their exposure. Our third driver of growth is our underwriting discipline.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Our average direct loss ratio since inception in 2018 through the end of 2025 was 36% versus roughly 68% for the industry, while delivering significant double-digit growth year after year. We are able to deliver these industry-leading results through the utilization of our differentiated data analytics, constant monitoring of frequency and severity trends, and our ability to optimize catastrophe exposure management. When we see an unfavorable pattern emerge, we course correct in real time. Our portfolio managers are continuously optimizing our rating algorithms and coverages. As an example, in our first 11 months in Texas, we made nine product updates, which produced $91 million of new written premium with a 25% loss ratio over that same time period in the state, illustrating our dynamic product management and the power of our platform.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Every quote, policy, and claim we add results in a more informed next decision on changes we make, leading to higher retention, better agent platform utilization, stronger outcomes, and constantly strengthening our data advantage. Finally, our distribution and service. We believe in the independent agent channel. We value our agents, and they choose us because of our ease of doing business, commitment to provide competitive solutions, and commitment to being there through different market cycles. Importantly, we have a highly diversified distribution network of agents with no single agency branch representing more than 6% of our written premiums. We also handle claims in-house through our related claims company, CITON Claims Solutions. Owning our claims company allows the group to capture the profits that would have gone to others for the handling of our claims.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Furthermore, it assures that the claims experience for our insureds and agents meets our expectations, and as importantly, the policy terms are adhered to in the adjusting of the claim. The results are evident throughout, with an average of 22 days to close an open claim, industry-leading loss ratios, and our exceptional customer reviews. Our emphasis on putting the customer at the center of everything we do is core to our culture and mission. The result is a 4.8 out of five star rating on over 5,000 Google reviews. All of this strengthens our relationships with agents and policyholders while capturing the economics inside the group. Our market opportunities are significant and growing. The United States. homeowners market is roughly $192 billion and has grown at about 70% from 2020 to 2025.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

We hold about a 2% share on average in the 14 states where we operate today, and less than 1/2 of 1% nationally in the broader homeowners market. In short, there is ample room to continue our strong growth driven by our product suite, technology, and customer experience. We are well-positioned to further expand our market share with a multi-pronged strategy that will continue to increase long-term shareholder value. First, we are strengthening our market presence in our existing geographical footprint, where we expect to continue growing. Leading the way will be the three largest markets we entered in 2025, Texas, Florida, and California, the three most populous states in the country, while strategically exploring to expand into new states. We also recently expanded in Colorado over the summer and is already contributing to the current strong growth. Second, we continue to expand our product offerings.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

In 2026, building on top of the three states we entered in 2025 and our existing homeowners and flood programs, we launched the DP Landlord in April and FlexLuxe in October. Finally, we expect to expand selectively into adjacent products and markets for future growth opportunities. Underpinning these growth opportunities is the scalability of our business. We will always invest thoughtfully in our growth capabilities and our proprietary technology to reinforce our competitive advantages. This allows us to quickly and confidently enter new markets and introduce new products. We are well-positioned to significantly grow our managed premiums and revenue while ultimately optimizing margins over time. This will continue to drive long-term value for our shareholders. We could not be more excited for the future of Orion180, and with that, I will turn the call over to Christoph Birchler, our CFO, to take you through the quarter in more detail.

[Christoph Birchler, CFO at Orion180]

Thank you, Ken, and good afternoon, everyone. Let us get right into our third quarter results. Managed premiums written had another strong quarter of growth at 60% to $204 million compared to $127 million in the prior year-end period, while new business premiums written also grew 62% to $102 million from $63 million in the prior year period. Managed premiums in force at September 30th, 2026, had a significant increase to $678 million, up 72% from $394 million at the same time one year ago. Policy retention remains strong at 87.6% compared with 89.6% in the prior year period, which is mostly attributable to underwriting actions focused on profitability and retaining desirable risks.

[Christoph Birchler, CFO at Orion180]

On a consolidated basis, total revenues increased to $53.9 million, up 58% year-over-year from $34.1 million, driven by a 52% increase in net premiums earned and a 70% increase in policy fee income. Consolidated Adjusted EBITDA had strong growth of 65% to $25.1 million, and our Adjusted EBITDA margin also expanded from 44.7% to 46.6%. Our growth results continue as our net income for the quarter grew to $11.5 million, up 32% from the prior year period. Net income in the quarter included $2.8 million of non-recurring expenses related to our IPO and loss on debt extinguishment. Turning to our two segments, starting with services. Commission and fee revenue grew 64% year-over-year to $75.1 million. Within that, policy fee income grew 70%, while commission income grew 57%.

[Christoph Birchler, CFO at Orion180]

Services Adjusted EBITDA grew 16% from the prior year period to $18.6 million. Our underwriting segment also had a strong quarter. Net premiums earned expanded to $29.9 million, up 52% from the prior year period. We continued to produce strong underwriting results with a gross loss ratio of only 32.8% compared to 27.3% a year ago, but still comfortably below our 36% average since inception. Furthermore, our net loss ratio improved from 47.5% in the prior year period to 42.8%, and our expense ratio significantly improved from 48.3% in the prior year period to 26%. As a result, our combined ratio decreased 27 points from 95.8% in the prior year period to 68.8%. Underwriting Adjusted EBITDA was $11.5 million, an over 425% increase from $2.7 million in the prior year period.

[Christoph Birchler, CFO at Orion180]

We ended the quarter in a strong position with cash and cash equivalents of $166 million and debt of $56 million. In September, we sold 20 million shares of Class A common stock in our initial public offering, generating proceeds net of underwriting expenses of approximately $224 million, which we used to pay down outstanding debt and strengthening our overall financial position. With that, I'll turn the call back over to Ken.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Thanks, Christoph. Before opening up for your questions, let me close with a few thoughts. This was another strong quarter for Orion180 and a milestone one. We continue our best-in-class results with our year-over-year production managed premiums written growing at 60%, managed premiums in force increasing by 72%, consolidated total revenues rising 58%, Adjusted EBITDA expanding 65%, enhancing our margin year-over-year, and further strengthening our balance sheet through our IPO. Going forward, while we plan for continued near-term uncertainty in the macro economy and mortgage environment, we expect to continue outperforming in our market. Our business model is built to be flexible and sustainable through every type of market cycle. What excites me most is what lies ahead and the incredible opportunity we have to succeed now over the long term. We hold less than 1/2 of 1% of the $192 billion in expanded homeowners market.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Our MY180 platform is built for scale. We have the discipline to underwrite profitably, a capital-efficient model that turns growth into cash flow, and a team that is constantly innovating. Our vision has always been consistent, to be the premier provider of specialty property insurance solutions. We will get there by doing what we have done over the past eight years, innovating relentlessly, continually investing in our tech to further enhance our competitive advantage, underwriting with discipline, offering the best solutions to our customers, and being the best partner to our agents and reinsurers. By doing that, we know we will continue to drive increased long-term value for all of our shareholders. I want to thank our customers, employees, agents, reinsurance partners, and new shareholders for their support. We are very excited for the future of Orion180. Operator, we are now ready to take questions.

[Operator]

Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question comes from Matt Carletti with JMP. Please go ahead.

[Matt Carletti, Analyst at JMP]

Hey, thanks. Good afternoon. Ken, I was hoping maybe you could peel the onion back a little bit on, over the past, like, call it, 12 to 18 months, you've entered three pretty big states, Texas, Florida, California. And maybe just give us a little color on kind of how those early months and quarters are going versus kind of either your expectations or maybe how some of your other more mature states kind of came out of the gates.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Thank you, Matt. Appreciate the question, and thank you for joining us on the call. Looking at the three large states, California, Texas, and Florida, I think when we look at those states and how we're performing, they're doing as we expected them to do. We're garnering the market share, competing very well, and for us, they're doing what we always anticipated, right? It's allowing us to capture and participate in the large markets. From there, we are expecting them to continue driving the growth going forward. From our standpoint, we're very pleased with that, and it just continues along what we've done in the past. It's a little bit of the same of do what we've done in the past. It's the same over, repeating the process.

[Matt Carletti, Analyst at JMP]

Gotcha. Then kind of a follow-on there. You mentioned recently starting in Colorado. If I look at kind of the other large kind of homeowners E&S states, and I guess states with high-value homes too, you see places like Illinois, New Jersey on that list. Are those logical places to expect to see you next, or are there reasons why you might not look to go in those markets?

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Another good question. I appreciate it. Colorado is actually trending along the same lines of what we have done in all three of the other large states. It is starting to contribute and pick up and garner the market share or get the traction that we have had in the other states in the same trajectory. We are seeing it contribute to the growth already, and we are going to expect to see it continue to grow along the same lines on the trajectory. As to the other part of the question about additional states, we will do, and we are looking at the prospect of the expansion to the additional states if it fits essentially our appetite, and it has to fit across the board. We look at a number of things, as we have mentioned in the past.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

We look at the environment, the market opportunity, and will our solutions fit the market needs. I think we are going to continue looking on a very essentially measured, disciplined way to see if the market is the right fit for us in any of those additional states.

[Matt Carletti, Analyst at JMP]

Great. Thank you very much for the answers. Appreciate it.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Thank you.

[Operator]

Our next question comes from Rowland Mayor with RBC Capital Markets. Please go ahead.

[Rowland Mayor, Analyst at RBC Capital Markets]

Hi, good evening, and thank you for taking my questions. I was wondering if you could discuss policy in force growth and how that compared to managed premiums. Is pricing currently a drag on the top line?

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

I'm sorry, could you repeat the question one more time? Sorry.

[Rowland Mayor, Analyst at RBC Capital Markets]

Yeah, I was wondering if you could discuss policies in force growth and how that compared to managed premiums. Just trying to get a sense on if pricing is a drag on the top line.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Yeah, very good question. Our policy growth has been pretty close in line. We are not seeing a lot of drag on the premium side. We had roughly at the end of the quarter about 280,000 policies in force. There is a little bit of pricing pressure, but we are not seeing a significant amount impacting it through the third quarter.

[Rowland Mayor, Analyst at RBC Capital Markets]

Thank you. As my follow-up, you ended the quarter with a healthy net cash position and a little bit of debt outstanding. Is it your intention to fully reduce that remaining $56 million of debt?

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

We are going to continue to monitor our cash needs going forward, but our intent is to be with excess cash. We will look to continue to pay down the debt.

[Rowland Mayor, Analyst at RBC Capital Markets]

Thank you. If I could sneak in one more. Any expected losses from Hurricane Isaias?

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Great question. It was a non-material impact at all. It's a non-event for us.

[Rowland Mayor, Analyst at RBC Capital Markets]

Thank you. Congrats on the quarter.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Thank you.

[Operator]

Our next question comes from Brian Meredith with UBS. Please go ahead.

[Analyst at UBS]

Hi. Good afternoon, everyone. Ken, Chris, this is Leandro on behalf of Brian. Congrats on the quarter. I have a follow-up question on the hurricane and the relationship with the services side. Should we expect any claims activity to generate incremental revenues on that segment?

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

I would say no. We have not had any size of number of claims from the hurricane.

[Analyst at UBS]

Sounds good. My second question here, it's on the E&S segment and the admitted market capacity. We have heard from other market participants that additional admitted capacity is entering the homeowner's insurance and some businesses potentially moving from the E&S back into the admitted market. Are you seeing this dynamic across your business, or has it impacted at all your business?

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Great question about the competition, and we have seen entrants enter the market, either new or essentially returning. However, I think when you look at, and it's actually evident through our retention ratio, we're highly confident with our position, and it's actually proof. What you're seeing is the proof that we compete on an admitted-like basis from a standpoint of that we have a roughly 88% policy retention on this, and we're staying and putting up admitted-like retention ratios. We're built to compete. We're not shy of it, and I think the results of the third quarter show that we're able to compete, and it's not really having an impact.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

I think what you're seeing from the typical, goes back to our early conversations when we were going through the process and explaining to people that we operate in an E&S environment, but we offer and we compete on an admitted basis. We offer admitted-like product, and we compete against the entire admitted spectrum. For us, it's not having an impact, and in fact, our results show that we're competing very well.

[Analyst at UBS]

Very clear. Thank you, Ken, and congrats again.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Thank you.

[Operator]

Our next question comes from Gregory Peters with Raymond James. Please go ahead.

[Gregory Peters, Analyst at Raymond James]

Hey, good afternoon. You are posting really substantial rates of growth, and the other carriers, the publicly traded ones, most of them are reporting growth, but not as robust as yours. Ken, you talked about underwriting discipline. Maybe you could spend a second and walk us through how your rates of growth reflect the underwriting discipline relative to what we are seeing with other companies in the marketplace.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Thank you, Gregory. I appreciate you joining the call, and I appreciate the question. What I would say is the underwriting discipline is actually more evident in the results in the loss ratio, not so much on the growth side. The growth is showing that it is the full value package that we offer, right? It is not price-driven. We compete on, we are out there putting together a total package when we go to our agent partners, and we compete across the board, not just on price. In fact, price is the last thing we want to try to compete on. Do not get me wrong, I understand we need to be competitively priced, which we are, but it is about the full experience all the way through with us.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

We are always being selective of where we make sure we have the right, essentially, recipe between the pricing, coverages, and so forth that fits what is our risk appetite that drives the risk, the loss ratios with an appropriate growth, and we are having success. That is why I think you are seeing that we are able to put together that appropriate mix that meets the needs and desires of the customer at the right risk exposure for us, at the right price point that drives the sales. I think we spent eight years building this distribution and these relationships. That is what is driving why we are able to continually do what we do. It is a process, it is a repeatable process, and I would say it is also what is our moat.

[Gregory Peters, Analyst at Raymond James]

That answer makes sense. Thanks. I guess my follow-up question is, if we can just pivot to the underwriting segment, substantial improvement in the combined ratio. Maybe you could just spend a second and talk to us about some of the drivers and if they are durable going forward.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Yeah, I appreciate that. I am going to go ahead and let Christoph kind of talk to that, and as need be, if you want, I can add color afterwards.

[Christoph Birchler, CFO at Orion180]

Yeah. Hey, Greg. I would say, driven by the gross loss ratio, right? As the geographic profile of the portfolio shifted, you are seeing the results of the seasonality impact of increased storms through the third quarter. These shifts are naturally within our expectations. Additionally, we are seeing significant reinsurance terms improvements that is not a factor that counts in here.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Yeah, I think on that side of it, you are seeing that combined ratio as there is more earned premium going through the book as course, you have seen the improved economics in the reinsurance expense and the structure of the reinsurance that has helped driving the ultimate underwriting and improved combined ratio.

[Gregory Peters, Analyst at Raymond James]

Perfect. Thanks for the answers. Congratulations on the quarter.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Thank you, Greg. Appreciate it.

[Operator]

Once again, if you would like to ask a question, please press star one on your telephone keypad. Our next question comes from Cave Montazeri with Deutsche Bank. Please go ahead.

[Cave Montazeri, Analyst at Deutsche Bank]

I just want to follow up on the combined ratio question and maybe focus more on the acquisition ratio improvement. I am wondering if you can unpack that a bit more.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

The acquisition, I am sorry, what is the last piece? Came across muffled. I am sorry.

[Cave Montazeri, Analyst at Deutsche Bank]

Oh, the policy acquisition ratio in your underwriting segment.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Christoph, do you want to talk about that?

[Christoph Birchler, CFO at Orion180]

We will follow up on that. Let us take that question away.

[Cave Montazeri, Analyst at Deutsche Bank]

Sure. Sorry, my headset just dropped off, so I do not know if you even heard my question. The follow-up is, I was wondering if you can unpack both in earned premium in the underwriting, like both on the growth side and from the net premium earned as well. So gross premium earned and net.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Yeah, you are saying how much has the earned premium actually changed?

[Cave Montazeri, Analyst at Deutsche Bank]

No, I am just wondering, like, what drove the improvement?

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

The combined ratio improvement, you are saying?

[Cave Montazeri, Analyst at Deutsche Bank]

No, sorry, no. It is a different question. Now the gross earned premium, like what drove the growth in earned premium?

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Oh, it's the higher held book. As the book matures and becomes more held, even with the significant growth, we're still having a more earned flow through than what's being added on the new.

[Cave Montazeri, Analyst at Deutsche Bank]

Okay. Sorry, I don't even know my first question went through because, like I said, my phone died. So I'm going to ask a different question, which is just on from a brand recognition point of view. Given the recent IPO, and I know you've got the F1 sponsorship that you've renewed, and recently we saw your name in some college basketball tournament. Just wondering where you are in terms of brand awareness.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Oh, got it. So you're looking at the brand awareness, the marketing that we do to build the brand awareness. I think first-

[Cave Montazeri, Analyst at Deutsche Bank]

Yeah, the marketing and the IPO as well probably helps as well.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Yes, absolutely. I think that was part of the entire, one of the things that we looked at when I was going down the path of the IPO, was to help the agent as well as the consumers to recognize and essentially give additional validity to us, right? When they're presenting us to the insureds, we won't hide behind the fact that overall, we don't have the same household name as some of the legacy large companies that have been out there for 100+ years. We're building that brand as you see, as you mentioned, through F1, the relationship being associated to the premier racing series in the world, right? Again, being positioned as a premier provider, we're associating ourselves with premier type of series and events like the basketball. We are associated with the number one team in the country.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Again, it's a premier type of experience. All those things, and the IPO absolutely gives additional credibility to us with our partners, insurers, and agents as well, to understand you have a strong company that's a publicly traded company and also goes through the scrutiny of the SEC.

[Cave Montazeri, Analyst at Deutsche Bank]

Makes sense. Thank you, and sorry about the technical issues earlier.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

No, thank you. I appreciate. Sorry, I didn't quite clearly understand on the first side. Thank you, Cave.

[Operator]

Our next question comes from Randy Binner with Texas Capital. Please go ahead.

[Randy Binner, Analyst at Texas Capital]

All right, thank you. Just a few cleanup questions here. I guess on just following up on the pricing question, Ken, I think you kind of replied that you're not seeing, I think as Rowland had asked, that you're not seeing a lot of pricing pressure across the book. But can we kind of dig into states? Is pricing versus loss cost a lot better in the new states like California and Colorado versus your legacy states? Just kind of be curious where the best rate versus loss cost opportunity is in the states you're looking at.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Actually, I think, great. Good question, Randy. I appreciate it. Again, thank you for joining us on the call, and appreciate your question. It's actually pretty steady. You're going to see this run on a traditional basis already. For example, in the Midwest, you're going to see pricing have more of an impact on the loss ratio. It's a different type of exposure in the Midwest, for example, than on the coastal Southeast. You look at our legacy states, for example, South Carolina is a perfect example, still performing extremely strong. There is, again, increased competition, but we compete more than just on price. I do not want to say, and I do not want anybody to walk away from here misunderstanding that we're seeing price competition, but we're not having a drastic impact on us, is what I am saying.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

There is price pressure out there, but we compete on other than just price alone. So, we're not having a significant impact, at least through the third quarter. That's where we continue to find ways to compete and differentiate the product to get away from just the pricing. When you look at, for example, at the FLEX product in itself, it's specifically designed that you are not competing there just on price. It allows the customer to totally pick and choose their policy and design it to fit their personal needs, and the price will come out to be where it is. So, it's not a real get into a commodities approach of pricing an apples to apples type of side-by-side comparison, because you're not. You're comparing two different type of policies at that point that are totally structured to where they are.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

You look at inside the FLEX product, we added some additional, essentially, optional coverages. For example, the ability to have a two-year rate lock. That's not an easy comparable product, for example, feature that other products have. Having the, essentially, a no-loss reward that they get return of premiums if they have no loss over periods of time. That feature inside the FLEX product. So, FLEX allows enough differentiation that you don't get into a competitive environment that you're competing like to like. You're competing on product and different services before you go just pure price. That's why what you're seeing from us, and this is what we are built on as a company, right? From day one, we have built to compete on innovation and differentiating on value, bringing value to the equation versus just having a like-like product and competing on price.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Which I think what you see in the current environment and historically, you find companies that do enter new markets or come as a new competitor or re-enter, that's what they typically do is come in and try to buy market share. That's not something we do. We try to compete in different ways. And I think you're seeing we're fairly successful at it, which is, I think, you can see it directly through the results that we have.

[Randy Binner, Analyst at Texas Capital]

All right. That's great. I just have a couple others. So, on FlexLuxe, I think you mentioned that it goes up to $7.5 million home values. If I got that right, I think that's a bigger house than you've insured in the past. Correct me if I'm wrong, but is that all E&S? Are there different considerations that you have to evaluate when getting into kind of larger homes like that?

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

No, great question. No, you are correct, by the way. The value is $7.5 million total insured value. The home value itself is $5 million. But that's still significantly higher from what we, in our current portfolio, max limit in our current portfolio. And it is strictly E&S. That's, again, where our focus in growth is to continue staying in the E&S environment. And it's, again, not about risk selection, but more about having the availability of the tools and the ability to leverage our insight and data and technology advantage to stay competitive in the environment in a more dynamic fashion, speed to market with changes to stay competitive with the market demands. That's why we stay in the E&S space. The FlexLuxe product is a natural fit for us. It's just an extension of what we currently do.

[Randy Binner, Analyst at Texas Capital]

Got it. Okay, that's helpful. Just one other modeling question. The yield, the investment yield is actually pretty darn good this quarter. Is there anything unusual there? Can we model that kind of yield on a quarterly basis, or were there some good guys in there?

[Christoph Birchler, CFO at Orion180]

Hey, Randy, can you repeat that question?

[Randy Binner, Analyst at Texas Capital]

Yeah.

[Christoph Birchler, CFO at Orion180]

It didn't come through very-

[Randy Binner, Analyst at Texas Capital]

Oh, no, I apologize. Sorry. I'm reading you guys well. But I am asking if for net investment income, the yield-

[Christoph Birchler, CFO at Orion180]

Okay.

[Randy Binner, Analyst at Texas Capital]

...captured in the quarter was better than I modeled. My question is that a good yield model going forward, or was there any unusual good items in the quarter for the investment yield?

[Christoph Birchler, CFO at Orion180]

No, there wasn't anything specific to mention here. Our investment yield stays pretty consistent of our expectations. Naturally, net investment return is growing as we're just building more business and retaining more cash. We can talk about modeling offline.

[Randy Binner, Analyst at Texas Capital]

All right. I'll leave it there. Thanks so much.

[Christoph Birchler, CFO at Orion180]

Thanks.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Thank you, Randy.

[Operator]

We have reached the end of our question and answer session. I would now like to turn the floor back over to Ken Gregg for closing comments.

[Ken Gregg, Founder, Chairman, and CEO at Orion180]

Thank you. I'd like to thank everyone for participating in this call. It's our first earnings call as a publicly traded company. We're very excited about our future. Again, in closing, I'd like to first off thank all of our consumers, our agents, our reinsurance partners, and our new shareholders for trusting us and being part of their life. For that, we're extremely excited about the future of Orion180 and what we have going forward. I want to thank everyone for their participation and hope everyone has a great night.

[Operator]

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Participants

Analysts

• Company Representative at Orion180
• Ken Gregg, Founder, Chairman, and CEO at Orion180
• Christoph Birchler, CFO at Orion180
• Matt Carletti, Analyst at JMP
• Rowland Mayor, Analyst at RBC Capital Markets
• Analyst at UBS
• Gregory Peters, Analyst at Raymond James
• Cave Montazeri, Analyst at Deutsche Bank
• Randy Binner, Analyst at Texas Capital