Dear Shareholders, We started off the new year on the right foot, building on the momentum gained during a transformative 2023, and are on track to achieve the 2024 operational and financial goals we discussed last quarter. I am particularly excited to share that during Q1, we were able to continue reducing our CAT exposure and streamlining our operations without sacrificing overall growth. In fact, we accelerated top-line growth compared to last quarter.

Our team's efforts to find the right policy for each customer, regardless of the carrier, have allowed us to maintain high retention rates during this effort and our success helped drive accelerating Total Generated Premium ("TGP") growth in Q1 relative to last quarter. Without the efforts to rebalance our geographic exposure, our top-line growth could have been even higher, but these efforts are already improving underwriting results and our bottom line.

We estimate that direct losses from a large Q1 hailstorm affecting Texas and Missouri will be approximately 43% lower than what we would have experienced if the exact same event had occurred in March 2023. Toward the end of last year, we took aggressive actions to lower cost and drive efficiencies into our operations, contributing to our progress in reducing our adjusted EBITDA loss during the quarter. The critical work that started in 2023 has continued into 2024, and our results from Q1 add to the growing evidence of our ability to efficiently grow our business while marching toward positive adjusted EBITDA.

Sincerely, Richard McCathron, President & CEO