AXIS Capital Holdings Limited (AXS) 2 Nov 232023 Q3 Earnings call transcript

Hello, and welcome to the Third Quarter 2023 AXIS Capital Earnings Call. [Operator Instructions] Please note this event is being recorded.

I would now like to hand the conference over to your first speaker today, Ms. Miranda Hunter, Head of Investor Relations with AXIS Capital. Please go ahead, ma'am.

Chuck. Thanks, welcome Capital and Conference Quarter the Call. to morning, Third AXIS XXXX Good

release were financial after earnings and Our press supplement closed. the issued market evening yesterday

If Investor visit website copies, axiscapital.com. you of at section our the would like Information please

Tizzio, Joining CEO; President and are CFO. and our our me Vogt, call on today's Vince Pete

may to begin, the are which question-and-answer like that be statements. made remind facts forward-looking we Before would during statements section, not everyone I this including historical call,

reports may factors results materially and This due any forth assumptions. or the files We risk in last recent other the undertake Actual projected XX-K the in most statements the risks from forward-looking factors report identified issued company's Forward-looking obligation risks, on in company Form includes or those update or involve cautionary additional uncertainties earnings to to the events SEC. a including revise set differ forward-looking note regarding quarterly statements our our night. on the forward-looking variety no the in statements. statements of XX-Q the report with the release Form press and publicly

and addition, supplement. In may financial release non-GAAP Reconciliations included presentation in press earnings contain are our measures. this financial

over to with I the turn And that, Vince. call

you you, Thank for and Good Miranda. morning, thank us. joining

third the AXIS quarter, In delivered results. strong

quarter, specialty existing complement team and and our to we premium growth, ability made that talent bring improvements capabilities performance, new the produced During double-digit the infrastructure, enhanced record in to our investments operating product to market. our

which strongest performance include, history. operating per earnings share company's year-to-date per the the earnings during operating X-month quarter $X.XX, of at indicators highest our our quarterly ever Key in share $X.XX; is

year. first of was equity and the quarter annualized XX.X% the for return X the Our for operating XX% months on

year bottom overall delivered On premiums, prior new to results, the events, including industry XX% underwriting results We million faced million. income combined and ratio as was estimated $XXX record active global $X.X we the line produced top quarter in XX.X% billion, of $XX over accident healthy which a in an even business the quarter quarter. quarter. of underwriting a gross this premiums the increase year exceed of for an third written side, both strong losses weather of $XXX for billion industry-wide quarterly as with And

Turning segments, produced to premiums within Insurance business. our the now or to prior $X.X close year our XX% in first, We quarter. written over gross billion

for quarter. the New quarter and any were a million, for of second business the $XXX also record the third highest premiums quarter

current of we On a very ex-cat XX%. result year combined the an strong ratio, ratio XX.X% combined accident delivered and of

of while We $XXX income professional on produced but both portfolio an of generated rate increases. we of from benefit rate past of premium million, all years. high I'll lines speak the over of double-digit Indeed, those compounded improvement our in to few underwriting loss cyber, delivered ahead remaining costs, overall shortly. $XX double-digit increases continues and million. X%, We more

delivered Lloyd's premiums new of Insurance America, within up XX%. deeper Looking driven premium of business, key by business increase XX% XX% increases nearly our the XX%, increased our strong our a North In being by wholesale and our a XX% delivering International quarter, business, once includes syndicate, again, which growth in London-based had businesses, robust of business. new which with with rate driver XX% growth

We be will of as primary We side. the terms property, continued conditions effect all opportunities our from changing our Now markets impacting of landscape competitive dislocation the creating to in believe line see AXIS conditions our as property increased lines. platforms. the positive sustained and well each continues across into XXXX conditions see a reinsurance that's of standard on business. respect market looking at view, across product to With insurance favorable

increases rate property quarter, our increases premium across of lines, of with generated XX% the XX%. we For

Looking at our businesses. individual property

XX% by achieving grew while nearly Our increases wholesale of rate business XX%. E&S

Our onshore in of our X%. premium increases rate X%. growth portfolio XX%. book open produced XX% premium generated increases within with We property construction, growth London of we of excellent rate of rate premium renewable And improvement with with growth delivered XX% of improvement of market XX% and

already as our solid up In marine, war; energy dual marine channels leader. marine as inland broad In product units the and included growth marine the with we market we we also stood of to capabilities quarter, fine and capabilities continued premiums art. position as new In rate platform recognized cargo North increases. servicing specie by Key XX% including distribution. liability, well to and drivers a we added offshore; our as leverage in America, our quarter, single-digit increased renewable low our

global In with rate improvements our up industry X player overall an by potential and we over see medium portfolio, the grew top term. thought a we recognized quarter, In XX% as where leader, the are premiums renewable tremendous energy X%.

unfavorable that lower we In liability as where are premium business, opportunities. and a diversification continue seeing. targeted through to opportunities public was past we book comments professional navigate of we well the private managing lines remains, as are in growth encouraged a our across the as same U.S. was middle-market pursuing my average pricing with Consistent time, moderating reduction are growth XX% calls, and view, key we're lines, our by driver At decreases business reduction the professional production of D&O environment. the X% our in our transactional rate down D&O of with

continue down quarter, in adjustments and premiums X% to rate mentioned business, open our the grew X% were while midsized cyber In cyber small to dynamic. to increases our America. to facilities largely pursuing North in market cyber about due market make as quarter. which timing, The business, remains And our the second XX% we were in

within across liability. word Liability of select taken impact a appetite, was XX% and rate and liability our particularly underwriting increased approach, limits XX% including most about lines, AXIS we are emphasizing of A class our of premiums the X%. vigilant produced we is Thus, the where XX%. rate with U.S. where social inflation. This we casualty other terms, business seeing we've a growth growth tools by that employ. quarter, increases up underwriting targeted In increases the driven

our In our flat. increases broadly maintain we achieving of underwriting remaining targeted business, XX%, primary rate strategy continue with to premiums casualty

In conditions. confident in that chosen our well markets We see to AXIS summary, favorable worldwide. midterm positioned is the lean immediate and on both we into capitalize market the we're to as near specialty

to turn now Let's reinsurance.

catastrophe a Re In which During gross specialist in reinsurance, of taking up million that the This quarter $XX included best-ever more XX%. quarter, profitable as is third million is quarter, repositioning and demonstrate production premium in we hold. we the premiums for with delivered our excluding continued $XXX written growth, our to AXIS about reinsurer focused, business. property

compared We million. retention prior quarter combined continued loss with business produced in We new of in prior $XX underwriting income year as the nearly the generated loss up to $XX achieving million momentum a a cost ratio, were strong $XX XX XX.X% million quarter. generation prior in point in a increases We healthy and improvement trends. percentage line the from the over Rate and year quarter. X%

specialist I'm and repositioning to able at there were As approximately we of we've previously risk the or some $XX of renewals following pleased these bouquet was multiline million shared, third growing in $XX business AXIS it reinsurer, quarter. Re to restructure as the million. share so-called retain expiring to business our that a and

the that our view and brokers see clients franchise. as by it additional value an point, encouraged are proof this our We and reinsurance result illustrating in

speak Indeed, launch on business. the remarks. confidence Monarch reinsurance with reinsurer Monarch Point a our the Re, further recent for Point, collateralized will Pete in of marketplace Re evidences new his Point during Stone the

Accident contributors approximated by business. of lines produced Health, by workers' Now selective X% written let me predominantly Rate of key excluding premiums In further provide reinsurance platforms. of rate premium a line cyber. a Rate This driven In Surety, our our rate on of gross grew XX%. Credit In X% delivered with of the a increased of of was we and cyber XX% improvement. In lines, growth new growth, XX% business. we few professional demonstrates were premium generated business comments with increases growth result X%. lines, increases comp. and X%. increases rate dual The growth & X.X%, for growth our versatility liability, professional we

X/X and particular that know appetite our value our well. brokers clients improved and deep And into and will rates therefore, Finally, and continue our with partners firming our us feel commitment. terms confident conditions professional we and the need renewal feel expect our for will a further understood looking lines. serve service season, proposition Nonetheless, and we that we to improvement is XXXX and ahead casualty in

and that the Let's about enhance now to talk operating shift our doing are we gears model. work

of during shared calls, at and earnings been we're indeed, look As aspects enhancements. fresh prior taking making we a our business, all we've

speed ability internal structure more are initiative new increase key efficiencies a and our market; to straightforward: Work. operating of simplify productivity data to agility leverage You our on and How will about and our enhance gains. The capitalize improving recall course, capabilities; deliver and digital called objectives We and

expenses. in in And In several low quarter progress bringing run reorganization the structures that third taking in our focused made annualized associated These actions the has remain prior advance rate quarters, our launching We expense advances in we the simplifying X Work, resulted have since AXIS organizational months with have How in an expense we $XX XXs. actions of as our ratio reducing Pete to million. our on indicated

examples. few A

functions. In all the restructuring the with priorities both operating the underwriting improving and are claims, models business in and claims for repositioning our our are operations more the We while models efficiency. and of operating operations process closely align to we and

digital and we associated with closely partnering more to submissions work Within the and includes to capabilities, ever and organization speed deepening business operations, streamlining our intake structure the this processes. our brokers automation how add

further all includes into capabilities work underwriting modeling of And while This office. underwriting a look our loss In enhance the integration model and our taking actuarial. new the claims, operations, how further at We've and we within analytics also and even capabilities. organization. enhancing reserving, the our data risk chief strengthening CUO and claims, are enhanced trend this includes further functions to target pricing our actuarial linkage between operating identification

bad to reserving to acknowledge respect to favorable consistently recognizing period, be philosophy In news. quickly good before over our requiring demonstrated reserves, signals appropriate while news an remains

reserving Officer Work, quarter As closely and working Chief How of Pete our discussed processes. reexamine Claims and with Chief our new during as I are our call and Actuary second claims and part We to earnings

this years of part fresh we in emerging and continued the the soft impact we market reviewing that other trends light our assumptions, economic our are and processes, portfolio social along the seen normal our industry. and have the testing with from within inflation, development augmenting seen and especially of As look from

our coinciding independent review. philosophy. annual will complete our work review with respond the reviews additional complete, a We and in with will Once fourth these our we quarter, deep manner internal this quarterly in normal consistent is

made we number addition, This complementary from to our and within both talent announcements. with In growing adding a team of new includes talent.

are I'll left AXIS now Noreen a gratitude a Officer to and as Chief Ventresca Carlton my who Digital at retiring year new to our moment has Wholesale Chief our who the chapter. Linda CEO of express to end as former well Maner to both the take long-time Officer, start People McMullan AXIS

appreciative to of We our to company. for are contributions all significant colleagues their deeply our

I'll this Finally, AXIS our with that customers' that recognized And new opportunities Solutions in directly opportunities hearing our ambition and feedback for customers from a challenges AXIS and elevate customers. into helps tailored directly AXIS which our been as refresh, new today, into to note deliver Indeed, brand turn on brand we've our Elevated, the specialty we called Specialty a reflects aligns products possibility with are their that for campaign solutions a leader businesses. needs. launching

a do to past And mutually opportunity the the excitement for feedback partnerships, days, specialty had more together. multiple customers the business I've XX for shows. attend events Over to our trade offerings is strong product and and industry appreciation heard new and from consistent our our beneficial I've desire

we there's take summary, cycle consistent continuing business and the excellent book to about at management And value right performance a putting to our focused In producing exhibiting level. share. in momentum the excited profitable The to in place are growth per delivering lot ingredients be the results, are is on next positive accelerate, in AXIS. we and to

decisions We investing looks markets, are our in operating talent. The product investing future capabilities and right in at in the AXIS. right the bright specialty and right the making

color financial call on for now Pete results. more over the turn I'll the to

you, Vince, morning, good Thank everyone. and

for AXIS, excellent X strong a of months an the quarter was first rounding year. This out

operating months' highest both are noted, common and Vince company's diluted in As our X the share quarter-to-date history. income per the

of million was During investment XX%. was share the X.X% And operating $XXX million net increased as ROE quarter, available and to of dividends. net shareholders common common income Operating our by an mostly value generated we offset $XX.XX income of income per XX.X%. to generated annualized $XXX $X.XX diluted an ROE losses and share annualized and or by book unrealized

release, losses share As diluted would unrealized for maturities, noted per be net common value fixed quarter adjusted our at book $XX.XX press in on the end. available-for-sale

Moving on consolidated underwriting to key highlights results. in our

produced and company attributable primarily were decrease losses. as the period Hurricane of XX.X This the totaled quarter This was in an or events $XX other Maui XX.X the the quarter, weather-related third to or The the prior losses in million combined a compares points of X.X as During and catastrophe and points wildfires Idalia million weather-related well ratio to improvement $XXX points. XXXX. over by primarily driven pretax year of XX.X%.

prior the variable a the company due compensation activity. driven ratio The year performance loss so of compensation variable-based was to in was reduction quarter this last by strong year year to increase predominantly as in increase compared far in quarter over points consolidated due XX.X%. to taken This base G&A catastrophe an third an X.X

As are reorganization Vince $XX IT severance expenses costs operating noted, assets These from implementing of impairments excluded we resulted income. We How primarily to began and Work related of million in program, our costs. which

expect expenses XXXX. run our benefit rate to these in G&A the of year, approximately per actions million $XX We improve starting by

his achieve ratio. by in to execution a shared XXXX, referenced expense comments, contribute this expense and Vince plan in taken quarter the ratio prior actions committed achieving our I've targeted to As and low to as of our quarters, we're XXs

prior consolidated was million income $XX a basis, the quarter. $XX compared quarter capital fee to Turning to the in in partners. year On million strategic

basis. Re, This quarter to the low strategic on fees onetime adjustment expect with benefit one we for to from the includes a the our in Point quarterly go-forward vehicles. mid-teens partners capital of existing of Separately, a of Monarch launch be

of over segment had the with in of performance a Now improvement let's a once across more which move an strong our Insurance, start which on discuss results XX.X%, very number I'll points and good was year. including detail. combined of ratio with prior a again quarter X.X metrics,

was as increase In property, was of new million related written details decrease went a Health. marine an increase favorable year Vince as & business the quarter. billion, growth much business the meaningful proportion in delegated the I'll liability, just offset in by to with or XX% premium written, rate new adjustments premiums compared primarily premiums the to which few prior and quarter, partially decrease business. gross the changes our That we Accident in gross on in quarterly $XXX $X.X lines to was reiterate of a key timing Notably, differences and Since was had aviation through premiums of well due in where associated a cyber of lines points.

lack reduction in lines decreased as professional due to U.S. business a addition, liability premiums public reduction to as In well a due D&O of transactional in opportunities.

third changes lines, in point have a quarter property mix just in has which the ratio, in associated year low as with in current decrease well and The relatively as driven a X mainly business accident weather lines, higher ratio relatively by increase professional which decreased loss the loss a ratio. ex-cat loss over by

Additionally, had loss our lines improved year-over-year. property experience

property, by In market driven experience lines. driven the liability, year significant development the by well for offset as was couple the and that well continued on negative quarter. development an cyber excess prior by from liability negative partially a the as of as claim property years. was In settlement settled a was was claims from casualty soft Insurance for unfavorably. development lines and aviation development as lines negative development Favorable positive marine adverse

commission; and quota treaty of less and in we've and in renewals. ceding ratio first, are business of This by has writing we ceding in driven The commissions. professional by property related our to lines impact starting share the as increased the associated property ceding impact points XXXX mix primarily a factors: to business changes was lower earn second, business commissions lower a with X acquisition decrease X.X cost more been

premiums underwriting offset by largely decreased performance-related an ratio in driven by the earned net increase an points by The in quarter increase G&A expense compensation X.X related third costs. in

Reinsurance let's combined a the move to an a Reinsurance improvement over had is quarter, XX.X%, prior year. strong which Now segment the segment. of of XX.X including ratio points

encouraged at consistent achieved are year-to-date. to that performance the see We continued has the team

line in gross and written driven we increased an business and quarter, the new gross lines by driven XX% was In written for remainder and mainly is prior or we'd our compared our business sizes premiums excellent lines of had premiums result, and premiums less an With quarter. expect of cyber to which in gross $XXX surety of third This This million was million, annualized the premiums. this team. result written to of in principally liability $XX new there and by year. was the the quarter the credit XX% increase be as reinsurance the that professional new year than

Our net impacted by the written transaction. Monarch premiums were

this me spend a let moment on So transaction.

Vince capacity with announced, client reinsurance a noted, quarter X, with their benefits, a of partner an previously agreement and retrocede our Point AXIS date and with our January to including meet we entered number for business to reinsurance share team distribution effective this of into XXXX. needs. as transaction provides expanding This retrocession As quota Re Monarch

income: it the can provides we growth flexibility the of I'll specialist recognition underwriting strength to world-class We And value by specialty reinsurance businesses. also us income, accelerate of our streams a our that insurance income. proposition build of continue and is to add that the investment capital out with fee investment our utilize X of income further manager. transaction lastly, a

million $XXX of premiums to year-to-date ceded we and X, January Monarch. effective was transaction The

in and reporting is piece million. The two earned net pieces: is a prospective end but third ceded written. With approved of at the the $XXX the million. in and of in yet sheet, a net piece remaining income expense recoverable. The decrease business This statement net underwriting expenses This booked premiums quarter's of retroactive of the in quarter, income premium, impact the the acquisition is transaction reinsurance and prospective into which written a income and piece. The balance the the split reported million reported reinsurance of previously unwinding group piece, this statement and written $XXX represents and as loss losses not drove our quarterly totals year-to-date expense reflected was premiums amount increase in the the being on results. retroactive an loss onetime represents was net costs quarter as $X

to back accident turning the Now performing the is loss in quarter, our we cat point. expectations. the to results. by year XX.X total current saw reinsurance loss ratio drop The down X In points, line ratio with

are piece minimized weather ratio points volatility from increased well as described Monarch current loss that, catastrophe accident The points the as continued and just have year ratio. that the I expected, by impact we've written loss season. loss of We X mix surety lower we've the impact of due as of more pleased retroactive to ex-cat positive two lines. the transaction as ex-cat largely the peak X.X Adjusting would year-over-year through has exit ratio been mix business, which items, relatively for the to due catastrophe from down property these a credit and impact

strengthening in negative our lines and, XXXX across $X development positive offset by million as and and to accident to the years. again, Reinsurance favorable credit PYD well liability as XXXX primarily our our in through was A&H primarily reserve lines partially due was professional This lines. due surety development

The by This and in mainly and was acquisition by improved lines related X.X primarily loss A&H credit adjustments surety performance driven loss features increased sensitive to attributable to cost lines. points. ratio

in lines X.X our This from by expense driven with G&A costs the business. underwriting-related a property The point. decrease was associated cat personnel of mainly and decreased exit by ratio

income to $XXX was and above third from Moving up as is the the million investment fixed year on was XXXX. at the X.X%, from yield the X.X% the million income to quarter Net duration investment from to of $XXX third last over $XX was yield $XX has yield. net X.X% years XX% In the investment quarter investments. was in points months. The the market XX million. income XXX of X compared portfolio the the portfolio maturities This increased for million last basis end quarter on book of quarter,

cash the our duration current enter quarter meaningful to fourth flow, fixed expect investment that, ahead we continue As the portfolio. to growth interest income we X-year expectation is from look rate maturity with strong portfolio XXXX, our environment, in and our and operational

brings Regarding capital our management. still return returned million capital year-to-date repurchase to million. our shareholders We $XXX remaining have $XX In through the million share which $XXX we in approximately authorization. to quarter, common dividends, total

our opportunities substantial lines of our deploying the to capital priority chosen specialty markets, in in profitable business. remains growth Given top support our

grow value. we an optimistic was In one consistent, building summary, advanced book on priorities which are committed for echo Vince, excellent quarter AXIS, results to in and progress to strategic the for we this our To deliver our are future. profitable and

back it turn I'll to that, Miranda. With

We're ready [Operator you. Pete. you, question-and-answer Thank now Instructions] session. to to over begin back Chuck, the

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

a little My goes capital to you it? capital partnership. from back I Monarch first you say or deploy to try to heard quantify growth? that I you the you're And back talk get about looking think that into question Can bit relief the

I both on insurance bit to that. of ceded that will more also and Yaron, forward think we to look Pete. I take to bring consistent XXXX, reinsurance, little be look that the growth. between I'll between looking actually capital back are a into we segments. as this percent basis, deploy this when is a Yes, our go-forward

So of. we're that's as what thinking thinking forward, I'm as we're thinking forward,

say as But factors driven are overall, as well premiums. I'd off those net premiums reserves capital with regard our net to by very much capital,

at I do deployed, you be to you on it. you look deal Given of can the numbers have actually not if will think analysis. a But talk back able of given specific that just this. may released typically We about the some into we've premium capital that like that's we premiums, think kind being for the you I

and expense the insurance loss we of to segment. certainly bunch then here I I And the on parts focusing guess Okay. ratio. like there, on second moving improving for Clearly, question, ratio focus maybe I'd potential I it. professional there the trends the the hear ratio coming room believe year rate as a for and in for whole? appreciate my accident can. portfolio if other improvement? loss lines under liability generate you such as that you can continue above Or pressure, a further some is loss With do to words, cyber

premium classes that Yaron, Look, strong X been pressure, of being in last adequacy realize within the businesses under position. of appreciate quarters keeping course, rate eye a And but each we're over trend, portfolios. Vince. to built careful it's those the of highlighting types many compounded a and as please fairly these underwrite business. respect to we've rate couple as the on prior has years of cyber, And sizes different we of

midsize I it watchful the commenting we've D&O, as carefully to cyber we've the the said call we're business portfolio And and would a as pressure, public shrunk say we're keeping that small previously, component. by we're examining And well. so we're evidenced that watching reshaping on in observing eye. in we this as

come Next with Elyse will question Wells Greenspan Fargo. from

My first a clarification. maybe question is

that's rates guys think up X%, said I you and So loss trend. are insurance above

is was I but might around I misremembering where X% And trend? you trend loss the So have last said quarter, thought be numbers. guys loss

quarter where I was just it trend us tell the is last where you If and to guess X% rate. could now relative loss

for digits, overall about Pete. looking mid- obviously about. think think lot product we're about mix loss When it. trend Yes. Elyse, we When depending talking high in has this is the I'd portfolio, loss which upon it X% insurance we of to single product right the be to at that the line say a we're now, is trends, you

in to so distribution in feel it by And X% is it product loss the various covering we at we different our is portfolio the look and that relation when of lines. trend, the whole,

this Is you And guys charges the to the it the just from benefit is then quarters, take called charges in that a in future this plan you quarter? quarter. charge future out additional will Or quarters? see took we there a restructuring Okay.

looking Vince. expect think of to I it's Work, body. the to work number we're parts of prepared know, Through examinations we're the process continued you at we Elyse, We undertaking, have that don't of body How of but as all say restructuring charges. a

the you count is think continued I improving as what we've the at effort efficiency organization signaling calls. been of prior just the should on over

reinsurance little industry? some on And can about heard the squeeze a pretty any in What just that you I potential bit one in and line, know Do casualty economic on just you momentum if the market. casualty? from forward touched looking commentary X/X/XX. being just issues building positive reserving across social inflation the I more. We've see ramifications

reinsurance continued and we expect see the on lower ceding We've the certainly We positive, reported evidenced we deploy say growth to commission changes our opportunity rate cede in capital and continued commissions. in select business to our to a occur targeted And as basis. rate quarter. reasonably the in is which

Goldman with Scott Alex Sachs. from come will question next The

think opportunity. wanted reinsurance re it how it your your businesses. broadly First, of mentioned casualty X pricing guess, one on peers of I to commissions. grow? And place affects on you side, about then side try the could guess to think the Do reinsurance for was business, casualty ceding casualty you to one ask opportunity I lower insurance an an I become the it I you and that actually is the a mentioned as

if firm at at next look we there, think is underlying like when year? into heading need that we ratios so all pricing things do getting about to And more loss

I over top. So Alex, Vince, this is will come the Pete think and

the question. part Let of second me take the

we has of And our third our foreign predominantly that I degree business side But out more you in to strong X.X% business ] ability business a percent of opportunistic. particularly, appetite grew is for growth. citing of our has question by rate [ is And rate the in currency division, some that it were of I be if course, you wholesale mind, AXIS, in of substantial quarter, XX%. XX-odd that regard is freedom casualty and meeting of for think that raised. of at in a channel in we is an of business, with an the distribution allowance some of evidenced AXIS wholesale our new production we the look that think some framework within to was think insurance which over needs that with the of the the an underwritten liability an strong bear example improvement is what business division division. And

And point. proof so one just that's

reinsurance around expectation going we're On cedents said a clear side, we and focused, pricing, that appetite continue with we're the and line clear XXXX and we our are very have throughout approaching bottom that. a to

rates the liability, the growth to most classes And our X.X-odd-percent third may focus with on in product We're the And we substantial that within yield that bottom execute so but liability strategy. continue we quarter in achieved reinsurance. will in the pleased in we'll we our not rate class. line

Yes.

I business think, price primary now given increases our hearing of cost as add the for Alex, what they increasing also third the now add be teams as are markets they're change about thinking that, seeing 'XX, top a reinsurance pricing rate, we're on now in But what the to I that acquisition thinking given mix primary the probably seen, to at insurance markets, run that would get. talking we're about that we're need about considering and this I'd are would Vince, we've consistent the quarter. in

primary if expectation respond reinsurance we've business markets see So to driving through costs talked year. continue as are side this this and the to up, months to increases first that price the pricing go look we My expectation, I phenomenon going is, see the to on property that about of XXXX. think we of and our X

it. That's very all helpful. Got

you and concerns be between the confidence this some through Second casualty packaged that to to was selection you is mean give one negotiations there associated that that an with can packaged be the stuff at point? that to casualty far and with point adverse that are there's business headwind associated can process going a more avoid I've you was I on selection? question I that anything of remains. What in that And that? adverse doing expressed is not property could that give is, have how can we within are just just reinsurance, that around business, re update that the there

then Alex, Vince, this all it to is of over Pete. through I'll that but substantially we're I'll start pass business. and

at is millions left look there of of I business. year, quarter fourth that single-digit as this So the low

to with policies. particular what's did what this so group start see we and far look of can year So we happened that to actually

Overall, our because of that we the business to had the as looking the a really good and of some there terms at policies, focus able on true way well were is that as was keep the to only underwriting the limits really deployed, rate, company. conditions, actually underlying client split

to be we not choose and capacity whether So play how that treaty wanted actually put got proactively wanted we on much out. we wanted or to where and to to we

what's each So about that on client essentially. team of one say our those think I brand-new a as adverse reinsurance selection when remaining, approached would you was by

of say And so we that. impact ask minimize of because I'd to any us. with think comments it And I way the renew would top had I that on particular to add Vince

in is risk say and would Pete. Alex, confidence that around what terms I our you, feel limits us process gives underwriting that selection, confidence. we Thank the

is pricing included. course, Of

the the behalf actuaries, real our our prior the by our our selections our that confidence us providing taken gives underwriting of consistency complemented company strategy claims to value with along talked making office that involving approach, And about we're I of underwriting cedents. that CUO right leadership and integrated so and pricing in we've think risk together, quarters, on

Shanker The Josh next Bank come question will of from with America.

underwriting transfer two, to of even going of multiyear are closely clients' the yours, And partner in Monarch your it's risk being intention a, though a how when At and capital? that to is the that elsewhere about is too ceding a the strategy business third-party mischaracterizing think knowing third-party, reliant a risk this that a as premium on fronting when that business desire you your not does a business taking the you, of you're to risk? sheet basis, balance monitored with running reinsure you affect that is the there reinsurer through of as things, lot you're a a on that

this Vince. Josh, is

that take that and we the Monarch, capacity underwriters our had portfolio case On the relationship are will have the our now. bets. risk including it's And the that as selections some AXIS question, is in Pete second and the ILS making of and, first part time will your And inside right agreements, for that part, claims the financial control. comes well, on we make our cedents is of these course, on count by our through trust as these company And extension, decision of from the transactions. behalf responsibility reinsurance

reiterate did with Josh, catastrophe. that involved when of reinsurance on liabilities ILS would today, in capacity world, years. were said, we still just reinsurance vehicles we for We long-tail I in number book. we But a quite multiple we've it property work and have And our on Yes. used what the Vince

put to, a quota-share have, is it interests to upon we paper bunch still our third-party give treaty, before share AXIS using it's based and preferences to a to our the it's anything that much Because again, the risk balance quota where a reinsurer third-party. capital we it managing are aligned. it's ceding third-parties So from to we're to since keeping cedents sheet our our a we as want very the partners. us capital And we're of it then

so through aligned interests the all are transaction. And entire our

good So we feel about that.

with funded regard These are Josh. them. with transactions, to And we're close third-party our vehicles,

sure that the there reserves required. to at it's So place long-term that to reserves, understand the in we will be look appropriate liabilities, want have the because we make and are contracts we are we sure these when make funding

collateral agreements. what we our with So especially there, we're with have comfortable

know The bit more in to of last want really twist. capital. little question, I second are of lines with bigger is not those capital, discount at repurchase of up really, How deep freeing strategy? trading more some peer now? share but right especially your really isn't up Monarch the asked And invest I a why is write of use lot a your my a transaction, with conference I your the valuation. you have a insurance, same soft. And question I call part it's own a and mean that capital to on stock a business the lot The freeing of best

Pete. that. our insurance into want of going cat wind of through. handle Josh, I'll the have get we still third even this One, things there's business. a season, end I'd it's through quarter, obviously, say the to we though now couple is exposure to

finalize. So not for we're know considered a waiting given go-forward. could the end of that we was, aware be S&P But We capital of year. that our or of that statement that. fair We'll capital debt what you'd there's amount on know know the and are in stack senior to at formula a their more still could that about the initial formula

clarity as forward. want of go we that we So

given And in financial have still then lastly, capital, we the negative high we have leverage AOCI our ratio. a

It the at As of all quarter XX.X%. fact, ended started quarter at XX.X% the a at matter and quarter. the it didn't it move in

we of you if ratio about like down. economic on we good sheet, that did feel our you would markets. across would then was financial So the there's to I right, And softness doing really the financial an I But come balance see lastly, say our it are and basis. all economics say

while some best a in we've of insurance characterize opportunities. markets I'd our the seen it guess I the On seeing still insurance we're side, as

ask Vince to add And that. with that, on to I'd

we're ample of investments and inland North growth, in characterized Peter, of well, for there's continued our evidencing with our Josh. ocean current appointment our you, of view situation and Thank the today's some and call I cargo in the you opportunity that think America. and market

question next from The Meyer come will Shields with KBW.

and more years liability COVID accident facing an for to we price that look how lines, into elevated the and we're all maybe just recent confident developing much when be is to not is accident adequate? additional question. of But needs be years margin weird are that because baked disruption, are at you This AXIS Great. pricing adversely, social older and inflation and

that. I'll is this Pete. take Meyer, So

we've based forward we sort current our negative pricing studies does what the our to view As we that we are, today, where, that go. we upon And to see those we do take emerging prudent look to we inflation look at do it on-level of okay, the year. the everything all say, given to able development, about pricing. prudent we the we take believe social that put tell take a given where it, have in seen and view been we've prior years mentioned information, think in everything you we as that today's we And us do in as where just then marketplace, going is

today. our it's believe very been As business pricing forward, as an prudent we think growing the still we've you been uncertain about and but we in classes going exactly environment know, liability we've where

right, I Pete. think that's

are I a emergence, indications look liability loss reserves accident out? don't talking but guess I the as I over so and last there years it's long-tail playing casualty but how, any years, question, Just know, early know slow, or lines, of recent we're related X we are at

Meyer. To long-tail your point, are they liabilities,

So to years something years. up seeing where, I like we're in than older offset would say doing or rather rather seeing claim anything that, is we're that prudence claim out just do more the recent what accident like coming related push be the it. we'd anything the And for tends of to a we're the reserve spiky more if

The level, seen where limits, see a other the because primary, book, and negative it's there quicker 'XX thing 'XX bit I very program you in low in some little we that would our mostly development actually say is, years. have small claims have mentioned as we

our prudent about being thoughts on 'XX. XXXX So very again, we're and even

as right? limit different the profile With well,

Absolutely. Yes.

Appetite in certainly, lines a and certain of different limit. those

years So the profile latter of the business in is... those

yes. is It changed,

question Meredith will Brian next come The with UBS. from

a of them Just you. couple here for

fourth look you're about as about, some curious, insight looking I can know in what quarter into you're First one, of changes you're what anticipating doing, talked at. just Maybe you give changes process upfront. Vince, I'm mentioned last that reserving kind some of process. thinking you of you any the quarter the you're into kind that you it least

thank Brian, you.

bring fourth the confident we'll consistent process articulated remarks. in are with my So with well underway. quarter, We're a remarks done it not opening the my what opening that in we I we that in is conclusion process and that outlined to

you. Got

it, a question, in seeing second then are from a book about trend get to And worse? inflation casualty well? and talk the, seeing lot you of maybe there you're Okay. tort talk can about you continue that little Or just perspective?. what loss call acceleration things Been in environment. as some There's what Does seeing your a Are it going on. you bit

combination a vigilant eye an evidence, result quarters, certainly, in of certainly our is inflation. yes, Certainly, business or the certainly one, we toward the been it. as as to of observant a because liability severity. generally spoken an there increase. very pandemic, example of social and to have factors, it's a we've increased class programs inflation And has Pete, whether prior that is there And of

And so vigilant a have we eye.

loss our our We expected view close coordinated have and trend. of mix, in risk terms our picks, of a certainly,

reported that generally think And a focus see you'll way. that watching around you've prudent think I continued we're in we continued social underwriting And us. heard inflation. there's vigilance from liability as certainly elsewhere, so taken it there's And together, and

allocation? portfolio, Great. the cause And here, one investment it transaction, I it duration to on on Pete, other quick from one, Monarch just thoughts your in any shortens up changes reserves, probably the if with could any is investment going or changes that sneak

overall. duration us XX% that And And at allocation now, I now, it assets. neutral. X now, stay I expect think assets keeping which see right now. we our the don't have about us risk in of I Right Brian. we're around is end where still right No, of short to right changing investment for the would is years,

Vince ahead, sir. concludes turn for would This Tizzio, the remarks. question-and-answer our Please over Mr. to session. go I and closing any like to CEO, back President conference

your Thank time you. Thank today. you for

tailored to our book partners. deliver there objective share. strong and excellence is drive our and consistent, solutions and through profitable As and future, underwriting specialty by We'll per to returns in we get customers exhibiting value clear: the management providing value shareholders cycle look our to to growth

with far results the to moment to record doing what they're a us. of to has choose tremendous drive appreciation great who their take thus also been our work to for year team I'll trust to for AXIS our a my and that express place customers

to much momentum. specialty a have to as on on remains AXIS elevate achieve we're building order In our know our further that leader, positive ambition we and the focused humility work underwriting to ahead,

where our to we'll as and the future the have how upside that Investor the in creation of we as XXXX about a forward the value updates in success company's look during initiatives, half measuring progress on well our see are I Day ahead. strategic providing calls first we meaningful discussion

Thank today. once this completes time our again you Operator, call. your for

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

You now disconnect. may