MCY — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-05-05

• In late 2024, as part of the California insurance commissioner’s “Sustainable Insurance Strategy,” the California DOI issued two regulations that may impact how insurers price and write certain of their California property insurance policies: one allowing insurers to incorporate catastrophe modeling…

• In January 2025, the California DOI approved a 12% rate increase on the California homeowners line of insurance business. This rate increase became effective in March 2025. In addition, in December 2025, the California DOI approved a 6.9% rate increase on the California homeowners line of insurance …

• The Company is, from time to time, named as a defendant in various lawsuits or regulatory actions incidental to its insurance business. The majority of lawsuits brought against the Company relate to insurance claims that arise in the normal course of business and are reserved for through the reservi…

• The Company also engages independent actuarial consultants to review the Company’s loss reserves and to provide the annual actuarial opinions under statutory accounting principles as required by state regulation. The Company analyzes loss reserves quarterly primarily using the incurred loss method, …

• •The incurred loss method analyzes historical incurred case loss (case reserves plus paid losses) development to estimate ultimate losses. The Company applies development factors against current case incurred losses by accident period to calculate ultimate expected losses. The Company believes that …

Text removed vs the prior filing · source: 10-Q · 2025-11-04

• The following table presents a summary of recent and upcoming examinations:

• TXMarket Conduct2022Final examination reports were issued in the first half of 2025.

• During the course of and at the conclusion of the examinations, the examining DOI generally reports findings to the Company. No material findings have been communicated to the Company in the Texas market conduct examination reports noted above.

• In late 2024, as part of the California insurance commissioner’s “Sustainable Insurance Strategy,” the California DOI issued two regulations that may impact how insurers price and write certain of their California property insurance policies: one allowing insurers to incorporate catastrophe modeling…

• Company filed its rate application with the California DOI, which incorporates catastrophe modeling and reinsurance costs into its ratemaking, in accordance with the new regulations. Upon approval by the California DOI, the Company will adhere to the market-share requirements when implementing the n…

Text added vs the prior filing · source: 10-Q · 2026-05-05

• The Company manages exposures to market risk through the use of asset allocation, duration, and credit ratings. Asset

• allocation limits place restrictions on the total amount of funds that may be invested within an asset class. Duration limits on the fixed maturity securities portfolio place restrictions on the amount of interest rate risk that may be taken. Comprehensive day-to-day management of market risk within…

• Credit risk results from uncertainty in a counterparty’s ability to meet its obligations. Credit risk is managed by maintaining a high credit quality fixed maturity securities portfolio. The estimated weighted-average credit quality rating of the fixed maturity securities portfolio was AA- and A+, a…

• The following table presents fixed maturity municipal securities by state in descending order of holdings at fair value at March 31, 2026:

• At March 31, 2026, the fixed maturity municipal securities portfolio was broadly diversified among the states and the largest holdings were in populous states such as Florida and California. These holdings were further diversified primarily among cities, counties, schools, public works, hospitals, a…

Text removed vs the prior filing · source: 10-Q · 2025-11-04

• The Company manages exposures to market risk through the use of asset allocation, duration, and credit ratings. Asset allocation limits place restrictions on the total amount of funds that may be invested within an asset class. Duration limits on the fixed maturity securities portfolio place restric…

• Credit risk results from uncertainty in a counterparty’s ability to meet its obligations. Credit risk is managed by maintaining a high credit quality fixed maturity securities portfolio. As of September 30, 2025, the estimated weighted-average credit quality rating of the fixed maturity securities p…

• The following table presents fixed maturity municipal securities by state in descending order of holdings at fair value at September 30, 2025:

• At September 30, 2025, the fixed maturity municipal securities portfolio was broadly diversified among the states and the largest holdings were in populous states such as Florida and California. These holdings were further diversified primarily among cities, counties, schools, public works, hospital…

• Taxable fixed maturity securities represented 49.5% of the Company’s total fixed maturity securities portfolio at fair value at September 30, 2025. 0.01% of the Company’s taxable fixed maturity securities at fair value, representing 0.01% of its total fixed maturity securities portfolio at fair valu…

Text removed vs the prior filing · source: 10-Q · 2025-11-04

• The Company's business, financial condition and results of operations could be adversely affected by geopolitical conflicts and related disruptions in the global economy, including the imposition of tariffs.

• The escalation of geopolitical conflicts and tensions in various parts of the world, including increased trade barriers or restrictions on global trade, could result in, among other things, heightened cybersecurity threats, prolonged supply chain disruptions, protracted or increased inflation, lower…

• Effective February 4, 2025, the U.S. announced additional tariffs for goods imported into the U.S. from Mexico, Canada, and China, which was followed by a series of other tariff-related announcements by the U.S. and other countries. Although the Company cannot predict what additional actions may ult…