Florida and Northeast homeowners carriers led the pack with some of the tightest combined ratios in the quarter, while life and annuity platforms navigated mixed underwriting conditions, a $460 million goodwill charge swamped Kemper's headline numbers, and Oscar Health posted its most profitable first half on record.
A 6% rise in policies in force drove gross premiums earned to $321 million at HCI Group, Inc., with total gross written premiums reaching $382 million for the quarter. The gross loss and LAE ratio came in at 22.2%, up only slightly from 21.3% a year ago, with the dollar increase in losses tied to volume growth rather than deteriorating frequency or severity. Pre-tax income was $111 million and diluted EPS was $5.60, up from $5.18 in Q2 2025.
New reinsurance programs that took effect June 1 trimmed ceded premiums slightly to $102 million from $103 million. The Tailrow Reciprocal Exchange was the standout growth vehicle, with gross written premiums jumping to $32.8 million from $5.2 million a year earlier. HCI completed its $80 million share repurchase program on July 17.
For brokers placing Florida homeowners and coastal property risks, a 22% gross loss ratio from a carrier running a growing reciprocal exchange platform is a stable capacity signal heading into the second half of 2026.
Net income at Kingstone Companies, Inc. hit $15.5 million in the second quarter, or $1.05 per diluted share, up 35% year over year, the most profitable quarter in the company's history. The GAAP net combined ratio improved to 70.2% from 71.5%, with net premiums earned growing 31% to $60.5 million as a reduced quota share earned through. Direct premiums written rose 19% to $72.5 million on New York personal lines strength.
The net loss ratio was 39.6%, aided by a negative 0.8% catastrophe ratio. Favorable development on first-quarter CAT estimates exceeded current-period losses. The expense ratio improved to 30.6% from 32.7% as the premium base absorbed fixed costs, though the underlying combined ratio widened slightly to 73.7% from 71.4% as the book grew.
Kingstone completed a new catastrophe reinsurance placement that lifted total coverage to $500 million, added wildfire protection, and cut the risk-adjusted cost of core CAT excess-of-loss cover by more than 15%. Full-year guidance was reaffirmed at a net combined ratio of 81% to 86% and diluted EPS of $2.20 to $2.90.
White Mountains Insurance Group, Ltd. reported book value per share of $2,258 at June 30, up 4% for the quarter. At Ark segment, the Lloyd's-based specialty and P&C reinsurer, the combined ratio held at 84%, flat year over year. Gross written premiums fell 5% to $778 million as property rates softened, partly offset by growth in specialty lines. The quarter absorbed three points of catastrophe losses from the Iran war, while eight points of net favorable prior-year development in property and specialty helped offset them. Ark's tangible book value grew 6%.
The Distinguished specialty distribution segment reported managed premiums of $189 million and ScaleCo adjusted EBITDA of $12 million, with environmental and urban real estate programs leading growth. White Mountains repurchased $191 million of its shares at 93% of June 30 book value per share.
Strip out the $460 million non-cash goodwill impairment and Kemper Corporation's second quarter still fell well short of a year ago. Adjusted net operating income was $26.3 million, or $0.45 per share, down from $84.1 million a year earlier. The specialty P&C insurance segment's underlying combined ratio widened to 102.3% from 93.6%, with specialty personal automobile's underlying loss and LAE ratio climbing to 83.8% from 72.5% on higher claim severity and frequency in California. The reported segment combined ratio was 104.0%.
Commercial automobile held up better, with net premiums written growing to $249 million from $222 million. Life Insurance contributed adjusted net operating income of $18.3 million, up from $12.6 million. Including the impairment, net loss was $464.8 million, or $7.90 per share. Book value per share fell 19% since year-end 2025 to $37.22.
For brokers placing nonstandard personal auto, the California loss trend at Kemper is a pricing signal worth monitoring at renewal.
Safety Insurance Group, Inc. improved its combined ratio to 95.7% from 98.1%, with net income rising to $34.5 million, or $2.36 per diluted share, from $28.9 million a year ago. Net earned premiums grew 3.4% to $291.7 million as prior rate increases earned through, though net written premiums slipped 1.9% to $313.5 million partly from the cancellation of underperforming agency relationships. Prior-year favorable development contributed $10.6 million pre-tax.
On July 23, Mapfre S.A. agreed to acquire Safety in an all-cash deal valued at approximately $1.54 billion, at $105 per share, a 44% premium. The transaction is pending shareholder and regulatory approval. For independent brokers in New England writing Safety paper, the acquisition timeline is the key near-term factor for market access planning.
Genworth Financial, Inc. kept its adjusted operating income excluding the closed block flat at $112 million, or $0.29 per diluted share, despite deepening losses in its legacy long-term care portfolio. Enact, its mortgage insurance subsidiary, posted adjusted operating income of $143 million, up from $141 million, with primary new insurance written rising 15% year over year to $15.2 billion and the PMIERs sufficiency ratio holding at 161%.
The LTC closed block recorded an adjusted operating loss of $110 million, versus $44 million a year ago. A $127 million pre-tax actual-versus-expected shortfall drove the result, with lower terminations and seasonally weaker mortality compounding claims growth as the block ages. The GLIC RBC ratio eased to 286% from 289%.
CFO Jerome Upton is serving as interim president and CEO while Tom McInerney is on temporary medical leave.
Primerica, Inc. delivered net income of $202 million, or $6.45 per diluted share, up 13% and 19% respectively. The investment and savings products segment was the engine: product sales hit a record $4.4 billion, up 23%, with ending client asset values reaching an all-time high of $140 billion. ISP pre-tax income rose 31% to $104 million.
Term life insurance was softer. Pre-tax income fell 4% to $148 million, policies issued dropped 12% to 78,904, and the life-licensed sales force contracted 3% year over year to 148,612 with new license grants down 15%. Those distribution metrics bear watching for brokers who rely on Primerica as a term life referral partner.
Adjusted earnings at Brighthouse Financial, Inc. rose 30% to $258 million, or $4.45 per diluted share. Shield Level Annuity sales exceeded $2.1 billion in the quarter, a record, and lifted total annuity sales to $2.4 billion. The Life segment narrowed its adjusted loss to $4 million from $26 million on better underwriting margin. The estimated combined RBC ratio was between 430% and 450%.
The pending $4.1 billion acquisition by an Aquarian Capital affiliate for $70.00 per share remains subject to insurance regulatory approvals in Delaware, New York, and Massachusetts. If approvals are not received by September 6, the agreement extends automatically to December 6. Annuity and life distribution channels using Brighthouse products should track that timeline.
Fidelity National Financial, Inc. delivered an adjusted pre-tax title margin of 17.8%, up 230 basis points year over year, as adjusted pre-tax title earnings reached $448 million, up 33%. Commercial revenue drove the gains, growing 32% to $440 million with direct commercial revenue up 24% year to date. Fee per file averaged $4,107, up 5%. Residential volumes stayed low, with purchase orders closing up just 4% on a daily basis as elevated mortgage rates continued to suppress activity. Adjusted net earnings were $370 million, or $1.39 per diluted share.
The commercial strength and record fee per file signal pricing firmness for title agents and real estate service brokers, even as residential activity stays constrained.
A medical loss ratio of 79.2%, down from 91.1% a year ago, drove Oscar Health, Inc. to second-quarter net income of $361.8 million, or $1.10 per diluted share, versus a net loss of $228.4 million in Q2 2025. Total revenue reached $4.9 billion, up from $2.9 billion, with effectuated membership hitting more than 2.9 million, up 46% year over year. The improvement in MLR reflected disciplined pricing and $164 million of favorable prior-period reserve development.
Oscar raised its full-year earnings from operations guidance to $500 million to $700 million from $250 million to $450 million, while holding total revenue guidance at $18.7 billion to $19 billion. The membership growth and MLR improvement are relevant to benefits brokers assessing individual and ICHRA carrier options.
