Everest Re (EG) 9 Feb 232022 Q4 Earnings call transcript

Good day, and welcome to the Everest Re Group, Ltd. Fourth Quarter of 2022 Earnings Conference Call. [Operator Instructions] Please note today's event is being recorded.

I would now like to turn the conference over to Matt Rohrmann, Senior Vice President and Head of Investor Relations. Please go ahead.

welcome Everest and Group, everyone, morning, to Re the Ltd. Good call. of XXXX quarter earnings fourth conference The today's President executives and Everest leading Mark and Andrade, Kociancic, CEO; President Executive Vice and call CFO. are Juan by other the team. We're also members joined Everest of management

also will including are Before filings regarding on today's Everest disclosures estimates, management comments with respect and in projections to to the the call reconciled we preface comments and similar uncertainties noting financial filings. by These certain begin, refer subject may that measures. assumptions as non-GAAP statements, these and I in extensive SEC Management noted our to forward-looking financial risks, items are earnings statements. release

over that, Juan. With call turn I'll to the

Matt. Good everyone. you, for morning, joining you Thank Thank us.

strong strategy objective of in growth Everest's and of year for driving excellent sustainable fourth and underwriting expansion positive our advanced consistent shareholders our quarter of We creating our targeted margin momentum. value another capped disciplined continued businesses. execution with both performance

diversification our increased healthy each of combine increases consistent of improved this the risk return across geographically When line. profile and segments you rate adjusted in and and terms, with product Board. our all We by improved both

insurance line outstanding further delivered future. and franchises top Everest for our executed positions global well market We our January the reinforced and bottom solid grew profitably primary X Both reinsurance This division an performance. renewal. leadership and

over in in operating volatility, year, uncertainty achieved costliest the a year billion We resulted underwriting both and an despite year, and Our $X profit losses income industry solid results in catastrophe market result. in fifth billion operating the these excellent actions the totaling and equity geopolitical return $XXX for double-digit and CAT the quarter history. for economic on over

a opportunity. In great wide for and runway in future a deal short, XXXX built accomplished we

attractive positioned the more we opportunities Everest We seize than talent ability drive with have the and this and top tier agile in our on and and accelerating commitments is driving to uniquely XXXX. momentum and well-equipped deliver are business. ever

full in ending year XXXX, the the I our Now, dollars briefly the In billion underwriting written recap company X will at grew in combined beginning focused CAT despite on generated by is an XX constant with X% This ratio. points in year $XXX at profit year. near a Group the level. million a improvement financial highlights $XX approximately We gross year-over-year premium. we active

The best-in-class loss the basis also combined XX in improved of the and year-over-year point operating XX.X% ratio of at from ratio. X.X%. end group XXXX achieved we improvement remains ratio The attritional expense a

investment in generated quality our investment million high $XXX net income. portfolio Finally,

optimize to actions significant Our the the rising investment environment paid rate position past three for a and have over portfolio years it dividends.

turning underwriting with segments, beginning Now our reinsurance. to

XXXX Our enhanced our reinsurance division's position. further focused execution leadership partner global preferred and in market

and solid while We top bottom-line our achieving continue optimize portfolio to growth.

on was full This the X% and by premiums. year, written the For billion gross growth basis broadened dollar to returns. achieve a growth driven cedents of with highest our constant with opportunities total capital nimble allocation our core $X.X reinsurance in was

us well there's positioned year the during profit take X. strong a conditions January improvement also underwriting to trading took ratio and million in $XXX at of combined resulted shed X.X 'XX. underperforming for actions XXXX actions of business. We advantage deliberate over to from point XX.X%, in This the These a

attritional the points respectively. attritional XX basis XX improved both year, the and full loss at down combined XX.X% ratio the basis at ratio For XX.X% and points,

Hurricane X% quarter, second reduced actions demonstrated the underwriting deliberate largest share hurricane less our the third from in significantly Ian in U.S. market Our by CAT losses, our history. than

provide relationships outstanding deep and and leveraged more sheet more we a book, an higher few renewal. culminated X/X client broker Reinsurance color dividends. Our pay to our on profitable which and margin I'll to continues minutes. in focused position, strategy balance XXXX, strong in Throughout market January building X

turning Now in by with and the in talent dollars supported reach, $X.X set of gross was quarterly tremendous made capabilities, insurance of premiums. constant across by by while expanding global our we've insurance primary in line the and quarter. This is growth division. fourth written premium product the billion new finished XXXX, milestones. diversified breadth year balanced We and strides XX% In hitting and to Growth record our product business important financial geography.

excluding workers' significant After achieved the rate cumulative year. digit average and of four we compensation years high-single increases, throughout increases

commercial and the rate, by driven to by additional revenue addition margin were general increases payroll exposure against created quarter growth liability property. increases pricing and in In auto, led trend, loss

Our contributed cycle key and pivot underwriting management benefit top quickly of expertise, advantage. Everest to relationships track-record, the influx acumen ability an to our our profitability, actions continues with a improved proactive to underwriting from continued execute talent market strategy. our to is

points full X.X profit year XX.X%, We which of Division combined $XXX ratio for underwriting new achieved the down record of million, year milestone Insurance the full year-over-year. is annual a with a

attritional improved points basis year-over-year XX.X%. Our also combined to ratio XX

are We even scale. to connected our an time a efficient on exciting It's operations primary global more our for business. enhancing become and

look see momentum greater continue ahead. to We to significant opportunities forward and I even

best got a wins, of precise execution. our returns. and there deployed multiple capital where with we portfolio, year margins we've was areas enhanced our the adjusted reduced get the risk XXXX risk-adjusted return. We consistent could diversified volatility, expanded in We and

our diversification We sheet. net our balance portfolio improved also to exposure we growth continued increasing via while internationally. All this bottom-lines and our through property and reshaped top accomplished

for pricing, conditions As property defined risk-on attractive our I provide and before, we terms range. returns within mentioned CAT remain as trading

X global conditions reinsurance strength. pricing as executed Everest result, stronger portfolio and improvements. a have beyond. significantly by reinsurance precision, market our January which we leveraging we X a of and taking setting for support leadership heading Turning set achieved world. a into of XXXX We and drove and renewals them portfolio expectations the approached and team the significant to well-prepared proposition, XXXX, our of clients the our advantage goals market global clients We superior one were brokers clear a early to excellent position value January around by equal with and from renewals every With with

also substantially In improved addition rate, to and conditions. terms we

property We both at reduced payrolls. and and domestically to points improved drove and We targeted exposure attachment higher internationally secondary returns. opportunities named materially risk-adjusted attractive

to across our meaningfully, In up expected strengthen leveraged our the were CAT Significant time, the our same risk-adjusted The portfolio. property lines North increases the property overall. significantly CAT average And materially. casualty the increased and continue further was At property all and property diversify pricing for resulting XX%. CAT portfolio America, reduced conditions In return terms evident change for improve approximately geographies. rate we also and CAT to and business attachment market XOL point professional rate in risk exposure. increased global

Asia. We our the renewal by our increased regional expanding throughout Europe expectations Internationally, participations through exceeded base of our grew and and portfolios new X/X clients.

marine, in exposed particularly We to Ukraine in violence. also lines significant Russia, saw movement and specialty the war aviation political rate

am consistent with them our clients. heading this with set I find in outstanding communication early our into renewal distinguished solutions. with our of brokers to pleased the very and Everest constructively and and performance by reinsurance team. work itself We X/X expectations

with expanded improved we clients. margins deepening and a and portfolio brokers As relationships our result, our while

reinsurance Asia continuing continue market and and expect on Looking pricing focused forward to renewals, our while in the growing we diversifying in see abundant growth Europe, capitalizing future portfolio XXXX markets, dislocation on opportunity continue. momentum in to property. We all to further

on the firming see reinsurance January and environment, significant firming need will of the and insurers prices discipline. to primary XXXX, Given X maintain should risk market heightened in also they underwriting

to XXXX objectives, outstanding company forward while our our under look and strategic of the The for achieved consistent I 'XX. business. We in in the proud bright, laying aspect I what Everest for on groundwork delivered am and next taking I Everest outlook level. growth. execution sustained every to success relentless profitable is to this attribute the of team

in will Now I call us more the take through to to detail. Mark over numbers turn the

Good morning, everyone.

strong finished equating the XX.X%. per board XXXX across an the with ROE was operating to quarter, income very in the Everest Operating share quarter. or $XX.XX $XXX fourth for off million of diluted results

an year, while diluted For operating shareholder was operating the the was $XX.XX per X.X%. total TSR XX.X%, of annualized or ROE return billion full $X.X or share, approximately with income

strengths execution our consistent take Juan highlighted, to well opportunities our of We very remain in market by reinsurance positioned bolstered advantage of have globe. the businesses, a we the ahead. team's number and around both insurance

$X.X Group at lower loss the primarily fourth representing ratio combined reinsurance. results improvement X% of as Looking The in year's losses a of CAT continued dollars. driven for experience X.X quarter attritional billion, by over growth quarter, the constant for premiums well represents improvement gross the reported the prior quarter, in in points XX.X% as written Everest of

in mix higher by which just X%. year's modestly the year-over-year XX was current year basis point XX.X%, I'll changes, improvement in more moment. while discuss modestly expense loss detail led XX.X%, the on was commission over quarter, was Group's ratio a segment, Group up reinsurance primarily ratio ratio a at the prior Group

Moving ratio to XX.X%, to CAT the and strong was gross primarily constant primarily by driven on the quarter, grew starting billion results, with Reinsurance. pro The was X.X% points property losses. business. segment the $X.X dollars. fourth an year-over-year growth lower written premiums Reinsurance X.X in rata In Combined improvement at of

driven points scale shifting X.X book ratio achieve mix and by was accounts return up ratio Current and optimize the better lines expense with as and prior terms, modestly, XX.X%, favorable The line ratio risk-adjusted continue as rate the quarter. the broadly loss to year was largely well year's we as XX%, in towards improved with to various underwriting potential. commission X.X%, mix

constant we Moving Gross to grew momentum. in the nearly XX.X% to to in insurance, where billion premiums $X.X build quarter. solid continue written dollars

level fourth record division. the a production mentioned, for Juan As the of in quarter

slightly year in the improvement and was our Combined Syndicate. a a year-over-year The adjustment relating point to the a ratio loss X.X due current was onetime XX.X%, quarter ago. ratio year for mix Lloyd's quarter, XX.X% from to higher

a underwriting-related improved expand largely our as XX%, is franchise and in across The was ratio we initiatives to growth expense continue within business mix. expectations the Commission ratio driven number point, our of business. invest X which by

balance a money investments, floating versus to the securities yields, benefit to was $XXX continue rate sheet. our the quarter an in tax increasing resets year as million ago, million income higher the finally cover And we investment income for new Net portfolio. from and fixed $XXX within

year-over-year, reinvestment $XX are quarter. of end in one as yields was higher they Private in on fourth yielded quarter continues X.X% the impact investments yield QX, new to P&L remain and while book negative million X% reported money the at our the a equity trend lag. Overall, rate range, the a

are XX%, duration XX% was within to a We income floating our of XX% rate asset tax investments have quarter, years. short continue as And to XX% income year. of operating in over rate approximately of of the approximately the our range that a fixed our X.X Fourth assumed securities. reminder, course

reviews reserve balance granular regarding our which by And our strength and across we sheet, last the our of completed the overall sheet, our philosophies. the entire prudent balance reserving underpinned underwriting portfolio, of affirm disciplined

environmental strengthen ratios. Overall, This our reserve runoff range and up solid. total development survival of adequacy by lines. for primarily $XXX the did offset favorable X% our remains that a million makes variety within approximately position industry from short-tail from reserves, which net by of to comfortably We was average reserves book asbestos areas,

in other also We in resulting prior X net year had adjustments marginal development. both segments,

in to reserve remain the remain of short, of prudent our and environment confident the uncertainty continue position. industry heightened the currently given P&C faces. entire We inflation In risk the we strength

as recovery available-for-sale quarter on were at rates loss to the of quarter end moderated down approximately December from primarily driven strong Moving in slightly. of ended $X.X the a shareholders' earnings losses of $X.X XXXX. as portfolio fixed of modest in unrealized the billion unrealized the securities $X income by billion, as the the income as well net the fixed Net quarter billion value at a third equity, XX

ended stood at driven was of strong of to earlier. value results securities, the at strong stood at at and share, while unrealized XXXX, quarter Book mentioned at the cash per to book quarter at $X.X stands billion underwriting share, depreciation $X the share XX.X%, total end at quarter. debt billion during broadly capital $XXX.XX excluding the per Long-term the Operating flow similar per and it by depreciation value year-to-date. quarter level over last end the $XXX.XX share versus $XXX.XX per

quarter. fourth In conclusion, strong Everest very ended XXXX with a

We of XXXX. as a we the and to have into to the ahead lot and look take balance the of environment, team continue platform, current momentum have sheet we advantage

our quarter Q&A fourth I'll turn to that, our And begin Matt over summarizes with back call That to the results. session.

Thanks, to line Mark. now questions. Instructions] ready for we are [Operator Operator, the open

Instructions] Kinar [Operator our question from And go first ahead. Please with comes Yaron today Jefferies.

Thank may. Two you. if Good morning. I questions,

should market on -- quite that seem hard, midyear. the to bit relative we in to still some 'XX look think remains the X/X 'XX that The I midyear look first one, how right in we at reinsurance PMLs levels. be And as commentary PML we those kind Is renewals on the to like give the saw will your for X/X, and us listening relative that guess expectations at about maybe you just comparison or 'XX? a see mid midyear they least into develop? I should to of what could down thoughts

This renewal. because Yes, around context and Jim the to little like a think X/X executed in to the outstanding And that is about talking achieved renewal that what the for equation bit a reiterate an color risk-reward number the Mark Yaron. resulted Thanks the PMLs. in in to from objectives add precision Juan an a stage, question. to we're of step really set you Williamson. Juan when it important simply of comments incredible with for Maybe it's change Everest. and said, important heard to add I'd I We some was

As in portfolio. improved essentially We our use every property we metric you we of to business increases our rate on order heard, measure the CAT XX%. CAT U.S. significant that received

attachment points up. were average Our

online attachment increased. Despite probabilities were rate all Our down. that, of

Our expected combined ratio dropped materially.

Our increase materially. expected ROE

Our deployed per our clients. dollars targeted meaningfully. we increased went in incremental to expected slightly, profit dollars capacity expected And dollar of loss as expected of very loss up

our year. hasn't markets played took of Similar were major over rate markets, on the average, increases points rate significantly loss the points international of our expectations into out overachieved which a as including in of international And XX decades. rate we factors end in U.K., the XX coming CAT where seen in

CAT it I and property fantastic So year. simply to year through this remainder we the out expect those X/X. the And a next on side, play was into put, of conditions think

exceptional. just So

making PMLs that, what flat. so I always essentially PML what And characterize because at were PMLs to share is I you looking you're the of want publish what you when -- is And that would resulting the we our think would book. would way with is be I is movement you of comparison about the the analysis our an quarter-to-quarter in-force

some Mt. a to a P&L by gets probably ups And see in more you And on expectation and essentially downs of remain sort capacity, in that of they offset basis, My improved and flat. that AUM we'll PMLs gross net translates that into were picture. in Logan, deployment territory. flat those is you some roughly

We our economics presentation in to in feel appetite. really at CAT within comfortable we very stretch and which are risk measures, we really continue with. you'll defined good range, see investor earnings as about terms our incredible where ability without having we're capital the And to our well of get those the trade to in

position our that a that in best while the So do you factors overcomes it's really to improves get where see we're manner. risk it the all maintaining inflationary and the stable market of worlds rate able in economics, pretty

not So results with the achieved. could be we happier really

an helpful. reported to combined. at my ratio, XX then Would and would that you and and the "normal in to I try well I follow-up year this XX XX expected very that give to that 'XX? you think us be combined surprised color if come updated below were commentary would expect stated see a to that's take point And be, you've you some so range CAT" And in in that to XX, that year? that number translate Jim, Thanks into

ROE, again, my in a that I I this as quarter, couple we you right ROE net the would which, at XX% in excellent an XX% of if particularly operating mean in that Look, echo remarks, I income we're result, what it's the mentioned is opening Yaron, fourth environment generated in Andrade. things. is the look Juan now. market

cetera. European that, you that rate on over to in CAT I talked amount XX% XOL, addition businesses, In Jim about, our just over et of the XX% layer U.S. and

You I all earlier accretive of very talk remarks, are which also significant my about changes. referred the conditions terms portfolio. that our to to And this is in and much

work look XXXX. the been has to been that also the insurance and improvement addition on done the able that we've that, primary through just In you margin side at to drive

you a a place. And I end good all up that of that we're if being be to not leads in I that on end of place the So say, we surprised would better range.

And us would an hard point you number? to give update some expect at and a

Yes.

point, out that towards For year of And do our be in the be year. this put us, end our updating we the at expecting another numbers back will we're numbers This there XXXX. Investor our that Day three and third year to financials. we will initially of

Thank in the year luck good you And much. ahead. very

Thanks Yaron.

Our next Meredith, from Please comes Brian UBS. question ahead. today go

you're Juan, to thanks. update guidance November? sounds it Yes, going in premium also like

of have I I you pretty is XX% attractive remarks, again, go going to think we're Look, we think, reinsurance terms. by in how good the if of environment book very But Yes. just then, renewed prepared a my the idea shaping. at back to, Brian,

said also the that very And will expect reinsurance be industry. favorable as I comments, in X/X X/X and my continue to for we X/X,

So might I also to think that good as be us where that gives idea pretty a shaping.

of on improvements also that, on and also to primary frankly, right, significant mentioned side, we as that make remarks, saw quarter-over-quarter pricing. I already I commercial liability we would auto, we expect general and to addition in continue say fourth my In quarter, improve, to would pricing in where saw property the the the some some

environment. heightened a risk in We're

hard market. You've got from the pressure reinsurance

year good when things Day. lead guidance to will But providing we of a we be Investor so yes, do on later our the growth. And all I would very the that expect will trajectory additional in these

you insurance property between PML How and would a some then back hold Thanks. other? I opportunities? business? curious, on about think you prefer about mean because just is do the on one Juan, the side allocating second more little I'm of bit the reinsurance there question, On reinsurance your think And primary how that? you the do Great. that you the than

Yes. great Brian. that's question, a No,

is our that One capital bit the to inside terms dynamic company that of allocation. use quite we like a do we of

a is, at of we're So basis, framework. against essentially management our returns, line fundamental enterprise this risk that have regular discipline coming in cetera. On looking business, expected where we're we by a frankly, with et very

gets right? the start this not the And who peanut so deciding company, do we that's how capital. What do around butter we is

opportunity. look with get I where economics, we at an think about look best Williamson think we me executed. essentially at market risk important the Jim both because which heard you deploy the point best We precision So and good we we was the that's And X/X will how it's the capital. can the talk returns, and adjust

that back it's we world. the in have question. good the the it's that I understand of And to think important order get step around pretty of business our fact control to to your to heart And

whether or provide things. Mark additional deploy Jim able of primary maybe we're are invite market apply that decide whether it's the or versus conditions. capital versus same how the some Europe on we in we those insurance we in in And Latin So Continental Asia to And the segments, the it's side depending on the I on America, that's going U.S. make versus well. more to rigor decisions. across to would ultimately But as comments in that reinsurance whether either

Jim. it's Brian, No, Yes.

think spot I on. that's

thereby and life And mentioning. it I capacity in allocation that rates. portfolio effectively capital into has to as up was us disciplined are capital nimble Juan think and in very deploy reinsurance in seen little X/X, And where of their start And took to the brings to And insurance to able freeing that's coming think, our that dynamic adjust at we really X/X. came achieve really were it to market very we is terms that management. a that's, clearly, ways, business what situation, been primary best-in-class we particularly that primary returns. I way, to insurance on allows a is while some very what you've

Great. Thank you.

ahead. go comes next our with And Please Meyer Shields question KBW. today from

good Great. Thanks, and morning.

make? a of question get trying I'm in sense to the changes attachment XXXX of I difference at of of is, recasting Is the maybe but just this one reinsurance way any know is this to higher X/X, much there new First sense of piece that give framework, us losses significance particular how only a points. step

a And X/X Sure, in point. is Jim little Williamson. This from programs; strategies was important around a these I quarter risk-adjusted it that X/X lower-performing we 'XX deploying away of 'XX making the around us why taking, it, where deals; rata the think is that and gives long you warranted pro really think And moving actions It as deploying 'XX. how is sure about bit capacity a conditions demonstration moving began high X/X you all particularly volatility we of if away because back lot returns were that we told very programs, a market capacity before about particularly fourth the Meyer. which execute at we of started from actually, withdrew into we were it aggregate structures, some retro, improve. then and we

like not with that what that seeds. In type That's view, And retained do? losses primarily fourth really that loss our a happened of Elliot. quarter For reinsurance -- should And for $XX like should is be in events the for be what want does losses CAT reinsurance the that. was loss million. we saw loss of you And relatively market. loss like a type to fundamental the our that small, by QX

how a book of over sense think you we gives that time. perform our will So

be really allows is the major losses where cedings one which belong. for capacity to X/X those 'XX those products So their average us point CATS if more losses they frequency events, a to have in of attachment of for. our billion, been going expectation our our participation up the what number we because is $X into of, there's that in prior XXXX, $X would events, is And the are those events net industry our be billion would lower will than retaining preserve to moved which call, designed portfolio,

a of flavor that to expect the give how portfolio you perform. we So should

helpful. very is That Okay.

just second missed there changes, and The any on I apologize insurance reinsurer I'm and is a if both book? question thoughts as -- the for this. looking I on commission ceding

Yes, see is of Yes, as renewal Mike really results rightfully enjoy last our position colleague, Karm. we start core of their it we so. excellent market I'll on we Obviously, rata this Jim. and with portfolios, few well. being turn over in lot cycle attention the paid participated so to casualty a by basis. to property Meyer, this then for my did mainly hardening our taking and a programs premier pro seats many a years over those casualty on of and in increasing share casualty of clients, But

the And market that's in that getting happened go is was was is commissions resulting margin one a all trade. sense. for up, made reasonable in still It more margin you've seen It we accreted ceding that things of as think the primary us.

participate that. at like still to the very in We very X/X meaningfully did opportunity. we attractive now programs continue What is I'm see So we're to starting describing.

is participation we margin I a cases, fact, is think, grew what also fashion. a the bit. really But the in of amount In saw number narrowing primary a we in increased in portfolio of expansion nice obviously market and our

our phenomenon that out commissions is was certainly started across -- and to ceding And market ceding see only think increase, they ceding forward. go that average commissions I What were they justified. continue leveling mostly improvement handful a to below we we modest off. small as really to instances begin of of have with. usually when moderating already And that's continue that, commissions where portfolio, we will so we the to saw and expectation play a in was full

it I'll Mike. So that, turn to with over

Jim. Sure. Thanks,

earning right our -- reinsurance all do not our also really what say scale the immune capital capital to on profit reliant to not it's about given will what's as we're have here world strength on. And is and rod financial strong For volatility continue reinsurance the an we us, and managing harder With certainly base, and given to balance flexibility going need organization. striking actually, would be what in market to up -- we're to like and I continue happening, others. while drive our our we retaining businesses. But we as the the

And be our drive. for retain about us, as and being benefit for more economics portfolio it's accretive premium we to to to our risk. There'll nor thoughtful our more will again, whatever continue

in we scale So a I of strategy. don't I we we're be material our where how good driving think we're businesses, up feel think concerned we in position, given overall are our position about the and there'll anything that

this Meyer, Yes. is Juan.

the saw improvement commissions I think bottom to day, answer, of we in this is just round I end at think the in the line cede look, renewal. out

That Very Fantastic. Okay. was very thorough. helpful.

Thanks Meyer.

Thank you.

Our today next Fargo. Greenspan Elyse ahead. with comes go Wells Please from question

I but sense that right, Or, year's of better or -- you on guys in year? expected be the the would in business expected want for the events just generated a go 'XX You in say and is materially be X/Xs, you Hi, would return expected to to color like XX% thanks. give back Good right? want something given, numbers give normal return return morning. you recurred? Just could what My 'XX at to your instance, much CAT if the about we guys first question, looked conditions? the 'XX, what better us, the how spoke the us if to sure what return a pricing to and increasing last improved I'm not relative terms

of I risk Elyse, that the some think but Sure. of at is do it's and And you really provide repeating critical. Yes. what some of color. said, I maybe I'll Jim this Williamson,

focused to last our If about coming what very you we straightforward, think they're on objectives year. into and pretty renewal similar were

particularly at deployed layers volatility, type underperforming and like be Continue the us, probability control from minimizing move the where and want means X capacity that deals to playing. X structures high -- really structure player, amount the really for return optimize in we programs; portfolio aggregate avoiding have to away mainly and we how around of we that not for of that's

through executed And we're played the January And X. that best-in-class XXXX phenomenon capacity same to moving programs. ensuring consistently we've that then out in that

take it tier and so of opportunities And let's to our market. programs in capacity were able from, the bottom we the reallocate best say, to the

increases have U.S., in mentioned We Juan international rate in XX% with did it the XX% and significant as I markets.

write-backs As better significant areas economics. portion are particular, you exclusions a and mentioned, only there in We've also deals our -- the was movement basis. result U.S., peril now number over on in of on of time significant In terms also a on eliminated a conditions. will that named in of

practical every of Obviously, question And what so your actual different with a heart the year portfolio of that will the set present terms? does in of us mean catastrophes. for

opposed looking back, what so have is customers. I the deviled frequency I been would retained how And would industry, pass, that increasingly tell our which you, be expect to will perform reinsurance the portfolio as by to really

getting that we're first was in now lot taking, the happened and would focus on we would major expect Ian, be of to as also more to quite want major reinsurance that that place. with about similar the I well. the look that a Hurricane to good types So we're much We of and to losses rate share a losses designed how of thoughtful losses expect for to very cover what

to have say we make available would a a this, in losses And premium return. then lastly, increase I for amount what these still cat the of of strong meaningful all pay and

through is as to return that triangulate XXXX. the that you move gives hopefully, would we expected what excellent help color an So position you

Elyse, is Juan. and this

was fourth because to we would thorough. put I Let we be just think while year. that answer quarter. because industry back XX% you then going generated that piggyback right, coming don't point he and in ROE for And top think the talked about quite ROE And the me Jim's on facing we it we what the outlook is X on a for year, specific to despite the ROEs guidance still double-digit we perspective, give catastrophe I

about I And years got context been just company, have we that reducing activities renewals, portfolio steady in talked the being capital. all where to to we very those talking we we the this with about think and management, deploy managing material improvement how on expect volatility, in continue. in X/X to over the we you upon disciplined achieved the at that that disciplined we results put really very being expect expand of past with that three the coming been the have we improvements And our that

improved And the a so point I return all risk-adjusted would across portfolio. to say significantly signs

little a on more that. bit just So color

million the the And quarter. quarter? down $X.X portfolio Thanks. fourth $XXX down did like equity portfolio went to in Why billion from then you guys that in take the

Good morning, Elyse, it's Mark.

private equity, have flexibility it equity, we're allows credit, cetera, strategic it's And et we that move with. et private table fixed between whether allocation income us cetera. pretty classes, public So asset the on asset side, to disciplined a

consistent of So in still that the had we equity but focused portfolio that more were the a strategic felt quarter, since tactically, on allocation we reduction been we've into with large Day. Investor the attractive, shifted XXXX assets other that fourth asset

So we SAA. will but probably XXXX, a move bit around in disciplined stay that to

Thank you.

today C. Raymond comes Peters go James. Gregory next question with Our from Please ahead.

about year. talked your that on have inflation think, in in every big to side, and review issue Well, 'XX. everyone. back in 'XX go fiscal especially I'd good out statistics comments, a been that year to, you the 'XX in is the ground-up came morning, obviously, couldn't anticipated primary the reserve And you do been annual I like

talk us where takes did? you you process? the be the to can So perspective would come there were puts to and helpful. for What you out about Some

It's Yes. Good Mark. morning.

that me into So ways. a few in get year-round. process let is The itself just

performing claims looking reserving we're reserves reserve the comprehensive so the of in process. course underwriting, pricing, And at It's of studies. in terms quite aligning, throughout year, that

got you've stakeholders many involved. different So

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Thank the for Sure. question. you

of couple a So things.

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so And not that playing offense and continue it, defense. see we drive opportunity we'll to about where it's and

think was day, key Mike. I Yes, at we're Primary is couple of couple One, division. I that Andrade. highly of think the within the thoughts Look, said would there's Juan Insurance Greg, by of a the I end a well factors. diversified add this because

And we it's can out, where so pointed always means And in find about opportunities the market exist. that they Mike as that profitability.

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our be to So spots allows that do to us able and that. essentially pick

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Got answers. it. Thank you the for

Greg. Thanks

And BMO. Mike ahead. question from Zaremski our go today Please with next comes

Hi, good capital that just we be look the still about thinking to economics equity better bit will you're morning. question, that given at So kind more of uses thinking uses. capital we management Maybe most up attaining? also thinking kind growth And and up for expect inch is capital first a of when operating of Should ratio, room leverage? there 'XX, the about should capital of eat buybacks? versus the to we kind in premiums

Mark. it's Mike,

XXXX, on and here. I think just capital points a to So it more do got includes we've balance sheet. few ample the take opportunities than of the traditional

we shield, what bonds, ILWs, capital et so call at our looking Logan You're CAT cetera.

leverage. balance definitely there's leverage, sheet more that the expand on Operating to room

to the improving. keep in risk-adjusted really I points is think one of key the mind is profile return

allows and exposure of And the the expected thoughtfully rate that managed significantly. seeing you're us leverage. operating the So to return expand up I key being go points that's one and that think

diversified with We're also income well fairly multiple streams.

the in they what significant so we the be. for other comes projections growth the net provide there support can retained we'll pull about do And see could And because than earnings I growth. significant income to that think we market opportunities levers how even if are expect that to the more year are

table. best comment, but we've pull a can of terms it's this always buyback look, generation. in just market We lever, that the your the seen But in on is

that that that ball the plan comes value couldn't whole terms wax, growth out the And creation in for we're organic it the alignment. so of franchise, balance fact and better have ready of sheet, of you got a the we've teams,

in So I borne. really attack see us think opportunity this full you'll XXXX

So I'll there. leave it

reinsurance impacts persisting? you My know alternative the -- what's discipline And that dislocation follow-up marketplace? Logan that in you And seeing that leaders does of are how marketplace reinsurance, on there's continue? you're ILS I like will see overall That's the that takes that you But and going is the is of puts kind given feel there marketplace maybe space. that Everest. in reason -- the someone helpful. marketplace, the do on that ILS in that seeing? part Mt. one on of within the some is Is

of a a reasons affected question. Yes, and years. have weren't lot which CAT the around the CAT few quite is didn't of And happen. in Williamson. market, or been there Thanks dislocated had clearly, a I of Mike, maybe understand market over in is These investors last having row the prepared you clusters Jim this particularly many this participating think, vehicles activity, has of lot losses years uncommon. for have into And coming I margins, mean quite that everyone been in prospects multiple participating a not of the for ILS X/X. ILS the for

they're that so number definitely, I put position a on in And pause. of a where think, has investors

that You events. are just from losses, against they rates, deploy there's obviously, just prior trapped preserved those doing, phenomena no terms because capital also sidelined capacity conditions of that have, lot what can't is the it's and a CAT matter

And in helped has contribute crunch to capacity that our definitely industry. created a and to so

in Now ways. from affects perspective, us two our that

because reason there reinsurance is the On is balance that's the plus and crunch our results pricing one business, the we're CAT international all supply. getting terms more hand, XX, talked there's in because property reinsurance U.S. attachment reinsurance phenomenal conditions business, plus part XX better seeing And demand you And points all our capacity than primary of that we've about rising. will, in happening the sheet of that's occurred for if ILS.

for it is in more or challenging to a because are Logan trapped capital. The raise funds sidelined little it they Mt. investors us makes second thing have that it does

business is they in In who Logan terms reinsurance it our core of And consistently space, the are invested inures to we'll the that also benefit all Driving improvement that our as of trade, returns ILS first investors get trade our long. take day priority. Mt. in better well.

that. like we So

what Everest they're in getting investors. And when And get of results investors doing potential value the money the Logan. money been conveying same the gets. time, the team is, would is same a unlike to We say our At that We're excellent raise have market, in lot did we job not making other proposition vehicles making of an not particular, money. our in I in traction X/X.

ours. very that's think I And real that's So focus of compelling. a

Mt. of key We us. have grow that's time, our priority will a a the expectation pipeline is that for of strong interest, investor course and and Logan over

you. Thank

comes question Research. go today ahead. from Ryan Thank Autonomous you. Please with And our Tunis next

Good morning, guys.

quick hopefully, a for Just few, ones Jim.

Mayer map on in the just, guess, up line might changes questioning actual following Elyse's I question, CAT the the to and First numbers. portfolio on how

of kind is like shying the like X-in-X looked XX as like from what about you're -- So away in X grew in I'm supplement, much the type as risk, the that XXX. with it struggling the you but in mentioned that X of

it's So from alone, disclosures what's me the to difficult for really see going PML on.

come be maybe than would XX? So from your idea like I that more helpful. to past -- of sort ask give numbers don't frequent way losses were CAT years, X right us have could some much in just even the frequency you I'm not it, know the how over any of really layers few but those sure,

Sure, Yes, it's an important obviously. Yes. Ryan. it's Jim, Look, question.

give a portfolio. I so you And to what's the help few I'm going happening threads that think in really describe

and a exceptional really reposition X/X that's portfolio the XXXX, on we can't execution and our go-forward and and it at company CAT followed sustainable So really which basis, risk really work. our restate I in as enough, critical and for obviously, rightsized strong execution

XXX, in is at XX return profile X X a in from by deployment really number, X X it to I at a essentially that I'd shows flat down if XXX want of XX/X. you much $X look more want the of at million. think XX/X PML since look think is PMLs, it's first changed about what X/X P&L, is wouldn't in would of recent to about essentially And has by variety What of a X/X. movement I I Too do, all, same whether year-over-year on our whether it's 'XX. XX basis. periods, million $XX pick down you or or in

that What is risk-adjusted are that Where CAT terms the of of getting expect. sense paid? it's where the balance versus been gives event you getting what I so the of percent industry we returns? you much where not losses appropriately in you are going reasonable event. the say some X-in-XX in And so would is, X-in-X have It's what

areas that. risk-adjusted our are in And and X taking. the portfolio toward us, warrant we're about feel shifted really to XXX that's the where clearly returns We the good And strong so risk X for range. has in XX

of this time that and is all the which to that's and against the terms discipline happening things thing to required other are over Those portfolio. all mind of the backdrop the conditions also been the inflation and The ensure order your in appropriately. you're benefit our keep underwriting programs loading, will in

actual large you events have to you it is the also events, -- we better because made. where a perform highly smaller going take the of than if couple have occur. CATS, the frequency in a a a we've But year meaningfully which obviously, the have we be now of all that's improvements but we Now result year portfolio have dependent all now will would on think actions ago of and better rate our

those hopefully, PMLs. So gives some to you interpret on that perspective how

Yes, just on can give kind that's you Ian impact? us Hurricane then how of an original you're your thinking And helpful. lastly, about update

good mean, time Yes. Sure. it. but very Jim Yes, early. like about Ryan, a it's we obviously, ago, again. feel I was Yes, it's still relatively it long seems it

puts industry so scenes, seen, the to that of and terms you've adjusting view have As in of there going their what our closely. watching we're loss very folks ultimate clients' been takes in is terms and in be their

that the that quarterly risk numbers cap-on key protection up, we about received when A mind, very is call feel which about last Ian good talked we of the program. we've of our the keep we in terms to to we communicated upside from in put thing because in any

exposed have a and million to As their which at will currently last billion. basis limit, engage indicated, call, pro billion had estimate. $XXX we potentially we'll or $XX.X rata billion up in $XX.X reaches cap-on They're recover $XX.X about PCS million in the if we on of $XX

to So we time in about whether it of closely. take that number, of it a that watching out, play it's very a but don't bit upside quite for to there's going concern there, really to good guy ultimately material we're have kind any

Thanks. it. Appreciate

this question-and-answer management our over like to turn I'd And for back session. any concludes ladies and to gentlemen, final the conference remarks.

driving the Juan all and to our am ability I Great. morning. Thank discussion for very continue a optimistic platform. the and questions about your you world-class Andrade. excellent ahead this opportunities This is

clear. is strategy Our

are risk-return our profile. and Our by which we an is underpinned strong growing all an This resilient with is businesses advantage. portfolios, strong increasingly attractive significant have culture, competitive

increased We will colleagues our expand progress clients world. on create our for value investors, this and foundation to the around and accelerate

of continued look when we Thank I and all for quarter you today you. you Thank forward of for time with your results. with to our company. us again our first XXXX speaking your support discuss

call. We concludes presentation. you Thank thank attending you. all today's for This today's conference

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