Leases
We have various operating leases for office space, equipment, and fleet vehicles. In addition, we have various finance leases for computer hardware. Such lease agreements, which expire at various dates through 2038, are generally renewed or replaced by similar leases.
The components of lease expense for the years ended December 31, 2025 and 2024 were as follows:
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| ($ in thousands) | | 2025 | | 2024 |
| Operating lease cost, included in Other insurance expenses on the Consolidated Statements of Income | | $ | 11,058 | | | 8,413 | |
| Finance lease cost: | | | | |
| Amortization of assets, included in Other insurance expenses on the Consolidated Statements of Income | | 2,742 | | | 2,707 | |
| Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Income | | 245 | | | 234 | |
| Total finance lease cost | | 2,987 | | | 2,941 | |
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| Variable lease cost, included in Other insurance expenses on the Consolidated Statements of Income | | 2,331 | | | 763 | |
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| Short-term lease cost, included in Other insurance expenses on the Consolidated Statements of Income | | $ | — | | | 294 | |
The following table provides supplemental information regarding our operating and finance leases.
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| | December 31, 2025 | | December 31, 2024 |
| Weighted-average remaining lease term | | | | | |
| Operating leases | | 9 | | 6 | years |
| Finance leases | | 2 | | 2 | |
| Weighted-average discount rate | | | | | |
| Operating leases | | 4.2 | | | 3.4 | | % |
| Finance leases | | 4.9 | | | 4.9 | | |
Operating and finance lease asset and liability balances are included within the following line items on the Consolidated Balance Sheets:
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| ($ in thousands) | | December 31, 2025 | | December 31, 2024 |
| Operating leases | | | | |
| Other assets | | $ | 101,812 | | | 45,072 | |
| Other liabilities | | 105,339 | | | 47,732 | |
| Finance leases | | | | |
| Property and equipment - at cost, net of accumulated depreciation and amortization | | 3,431 | | | 6,173 | |
| Long-term debt | | 3,570 | | | 6,282 | |
In 2025, we entered into a lease agreement for a new facility in Short Hills, New Jersey. The addition of this lease drove the increase in our operating lease right-of-use asset (included in Other Assets) and our lease liability (included in Other Liabilities) in 2025.
The maturities of our lease liabilities at December 31, 2025 were as follows:
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| ($ in thousands) | | Finance Leases | | Operating Leases | | Total |
| Year ended December 31, | | | | | | |
| 2026 | | $ | 2,579 | | | 10,507 | | | 13,086 | |
| 2027 | | 973 | | | 12,200 | | | 13,173 | |
| 2028 | | 97 | | | 14,493 | | | 14,590 | |
| 2029 | | 62 | | | 14,010 | | | 14,072 | |
| 2030 | | — | | | 13,055 | | | 13,055 | |
| Thereafter | | — | | | 67,219 | | | 67,219 | |
| Total lease payments | | 3,711 | | | 131,484 | | | 135,195 | |
| Less: imputed interest | | 141 | | | 26,145 | | | 26,286 | |
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| Total lease liabilities | | $ | 3,570 | | | 105,339 | | | 108,909 | |
Refer to Note 4. "Statements of Cash Flows" in Item 8. "Financial Statements and Supplementary Data." of Form 10-K for supplemental cash and non-cash transactions included in the measurement of operating and finance lease liabilities.
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.