AXIS Capital Holdings Limited (AXS) 1 Feb 242023 Q4 Earnings call transcript

Hello, and welcome to the Fourth Quarter 2023 AXIS Capital Earnings Call and Webcast. [Operator Instructions]

I would now like to hand the call to Cliff Gallant, Investor Relations. Please go ahead.

Thank you. XXXX. welcome of conference fourth AXIS year December and the to quarter everyone, ended results financial Capital XX, morning, to call our discuss and Good for the I'm Cliff Relations Gallant, at Investor AXIS.

financial and release press earnings supplement issued last were night. Our

the also please website We audio website. on available an as If aside section today's for axiscapital.com. Information our visit an like of Investor you'd call, set hour copies, our at which is webcast

Day, which we York to Investor Before I'd attend of morning invite like City. New being all you is May begin, to in the held our XX

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

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

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

this discussed call. release in be In are may financial earnings during conference and addition, financial non-GAAP measures press our Reconciliations supplement. included

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

ambition. a year-end that transformative underwriting as In to our and leader thank to elevate this specialty you AXIS Thank we've steps joining recent and our you, XXXX spoken company. for morning, for towards important signal our Cliff. was aspiration us. taken results year a calls, we've Good

year our and model a objectives. a strengthened underwriting at further portfolio our Looking targeted resilient financial operating to advanced whole, diversified meet strategy, we as and the developed our

the for of the that headline last reserve some strengthening announced discuss year, numbers we the inclusive which Let's of are week.

average million, return on $XXX equity In and XXXX, income on we equity generated X.X% of of return common of XX%. operating operating

common strengthening, Excluding equity return the and respectively. were on operating on and XX.X% equity XX.X%, reserving return our average

in capital the in premium accident including record our our highlight encouraging. on financial book X-point $X.X execute and improvement. our relentlessly results, and year-over-year company's sheet than at our several are X highest like strategy. I'd income million. produced combined more to areas, share our billion, elements. a balance strength core net to a which growth briefly year-over-year position To These current was Further, diluted performance XX% very history production, delivered and ratio continue we achieved in We was will $XXX of meet of value per XX.X%, with we our deliver investment commitments, year and our combined the against ambition our

channels to First, sources in we solutions making a markets our and continue markets earnings deliver its brings capital tailored revenue. choices tapping and underwriter that of distribution specialty allocate to attractive to is AXIS decisive where new while to compete, are targeted operate consistent generation. on

market environment, And segments. public We particularly class basis, several on past over as our excluding XXXX, insurance and a that's written. we've premiums production calendar as every insurance continue in business XX.X% XX.X%. Insurance lean our is in well favorable positioned record of been quarters, of reducing, current book quarter our combined given the a up the discussed XX% into XX% accident makes gross which year We professional to to close pricing In of year-end D&O. ratio premiums to generated up the a year we this have lines. conditions remain were capitalize that year-over-year, on growing

of years the is U.S. the accident X AXIS double-digit growth XX year of combined a instance, in in players leading ratio marketplace, yielding XXXX. one while For consecutive wholesale current contributing

writing as profitable opportunities, resilience Within the the we global Also, America, marine further new and including example, We're transition transitions of energy, space opportunity through underwrite made transaction creation the with weeks, the past year, -- in see adjacent energy risks. We're quoting we've ever previously energy in wholesale played. year-over-year. we've in growth smart they capitalizing middle inland leader the XX% we generating to strides for part where within on in renewable market unit, a to growth markets first Lloyd's world of what ourselves were we an lower our unit. North By the acting Indeed, have syndicate not launched cleaner agility actively committed latter XXXX, and and scaling these growth to forms. dedicated exclusively business.

recognized and we investments our we'll We're platform were to specialty includes North London, make and Lloyd's a syndicate. as cargo In continue America. leader outperforming and global top date and product U.S. by our XX construction, Marine more to to This introduce products to launches. leveraging launching London

profitability business, to respect reinsurance delivering a volatility. Re focused As targeted we more effectively reshaped reduced on have and consistent reinsurer AXIS specialist as our

produced year-over-year. XX%, year X-point In current a accident XXXX, improvement we a combined of ratio

was X/X is renewals, the at XX% for where the sustained of year business up for momentum renewal. Our our

in specialist During our low we the X/Xs, premium lines. produced targeted growth double-digit adequate

underwriting, capabilities in investing and in operations. building are we Second, claims best-in-class

clear progress a across In XXXX, of made fronts. we number

better XXXX year which XXX was accident than for is accident points basis ratio XXXX. loss year Our XX.X%,

underwriting talent London. attracted efficiencies. to in includes sets, By our lines. organization, this respect As associates align repositioned in expansion we've and our to with business priorities the strong deepened operations, to underwriting team. within our and bench, example, to while the claims models have we liability America additions people, our and claims more number our in operating North improving particularly of closely And skill both complement In and teammates our existing we've both of

automation submission technology we're platform, in analytic a to increase growing insights and them and we're Claims, to and driving risk enhance bring transactional our speed operations, capabilities to priority our to digital help of informed with In make we're Within continuing to underwriters our of data our efficiency. continued selection. investing intake,

company's Artificial power its to addition, in Intelligence augment area of that focus harnessing we're a our overall In is effectiveness. an investing with

we we improving Third, and operate company. efficient integrated to become are more a how

Our We core this of program How at Work effort. the is

We empower are ensuring optimize profitable consistent improvements are our focused colleagues making enhancing model delivered. improving investments more and on operating effectiveness organizational quality, and efficiency, growth that while their implementing service accelerating returns

the focused consistent XXs ratio be combined objectives. share value our with improving will results expectation progress book contemplated Ultimately, achieving ratio are Our and a will financial in XXs, it and ROE double-digit expense on an that per underwriting is evident low our associates and by sustained engaged collectively deliver that our expense low growth. AXIS ratio

believe Finally, operating impressions are and entered the to year. few year take generally for favorable on just a words confidence of and the we with momentum, well positioned we advantage markets. XXXX We

pursuit ambitions. we're excited suite continue As enable in that's I've the and How strategic the investments stakeholders our a brokers, advancement focused in operating bringing and noted, were our team are of our we underway, our have value a by of to and specialty supported and investments and united our sum, In our objectives. of people, our program our to we're capabilities number progressing customers products, of that to Work We

and year our who fourth I'll results. detail now quarter pass XXXX floor the will full to Pete,

Vince, and morning, Thank you, everyone. good

$XX.XX income heard AXIS million of year-end, Inclusive week, common performance the operating strong growth our at had book in the per share net unrealized the value a to you prior XXXX. actions, very drove As together year $X.XX gains share, per Vince XX.X% from last over our was and reserve diluted which or saw year. for prerelease in of diluted $XXX with

include year ratio a similar highlights is key consolidated ex-cat weather year underwriting, the current from to basis, accident of our on year. prior In the and XX.X% loss

We points. reinsurance, our in-depth another XXXX higher estimates were totaled $XXX reserve loss the year billion. ranging lines. review XXXX learnings billion natural for $XXX the and in $XX weather-related industry, that active XXXX to from was losses, our pretax million over Importantly, trends and recognize would recent annual highlight with or of picks with net cat liability cat from loss X.X consistent did

been was over the lowest they've XX AXIS, at in share these years. our industry of Importantly, market losses

performance Our G&A were ratio was to ratio X-point expense consolidated year. we consolidated consistent in acquisition XXXX X- prior a excellent, load range. to would natural be XX.X% and the in XX.X% and expect cost catastrophe was of XXXX the typical to

As in XXXX. on expenses see as how execute we we that Vince we lower said, will work, we're confident

as consolidated on very from vehicle, is And basis, a we strategic was to similar and in down, mix and launched property vehicles $XX XXXX, fee new catastrophe capital saw Re. our year. the a partners Point in a Monarch income million change we This but with wound what for

on be capital We fees the to expect go-forward from in strategic a quarterly basis. low to mid-teens partners

quarter. Insurance the the year. $X.X written Gross the increase results segment billion our discuss year, strong and on $X.X move XX% underlying for prior fourth in had quarter detail. a let's to compared year-end were of for more billion and an Now premiums

Reviewing gross the written X%. quarter, grew we by premiums

was of to growth our professional across public we the cautious Our exception all continue of be with where business D&O. lines, lines on

for grew the to have our Overall, we're XX% Excluding Professional, end purposeful we attractive. and we year the in at and the portfolio markets. is in the and where year. quarter lines of want we growing XX% chosen The mix

our rate In of the adequate represented fourth are well business quarter, portfolio. excess highly short-tail these in And XX% of achieving and our lines still lines price trend.

in which increases, where saw these a trends. in and which approximately year quarter equal remain rate rate least our a double-digit public we a D&O, experience with saw half in the and quarter. cut market the ago have underlying risk property to of lines, discipline at double-digit political the price and in which increases in loss of mid-single-digit continue achieving cost XX% both We decreases book A&H, rate cautious in our lines, long-tail credit and from XX% lines, In again on we especially

we XX.X% emphasize to need quarter this to for with continue in achieved excess line order in rate in the rates pace lines, with liability trends. rate and loss up of in increases keep trend we strong In the

increases reserve remains price market development Cyber continue we market. net fourth in X.X of X.X previous XXXX. The the after and slightly book has priced, insurance And ratio Cyber, adverse minus years. were second large continued XXXX deemphasize points. rate the the including have was commercial change to while and cat enter XXXX of the of client well in in adequacy Lastly, points weather-related in see the losses. X.X% we the and few down Overall, strong at rates better as to small for In XX.X%, combined significant leveled the half opportunities quarter, off insurance

it quarter, XXX.X%, of the reserve the XX.X For was points including strengthening.

The current which was to year. and loss year accident the XX.X%, prior full XX% compares weather ratio year ex-cat in

moving we've have prior on pieces here. few we calls, As a discussed

the loss recognized We lines. trends higher have in liability

ratio. loss business a offsetting and attritional property favor in this, have shorter marine, of mix change a we which And carry like lines in tail somewhat lower

the was quarter the ratio accident although with for the a we've XXXX. strong very where For of insurance year of in quarter, the been from loss rest XX.X% line XXXX XX%, fourth up in

ratio cost prior during renewed quarter, on XXXX. ceding XX.X% the the acquisition up up commissions The slightly from year's lower prior the fourth treaties our quota increase for driven the year, XX.X% quarter share by XX.X%. of was the is that The of X point in Similarly, ratio principally of from year.

down The year, XX.X% earned This the quarter underwriting improvement drove the related G&A increased premiums. net by the XXXX, from year-ago expense XX.X% also ratio to XX.X% in driven in was fourth for XX.X% quarter. from

XX% segment. the under for of I'll GWP written. gross a much of the and the year lower that fourth down largely is gross fourth was quarter quarter premium XXXX. quarter, segment's benefits from to but let's to renewals timing premiums full the everyone due the on quarter move adjustments Reinsurance with smallest the year few written substantially Reinsurance, in for the Now associated prior quarter representing premiums remind for

XXXX, portfolio we're billion Reinsurance a Reinsurance portfolio. lines gross above accomplished. now priced XXXX, of In proud basis, a of the we that reinsurance favorable that work Specialty repositioned attractively pricing At trend business. of business. On In we've is year-end, is our saw we most $X.X in

includes XX.X year ratio the XX.X ratio points accident was in ex-cat year And loss includes strengthening. reserve of XX.X%, prior which the combined XXX.X%, points reserve XXX.X%, net XXXX XX.X% current quarter, strengthening. which the The was weather for up Reinsurance from for year. of was The

volatile off, offset loss higher ran ratio. the which a consistent As catastrophe transitioned has we year to a premiums ratio in net loss a with current profitable book, lower more book indicated, property a has resulted less as the catastrophe significant by in attritional accident and drop ratio, and and the loss

current the accident to XX.X% quarter, the and XX.X% ratio weather loss year For year a ago. compared ex-cat was

the reflecting the the largely as from On a mix G&A XX.X% quarter. year ratio have quarter, more the was year expenses, expense acquisition decrease organization. in expense the efficient in XX.X% on full business XX.X% ratio prior Similarly, in and to ratio for was the XX.X%, created point we ratio total compared the change down X.X

great to Moving investment year on investments. We had net a for income.

million of a we alternatives, of result the the which of a for $XXX class. quarter year, the produced $XXX that on substantially by note quarter timing was million from net from strong and asset net alternatives, income. to consider had of very For investment $XX up I would that not good would particularly million prior fourth to for Due income million I $XXX income, rate fixed driven be quarter year. this of investment normal run gains returns

yield at was the X.X%, XXXX, strong cash money and overall is look average positive we flow. generate new and outlook to continue X.X% we securities on As as is the our yield income fixed year-end, to

position underwriting, and solid actions Our management from performance year, investment capital taken. the improved during has strengthened

As $XXX at confidence XXXX. Further, forecast common we shareholders over year-end to credit million operating entities. will recently under extreme you've brings Holdings their period through the we which Their reaffirmed our of year-to-date reaffirmed returned in redundant issuer $XX to the quarter, we from total model stress capital XXXX at the highlights credit level And took committee redundant credit They to return report our AXIS new their seen, capital also credit S&P had the financial all watch, dividends, that remain fact XXXX. its ratings to forecast us that strength Capital Limited rating. negative through remove million. and approximately they

our know, in buyback December. you a million Board authorized $XXX share As

operating see strong substantial We creation specialty the Given markets, opportunities in infrastructure. to we in and for invest people, our our value continue equally products ahead our shareholders.

currently market are shares. we repurchasing the So in

Transition Tax to I Act referred address as the Adjustment. the provision Bermuda's also Economic of Income to wanted Government and an

assessment rules. our strategic evaluate months. In expect to to quarter coming we and of value. to summary, year, this implementation make growth continued the in provided clarifications advance the continue in we We given an the XX, January to And on the throughout priority book the deliver

That our are and on We building optimistic committed the for our quarter results. are summarizes fourth progress to future.

back turn that, with to it And I'll Cliff.

Thank we're questions. you. Operator, ready to take

comes question of first Shanker Josh Today's with Instructions] [Operator from Bank America.

charges other busy probably You've but couple last aftermarket have reported companies XX in you the in been a insurance the yesterday. hours, of may seen reserve that

a reserve through assumptions XXXX that your lot XX-Q, to things wondering their be said talk AXIS what I'm from a affected inflation and years XXXX. of does. direct And One all when inflation a increasing they them pre-COVID who you years they both took In changed? tends post-COVID? that of about that competitor in the accident were of kind charge, charge around assumption how

mean look would all this as back. to not only Pete. of go for we assumptions in our back severity they're development a longer inflation what Josh, believe be all we digits. moved again, where actually trends, that. inflation underlying. single we which is adjusted our high to at to what we We'll We up look patterns those And we've would I be, trends encompass And for to taking see social probably that, see going as we

is And pick higher 'XX it was charge post so than reserve a now year the ago?

slightly. Just

book casualty As our business. to last mentioned our so in insurance. that's of current It year. now business. That affecting It was XXXX liability reserves is program Josh, books and primary we increase specific business I X accident not program did was the in runoff, week, some

where for primary is the casualty, for 'XX. it equal where 'XX set set was that to On was

strong. believe we So are very both picks

point? Have I Or And COVID some for guess, reserves. completely released up COVID-related at there COVID is reserves been where still of era, type in those you stand do claims? this terms

still reserves it's impact especially have where from No, the our coming up of theater. longer just especially the claims, COVID we our European to taking cedents, for some COVID-type in reinsurance in of understand segment, actually some

now. all XX% about we reserves out estimate are down And up, from estimates. On paid say, That's the mostly low. I'd paid. that's at insurance by our original original the from pretty XX% put We're side, to that

in, social we severity And the inflation, million improvement right and the in impact the the reserves one sneak And if can in take can into inflationary the gross frequency getting whatnot? for $XXX from parts, and break I and increases the numbers? around X more incidents assumptions

total all we like at with in did break of the that into Josh, not million look $XXX those the and assumptions, kind pieces that. we down micro

provide our reserves, be those trend to in to to But reserves. say, development now, I So numbers in increased have patterns would wouldn't you. I able the our extended and we've I right say, hand actually we've overall, the at

question next Jefferies. is from The with Yaron Kinar

start to ratio loss loss insurance with the want just question I the on ratio. a with underlying

that I But and this quarter, of quarter XX% lower the, any and that bit shift there it one-off some had a when I'd rate better you understand seems talking like to just are items. I up quarter one-offs understand given better I'd still being just there, So little third towards it year loss you're year. loss favorable the you mix attritional crept to at still second the posted this say, look fact like the ago, a if about relative the property ratio trend lines? than

is that going either in insurance it by forward. [ I get in we for will loss way. our ratio, the our the quarter one-off right, would actually you, think loss just I lost, Yes. a for quarter. just about insurance XXs ratio would really range not ] Yes, makes noise even up year anything was in low particularly for I some be and tell was still meat overall, being pretty the is in consistent X.X There It point for that was numbers the Yaron, entire XX.X% this underlying the quarter XX% quarter. year the Pete. That XXXX. call

And X been X Pete, on? it's you're over in the as this last quarters, vicinity or well

look vicinity. Yes. mix only the loss mix picks been Yes. would When and that property. marine into last change be, really The I in quarters, it's the offset in increased by shift liability XXXX, over X again,

to just clearing we're just maybe and with So loss, we this up trend I sure follow-up saying you're we're want make the took the the then rate ultimately thinking still some a that. trend but on I'm because about achieving. that correctly

We direction in the mix loss lower more our attritional are moving of ratios.

coming improve the not the expect why ratio years a that? or loss conservatism? would matter just Is So of for you that year it with

it, backwards we've loss your -- to at has ratio. So about 'XX I more I'd about has a attritional short think lower portfolio looking as X by the own our points and say, towards that tail lines, 'XX, got about moved

what loss actually the and offset. mix So was picks that shift, the saw tail on with lines, we higher longer then

So that's from is full year ratio why the a to consistent 'XX 'XX on pretty basis. loss

we be And forward do as but As based would to is say expect those look in the for we're we now, to the we're mix may actually loss in XXXX, upon conditions that I I looking saw what change market XXXX. I'd is you low XXXX that sorting, in ratio what tell Also, XXs. right XXXX. we enter

aside towards much Okay. help the time it are think here. as you you why to the buybacks about And shares those the for here not then organic capital like can buybacks, Can pretty maybe think environment dynamic growth prioritization opposed us you growth, you as market when that to my for still the growth in into question, I as second dividends being? opportunities set or organic seems and or is lean of positive mentioned market repurchase market

say, question, that first in we're Yaron. feel Thanks a and strong for I'd What foremost, we the very position. capital is

enough to capital are because to that I do XXXX, at first strong grow capital authorization, we we now, will it, grow in grow continue $XXX priced capital that But believe of shares And as also to in business. buying our see where continue right with we And call think have into to markets position, equally we value being we is shares want out doing we priority for really both. that believe we price. attractive our to these and And them. So look do insurance, think attractively so. we a they equally million some us. we're back Overall, that we're to are,

continued is recognized to this of time to valuation We've give the think Yaron, we us trading of a our our belief we're where further do in to have attached creation. good pointed we And business investment insurance Vince. that the in growth developing the within confidence value equally core organization in it's areas and it. our specific and And have

comes next from The UBS. Brian with question Meredith

for them of you. couple A

First, your to some charge I'm expect took cost on higher reserve acquisition in XXXX? you picks see on you have recent increasing talking again that we in potentially and reinsurance do about of impact program some the curious, that an years just the ratio actually liability you're 'XX? in Could ceded

this is Vince. Brian,

Over has reshaped. years, materially the the portfolio recent been

give that since posture accident retention I XX-odd current this we And results and been point be will And to color in confidence. so been at we Again, changes liability our and think be to over materially to of and the while the we Reinsurance, changed. as in go composition just recent year don't market as to has class, rate has the expect The period, the well content. in more for And secured point limits, our for modest prepared classes you percent. material. well it its portfolio XXXX

run rate overhead little low? unusual pretty if corporate know meaningfully just in in Got That's total items year-over-year. fourth versus Pete, to some down that on And the think helpful. that. And good or was down I also to you XXXX, then that's want 'XX. bit quarter I my of I a second 'XX wondering mentioned were GOE but question, guess, be noticed a I I just there guess you. I'm And that I expect, clarify topic, you

while year, mid-XXs. XXXX. we corporate, Brian, the quarter we forward the taking, look of where there. rate. overall are XXXX run for in do were actions group fourth would head is year items we And nail the I hit I our a some XXXX. to When in this ratio say, get go to with up been decent a I expect as with unusual in we've into about the would XXs the I'd for that at Yes. you ended as think we G&A the we the fourth say full There through it of quarter look the

Great. And last one has then in just some I can you way kind happened? quantify Pete, one. mentioned business premium. of hurt Reinsurance the think what you Any stuff timing

adjustments that in X was and There component moved It combination. had parts. there were were renewals out quarter of the

different we business a of that, to period. about in about in though quarter. credit think million motor said $X-odd the quarter as adjustments the quarter X new I $XX-odd time And think, comes was grew X is small degree market consequence million couple a shortfall. in $X million were the quarter it's in compared a the a in transactions, difference to what the of by, in in of that negative Having also very I fourth There and that in of renewed 'XX. fourth a

Yes.

grew think I it, year look the up adjust and on million. normalized those of as where $XX of out, had I'll over basis, actually premium I the adjustments last lot book at the X to and rest timing, them Brian, add a a over if we The X%. call the just I I at pull a, for it,

next Elyse with Greenspan Fargo Wells from The comes question Securities.

question on first My is buybacks. the

out stock. repurchasing million know just $XXX you said And authorization have I think your I you there. you've So started guys

and would that to what buy out? just is going shakes the capital back this you're So and you opportunities of expect like see where million the year? kind things business it like to judge new $XXX that, is then return we'll Or

priority based profitable use Pete. Right past, opportunistically, I'll opportunities for in Board, And we where upon our have do Elyse, authorization million see the market good So take growth. $XXX as opportunities. that. that see we market from I is we is #X there. we'll this said capital Yes, real now, the the

if around tax similarly be? up think your how then think have of set Because to you have guys up of And set position DTA yet. right something be your a a capital peers, that. changes. elected done choose Bermuda some my helpful to have don't sense to guys, that I would could impactful I right, that Do understanding did is that you you like you

something, we're So elect do Elyse. it the XX, my expectation on beneficial. to look If we do clarifications got going would especially this at be after it we is quarter, January to

go work, to let but quarter on the that their have the first talk tax first call. all have at end more of We guys to through we'll quarter the about the

And around slightly ratio, right, then at guys from know are that earlier, loss running underlying up on Insurance, it And level. you came are guys an comfortable just XX%, I sounds below. it like you

and of would what -- in of Does out? shakes loss within and be it think perhaps there based right, I your Where XXXX, on overall then So could loss you within ratio pricing you do the your insurance range guess of an view of concentration. view underlying impact XX%? mix, trend greater as stay that property has a

I in we as within think but of there's be and go said, that it it range of available XX%. the Elyse, opportunity said, stay agree, XXs. we as market to XXXX, see us in low the think I'd does markets it I through we evolve. will And the plenty year we'll see Like how

is question next from with Shields The KBW. Meyer

urged all a XXXX? one a in way there's ask in have it number is whether establishing DTA a that over wasn't I will that risk taxable to the that be in XXXX I'm place. of being But questions any

Meyer. question, a great That's

give I DTA, if course the that what of the clarity OECD get to out be. as set followed now, kind progresses. we sees by Bermuda the doing, not continues is guidance the Bermuda more the year we're should the year the think as the do we we I of tax [ up think right year. as evolves know, through rest it and going to And of what But clarifications EPA through ], as the

of wondering perfectly business, I'm the lot that's you lot hoping related? so and was we competitors about reserves strengthening I you but quarter, strengthening clue. from for AXIS talk how that about a No, When Okay. hearing specific fair. was you I construction. fourth the have in lines context talked the because certainly a talk of could evaluated reserve are construction we're the a through there for no

Specific been to we've -- ahead. say, would go construction, what I business the line of only

the that's no, business, meant. industry rather than of the but guess line what I yes. No, I

say out Yes. leaning only would last as specialty started growth our into in few operation construction we've a years. lending the I of

I So I our large prior. dramatically as in when reserves that we about book, go don't have property back think 'XX and to

overall, the our say, people. with same, some reserves, but have it's I'll timing very other construction call you actually we're of as it, comfortable in I'd depth So not

construction segment, the outlined the of our scrutiny Meyer, fell ago call in terms we process week a the we undertook. that under in And same

Okay. if then last question, one And I can. Perfect.

about I profitability better Is you So is is the with shifting because that pricing different? larger guess, trends expected cyber similar are accounts. towards, pricing? Or it the talked that

We we think will segment. competitive. in quarters, with from through the reporting smaller-sized that potential you supplement fourth is us or see been we've strong see what the that segments consistent shifting toward enterprises, the away leaning there's And larger large you very where cyber a the our think saw, strong. it and a in We prior the quarter, margin for opportunity in internationally

to This question-and-answer would concludes for back call to closing turn now like session. our management I the remarks.

upcoming our to and I'll year. colleagues now as Thank today's exceedingly We well appreciation you. great call. across Investor forward all calls extend to you, reporting performed in our in to progress as during gratitude joining past for Day continued thank moment who this my take the globe look on future and a well of you Thank May.

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

now You lines. your disconnect may