A Message from President and CEO Bill Montgomery

A landmark year of performance and momentum.

Celina Insurance Group delivered exceptional results in 2025—one of the strongest years in the Company's history and our best in decades.

After several years of significant industry turbulence, Celina's performance in 2025 validated the discipline and effectiveness of our strategy to strengthen profitability, reduce volatility and position Celina for long-term success. Notably, weather was not a detriment to results this year, highlighting the progress made in managing our book of business and pricing sophistication.

Throughout 2025, Celina continued to operate with precision and consistency, converting the past few years of underwriting portfolio and pricing actions into superior performance. Insurance-to-value initiatives, rate adequacy and careful risk selection strengthened results, while refinement of products and underwriting practices ensured alignment with the Company's risk appetite. These efforts produced a stellar combined ratio after fee income of 89.0%.

The strength of Celina's operating performance was evident in all key financial measures. The Company generated an underwriting gain of $19.3 million and net income of $24 million. Policyholder surplus rose by $26.7 million, an 18% year-over-year increase, further enhancing Celina's strong capital position. These results underscore the effectiveness of the Company's long-term strategy and provide a solid foundation to support future growth, continued investment and our ongoing commitment to policyholders and agency partners.

Celina was deliberate in how we pursued growth. The objective continues to be profitable growth with emphasis on building commercial and farm lines faster than personal lines, while still targeting progress across all three. Premium growth moderated in 2025, reflecting a desire to maintain high underwriting standards and portfolio quality rather than maximize volume. Direct written premium increased by $13.0 million to end the year at $225.2 million, representing 6.1% growth over 2024, a level that aligned with the Company's profitability and surplus growth objectives.

“...2025 demonstrated what Celina can achieve when disciplined strategy, decisive execution and organizational focus come together.”

Beyond the numbers, Celina continued to invest in the capabilities required to compete and win in the marketplace over the long term. Operational efficiency initiatives, technology modernization and customer experience improvements remain key priorities. Two projects scheduled for implementation in 2026 are a new, streamlined claims system and a completely reimagined personal auto product, Auto Security. Both of these represent major investments for the organization and are expected to enhance operational effectiveness and product competitiveness. In particular, the new Auto Security Program should significantly improve marketability and better position Celina to meet the evolving needs of agents and policyholders.

Financially, Celina ended 2025 with strength and improved flexibility. Our surplus position provides meaningful capacity to support policyholders, agency partners and strategic priorities. In addition, the Company's diversified investment portfolio serves as a stabilizing force, supporting results and reinforcing balance sheet resilience.

The insurance industry will always present volatility and periods of uncertainty, but 2025 demonstrated what Celina can achieve when disciplined strategy, decisive execution and organizational focus come together. With a clear strategic direction and an experienced leadership team, we entered this year with significant confidence.

Our commitment remains unchanged: deliver consistent profitability, protect policyholders, support agency partners and continue building a Company that is positioned to succeed for decades to come.

William W. Montgomery

Chairman, President and Chief Executive Officer