W. R. Berkley (WRB) 21 Oct 242024 Q3 Earnings call transcript

Good day, and welcome to W.R. Berkley Corporation's Third Quarter 2024 Earnings Conference Call. Today's conference call is being recorded. The speaker's remarks may contain forward-looking statements.

Some of the forward-looking statements can be identified by the use of forward-looking words, including, without limitation, believes, expects or estimates. We caution you that such forward-looking statements should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will, in fact, be achieved. description annual XX, Form filings and XXXX, the for our year for made the to environment SEC December business may ended and a our important refer factors report we materially XX-K on the with in that Please which the affect operate results. of our other W. R. of events Corporation not under statements any otherwise. I update to obligation its like is the any forward-looking disclaims to future Berkley call Mr. or as whether new would now result over a such or obligation and information, alter turn expressly to Rob Berkley. Please ahead, go sir.

Krista, very and a comments, call. thank you echoing to Krista's QX much our welcome

I Officer, me our going to up Rich through a you open on we're walk to and it you few of going end have. follow also participants and And would a the very addition then, comments. with typical Executive the is to Berkley; have Bill then shortly course, pattern, Rich to any is phone, address Financial of Baio. highlights. In follow Chairman, that questions We're this up to Chief Q&A happy and will

calls lives, estimates real from and then the numbers any One, people's a two Before and lost discussions as to and like recently, about make. said, has having we've I'd important to flagged That us. been or not quarter of nat this is our obviously, impacted models amount talking past, in those more on start significant oftentimes fourth in consider. are the that and and perspective, these I industry people countless all and the And Rich, points even quarter, on to there third been hand over it that has activity. cat

facing deliver the I'd impacted, while events. of are acutely of So and claims policyholders in are to going a to extending are cat activity. addition beyond challenges that I certainly all are my and result also in colleagues to Further, like this this our the these that those above aware that impacted country on colleagues as we people our all to concern of by our numbers and on many economics, that focused the promise thank we been ensure have our to

of So thanks their that job are thinking those impacted again, those promise. we that sending making to on and and our doing deliver sure

contributing contributing having quite are insurance factors, social as standard market the as market. specifically pivoting. is a time of non-admitted loss having and particular, opportunity think without inflation. doubt in amongst meaningful the in creating difficult items Both items role these it's is in there but change impacting admitted certainly, more on continues want second to really think the flag in the it of has I risk it from level of topic that are of The and to growth is E&S the and that many stems particular, specialty matter did on lost the attention I a don't in frankly, trend, a well industry. are I pace how the recently. for, these an and cost The complexity change those been the rise. market. seems getting two subject be the And important us be factors much any playing greater on as And space the to market world, be impact accelerating. of a That climate And

to -- And regulatory as on see commercial not of many also staffing from in as in that, creeping is lines One personal addition in as market discussed a we insurance that departments front. the politics well. are the is the challenges lines it the actively market the is that are There points of struggling the pinch impact space space perspective. we in

regulatory the and specialty and circumstance extension, the point the drive particular, overall, continue. footprint on that, such that into we the the That the business a front, by E&S is in ours So at as to to And and to particularly likely we more likely look bode that, see continue for think we to as is pinch space well in we market. with in specialty marketplace. think that large going particular, E&S an organization is this

with pause to over a Rich, backdrop, as that to So hand And a going bit please. it I'm of you, there. I'll

Thanks, everyone. evening, Good Great. Rob.

prior million, quarter record net resulted contributing net in to income also a XX% of year record increase the income approximately third $XXX almost an of billion. Our over X-month to $X.X

by and to equity our share. per quarter more We continue demonstrate than of operating the experienced able stability outstanding prudent we've above-average returns industry, underwriting to earnings. and of and the Both in $X.XX on investment in year-to-date. underwriting $XXX earnings been XX% again XX% the strong to Despite careful generate contributed income particular, activity our discipline catastrophic in and once or million

points year inclusive events of accident basis. on year an from calendar several ratio XX.X%, and cat ratio Our combined XX.X% X.X loss ex-cat was

activity cat there During with that and the modestly X several losses. Helene most were continuing the quarter, contributed states to being that SCS across total the made destructive hurricanes landfall amount of

to the cat of above $X net consecutive year for for underwriting million net pretax prior excluding $XX the year. second of Our cats, grew record year losses and our $X million quarter earned, adjusted increased premiums to benefit $XXX favorable increased which billion XX.X% prior income, Current million. written and XX.X% premiums continues over accident development

to improved driven by X.X Our XX.X%, point ratio ex-cat quarter-over-quarter current year business [ accident mix. by loss ]

of the before. XX.X%. the increase the with have our in reinsurance we've in experience to contributed and by The invest units business to basis structures for XX better ratio combination efficiencies to our expense drive in mix new along and to with changes continue customers, items, combined that We operating these points business announced start-up

believe our comfortably As below previously should communicated, we remain continue to expense XX%. that ratio

amount quarter. a not prospective normalizing with regarding much income Turning investments. to by do inflation-linked increased commensurate an change million investment prior Argentine Fixed million. these securities on to grew $XX year basis to more $XXX XX% anticipate the maturity net securities. Pretax the than with securities We

and a the first investment do remind second $X.XX and in year-to-date you X.X new that's remain record you the contributes when should money investable rate assets Record duration we maturity quality years remains out of of than credit cash in billion book of to However, of growth. XXXX. investment for cash Combining the higher billion. in the increase at income positioned quarters with the almost XXXX, quarter that in the flow roll-off further flow The fixed the is our elevated on for securities, factor yield portfolio quarter. AA- the the well modeling $X.X income operating nonrecurring

$XX the the currencies. to weakening dollar related relative losses million to most in quarter U.S. currency other Foreign of

and adjustment As stockholders' mentioned in foreign in equity, amount and you'll income offsets the in the currency the to the of in first has the effective note which the the past, due year U.S. taxed of been half relative we actively XX%. statutory earnings prior improvement currency the statement. The tax contribution to remains greater manage year translation an foreign rates our rate than the of our case rate in elevated exposure at

improvement $X more price gains area returned XX% time to and in will average billion. year. Stockholders' million, The million of high earlier unrealized XX%, of $XX $XXX of $XX investment repurchases and Strong likely also at consisting we per $X.X than revert the company the was coupled million of quarter $XX.XX. capital first the million, after-tax in of increased fourth of to we the billion share translation million $XXX currency that losses saw earnings above XX% an $XX equity and expect to fueled with quarter the an of special increase. of for million regular total million dividends dividends, of $XXX $XX.X This share

that, lowest almost before at decades. repurchases the value two remained Our XX.X% and Rob. in per share capitalization ratio strong of to dividends level financial you, and total quarter XX% and I'll turn leverage share back year-to-date. And our XX.X% it grew Book in is with its

thank great. That Rich, you. was

me Let couple offer bites. of just quick sound a

million thoughts little umbrella. the ex me. I Auto One, a for did by But leading really the is [ and followed context. think at closely that. $X.X [ job excess came rate, ], way thorough Rich of from quarter and couple additional on the the rate in comp a ] liability covering

loss number auto we stage, can loss about where make ratio. just be talking sure quarters, it on tomorrow. Rich even measured years. about covered good trend been settled continues, some line to need the is positioned this focused But obviously of feel assuming the getting on. going that we're the dollars additional have are. well something for we've As perhaps trend claims at We in this been that for to these we we're

talk about by year, of building it. would given the that's talked the they are return [ and thought industry. have that bad part I and it's not with towards outcome backing and as opinion, concept this points out been as but exist talked said, think have X.X-ish XXX [ [ now, we've all risk-adjusted those cats would we'll having book its value cash don't severity with to we given In you an an XXX our cats, have for of the of that it, about if club a run continue for course ]. about eye That the seem every ], to frequency of suspect about I ]

at couple covered particular, and we a ratio. been would the [ So measure a an it also actively we of that's a increased to ]. Rich you're expense again, when Obviously, and investments just the as the of on well. That cheap, at but can me. front, see on as have that will to the talked and they ratio, couple mix ] technology One, perspective, of I businesses good from over are that the earned you the making expect this not process that are business, as Rich scaling stage, comments time. we benefit impact. in said, a investment of business, get premium, from having not will we is scale expect but quick going we have to overall that believe inure XXX our return [ expense data group's the in that of are benefit the grow, about

other or the a of player. last think limits flag piece is I would and topic the the I -- low By we large, that are reinsurance.

is buy as our of same to more reinsurance. not far on dependent are peers the So that need many reinsurance our

partners profit. making our no problem a We reinsurance absolutely with have

In more every where as in and expense to approach conditions or take the and respect impact even fact, a But people to our well. need find the ratio you their now make reasonable we to can risk-adjusted to are if that have a position and change looking buying, we optionality then, reinsurance aggressive expect market oneself return. gauge,

correct you'll Lastly, Rich, me wrong, P&L, Rich, that as punchline it's impacting was us me piece and $X.XX as but I'm ways touched to a various the if for the FX about it the per lot on FX far our the on but goes, share.

Let lane. me trip and to brief memory take moment, going investments a I'm for turn to a down

So apologize for for and thank me. all indulging advance in that I

curve. with decision but spades. I one think a organization, particularly not ] rates government an short going rammed interest Ultimately, was into was system. it on everyone see to to what on the it had the some we, economic the we level of was that there the of that while duration for then yield end. come through recalls and did crisis, through, ourselves financial again, [ up and and our following saw inflation a in no It massive rewarded during occurring, that action we expect took we're amounts way COVID, inverted come stimulation that took came there short. the were When as through activity. an moved during keep We to would And view found going you the

or to will it have short-term relatively expectation as may Our down is off inflation increased as a quickly come yes, some perhaps don't over our it time. From looking be down, not but that that fall more to short as dramatically is perspective, our investment opinion, likely, than is likely we coming in of come our are going aggressively suggested. think down, income cliff. not, going And a forward, period rates while they

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and country our it there and its debt as is the to with will but So inevitable that this is going parts about growing deficit be country, government for in of forward. question that this a federal reality, perspective, certainly supply not in a the from world, other government demand dissimilar real

see mean? you're in simultaneously going It that, curve be an does We discussed nudging going shape. this we've our up. our and opportunity think the for take that a out perspective, more we think yields yield picking create, what to more to traditional book means from of all So our is as to duration and past, the us

speaking So more numbers our today. to specifically

sitting duration As at X.X Rich mentioned the is earlier, years.

domestic will rate is today of to on money nudging and rate it new we what Our our to north than believe We [ new see on taking we rather duration money is X.X%, will yield X.X going out. X% that that is that not book ]. much have are that do give up be something you

inside average years. our just of life As if reserves, a is reminder, for X the look at it of loss us, you

lot So us or is will to to book to at take of given that was we where a the out. maintain earlier. that, have allow actually room frankly, quite maintain yield it new referring that I that today that duration and, again, rate levels reality, money from improve And

we then turn So any and we'll let's will, it. like line, where to take punch to would conversation participants get the to if the

punch what trend. the probably grow, business we're is line? with up The we the increases is to actually exceeding rate getting, the, punchline keeping that trend, this: the is story? So What guess, I is believe continues The

So equal, margin to is our improve. continue all things underwriting being likely to

of the our look portfolio, of economic is yield. above at the to of contribution the investment addition our being is fact that, our In rate likely book money when matter will new that remain part and model, the other you the current

what from That means that income Our strong. so cash the does flow Hence, increase remains here. is to and exceptionally investment mean? going to portfolio is growing continue

frankly, to has ever think foreseeable more mean business the more been. the future. investment we as it today earnings for ultimately underwriting quite well is positioned going is income, So income more And as

Krista, we you to let open please pause So it questions. there. me for up will ask

[Operator Instructions] Elyse line Wells of Your the Fargo. first question from comes with Greenspan

just terms question, versus year movement the development? Was think in any reinsurance quarter. on was the within of I first My prior insurance negligible reserves, reserve the movement there in

segments. truth, it Elyse, reasonably the you tell To the was uneventful between

Rich, think, couple of going was I a million [indiscernible]. it

[ million insurance ] and favorable $X on monoline. on million $X and adverse the the reinsurance

noteworthy. overly So not

around in workers' ex the growth believe slow did to I went XX% X%. the it XX% to premium insurance then quarter. And from within comp from

implied that So X% from gave X% impact it like the went exposure comp the ex something X.X% from in you right, looks range to of to pricing. given that flat us,

some just what quarter? within the piece to looking ex Just insurance on the in get exposure premiums color the on went within or comp just

driven pun Excess on line, extent, the Auto. Auto the would intended the of are the product I just no lot appreciate, around It Yes. lines know being you to can as really I and ones. big moving I meaningful to there's maybe pieces, -- line. earlier mean, in a our by call out a Umbrella Elyse, comment But my those really and just view referencing be particular,

a is they've catch have view waiting drawn rate to up as to colleague's we credit. sand have lines what in them They the the adequacy for So share view. and my and been to marketplace the to to

process world October, a that there the to this for to that harbor up. at come conclusion comment. like and look what the So And is under the in catching is way that When quarter is we we meaningful that coming it's would of had had impact the the is suggest safe on already worth. evidence increasingly

a caution the that when seeing to would growth not that's evidence the you given October. we're quarter, normal new So in the assume at in look I I

the to world that, again, us. likely up it's quickly catching is think I

comment, would then be that how back the October you top of or the next on I view kind expect, line you've your XX% steered XXXX? of in to given XX% us in guess, and expect to Rob, So you you direction well year as as QX expecting based for would in see growth

perfect an but should that on believe organization, offering have ball, we, I grow the given a basis, that I an annual and XX% to don't crystal able breadth XX%. to and of be continue the between as I our believe,

we and where come I've a could I should continue in you I quarter level. quarter suggested a at As But to There an that. others, we where think basis, we, to exceed organization, be could be annual that. that believe an yes, there below be running on as that

with Sachs. Your Goldman next the question Cox Rob line comes of from

bit. loss a So I into was little dive trend hoping to

I years that think few in guys looking or of sort the X% noted range. ago, it a might X% you back to was have implied

could or the any financial provide in So trend is loss coming to on reason I And at point? you just inflation thoughts this today? loss some down maybe any in trend assumptions color a curious places insurance was the loosen

what don't exactly had we Well, me at think for number of color may you ago. stage. as some about even remember years Rob, remember a let to we it. have I said this I don't little I give But how lunch today what

got I comfortably at As very I comp, we're be focused sure line. trend Obviously, it But us. in said the priority adequacy earlier, X.X%. level. that we of for rate varies continues greatly ex on to we by that are excess that believe making product

a the marketplace a think perhaps to for margin. That others X.X%, clearing product as are a recollection the you in able think past, But do at number that having have clear trend have on uncertainties obviously, we the do are I for unknown. operate I firm and view to the it's And ourselves. is we of ahead start a them by we extent this will the their been from also would dropping insurance inflation, side be at and understand transpired the we've pick. line their our in been what in even that what have the comfort caution. give they given going how get hurdle there said of industry, to has and from of, to people not in, pretty that, a that perspective, excess are and And you respect that by while we has be of as said, by is they position giving can And err I you stage. how by -- decide I use we're or of learned social So impacted coming for hopefully loss this in business. they blended But even that industry take elected and trend the to have are not the on thought have would one what to

As that far big the meaningful a many as a is lot We obviously, line inflationary subsided has a that as Without tail a damage well. was and release. That you financial the of shorter of the social lines. front, impacting inflation a from was giving tail lines. question, clearly, there more and said, drivers having liability stemming I on would inflation suggest of bit auto the in was the for lines one and saw doubt, physical short a your property been pressure environment to particularly of impact on

as I way think characterize to as challenging that the that, is probably is right ever it.

And the Clearly of kind Maybe pricing market quarter how the follow-up react there might from Do hurricane a and on as of unfortunate reinsurance? sense of some impacts any outside the losses levels a into a storms. recent the across of you from admitted and hurricanes in E&S number just Southeast? really have a XQ. perspective this on

think bit reach a little on early conclusion I that. it's to a

storms settle just really and into I this think outcome very that out. stage, we're focus, we're at to where have the has sharp don't referenced, particularly, going see things going I to of Milton, -- and to come a both you think

flat. as understand doing I for can and itself challenge it, is reinsurance what be I uglier, think it Milton be to it them marketplace to the for flat proves unless to to going a my is actually expectation is achieve position that

what see and unfolds, the it the As are. to see losses goes, marketplace insurance far how have we'll to we're as going

where happen. I challenge in type occurred much think of natural with isn't this there the catastrophe the ZIP supposed was to real codes Helena, of loss

adequate have you mean grapple big for mean What very this a a pricing. that's step people taking to lot So does and trying for of does this with. exposure? backwards What

into a was answer, in answer that the think coming of short the So it's long-winded still focus. process I is

Your comes Kligerman next Andrew TD question of the line with from Cowen.

premium on element. Back So written the net

like a was came premium insurance, close overall, you I in, sense in it a shy to of So up bump the but of So It low XX%, is me of understanding outlook. digit. think, the right? it mentioned as could I'd I [indiscernible]. get Am Q-to-Q. to around to X% to kind XX% double you short-term seems earlier, little What

[indiscernible] say you store When are short-term you Sorry. tail? premium,

I meant short I'm sorry. tail.

digit. auto, growth Short-tail a contrast, fair with where, going it reading there that lines low And that you're Am in those of up double So me properly? would net low is premium, in [indiscernible] PIF up professional single I sense PIF is my other being written backwards. liability digits amount seeing the premium-wise, liability, strike

You are correct.

during October. more auto And were the between maybe healthy pretty spilling pace going quarter next into to coming hope the we end year, during continue early the the see that encouraging in is reasons at the exposure suggested. year, signs a I the month is of somewhat discipline our -- were line, to early and our in, shrinking of you're over for now On

in pretty is workers' well. which that is In not addition the as wage part to payrolls line, understand much as playing being flat. that, a of Please comp role the inflation exposure was and

cases, So well. down in there many exposure coming is our as

a the for and are believe have as in always, we more where is, is a that into So defensive places we looking that leaning appropriate. posture are margin view we where we

We our are compromise not to on going underwriting.

to month, up think world at up the the that seeing what to we're And again, But line. in auto catch to least encouraged this that's reality. we're world waking be the for you. lag a there's sometimes And to seems I in

seeing of quarters in, you're frankly, we our economics there. commissions, position flatness pivoting trade seeing reflection ours. the we've a conditions, really is front, reinsurance and lines, the on led to particularly, that still to to ] growth is like of just as this, and the reflection And a our ceding with there. that commented for the come some on number The that's down [ need property far on dissatisfaction the that just casualty of As they and what's market quite over segment, you're the the

And Rob, just kind with grower. that the like bit like a out, and are PIF lines? fair? with little liability sounds then line short it rounding you tail Is dipping auto the that the of a in other And That's professional discipline you're showing.

I I the Yes. liability think would characterize -- other -- was Rich, it

I are pieces think around. there's is that lot quite E&S The just bit. of a that particular, moving a growing in

to the admitted of relates we as the things about challenging. talked some that that is it more On other casualty, hand, the

it. in Anything developments. 'XX the And just years? note on of to year then lastly prior XXXX accident Got

that noteworthy is to you those wanted years Rich flag? during anything that

being I that an would in auto communicating said focus say liability it's terms consistent key a with the for what previously area of we've is what been commercial us. you've and

bump maybe an had unfavorable focus, or you Key meaning that steady? a or pretty just

bit is liability, positioned the change. the noise out need certainly have front particularly product little for exactly don't I but of of line a of coming that in we a had evidence but of of me, overwhelming nothing commercial numbers auto

Capital from Mike the comes Zaremski line question next BMO Markets. Your with of

a non-U.S. basis, yearly way of how E&S. guys E&S the ] market, do about U.S. think to U.S. you're the talk can -- you you it you what track Are also specifically statutory on on or kind the kind speaking stamped, paper? see when non-admitted kind the kind you to might Rob, question, have? not definition, of of you that much First we Or includes or I run about be able date of [ guess,

non-admitted meaningful percentage a certainly, in Lloyd's. is we through write So what of

Mike, but guess, think carriers, my I you're the would the be picking seeing U.S. Lloyd's piece So your you're question, guess. up to I don't

that account a educational. majority we don't E&S the U.S. is -- very or on it be of the the that to have is different notable there? kind up I business, business of a Lloyd's [ has this account anything Is what -- large But it you know just And versus if than makes ] do? small don't

of you The as Lloyd's well. while layered it of percentage will, if shared is what do And in U.S.-centric. accounts is and is vast majority some, we a there smaller huge

but a So and overall reflection of shared participate some it's generally they layered ]. philosophy, our [ do speaking, in

more phenomenon, to forward. ], -- pricing And just I play kind was kind McLennan more to think view in lines maybe continue Maybe to just for your curious meaningfully going revenue of that's which do an levels. offense, I accelerated the answers But see by to don't example, of casualty/umbrella in XX% business excess releases much. inflationary as extent Marsh play of quarter-over-quarter it growth line has [ But of account index whether clear, plus of specifically a get potential large you to trying to you of feel understand pricing you like there's social move north. your and

I would that, to market. of way the pay different is attention parts we answer The Mike,

so. we to we is view into we is are, a we're to and where where it. have margin as think lean posture do more will the think, We a opportunities defensive going appropriate, again, what the And

we the participate vast there get rate, smaller is it. we we're I with I on the And Do excess is more additional So on town. believe larger doing while mind, opportunity majority of umbrella the capture colleagues to do and accounts, is I and there please keep that? plenty Yes, my in do. of of Again, opportunity to the space Yes, that some think what meaningful I are in do the executing of do. there end But rate?

question Your from next comes with the Securities. line Truist Hughes of Mark

the I think I make And to trend, sure then year exceeding margin the continue mix. might accident loss current improve. the about to two that with you Rob, the underwriting should that thought wanted you should that think in statements? was improvement those I that said the I mentioned have had I How rates properly. business heard

well, -- two think I things.

First loss business front cat has the on ex off, the the the that with as far made as were been ratio. or mix, Property attritional pleased we progress

probably lose the -- great we in year, to track a coming a has XX something be have two don't months, ] us getting years that's know think talked loss that and and to job colleagues my done of I place time on a about, ago, better [ I ratio.

between I are the the [ margin. view victory we come that's two have think increase to we're as through, and the and declare prematurely. trend, an look, far as getting benefit in we rate understanding should rush to have of we on in ultimately the But a to going how theory of delta how and ] enure much a rate the not

then tax the what rate about year, we And think should for next that?

should it it? to Rich, you about comment on much. You do think too being want

that say today, we our expect what down based where we're XX% would would down But this foreign that's I to, which that we're you'd would try continue can. to in a we ways with I much would somewhere Rob -- rate showing path, would looking if expect certainly as year, that on at earnings to and rate think be say I keep we commensurate XX.X% area. as that alluded are as

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

going where it, for is on new right said portfolio? yield now have money the may Rich on the purchases

less got and me you. than are than bookends more it X.XX%. X%. the over think I X%, for I'd Those use slightly was

is different And that at a [indiscernible]. purchased duration than being that

that's clear, domestic. be to Just on the

So compare X.X% that you flagged we that would to the earlier.

on changes curve yield choosing given the -- Is the a to -- are you the lengthening in there is duration behavior? going

over time. we'll But what far. see so cost Incremental

say I for longer better? to we what What see would that is mean. exactly to you That's need

road that And quite tell a you And it, fixed quality the see the flagged, I at maintaining Rich a a AA- always try a it's don't a concerned you incrementally not fluff I'm answer, at credit, up a And will. a and have we they I time. compromising position not as portfolio. you but how as they or story you the what why were where watching in that's to -- to colleagues to for on COVID but we'll close doing all we're of financial will the but concerned concern ago? Josh, during share with less outlook on about during compared to where saw we're well specific quality, have compromised mean, this compromise if are don't and as is specific think, probably on duration we're I every where the something do. can is to you think crisis year very credit you going I in and just book always on we credit yield, that, it credit quality things, concern, We us frankly, map strong just and day. about that's given income -- unfolds, attention playing see I more concerned are

Your line next Motemaden the ISI. question comes David Evercore with of from

just Rob, on I business. had question the insurance a

that some these So on ex the was making of some the sounds perspective and bit well a that there's flattering of just XX.X% light wanted accident to year-over-year. been as like from progress result from all might you'd ago. mix fire like year I or loss of else losses see if the improved be non-cap basis guys anything points cat ratio XX you unsustainable have guess that property I anything highlight? in a things maybe

biggest to through time, obviously, look, with ratio contributor the we'll that loss the was improvement associated passage the but referencing So you're property. the attritional know the of

I case. got I that's at think sense do lucky? look the it, when My don't we necessarily So I think is just

situation. think seeing that's seen, hard have time. many But you're it based have I I working what see more are my again, through. come colleagues And on over we'll we have sense really and that improved the

like something guess, improvement in property specifically that should -- now? we fully going Or attritional And see to numbers is that that that book? forward the then something is I on that mean, like that is I continue

share guarantee Yes, us completely not of that's from we it. better of promise will get but as can't on being I are take many the transparent. are what trying back? Could they made, by with to them or But a progress it been mean, my and be David, look efforts a our I'm encouraged based it colleagues. I it's step here? it you, the I has they think reflection Yes. Could bring. that tomorrow what difficult, at of could. exactly and somehow

and And and I first PYD -- that maybe the in ] year year the 'XX. was guess how just just there like quarter that up? holding also adverse I It the guys on if third for have the you in and [ quarter then guys quarter. this adverse And XX-Q of you accident some taken continued saw business looked here second line wondering other XXXX liability XXXX accident I'm in are that the

queue, have what But think if in to as chance Rich perspective. and I out a lot opposed worth, nothing ask you as or alarming questions, have the please a from of suggested that there's to any reach there's the through us. that getting it's concerning once nothing, queue have flip to earlier, into we'll you for it detail, our

Research. comes Your the with of Tunis line next question Autonomous Ryan from

growth Rob, first trying XX% just XX% figure the if I'm question, to the I out about this good and right. afternoon. thinking about guess to thinking

do that, while that, some of just auto a it is So or saying am that XX what a grower XX% XX% that you is what XX% about XX% a is to over thinking you the really XX. is risk you're more And it the view? Berkeley to to next you're sort perhaps or understand, you but longer-term be reduction of remediation right, doing challenge to commercial think flagged I trying to quarters? might have few I'm

at me your to least Let try answer question.

have are the I today XX%. on we trying XX% an basis, suggested think we grow what annual can suggest at and to believe to business

grow where we quite look would past, we few the to like a more, the quarter and the out while we some at as relates is use. action in queen, to grow it auto, less. to addition, for could In in we'd quarter margin marketplace we certainly a Ultimately could king, underwriting us, that When particular, be be label during there auto. a there like grow, took related lines frankly, other quarter, you'd we to as whatever suggested

that As the of a growth. slowed result that,

seem to starting The we actively and One identified grapple more as what are things encouragement would least somewhat. the the would quarter will maybe earlier market it have at you subsiding is that October, suggest was trying I provide of view some though. that headwind issues parts a that as to would that one-off see I of in with those

bit that was merely believe you short, able is the we changing So earlier, quarter I suggested less the saw bump be of understand the on issue becoming view little in is I should trying to to help which grow story an and we unpack less a what October. an XX%. basis long what and to based business that speed are I Ryan, position that of as not am annual XX% the I on

a follow-up, just on a ones of just Then quick couple cats.

But First couple of of curious a from your all, what I'd loss back Helene? Milton. for Can $XXX of from be growth that second number of be was all, probably to it you directionally like look a years given a Ian big I is to the was about or this if quarter say ago, know could cats. And I million want give it then the [indiscernible] you don't [indiscernible]. standpoint, again

There going the what attention from number. obviously referenced, volatility, you've But you've cat whatever heard it you within of think over got as to Rich, pay from organization is heard you've I as , Rich or on of the premature for of activity, sitting was will related. to should as you take, whether far the side. us for give Milton, a boss, investment would all attention. as loss. be or And really me the heard on. Switching would the be, topic to think it very it or there Helena, Helena specific half were Then that the underwriting think expect my side close be this size we you from as other outcome For the from though give assume other Helena about losses some I were some it, I

Milton, much as that's give going that's probably can on out I to as think color of about something you that I don't come pause but make anyone there's that, to that's going severely. So

Your Scott line with Barclays. question from the comes next of Alex

ask I lean how a work opportunities have sort to dry always capital. sort company wanted of guys a it's have. on in you're [indiscernible] lines. bit as And in some you powder much of you may externally, hard growing been to you to question have less some little capacity judge different doing about a

And buybacks as and with signs into that? dividends about so would but growth I you and And How special do you order then be this right pricing sort good now. at and interested just think some could on better not much if of putting you so share pecking how refresh getting us just maybe [indiscernible] do point approach forth? it

of curiosity surplus perhaps has plus. running through it to comfortable need as we Arguably, you can surplus capital, than more to there capital have shareholders. to of which or opportunistic. that the be company data model experience S&P And will a and taking we position. who excess our And the to has again, specifically would our real is allow perspective, the those anyone opportunities, a returning that our get us a of And belongs that even and from we to go So be taking capital large maintain through. see will one painstaking

more of it. generating have than company can is excess utilize the capital So at short, story stage an capital in this quickly we long we

will plus. to while ways return reasonable balance for a a continue the it's still maintaining assumption So to shareholders to we that opportunistically look comfortable capital

ask years secret outside. to recent wanted about it's accident from I external struggle some I and included looking the no that mean, with myself the follow-up, that. more disclosures at in a As hard it's folks reserves. on And

are don't the But you like the I on And update more look What So what loss you, I've it's of to paid know. ask things some ratios the some the nuances wanted you confidence seeing, the things more years? at an of are the had? all give accident to what maybe than are you're that that some it? of I recent when

couple but Well, and the others would suggest happy in we're pick the again, I'm the past, things. you conversation ratio anytime a reservations fully paid about of talked anyone I or wishes to have, We've not I understand sure that up to. it's really loss that all

we to is to So brought think the to that growing? that, case, we've we question addition that trend. business two, to were that, people's the talked on strength IBNR some putting see back in with why And relative there think to to our I growth. how or IBNR strength by the well account forth. other is try because the the total the to that take attention should you our relative earned, compared which our as initial addition In to our about attention talked last which we IBNR reserves Well, call to then relative as that's premium, of the people's and were into draw Rich, about metrics I we impacted can earned fact initial IBNR of

In having the full other more an where need claims reserves a that granularity. a reach conclusions, recent mixes people that And of we've opposed a we're as appreciation that, view of mix of with think they business unpack or some without years folks I made and about those for there in lot greater amongst there are using to form that some they our addition before a to are offered to cases on incurrence thought have how business. form

look at at loss operating we reality and look can and product the help the us by and the for to line, best it time. the look we by fact from there's we prove hard it to to everyone quarter, very business, look level understand our we that through our at reserves, also the their between perspective, than entitled aggregate time, the And of a respect people ultimately, two. at is So granular very regularly, it try it's at but going a in same every we to other doing opinion. be At passage we're and we

point that last relates topic raise the as of reserves. to the think would I it I

say, slope challenging a line to they would had potentially over or world the product and having with appreciate distinction participants broad out can and "Well, here recognizing I that is the perhaps to and that, this very company slippery make a that, and And circumstances, base then that see leap grapple and that this problems be everyone. with greater use think brush be exposure", there And this the and they'll I some casualty go an invest they liability at who other time oftentimes particularly at And with than at very for they'll encourage they'll to would finer when when going line brush. value. look else a additional a I then it's let's market perhaps product paints extrapolate think exposure. have is issue that people look

next question from Brian Your Meredith Financial. comes UBS the line with of

you. for here questions Two

kind any perspective Is looking what way from have results. Rich as businesses should is and your us they about one, sitting of help some businesses some over about and now, them these potentially Rob, can premium in kind talked of ratio these First you give but incubating they you into you the and that there of and quantification how expense right new are benefit could come the of XX premium put a kind online much next months?

be it you you I comment? if to of Rich, to can speak if something I Go Brian, give call. Rich, will on. more don't mean welcome or was what you're specific, your a us that. to want [indiscernible] we want the back envelope. know

numbers, I'll round over There's $XX-plus that moved say, quarter. quarter in expense into written category corporate the first in and net the our from, four in units million expense our operating we've underwriting premium category

[ So in that was the benefit the ]? quarter

the very are stages the That's on they Brian. picking much it that point to maybe But the quarter. by the businesses, in I up large, premium early scaling, Those contributed taking further. think slightly of in and

see accretive. So sooner dilutive them hopefully, rather the later expense less perhaps And as and will some than ratio you point, will at become to it neutral. scale, they become

my then investment least of on forward XX we I at right is returns Should kind Or for calls, would have about talked last something kind you may on time. in question, snap back those that Is been unusual going previous months, that now? have below [indiscernible] of returns your here funds I of this they've over point? something should second funds, there your the going think expect there? some lower been, kind of but say, kind what historical at And

be and visibility. is back us a book that to believe time, all times, But you're the you see $XX it's make short But run, at I I number you short over get [ towards over the arms as to we long million. to I But but going would think the probably on consider returns encourage $XX run, the that think how takes to the run in quarter. trying can And way a in would these qualifications. the pencil time, it to to we're $XX encourage -- know. waving that a in surprising its again, lumpy, my hopefully, actually, ] me quarter. offer We the I in Brian, quarterly million get short million going lag it in

to no Rob time. I closing have at in Berkley this further queue the questions for comments. turn now our conference We back over will

Yes.

So bye. before our add have don't at Actually, think say a thoughts. good to I Chairman but this I anything time, may we have few

our to and went of curve move the add like that just one income is would to that changing out. shape along yield I comment duration take of the advantage goal of with and the our investment question the is portfolio

the we have money we're but strategy AA-. as flow. look we the to side. not At you time, And are interest On a we don't an have to geared a It's of Rob no probably the only of longer said, quarter $X same can if a in therefore, of there's that's level if go opportunistic the the quality, rates average going rush at of leverage at lot billion kinds It's to cash not reinvesting view invest. that do think all, lowering other not to lot, past invest. money, down especially world, the things continue hand, the bought And anything, that. AA, to of of in we been to on the probably have the going That's the

So let from operating about optimistic profit income we're margins investment our quite alone underwriting. our

duration continue concurrently [ see as the improving quality we ] yield to So and going up.

thank much, you our very you to and thank Krista, Okay. participants.

suggested Thank As up good in evening. you a business days. look earlier, the with positioned, to well Have forward is we think we you. catching about and XX

you you and participation, may your call. Thank conference concludes this today's now And disconnect. for