Everest Re (EG) 31 Oct 242024 Q3 Earnings call transcript

Good day, and welcome to the Everest Group Limited Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

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

Good morning, everyone, and welcome to the Everest Group Limited Third Quarter of 2024 Earnings Conference Call. today's Kociancic, Juan CFO. Executive leading CEO; President executives Mark and Vice Everest call Andrade, are and The President and

are other team. by also the We management Everest members of joined

noting in to Before I'll and regarding noted forward-looking Actual assumptions update SEC no may we results estimates, forward-looking the similar and undertake call materially, as we to profusely by projections statements. and begin, differ risks, obligation filings. will uncertainties that Everest's comment statements. include subject today's are publicly comments Management

refer may Available financial Management earnings found non-GAAP explanation reconciliations to and also certain in financial to supplement release be measures. our website. GAAP can the

With that, call over will the to Juan. turn I

operating XX.X% discipline to investment management, results year shareholder return on These reflect you in joining everyone. Thank you, normal. catastrophe equity total return delivered in morning, leading which income. returns, an Matt. healthy underwriting generate position of annualized and XX.X% us. for which already Good underwriting despite results driven higher what This income, industry by with our been operating resulted and than another annualized an were has Thank risk strong of We another successful year-to-date. the prudent quarter losses and company

most the in Our impact globe, and from Boris the catastrophes in Storm thoughts Hurricane U.S. the are these recently all by people Europe in Beryl's with affected across the Caribbean, the

and Milton we further strategy. then First, catastrophes impact hit early the Hurricane conviction these the September third It Hurricane our that by an of late by strengthen active has and right quarter, hard in Helene October. in have been natural

market. a and Our it's reinsurance results, generating franchise differentiating itself as is lead excellent

of approach attractive positioned of to in as renewals benefit the we We business conditions and number market beyond. X are well from a January lines

growing less lines, and made expected to a and back on in gain traction business lines portfolio improving including the we of attractive mix pulling insurance higher profit our number trajectories fronts, internationally. in segment, by of In progress with continuing

diversified Our building in on and portfolio. insurance resilient profitable, primary focus remains an increasingly

portfolio continued quarter. million our investment $XXX Additionally, outperform, third the income to nearly generating net investment of in

turn a With quarter property grew with double on both highest beginning to lines, and our that the well We at will Growth we is the specialty I the group risk-adjusted the highlights, for focus into company level. expected these in see backdrop, financial now digits segments. returns. lines third where

cycle Concurrently, prone attritional we hurricanes, are that casualty XX in improvement basis back combined are pulling storms contributed and in catastrophe event portfolio and an to in losses of included America disciplined points X Canadian from our inflation of ratio a and X major actions and certain less to flood wildfires subclasses more loss North attractive lines approximately management Europe. and ratio. social These in pressures. are The points

few years, exited the our seasons proactively largest Over we have in Florida. or past reduced the exposure to

lowered that our share to our payables, exposed including and diversification are the we have exposure and heavily to have flooding. We state, have U.S. overall specialists, we throughout reduced our accounts with secondary Florida optimized

with portfolio catastrophe is levels our Helene by when million, recoveries net and The illustrated strong even $XX these property premiums. our drive reinstatement higher of of results grow efforts to happen. loss management expected us allowed success have portfolio of actions of These profitability and events

net pretax October, quarter fourth as losses preliminary we on early which from will our Everest's impact million a $XXX reinstatement premiums. results and Hurricane of that estimate recoveries million landfall to basis, in a Category to date, $XXX the range in X of on Based Milton, assessment made

a insurance This Our catastrophe resilient manage billion actions loss and the industry projects to volatility to preliminarily estimated is natural which range billion. $XX is $XX our importance on based available, information reinforces build total again that of portfolio. of a

Turning now to business. our reinsurance

again once were excellent. Our third results quarter

of in our to the initiatives evident grew by high property maximize and where mid growth catastrophe and to returns. quarter, remained continue risk-adjusted we excess teens. rata, attractive, management execute driven and We in property portfolio the was on in loss to This pro cycle which

a lines, prior casualty loss excess actions rates have the our casualty pro in of of to year. result mid-single-digit This of prudence all discussed as rata Conversely, in casualty range. a result is levels decreased growth and we premium, in the calls

attractive renewal year-to-date, So further in need of of million as casualty underlying lines shed as far commissions. have see and pricing premiums over of correction $XXX terms less we these and we ceding actively in

best portfolio the We expected continue in returns, the to expand and to lines property those strong primarily with specialty. see opportunities

combined loss net Both million reflecting losses of again, $XXX The attritional we have into premiums, reinstatement recoveries built quarter resilience profit. underwriting of the the million catastrophe business. attritional of and this $XXX in and ratios resulting improved, included

property strategy to catastrophe Europe and the Our throughout into pricing In the America Milton returns to North seedings January enables to further expect cycle. we in on firm, and events, X aftermath focus us consistent produce other international top-tier renewals. heading the of

for Demand capacity increased. also has our

us. Following relationship recent expand to high-quality with continue catastrophe events students their and

allowed addition, meaningful our reserves. in we to strategies reinsurance have what margin Everest us build embedded In underwriting be believe to

segment well is strong continue reinsurance positioned Our margins. to generating

to turning Now insurance.

discipline insurance us as increasingly platform this to Our quarter. diversified be evidenced positions our agile, by

capabilities tail in our lines international business. For specialty in conditions well-priced have and example, we strong and favorable market short expanding

this, and digits. into we grew So by double leaned we

value in remains certain are increasingly diversified we environment we that This defense created. casualty offense have can long-term We the cautious platform challenging. lines increasingly and most in attractive the the U.S. of the to the pursue play opportunities. is Conversely, as economically

trend. the average an above America, compensation XX% loss expected portfolio, financial workers' in North to across aggregate regards of With lines. and achieved remains the excluding Rate rate increase we

problem the excess persistent teens. of the system as to company. Everest are legal activity closely and States. rate lines In that commercial liability we're the well the liability, in respond liability, loss social increases industry general such experiencing as auto and to elevated United casualty rate high as necessary to an accelerated and inflation use into continues These of monitor a

are action we lines, to continuing trend. take casualty U.S. classes on focused to in exposed this In

decisive real accounts, and estate, example, actions. are For and habitational we leisure underwriting taking

achieving business, underperforming new rate increases strong on nonrenewing selective and are teams Our accounts.

As underwriting is to pricing business are our only risk-adjusted a writing company, goal disciplined target is return. earn ensure to adequate where our we

We higher consistently in to margin and expect combination result actions the book. a more of profitable these

In to addition deep approach quarter, of our will to fourth segment standard quarterly annual to reserve half the within long-tail process, dive the a insurance back review reserve findings. will we the conservative our and continue take conclude studies in the we

back In conclusion, step and summarize let status me businesses. of our the

firing is all Our cylinders. reinsurance business on

have and profitable global lead the facultative nimble of most treaty our with and a are business for market We we footprint. global clients, a

tail across underwriting our U.S. local and short insurance, country. key in our In in markets increasingly we is are and brokers the to specialty the strong, and relevant

We we investing people have are to and talent, upgraded automation driving keep in and that important business.

Similarly, expectations. our exceeding expansion international insurance is

the issues we actions, casualty book are built of and the segments in of our initiative. drive direction. to in real aggressive That are the excellent system are where They've U.S. to legal portfolio an best area leaders taking and in We business the business, all of leaves right abuse. that of exposed the that of hired ongoing have one the our book insurance performance indicators pointing

franchise So through while looking in our execution ahead, building for and underwriting, best-in-class we will value disciplined opportunistic clients. our remain

to businesses strong term us give very delivering significant Everest optionality our coupled balance capital the cycle. sheet diversified strength, and and Our through for we industry-leading focus our and our the the high-performing flexibility on returns as investment position with portfolio, long the

in that, detail. the review it over financials to I'll more With turn Mark to

This had another everyone. Everest Thank share return and over income you, operating of an drove operating total of in growth strong and investment morning, income. good net $XX.XX XX%. Juan, annualized delivering per solid earnings quarter, shareholder and

lines underwriting The traction to delivering in while Insurance division certain another the casualty on lines differentiate underwriting time, the remaining North and in as growing continue conservative markets at strong materially division the Reinsurance portfolio key quarter. to American and improving gain continued in Our short we continues profitability. in recalibrate same internationally, focus market, itself to tail

third of the higher losses and excluding the The reinstatement Canada. for relatively was to written the X% including were dollars CAT driven results. Everest compared ratio premiums. offset reported by growth at loss Helene, Beryl combined constant Hurricanes quarter, and prior the gross billion, and premiums recoveries in weather improvement figures representing an well events when group Looking million losses reinstatement ratio, in approximately by in net $XXX as CAT of premiums additional Europe Debby quarter, quarter. of $X.X benign and as year XX.X% driven in globally, the by several events

continue to to group loss within group year's XX.X%. the prior quarter, in prior improvement and both XX.X%, expense the talent basis to X%, the ratio franchises. The point at attritional was commission The from over year a we decreased and time, the same while group's improved XX systems ratio invest ratio

with premiums during while continue constant Moving X.X% quarter reinsurance. reinstatement Gross to specialty premiums the Growth to and in property dollars starting the casualty the driven segment by disciplined quarter. lines, remain grew written results lines. we for in when was and adjusting in

pro when decreased on X.X%, grew CAT and growth in CAT Casualty XOL in respectively. rata in rata XOL XOL growth and increases XX% property and XX% casualty XX%. respectively. quarter, pro and quarter X.X% normalizing Property the by the to And basis, a property XX-month

lines. conditions, As January and firm positioned into particularly well Juan are market to mentioned, the capitalize favorable pricing and property to renewals, X we specialty expect heading on in

short-tail and stands to favor premium prior pronounced and written XX% The basis. which on at stands continue casualty. We will earned the mix net XX% to mix become line at continue an tail premium lines, property year. shift will shift prior towards approximately which XX% with a businesses, and property Consistent casualty, earned see from more quarters, property the X-point growth XX% short

The to in attritional durability to XX.X% the benefits. points we of improved the the to loss basis addition points the ratio improve business attritional during improved portfolio, XX.X% combined as mix to continue XX quarter. basis XXX scale ratio The and

X.X improved included underwriting was XX.X%, year the quarter points losses. prior of storm was ratio commission XX.X% CAT driven the ratio losses, expense X.X%. XX year the catastrophe activity third by of in ratio includes to with at X.X Combined previously prior basis and and line while points points mentioned, The

Moving billion. to Gross in premiums $X.X insurance. dollars written approximately to constant X% decreased

stated accretive the and we As we made business, proactively most lines towards in portfolio are progress shaping of prior the mix the quarter. further calls, in

franchise We also continued scale primary our to globally.

to intentional which reductions described continue and was property in the in by lines generate aggregate we in portfolio lines, XX%, the double overall, strong North was as Juan offset down business certain North almost actions, retail our in America, This growth specialty driven down America in each digits. earlier. were growth increasing casualty While by by

double medical stop comp, in workers' public to also to continue well D&O. monoline business international conservative And loss digits. we the Our continues into and grow be company

stop medical completed A&H expect As we we with of end year. the the the runoff our business the previously, to associated loss be stated drag of by

will rate risk on terms to and focus the line prudent holding continue We on selection, adequacy and conditions.

Specialty third transaction and an for business. organizations, the be is for Insurance agreement and EverSports Following objectives all announced in aligned well this we with strategic Entertainment the Ryan fourth both to and our a the acquire for parties quarter. win The quarter, of deal accounted is will

The scale as related quarter. by to attritional actions platform, our our is XX.X% the portfolio by loss discipline basis consistent and disciplined, expense with drive reflects points continue basis remaining ratio was operations. prior in underwriting in increased to points the in to The quarter, in and commission global while in this shape make investments ratio international casualty our XX lines. underwriting The ratio North the XX.X% particularly the increased America year we XX and

relatively segment year ratio of prior The quarter CAT level catastrophe The losses. benign of increased benefited third in the XX.X% percentage quarter, includes X.X points to a losses. combined from which

primarily And $XX quarter. year. moving income the was prior $XXX increase million Net under the new on increase million to Alternative by from yields of money versus assets prior investments. slight generated versus and an The year higher decrease management income, maturing assets. a driven million higher of assets investment in the $XX was investment quarter, third net

Overall, from X.X% our year-over-year. improved X.X% book to yield

asset We have short approximately a years. continue of duration X.X to

the positioned benefits fixed an rates, for short income [ of A remains the level current ]. portfolio investment attractive portfolio minus double the environment, rating credit and well the Given of average from

in tax income second the modestly operating mix quarter. jurisdictional than lower profits the and the by of was driven the For third XXXX, XX.X%, quarter of our quarter, rate

amounting profitable Our pursue capital repurchase the shares provide we've $XXX million and growth $XXX.X or to per XXX,XXX strength quarter to to shares, repurchased million. share. repurchased the opportunistically and continues Year-to-date, XXX,XXX average of we ability shares $XXX us amounting in to an

billion excluding fixed the ended to $XX.X income Shareholders' or billion equity We depreciation unrealized sale will opportunistically available net look repurchase to for quarter shares. continue securities. $XX.X at on

after-tax income quarter, available-for-sale interest losses decrease a on of equaled the net $XXX the fixed compared of end $XXX end decreases. as unrealized million, resulting to portfolio million approximately of from second the At quarter, the the rate

flow from year-end billion and quarter, per value Cash dividends $X.X was XX.X% ended improvement from adjusted $X.XX the the book of share for year-to-date. during $XXX.XX, of at quarter per XXXX, operations share an when

unrealized sale lower income per $XXX.XX year-end on an value per at fixed net basis. stood $XXX.XX securities, on quarter Book representing leverage versus year-over-year share, available excluding sequential and share Net debt XX.X%. a at modestly XX.X%, stood approximately at XXXX, of increase for depreciation at end

excess shareholder Everest a generating conclusion, had of target. In return total in our another strong quarter,

meaningful us Our diversified excess going investment forward. portfolio capital our positions well franchises, well-positioned and

to back Matt. I'll with And over call that, turn the

We that limit rejoin the one have to additional we're now queue you questions. questions. one do if Thanks, questions then Mark. your open question to ask for plus the please line you follow-up, Operator, ready

the Instructions] Yaron question first with Jefferies. And Kinar [Operator from comes

So liability are first, not I monolithic. realize lines that

that's in cut think face I premiums high may the embedded teen margins reinsurance confusion. rates, in insurance some of cause and the in

cuts say would strengthening? to that you investors the need may concerned of sign higher premiums the are I accident year reserve a for who casualty to picks for and guess, So loss what and/or come be

question. Yaron, the it's Juan Thanks Andrade. for

then ask of well. to Let I'll jump me in and my start, colleagues some as

to nimble strategy diversification about one very of One that is of keep we're things the mind in cornerstones. our We're opportunistic. the very and is

quarter operating and in consistently we see the You X% ratio expense for deliver. that that that

So to when we're see able we opportunities. the move

what us, cycle management, that it's ensure for it's portfolio do best So to the get do, and possible returns. what we management we we

workers' our in in up it back certainly and public firmed You've stop prior rates compensation. book, Hurricane with XXXX Ian seen book us [ do done done this We've before. in We've it it our we in D&O. We've it loss done to property medical before did ].

today, my like, property there's there's we best opportunities remains environment while So don't, as others I lines. in and we just out lines said the The And casualty that some see the specialty elevated. remarks, also given and still we that environment. there

achieve portfolio, about North starting in that intentions America recatastrophe towards fact more mix talked because in in in optional We've stated a We've our rate more in our previously portfolio, the we're to balance particularly insurance. property of general that before our Mike. the reinsurance to [indiscernible] in also skew the the

it you when being also changing time. those of stated some lines the these the the more reasons find we've in about issue. to quite of lines been business, on pricing an this in casualty think That's is the elevated inflation focused particularly to so portfolio. more do we primary being be mix trend one of business we're enough, And in cautious And in loss business. why we're why our lines expect that the of is accretive. past that And has elevated, social right? we for remain And

is really this book. we've constantly news. in to publicly about create highest information the it's about talked the past. of none the that new portfolio it's And really, quality So examining I mean

it. a year? shifting still expect in combined last XX you ratio the then reported this guide to achieve here. of bit for Got insurance half you XX updated And and that little maybe offered Do second the quarter the in to

Well, Yaron, Mark. it's

with are the XX, So where it on CAT. I depends to we think XX really the

to we about still think I the guiding still that XXXX. in think in back more that was target. XX getting I importantly, are half And the feel we fundamentals were there, where underneath probably often of the towards

that to going towards pieces direction. move you're see several Ultimately, us

with provide obviously in then of business, I The increasing the the starting with on leverage. So of us combined favorable scaling insurance and franchise. will expense split premium a think, focus mix the

question the with from And Peters next comes Gregory James. Raymond

expense scale, provide I in and about on for So higher commission and ratio, the segment we your expenses the segment. 'XX? in think Increasing you just you have expenses wanted answer further the the insurance should inside commented detail how both us to you insurance when we there, other on out 'XX Mark. underwriting model Can frame

Yes.

ratio, think the it will as relatively elevated XXXX. But complete see in stable our we that maybe you're Greg, on keep business we what seeing of mix shedding A&H business, of quarter, broadly going is stable XX%-ish as to slightly something -- with I in the I third commission you're level. the towards that So shed think, type

The really internationally. X we in it's general North America both our There's expense, continue franchises, and pieces. -- to invest

and drive what's the terms people, that dollars we further development. on in those to upfront systems going when so setting thereafter really And down. we're of premium that And get up spent locations is earned expect our so ratio for

in still certain in phase we're So of a insurance. or investment areas growth of somewhat

see down scaling. I but ratio expense the as moving elevated we So now, can premium fundamentally being that get somewhat

we've the couple those the of their some teams made we And in ago, in of years benefits of markets. terms a additions seen premiums hitting internationally especially their to develop of

we so timing can about of a anything issue really done. it. more know We And than good It's feel be that else.

maybe I'll I was ] makes [ in reinsurance. That Money benign filling relatively Okay. price guess CAT sense. property It talk or but reinsurance stabilize may following year-end. recent to a through that Hurricane bit, Maybe least take, September, like give at Milton down price. that feels pricing little the the we're down more. XX%, scene year-to-date I always talk trending know Carlyle CAT little pivot And and a up market bit the talks always approaching I price. is maybe know And experience

is trend Juan, the said of your to stable, sort like As down. X but maybe hold comments, it you pricing go I you know in expect months. we feels pricing through the that next

us reinsurance renewals? we perspectives maybe January as pricing into go the you X and So updated could on some give

everything the given I Florida, your was Greg. homes with in Thanks hurricanes. for down impact for No, the fine sure, of the hope question.

I is down the Monte probably in was you're that that what property pricing somewhere long place my take right come X%, cetera. U.S. firming when Look, in CAT, that not that. see I And said X/X we talk renewals. around expect Carlo for the could remarks think et ago, at minus all we And were to we too minus XX%

things think post-Ian. to the changed I we're in right, X what think each Milton Carlo cetera. had seeing there, a perspective I essentially major hit storms We since have storms, United States, Helene Monte few And in I We're happened happening rapid XXXX But intensification. seeing that a there's other. and mean very the sets powerful within week that certainly on right? out of what's similar et

So that's the component. U.S.

The were of floods things Europe it X%, the other et also down year, the this part last right? is in in going probably year. thought But was Europe, So to you be place that have likely process minus cetera.

Now third quarter, Boris the cetera. have Storm we et in

the our Europe. U.S. is So both XX, plus go well thinking is likely as X, that in pricing as to up plus in

ultimately, now, And the renewal engaged the we're our at settled. actively teams and in process. we'll that day right dust But see of end when actively know are the quoting has I

next of Bank Shanker America. with question from the And Josh comes

up definitely on comment. follow I that to want

So is pricing this I a negotiation says of think a down you to sort argument? X%. going on brokers, right should now? be Is talk tough there If everyone

X% down maybe now. X% I it to to used down think be XX%,

open? firm you're X%, of plus are bear telling there Or You're saying are is negotiation December going that's the positive saying out? -- pricing orders to that sort in I XX% here. this you January say -- plus XX confident

mean process. to negotiation. fairly terms in Williamson. in at very to I firm the the this the of be is wire terms yet. order It's down do not expect this Josh, we're Sure. I Jim early

a fundamentals, think step on, back CAT the active all, things of very the it's minute some a touched some But of been first quarter. of if and you for Juan about

a you're a it Now less a if fact reinsurer the It's if primary, been $XXX year. losses a than you're billion has are but system. the in the active little is over

larger, of not had type north don't would it I and it bad shifted one, most maybe Again, have lot that feared, as as people a much recall imagination Tampa, major hurricanes I if several Xx been we've or and takes more of think had to think the while recent a it event. to the

So mind. that's in everyone's

and that factors against is other and it are capital think change The elevated critical, management. loss backdrop I and climate the of

quite buy buy clients clients to number a our we've are more more. demand had As core of who looking is And capacity, already to substantially. with are conversations rising looking

that is factor. certainly a So

Dan think our are to have ] be our looking us And And in then that I that of CAT our which America of I -- our more capacity well. very I I to for second think Everest. I clients, will peaks nonconcurrent it's terms, mean X/X North from [ would just is lastly, that mean say, paper. something deals the for north buy favorable particular, quality none. And as

all situation up we firming when strong. think So returns be and very will of expected will rates think think a I be that we ladders to

And mentioned X done. more [ just you this loss really than its [indiscernible] you X think put ] ] impact? that X ] a [ or about That's potential [ do has quickly, Milton X in X X

No.

it X think has I impact. X a absolutely ] [

have clearly, to U.S. ] [ a obviously. going a on than Europe's it's X problems, impact got programs of diversified Europe. it its would in program CAT Now own on X more

But weigh they be absolutely activity I on the of I think think that the hurricane on U.S. programs, So going this exposures. the it based and intensified I near there pricing. for is. will to world fact Southeast there the all program where is is a think in variety all differentiation miss, some And have

Mark's how reinsurance Right. the ratios. the And to that's the mix changes then you going the and about affect talked in comments, in business loss

ratio loss year-over-year should clarify load larger higher as expect we CAT of a the works decline that to portion it? to tail modestly should short see that in, both, business weigh we with Just the

I clarify, reinsurance? I'm talking it's or you're just... Mark. want just Josh, insurance to about

lines. and longer-term from lines pullback the tail short The

on I Yes. risk loss elevated a obviously relevance, only is generally a higher speaking, yes. would would I environment trends. casualty speaking, But in given now Look, that I we But the the provide yes. we're would particularly say, generally what for review the call caution picks loss

Alex Scott Barclays. comes next The from with question

I And that through since loss was appears in I at much the reserve want a this trend your time that and could to impactful pullback it were to quarter, just to last you hoping you're substantially buybacks come and trying some that becoming XQ. of bit year? view the looked context understand be we in going in the dynamic that from just the more I'm study maybe I maybe of the it changed property this. and back comments, significant this mean seemingly just of higher how next in could capital? capital understand share that the for gets deployed towards more

it's Mark. Alex,

I we think don't that have. share capital that or answer see really buyback the short excess strength impacts is scenario currently I

So I answer that's the short on part. that mean,

other a build think are business. we well-diversified to I the continue pieces

of our our seeing that's we'll elevated us would margins, tail in for and property the include American on that and that we're and North strong business. complete It's industry, what casualty so lines we risk studies. keep And eye particular really shorter is the as factor

you're Got can change at you it. we've [ the mean I behavior level, then that ] about storms? the intense suggested maybe some that in property, actually these And -- very primaries That's helpful. in there other primary third quarter. talk from some seeing in what least been at of the have post you're has seeing competition and heard commentary

the see example, still rate environment. you for often is most in that's obviously, is back, I increases. and say in headline. taking channel middle in the still would Sure, look I a the Williamson. actually retail This we're And still peel that positive think is that at market we overlooked. you But rate example, that property One, portfolio, if for couple our commercial Alex. of I Jim U.S., a mean, Yes, comments.

What risks where priced is just I'd is significant more over adequately. few say, years, rate the the very wholesale are last market competitive, I say taking would you had

so going to people those -- see want And increased want they to you're deals. as to write competition

increases in accounts, few highly large rate opportunities. attractive shared very engineered global the similarly, best significant the quality of programs and last risk, over the again, And years, layered

rate You're see to there, to attractive. which some think, going levels going headline I is heightened competition very still down, take

out And repeating attractive. again, know little bit I then London And but obviously, more we still think a very it's we're market. competitiveness seeing I'm of the very, myself,

think it's much I mix. So very

do areas don't to increases. think help will necessarily ameliorate of trends. I pricing think maintain to for it had. will I events expect rate those give adequate taking competitive do some otherwise But you folks suddenly of some flip Now recent pause would longer have those I more levels and to than

The Meyer Bruyette, comes from Keefe, next question & Woods. Shields of

guess confidence the like there's I you I interpreting back I'm differentiation? could that it correctly, that us the much comments issue, leads differences Great. to the there segment walk sounds, reserve was if your hoping more to in going than reinsurance reserve in insurance. through

it's Meyer, again. Yes. Mark

large maybe the So just expand at industry in stage to commentary, set the here. with where we are

loss been North quarters activity persistent some several clearly I seeing casualty American elevated for with that's for lines think quite time. we're

generally for environment gives that U.S. so And risk casualty. higher

time. don't you you ultimate what length to know and So going are don't know be, the of the outcomes

higher risk. So it creates

you've you geographies. very a casualty, so got When a organization, look financial lines, mature tail, business forth, at lines, multiple portfolio, portfolio, short reinsurance very international and our well-diversified

I portfolio cedent reinsurance over think, we of last And the We've in other very a track data. done, constructing as lines. eye good particular, the few as job on well with casualty years, an

seed And of cautious, casualty more I ceding and discipline. in pricing would terms and say, selection, so preemptively, terms, we've on been commissions

risk and lines the think casualty that lot we I good a higher pretty environment U.S. tail clear is shorter a in you strength about is that have, financial margin about creating. when that argue the deal all that embedded of feel and would with we So what as we

of level we have same that Now don't if to we move insurance, diversification yet.

casualty in are We proportionately heavier the U.S. on portfolio.

a portfolio. diversified we're more into Now moving

you're think in relative terms to meaningful shift U.S. the insurance casualty overall portfolio. composition of a I the year-over-year of seeing

during in terms year elevated studies. the data activity from the on and the that's U.S. loss similar findings levels taking reserve And of into so have we of lines, casualty we're of account kind that

Juan have But lines and earlier Generally we're script the that from good do highlighted performance No we seeing insurance. speaking, that shorter we're property casualty lines that. tail about recalibrating. specific in his still in question

of one managing of environment. fundamentals higher-risk And in casualty that's a the

able stage, the from to types and cycle appropriately, And inflation over paid that price getting that more got lines last quite when that's towards more You've also management to got you're macro adequacy, ensure that volatility a these attractive better manage that quarters. pervasive abuse come managing think of I the that's which like you're for you've -- the shifting you're legal ultimately. several the your system can you factors reach risk social resources to means

Meyer, this just And mind Juan. that same pricing their get particularly keep actuaries. what reinsurance. set that different your picks is said, our those teams portfolios. are in the comment add question often from own for regarding our from clients the loss loss reinsurance one They picks to I we picks. are Please would Mark on

And adverse necessarily doesn't to So book, translate into our client's development, mean it's -- particularly in adverse a mind. think book. I or development reinsurance particular in that important in keep

is Yes. helpful. very, That very

insurance, in on status of looking question. quick growth countries guess, licenses for target? update where you're a building I I the the the Just an was out

is to Yes. that now. up say No, great question. everything and I'm happy running

up X X Since and business. a are A our of local quarter, Everything mentioned in last X, all delays. the is been We're the running. fact, then, I matter think that and operations in up in teams. we running. couple I I've had of with writing last continents months those

countries we that to go to up set out all to good we're with point. open this so the And

comes Brian Meredith, UBS. from question next the And

them couple here. A of

the you've one property curious, Or still you're got casualty, higher little the trend seeing could of? just to potentially to kind First, more is given a shift right CAT I'm the a given X-point going of shift on? good it from load think now

is the still is we've losses look, Yes, Brian, our way described Williamson. CAT Yes, expected I this Jim think relevant.

volatility writing when by associated much portfolio with not exposed to about And which, particularly a zones. thoughtful We on say business, in exposure basis. per have are nature, peak property at write property. less how of very our be diversified CAT I in CAT being highly We're also less larger, to -- risk We're taking a would engineered insurance our look them. accounts we CAT insurance we're and business, not more their overextending ourselves very are going tend we're you that

do the a macro monitor, moving closely, basis company. So the not very accumulation for on while it's we obviously, needle

Mark. with. what started it's to just of to going a I sorry, add Brian, Jim was points couple

the So that our the in appetite. or gross our program, risk hedging we're risk, things CAT program one that managing within doing better capital all we're in shield emphasize minimizing basis is returns, really

And more got was by PMLs of so Jim mentioning. diversified set I as zone, think fulsome you've a

you're going argue see probably look the relatively that second, And a our loss losses take quarter. actual is I of more they smaller. versus some when then at our you better think are at look performance, proportionately to peers, others. And importantly would performance just are CAT the this especially speaking I meaningfully than Helene

And I that's good I of the point. would to loss proof a also CAT to think peers. point our reinsurance ratio XXXX performance relative

build-out. international Meyer's And sense. question was, makes quick just and the here, kind Yes, one add-on other of of an one then Juan, what kind

completion. operating As we obviously year-over-year to we're growth think now, forward is closer business here, the seeing build-out about as right obviously, going slow that the getting expense insurance

going insurance about with given premiums given retrenchment, the Should of perhaps in buildout operating I growing, growing expenses your the of disciplined? than on casualty but kind call units just that faster and kind what's that think still are

Yes, Brian.

Juan. So this is

me Let with that. start

earlier response you still in online. And better to international have we than think coming Mark that bit frankly, made his had bit is investment own what But in come the effect starting our that anticipated see a one I that little J-curve in a the premium business. a we is plans. earned premium points in of of earned the the

So that's in to think mind. something I keep

open to to is countries wanted that time. we opened I've answered Meyer, this the for that us in The what just up we've to thing at other point

So deeper what you're countries to particularly us that we've these investment. going dig in already in made see XXXX, is really into doing,

should rate, help come certainly And so -- from the help in earned growth premium that that the perspective.

it's then property? [indiscernible] And assuming you. Got largely

It's mostly short tail.

component be in a to We of property. marine, But is financial component depending the going is casualty the on write type you're business, of right, kinds also -- and it's of the a lines. there that's minority. region those specialty of country, about think lot majority So a But international the things.

doing They more in this loss is calls business. of I've this get one is strategic it the from for points that's a we significantly prior part reason of tend made that the to on better So ratios benefit the run do because mix property.

is cetera. exposed, of Some CAT et less it

it's Mark. Brian,

'XX, right one add foresee. to for just getting of that's ratio where at end Combined in of now that Sorry, was point, guidance lower the the half of similar what question one to the second clearly we Yaron factors we his second towards are upfront.

to the ratio stubbornness see net next can the actual you the works where expect kick than for But of in would the earned And growth. way I J and then curve more through side, scaling subside. I quarters. So a impact would that's the as of expense ratio start to see with expense its couple bit this -- premium the

Michael The from BMO. next question with comes Zaremski

focus and be the lot of you'll XQ. doing dive in deep A on on of questions casualty kind

you helpful they're Just -- cetera. versus they're et loss and investors picks IBNR your out investors because the in portfolio vintage that to U.S. you the on by see the data not statutory and put cetera, U.S. but the as see et most curious, if just can can so type global side, triangles, of

it's So on I this a basis the big request you a would something maybe on Is disclosure you level question statutory show that or company-wide be dive, To reserves extent guess a consider? doing casualty? your us deep you a eventually to of too. for are willing more

Mike, Yes, it's Mark.

to definitely have marketplace what's pursue think understanding take objective. step And and the I the a of something want take account in another XXXX obviously in the to we on. reserves, kind that that's this and in we to improve level took the going do, step the that we'll of in I of transparency We as late with granularity early XXXX. hopefully we'll feedback forward into think disclosures July, that continue August

think kind load. the segment, of been on this closer share just insurance about -- catastrophes correctly, but forward. expect maybe of a to small or have you're clarification CATs saying CAT guidance you going including of is I that you've XX%, that I'm XXXX, But on the beating a to thinking -- And market Okay. a on of the half back

I load, just CAT want inclusive So make is to that of sure right?

correct. That's

ISI. Next question comes from Evercore David Motemaden with

to on quarter half. has here get expected compared has casualty trended that wanted insurance the just reserves something a it actual seems the because just like back maybe come to quick quarter, the book through changed I check to third just just this first side. the And in how to on on

if So new seeing there's that anything you book guys are wondering just quarter? this underlying the I'm in

I but we a general I seeing think loss it's David, elevated and been elevated QX. Mark. comments would in GL are over say QX. some casualty that seeing trend it's has casualty, in last minor lines clearly And made activity increase itself several somewhat trend the that definitely we activity in loss The quarters, itself, the in loss U.S. we're auto. principally the in commercial excess spiked

would the lot reinsurance. we on insurance, mind in lines also of Now flip side, we a never other have

lines, loss of or we're even And workers' activity so when or you're looking financial comp some that clearly some the side. at like property favorable seeing on things

and aspects we bunch into expect is activity go whole take of that process. that's out loss reserve our The QX studies one factor. into to what account, come the of so that would And a

it. Got

Okay.

-- a think, I or should yes, have was But the more benefit, tail the that loss to the on casualty So the do guess higher mix the on on the book. then shift that ratio loss ratio moving the attritional I book? is side. Is I attritional insurance insurance did short And that that I had so just see there. underlying the I guess pieces just why of in reason loss sounds correct the like ratios flat it the in interpretation flat guess

of Yes. couple so a Generally speaking, points.

something intentional accretive or some as portfolio. a we're One, mix and do mix. able diversification was to well reasons. attractive momentum for definitely That it's economically our the that quite meaningful for North couple improve time, in we've with of overall been moving to We're adding -- the the is towards more both as think business. of international I been portfolio America we've trying

some line shift portfolio And so the that ratios or the more reduction casualty of account favorable that business ratio getting expected quarters. that's being that you the mix the don't in the taking see comparatives with in we've expectations into this improvement A&H an in of And you're the impact versus combined much of then mix the referenced there. our why actions shift from throughout of prudent loss business. despite from impacts of And

[indiscernible] Wells from Securities. Next Fargo with question comes

enough tail to you know specific, long you of nature do those be I do in to casualty, think saw a like long like we take given will How firm I become it's return you But is going this shift to growth constructive? to its to just it you in for terms for kind reinsurance not of there need property. pricing guess, in to what segments? huge see for more

composition drive our deal rate Jim individual a in close? commission [ is And going view thing a does is much what mind, Christian demand what's achieving? ceding the account and to is portfolio? is their ], obviously client things. of our is how on most One share It's quota of couple really casualty What that then to of to this keep reinsurance so Williamson. basis, Yes, any

sort we is, we've in core and some why, expanded deals each every ground what price just And all portfolios bit. in XXXX seen our the equal. and has then don't those and into so down other We with created share actually a obviously, We grade clients, There are deals portfolio total, of deal of make that's leaned come up. are like. deals not and many

a broader-based would expect better to economics. need a would see be in get underlying that I spot order we to improvement in what to So

are in that's more places. rate So starting to which see acceleration, we some

occurring improvement those we take more been ceding think need but amelioration, some And that commissions, have are to relatively factors in the need see market. which bit, backs a the to I down have of see we in inflation social some modest. come then

a prop versus And you. international? your of said But that guys it, then to X/X. expect I at call to U.S. business expectations Got pricing for CAT X% could you breakout know be XX% you you up, provide

we're relatively it's U.S. consistent territories. think look, I -- than I Yes, Yes. will Jim Europe. relatively think across slightly do again. more up Christian, be it's

hail, given Juan severe et cetera, widespread pretty this issue pricing saw We earlier, Europe had what with is flooding, is which Boris. some expect what just commented to storm on recover Storm we persistent conductive of

So we there. think needed a correction is

think markets, a a are to flat would Australia that I see international I in though, where pretty good markets like more of are and environment, point and may place, Japan. you There other pricing

it's So mixed.

though, and I away, well have take to pretty a it. point comment, the to markets I and expect firming. going CAT into think continue around we're world -- key is think And the attractive that be we to us, and to priced is think global loss, those property to lean is I experienced much this general

the Cowen. with question And next comes from TD Kligerman Andrew

it's Maybe we're I'll the just wholesale, earlier, on question. the pointed interesting ask a hearing has Jim with markets out and lending. in quick commentary large global It property and been

in rata is those proportion areas excess are maybe more and wondering, specific XX% about materiality of guess, a property the the close number, like you X seeing I'm X/X business So of the non-CAT of reinsurance to loss, where that portfolio the your to book book and a necessarily seeing, not of the of relates of -- give you're pro insurance, of I then just Everest. competition, book Could sense but is XX% us that to about short-tail what stuff.

Andrew, it's Williamson. Jim

comes reinsurance first it and to a of core the have it the you own business, property part its rest which to is separate about that. So XOL, talked I dynamics, from our when has because of really mean, all, CAT we competitive that

be property The the and would book. rata that unpack for you our of insurance property would pieces then business I pro

of into where our we very casualty I E&S pro more reinsurance core the described. more describe that of little very that factors rata, leaned a to In heavily is what strong. as the I described, U.S. in some less business think would we've property pricing I've portfolio, susceptible It's

more think a there's and yes, got so And mix. portfolio will that I large, But portion right be we've by competitive. the

I of think about And say relative It's shared is not writing property where we highly do deals that We what's middle-market talked also adequacy. engineered write price necessarily and We're rate. But important prices in the a mix. continue seeing to more where rise. where are would most I then layer little are it's pressure. those I direction to insurance, you

And or, in pricing. well we above we're all what many at in say the where uniformly cases, of I writing adequate to are property, consider we would be areas

write so can earn. all And feel those we that good and profit areas of we'll about the

the pricing along how Excellent. you leaning seeing And insurance same line are are in? cyber, maybe there And you reinsurance? in and

Yes.

it where ratio been terms businesses. is in in sort share more excellent, overall pricing portfolio our of reinsurance in cyber We both to place and caps. portion ability bit. continues cyber tight conditions, quota So particular, loss very a where achieve particularly down a of come It's write a a small pretty little have treaties bit to for in our

but We're not still. book, think still it that very growing necessarily attractive. attractive we is So it's

the insurance down. coming prices are side, On

bit prices little come strongly, very a more sensibility period than have around up think more a there's did adequately priced. I think obviously where that. I We experience

see more a You little competition.

portion very our very about though. we're I as cautious portfolio. And said, being a So insurance of small that, it's

any Andrade This closing for Juan our turn conference to session. the concludes would back I question-and-answer over to comments. like

day. forward have great for Thank all your today. fourth questions excellent a and you look the I our again meeting quarter results. discussion Thank you, discuss to and to

Thank you. conference Thank has attending today's presentation. concluded. The now you for

disconnect You your may now lines.