American Financial (AFG) 5 Nov 222022 Q3 Earnings call transcript

Thank you for standing by, and welcome to the American Financial Group 2022 Third Quarter Conference Call. At this time, all participants are a listen-only mode. After the speaker's presentation, there will be question-and-answer session. [Operator Instructions] As a reminder, today's conference call is being recorded. I would now turn the conference to your host Ms. of President Vice Weidner, Investor Relations. Diane ahead. go Please

Group's Good Earnings XXXX third results Financial released morning, welcome to quarter afternoon. and Third yesterday Results XXXX Quarter our American Conference We Call.

presentation AFG's Co-CEOs press by III, are Hertzman, the Our and Carl Relations materials of Lindner during These of and Group; be section. supplement, Brian joined today's investor and call. Investor posted AFG's I'm American website, release, Financial on CFO. under referenced portions Lindner, will Craig webcast this morning

turn on I to I of Before discussion the Carl, attention webcast. would over your draw to like our slide to the notes X

also include differ matters the from financial net our detailed reconciliation A of Commission, uncertainties on of website. forward-looking could filings, net release. attributable which Exchange of these statements these in net today certain description our uncertainties can may Securities the risks included measure earnings, are to operating AFG's Some to are in to remarks is that forward-looking. to our and/or These be materially be discussed with or in results earnings We questions. found cause and statements. and operating risks core actual and shareholders responses earnings involve core condition A available a to to references earnings non-GAAP financial

or authorized factual reading our statements. a contain of for reviewed or accuracy. the be errors that, note it intent And materially not may alter you're If a meaning may transcript of please that this it or as result, could call, transcription

to discuss turn the call results. Now, to over Lindner to I'm III Carl pleased our

$X achieved and to respond and Craig results, annualized I invest highlights AFG's core underwriting for alternative team, again, third achieve results. to return portfolio November with capital questions. in this of strong most dividend very to returns continued our over share, cash I'll during position to to opportunistically, industry pleased our a us year. quarter. our results after the to these important employees our our of on management November operating be pleased God, which XX, on catastrophe financial XXXX talented special of investment AFG's reflects helping of We're and dividend shareholders We dividend in October an our our and to investment third despite quarter has shareholders share and and XX we third of release, Strategic of is expectations. in to paid us thank the strong our earnings positioning morning. performance is announced recently quarter, management XXXX XX% AFG's of With Returning per quarterly confidence XXXX. We're payable enable exceptionally the elevated share strong an our our with portfolio, This any glad component the all company's per quarter Brian losses. of future. record in strategy, special $X.XX to capital and XX, Craig on cash financial exceeded regular of addition Good

in share per the dividends catastrophes such of we're the the wake of Ian, that $XX declared aftermath special role Hurricane has in company of as plays XXXX. the dividend, critical special insurance in the this. With In reminded

businesses agents claims help to and covered identify customers communities. efficiently rebuild teams to with our work continue our and claims process and Our their quickly, policyholders and their to restore

XX. through walk who caused financial results prayers by Ian. with affected remain to Craig position investment the performance AFG's the our by those at to now been us turn and have and quarter third discussion over Hurricane overall thoughts I'll Our devastation September

earnings XXXX. the share in for compared portfolio, AFG's strong The X, compared per year-over-year to to earnings portfolio on slide we $XX $X.XX prior reported included or non-core the the was quarter that to securities of investment after-tax for earnings equity September summary share, turn net and in $XX number you'll AFG after-tax year Please in $X.XX in is the share as or returns of continued of result X, Carl. $X.XX operating year-over-year of very $X.XX quarter. lower quarter. of mark-to-market losses net Thanks, at million decrease per core alternative performance information slides X the in XX. to see the realized primarily losses net that third million, period. the this per and own On share of this from per securities Included net

AFG's a capital Now, investment $XX.X share are maturity portfolio, position liquidity. I'd investment X AFG's few fixed the spreads end billion the and and details financial at and to X. XXXX. The the reflecting third slides were market on about portfolio interest unrealized in our presented of $XXX the rates of credit and increase compared year-end million portfolio losses Pre-tax AFG's like to comments on widened quarter, performance discuss showing

presented nine In acted fixed fixed cash cash of X.X we're the September at yields XX, invest increasing rate quarter medium opportunities yield approximately earned the in X%, X.XX% first the compare X.XX% maturities years from and P&C the the including around the third the lengthen our equivalents of on XXXX, favorably in of current two earned third duration by approximately December high-quality years and rate of at at XXXX, fixed XXXX. to environment, of able maturity to we portfolio, XXXX quarter duration months on to in interest XXXX. During which securities environment, and maturity interest XX,

rates portfolio points as on much of XXXX. market interest compared rate in maturity one current XXXX, we benefit third to to In quarter earned to impact higher expect of tied follow by three expect that assuming quarter portfolio earned rates. interest most floating look Altogether, XX yield addition are we the future fixed the which in or to fourth basis by the as of month short-term X.XX% favorable additional increase expectations, our increases as indices, month the to reinvestment from of securities, our rates, we forward, of

the results Looking quarter. for at

the annualized investments alternative three XX% approximately Property XX.X% months XXXX in September quarter compared XX, ended quarter. the than the XXXX third net on was lower period. comparable investment return X.X% & the of income for to XXXX, Casualty For was XXXX The

of September Excluding months and assets. investments, the for the XXXX net impact three increased rates by invested of our XX, of ended operations and income year-over-year, investment of a insurance Property in the rising alternative Casualty interest impact result higher balances XX% as

investments opportunistic to of first guidance sales overall during year, XXXX. months in million of for these including assumes yield on investments Our the on an full six nine in XXXX properties strong the of performance months the earnings the first $XX multifamily XX% based year the alternative annual the of earnings related of

Our traditional continued fourth from guidance lag performance multifamily alternative investments performance as XXXX, continues assume generally the will a to equity that investments. to public in investments the Valuations quarter housing offset on are of our reflect in our equity investments. performance of quarter we strong a of of weaker markets is equity our private equity minimal investments performance fourth income expected traditional reported poor of and of quarter private impact private the third quarter

approach well market environment. well served investment current in opportunistic yet us we're disciplined believe this we Our has positioned

summary fixed continues see As of grade XX% investment X, to our with and maturity turn one two P&C Slide group to position you at our AFG's a XXXX. designation XX of portfolio quality portfolio can its our portfolio of Please maturities two you'll be investment categories. an weighted or on fixed highest Slide XX% find X where high financial of September NAIC with

investments This and included of approximately capital XX September parent company million. was approximately cash XXXX. excess Our number $X.X billion at $XXX

our the $X.XX to regular dividend. quarter, returned of per our million payment quarterly share During we through the $XX shareholders

we or through the special year end Following additional excess special dividends for than that the of dividend $X of the repurchases project remaining $XXX declared our less available share is XXXX. capital yesterday, million

As repurchases on for total capital and of you losses is and recall, may target unrealized available fixed impacted of capital is our XX% by as maturities. and view our special debt-to-cap by we portion limited share that number gains dividends the that excess

by to And note market in debt repurchase excess each XX, value September distribution rising value. However, in plus that to can debt today's maturities, of for up we credit frees below dollar to rates it's losses book periods of capital fixed on shareholders. widening X-month per approximately due third important and interest declined quarter and unrealized approximately dividends reflecting AFG's spreads. ended X% the $X XXXX par repurchased share our both

of Excluding common stocks plus compared our share in our related and growth we duration to achieved maturity dividends fixed XXXX. of maturities, to publicly exposure third when quarter per unrealized some the to losses performance book peers helped portfolio fixed limited year-to-date. traded somewhat in short The value during and XX.X% X.X% adjusted

in be over per $XX declared back dividends the With continuing AFG special operations our to now to the to P&C dividend while discuss and position. declared the strong share $X turn XXXX. yesterday, I'll in per Carl special our in excess for capital XXXX, expectations share has a results of call

you, Thank Craig.

if renewal manageable pricing all were our Casualty of to & exceptionally pleased loss are return Now our vast and I'm overview continuing the business or to Slides written turn to nearly of the ratio Catastrophe achieve equity exceeding trends include businesses, strong in quarter. results. of of during the Property in third we're in so growth X please an continue and X excess excellent webcast, businesses that our premiums of meeting losses majority you which on earnings be targets. and Operating and net in prospective to gross quarter report

of year-over-year As operations Casualty P&C lower third million in an Transportation quarter profit compared Higher of and profit by generated and to offset underwriting underwriting XXXX, more Specialty underwriting in the in Property you'll than profit insurance Slide Financial our on X% our was a decrease. $XXX Specialty see groups. million Group Specialty X, the $XXX

P&C renewal renewal The to new comp of Year-over-year our compared premiums specialty this in XXXX a group growth increases increases XX% business our of higher rate crop for opportunities to year. to exposures the attributable the majority groups, entire to X% specialty book reported the the opportunities, each the Gross that XX% quarter drivers have and the our was focused workers' nine about of rate in level gross and aggregate, quarters. line quarter result increases. portfolio and include excluding of be continue loss impacted losses. combined across a and X% pricing agents across premium first prior business excluding vary the more pricing in profitability-based year-over-year months We the or and prospective due respectively for and higher time and of about points over achieving increased considerably rate even XX confident good development. Specialty approximately in very is about a Renewal written increases reported businesses impact rate and in year which XX% XXXX increases respectively XXXX with environment. in our overall as businesses. in XX in combination primarily new on period. in in change related to up our straight feel was ratio Casualty X.X increases rate been excess AFG's loss been the the adequacy up us quarter throughout comparable good quarter. favorable of trends has is of time, to losses Ian and and adequate exposures overall year P&C continue we XXXX X% cumulative favorable stay to workers' to third and of than for achieve and approximately achieved the XX.X%, third trends, points strong third attributable The reduction was of reserve estimated premiums impact underwriting X.X the the for X.X including of prior quarter and and the some prior reinstatement ratio Average of enabled million at our reported Results renewal catastrophe ratio Catastrophe quarter In us X% for $XX overall points impact the about rate XXXX to written increased which the of third P&C of quarter. excluding across Hurricane Specialty slightly comp prospective of to results Property net feel help growth catastrophe within ahead for reserves. by to prior due the businesses XX% in the certain year have commissions of approximately the which growth of a for We've compared

when and ratio year fourth third substantially in $XX in level profitability, look X from to in the million booked quarter Transportation portion the has crop earn for primarily Slide quarter-to-quarter, generally Specialty Transportation group third high higher when million points to in few compared of is to premiums each Now losses XX.X% at period. reinsurance I'd the XXXX net in compared the a of comparable $XX in Property premiums and the third in in in and been our Property year-over-year million to from of crop year. Accordingly, The like business premiums calendar underwriting and of in be way, quarter, Group of Casualty businesses Catastrophe $XX that year that the of the highlights turn of a Transportation year-on-year booked it's the of the crop lower group, profit third in quarter period our a quarter quarter Said Property to the combined higher XXXX. ratio XXXX, can of and remember ratio business Group quarter. crop XXXX is an The crop than elevated you another Groups. this overall to at third X.X process in very important the compared in year until XXs XX% XXXX, our the underwriting million results quarter earned comparable Property review complete were the result the a combined reported to underwriting combined the profit estimated. the each as quarter harvest high we $XX reinstatement When the of and were third third because strong better inclusive this a the XXXX achieved a largest in XXs.

had results than business period. third larger So the in crop impact the a on quarter prior

harvest Transportation for for higher period corn serves our The discovery Florida spring consistent X% was with ahead Hurricane and discovery from October pricing respectively. of profitability calendar of volatility. majority corn XXXX is from approximately soybean citrus is and have and we running for soybean prices, an business. standpoint. combined a both The lower our group. USDA's XX% estimates within group crop Excluding quarter settled periods, of average crop crops a these widespread soybean Despite this year the strong yield XX% for ratio pricing the and expect to of losses reduced which generally while was Ian, ranges to Property period, harvested the desired and as month the both well averages the a Harvest than with continue corn to XX% of year due

higher Third quarter. group third in quarter gross and compared respectively, XXXX XXXX net written premiums when the this were XX% and XX% to

reported year-over-year While futures nearly by driven higher commodity in group crop in quarter. all insurance businesses this our premiums the was growth business. pricing in higher The

second in year. Overall, X% rates the increased quarter third in quarter premiums Excluding quarter. year of third impact the when of gross net group renewal insurance, consistent XXXX third XX% the XXXX crop XX% of average and with written for quarter the compared to and achieved renewal this respectively, increased rates this on this

mergers this services in liability million period, Specialty social liability, higher which XXXX partially decrease reserve businesses prior compared $X reported ratio XX.X% Specialty business, overall profit comparable points in results to our result comparable XXXX comp the the calendar executive than inclusive excellent reinsurance year. group, in development. an X.X this an quarter, acquisitions third was Underwriting million in year the favorable in quarter, the and businesses exceptionally offset the year losses third achieved and Catastrophe excellent. million continues of last strong be the period. third profitability overall by reinstatement year in quarters overall premiums of Group of and were workers' in Casualty Group prior of our year in to an and the the combined underwriting $XXX $XXX net both higher the The profitability year-over-year Casualty of in in Now primarily achieved

financial increases quarter. of of catastrophe pricing decrease an the of million $XX group, of reinstatement an year profit previous group growth in quarter in reinsurance comp and lower Hurricane businesses XXXX, This an prior this overall quarter. of acquisition primarily impact group payroll quarter the of and and excluding million this underwriting the the for the the points gross compared of million improvement to XXXX a during of consistent the Group exposures in XXXX. profit $XX partially year during the from third Factors losses net prior Financial offset compensation institutions included the combined pricing year-over-year our contributing for $XX all renewal increased workers' net over over group when with growth of resulting of quarter premiums ratio quarter third increase Ian losses third in premiums the quarter X% the the of with year in the were growth period. premium were both in our that growth businesses This this was in prior in prior social our businesses renewal third an for businesses Year-over-year Third pricing the of million Renewal quarter. up by to workers' economic business. was in Majority reported inclusive premiums and X% the reported the business. to achieved our compared this year group Catastrophe of written X% increased services mergers underwriting this Renewal this on third in to nearly XXXX, Specialty affected group same business. period strong X.X up $XX from quarter in was the X% XX.X% recovery compared liability third rates result quarter. quarter. reporting

when premiums pricing mortgage in quarter. increase Financial quarter. X% our approximately higher business renewal Group prior Specialty in the written the up previous Renewal in to pricing net X% and institutions the quarter, the respectively year to XX% financial period. to quarter premiums protection contributed Third one point related lender-placed in XXXX for the achieved were was gross the compared Higher gross up than insurance and

any during the was of runoff operations our were XXXX environmental Now our review third accounts the and within claims expectations P&C new XXXX, was observed. identified our our quarter internally asbestos group. we ground-up to and annual from consistent completed undertaken and exposures the No with examined resulting relating review review the of This and open study. generally trends and all XXXX external in-depth considered activity trends

As a A&E the to net resulted change in result, P&C no reserves. Group's the review

enjoy continue of railroad ratios, averages well are reserves and industry above which the assessed robust which the for historic operations. manufacturing of strength our measure one survival We've A&E adequacy We to also and and the environmental our asbestos of are reserves. our

to slightly liabilities liabilities included at revised adjustment on environmental three a Asbestos for adequate. be core earnings continue adjustment This environmental small third the based We made minor is operating quarter. sites. our AFG's in to projections

actuarial outside Although, assess engineering and of most to based manufacturing engaged and our on to specialty the of the claim liabilities legacy merit we we're and XXXX for insurance payments, moderation both and frequency in XXXX, reserves and firms counsel recently emergence continuing help and outside engagements. and assess railroad such

to for If an summary share, range favorable continue increases both you rate XXXX and from property in see our we per $XX.XX our market expect share. XX, of $XX.XX We opportunities growth to please to casualty to continued and ongoing expect page $XX.XX guidance AFG's operating XXXX range full outlook. exposure to of narrowed growth. of favorably turn the per we net be slide previous arising earnings from core with a now $XX Overall, in

back more regarding from allowed of $X results of year strong earlier. expectations provided by Craig have crop February, that months than range overall the the Specialty and payment We average Property us an that special for XX% combined dividends. XX% very nine the full the pleased than and guidance midpoint midpoint reflects range. first guidance to XXXX through of and to initial to the income shared notwithstanding the of XXXX increase per XXXX consistent than the investment Casualty written XX% with We're Our shared assumptions and XX% share our billion year are guidance our to previous in of between expect slightly the higher XX% more guidance premiums Group $X billion ratio Net XX%, the reported previously. from our $X.X narrowed XX% now in expected be with our now

to average Now the We each now year, for we months expect now Property in to Specialty previously. the XX% range this of looking our for written growth ratio continues XX% the in estimate the Ian. Group. a results XX% and first at from XX% expect to the Hurricane the and in range of previous year an group of of the XX%, in a impact narrowed our Transportation ratio be in This range Group of XX%, to provided now to our to earnings net XX% assume based for crop on the increase premiums subsegment, combined We from reflects range guidance nine XX% XX% of XX%. of to range our to produce combined Casualty

year Our all continued continued businesses guidance overall. results the calendar assumes including group comp strong businesses across our workers' in profitability in

experienced written net result growth our results which narrowed higher favorable are in be X% be to workers' XXXX tempered initial the decreases our book, of by loss will Premium expect X% this comp the We rate in guidance. line. to with than from range premiums

of range expected from written in XX% Growth Based our a and expected in the at XXXX now midpoint one the our be XXXX. XX%. reflecting X% XX%, Specialty our Financial XX% in to down now XX% expect group results to the nine Group's ratio in first We the to of of and pleased to of are and X% creation. that renewal months, strong opportunistic operations flexibility to be excluding we from Craig of premiums X% then we of point report to we're premiums combined these XX% balance and comp, about up previous to to quarter range record workers' the I range of XXXX. losses Excluding higher rates very increase previous is sheet to believe of proven approximately in from And midpoint the range entrepreneurial comp very we upon one this we're results be culture this long-term well renewal for exceptionally range excited for the continue proud point to the remaining in financial net to our XXXX. of combined group very the overall us Casualty be strong of XX% increases Specialty and estimate rate Ian. X%. than our expect our in expect and our Hurricane We position value months with Property

Now, of lines questions. Q&A and for we'll Craig happy and be the to open respond the would portion I today's Brian call. to your

Thank first you. Michael comes Morgan line from Our question Instructions] the [Operator from of Stanley. Phillips

is line open. Your

pricing Curious book your Thanks. of a either your P&C far I hearing kind industry, guess we're Obviously, thoughts obviously. morning, see parts property. industry Good But business But next or of lots book you and price high-level of yourself concerned business and of quarter. do are because you're the question casualty, kind next the unique mixed again guys casualty either where of bag reinsurance pretty And in you the year? everybody. own so and on this where more moving inflation of see for you head or had year? actually here for

kind kind the impact than reinsurance when in some other agencies' every of a pricing social picked that's fixed interesting is property capital the on casualty impact we're is exposed required. I rating is folks that you bumps both of the and And haven't that having in environment in think the do macro debt portfolios inflation the the of the capital the lines. having some expected of higher income have operating or of at to think side, company of level increased catastrophes today size the I is look calculations on that thing unrealized with losses which up casualty and

Fortune be probably, interesting very soft more to there's excess areas too that that's pricing few bet than take My increases going we in and see into going and a XXXX to is that. competition arena that price should The XXXX. be the there continued opportunities liability environment. So,

them, I will that -- because new that's think there for competitors home competitors few the to been aggressive. wares space. have that those that be -- I some there's for a think new thinks protects come in new And that in excess quite I think playing everybody roost higher will been things too entrants, but

that. our doesn't D&O think I other an public underwriting is surprise of saw noticed in making large had But, D&O public business. the competitors in fairly is there. in the rates side only a think area Public profit adjustments And XX% we marketplace, we're we the professional few our D&O, lines in quarter, decline the D&O the me. I reserve

even think over at workers' think, it think going when there adjustment need I on competitive and as and and what lines costs. for I'm be tell going overweight of that rate in areas. up than frankly you I So the continue Those look be may kind in bottom-line with stay market California to or there, there decreases that to be the some comp in also a forward. that time an what's ability going to are should I they're liability competitive seems the going I've the casualty commercial that. loss inflation higher the to in can bullish forward But to get continued reasons be about price very mentioned more you auto

Thank great. No you. appreciate really Okay. it. That's

you come excess and mean inflation those of a mentioned layers good bit I there's in well. on You effect more as of do -- layers. obviously some leverage competitive come kind there here of that

will Casualty the how book have concerns there? that on you own impact on guess excess I your Specialty the So, business layers in any inflation

we XXXX. continue And That part to our on trends get ratio price Well double-digit higher business sure. And that. I to Fortune using trying more of as think we're the that on of we're we're prospective loss using our business. increases XXX

seems we're working off base trying costs that are project excess our our down not business. D&O and primary I because of or recognizes we how dollar And blessed impacted profitability excess business we're and as to to think prices hour a be adjust exposures umbrella So, being there. I think I we're of excellent getting. first feel with in the lower that book in first underwriting loss everybody the substantial liability and on that the really the that in

of So, we of. program and of habitational had we're out excess the that and bump that umbrella a years a outside a ago we're business number

blessed good begin with with. I think a to foundational profitability we're

think and for ratio to that. we're higher trends trying So, loss I prospective the adjust

our So, excess opportunities the feel continue liability and businesses umbrella there. to about good real and

you. go course, inflation you all also finally and of up Okay. hand. social hand involvement mentioned comes guess that I time Thank just and kind the of inflation because and social

any things that long-haul trucking might give you're over think seeing flags the I your next year? business yellow in

we've us of think eight our -- concern in the I in over commercial and And liability lots been commercial I almost commercial XX, part XX one the why business now. of for rate past we've auto XX things auto liability auto reason that's think seeing that taking years been years.

using we look to our take continuing in when ratio today. X% a that commercial liability close auto at that rate. try we're get perspective about So, we're trend to loss And to

is is auto our breakeven but overall -- in and returns small or be results and is auto we're as I that with our auto to seeing. combined commercial inflation the having the underwriting liability profit business think our of targets more commercial rate we conservative generally auto commercial meeting targeted try our overall commercial business a Our projections ratio part even the

to in in part the we're going I So, that. to commercial mentioned auto rate as -- to particularly need before we think business of I've take I think our continue liability

it. you Thank your Appreciate time. for Okay.

you. Thank

PSC. the comes line next Paul Our of question Newsome from of

open. is open. line Newsome, line Paul Your your is

about talk is change. out of thoughts hold But hope Sorry and name thinking the general huge today. you in it's of to a in big some do think some margins you happen trend sort the Or sort if going I workers' essentially this expect in Are that margin business. what is outlook industry reserve profit range obviously about could good frequency I just from the called. didn't my on hoping years amazing had continues? expansion a business. profitability And and a of perspective you picture frequency of years bit level was maybe downtrend for we've the for has comp that hear that had the little of you releases that

on -- and to that working a give good try on budget detail more job that. projections XXXX in do our and we just we to generally We're and try

we're is XX% makes written year. our today So, comp our that up on of of process. in perspective about My gross last part business premium the it early about

overall profit third all quarter year months overall are results months accident year year good good year. be year third of Our this expected underwriting nine underwriting for expected and this the in overall in basis an a accident profit nine the even and to calendar quarter on for and and excellent

well Our Summit comp a Interstate's underwriting on and Southeastern of basis. are business profitability National all both or year an business performing strategic year and accident calendar

our underwriting Republic We for year reserve profit, this underwriting nine we're that and and price and an position year X%. growth the pretty feel of payroll -- expected is strong. think around. a We're seen months underwriting mid-single-digit small picture actually business -- months calendar still about that through loss California Our price -- have approximate a I we for nine turned businesses in but that's subsidiary has our we've significant the third and year despite -- had decline in accident projecting premium of increases actually much all quarter that which very

X% workers' or comp X% trends all Our loss prospective business. loss are ratio of -- down to across our

I than well. better seems of be a that present. lot think to Medical indices would what the bodes So,

grow it it to as continue some and going business to the be thing be by accident ability that's that. in our call profitable forward. I workers' to year a historically, the in of has and harder So, Will comp what been same margins excited confident at be

to economy goes the with going with year. I next in have what forward do think on the may of that part

Again So, hope color. kind you gives that on perspectives. and in I 'XX some we're of early planning our

or swing sort if of in claims great. inflation that companies prospectively to you up respectively. view on business the the factor would about matching be. been comp, is appears in other And not talking workers' because more improvement be or drives being of book ends underwriting they That's analysts reason workers' state worse underlying whether workers' steady But your is as the the asking Book better guess in comp kind obviously, how a up year have it what of next sort I excluding to less rates so. to have the that the get ex it's profitability comp to I'm and on an we're a or or

there question the I what is pieces are? my So think is, guess that something pattern, or moving about am I something wrong thought with I when prospectively missing

workers' Are asking me that improve? asking? comp question. I think Is results or what I'm clear again the not quite you're if you on

you to profitability about a to I'm it's prospectively mean or? not What the whether stable about make is from asking is driven I'm book or changes Well, and be book by think how asking to that what the changing comp would really that comp perspective the would of appropriate sort fairly prospectively nonworkers a is workers of sort not think projection.

we probably answer me we've on and -- through think, planning that. for give about can that I I can it's I you for a year until worked of get early too more talk kind our when to an next little own bit the guidance

for for catastrophes mentioned and about opportunities year. -- reinsurance costs earlier, out our macro charge social businesses rating next the how house bullish those capital order I for the going going and postured up the I'm about very we're with and level how hits in very excited high unrealized our trends -- there almost tightening of agency all the with and inflation, on situated, everybody, of all and we're with As in with

results the really wonderful. been quite have you. Very much Its appreciated. I agree Thank helpful. always

line Shields of comes Meyer next question Thank with the [Operator Our KBW. you. from Instructions]

is open. line Your

detail have of a the thank on it an the in I Property questions. the Did just Transportation. much impact in Great. have very quarter? you. increase of the couple on Thank on underwriting and crop rate you for Carl, ratios the small impact

really. because uniqueness pricing really don't crop don't it. we segment include -- really that in index not We the of of no just the for No,

that associated repurchases? helpful. par penalties that mentioned any No, debt Also, the current regards you debt below with That's Okay. to with sense. sense. makes that you Are can there buy makes back

So, But then interest in what our sort make-whole the rates debt like we that call that where par. be of a were in that open at would at make-whole buy with has of provision. are capped debt, calls And back could today most discount. our a market

transaction could back buy in we or larger to even par at So that a better.

talk Okay. you Fantastic. you're And then with was regard phase I to about trajectory. could the the I investment interest about next thinking rate the how guess of hoping portfolio

Meyer. is This Craig, Yes.

continue So going through to in Fed increases the be some peaked. Clearly, we that our than opinion probably put others has is probably expecting. think up and to rates inflation leave longer might

small investing are term high-grade money. We amount five type buying a comfortable of intermediate to seven-year paper,

than we year-to-date fixed have investments. new our less I little think non-investment-grade in I X% think invested a maturity investments of invested was

You amount that with typically type in names We're the really we've purchased some said the I of and not high-yield BB sticking we're for yield. reaching type better small ratings. paper BB of as

short We expect have with we're portfolio little benefiting But are the I duration large than on of a pleased comfortable think to couple amount of pleased duration are with you duration been in us positioning continue floating of extend rate years. to today. at now were major of the the in longer -- investing last extremely securities a money we the with we should pleased way we the portfolio. very the extremely the which

I That’s for. perfect. Thank That’s you very was looking what much.

any the I'd remarks. questions to Thank time. you. at like this over call Diane to turn I'm showing no back closing Weidner further for

and all you thank results us you discussed -- your to look and talking we for third forward with you this all year for share and time. as our again full fourth joining as on quarter morning, we quarter Thank later results we

participating. Thank for and today's gentlemen, you. all conclude Thank Ladies this you does conference.

now may You disconnect. Have a day. great