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Category: Finance

  • MIL-OSI: Tactile Systems Technology, Inc. Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    MINNEAPOLIS, May 05, 2025 (GLOBE NEWSWIRE) — Tactile Systems Technology, Inc. (“Tactile Medical”; the “Company”) (Nasdaq: TCMD), a medical technology company providing therapies for people with chronic disorders, today reported financial results for the first quarter ended March 31, 2025.

    First Quarter 2025 Summary & Recent Business Highlights:

    • Total revenue increased 0.3% year-over-year to $61.3 million
    • Gross margin of 74% versus 71% in Q1 2024
    • Net loss of $3.0 million versus $2.2 million in Q1 2024
    • Adjusted EBITDA loss of $0.3 million versus positive Adjusted EBITDA of $1.0 million in Q1 2024
    • Repurchased $10.0 million of stock under the Company’s share repurchase program
    • Expanded launch of Nimbl to include patients with lower extremity conditions, the largest segment of the lymphedema market
    • Completed launch of a new customer relationship management (CRM) tool and previously announced optimization of sales organization

    “Through the first quarter our team executed on several highly strategic, growth-oriented priorities. We launched Nimbl for lower extremity lymphedema, completed efforts to optimize our sales organization for scale and efficiency, and implemented a new CRM tool that equips our team with best-in-class resources to more efficiently reach lymphedema patients,” said Sheri Dodd, Chief Executive Officer of Tactile Medical.

    “While these efforts have had a temporary impact on sales force productivity, we are thrilled with the progress made and firmly believe these transformational actions are essential to positioning Tactile for consistent, long-term growth. Our underlying business fundamentals remain firmly in place and we are meaningfully advancing each of our three 2025 strategic priorities to remain the competitive market share leader in medical device lymphatic therapy.”

    First Quarter 2025 Financial Results

    Total revenue in the first quarter of 2025 increased $180 thousand, or 0.3%, to $61.3 million, compared to $61.1 million in the first quarter of 2024. The increase in total revenue was attributable to an increase of $1.9 million, or 22%, in sales of the airway clearance product line, offset by a decrease of $1.8 million, or 3%, in sales and rentals of the lymphedema product line in the quarter ended March 31, 2025, compared to the first quarter of 2024. The increase in airway clearance product line revenue was primarily attributable to increased placements of AffloVest among our durable medical equipment (DME) partners, while the decrease in lymphedema product line revenue was primarily attributable to a decrease in headcount of our field sales team.

    Gross profit in the first quarter of 2025 increased $1.9 million, or 4%, to $45.3 million, compared to $43.4 million in the first quarter of 2024. Gross margin was 74% of revenue, compared to 71% of revenue in the first quarter of 2024. The increase in gross profit was primarily attributable to lower manufacturing and warranty costs.

    Operating expenses in the first quarter of 2025 increased $3.5 million, or 8%, to $49.9 million, compared to $46.4 million in the first quarter of 2024. The increase in operating expenses was primarily attributable to planned strategic investments.

    Operating loss was $4.5 million in the first quarter of 2025, compared to $3.0 million in the first quarter of 2024.

    Other income was $0.5 million in the first quarter of 2025, compared to $0.2 million in the first quarter of 2024, and consisted primarily of interest income, net.

    Income tax benefit was $1.1 million in the first quarter of 2025, compared to $0.6 million in the first quarter of 2024.

    Net loss in the first quarter of 2025 was $3.0 million, or $(0.13) per diluted share, compared to $2.2 million, or $(0.09) per diluted share, in the first quarter of 2024.

    Weighted average shares used to compute diluted net loss per share were 23.7 million in each of the first quarters of 2025 and 2024.

    Adjusted EBITDA loss was $0.3 million in the first quarter of 2025, compared to positive Adjusted EBITDA of $1.0 million in the first quarter of 2024.

    Balance Sheet Summary

    As of March 31, 2025, the Company had $83.6 million in cash and $25.5 million of outstanding borrowings under its credit agreement, compared to $94.4 million in cash and $26.3 million of outstanding borrowings under its credit agreement as of December 31, 2024. The Company repurchased $10.0 million of its stock during the first quarter under its repurchase program. As of March 31, 2025, $16.5 million remained available under the Company’s $30.0 million share repurchase program, which expires October 31, 2026.

    2025 Financial Outlook

    The Company is updating its 2025 financial outlook and now expects full year 2025 total revenue in the range of $309 million to $315 million, representing growth of approximately 5% to 8% year-over-year, compared to total revenue of $293.0 million in 2024. The Company’s prior 2025 guidance expectation was total revenue in the range of $316 million to $322 million, representing growth of approximately 8% to 10% year-over-year.

    The Company now also expects full year 2025 adjusted EBITDA in the range of $32 million to $34 million, compared to adjusted EBITDA of $37.1 million in 2024. The Company’s prior 2025 guidance expectation was adjusted EBITDA in the range of $35 million to $37 million.

    Conference Call

    Management will host a conference call with a question-and-answer session at 5:00 p.m. Eastern Time on May 5, 2025, to discuss the results of the quarter. Those who would like to participate may dial 877-407-3088 (201-389-0927 for international callers) and provide access code 13752588. A live webcast of the call will also be provided on the investor relations section of the Company’s website at investors.tactilemedical.com.

    For those unable to participate, a replay of the call will be available for two weeks at 877-660-6853 (201-612-7415 for international callers); access code 13752588. The webcast will be archived at investors.tactilemedical.com.

    About Tactile Systems Technology, Inc. (DBA Tactile Medical)

    Tactile Medical is a leader in developing and marketing at-home therapies for people suffering from underserved, chronic conditions including lymphedema, lipedema, chronic venous insufficiency and chronic pulmonary disease by helping them live better and care for themselves at home. Tactile Medical collaborates with clinicians to expand clinical evidence, raise awareness, increase access to care, reduce overall healthcare costs and improve the quality of life for tens of thousands of patients each year.

    Legal Notice Regarding Forward-Looking Statements

    This release contains forward-looking statements, including guidance for the full year 2025. Forward-looking statements are generally identifiable by the use of words like “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “continue,” “confident,” “outlook,” “guidance,” “project,” “goals,” “look forward,” “poised,” “designed,” “plan,” “return,” “focused,” “prospects” or “remain” or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties outside of the Company’s control that can make such statements untrue, including, but not limited to, the Company’s ability to obtain reimbursement from third-party payers for its products; adverse economic conditions, including inflation, rising interest rates or a recession; the adequacy of the Company’s liquidity to pursue its business objectives; price increases for supplies and components; wage and component price inflation; loss of a key supplier or other supply chain disruptions; entry of new competitors and/or competitive products; compliance with and changes in federal, state and local government regulation; technological obsolescence of, or quality issues with, the Company’s products; the Company’s ability to expand its business through strategic acquisitions; the Company’s ability to integrate acquisitions and related businesses; the effects of current and future U.S. and foreign trade policy and tariff actions; or the inability to carry out research, development and commercialization plans. In addition, other factors that could cause actual results to differ materially are discussed in the Company’s filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

    Use of Non-GAAP Financial Measures

    This press release includes the non-GAAP financial measure of Adjusted EBITDA, which differs from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted EBITDA in this release represents net income (loss), plus interest expense, net, or less interest income, net, less income tax benefit or plus income tax expense, plus depreciation and amortization, plus stock-based compensation expense and plus executive transition costs. Reconciliation of this non-GAAP financial measure to its most directly comparable GAAP measure is included in this press release.

    This non-GAAP financial measure is presented because the Company believes it is a useful indicator of its operating performance. Management uses this measure principally as a measure of the Company’s operating performance and for planning purposes, including the preparation of the Company’s annual operating plan and financial projections. The Company believes this measure is useful to investors as supplemental information and because it is frequently used by analysts, investors and other interested parties to evaluate companies in its industry. The Company also believes this non-GAAP financial measure is useful to its management and investors as a measure of comparative operating performance from period to period. In addition, Adjusted EBITDA is used as a performance metric in the Company’s compensation program.

    The non-GAAP financial measure presented in this release should not be considered as an alternative to, or superior to, its respective GAAP financial measure, as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and it should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as tax payments, debt service requirements, capital expenditures and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized. In evaluating non-GAAP financial measures, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in this presentation. The Company’s presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using non-GAAP financial measures on a supplemental basis. The Company’s definition of these non-GAAP financial measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation.

                 
    Tactile Systems Technology, Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited)
        March 31,   December 31,
    (In thousands, except share and per share data)   2025   2024
    Assets          
    Current assets            
    Cash   $ 83,619   $ 94,367
    Accounts receivable, net     35,693     44,937
    Net investment in leases     14,850     14,540
    Inventories     18,867     18,666
    Income taxes receivable     1,193     —
    Prepaid expenses and other current assets     5,900     5,053
    Total current assets     160,122     177,563
    Non-current assets            
    Property and equipment, net     5,391     5,603
    Right of use operating lease assets     16,174     16,633
    Intangible assets, net     41,866     42,789
    Goodwill     31,063     31,063
    Deferred income taxes     18,059     18,311
    Other non-current assets     7,567     5,962
    Total non-current assets     120,120     120,361
    Total assets   $ 280,242   $ 297,924
    Liabilities and Stockholders’ Equity            
    Current liabilities            
    Accounts payable   $ 7,224   $ 5,648
    Note payable     2,956     2,956
    Accrued payroll and related taxes     10,929     17,923
    Accrued expenses     7,177     7,780
    Income taxes payable     —     270
    Operating lease liabilities     3,036     2,980
    Other current liabilities     4,079     3,147
    Total current liabilities     35,401     40,704
    Non-current liabilities            
    Note payable, non-current     22,481     23,220
    Accrued warranty reserve, non-current     1,201     1,209
    Income taxes payable, non-current     355     239
    Operating lease liabilities, non-current     15,173     15,955
    Total non-current liabilities     39,210     40,623
    Total liabilities     74,611     81,327
                 
    Stockholders’ equity:            
    Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued and outstanding as of March 31, 2025 and December 31, 2024     —     —
    Common stock, $0.001 par value, 300,000,000 shares authorized; 23,584,471 shares issued and outstanding as of March 31, 2025; 23,883,475 shares issued and outstanding as of December 31, 2024     24     24
    Additional paid-in capital     172,727     180,719
    Retained earnings     32,880     35,854
    Total stockholders’ equity     205,631     216,597
    Total liabilities and stockholders’ equity   $ 280,242   $ 297,924
                 
                 
    Tactile Systems Technology, Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited)
                 
                 
        Three Months Ended
        March 31,
    (In thousands, except share and per share data)   2025   2024
    Revenue            
    Sales revenue   $ 52,469     $ 53,307  
    Rental revenue     8,799       7,781  
    Total revenue     61,268       61,088  
    Cost of revenue            
    Cost of sales revenue     13,891       14,944  
    Cost of rental revenue     2,031       2,715  
    Total cost of revenue     15,922       17,659  
    Gross profit            
    Gross profit – sales revenue     38,578       38,363  
    Gross profit – rental revenue     6,768       5,066  
    Gross profit     45,346       43,429  
    Operating expenses            
    Sales and marketing     27,516       27,357  
    Research and development     1,741       2,143  
    Reimbursement, general and administrative     19,998       16,261  
    Intangible asset amortization and earn-out     633       632  
    Total operating expenses     49,888       46,393  
    Loss from operations     (4,542 )     (2,964 )
    Interest income     895       713  
    Interest expense     (424 )     (567 )
    Other income     —       9  
    Loss before income taxes     (4,071 )     (2,809 )
    Income tax benefit     (1,097 )     (600 )
    Net loss   $ (2,974 )   $ (2,209 )
    Net loss per common share            
    Basic   $ (0.13 )   $ (0.09 )
    Diluted   $ (0.13 )   $ (0.09 )
    Weighted-average common shares used to compute net loss per common share            
    Basic     23,710,643       23,665,829  
    Diluted     23,710,643       23,665,829  
                     
                 
    Tactile Systems Technology, Inc.
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
         
        Three Months Ended March 31,
    (In thousands)   2025   2024
    Cash flows from operating activities            
    Net loss   $ (2,974 )   $ (2,209 )
    Adjustments to reconcile net loss to net cash provided by operating activities:            
    Depreciation and amortization     1,726       1,634  
    Deferred income taxes     252       84  
    Stock-based compensation expense     2,066       2,039  
    Loss on disposal of property and equipment and intangibles     5       —  
    Changes in assets and liabilities, net of acquisition:            
    Accounts receivable, net     9,244       2,682  
    Net investment in leases     (310 )     (129 )
    Inventories     (201 )     1,683  
    Income taxes     (1,347 )     (693 )
    Prepaid expenses and other assets     (2,452 )     (787 )
    Right of use operating lease assets     (267 )     2  
    Accounts receivable, non-current     —       3,983  
    Accounts payable     1,387       (1,396 )
    Accrued payroll and related taxes     (6,994 )     (5,766 )
    Accrued expenses and other liabilities     282       (203 )
    Net cash provided by operating activities     417       924  
    Cash flows from investing activities            
    Purchases of property and equipment     (379 )     (482 )
    Intangible assets expenditures     (28 )     (20 )
    Net cash used in investing activities     (407 )     (502 )
    Cash flows from financing activities            
    Payments on note payable     (750 )     (750 )
    Proceeds from exercise of common stock options     10       1  
    Payments for repurchases of common stock     (10,018 )     —  
    Net cash used in financing activities     (10,758 )     (749 )
    Net decrease in cash     (10,748 )     (327 )
    Cash – beginning of period     94,367       61,033  
    Cash – end of period   $ 83,619     $ 60,706  
                 
    Supplemental cash flow disclosure            
    Cash paid for interest   $ 444     $ 583  
    Cash paid for taxes   $ 15     $ 54  
    Accrued excise tax on stock repurchases   $ 50     $ —  
    Capital expenditures incurred but not yet paid   $ 189     $ 225  
                     

    The following table summarizes revenue by product line for the three months ended March 31, 2025 and 2024:

                 
        Three Months Ended
        March 31,
    (In thousands)      2025    2024 
    Revenue            
    Lymphedema products   $ 50,554     $ 52,313  
    Airway clearance products     10,714       8,775  
    Total   $ 61,268     $ 61,088  
                 
    Percentage of total revenue            
    Lymphedema products     83 %     86 %
    Airway clearance products     17 %     14 %
    Total     100 %     100 %
                     

    The following table contains a reconciliation of net loss to Adjusted EBITDA for the three months ended March 31, 2025 and 2024, as well as the dollar and percentage change between the comparable periods:

                             
    Tactile Systems Technology, Inc.
    Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA
    (Unaudited)
                             
        Three Months Ended   Increase
        March 31,   (Decrease)
    (Dollars in thousands)   2025   2024   $   %
    Net loss   $ (2,974 )   $ (2,209 )   $ (765 )   35 %
    Interest (income) expense, net     (471 )     (146 )     (325 )   N.M. %
    Income tax benefit     (1,097 )     (600 )     (497 )   83 %
    Depreciation and amortization     1,726       1,634       92     6 %
    Stock-based compensation     2,066       2,039       27     1 %
    Executive transition costs     491       315       176     56 %
    Adjusted EBITDA   $ (259 )   $ 1,033     $ (1,292 )   (125 )%
                                   

    The following table contains a reconciliation of net income to Adjusted EBITDA for the year ended December 31, 2024:

           
    Tactile Systems Technology, Inc.
    Reconciliation of Net income to Non-GAAP Adjusted EBITDA
    (Unaudited)
           
        Year Ended
    (Dollars in thousands)   December 31, 2024
    Net income   $ 16,960  
    Interest (income) expense, net     (1,299 )
    Income tax expense     6,529  
    Depreciation and amortization     6,793  
    Stock-based compensation     7,819  
    Executive transition costs     248  
    Adjusted EBITDA   $ 37,050  
             

    The following table contains a reconciliation of GAAP net income guidance range to the Adjusted EBITDA guidance range for the twelve months ended December 31, 2025:

                 
    Tactile Systems Technology, Inc.
    Reconciliation of FY 2025 GAAP Net Income to Adjusted EBITDA Guidance
    (Unaudited)
                 
        Twelve Months Ended
        December 31, 2025
    (Dollars in thousands)      Low      High
    Net income   $ 13,400     $ 14,800  
    Interest income, net     (2,400 )     (2,400 )
    Income tax expense     5,200       5,800  
    Depreciation and amortization     6,700       6,700  
    Stock-based compensation     8,600       8,600  
    Executive transition costs     500       500  
    Adjusted EBITDA   $ 32,000     $ 34,000  
     

    Investor Inquiries:
    Sam Bentzinger
    Gilmartin Group
    investorrelations@tactilemedical.com

    The MIL Network –

  • MIL-OSI: EverQuote Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    • First Quarter Revenue Growth of 83% Year-Over-Year to $166.6 million
    • First Quarter Variable Marketing Dollars Increase of 52% Year-Over-Year to $46.9 million
    • Delivers First Quarter Net Income of $8.0 million and Record Adjusted EBITDA of $22.5 million

    CAMBRIDGE, Mass., May 05, 2025 (GLOBE NEWSWIRE) — EverQuote, Inc. (Nasdaq: EVER), a leading online insurance marketplace, today announced financial results for the first quarter ended March 31, 2025.

    “2025 is off to a strong start, building on our momentum from last year, and we once again achieved record financial performance across our key financial metrics of revenue, Variable Marketing Dollars or VMD and Adjusted EBITDA,” said Jayme Mendal, CEO of EverQuote. “Our scale and technology are enabling us to build a competitive moat and leverage a data advantage as we extend AI throughout our traffic and distribution systems. We are delivering strong performance to carriers and agents, and they are rewarding us with increased budgets, which supports continued traffic growth. We remain steadfast in our focus to become the leading growth partner for P&C insurance providers.”

    “The first quarter marks our fourth consecutive quarter of record revenue and Adjusted EBITDA performance, and we ended the quarter with a strong cash position and no debt outstanding,” said Joseph Sanborn, CFO of EverQuote. “EverQuote remains resilient to macro conditions and is well positioned for continued success as a broad number of carriers are benefiting from healthy combined ratios and are focusing on driving policy growth. Given this favorable environment, we believe that the long-term thesis of insurance advertising spend shifting to digital channels remains firmly intact.”

    First Quarter 2025 Highlights:
    (Unless otherwise noted, all comparisons are relative to the first quarter of 2024).

    • Total revenue grew 83% to $166.6 million.
    • Automotive insurance vertical revenue of $152.7 million, an increase of 97%.
    • Home and renters insurance vertical revenue of $13.9 million, an increase of 10%.
    • VMD grew to $46.9 million, compared to $30.8 million, an increase of 52%.
    • GAAP net income of $8.0 million, compared to a GAAP net income of $1.9 million. GAAP net income in Q1 2025 included a non-cash charge of $7.9 million related to divesting the remaining P&C direct-to-consumer agency assets to settle an existing legal matter with the former owners of PolicyFuel, which was acquired in 2021.
    • Adjusted EBITDA of $22.5 million, compared to $7.6 million.
    • Operating cash flow of $23.3 million, compared to $10.4 million.
    • Ended the quarter with $125.0 million in cash and cash equivalents, an increase of 22% from $102.1 million at the end of the fourth quarter of 2024.

    Second Quarter 2025 Outlook:

    • Revenue of $155.0 – $160.0 million, representing 34% year-over-year growth at the midpoint.
    • Variable Marketing Dollars of $45.0 – $47.0 million, representing 26% year-over-year growth at the midpoint.
    • Adjusted EBITDA of $20.0 – $22.0 million, representing 62% year-over-year growth at the midpoint.

    With respect to the Company’s expectations under “Second Quarter 2025 Outlook” above, the Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income (loss) in this press release because the Company does not provide guidance for stock-based compensation expense, depreciation and amortization expense, legal settlement expense, interest income, and income taxes on a consistent basis as the Company is unable to quantify these amounts without unreasonable efforts, which would be required to include a reconciliation of Adjusted EBITDA to GAAP net income (loss). In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors.

    Conference Call and Webcast Information

    EverQuote will host a conference call and live webcast to discuss its first quarter 2025 financial results at 4:30 p.m. Eastern Time today, May 5, 2025. To access the conference call, dial Toll Free: +1 (800) 715-9871 for the US, or +1 (646) 307-1963 for international callers, and provide conference ID 4210704. The live webcast and replay will be available on the Investors section of the Company’s website at https://investors.everquote.com.

    Safe Harbor Statement

    This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements regarding our future results of operations and financial position, business strategy and plans, and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “should,” “expects,” “might,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “seek,” “would” or “continue,” or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, liquidity and results of operations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions described in our annual report on Form 10-K, our quarterly reports on Form 10-Q and our current reports on Form 8-K as filed with the Securities and Exchange Commission (“SEC”) from time to time. Additional information will also be set forth in the Company’s annual report on Form 10-Q for the quarter ended March 31, 2025, which will be filed with the SEC. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. While we may elect to update these forward-looking statements at some point in the future, whether as a result of any new information, future events, or otherwise, we have no current intention of doing so except to the extent required by applicable law. Some of the key factors that could cause actual results to differ include: (1) our dependence on revenue from the property and casualty insurance industries, and specifically automotive insurance, and exposure to risks related to those industries; (2) our dependence on our relationships with insurance providers with no long-term minimum financial commitments; (3) our reliance on a small number of insurance providers for a significant portion of our revenue; (4) our dependence on third-party media sources for a significant portion of visitors to our websites and marketplace; (5) our ability to attract consumers searching for insurance to our websites and marketplace through Internet search engines, display advertising, social media, content-based online advertising and other online sources; (6) any limitations restricting our ability to market to users or collect and use data derived from user activities; (7) risks related to cybersecurity incidents or other network disruptions; (8) risks related to the use of artificial intelligence; (9) our ability to develop new and enhanced products and services to attract and retain consumers and insurance providers, and to successfully monetize them; (10) the impact of competition in our industry and innovation by our competitors; (11) our ability to hire and retain necessary qualified employees to expand our operations; (12) our ability to stay abreast of and comply with new or modified laws and regulations that currently apply or become applicable to our business, including with respect to the insurance industry, telemarketing restrictions and data privacy requirements; (13) our ability to protect our intellectual property rights and maintain and build our brand; (14) our future financial performance, including our expectations regarding our revenue, cost of revenue, variable marketing dollars, operating expenses, cash flows and ability to achieve, and maintain, future profitability; (15) our ability to properly collect, process, store, share, disclose and use consumer information and other data; (16) any impacts of economic developments, including inflation and potential tariffs; and (17) the future trading prices of our Class A common stock.

    About EverQuote

    EverQuote operates a leading online marketplace for insurance shopping, connecting consumers with insurance provider customers, which includes both carriers and agents. Our vision is to be the leading growth partner for property and casualty, or P&C, insurance providers. Our results-driven marketplace, powered by our proprietary data and technology platform, is improving the way insurance providers attract and connect with consumers shopping for insurance.

    For more information, visit https://investors.everquote.com and follow on LinkedIn.

    Investor Relations Contact

    Brinlea Johnson
    The Blueshirt Group
    (415) 269-2645

     
    EVERQUOTE, INC.
    STATEMENTS OF OPERATIONS
     
        Three Months Ended March 31,  
        2025     2024  
        (in thousands except per share)  
    Revenue   $ 166,632     $ 91,065  
    Cost and operating expenses(1):                
    Cost of revenue     5,380       5,041  
    Sales and marketing     129,430       70,784  
    Research and development     7,485       6,844  
    General and administrative     8,440       6,630  
    Legal settlement     7,900       —  
    Total cost and operating expenses     158,635       89,299  
    Income from operations     7,997       1,766  
    Other income (expense):                
    Interest income     708       386  
    Other income (expense), net     (31 )     41  
    Total other income, net     677       427  
    Income before income taxes     8,674       2,193  
    Income tax expense     (684 )     (286 )
    Net income   $ 7,990     $ 1,907  
    Net income per share:                
    Basic   $ 0.22     $ 0.06  
    Diluted   $ 0.21     $ 0.05  
    Weighted average common shares outstanding, basic and diluted:                
    Basic     35,879       34,387  
    Diluted     37,667       35,608  
                     
    (1) Amounts include stock-based compensation expense, as follows:          
        Three Months Ended March 31,  
        2025     2024  
        (in thousands)  
    Cost of revenue   $ 9     $ 36  
    Sales and marketing     1,565       1,594  
    Research and development     1,370       1,312  
    General and administrative     2,476       1,576  
        $ 5,420     $ 4,518  
    EVERQUOTE, INC.
    BALANCE SHEET DATA
     
        March 31,     December 31,  
        2025     2024  
        (in thousands)  
    Cash and cash equivalents   $ 124,968     $ 102,116  
    Working capital     113,927       99,131  
    Total assets     232,145       210,530  
    Total liabilities     82,645       75,162  
    Total stockholders’ equity     149,500       135,368  
    EVERQUOTE, INC.
    STATEMENTS OF CASH FLOWS
     
        Three Months Ended March 31,  
        2025     2024  
        (in thousands)  
    Cash flows from operating activities:                
    Net income   $ 7,990     $ 1,907  
    Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation and amortization expense     1,221       1,263  
    Stock-based compensation expense     5,420       4,518  
    Provision for bad debt     —       18  
    Unrealized foreign currency transaction (gains) losses     35       (4 )
    Changes in operating assets and liabilities:                
    Accounts receivable     (457 )     (17,123 )
    Prepaid expenses and other current assets     496       972  
    Commissions receivable, current and non-current     1,014       1,323  
    Operating lease right-of-use assets     267       497  
    Accounts payable     (2,765 )     15,868  
    Accrued expenses and other current liabilities     10,018       1,870  
    Deferred revenue     335       (2 )
    Operating lease liabilities     (268 )     (667 )
    Net cash provided by operating activities     23,306       10,440  
    Cash flows from investing activities:                
    Acquisition of property and equipment, including costs capitalized for development of internal-use software     (1,133 )     (770 )
    Net cash used in investing activities     (1,133 )     (770 )
    Cash flows from financing activities:                
    Proceeds from exercise of stock options     1,962       1,428  
    Tax withholding payments related to net share settlement     (1,293 )     (429 )
    Net cash provided by financing activities     669       999  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash     10       (5 )
    Net increase in cash, cash equivalents and restricted cash     22,852       10,664  
    Cash, cash equivalents and restricted cash at beginning of period     102,116       37,956  
    Cash, cash equivalents and restricted cash at end of period   $ 124,968     $ 48,620  

    EVERQUOTE, INC.
    FINANCIAL AND OPERATING METRICS

    Revenue by vertical:

        Three Months Ended March 31,     Change  
        2025     2024     %  
        (in thousands)          
    Automotive   $ 152,715     $ 77,538       97.0 %
    Home and renters     13,904       12,689       9.6 %
    Other     13       838       -98.4 %
    Total revenue   $ 166,632     $ 91,065       83.0 %

    Other financial and non-financial metrics:

        Three Months Ended March31,     Change  
        2025     2024     %  
        (in thousands)          
    Income from operations   $ 7,997     $ 1,766       352.8 %
    Net income   $ 7,990     $ 1,907       319.0 %
    Variable marketing dollars   $ 46,860     $ 30,818       52.1 %
    Adjusted EBITDA(1)   $ 22,507     $ 7,588       196.6 %

    (1) Adjusted EBITDA is a non-GAAP measure. Please see “EverQuote, Inc. Reconciliation of Non-GAAP Measures to GAAP” below for more information.

    To supplement the Company’s financial statements presented in accordance with GAAP and to provide investors with additional information regarding EverQuote’s financial results, the Company has presented Adjusted EBITDA as a non-GAAP financial measure. This non-GAAP financial measure is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies.

    The Company defines Adjusted EBITDA as net income (loss), excluding the impact of stock-based compensation expense; depreciation and amortization expense; legal settlement expense; interest income; and income taxes. The most directly comparable GAAP measure is net income (loss). The Company monitors and presents Adjusted EBITDA because it is a key measure used by management and the board of directors to understand and evaluate operating performance, to establish budgets and to develop operational goals for managing EverQuote’s business. In particular, the Company believes that excluding the impact of these items in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of EverQuote’s core operating performance.

    The Company uses Adjusted EBITDA to evaluate EverQuote’s operating performance and trends and make planning decisions. The Company believes that this non-GAAP financial measure helps identify underlying trends in EverQuote’s business that could otherwise be masked by the effect of the items that the Company excludes in the calculations of Adjusted EBITDA. Accordingly, the Company believes that this financial measure provides useful information to investors and others in understanding and evaluating EverQuote’s operating results, enhancing the overall understanding of the Company’s past performance and future prospects.

    The Company’s non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), which is the most directly comparable financial measure calculated and presented in accordance with GAAP. In addition, other companies may use other measures to evaluate their performance, which could reduce the usefulness of the Company’s non-GAAP financial measures as tools for comparison.

    The following table reconciles Adjusted EBITDA to net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP.

     
    EVERQUOTE, INC.
    RECONCILIATION OF NON-GAAP MEASURES TO GAAP
     
        Three Months Ended March 31,  
        2025     2024  
        (in thousands)  
    Net income   $ 7,990     $ 1,907  
    Stock-based compensation     5,420       4,518  
    Depreciation and amortization     1,221       1,263  
    Legal settlement     7,900       —  
    Interest income     (708 )     (386 )
    Income tax expense     684       286  
    Adjusted EBITDA   $ 22,507     $ 7,588  

    The MIL Network –

  • MIL-OSI: James River Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    PEMBROKE, Bermuda, May 05, 2025 (GLOBE NEWSWIRE) — James River Group Holdings, Ltd. (“James River” or the “Company”) (NASDAQ: JRVR) reported net income from continuing operations available to common shareholders of $9.0 million ($0.18 per diluted share) and adjusted net operating income1 of $9.1 million ($0.19 per diluted share) for the first quarter of 2025.

      Three Months Ended
    March 31,    		   Three Months Ended
    March 31,
    ($ in thousands, except for share data)   2025     per diluted
    share    		     2024     per diluted
    share
    Net income from continuing operations available to common shareholders $ 9,019     $ 0.18     $ 20,883     $ 0.53  
    Net loss from discontinued operations2   (1,414 )   $ (0.02 )     (8,105 )   $ (0.18 )
    Net income available to common shareholders   7,605     $ 0.16       12,778     $ 0.35  
    Adjusted net operating income1   9,102     $ 0.19       14,832     $ 0.39  
                                   

    Unless specified otherwise, all underwriting performance ratios presented herein are for our continuing operations and business not subject to retroactive reinsurance accounting.

    First Quarter 2025 Highlights:

    • Annualized adjusted net operating return on tangible common equity1 of 11.5% and year to date growth in tangible common equity1 of 7.1%.
    • E&S segment combined ratio of 91.5% and renewal rate change of 7.8%, with the majority of underwriting divisions reporting pricing increases.
    • Specialty Admitted Insurance segment combined ratio of 102.1%, with fronting and program gross written premium declining 21.3%.
    • De minimis overall prior year reserve activity. Group combined ratio of 99.5%.
    • Final independent accounting firm determination in the purchase price adjustment dispute related to the sale of JRG Reinsurance Company Ltd. (“JRG Re”), finding in favor of the Company on $53.6 million of the aggregate $54.1 million of items in dispute, resulting in a small downward adjustment to the purchase price of ($0.5) million. This is reflected in the first quarter results.

    Frank D’Orazio, the Company’s Chief Executive Officer, commented on the first quarter, “Coming out of 2024, our first quarter results show progress in strengthening our underwriting performance and positioning the franchise for long-term, sustainable profitability. Our disciplined approach to risk selection, combined with the actions taken over the past year to strengthen our reserve position, are showing tangible results. As we move forward, we remain focused on delivering value to shareholders as we take advantage of the attractive E&S underwriting environment while closely managing our expenses.”

    • E&S Segment Highlights:
      • For the first quarter of 2025, the segment’s gross written premium was largely flat to the comparable quarter last year.
      • Renewal rate increases across the segment were 7.8% during the quarter.
      • The segment continued to experience strong submission growth, with the 6% growth in renewal submissions exceeding 2024 levels.
      • There was de minimis favorable reserve development during the quarter.
    • Specialty Admitted Insurance Segment Highlights:
      • Gross written premium for the fronting and program business declined 21.3% compared to the prior year quarter, as the Company manages this segment to retain minimal risk. This excludes the impact of our large workers’ compensation program and Individual Risk Workers’ Compensation book, which were non-renewed in the second quarter of 2023 and sold via a renewal rights transaction in the third quarter of 2023, respectively. Overall, premium declined 30.7%
      • While the fronting business of the segment is transactional in nature, the Company remains focused on managing its expenses in this segment over the course of the calendar year.
      • There was de minimis prior year reserve movement during the quarter.

    First Quarter 2025 Operating Results

    • Gross written premium of $294.4 million, consisting of the following:
      Three Months Ended
    March 31,    		  
    ($ in thousands) 2025   2024   % Change
    Excess and Surplus Lines $ 213,243   $ 213,691   0 %
    Specialty Admitted Insurance   81,118     117,119   (31 )%
      $ 294,361   $ 330,810   (11 )%
                   
    • Net written premium of $128.0 million, consisting of the following:
      Three Months Ended
    March 31,    		    
    ($ in thousands) 2025   2024   % Change  
    Excess and Surplus Lines $ 115,079   $ 117,425   (2 )%
    Specialty Admitted Insurance   12,877     20,747   (38 )%
      $ 127,956   $ 138,172   (7 )%
                     
    • Net earned premium of $151.9 million, consisting of the following:
      Three Months Ended
    March 31,    		    
    ($ in thousands) 2025   2024   % Change  
    Excess and Surplus Lines $ 137,028   $ 145,623   (6 )%
    Specialty Admitted Insurance   14,874     26,068   (43 )%
      $ 151,902   $ 171,691   (12 )%
                     
    • As cited above, the first quarter of 2025 included de minimis favorable reserve development in each of the two insurance segments. There remains $116.2 million of aggregate limit on the two E&S segment retroactive reinsurance structures which cover the majority of James River’s E&S segment net reserves for James River’s E&S segment for accident years 2010 -2023.
    • Pre-tax favorable (unfavorable) reserve development by segment on business not subject to retroactive reinsurance accounting for loss portfolio transfers was as follows:
      Three Months Ended
    March 31,
    ($ in thousands)  2025    2024 
    Excess and Surplus Lines $ 10   $ (40 )
    Specialty Admitted Insurance   121     438  
      $ 131   $ 398  
                 
    • Retroactive benefits of $1.9 million were recorded in loss and loss adjustment expenses during the first quarter and the total deferred retroactive reinsurance gain on the Balance Sheet is $56.0 million as of March 31, 2025.
    • The consolidated expense ratio was 32.7% for the first quarter of 2025, which was an increase from 28.9% in the prior year quarter. The expense ratio increase was primarily driven by higher compensation expenses on lower net earned premium.

    Investment Results
    Net investment income for the first quarter of 2025 was $20.0 million, a decline of 11.6% compared to $22.6 million in the prior year quarter. The comparable decline in income was primarily due to a smaller asset base following the funding of retroactive reinsurance structures for the E&S segment which were purchased in the second half of 2024.

    The Company’s net investment income consisted of the following:

      Three Months Ended
    March 31,    		    
    ($ in thousands) 2025   2024   % Change
    Private Investments   200     (145 )   NM  
    All Other Investments   19,808     22,777     (13 )%
    Total Net Investment Income $ 20,008   $ 22,632     (12 )%
                       

    The Company’s annualized gross investment yield on average fixed maturity, bank loan and equity securities for the three months ended March 31, 2025 was 4.6% (versus 4.8% for the three months ended March 31, 2024).

    Net realized and unrealized losses on investments of ($1.4) million for the three months ended March 31, 2025 compared to net realized and unrealized gains on investments of $4.6 million in the prior year quarter. The majority of the realized and unrealized losses during the quarter were related to realized losses on sales in our bank loan portfolio, partially offset by increases in the fair value of our preferred stock portfolio.

    Discontinued Operations

    In connection with the process outlined in the Stock Purchase Agreement, and as previously disclosed, the buyer of JRG Re claimed a $54.1 million downward adjustment to the closing purchase price, which the Company disputed. As per the Stock Purchase Agreement, the disputed items (totaling $54.1 million) were submitted to an independent accounting firm for final resolution. On April 18, 2025, the independent accounting firm issued its final determination which resulted in a small downward adjustment to the closing purchase price of $0.5 million. The determination by the independent accounting firm is final and binding with regards to the purchase price.

    Capital Management

    The Company announced that its Board of Directors declared a cash dividend of $0.01 per common share. This dividend is payable on Monday, June 30, 2025 to all shareholders of record on Monday, June 9, 2025.

    Tangible Common Equity Per Share

    Shareholders’ equity of $484.5 million at March 31, 2025 increased 5.1% compared to shareholders’ equity of $460.9 million at December 31, 2024. Tangible common equity3 per share of $7.11 at March 31, 2025 increased 6.6% compared to tangible common equity per share of $6.67 at December 31, 2024, due to net income from continuing operations, partially offset by a small net loss from discontinued operations. Other comprehensive income benefited by $14.3 million during the first quarter of 2025, improving AOCI to ($55.7) million due to a decline in interest rates.

    Conference Call

    James River will hold a conference call to discuss its first quarter results tomorrow, May 6, 2025 at 8:00 a.m. Eastern Time. Investors may access the conference call by dialing (800) 715-9871, Conference ID 8501569, or via the internet by visiting www.jrvrgroup.com and clicking on the “Investor Relations” link. A webcast replay of the call will be available by visiting the company website.

    Forward-Looking Statements

    This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, should, intend, project, anticipate, plan, estimate, guidance or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and uncertainties, they include, among others, the following: the inherent uncertainty of estimating reserves and the possibility that incurred losses may be greater than our estimate used to compute loss and loss adjustment expense reserves; inaccurate estimates and judgments in our risk management may expose us to greater risks than intended; downgrades in the financial strength rating or outlook of our regulated insurance subsidiaries impacting our competitive position and ability to attract and retain insurance business that our subsidiaries write and ultimately our financial condition; the potential loss of key members of our management team or key employees, and our ability to attract and retain personnel; adverse economic and competitive factors resulting in the sale of fewer policies than expected or an increase in the frequency or severity of claims, or both; the impact of a higher than expected inflationary environment on our reserves, loss adjustment expenses, the values of our investments and investment returns, and our compensation expenses; exposure to credit risk, interest rate risk and other market risk in our investment portfolio and our reinsurers; reliance on a select group of brokers and agents for a significant portion of our business and the impact of our potential failure to maintain such relationships; reliance on a select group of customers for a significant portion of our business and the impact of our potential failure to maintain, or decision to terminate, such relationships; our ability to obtain insurance and reinsurance coverage at prices and on terms that allow us to transfer risk, adequately protect our Company against financial loss and that supports our growth plans; losses resulting from reinsurance counterparties failing to pay us on reinsurance claims, insurance companies with whom we have a fronting arrangement failing to pay us for claims, or a former customer with whom we have an indemnification arrangement failing to perform its reimbursement obligations, and our potential inability to demand or maintain adequate collateral to mitigate such risks; the inherent uncertainty of estimating reinsurance recoverable on unpaid losses and the possibility that reinsurance may be less than our estimate of reinsurance recoverable on unpaid losses; inadequacy of premiums we charge to compensate us for our losses incurred; changes in laws or government regulation, including tax or insurance laws and regulations; changes in U.S. tax laws (including associated regulations) and the interpretation of certain provisions applicable to insurance/reinsurance businesses with U.S. and non-U.S. operations, which may be retroactive and could have a significant effect on us including, among other things, by potentially increasing our tax rate, as well as on our shareholders; in the event we did not qualify for the insurance company exception to the passive foreign investment company (“PFIC”) rules and were therefore considered a PFIC, there could be material adverse tax consequences to an investor that is subject to U.S. federal income taxation; the Company or its foreign subsidiary becoming subject to U.S. federal income taxation; a failure of any of the loss limitations or exclusions we utilize to shield us from unanticipated financial losses or legal exposures, or other liabilities; losses from catastrophic events, such as natural disasters and terrorist acts, which substantially exceed our expectations and/or exceed the amount of reinsurance we have purchased to protect us from such events; potential effects on our business of emerging claim and coverage issues; the potential impact of internal or external fraud, operational errors, systems malfunctions or cyber security incidents; our ability to manage our growth effectively; failure to maintain effective internal controls in accordance with the Sarbanes-Oxley Act of 2002, as amended; changes in our financial condition, regulations or other factors that may restrict our subsidiaries’ ability to pay us dividends; and an adverse result in any litigation or legal proceedings we are or may become subject to. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those in the forward-looking statements, is contained in our filings with the U.S. Securities and Exchange Commission (“SEC”), including our most recently filed Annual Report on Form 10-K. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

    Non-GAAP Financial Measures

    In presenting James River Group Holdings, Ltd.’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (“GAAP”). Such measures, including underwriting (loss) profit, adjusted net operating (loss) income, tangible equity, tangible common equity, and adjusted net operating return on tangible equity (which is calculated as annualized adjusted net operating income divided by the average quarterly tangible equity balances in the respective period), are referred to as non-GAAP measures. These non-GAAP measures may be defined or calculated differently by other companies. These measures should not be viewed as a substitute for those measures determined in accordance with GAAP. Reconciliations of such measures to the most comparable GAAP figures are included at the end of this press release.

    About James River Group Holdings, Ltd.

    James River Group Holdings, Ltd. is a Bermuda-based insurance holding company that owns and operates a group of specialty insurance companies. The Company operates in two specialty property-casualty insurance segments: Excess and Surplus Lines and Specialty Admitted Insurance. Each of the Company’s regulated insurance subsidiaries are rated “A-” (Excellent) by A.M. Best Company.

    Visit James River Group Holdings, Ltd. on the web at www.jrvrgroup.com

    For more information contact:

    Zachary Shytle
    Senior Analyst, Investments and Investor Relations
    980-249-6848
    InvestorRelations@james-river-group.com

     
    James River Group Holdings, Ltd. and Subsidiaries
    Condensed Consolidated Balance Sheet Data (Unaudited)
     
    ($ in thousands, except for share data)  March 31,
    2025    		   December 31,
    2024
    ASSETS      
    Invested assets:      
    Fixed maturity securities, available-for-sale, at fair value $ 1,259,627   $ 1,189,733
    Equity securities, at fair value   87,746     86,479
    Bank loan participations, at fair value   144,014     142,410
    Short-term investments   79,091     97,074
    Other invested assets   52,768     36,700
    Total invested assets   1,623,246     1,552,396
           
    Cash and cash equivalents   279,427     362,345
    Restricted cash equivalents (a)   29,012     28,705
    Accrued investment income   10,567     10,534
    Premiums receivable and agents’ balances, net   205,965     243,882
    Reinsurance recoverable on unpaid losses, net   1,984,292     1,996,913
    Reinsurance recoverable on paid losses   127,627     101,210
    Deferred policy acquisition costs   27,844     30,175
    Goodwill and intangible assets   214,190     214,281
    Other assets   446,845     466,635
    Total assets $ 4,949,015   $ 5,007,076
           
    LIABILITIES AND SHAREHOLDERS’ EQUITY      
    Reserve for losses and loss adjustment expenses $ 3,081,540   $ 3,084,406
    Unearned premiums   526,506     572,034
    Funds held (a)   25,157     25,157
    Deferred reinsurance gain   56,042     57,970
    Senior debt   225,800     200,800
    Junior subordinated debt   104,055     104,055
    Accrued expenses   39,196     53,178
    Other liabilities   273,124     315,446
    Total liabilities   4,331,420     4,413,046
           
    Series A redeemable preferred shares   133,115     133,115
    Total shareholders’ equity   484,480     460,915
    Total liabilities, Series A redeemable preferred shares, and shareholders’ equity $ 4,949,015   $ 5,007,076
           
    Tangible equity (b) $ 459,447   $ 437,719
    Tangible equity per share (b) $ 7.73   $ 7.40
    Tangible common equity per share (b) $ 7.11   $ 6.67
    Shareholders’ equity per share $ 10.56   $ 10.10
    Common shares outstanding   45,892,706     45,644,318
           
    (a) Restricted cash equivalents and the funds held liability includes funds posted by the Company to a trust account for the benefit of a third party administrator handling the claims on the Rasier commercial auto policies in run-off. Such funds held in trust secure the Company’s obligations to reimburse the administrator for claims payments, and are primarily sourced from the collateral posted to the Company by Rasier and its affiliates to support their obligations under the indemnity agreements and the loss portfolio transfer reinsurance agreement with the Company.
    (b) See “Reconciliation of Non-GAAP Measures”      
     
    James River Group Holdings, Ltd. and Subsidiaries
    Condensed Consolidated Income Statement Data (Unaudited)
     
      Three Months Ended
    March 31,
    ($ in thousands, except for share data)   2025       2024  
    REVENUES      
    Gross written premiums $ 294,361     $ 330,810  
    Net written premiums   127,956       138,172  
           
    Net earned premiums   151,902       171,691  
    Net investment income   20,008       22,632  
    Net realized and unrealized (losses) gains on investments   (1,371 )     4,583  
    Other income   1,750       2,221  
    Total revenues   172,289       201,127  
           
    EXPENSES      
    Losses and loss adjustment expenses (a)   99,525       110,049  
    Other operating expenses   50,560       50,810  
    Other expenses   563       732  
    Interest expense   5,541       6,485  
    Intangible asset amortization and impairment   91       91  
    Total expenses   156,280       168,167  
    Income from continuing operations before income taxes   16,009       32,960  
    Income tax expense on continuing operations   5,021       9,452  
    Net income from continuing operations   10,988       23,508  
    Net loss from discontinued operations   (1,414 )     (8,105 )
    NET INCOME   9,574       15,403  
    Dividends on Series A preferred shares   (1,969 )     (2,625 )
    NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 7,605     $ 12,778  
    ADJUSTED NET OPERATING INCOME (b) $ 9,102     $ 14,832  
           
    INCOME (LOSS) PER COMMON SHARE      
    Basic      
    Continuing operations $ 0.20     $ 0.55  
    Discontinued operations $ (0.03 )   $ (0.21 )
      $ 0.17     $ 0.34  
    Diluted      
    Continuing operations (c) $ 0.18     $ 0.53  
    Discontinued operations $ (0.02 )   $ (0.18 )
      $ 0.16     $ 0.35  
           
    ADJUSTED NET OPERATING INCOME PER COMMON SHARE      
    Basic $ 0.20     $ 0.39  
    Diluted (c) $ 0.19     $ 0.39  
           
    Weighted-average common shares outstanding:      
    Basic   45,803,501       37,733,710  
    Diluted   59,659,075       44,638,969  
    Cash dividends declared per common share $ 0.01     $ 0.05  
           
    Ratios:      
    Loss ratio   66.8 %     66.4 %
    Expense ratio (d)   32.7 %     28.9 %
    Combined ratio   99.5 %     95.3 %
    Accident year loss ratio (e)   65.5 %     66.7 %
           
    (a) Losses and loss adjustment expenses include benefits of $1.9 million and $4.0 million for deferred retroactive reinsurance gains (benefits) for the three months ended March 31, 2025 and 2024, respectively.
    (b) See “Reconciliation of Non-GAAP Measures”.
    (c) The outstanding Series A preferred shares were dilutive in both periods. Dividends on the Series A preferred shares were added back to the numerator of the calculation and common shares from an assumed conversion of the Series A preferred shares were included in the denominator.
    (d) Calculated with a numerator comprising other operating expenses less gross fee income (in specific instances when the Company is not retaining insurance risk) included in “Other income” in our Condensed Consolidated Income Statements of $0.8 million and $1.3 million for the three months ended March 31, 2025 and 2024, respectively.
    (e) Ratio of losses and loss adjustment expenses for the current accident year, excluding development on prior accident year reserves, to net earned premiums for the current year (excluding net earned premium adjustments on certain reinsurance treaties with reinstatement premiums associated with prior years).
     
    James River Group Holdings, Ltd. and Subsidiaries
    Segment Results
     
    EXCESS AND SURPLUS LINES
     
      Three Months Ended
    March 31,    		    
    ($ in thousands)   2025       2024     % Change
    Gross written premiums $ 213,243     $ 213,691     (0.2 )%
    Net written premiums $ 115,079     $ 117,425     (2.0 )%
               
    Net earned premiums $ 137,028     $ 145,623     (5.9 )%
    Losses and loss adjustment expenses excluding retroactive reinsurance   (88,804 )     (93,605 )   (5.1 )%
    Underwriting expenses   (36,566 )     (33,527 )   9.1 %
    Underwriting profit (a) $ 11,658     $ 18,491     (37.0 )%
               
    Ratios:          
    Loss ratio   64.8 %     64.3 %    
    Expense ratio   26.7 %     23.0 %    
    Combined ratio   91.5 %     87.3 %    
    Accident year loss ratio (b)   63.4 %     64.3 %    
               
    (a) See “Reconciliation of Non-GAAP Measures”.
    (b) Ratio of losses and loss adjustment expenses for the current accident year, excluding development on prior accident year reserves, to net earned premiums for the current year (excluding net earned premium adjustments on certain reinsurance treaties with reinstatement premiums associated with prior years).
       
    SPECIALTY ADMITTED INSURANCE  
       
      Three Months Ended
    March 31,    		      
    ($ in thousands)   2025       2024     % Change  
    Gross written premiums $ 81,118     $ 117,119     (30.7 )%
    Net written premiums $ 12,877     $ 20,747     (37.9 )%
                 
    Net earned premiums $ 14,874     $ 26,068     (42.9 )%
    Losses and loss adjustment expenses   (12,649 )     (20,446 )   (38.1 )%
    Underwriting expenses   (2,531 )     (4,836 )   (47.7 )%
    Underwriting profit (a), (b) $ (306 )   $ 786     —  
                 
    Ratios:            
    Loss ratio   85.0 %     78.4 %      
    Expense ratio   17.1 %     18.6 %      
    Combined ratio   102.1 %     97.0 %      
    Accident year loss ratio   85.9 %     80.1 %      
                 
    (a) See “Reconciliation of Non-GAAP Measures”.            
    (b) Underwriting results for the three months ended March 31, 2025 and 2024 include gross fee income of $4.3 million and $5.3 million, respectively.  
       

    Underwriting Performance Ratios

    The following table provides the underwriting performance ratios of the Company’s continuing operations inclusive of the business subject to retroactive reinsurance accounting. There is no economic impact to the Company over the life of a retroactive reinsurance contract so long as any additional losses subject to the contract are within the limit of the contract and the counterparty performs under the contract. Retroactive reinsurance accounting is not indicative of our current and ongoing operations. Management believes that providing loss ratios and combined ratios on business not subject to retroactive reinsurance accounting gives the users of our financial statements useful information in evaluating our current and ongoing operations.

      Three Months Ended
    March 31,
      2025   2024
    Excess and Surplus Lines:      
    Loss Ratio 64.8 %   64.3 %
    Impact of retroactive reinsurance (1.4 )%   (2.7 )%
    Loss Ratio including impact of retroactive reinsurance 63.4 %   61.6 %
           
    Combined Ratio 91.5 %   87.3 %
    Impact of retroactive reinsurance (1.4 )%   (2.7 )%
    Combined Ratio including impact of retroactive reinsurance 90.1 %   84.6 %
           
    Consolidated:      
    Loss Ratio 66.8 %   66.4 %
    Impact of retroactive reinsurance (1.3 )%   (2.3 )%
    Loss Ratio including impact of retroactive reinsurance 65.5 %   64.1 %
           
    Combined Ratio 99.5 %   95.3 %
    Impact of retroactive reinsurance (1.3 )%   (2.3 )%
    Combined Ratio including impact of retroactive reinsurance 98.2 %   93.0 %
               

    RECONCILIATION OF NON-GAAP MEASURES

    Underwriting Profit

    The following table reconciles the underwriting profit by individual operating segment and for the entire Company to consolidated income from continuing operations before taxes. We believe that the disclosure of underwriting profit by individual segment and of the Company as a whole is useful to investors, analysts, rating agencies and other users of our financial information in evaluating our performance because our objective is to consistently earn underwriting profits. We evaluate the performance of our segments and allocate resources based primarily on underwriting profit. We define underwriting profit as net earned premiums and gross fee income (in specific instances when the Company is not retaining insurance risk) less losses and loss adjustment expenses on business from continuing operations not subject to retroactive reinsurance accounting and other operating expenses. Other operating expenses include the underwriting, acquisition, and insurance expenses of the operating segments and, for consolidated underwriting profit, the expenses of the Corporate and Other segment. Our definition of underwriting profit may not be comparable to that of other companies.

      Three Months Ended
    March 31,
    ($ in thousands)   2025       2024  
    Underwriting profit of the operating segments:      
    Excess and Surplus Lines $ 11,658     $ 18,491  
    Specialty Admitted Insurance   (306 )     786  
    Total underwriting profit of operating segments   11,352       19,277  
    Other operating expenses of the Corporate and Other segment   (10,631 )     (11,137 )
    Underwriting profit (a)   721       8,140  
    Losses and loss adjustment expenses – retroactive reinsurance   1,928       4,002  
    Net investment income   20,008       22,632  
    Net realized and unrealized gains on investments   (1,371 )     4,583  
    Other income (expense)   355       179  
    Interest expense   (5,541 )     (6,485 )
    Amortization of intangible assets   (91 )     (91 )
    Income from continuing operations before taxes $ 16,009     $ 32,960  
           
    (a) Included in underwriting results for the three months ended March 31, 2025 and 2024 is gross fee income of $4.3 million and $5.3 million, respectively.
     

    Adjusted Net Operating Income

    We define adjusted net operating income as income available to common shareholders excluding a) income (loss) from discontinued operations, b) the impact of retroactive reinsurance accounting, c) net realized and unrealized gains (losses) on investments, d) certain non-operating expenses such as professional service fees related to certain lawsuits, various strategic initiatives, and the filing of registration statements for the offering of securities, e) severance costs associated with terminated employees, and f) deemed dividends recorded with the amendment of the Series A Preferred Shares. Adjusted net operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and our definition of adjusted net operating income may not be comparable to that of other companies.

    Our income available to common shareholders reconciles to our adjusted net operating income as follows:

      Three Months Ended March 31,
        2025       2024  
    ($ in thousands) Income
    Before
    Taxes    		   Net
    Income    		   Income
    Before
    Taxes    		   Net
    Income
    Income available to common shareholders $ 12,626     $ 7,605     $ 22,230     $ 12,778  
    Loss from discontinued operations   1,414       1,414       8,105       8,105  
    Losses and loss adjustment expenses – retroactive reinsurance   (1,928 )     (1,523 )     (4,002 )     (3,162 )
    Net realized and unrealized investment losses (gains)   1,371       1,083       (4,583 )     (3,621 )
    Other expenses   563       523       732       732  
    Adjusted net operating income $ 14,046     $ 9,102     $ 22,482     $ 14,832  
                                   

    Tangible Equity (per Share) and Tangible Common Equity (per Share)

    We define tangible equity as shareholders’ equity plus mezzanine Series A Preferred Shares and the deferred retroactive reinsurance gain less goodwill and intangible assets, net of amortization. Tangible equity per share represents tangible equity divided by the sum of total common shares outstanding plus the common shares resulting from an assumed conversion of the outstanding Series A Preferred Shares into common shares (at the conversion price effective as of the last day of the applicable period). We define tangible common equity as tangible equity less mezzanine Series A Preferred Shares and tangible common equity per share represents tangible common equity divided by the total common shares outstanding. Our definitions of tangible equity and tangible equity per share may not be comparable to that of other companies, and they should not be viewed as a substitute for shareholders’ equity and shareholders’ equity per share calculated in accordance with GAAP. We use tangible equity and tangible common equity internally to evaluate the strength of our balance sheet and to compare returns relative to this measure. The following table reconciles shareholders’ equity to tangible equity and tangible common equity for March 31, 2025, December 31, 2024, March 31, 2024, and December 31, 2023.

      March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024    		   December 31,
    2023
    ($ in thousands, except for share data)              
    Shareholders’ equity $ 484,480     $ 460,915     $ 539,537     $ 534,621  
    Plus: Series A redeemable preferred shares   133,115       133,115       144,898       144,898  
    Plus: Deferred reinsurance gain   56,042       57,970       16,731       20,733  
    Less: Goodwill and intangible assets   214,190       214,281       214,553       214,644  
    Tangible equity $ 459,447     $ 437,719     $ 486,613     $ 485,608  
    Less: Series A redeemable preferred shares   133,115       133,115       144,898       144,898  
    Tangible common equity $ 326,332     $ 304,604     $ 341,715     $ 340,710  
                   
    Common shares outstanding   45,892,706       45,644,318       37,822,340       37,641,563  
    Common shares from assumed conversion of Series A preferred shares   13,521,635       13,521,635       6,750,567       5,971,184  
    Common shares outstanding after assumed conversion of Series A preferred shares   59,414,341       59,165,953       44,572,907       43,612,747  
                   
    Equity per share:              
    Shareholders’ equity $ 10.56     $ 10.10     $ 14.27     $ 14.20  
    Tangible equity $ 7.73     $ 7.40     $ 10.92     $ 11.13  
    Tangible common equity $ 7.11     $ 6.67     $ 9.03     $ 9.05  

    _______________
    1 Adjusted net operating income, tangible common equity and adjusted net operating return on tangible common equity are non-GAAP financial measures. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” at the end of this press release.
    2 The Company closed the sale of JRG Reinsurance Company Ltd. on April 16, 2024. The full financials for our former Casualty Reinsurance segment have been classified to discontinued operations for all periods and includes the final adjustment determination to the closing purchase price pursuant to the Stock Purchase Agreement.
    3 Tangible common equity is a non-GAAP financial measures. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” at the end of this press release.

    The MIL Network –

  • MIL-OSI: James River Announces Excess and Surplus Lines Leadership Retirement and Succession Plan

    Source: GlobeNewswire (MIL-OSI)

    PEMBROKE, Bermuda, May 05, 2025 (GLOBE NEWSWIRE) — James River Group Holdings, Ltd. (“James River” or the “Company”) (NASDAQ: JRVR) announced today its plans for Todd Sutherland, current Senior Vice President, Management Liability within the Company’s Excess and Surplus Lines (“E&S”) segment, to succeed Richard Schmitzer as President of the E&S segment effective May 5, 2025. Mr. Schmitzer announced that he will step down as Chief Executive Officer of the E&S segment effective July 31, 2025, a position he has held since 2010, and retire during the fourth quarter of 2025 after more than 45 years in the insurance industry.

    “Richard Schmitzer has chosen to retire after a long and highly successful insurance career spanning over four decades,” said Frank D’Orazio, the Company’s Chief Executive Officer. “Under Richard’s leadership, we have built a meaningfully relevant and resilient E&S business. We are grateful for his many contributions to the organization and wish him well in his retirement.”

    “It has been an honor to serve as President and CEO of James River’s E&S segment, and I am very proud of our team, our relationship with the market and the franchise we have built,” said Mr. Schmitzer. “I am committed to working with Todd and the leadership team to achieve a seamless transition as we continue to execute on our strategic priorities and plans.”

    In his new role, Mr. Sutherland will report directly to Mr. D’Orazio and will remain based in Richmond, Virginia, the headquarters of the Company’s E&S segment. Concurrent with the succession plan, the title of E&S segment Chief Executive Officer will be retired in lieu of segment President.

    Mr. Sutherland joined James River in 2023 to establish the Management Liability division of the Company, aligned with efforts to drive diversified profitable growth across the E&S product portfolio. With over thirty years of industry experience, Mr. Sutherland previously served as Head of the US Central Zone at AXA XL (“AXA”) with oversight of a multi-billion-dollar portfolio of diversified property and casualty lines. Prior to AXA, Mr. Sutherland spent 13 years at Allied World Assurance Company, where he led the development and build out of the US Central Region across all commercial lines. Mr. Sutherland has also held underwriting management roles at Axis Capital and American International Group earlier in his career. He is a graduate of Miami University.

    “On behalf of our entire organization, I am very excited to announce our plan for Todd to become our next E&S segment President,” said Mr. D’Orazio. “Todd is a proven leader with a track record of building and leading substantial, profitable businesses at several specialty insurance organizations. Our history together, and his most recent assignment at James River, give me great confidence in his ability to lead and inspire our organization to achieve continued success and reach new heights in the years to come.”

    “Richard and his team have built a powerful franchise in the E&S marketplace, and I am thrilled to be in a position to lead the business as we continue to execute on our strategic plan of profitable growth,” said Mr. Sutherland. “I look forward to working with my colleagues across the Company as we deliver exceptional products and best in class service.”

    Forward Looking Statements

    This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, should, intend, project, anticipate, plan, estimate, guidance or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and uncertainties, they include, among others, the following: the inherent uncertainty of estimating reserves and the possibility that incurred losses may be greater than our estimate used to compute loss and loss adjustment expense reserves; inaccurate estimates and judgments in our risk management may expose us to greater risks than intended; downgrades in the financial strength rating or outlook of our regulated insurance subsidiaries impacting our competitive position and ability to attract and retain insurance business that our subsidiaries write and ultimately our financial condition; the potential loss of key members of our management team or key employees, and our ability to attract and retain personnel; adverse economic and competitive factors resulting in the sale of fewer policies than expected or an increase in the frequency or severity of claims, or both; the impact of a higher than expected inflationary environment on our reserves, loss adjustment expenses, the values of our investments and investment returns, and our compensation expenses; exposure to credit risk, interest rate risk and other market risk in our investment portfolio and our reinsurers; reliance on a select group of brokers and agents for a significant portion of our business and the impact of our potential failure to maintain such relationships; reliance on a select group of customers for a significant portion of our business and the impact of our potential failure to maintain, or decision to terminate, such relationships; our ability to obtain insurance and reinsurance coverage at prices and on terms that allow us to transfer risk, adequately protect our Company against financial loss and that supports our growth plans; losses resulting from reinsurance counterparties failing to pay us on reinsurance claims, insurance companies with whom we have a fronting arrangement failing to pay us for claims, or a former customer with whom we have an indemnification arrangement failing to perform its reimbursement obligations, and our potential inability to demand or maintain adequate collateral to mitigate such risks; the inherent uncertainty of estimating reinsurance recoverable on unpaid losses and the possibility that reinsurance may be less than our estimate of reinsurance recoverable on unpaid losses; inadequacy of premiums we charge to compensate us for our losses incurred; changes in laws or government regulation, including tax or insurance laws and regulations; changes in U.S. tax laws (including associated regulations) and the interpretation of certain provisions applicable to insurance/reinsurance businesses with U.S. and non-U.S. operations, which may be retroactive and could have a significant effect on us including, among other things, by potentially increasing our tax rate, as well as on our shareholders; in the event we did not qualify for the insurance company exception to the passive foreign investment company (“PFIC”) rules and were therefore considered a PFIC, there could be material adverse tax consequences to an investor that is subject to U.S. federal income taxation; the Company or its foreign subsidiary becoming subject to U.S. federal income taxation; a failure of any of the loss limitations or exclusions we utilize to shield us from unanticipated financial losses or legal exposures, or other liabilities; losses from catastrophic events, such as natural disasters and terrorist acts, which substantially exceed our expectations and/or exceed the amount of reinsurance we have purchased to protect us from such events; potential effects on our business of emerging claim and coverage issues; the potential impact of internal or external fraud, operational errors, systems malfunctions or cyber security incidents; our ability to manage our growth effectively; failure to maintain effective internal controls in accordance with the Sarbanes-Oxley Act of 2002, as amended; changes in our financial condition, regulations or other factors that may restrict our subsidiaries’ ability to pay us dividends; and an adverse result in any litigation or legal proceedings we are or may become subject to. Additional information about these risks and uncertainties, as well as others that may cause actual results to differ materially from those in the forward-looking statements, is contained in our filings with the U.S. Securities and Exchange Commission (“SEC”), including our most recently filed Annual Report on Form 10-K. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

    About James River Group Holdings, Ltd.

    James River Group Holdings, Ltd. is a Bermuda-based insurance holding company that owns and operates a group of specialty insurance companies. The Company operates in two specialty property-casualty insurance segments: Excess and Surplus Lines and Specialty Admitted Insurance. Each of the Company’s regulated insurance subsidiaries are rated “A-” (Excellent) by A.M. Best Company. Visit James River Group Holdings, Ltd. on the web at www.jrvrgroup.com.

    Zachary Shytle
    Senior Analyst, Investor Relations and Investments
    (980) 249-6848
    InvestorRelations@james-river-group.com

    The MIL Network –

  • MIL-OSI: Vimeo Q1 2025 Shareholder Letter Available on Company’s IR Site

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, May 05, 2025 (GLOBE NEWSWIRE) — Vimeo posted its first quarter 2025 shareholder letter on the investor relations section of its website at https://www.vimeo.com/investors. Vimeo will live stream a video conference to answer questions regarding its first quarter results today at 5:00 p.m. Eastern Time. This live stream will include disclosure of certain information, including forward-looking information, which may be material to an investor’s understanding of Vimeo’s business. The live stream will be open to the public at https://www.vimeo.com/investors.

    About Vimeo
    Vimeo (NASDAQ: VMEO) is the world’s most innovative video experience platform. We enable anyone to create high-quality video experiences to better connect and bring ideas to life. We proudly serve our community of millions of users – from creative storytellers to globally distributed teams at the world’s largest companies – whose videos receive billions of views each month. Learn more at www.vimeo.com.

    Contact Us

    Vimeo Investor Relations
    ir@vimeo.com

    Vimeo Communications
    Ronda Morra
    press@vimeo.com

    The MIL Network –

  • MIL-OSI: Palomar Holdings, Inc. Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    LA JOLLA, Calif., May 05, 2025 (GLOBE NEWSWIRE) — Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) reported net income of $42.9 million, or $1.57 per diluted share, for the first quarter of 2025 compared to net income of $26.4 million, or $1.04 per diluted share, for the first quarter of 2024. Adjusted net income(1) was $51.3 million, or $1.87 per diluted share, for the first quarter of 2025 as compared to $27.8 million, or $1.09 per diluted share, for the first quarter of 2024.

    First Quarter 2025 Highlights

    • Gross written premiums increased by 20.1% to $442.2 million compared to $368.1 million in the first quarter of 2024
    • Net income of $42.9 million compared to $26.4 million in the first quarter of 2024
    • Adjusted net income(1) increased 84.6% to $51.3 million compared to $27.8 million in the first quarter of 2024
    • Total loss ratio of 23.6% compared to 24.9% in the first quarter of 2024
    • Catastrophe loss ratio(1) of -0.3% compared to 3.1% in the first quarter of 2024
    • Combined ratio of 73.1% compared to 76.9% in the first quarter of 2024
    • Adjusted combined ratio(1) of 68.5% compared to 73.0%, in the first quarter of 2024
    • Adjusted combined ratio excluding catastrophe losses(1) of 68.9% compared to 69.8%, in the first quarter of 2024
    • Annualized return on equity of 22.6% compared to 21.7% in the first quarter of 2024
    • Annualized adjusted return on equity(1) of 27.0% compared to 22.9% in the first quarter of 2024

     

    (1)  See discussion of “Non-GAAP and Key Performance Indicators” below.

    Mac Armstrong, Chairman and Chief Executive Officer, commented, “I am very pleased with our strong start to 2025, as our first quarter saw sustained gross written premium growth and record adjusted net income. The quarter featured 85% adjusted net income growth, a 69% adjusted combined ratio, and a 27% adjusted ROE. Our results demonstrate our continued execution of the Palomar 2X strategic imperative as well as concerted efforts to build a leading specialty insurance franchise with a resilient and diversified portfolio.  Our 20% gross written premium growth was driven by both new products like Crop and Casualty as well as our balanced mix of residential and commercial property products. Importantly, our same-store premium growth rate was 37%(2), demonstrating the strong underlying momentum that exists across our portfolio of specialty products.”   

    Mr. Armstrong continued, “Beyond our financial performance, we remain focused on executing all our 2025 strategic imperatives. We continue to make investments across our organization, including the successful acquisition of Advanced AgProtection. This acquisition enhances the talent and operational scale of our Crop franchise and is expected to strengthen the near-term and long-term prospects of Palomar.”  

    (2) Excludes the impact of lines of business exited or discontinued since prior year.

    Underwriting Results

    Gross written premiums increased 20.1% to $442.2 million compared to $368.1 million in the first quarter of 2024, while net earned premiums increased 52.1% compared to the prior year’s first quarter. 

    Losses and loss adjustment expenses for the first quarter were $38.7 million, comprised of $39.2 million of attritional losses, offset by $0.5 million of favorable development on prior year catastrophe events. The loss ratio for the quarter was 23.6%, comprised of an attritional loss ratio of 23.9% and a catastrophe loss ratio(1) of -0.3% compared to a loss ratio of 24.9% during the same period last year comprised of an attritional loss ratio of 21.8% and a catastrophe loss ratio(1) of 3.1%.

    Underwriting income(1) for the first quarter was $44.1 million resulting in a combined ratio of 73.1% compared to underwriting income of $25.0 million resulting in a combined ratio of 76.9% during the same period last year. The Company’s adjusted underwriting income(1) was $51.6 million resulting in an adjusted combined ratio(1) of 68.5% in the first quarter compared to adjusted underwriting income(1) of $29.2 million and an adjusted combined ratio(1) of 73.0% during the same period last year. The Company’s adjusted combined ratio excluding catastrophe losses(1) was 68.9% compared to 69.8% during the same period last year.

    Investment Results
    Net investment income increased by 69.1% to $12.1 million compared to $7.1 million in the prior year’s first quarter. The increase was primarily due to higher yields on invested assets and a higher average balance of investments held during the three months ended March 31, 2025 due to cash generated from operations and proceeds from the August 2024 public offering. The weighted average duration of the fixed-maturity investment portfolio, including cash equivalents, was 4.09 years at March 31, 2025. Cash and invested assets totaled $1.2 billion at March 31, 2025. During the first quarter, the Company recorded $2.3 million net realized and unrealized losses related to its investment portfolio as compared to net realized and unrealized gains of $3.0 million during the same period last year.

    Tax Rate
    The effective tax rate for the three months ended March 31, 2025 was 20.1% compared to 23.2% for the three months ended March 31, 2024. For the current quarter, the Company’s income tax rate differed from the statutory rate due primarily to the tax impact of the permanent component of employee stock options offset by non-deductible executive compensation expense.

    Stockholders’ Equity and Returns
    Stockholders’ equity was $790.4 million at March 31, 2025, compared to $501.7 million at March 31, 2024. For the three months ended March 31, 2025, the Company’s annualized return on equity was 22.6% compared to 21.7% for the same period in the prior year while adjusted return on equity(1) was 27.0% compared to 22.9% for the same period in the prior year. 

    Full Year 2025 Outlook
    For the full year 2025, the Company expects to achieve adjusted net income of $186 million to $200 million, an increase from the Company’s initial outlook of adjusted net income of $180 million to $192 million. This range includes an estimate of $8 million to $12 million of catastrophe losses for the remainder of the year.

    Conference Call
    As previously announced, Palomar will host a conference call Tuesday, May 6, 2025, to discuss its first quarter 2025 results at 12:00 p.m. (Eastern Time). The conference call can be accessed live by dialing 1-877-423-9813 or for international callers, 1-201-689-8573, and requesting to be joined to the Palomar First Quarter 2025 Earnings Conference Call. A replay will be available starting at 4:00 p.m. (Eastern Time) on May 6, 2025, and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 13752911. The replay will be available until 11:59 p.m. (Eastern Time) on May 13, 2025.

    Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at http://ir.palomarspecialty.com/. The online replay will remain available for a limited time beginning immediately following the call.

    About Palomar Holdings, Inc.
    Palomar Holdings, Inc. is the holding company of subsidiaries Palomar Specialty Insurance Company (“PSIC”), Palomar Specialty Reinsurance Company Bermuda Ltd. (“PSRE”), Palomar Insurance Agency, Inc., Palomar Excess and Surplus Insurance Company (“PESIC”), Palomar Underwriters Exchange Organization, Inc. (“PUEO”), First Indemnity of America Insurance Co. (“FIA”), and Palomar Crop Insurance Services, Inc. (“PCIS”). Palomar’s consolidated results also include Laulima Exchange (“Laulima”), a variable interest entity for which the Company is the primary beneficiary. Palomar is an innovative specialty insurer serving residential and commercial clients in five product categories: Earthquake, Inland Marine and Other Property, Casualty, Fronting, and Crop. Palomar’s insurance subsidiaries, PSIC, PSRE, and PESIC, have a financial strength rating of “A” (Excellent) from A.M. Best. FIA carries an “A-” (Stable) rating from A.M. Best. 

    To learn more, visit PLMR.com.

    Non-GAAP and Key Performance Indicators

    Palomar discusses certain key performance indicators, described below, which provide useful information about the Company’s business and the operational factors underlying the Company’s financial performance.

    Underwriting revenue is a non-GAAP financial measure defined as total revenue, excluding net investment income and net realized and unrealized gains and losses on investments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of total revenue calculated in accordance with GAAP to underwriting revenue.

    Underwriting income is a non-GAAP financial measure defined as income before income taxes excluding net investment income, net realized and unrealized gains and losses on investments, and interest expense. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to underwriting income.

    Adjusted net income is a non-GAAP financial measure defined as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. Palomar calculates the tax impact only on adjustments which would be included in calculating the Company’s income tax expense using the estimated tax rate at which the company received a deduction for these adjustments. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of net income calculated in accordance with GAAP to adjusted net income.

    Annualized Return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

    Annualized adjusted return on equity is a non-GAAP financial measure defined as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of return on equity calculated using unadjusted GAAP numbers to adjusted return on equity.

    Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses, to net earned premiums.

    Expense ratio, expressed as a percentage, is the ratio of acquisition and other underwriting expenses, net of commission and other income to net earned premiums.

    Combined ratio is defined as the sum of the loss ratio and the expense ratio. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

    Adjusted combined ratio is a non-GAAP financial measure defined as the sum of the loss ratio and the expense ratio calculated excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio.

    Diluted adjusted earnings per share is a non-GAAP financial measure defined as adjusted net income divided by the weighted-average common shares outstanding for the period, reflecting the dilution which could occur if equity-based awards are converted into common share equivalents as calculated using the treasury stock method. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of diluted earnings per share calculated in accordance with GAAP to diluted adjusted earnings per share.

    Catastrophe loss ratio is a non-GAAP financial measure defined as the ratio of catastrophe losses to net earned premiums. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of loss ratio calculated using unadjusted GAAP numbers to catastrophe loss ratio.

    Adjusted combined ratio excluding catastrophe losses is a non-GAAP financial measure defined as adjusted combined ratio excluding the impact of catastrophe losses.  See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of combined ratio calculated using unadjusted GAAP numbers to adjusted combined ratio excluding catastrophe losses.

    Adjusted underwriting income is a non-GAAP financial measure defined as underwriting income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of income before income taxes calculated in accordance with GAAP to adjusted underwriting income.

    Tangible stockholders’ equity is a non-GAAP financial measure defined as stockholders’ equity less goodwill and intangible assets. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of stockholders’ equity calculated in accordance with GAAP to tangible stockholders’ equity.

    Safe Harbor Statement
    Palomar cautions you that statements contained in this press release may regard matters that are not historical facts but are forward-looking statements. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by Palomar that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business. The forward-looking statements are typically, but not always, identified through use of the words “believe,” “expect,” “enable,” “may,” “will,” “could,” “intends,” “estimate,” “anticipate,” “plan,” “predict,” “probable,” “potential,” “possible,” “should,” “continue,” and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including unexpected expenditures and costs, unexpected results or delays in development and regulatory review, regulatory approval requirements, the frequency and severity of adverse events and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

    Contact
    Media Inquiries 
    Lindsay Conner 
    1-551-206-6217 
    lconner@plmr.com  

    Investor Relations
    Jamie Lillis
    1-203-428-3223
    investors@plmr.com 

    Source: Palomar Holdings, Inc.

    Summary of Operating Results:

    The following tables summarize the Company’s results for the three months ended March 31, 2025 and 2024:

        Three Months Ended                  
        March 31,                  
        2025     2024     Change     % Change  
        ($ in thousands, except per share data)  
    Gross written premiums   $ 442,163     $ 368,078     $ 74,085       20.1 %
    Ceded written premiums     (230,745 )     (228,171 )     (2,574 )     1.1 %
    Net written premiums     211,418       139,907       71,511       51.1 %
    Net earned premiums     164,070       107,866       56,204       52.1 %
    Commission and other income     830       528       302       57.2 %
    Total underwriting revenue (1)     164,900       108,394       56,506       52.1 %
    Losses and loss adjustment expenses     38,743       26,837       11,906       44.4 %
    Acquisition expenses, net of ceding commissions and fronting fees     46,359       31,798       14,561       45.8 %
    Other underwriting expenses     35,733       24,804       10,929       44.1 %
    Underwriting income (1)     44,065       24,955       19,110       76.6 %
    Interest expense     (85 )     (740 )     655       (88.5 )%
    Net investment income     12,071       7,139       4,932       69.1 %
    Net realized and unrealized (losses) gains on investments     (2,338 )     3,002       (5,340 )     (177.9 )%
    Income before income taxes     53,713       34,356       19,357       56.3 %
    Income tax expense     10,791       7,974       2,817       35.3 %
    Net income   $ 42,922     $ 26,382     $ 16,540       62.7 %
    Adjustments:                                
    Net realized and unrealized losses (gains) on investments     2,338       (3,002 )     5,340       (177.9 )%
    Expenses associated with transactions     2,088       —       2,088       — %
    Stock-based compensation expense     4,745       3,820       925       24.2 %
    Amortization of intangibles     707       390       317       81.3 %
    Tax impact     (1,494 )     204       (1,698 )     NM  
    Adjusted net income (1)   $ 51,306     $ 27,794     $ 23,512       84.6 %
    Key Financial and Operating Metrics                                
    Annualized return on equity     22.6 %     21.7 %                
    Annualized adjusted return on equity (1)     27.0 %     22.9 %                
    Loss ratio     23.6 %     24.9 %                
    Expense ratio     49.5 %     52.0 %                
    Combined ratio     73.1 %     76.9 %                
    Adjusted combined ratio (1)     68.5 %     73.0 %                
    Diluted earnings per share   $ 1.57     $ 1.04                  
    Diluted adjusted earnings per share (1)   $ 1.87     $ 1.09                  
    Catastrophe losses   $ (542 )   $ 3,359                  
    Catastrophe loss ratio (1)     (0.3 )%     3.1 %                
    Adjusted combined ratio excluding catastrophe losses (1)     68.9 %     69.8 %                
    Adjusted underwriting income (1)   $ 51,605     $ 29,165     $ 22,440       76.9 %
    NM – not meaningful                                

    (1) Indicates Non-GAAP financial measure – see above for definition of Non-GAAP financial measures and see below for reconciliation of Non-GAAP financial measures to their most directly comparable measures prepared in accordance with GAAP.

    Condensed Consolidated Balance sheets

    Palomar Holdings, Inc. and Subsidiaries

    Condensed Consolidated Balance Sheets (unaudited)

    (in thousands, except shares and par value data)

        March 31,     December 31,  
        2025     2024  
        (Unaudited)          
    Assets                
    Investments:                
    Fixed maturity securities available for sale, at fair value (amortized cost: $1,015,892 in 2025; $973,330 in 2024)   $ 991,759     $ 939,046  
    Equity securities, at fair value (cost: $44,462 in 2025; $32,987 in 2024)     44,367       40,529  
    Equity method investment     2,259       2,277  
    Other investments     11,031       5,863  
    Total investments     1,049,416       987,715  
    Cash and cash equivalents     119,312       80,438  
    Restricted cash     15       101  
    Accrued investment income     8,590       8,440  
    Premiums receivable     334,247       305,724  
    Deferred policy acquisition costs, net of ceding commissions and fronting fees     102,861       94,881  
    Reinsurance recoverable on paid losses and loss adjustment expenses     30,361       47,076  
    Reinsurance recoverable on unpaid losses and loss adjustment expenses     361,227       348,083  
    Ceded unearned premiums     295,275       276,237  
    Prepaid expenses and other assets     92,292       91,086  
    Deferred tax assets, net     5,596       8,768  
    Property and equipment, net     2,393       429  
    Goodwill and intangible assets, net     24,925       13,242  
    Total assets   $ 2,426,510     $ 2,262,220  
    Liabilities and stockholders’ equity                
    Liabilities:                
    Accounts payable and other accrued liabilities   $ 65,405     $ 70,079  
    Reserve for losses and loss adjustment expenses     543,889       503,382  
    Unearned premiums     813,462       741,692  
    Ceded premium payable     179,105       190,168  
    Funds held under reinsurance treaty     34,200       27,869  
    Total liabilities     1,636,061       1,533,190  
    Stockholders’ equity:                
    Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of March 31, 2025 and December 31, 2024     —       —  
    Common stock, $0.0001 par value, 500,000,000 shares authorized, 26,735,132 and 26,529,402 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively     3       3  
    Additional paid-in capital     501,950       493,656  
    Accumulated other comprehensive loss     (16,642 )     (26,845 )
    Retained earnings     305,138       262,216  
    Total stockholders’ equity     790,449       729,030  
    Total liabilities and stockholders’ equity   $ 2,426,510     $ 2,262,220  
     

    Condensed Consolidated Income Statement

    Palomar Holdings, Inc. and Subsidiaries

    Condensed Consolidated Statements of Income and Comprehensive Income (loss) (Unaudited)

    (in thousands, except shares and per share data)

        Three Months Ended  
        March 31,  
        2025     2024  
    Revenues:                
    Gross written premiums   $ 442,163     $ 368,078  
    Ceded written premiums     (230,745 )     (228,171 )
    Net written premiums     211,418       139,907  
    Change in unearned premiums     (47,348 )     (32,041 )
    Net earned premiums     164,070       107,866  
    Net investment income     12,071       7,139  
    Net realized and unrealized (losses) gains on investments     (2,338 )     3,002  
    Commission and other income     830       528  
    Total revenues     174,633       118,535  
    Expenses:                
    Losses and loss adjustment expenses     38,743       26,837  
    Acquisition expenses, net of ceding commissions and fronting fees     46,359       31,798  
    Other underwriting expenses     35,733       24,804  
    Interest expense     85       740  
    Total expenses     120,920       84,179  
    Income before income taxes     53,713       34,356  
    Income tax expense     10,791       7,974  
    Net income   $ 42,922     $ 26,382  
    Other comprehensive income, net:                
    Net unrealized gains (losses) on securities available for sale     10,203       (2,514 )
    Net comprehensive income   $ 53,125     $ 23,868  
    Per Share Data:                
    Basic earnings per share   $ 1.61     $ 1.06  
    Diluted earnings per share   $ 1.57     $ 1.04  
                     
    Weighted-average common shares outstanding:                
    Basic     26,658,106       24,862,367  
    Diluted     27,399,997       25,468,564  


    Underwriting Segment Data

    The Company has a single reportable segment and offers specialty insurance products. Gross written premiums (GWP) by product, location and company are presented below:

        Three Months Ended March 31,                  
        2025     2024                  
        ($ in thousands)          
                % of             % of             %  
        Amount     GWP     Amount     GWP     Change     Change  
    Product                                                
    Earthquake   $ 130,245       29.5 %   $ 105,729       28.7 %   $ 24,516       23.2 %
    Casualty     110,487       25.0 %     51,935       14.1 %     58,552       112.7 %
    Inland Marine and Other Property     99,284       22.5 %     76,876       20.9 %     22,408       29.1 %
    Fronting     53,927       12.2 %     94,831       25.8 %     (40,904 )     (43.1 )%
    Crop     48,220       10.9 %     38,707       10.5 %     9,513       24.6 %
    Total Gross Written Premiums   $ 442,163       100.0 %   $ 368,078       100.0 %   $ 74,085       20.1 %
        Three Months Ended March 31,  
        2025     2024  
        ($ in thousands)  
                % of             % of  
        Amount     GWP     Amount     GWP  
    State                                
    California   $ 139,723       31.6 %   $ 157,217       42.7 %
    Texas     44,991       10.2 %     40,795       11.1 %
    Hawaii     20,358       4.6 %     12,516       3.4 %
    Florida     18,641       4.2 %     13,924       3.8 %
    Washington     15,669       3.5 %     12,002       3.3 %
    New York     14,597       3.3 %     8,030       2.2 %
    New Mexico     12,395       2.8 %     7,469       2.0 %
    Colorado     12,168       2.8 %     9,605       2.6 %
    Other     163,621       37.0 %     106,520       28.9 %
    Total Gross Written Premiums   $ 442,163       100.0 %   $ 368,078       100.0 %
        Three Months Ended March 31,  
        2025     2024  
        ($ in thousands)  
                % of             % of  
        Amount     GWP     Amount     GWP  
    Subsidiary                                
    PSIC   $ 230,917       52.2 %   $ 222,657       60.5 %
    PESIC     190,786       43.1 %     136,493       37.1 %
    Laulima     16,037       3.7 %     8,928       2.4 %
    FIA     4,423       1.0 %     —       — %
    Total Gross Written Premiums   $ 442,163       100.0 %   $ 368,078       100.0 %

    Gross and net earned premiums

    The table below shows the amount of premiums the Company earned on a gross and net basis and the Company’s net earned premiums as a percentage of gross earned premiums for each period presented:

        Three Months Ended                  
        March 31,                  
        2025     2024     Change     % Change  
        ($ in thousands)  
    Gross earned premiums   $ 375,776     $ 302,872     $ 72,904       24.1 %
    Ceded earned premiums     (211,706 )     (195,006 )     (16,700 )     8.6 %
    Net earned premiums   $ 164,070     $ 107,866     $ 56,204       52.1 %
                                     
    Net earned premium ratio     43.7 %     35.6 %                

    Loss detail

        Three Months Ended                  
        March 31,                  
        2025     2024     Change     % Change  
        ($ in thousands)  
    Catastrophe losses   $ (542 )   $ 3,359     $ (3,901 )     (116.1 )%
    Non-catastrophe losses     39,285       23,478       15,807       67.3 %
    Total losses and loss adjustment expenses   $ 38,743     $ 26,837     $ 11,906       44.4 %
                                     
    Catastrophe loss ratio     (0.3 )%     3.1 %                
    Non-catastrophe loss ratio     23.9 %     21.8 %                
    Total loss ratio     23.6 %     24.9 %                

    The following table represents a reconciliation of changes in the ending reserve balances for losses and loss adjustment expenses:

        Three Months Ended March 31,  
        2025     2024  
        (in thousands)  
    Reserve for losses and LAE net of reinsurance recoverables at beginning of period   $ 155,299     $ 97,653  
    Add: Balance acquired from FIA(1)     6,788       —  
    Add: Incurred losses and LAE, net of reinsurance, related to:                
    Current year     43,059       26,333  
    Prior years     (4,316 )     504  
    Total incurred     38,743       26,837  
    Deduct: Loss and LAE payments, net of reinsurance, related to:                
    Current year     4,998       4,895  
    Prior years     13,170       9,432  
    Total payments     18,168       14,327  
    Reserve for losses and LAE net of reinsurance recoverables at end of period     182,662       110,163  
    Add: Reinsurance recoverables on unpaid losses and LAE at end of period     361,227       292,024  
    Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE at end of period   $ 543,889     $ 402,187  

    (1) Represents amounts recognized in Reserve for losses and LAE net of reinsurance recoverables upon acquisition of FIA on 1/1/2025, in accordance with ASC 805, Business Combinations.

    Reconciliation of Non-GAAP Financial Measures

    For the three months ended March 31, 2025 and 2024, the Non-GAAP financial measures discussed above reconcile to their most comparable GAAP measures as follows:

    Underwriting revenue

        Three Months Ended  
        March 31,  
        2025     2024  
        (in thousands)  
    Total revenue   $ 174,633     $ 118,535  
    Net investment income     (12,071 )     (7,139 )
    Net realized and unrealized losses (gains) on investments     2,338       (3,002 )
    Underwriting revenue   $ 164,900     $ 108,394  

    Underwriting income and adjusted underwriting income

        Three Months Ended  
        March 31,  
        2025     2024  
        (in thousands)  
    Income before income taxes   $ 53,713     $ 34,356  
    Net investment income     (12,071 )     (7,139 )
    Net realized and unrealized losses (gains) on investments     2,338       (3,002 )
    Interest expense     85       740  
    Underwriting income   $ 44,065     $ 24,955  
    Expenses associated with transactions     2,088       —  
    Stock-based compensation expense     4,745       3,820  
    Amortization of intangibles     707       390  
    Adjusted underwriting income   $ 51,605     $ 29,165  

    Adjusted net income

        Three Months Ended  
        March 31,  
        2025     2024  
        (in thousands)  
    Net income   $ 42,922     $ 26,382  
    Adjustments:                
    Net realized and unrealized losses (gains) on investments     2,338       (3,002 )
    Expenses associated with transactions     2,088       —  
    Stock-based compensation expense     4,745       3,820  
    Amortization of intangibles     707       390  
    Tax impact     (1,494 )     204  
    Adjusted net income   $ 51,306     $ 27,794  

    Annualized adjusted return on equity

        Three Months Ended  
        March 31,  
        2025     2024  
        (in thousands)  
                     
    Annualized adjusted net income   $ 205,224     $ 111,176  
    Average stockholders’ equity   $ 759,739     $ 486,455  
    Annualized adjusted return on equity     27.0 %     22.9 %

    Adjusted combined ratio

        Three Months Ended  
        March 31,  
        2025     2024  
        (in thousands)  
    Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses,
    net of commission and other income    		   $ 120,005     $ 82,911  
    Denominator: Net earned premiums   $ 164,070     $ 107,866  
    Combined ratio     73.1 %     76.9 %
    Adjustments to numerator:                
    Expenses associated with transactions   $ (2,088 )   $ —  
    Stock-based compensation expense     (4,745 )     (3,820 )
    Amortization of intangibles     (707 )     (390 )
    Adjusted combined ratio     68.5 %     73.0 %

    Diluted adjusted earnings per share

        Three Months Ended  
        March 31,  
        2025     2024  
        (in thousands, except per share data)  
                     
    Adjusted net income   $ 51,306     $ 27,794  
    Weighted-average common shares outstanding, diluted     27,399,997       25,468,564  
    Diluted adjusted earnings per share   $ 1.87     $ 1.09  

    Catastrophe loss ratio

        Three Months Ended  
        March 31,  
        2025     2024  
        (in thousands)  
    Numerator: Losses and loss adjustment expenses   $ 38,743     $ 26,837  
    Denominator: Net earned premiums   $ 164,070     $ 107,866  
    Loss ratio     23.6 %     24.9 %
                     
    Numerator: Catastrophe losses   $ (542 )   $ 3,359  
    Denominator: Net earned premiums   $ 164,070     $ 107,866  
    Catastrophe loss ratio     (0.3 )%     3.1 %

    Adjusted combined ratio excluding catastrophe losses

        Three Months Ended  
        March 31,  
        2025     2024  
        (in thousands)  
    Numerator: Sum of losses and loss adjustment expenses, acquisition expenses, and other underwriting expenses,
    net of commission and other income    		   $ 120,005     $ 82,911  
    Denominator: Net earned premiums   $ 164,070     $ 107,866  
    Combined ratio     73.1 %     76.9 %
    Adjustments to numerator:                
    Expenses associated with transactions   $ (2,088 )   $ —  
    Stock-based compensation expense     (4,745 )     (3,820 )
    Amortization of intangibles     (707 )     (390 )
    Catastrophe losses     542       (3,359 )
    Adjusted combined ratio excluding catastrophe losses     68.9 %     69.8 %

    Tangible Stockholders’ equity

        March 31,     December 31,  
        2025     2024  
        (in thousands)  
    Stockholders’ equity   $ 790,449     $ 729,030  
    Goodwill and intangible assets     (24,925 )     (13,242 )
    Tangible stockholders’ equity   $ 765,524     $ 715,788  

    The MIL Network –

  • MIL-OSI USA: Shapiro Administration Calls for New Investments in Maternal Health and the Rural Health Care Workforce During Visit to Uniontown Hospital’s New, Reopened Maternity Unit

    Source: US State of Pennsylvania

    May 05, 2025 – Uniontown, PA

    Shapiro Administration Calls for New Investments in Maternal Health and the Rural Health Care Workforce During Visit to Uniontown Hospital’s New, Reopened Maternity Unit

    Department of Human Services (DHS) Secretary Dr. Val Arkoosh toured the newly-opened WVU Medicine Children’s Birthing Center at Uniontown Hospital, which brings labor and delivery services back to Fayette County and the surrounding area. While there, Secretary Arkoosh highlighted Governor Josh Shapiro’s common-sense, strategic investments in the 2025-26 proposed budget to expand maternal health services and alleviate ongoing workforce recruitment challenges facing many rural hospitals by continuing to invest in rural health systems.

    “Everyone deserves access to high-quality, supportive, and accessible care before, during and following their birthing experience. Timely, comprehensive, and trusted pre- and postnatal care make a big difference in the overall health of both parents and newborns, but we know that when people do not have access to health care locally, it can be a significant barrier to healthy outcomes,” said Secretary Arkoosh. “The reopening of Uniontown Hospital’s birthing center is a shining example of progress being made in our rural communities to support growing families and ensure that no matter where people live in the Commonwealth, they benefit from a stable health care presence in their community. The Shapiro Administration is committed to being a partner as communities and health care providers work to improve access to high quality maternity care for all, including in our rural communities.”

    Speakers Include:
    Carrie Willetts, WVU Medicine Uniontown Hospital President and CEO
    Dr. Lawrence Glad, Medical Director, WVU Medicine Children’s Birthing Center at Uniontown Hospital
    Dr. Val Arkoosh, DHS Secretary

    MIL OSI USA News –

  • MIL-OSI Security: Baltimore Man Charged in Second Superseding Indictment for Robbery, Kidnapping, and Shooting Death in Queens

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    Defendant Jalon Lenny Garrett is One of Six Defendants Arrested in Connection with the July 25, 2024 Crime Spree

    Earlier today, a seven-count second superseding indictment was unsealed in federal court in Brooklyn charging Jalon Lenny Garrett, also known as “Lips,” Marcus Pittman, also known as “Nacho” and “Cheese,” Delonta Pittman, also known as “D Lo,” and Jerome Waters, also known as “the Engineer” and “Rome,” for their alleged roles in the kidnapping, robbery, and shooting of marijuana dealers on July 25, 2024.  Garrett was arrested this morning in Baltimore, Maryland, and will make his initial appearance in the Eastern District of New York at a later date.  Marcus Pittman is also newly charged with being a felon in possession of ammunition for his role in the fatal shooting.  The remaining defendants are already in custody and will be arraigned at a later date.

    John J. Durham, United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD) announced the arrests and charges.

    “As alleged, the defendants took part in an interstate armed robbery and kidnapping scheme that resulted in the brutal murder of a targeted victim.  This prosecution underscores the ongoing threat of guns and drugs in our communities,” stated United States Attorney Durham.  “This Office is committed to holding violent offenders accountable and ensuring justice for every victim.”

    “These four defendants allegedly traveled across the northeast to brutally kidnap and rob two unsuspecting individuals, ultimately murdering one of the victims,” stated FBI Assistant Director-in-Charge Raia.  “This alleged fatal robbery highlights the volatile and random violence that the illicit drug trade can fuel. With our law enforcement partners, the FBI will continue to dismantle any organization implementing lethal tactics to bolster their criminal lifestyles and jeopardize the safety of our city.”

    “These individuals came to New York City armed with guns and zip ties — ready to rob, kidnap, and kill,” stated NYPD Commissioner Tisch.  “It was a deliberate, brutal attack meant to terrorize our communities.  They thought they could hit and run. They were wrong — and anyone else thinking the same should take note.  I’m grateful to our partners in Project Safe Neighborhoods for their shared commitment to protecting New Yorkers.”

    According to the superseding indictment and other public court filings, the defendants are members of a Baltimore-based robbery crew that conspired to commit an armed robbery and kidnapping of marijuana dealers in Queens, New York.  On the evening of July 24,2024, the defendants and their co-conspirators executed a violent armed robbery and kidnapping plot that resulted in John Doe #1’s death.  As described below, Garrett robbed and kidnapped John Doe #2 at gunpoint, and Marcus Pittman shot and killed John Doe #1.

    Specifically, the defendants drove from Maryland to New York for the purpose of robbing two drug dealers, John Doe #1 and John Doe #2. Once in New York, defendants Jerome Waters and William Barnett met with John Doe #1 and John Doe #2 at a stash house in Queens, New York, under the guise of purchasing marijuana.

    At the stash house, Waters and Barnett pulled out their weapons and held up John Doe #1 and John Doe #2 at gunpoint. Next, they let their co-defendants into the stash house to assist in the robbery and kidnapping.  While in the stash house, the defendants and their co-conspirators tied up John Doe #1 and John Doe #2 with zip ties and forced them outside and into the back of a Jeep and a U-Haul van, which were driven by Barnett and Israel.  At the same time, the defendants and their co-conspirators stole approximately 30 pounds of marijuana from the stash house.

    The defendants and their co-conspirators drove John Doe #1 and John Doe #2, who were still tied up, through Queens at gunpoint, demanding drugs and money.  Garrett held a gun to John Doe #2 as he was being driven through Queens.  Marcus Pittman shot John Doe #1 to death in the back of the U-Haul van.  When his body was found by first responders, John Doe #1 still had a zip tie binding one of his hands and was surrounded by bags of marijuana.  After the shooting, the defendants fled back to Maryland.

    If convicted, defendants Marcus Pittman, Delonta Pittman, and Waters each face mandatory minimum sentences of life imprisonment, and Garrett faces a mandatory minimum of ten years’ imprisonment and a maximum sentence of life imprisonment.  The charges in the superseding indictment are allegations and the defendants are presumed innocent unless and until proven guilty.

    This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime. 

    The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States  Attorneys Chand Edwards-Balfour and Adam Amir are in charge of the prosecution, with the assistance of Paralegal Specialist Samuel Ronchetti.

    New Defendant:

    JALON LENNY GARRETT
    Age: 20
    Maryland

    Previously Charged Defendants:

    MARCUS PITTMAN (also known as “Nacho” and “Cheese”)
    Age:  30
    Maryland

    DELONTA PITTMAN (also known as “D Lo”)
    Age:  31
    Maryland

    JEROME WATERS (also known as “the Engineer” and “Rome”)
    Age:  23
    Maryland

    CALVIN ISRAEL
    Age:  23
    Maryland

    WILLIAM BARNETT
    Age:  27
    Maryland

    E.D.N.Y. Docket No. 24-CR-413 (S-2) (KAM)

    MIL Security OSI –

  • MIL-OSI Security: Former PICC Correctional Officer and Two Co-Conspirators Plead Guilty to Scheme to Smuggle Contraband Into the Prison Facility

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    PHILADELPHIA – United States Attorney David Metcalf announced that Breyanna Cornish, 30, Jawayne Brown, 40, and Ahmad Nasir, aka Hussain Abdussamad, 44, all of Philadelphia, Pennsylvania, entered pleas of guilty before United States District Court Judge Gerald J. Pappert this week in connection with a scheme to smuggle contraband — including drugs, phones, chargers, cigarettes, and knives — into the Philadelphia Industrial Correctional Center (“PICC”) from April through July of 2021.

    The defendants were charged by indictment in August of last year, with Nasir pleading guilty this morning to one count of conspiracy to commit federal program bribery, one count of federal program bribery, one count of conspiracy to possess with intent to distribute a mixture and substance containing a detectable amount of buprenorphine, and one count of possession with intent to distribute a mixture and substance containing a detectable amount of buprenorphine.

    Brown pleaded guilty on Monday to one count of conspiracy to commit federal program bribery, one count of federal program bribery, and one count of conspiracy to possess with intent to distribute a mixture and substance containing a detectable amount of buprenorphine.

    Cornish pleaded guilty on Monday to one count of conspiracy to commit federal program bribery and one count of federal program bribery.

    As detailed in court filings and admitted to by the defendants, Nasir, who was then detained pre-trial at PICC, worked with Brown, who was not incarcerated, Cornish, who was then a PICC correctional officer (“CO”) employed by the Philadelphia Department of Prisons (“PDP”), and several other associates to purchase and assemble contraband. Cornish then smuggled the contraband into PICC, where Nasir sold the contraband to other inmates for a profit. Nasir then instructed associates to pay Cornish for her role smuggling the contraband into the prison and Brown for his work purchasing and assembling the packages.

    On July 10, 2021, PDP conducted a search of the cell Nasir shared with another inmate. In a compartment in the ceiling behind a light fixture, officers recovered 19 cellphones, 20 cellphone chargers, one rapid charger, two super glues, two screwdrivers, one roll of tape, three hunting knives, one Ziploc bag containing the synthetic cannabinoid commonly known as K2, one Ziploc bag of tobacco, one alprazolam pill, and at least 110 packets of Suboxone.

    Following the search of the cell, officers conducted a search of Nasir and his cellmate. Officers recovered a cellphone from the person of each of them. Text messages and WhatsApp messages extracted from the cell phone recovered from Nasir’s person revealed that from June 19, 2021, to July 6, 2021, CO Cornish, Nasir, and Brown discussed via text specific contraband items to be acquired, the delivery of contraband packages, and payments for the items and to co-conspirators. Nasir simultaneously sent messages to multiple inmates about the purchase and delivery of contraband.

    The defendants are scheduled to be sentenced in August. Cornish faces a maximum possible term of 15 years’ imprisonment, Brown a maximum possible term of 25 years’ imprisonment, and Nasir a maximum possible term of 35 years’ imprisonment.

    The case was investigated by the FBI, with significant assistance from the Philadelphia Department of Prisons, and is being prosecuted by Assistant United States Attorneys Meghan Claiborne and Ruth Mandelbaum.

    MIL Security OSI –

  • MIL-OSI Security: Former Amtrak Director of Network Planning and Engineering, Two Vendors Indicted for Extensive Bribery Scheme

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    PHILADELPHIA – United States Attorney David Metcalf announced that Richard Thompson, 57, of Falls Church, Virginia, Shaun Hanrahan, 66, of Hampton, Virginia, and Darren Hannam, 57, of Haymarket, Virginia, were charged by indictment with honest services fraud through bribery for engaging in schemes to pay off Thompson, in exchange for Thompson steering millions of dollars in Amtrak work to companies owned by Hanrahan, Hannam, and others.

    Thompson was the Director of Network Planning and Engineering for Amtrak and had a leadership role in designing information technology (“IT”) systems and selecting IT vendors and subcontractors to perform IT work for Amtrak. Hanrahan was the owner of Awarity, LLC, a small business providing management consulting and computer-related services. Hannam and Co-schemer #1 were the principals of Arch Technology, an IT company.

    The indictment alleges that, from about 2015 through 2021, Thompson engaged in bribery schemes with each of three companies who were his favored vendors in the Amtrak contracting process — Awarity, Arch Technology, and 20/20 Teknology, owned by Co-schemer #2. In each of these schemes, as alleged, Thompson repeatedly shared proprietary Amtrak bid information and other documents with his favored vendors before Amtrak contracts were awarded, giving the favored vendors advantages in the Amtrak contracting processes.

    The indictment further alleges that Thompson likewise collaborated with them on bid and contracting documents, manipulated bidding lists, and structured existing contractual relationships, so that his favored vendors would get lucrative subcontracting deals and bypass Amtrak’s competitive bidding process. The defendants allegedly tried to conceal their scheme from Amtrak and other authorities by communicating with Thompson on his personal email accounts rather than his Amtrak email.

    The Amtrak work involved in these schemes included, among other things, the design and installation of nationwide WiFi networks, IT equipment purchases, the installation of audio-visual equipment in Amtrak’s offices in Washington, DC, and a major project to improve the gates that provided access to Amtrak railroad tracks across the country. According to the indictment, for steering and attempting to steer this work to his favored vendors, Thompson received a stream of benefits from each vendor. For example, Hanrahan provided Thompson with payments of cash totaling at least $97,000; Hannam and Co-schemer #1 provided Thompson with expensive electronics valued at approximately $9,500, including Apple computers. Co-schemer #2 provided Thompson with an automobile, free hotel and condominium stays in Ocean City, Maryland, and $40,000 in cash.

    The defendants are all charged with multiple counts of honest services wire fraud through bribery. Hannam is also charged with falsification of records for allegedly trying to cover up the scheme after federal agents executed search warrants in this matter.

    If convicted, the defendants face maximum possible sentences of 20 years in prison for each count of honest services fraud in the indictment.

    The case was investigated by the FBI and the Amtrak Office of Inspector General and is being prosecuted by Assistant United States Attorneys Louis D. Lappen and Jason Grenell.

    The charges and allegations contained in the indictment are merely accusations. Every defendant is presumed to be innocent unless and until proven guilty in court.

    MIL Security OSI –

  • MIL-OSI Security: Boston City Councilor Pleads Guilty to Federal Public Corruption Charges

    Source: Office of United States Attorneys

    City Councilor for Boston’s District 7, Tania Fernandes Anderson, pocketed $7,000 cash from staff member’s city-funded bonus

    BOSTON – Boston City Councilor Tania Fernandes Anderson pleaded guilty today in federal court in Boston to public corruption charges after receiving a $7,000 kickback from a staff member’s city funded bonus.

    Tania Fernandes Anderson, 46, of Boston, pleaded guilty to one count of wire fraud and one count of theft concerning a program receiving federal funds. U.S. District Court Judge Indira Talwani scheduled sentencing for July 29, 2025. Fernandes Anderson was indicted in December 2024. Per the plea agreement, the government is recommending a sentence of one year and one day in prison to be followed by three years of supervised release and restitution in the amount of $13,000.

    “Councilor Fernandes Anderson abused her position of trust for personal gain and turned a public checkbook into her own private slush fund. Her constituents deserve better than this. They deserve a city representative who respects the role of public service and does not use the power and position to line her own pockets,” said United States Attorney Leah B. Foley. “Her guilty plea today says what she refuses to admit in her media interviews: she broke the law, lied to the public, and used her office for her own personal gain. Ms. Fernandes Anderson leaves a legacy not of a selfless trailblazer, but one of fraud, greed, and deceit. The United States Attorney’s Office is committed to ensuring elected officials are held accountable for this kind of corruption and dishonesty.”

    “Tania Fernandes Anderson used the city of Boston.  She wielded her official powers for her own financial gain, and grossly betrayed the trust of the residents she was elected to serve,” said James Crowley, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Insidious corruption like this undermines people’s faith in, and expectations of, their government. Today’s conviction should reinforce, to both Boston’s politicos and the public, that the FBI remains committed to bringing to justice any elected official who deprives constituents of the honest services to which they are entitled.”

    “The guilty plea of Tania Fernandes Anderson demonstrates IRS-CI’s commitment to identifying, investigating, and prosecuting all instances of public corruption, both in the Commonwealth and across New England,” said Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “Elected officials are held to a higher standard when they take an oath to serve their constituents, but Fernandes Anderson forsook this oath when she conspired to orchestrate a kickback scheme to enrich herself at the cost of the American taxpayers.”

    Fernandes Anderson currently serves as City Councilor for Boston’s District 7, which includes Roxbury, Dorchester, Fenway and part of the South End. She was first elected to a two-year term in November 2021 and won re-election in November 2023.

    In or about 2022, Fernandes Anderson hired two members of her immediate family as salaried employees of her City Councilor Staff. Because City Councilors are prohibited by law from hiring immediate family members to their paid staff, Fernandes Anderson was required to terminate their salaried employment in or about August 2022. Additionally, in May 2023, the Massachusetts State Ethics Commission notified Fernandes Anderson that it would be seeking a $5,000 civil penalty payment from her as a result of the violation.

    In or about November 2022, Fernandes Anderson emailed a City of Boston employee regarding her hiring of Staff Member A – a relative of Fernandes Anderson who was not an immediate family member – as a salaried employee. In her email to the City of Boston employee, Fernandes Anderson falsely represented that she and Staff Member A were not related:

    From in or about early to mid-2023, Fernandes Anderson was facing personal financial difficulty, which included the outstanding $5,000 civil penalty payment to the Ethics Commission. In or about early May 2023, Fernandes Anderson told Staff Member A that she would give them extra pay in the form of a large bonus, but that Staff Member A would have to give a portion of the bonus back to Fernandes Anderson. Staff Member A agreed to the arrangement with Fernandes Anderson.  

    On May 3, 2023, Fernandes Anderson emailed a City of Boston employee instructing them to process a $13,000 bonus for Staff Member A – more than twice the total bonuses given to her other staff – without disclosing the repayment arrangement. Staff Member A deposited the check on May 26, 2023 and, following Fernandes Anderson’s instructions, made three separate cash withdrawals over the following weeks in the amounts of $3,000; $3,000; and $4,000. Following the last withdrawal on June 9, 2023, the two met in a bathroom at Boston City Hall, where Staff Member A handed Fernandes Anderson $7,000 in cash.

    According to the signed plea agreement, in 2022 and 2023, Fernandes Anderson used funds from her campaign account for her own personal enrichment, and not for campaign-related expenses. Additionally, for tax years 2021, 2022 and 2023, Fernandes Anderson filed fraudulent federal income tax returns with the IRS. Specifically, Fernandes Anderson omitted approximately $11,000 in income that she earned from a Massachusetts-based corporation from her 2021 tax return; willfully omitted campaign funds that she used for her own personal enrichment from her 2022 and 2023 tax returns; and willfully omitted the $7,000 kickback that she received from Staff Member A from her 2023 tax return.

    The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of theft concerning programs receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

    U.S. Attorney Foley, FBI Acting SAC Crowley and IRS Acting SAC Demeo made the announcement today. Assistant U.S. Attorneys John T. Mulcahy and Dustin Chao of the Public Corruption & Special Prosecutions Unit are prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Security: Credit Suisse Services AG Admits to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore Accounts and Admits that Credit Suisse Breached Its Prior Plea Agreement

    Source: United States Attorneys General 1

    Credit Suisse Services AG Pleads Guilty to Tax Crimes, Signs a Separate Non-Prosecution Agreement Related to Conduct in Singapore, and Agrees to Pay More Than $510M

    Credit Suisse Services AG pleaded guilty and was sentenced today to conspiring to hide more than $4 billion from the IRS in at least 475 offshore accounts. The guilty plea by the Swiss corporation is the result of a years-long investigation by U.S. law enforcement to uncover financial fraud and abuse.

    In addition to the plea, Credit Suisse Services AG entered into a non-prosecution agreement (NPA) with the Justice Department’s Tax Division and U.S. Attorney’s Office for the Eastern District of Virginia in connection with U.S. Accounts booked at Credit Suisse AG Singapore. Under the NPA, Credit Suisse Services AG agreed to cooperate with the Justice Department in ongoing investigations and to pay significant monetary penalties for maintaining accounts in Singapore on behalf of U.S. taxpayers who were using offshore accounts to evade U.S. taxes and reporting requirements.

    According to the Plea Agreement, NPA, and documents filed in court today: from Jan. 1, 2010, and continuing until about July 2021, Credit Suisse AG, which had ultra-high-net-worth and high-net-worth individual clients around the globe, conspired with employees, U.S. customers, and others to willfully aid U.S. customers in concealing their ownership and control of assets and funds held at the bank. This enabled those U.S. customers to evade their U.S. tax obligations in several ways, including by opening and maintaining undeclared offshore accounts for U.S. taxpayers at Credit Suisse AG, and providing a variety of offshore private banking services that assisted U.S. taxpayers in the concealment of their assets and income from the IRS and allowed for their continued failure to file FBARs. Among other fraudulent acts, bankers at Credit Suisse falsified records, processed fictitious donation paperwork, and serviced more than $1 billion in accounts without documentation of tax compliance. In doing so, Credit Suisse AG committed new crimes and breached its May 2014 plea agreement with the United States.

    Between 2014 and June 2023, Credit Suisse AG Singapore held undeclared accounts for U.S. persons, which Credit Suisse AG Singapore knew or should have known were U.S., with total assets valued at over $2 billion. Credit Suisse AG Singapore failed to adequately identify the true beneficial owners of accounts and failed to conduct adequate inquiry about U.S. indicia in the accounts. In 2023, during the post-merger of UBS AG Singapore and Credit Suisse AG Singapore, UBS became aware of accounts held at Credit Suisse AG Singapore that appeared to be undeclared U.S. accounts. UBS froze some of the accounts, voluntarily disclosed information about those identified accounts to the Justice Department and cooperated by undertaking an investigation into the identified accounts.

    Under today’s resolutions, Credit Suisse Services AG and, by extension, UBS AG, is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts. The agreements provide no protections for any individuals. Pursuant to the guilty plea and the NPA, Credit Suisse Services AG will pay a total of $510,608,909 in penalties, restitution, forfeiture, and fines.

    Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, U.S. Attorney Erik S. Siebert for the Eastern District of Virginia, and Chief Guy Ficco of IRS Criminal Investigation (IRS-CI) made the announcement.

    Special Agents from IRS-CI’s International Tax & Financial Crimes specialty group, a team based out of Washington, D.C. that is dedicated to uncovering international tax crimes, is investigating the case. The Justice Department’s Office of International Affairs provided critical assistance in obtaining important evidence.

    Senior Litigation Counsels Nanette L. Davis and Mark F. Daly as well as Trial Attorney Marissa R. Brodney of the Tax Division, and Assistant U.S. Attorney Kimberly M. Shartar for the Eastern District of Virginia are prosecuting the case. 

    MIL Security OSI –

  • MIL-OSI USA: CFTC Staff on Leave Pending Investigation

    Source: US Commodity Futures Trading Commission

    CFTC Staff on Leave Pending Investigation | CFTC

    /PressRoom/PressReleases/9071-25
    Skip to main content

    May 05, 2025

    WASHINGTON, D.C. — The CFTC is committed to holding employees to the highest standards, as expected by American taxpayers. Pursuant to the President’s executive orders on lawful governance and accountability, the CFTC has placed staff on administrative leave for potential violations of laws, government ethics requirements and professional rules of conduct. Investigations are currently ongoing into these matters and the CFTC will provide updates as appropriate. 

    -CFTC-

    MIL OSI USA News –

  • MIL-OSI Security: Coast Guard halts 3 illegal passenger for hire vessels in Fajardo, Puerto Rico

    Source: United States Coast Guard

     

    05/05/2025 03:11 PM EDT

    A Coast Guard Station San Juan boat crew and Sector San Juan Marine Investigators halted three illegal passenger-for-hire vessels, Saturday, in Fajardo. Vessels Hecht, El Lindo and Making Waves were found conducting illegal passenger-for-hire operations, one of which was found operating in violation of previous federal Captain of the Port (COTP) Order. Over the past year, Coast Guard enforcement efforts have yielded voyage terminations for 18 illegal passenger-for-hire operations.  “The prevalence of illegal passenger-for-hire operations in our area is a concerning and serious matter,” said Lt. Michael Robinson, Sector San Juan marine investigator. “Passenger-for-hire operations is a regulated activity. If you use your recreational vessel for this purpose without adherence to the applicable federal regulations, you could be subject to substantial fines and possible jail time. Our purpose is to protect passengers from this illicit practice and ensure the safety of boaters within Puerto Rico and the U.S. Virgin Islands.” 

    For more breaking news follow us on Twitter and Facebook.

    MIL Security OSI –

  • MIL-OSI Security: Charlotte Clinic Owner Agrees to Settle Allegations of Medicaid Fraud

    Source: Federal Bureau of Investigation FBI Crime News (b)

    CHARLOTTE, N.C. – Steven Osbey, of Kernersville, N.C., has agreed to entry of a consent judgment against him in the amount of $4,711,159.00 in favor of the United States and State of North Carolina (the Governments), subject to a separate agreement regarding his participation in the Governments’ ability to pay process. The judgment represents repayment to the government for allegations that Reign & Inspirations, LLC (R&I), a clinic co-owned by Osbey and Aljihad Shabazz, charged Medicaid for physician home visits that never occurred.

    More specifically, the Governments alleged Osbey and Shabazz conspired to carry out an extensive health care fraud scheme wherein they submitted or caused to be submitted claims to NC Medicaid for in-home physician visits with patients that simply never occurred—in all, billing more than 30,000 hours of these purported physician visits and sometimes billing as if the physician provided over 100 in-home visits in a single day, purportedly lasting an hour each (an obvious physical impossibility).

    This investigation was conducted in parallel between the civil and criminal divisions of the U.S. Attorney’s Office. Shabazz pleaded guilty to criminal healthcare fraud conspiracy and money laundering charges and was sentenced to 52 months in prison followed by two years of supervised release.

    The civil settlement obtained in this matter was the result of a coordinated effort between the Department of Justice and the FBI field offices in Charlotte, with assistance from the Medicaid Investigations Division of the North Carolina Attorney General’s Office, and the Office of Inspector General of the United States Department of Health and Human Services. AUSAs Caroline McLean and Seth Johnson were responsible for the civil investigation.

    The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

    MIL Security OSI –

  • MIL-OSI: TWFG, Inc. To Announce First Quarter 2025 Financial Results on Tuesday, May 13, 2025.

    Source: GlobeNewswire (MIL-OSI)

    THE WOODLANDS, Texas, May 05, 2025 (GLOBE NEWSWIRE) — TWFG, Inc. (NASDAQ: TWFG), a leading independent insurance distribution platform, announced today that it will release its financial results for the first quarter ended March 31, 2025, after the market closes on Tuesday, May 13, 2025.

    The Company will host a conference call to discuss its financial results the following morning, Wednesday, May 14, 2025, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time).

    TO ACCESS THE CALL BY PHONE, PARTICIPANTS CAN REGISTER AT THIS LINK WHERE THEY WILL BE PROVIDED WITH THE DIAL IN DETAILS.

    A live webcast of the call will be available on TWFG’s Investor Relations website at investors.twfg.com. Interested parties are encouraged to register and access the webcast at least 10 minutes prior to the scheduled start time.

    A replay of the webcast will be available on the Investor Relations website for a limited time following the call.

    About TWFG

    TWFG, Inc. (NASDAQ: TWFG) is a leading insurance distribution platform providing innovative and personalized insurance solutions to individuals and businesses across the United States. Founded with a commitment to service, professionalism, and entrepreneurial spirit, TWFG empowers its extensive network of agents to deliver client-focused insurance options across a broad array of personal and commercial lines. For more information, please visit www.twfg.com.

    Investor Contact:

    Gene Padgett
    TWFG, Inc. – Chief Accounting Officer
    Email: gene.padgett@twfg.com

    PR Contact:
    Alex Bunch
    TWFG, Inc. – CMO
    E-mail: alex@twfg.com

    The MIL Network –

  • MIL-OSI: Draganfly Announces Closing of US$3.6 Million Underwritten Public Offering

    Source: GlobeNewswire (MIL-OSI)

    Saskatoon, SK., May 05, 2025 (GLOBE NEWSWIRE) — Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8A) (“Draganfly” or the “Company”), a drone solutions, and systems developer, today announced the closing of its previously announced underwritten public offering (the “Offering”) of 1,715,000 units (the “Units”), with each Unit consisting of one common share and one warrant to purchase one common share (each, a “Warrant”). Each Unit was sold at a public offering price of US$2.10, for gross proceeds of approximately US$3.6 million, before deducting underwriting discounts and offering expenses. The Warrants have an exercise price of CA$3.9779 (or US$2.875) per share, are exercisable immediately and will expire five years following the date of issuance. In addition, the Company granted the Underwriter (as defined below) a 45-day over-allotment option to purchase up to an additional 15% of the number of common shares and/or warrants offered in the Offering, of which the Underwriter has partially exercised its option to purchase an additional 100,000 Warrants.

    Maxim Group LLC (the “Underwriter”) acted as sole book-running manager for the Offering.

    Draganfly currently intends to use the net proceeds from the Offering for general corporate purposes, including to fund its capabilities to meet demand for its new products including growth initiatives and/or for working capital requirements including the continuing development and marketing of the Company’s core products, potential acquisitions and research and development.

    The Offering was made pursuant to an effective shelf registration statement on Form F-10, as amended, (File No. 333-271498) previously filed with and subsequently declared effective by the U.S. Securities and Exchange Commission (“SEC”) on July 5, 2023 and the Company’s Canadian short form base shelf prospectus dated June 30, 2023 (the “Base Shelf Prospectus”). Draganfly offered and sold the securities in the United States only. No securities were offered or sold to Canadian purchasers.

    A final prospectus supplement and accompanying Base Shelf Prospectus relating to the Offering and describing the terms thereof has been filed with the applicable securities commissions in the Canadian provinces of British Columbia, Saskatchewan and Ontario, and with the SEC in the United States and is available for free by visiting the Company’s profiles on the SEDAR+ website maintained by the Canadian Securities Administrators at www.sedarplus.ca or the SEC’s website at www.sec.gov, as applicable. Copies of the final prospectus supplements and accompanying Base Shelf Prospectus relating to the Offering may be obtained by contacting Maxim Group LLC, at 300 Park Avenue, 16th Floor, New York, NY 10022, Attention: Syndicate Department, or by telephone at (212) 895-3745 or by email at syndicate@maximgrp.com.

    This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

    About Draganfly

    Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8A) is a pioneer in drone solutions, AI-driven software, and robotics. With over 25 years of innovation, Draganfly has been at the forefront of drone technology, providing solutions for public safety, agriculture, industrial inspections, security, mapping, and surveying. The Company is committed to delivering efficient, reliable, and industry-leading technology that helps organizations save time, money, and lives.

    Media Contact
    media@draganfly.com

    Company Contact
    Email: info@draganfly.com

    Forward Looking Statements

    Certain statements contained in this news release may constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements, based as they are on the current expectations of management, inherently involve numerous important risks, uncertainties and assumptions, known and unknown. In this news release, such forward-looking statements include, but are not limited to, statements regarding the intended use of proceeds of the Offering. Actual future events may differ from the anticipated events expressed in such forward-looking statements. Draganfly believes that expectations represented by forward-looking statements are reasonable, yet there can be no assurance that such expectations will prove to be correct. The reader should not place undue reliance, if any, on any forward-looking statements included in this news release. These forward-looking statements speak only as of the date made, and Draganfly is under no obligation and disavows any intention to update publicly or revise such statements as a result of any new information, future event, circumstances or otherwise, unless required by applicable securities laws.‎ Investors are cautioned not to unduly rely on these forward-looking statements and are encouraged to read the Offering documents, as well as Draganfly’s continuous disclosure documents, including its current annual information form, as well as its audited annual consolidated financial statements which are available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov/edgar.

    The MIL Network –

  • MIL-OSI Africa: Transformation Fund to drive inclusive economic growth

    Source: South Africa News Agency

    Deputy President Paul Mashatile has lauded the launch of the Transformation Fund as a significant step towards inclusive economic growth and transformation in South Africa.

    The Deputy President was delivering a keynote address at a Business Breakfast Session and launch of the Transformation Fund at the Freedom Park Heritage Site and Museum in Pretoria on Monday. 

    “Today is an important and historic day for South Africa as it marks a key milestone in our journey towards economic transformation. We fully welcome the launch of the Transformation Fund, as it will serve as a strategic vehicle for businesses to embrace change, foster innovation, and drive growth. 

    “This fund will serve as a catalyst for financial support, guiding organisations through crucial transitions and enabling them to seize new opportunities that arise in the market,” the Deputy President said. 

    The Transformation Fund, which brings together both public and private sector contributions, aims to unlock the potential of Enterprise and Supplier Development (ESD) and the Equity Equivalent Investment Programme, with a strong emphasis on economic inclusion and participation by historically disadvantaged communities.

    “As enterprises seek improved access to capital and the need to remain competitive in this dynamic environment, I believe that the Transformation Fund will be invaluable. The proposed Transformation Fund will unleash Enterprise and Supplier Development’s (ESD’s) potency in driving economic inclusion and participation,” Deputy President Mashatile said. 

    He emphasised the centrality of the initiative within government’s economic agenda.

    “We are going to make sure that the Transformation Fund is at the centre of government, specifically the Presidency,” he said, adding that they will work with the Minister of Trade, Industry and Competition Parks Tau as well as key Economic Cluster Ministers to ensure that targets are met, especially in the procurement of goods and services.

    He noted that the National Treasury and Department of Women, Youth, and People with Disabilities have already collaborated to develop a framework. The focus now is to ensure speedy execution and equally implement the Preferential Procurement Policy Framework Act. 

    The Deputy President moved to recognise the involvement of the private sector in co-funding the initiative. 

    “It is commendable that the fund is anchored by private and public sector contributions to the Enterprise Supplier Development and Equity Equivalent Investment Programme obligations,” he said. 

    The centralised administration of the fund in partnership with business will help increase access to funding, especially for black-owned businesses operating in rural and township settings.

    “Funding will be allocated to various productive sectors of the economy, which includes, among others, services industry, tourism, and agriculture, thereby supporting majority black-owned entities. Technical support and market access will be prioritised to ensure sustainability through inclusive interventions,” he said. 

    The Deputy President underlined the long-term benefits of the fund, noting that it would foster resilience and adaptability in the face of economic challenges.

    Investing in a Transformation Fund signifies a commitment to progress and a dedication to long-term sustainability. “It will enable businesses to navigate challenges with resilience, adjust in response to changing dynamics, and establish themselves as adaptive leaders in their respective industries,” he said.

    Fighting corruption key to an inclusive economy

    The Deputy President made it clear that economic transformation cannot be achieved without tackling the scourge of corruption in both the public and private sectors.

    Corruption undermines small businesses by increasing costs, reducing profits, and creating instability.

    “To promote an inclusive economy, we must commit to addressing corruption by strengthening our institutions, fostering transparency and accountability, and promoting citizen engagement.

    “This includes developing and implementing robust anti-corruption frameworks, strengthening our criminal justice system, and encouraging public participation and oversight,” he said. 

    Access to finance for black businesses

    The Deputy President further stressed the need to find solutions pertaining to access to finance for Black businesses. 

    He emphasised that it was important to recognise that the funding deficits in South Africa are a contributing factor to the failure of small businesses. 

    Despite government intervention, such as Enterprise and Supplier Development, which is a critical component of the B-BBEE framework, he said there was still a need for additional measures to be taken to expand fund access to SMMEs. 

    “Loans are the most common financial instrument for micro, small, and medium-sized enterprises in South Africa, but they often have stringent underwriting standards, making them difficult for smaller businesses with limited collateral and financial records to secure. 

    “This is why we encourage small businesses seeking financial assistance to explore government funding programmes, and business support agencies such as the National Empowerment Fund, Small Enterprise Finance Agency and the Small Enterprise Development Agency,” the Deputy President said. – SAnews.gov.za

    MIL OSI Africa –

  • MIL-OSI USA: H.R. 2659, Strengthening Cyber Resilience Against State-Sponsored Threats Act

    Source: US Congressional Budget Office

    H.R. 2659 would establish an interagency task force to detect, analyze, and respond to cybersecurity threats from state-sponsored actors. Under the bill, the task force would publish a list of federal resources available to help safeguard information technology systems at critical infrastructure facilities. The bill also would require the task force to report annually to the Congress on its findings and actions.

    The task force would consist of representatives from federal agencies, including the Cybersecurity and Infrastructure Security Agency and the Federal Bureau of Investigation. Using information about the cost of similar efforts, CBO estimates that implementing H.R. 2659 would cost $5 million over the 2025-2030 period for staff salaries, travel, and other administrative expenses to operate the task force; satisfying the reporting requirements would cost less than $500,000. Such spending would be subject to the availability of appropriated funds.

    The costs of the legislation, detailed in Table 1, fall within budget function 050 (national defense).

    Table 1.

    Estimated Increases in Spending Subject to Appropriation Under H.R. 2659
     

    By Fiscal Year, Millions of Dollars

    		  
     

    2025

    2026

    2027

    2028

    2029

    2030

    2025-2030

    Estimated Authorization

    *

    1

    1

    1

    1

    1

    5

    Estimated Outlays

    *

    1

    1

    1

    1

    1

    5

    * = between zero and $500,000.

    The CBO staff contact for this estimate is Aldo Prosperi. The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.

    Phillip L. Swagel

    Director, Congressional Budget Office

    MIL OSI USA News –

  • MIL-OSI Africa: Zimbabwe’s Finance Minister to Present Energy Investment Outlook at Invest in African Energy (IAE) 2025

    Source: Africa Press Organisation – English (2) – Report:

    PARIS, France, May 5, 2025/APO Group/ —

    Mthuli Ncube, Zimbabwe’s Minister of Finance, Economic Planning and Investment Promotion, will address global investors at the Invest in African Energy (IAE) 2025 Forum in Paris next week. As a keynote speaker, Minister Ncube will present Zimbabwe’s energy investment outlook, economic reform agenda and efforts to mobilize private capital across the power, hydrocarbons and renewable energy value chains.

    Zimbabwe is targeting rapid energy sector expansion to meet rising industrial and consumer demand, reduce reliance on electricity imports and support long-term economic transformation. Key investment opportunities span power generation, transmission infrastructure, oil and gas exploration and the deployment of renewable energy – with a particular emphasis on solar and hydroelectric resources. The country is estimated to have a $4.8-billion funding gap for large-scale solar projects and is actively working to expand the pool of available capital. Efforts are also underway to enhance financial inclusion and secure more favorable terms for foreign investors in energy infrastructure.

    IAE 2025 (http://apo-opa.co/3GH3mpN) is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 13-14, 2025 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit www.Invest-Africa-Energy.com. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.

    Meanwhile, Zimbabwe is home to the Muzarabani Prospect in the north, currently being explored by Australian-listed Invictus Energy. The company has identified eight high-potential gas and condensate prospects in the eastern portion of its Cabora Bassa Basin project, with the Musuma prospect emerging as a key target for exploration drilling in 2025. Recent survey results revealed significant prospectivity in the eastern basin, estimating approximately 2.9 trillion cubic feet of gas and 184 million barrels of condensate across the eight prospects on a gross mean unrisked basis.

    Minister Ncube’s participation signals Zimbabwe’s commitment to fostering an enabling investment environment and positioning energy as a central pillar of national development. The country’s strategic location, resource potential and improving macroeconomic stability make it a compelling destination for long-term infrastructure and energy investment.

    “Minister Ncube’s keynote will offer investors direct insight into the policy direction and financing mechanisms shaping Zimbabwe’s energy future. His presence at IAE 2025 underscores the country’s strong push to deepen international investment partnerships in support of energy access and industrialization,” says Sandra Jeque, Events & Project Director at Energy Capital & Power.

    MIL OSI Africa –

  • MIL-OSI Security: Westerville Man Sentenced to 20 Years in Prison for Aiding & Abetting Aggravated Postal Robberies, Firearms Crime

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    COLUMBUS, Ohio – Cameron D. Newton, 21, was sentenced in U.S. District Court today to 240 months and one day in prison for his roles in four armed robberies against postal carriers.

    According to court documents, between December 2022 and May 2023, Newton aided and abetted the aggravated robberies of mail and the use of a firearm during the crimes of violence.

    Newton, who was on probation and consequently wearing a GPS ankle monitor at the time, recruited two juveniles to assist with an armed robbery in German Village on Dec. 22, 2022. Newton also arranged for the use of the handgun that his co-conspirator used during the crime.

    On Jan. 23, 2023, Newton provided surveillance for an armed postal robbery on East Columbus Street. Newton was in his vehicle nearby, using the cover of making DoorDash deliveries to evade his home confinement.

    Later that same day, Newton provided surveillance again for a third postal robbery and worked to arrange buyers for the stolen postal keys.

    Newton also obtained a firearm for a co-conspirator to use in the May 11, 2023, robbery of an elderly female postal worker. He picked up accomplices near Goodale Park following the robbery. Newton then paid the robbers several hundred dollars via CashApp.

    On May 18, 2023, law enforcement agents executed a search warrant at Newton’s residence and discovered $22,000 in cash, hundreds of washed and altered checks and money orders totaling more than $590,000, two Postal keys and hundreds of pieces of stolen mail.

    A total of six defendants have been charged in connection with six separate armed robberies of postal carriers in central Ohio.

    “Newton and his accomplices terrorized postal workers in an effort to steal their keys and loot mailboxes,” stated FBI Cincinnati Special Agent in Charge Elena Iatarola. “Through the hard work of the U.S. Postal Inspection Service, local police, and the FBI, we were able to arrest those responsible for these violent crimes and ensure they are held accountable.”

    Kelly A. Norris, Acting United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS); Columbus Police Chief Elaine Bryant; Westerville Police Chief Charles Chandler and Whitehall Police Chief Mike Crispen announced the sentence imposed this afternoon by U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Noah R. Litton is representing the United States in these cases.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Florida Man Sentenced to 9 Years in Federal Prison for Multi-Year $1.1M Retail Fraud Scheme

    Source: Office of United States Attorneys

    CHARLESTON, S.C. — Daniel Cavey, 51, of Jacksonville Beach, Florida, has been sentenced to nine years in federal prison for his role in a multi-year wire fraud scheme to defraud a chain of home improvement stores. 

    Evidence obtained in the investigation revealed that Daniel Cavey, along with his conspirators, were involved in an extensive, multi-state scheme to defraud a chain of home improvement stores. Cavey, and others, would gain access to corporate accounts and then create fraudulent forms of identification for authorized users on the corporate account. Once at the home improvement store, Cavey would shop and charge the purchases to the various corporate accounts. Once the merchandise had been fraudulently obtained, Cavey would sell it for a profit. 

    “Defrauding businesses in this manner not only causes financial harm to the business but also drives up prices for consumers,” said U.S. Attorney Bryan P. Stirling for the District of South Carolina. “This prosecution demonstrates our commitment to holding individuals accountable for complex financial crimes and protecting our business community from such elaborate schemes.”

    “The success of this investigation is a testament to the strong partnerships between the U.S. Secret Service, local law enforcement and the private sector,” said Ben Stafford, Resident Agent in Charge of the U.S. Secret Service Charleston Resident Office. “This sentencing reflects the seriousness of the crimes committed and sends a message that defrauding businesses and individuals in our state will not be tolerated. I appreciate the hard work and commitment of our South Carolina partners, especially the U.S. Attorney’s Office, the Charleston Police Department, and Synchrony Bank’s Special Investigations Team.”

    United States District David C. Norton sentenced Cavey to 108 months imprisonment, to be followed by a three-year term of court-ordered supervision.  The sentence was broken down as follows: 84-months for counts 1 and 2 and 24 months for count 8, which charged Cavey with aggravated identity theft. There is no parole in the federal system. Cavey was also ordered to pay $1,126,686.29 in restitution.

    This case was investigated by the United States Secret Service and the City of Charleston Police Department. Assistant U.S. Attorney Amy Bower is prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Security: Texas Man Sentenced For Federal Controlled Substances Act Violations

    Source: Office of United States Attorneys

    NEW ORLEANS, LOUISIANA – SAUL MACEDO-RODRIGUEZ (“MACEDO-RODRIGUEZ”), age 38, a resident of Texas, was sentenced on April 30, 2025, after previously pleading guilty to conspiracy to distribute, and possess with intent to distribute, five kilograms or more of cocaine, and possession with intent to distribute five kilograms or more of cocaine.  MACEDO-RODRIGUEZ was sentenced to one hundred twenty (120) months imprisonment, three (3) years of supervised release, and a $200 mandatory special assessment fee.

    According to court documents, MACEDO-RODRIGUEZ and other co-conspirators distributed multi-kilogram quantities of cocaine, fentanyl, and heroin within the Eastern District of Louisiana.

    This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    This investigation was led by the Drug Enforcement Administration – New Orleans Field Division Office and assisted by the Federal Bureau of Investigation, the United States Border Patrol, the Gretna Major Crimes Task Force, the Kenner Police Department, the Jefferson Parish Sheriff’s Office, the St. John’s Parish Sheriff’s Office, the Orleans Parish Sheriff’s Office, and the New Orleans Police Department.  The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.

    *        *        *

    MIL Security OSI –

  • MIL-OSI Security: Dominican National Arrested for Child Pornography Offense

    Source: Office of United States Attorneys

    BOSTON – A Dominican national has been arrested and charged with transportation of child sexual abuse material (CSAM).

    Jorge Junior Alvarez Rodriguez, 21, was charged with one count of transportation of child pornography. Alvarez will make an initial appearance in federal court in Boston later today.

    According to the charging documents, On May 3, 2025, upon arrival at t Boston’s Logan Airport from Santo Domingo, Dominican Republic, Alvarez was flagged for secondary screening. It is alleged that during a review of Alvarez’s cell phone, files depicting CSAM were found. It is further alleged that law enforcement identified multiple files depicting children as young as four to seven years old.  

    The charge of transportation of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

    United States Attorney Leah B. Foley and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by Customs and Border Patrol, Boston Division. Assistant U.S. Attorney Lauren Maynard of the Major Crimes Unit is prosecuting the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

    The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
     

    MIL Security OSI –

  • MIL-OSI: Shareholders of Tejon Ranch Co. Urged to Vote for an Accountable Board of Directors

    Source: GlobeNewswire (MIL-OSI)

    SADDLE BROOK, N.J., May 05, 2025 (GLOBE NEWSWIRE) — Special Opportunities Fund, Inc. (NYSE: SPE) and Bulldog Investors, LLP (together, “Bulldog”), holders of 2.1% of Tejon Ranch Co., urge shareholders of Tejon Ranch Co. (NYSE: TRC) (“Tejon”) to vote to elect Andrew Dakos, Phillip Goldstein, and Aaron Morris as directors.   Bulldog strongly believes that electing these nominees to Tejon’s ten-person Board of Directors, will result in greater transparency and accountability and a higher stock price.

    A prime concern among Tejon’s shareholders is whether the company’s massive expenditures will yield commensurate benefits. For example, the Board recently proclaimed that Tejon Mountain Village (“TMV”), an ambitious master-planned community, is fully entitled and “at near-execution stage” and that “incremental investments [now will generate] significant revenue.”   The problem is that it said almost the same thing in 2013: “TMV is fully entitled and all necessary permits have been issued to begin development.” Yet, since then, more than $100 million (or about $4 per share) has been spent on TMV, including a whopping $70 million to buy out Tejon’s joint venture partner. At the time, management characterized the buyout decision as one that “reflects the Company’s growth as a fully integrated real estate company and demonstrates our belief in the future success of the development.” Yet, TMV’s land looks the same today as it did twelve years ago and not a single shovel has yet touched the ground.

    Andrew Dakos, a nominee for director, commented: “Shareholders have long complained about the Board’s failure to hold management accountable for questionable expenditures and that has likely had a dampening effect on Tejon’s stock price. There is an obvious need for directors who are dissatisfied with Tejon stock continuing to be a ‘dead money’ investment and that are committed to providing greater oversight, transparency and accountability.”   

    About Bulldog Investors

    Bulldog Investors LLP is an SEC-registered investment adviser that manages three registered closed-end investment companies including Special Opportunities Fund, Inc., and separately managed accounts.

    The MIL Network –

  • MIL-OSI Security: Illegal Alien and Mexican National Convicted of Possession with Intent to Distribute Kilograms of Methamphetamine

    Source: Office of United States Attorneys

    Illegal Alien and Mexican National Convicted of Possession with Intent to Distribute Kilograms of Methamphetamine

    Defendant possessed over four pounds of 100% pure Methamphetamine

    BRUNSWICK, GA:  A jury convicted a Mexican national illegally living in Hazlehurst, Georgia at trial for receiving a package from Jalisco, Mexico containing over two kilograms of 100% pure methamphetamine.

    Ismael Delgado-Celis, 37, of Mexico, was convicted of Possession and Attempt to Possess with Intent to Distribute 500 grams or more of Methamphetamine following a jury trial in the Southern District of Georgia, said Tara M. Lyons, Acting U.S. Attorney for the Southern District of Georgia. The Defendant is facing a mandatory minimum sentence of at least ten years and up to life imprisonment. There is no parole in the federal system.

    During testimony and evidence produced during the trial the Government established that on September 12, 2024, the Defendant attempted to receive a package directly from Mexico containing what was described as a horse saddle. Before the package was delivered, law enforcement agents removed the saddle and discovered over two kilograms of pure methamphetamine that had been hidden inside. The package was then delivered to the Defendant by law enforcement under the guise of a United States Postal delivery. The Defendant accepted the package from law enforcement and brought it inside his residence.

    “This case represents the continued commitment of the DEA to identify and hold accountable those who engage in the distribution of dangerous drugs,” said Jae W. Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “Keeping our communities safe is our highest priority.”

    “This conviction sends a strong message to those who attempt to smuggle dangerous narcotics into our communities,” said Steven N. Schrank, the Special Agent in Charge of Homeland Security Investigations in Georgia and Alabama. “Thanks to the dedicated collaboration between HSI and our law enforcement partners at the federal, state, and local levels, we were able to disrupt a major methamphetamine trafficking operation and hold the perpetrator accountable.”

    “This conviction highlights the critical role Customs and Border Protection plays in disrupting the transnational flow of deadly narcotics,” said Zachary Thomas, Acting Director of Field Operations for CBP Atlanta. “We remain steadfast in our commitment to working with our law enforcement partners at every level to safeguard our communities from the scourge of illicit drugs.”

    This case was investigated by the Drug Enforcement Administration, Homeland Security Investigation, Customs and Border Protection, and the Jeff Davis Sheriff’s Office. The case was prosecuted for the United States by Southern District of Georgia Assistant United States Attorney Ryan Bondura and Deputy Criminal Chief Greg Gilluly.

    MIL Security OSI –

  • MIL-OSI: The Board of Directors of KH Group Plc resolved to establish a performance share plan for the Group’s key employees

    Source: GlobeNewswire (MIL-OSI)

    KH Group Plc
    Stock Exchange Release 5 May 2025 at 9:15 pm EEST

    The Board of Directors of KH Group Plc resolved to establish a performance share plan for the Group’s key employees

    The Board of Directors of KH Group Plc resolved to establish a performance share plan for the key employees of KH-Koneet. The plan replaces the performance matching share plan announced on 31 May 2024. The aim of the new plan is to align the objectives of the shareholders and key employees to increase the value of the company in the long term, to steer them toward achieving the company’s strategic objectives, to retain them at the company and to offer them a competitive incentive plan that is based on acquiring and accumulating KH Group shares.

    The performance share plan consists of one (1) two-year (2-year) performance period, covering the financial years of 2025–2026. In the plan, the key employees have an opportunity to earn KH Group shares based on performance.

    The potential rewards from the plan will be paid within five months after the end of the performance period. The rewards will be paid partly in KH Group shares and partly in cash. The cash proportion is intended to cover taxes and social security contributions arising from the reward to the participant. As a rule, no reward will be paid if a participant’s employment or service terminates before the reward payment.

    The performance criteria for the key employees of KH-Koneet are based on KH-Koneet’s EBIT in 2026 and Return on Invested Capital in 2026.

    The target group of the plan consists of approximately 20 persons, including members of the KH-Koneet Management. The rewards to be paid on the basis of the plan correspond to the value of an approximate maximum total of 1,094,000 KH Group shares, including also the proportion to be paid in cash. 

    The members of KH-Koneet Management are obliged to hold 50 per cent of the reward shares received, until the total value of the Management member’s shareholding in KH Group equals to 50 per cent of their annual base salary of the year preceding the payment of the reward. Respectively, the CEO of KH-Koneet is obliged to hold 50 per cent of the reward shares received, until the person’s shareholding in KH Group equals to the annual base salary of the year preceding the payment of the reward. Such number of KH Group shares must be held as long as the membership in the Management or the position as the CEO continues.

    KH GROUP PLC

    Further information:
    Chairman of the Board of Directors Juha Karttunen, tel. +358 40 555 4727

    Distribution:
    Nasdaq Helsinki Ltd
    Main media
    www.khgroup.com

    KH Group Plc is a Nordic conglomerate operating in the business areas of KH-Koneet, Nordic Rescue Group and Indoor Group. We are a leading supplier of construction and earth-moving equipment, rescue vehicle manufacturer as well as furniture and interior decoration retailer. The objective of our strategy is to create an industrial group around the business of KH-Koneet. KH Group’s share is listed on Nasdaq Helsinki.

    The MIL Network –

  • MIL-OSI USA: Baldwin, Colleagues Demand to Know Who Killed Minority Business Development Agency, Why & Where’s the Money Going?

    US Senate News:

    Source: United States Senator for Wisconsin Tammy Baldwin
    WASHINGTON, D.C. – U.S. Senator Tammy Baldwin (D-WI) joined her colleagues in demanding that Keith Sonderling, the purported Acting Under Secretary of Commerce for the Minority Business Development Agency (MBDA), promptly turn over key documents and information related to the dismantling of the agency and recent funding termination notices sent to all grantees by a member of Elon Musk’s DOGE, including Wisconsin’s office.
    “In one MBDA termination notice reviewed by our offices, the Department claims the grant is being terminated because it ‘is unfortunately no longer consistent with the agency’s priorities and no longer serves the interests of the United States and the MBDA Program,” wrote Baldwin and the lawmakers in a letter to Sonderling. “The termination notice further states that, ‘MBDA is repurposing its funding allocations in a new direction in furtherance of the President’s agenda.’ … [T]he notice is silent about why the grants are inconsistent with the MBDA’s priorities and programs—which Congress, nor the Department, set by statute. And it suggests the DOC or others in the Administration may be using funding appropriated for the MBDA for other, unrelated purposes.”
    Baldwin and the Senators questioned Sonderling about the notice terminating all MBDA grants, which was signed by Nate Cavanaugh, a member of Elon Musk’s DOGE and “Under the Authority of Keith Sonderling, Acting Undersecretary of MBDA.”
    “This raises significant questions regarding Mr. Cavanaugh’s precise role at DOC and the mechanism by which you or other members of DOC leadership delegated him authority to terminate MBDA grants on behalf of the Department,” Baldwin and the lawmakers continued. “Our offices have also obtained information indicating you may not have been aware these termination notices were being sent out by Mr. Cavanaugh under your authority, which would raise further questions about who is actually running the Department: Secretary Lutnick or Elon Musk and DOGE?”
    This letter follows Baldwin demanding  Secretary Lutnick, on March 25 and April 17, answer questions about the gutting of MBDA despite his testimony before the Commerce Committee stating he would not support doing so.
    Senator Baldwin worked with Republicans to include the Minority Business Development Act of 2021 as an amendment to the Infrastructure Investment and Jobs Act (IIJA), making the MBDA permanent and increasing its funding authorization and reach. Baldwin then worked to bring a new Minority Business Development Center to Wisconsin, along with a $1.61 million grant to support its work assisting small businesses.
    The full letter is available here and below.
    Acting Under Secretary Sonderling:
    On March 25, 2025, and April 17, 2025, we sent letters to Secretary Howard Lutnick raising serious concerns about the apparent dismantling of the Minority Business Development Agency (MBDA), despite his testimony before the Senate Committee on Commerce, Science, and Transportation stating he would not support doing so. In our April 17 letter, we requested specific documents and information that would help address our outstanding questions and concerns regarding the MBDA. On April 24, 2025, we received a letter from the Department of Commerce (DOC) Acting Assistant Secretary for Legislative and Intergovernmental Affairs purporting to respond to our April 17 letter. This response, however, contained a mere three sentences related to the MBDA and failed to answer or meaningfully address any of our requests. Given Secretary Lutnick’s apparent disregard for our concerns about the Department’s actions against the MBDA, we are now requesting you provide documents and information related to this inquiry.
    Since our most recent letter, our offices have obtained information demonstrating that DOC has canceled all MBDA grants—further dismantling an agency Congress statutorily authorized, despite Secretary Lutnick’s testimony to the contrary. In one MBDA termination notice reviewed by our offices, the Department claims the grant is being terminated because it “is unfortunately no longer consistent with the agency’s priorities and no longer serves the interests of the United States and the MBDA Program.” The termination notice further states that, “MBDA is repurposing its funding allocations in a new direction in furtherance of the President’s agenda.” Beyond these conclusory assertions, however, the notice is silent about why the grants are inconsistent with the MBDA’s priorities and programs—which Congress, not the Department, set by statute. And it suggests the DOC or others in the Administration may be using funding appropriated for the MBDA for other, unrelated purposes.
    Raising further concerns, the termination notice was signed by Nate Cavanaugh—who we understand to be part of the so-called Department of Government Efficiency (DOGE)—and is signed “Under the Authority of Keith Sonderling, Acting Undersecretary of MBDA.” Mr. Cavanaugh has reportedly been interviewing employees at the General Services Administration and overseeing efforts to dismantle another agency, the U.S. Institute of Peace. The termination notice indicates that Mr. Cavanaugh now has a DOC e-mail address. This raises significant questions regarding Mr. Cavanaugh’s precise role at DOC and the mechanism by which you or other members of DOC leadership delegated him authority to terminate MDBA grants on behalf of the Department. Our offices have also obtained information indicating you may not have been aware these termination notices were being sent out by Mr. Cavanaugh under your authority, which would raise further questions about who is actually running the Department: Secretary Lutnick or Elon Musk and DOGE?
    Given the lack of responsiveness from the Department to date, we reiterate the requests raised in our April 17, 2025 letter, and request the following additional documents and information no later than May 14, 2025:
    A complete description of Mr. Cavanaugh’s position at DOC, including his title, job description, date(s) of employment, any salary, any benefits, supervisor, and direct reports. Please also identify all other federal e-mail addresses assigned to or used by Mr. Cavanaugh of which you are aware.
    Documents sufficient to show Mr. Cavanaugh’s delegated authority to execute termination notices to MBDA grantees.
    Documentation sufficient to show your appointment as Acting Under Secretary for Minority Business Development Agency and the date of such appointment.
    A complete description of your decision to delegate your authority to Mr. Cavanaugh for the purpose of terminating MBDA grants, including the extent to which Secretary Lutnick or any other senior DOC official was involved in making this decision.
    A complete description of the types of funded activities that are considered “consistent with the agency’s priorities” and “serve[] the interests of…the MBDA program.”
    A detailed explanation of how the MBDA intends to “repurpos[e] its funding allocations in a new direction in furtherance of the President’s agenda,” including any specific program or activity that has received or is expected to receive repurposed funding.

    MIL OSI USA News –

  • MIL-OSI Security: Prince George’s County Man Faces Federal Indictment for Sexual Exploitation of a Minor

    Source: Office of United States Attorneys

    Greenbelt, Maryland – A federal grand jury has indicted Joel Thomas Biermann, 46, of University Park, Maryland, for multiple child exploitation offenses. Biermann is charged with two counts of producing child sexual abuse material, one count of distributing child sexual abuse material, and one count of possessing child sexual abuse material.

    Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI) – Baltimore Field Office and Chief Malik Aziz of the Prince George’s County Police Department (PGPD).

    According to the indictment, between approximately October 26, 2012, and October 28, 2024, Biermann employed, used, persuaded, induced, enticed, and coerced one or more victims to engage in sexually explicit conduct.  Biermann also produced and possessed visual depictions of the exploitation.  Additionally, the indictment alleges that Biermann distributed child sexual abuse material on March 13, 2016. 

    If convicted, Biermann faces a mandatory minimum of 15 years and a maximum of 30 years in federal prison for the production of child sexual abuse material; a mandatory minimum of five years and a maximum of 20 years for the distribution of child sexual abuse material; and a maximum of 20 years for possession of child sexual abuse material. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

    An indictment is not a finding of guilt.  Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.

    This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, visit www.justice.gov/psc. Click the “Resources” tab on the left side of the page to learn about Internet safety education.

    U.S. Attorney Hayes commended the FBI and PGPD for their work in the investigation. Hayes also thanked Assistant U.S. Attorney Megan S. McKoy and Trial Attorney Gwendelynn Bills, Justice Department’s Child Exploitation and Obscenity Section, who are prosecuting the federal case.

    For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood  and https://www.justice.gov/usao-md/community-outreach.

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    MIL Security OSI –

  • MIL-OSI Security: Level One Sex Offender Charged with Possession of Child Pornography

    Source: Office of United States Attorneys

    BOSTON – A Holyoke man, who is a registered sex offender, has been charged with possession of child sexual abuse material (CSAM).

    Justin Ouimette, 34, was charged with possession of child pornography. Ouimette will make an initial appearance in federal court in Springfield at a later date.  

    In October 2022, Ouimette was convicted of possession of child pornography in Massachusetts Superior Court. According to the charging documents, in July 2024, during a search of Ouimette’s residence and person, over 200 files that appeared to depict CSAM, including children as young as three years old, were allegedly located on Ouimette’s electronic devices. A search of  Ouimette’s Dropbox resulted in the discovery of  an additional 200 files allegedly depicting CSAM.

    On July 25, 2024, Ouimette was issued a probation violation, and he was subsequently sentenced to one year incarceration, which he is currently serving.

    The charge of possession of child pornography as a registered sex offender provides for a mandatory minimum sentence of 10 years and up to 20 years in prison, five years to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

    United States Attorney Leah B. Foley and James Crowley, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Jessica L. Soto of the Major Crimes Unit is prosecuting the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

    The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
     

    MIL Security OSI –