Oct 28, 2026 earnings call — Special dividend and raised full-year guidance
Board approved a special cash dividend of $1.50 per share.
Revenue $0.4B (est $0.4B) · EPS $1.09 (est $0.82) · Next-quarter revenue outlook $1.9B–$1.9B
Key quotes
"In addition to our regular quarterly cash dividend of $0.07 per share, I am pleased to announce that our board of directors has approved a special cash dividend of $1.50 per share."
"We also began writing residential business in Texas this quarter and remain on track to roll out New York and New Jersey in the coming quarters."
"Our combined ratio was 59.3%, reflecting continued underwriting discipline even with catastrophe losses."
Analyst Q&A 4
hurricane loss and credit use
Q (Alex Scott · Barclays): The analyst asked them to explain the roughly $50 million estimated pre-tax hurricane loss and what drove that size. He also asked how the over $1 billion credit capacity might be used — for organic growth, capital return, or M&A.
A: Management said Isaias hit a very low-populated area near the Alabama-Florida line and they have a small concentration and affected policyholders there. They booked a conservative $50 million pre-tax loss as a reserve to message the market, but said the final amount could be lower. They said the credit facility is flexible for general corporate purposes and primarily intended to support ex-Florida growth and potential strategic M&A.
"So we took a very conservative $50 million pre-tax loss to just message the market." — Bruce Lucas (CEO·CHAIR)
G&A expenses and growth rate
Q (Tommy McJoynt · KBW): He asked why G&A fell sequentially and whether that step-down is sustainable as they expand. He also asked what would be a good top-line growth rate for 2027 given roughly $2 billion in premium this year.
A: Management said they run a tight cost control and many expenses were front-loaded in prior quarters for the multi-state expansion, which makes the G&A ratio come down as top-line grows. They said expense ratios should flatten as they scale and gave a run rate target of around 29, maybe a 28.5 for the year. For 2027 top-line, they said to assume roughly 8% or 9% growth, with new markets adding on after regulatory ramp-up.
"I think right now, if we look at where we're sitting today, we're roughly around 8% or 9%." — Andy Omiridis (CFO)
timing of growth and competition
Q (Paul Newsome · Piper Sandler): He asked whether the 8%-9% growth would be evenly spread or accelerate through the year as states and distribution ramp. He also asked how competition (and Citizens depopulations) might affect growth.
A: Management said the growth is likely back-end loaded next year, with Q1 decent but acceleration as new states and distribution ramp, and New York will require extra ramp time. They noted reinsurance buying starts early February and requires conservative projections, so they expect more robust growth in the second half. On competition, they said competition exists everywhere but they are not seeing outsized pressures and they still see substantial opportunity and reinsurance synergies to support expansion.
"But when we look at the 8% or 9%, it is back-end loaded next year because the quarters aren't linear." — Andy Omiridis (CFO)
market shift, M&A, and tax rate
Q (Randy Binner · Texas Capital): He asked whether the market shift Bruce mentioned is related to strategic M&A and what they are seeing in the market. He also asked why the tax rate was lower this quarter and what tax rate to model going forward.
A: Bruce said the market shift is driven by forward reinsurance price expectations and that Isaias will not move reinsurance pricing; he said Slide will not see a reinsurance loss and that lower reinsurance volatility lets them take more underwriting capacity. He said they have seen an uptick in M&A activity but would only pursue deals at the right price. Andy said they put a tax strategy in place, started the year assuming a 24.5 ETR, it is now effectively around 21.5 and they assume they'll stay around 21.5-22 going forward.
"We assume that we'll stay around 21.5-22 with the tax strategy that we have put in place." — Andy Omiridis (CFO)