Ryan Specialty (RYAN) 27 Feb 242023 Q4 Earnings call transcript

Good afternoon, and thank you for joining us today for Ryan Specialty Holdings Fourth Quarter and Full Year 2023 Earnings Conference Call.

In addition to this call, the company filed a press release with the SEC earlier this afternoon, which has also been posted on its website at ryanspecialty.com.

On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements. Investors should not place undue reliance on any forward-looking statement. These statements are based on management's current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those discussed today. review in detailed the the to risk of SEC. encouraged contained factors company's are the discussion more these Listeners filings with in The such required duty no law. the statements by company as future, to except assumes forward-looking update

the discussed in Additionally, and this Reconciliations accordance isolation as with should will the for these in call a considered GAAP. on substitute certain be financial measures GAAP earnings non-GAAP closely or financial most be not which comparable prepared information are the of presented included the of with in with on measures financial filed non-GAAP available the release, website. in is measures and accordance SEC company's

With that, ahead, Officer the Executive of over I'd Ryan Specialty, sir. to Mr. turn go call Founder, Pat Chairman please Chief like now and Ryan. to Ryan,

us CEO you discuss our Miles With Underwriting joining Mezick. our afternoon, results. quarter call our thank Turner; Wuller. President, with of on is Tim fourth and of Nick Good me Bickham; and our Relations, our today's Director CFO, us Investor Managers, Also Jeremiah is to for

was Ryan Specialty. for another outstanding XXXX year

year our efforts we to to combination in fortify industry-leading steadfast our to with position. and their clients. top business strong of of making deliver while long-term Our team sustainable dedication service continues Through quality another excel a generated results our to talent to clients, investments our competitive

XX.X% top the billion, year-over-year, driven XX.X% of of XXXX. by up full of the $X surpassed growth XX%, we For on revenues year, organic in

earnings XX% basis points XX.X% We margins XX adjusted $XXX XX.X%. expanded M&A. grew Adjusted million EBITDAC also We full year had a to per adjusted to EBITDAC contribution meaningful recent grew from by $X.XX. share to and

market. strategy on to to executed our total successfully addressable add also our We

evolving proposition. around our Our serving needs value to order and strategy of overall provide a dynamic aligned growing is in clients the

organic benefits, addressable targeted our For as insurance, we XXXX our dedicated enhancing capital. alternative growth investments and scale, authority, steadily within second M&A strategy, market All by for our with marked engine total moat the are risks double-digit year considerable our we and deepening best specialty XXXX a expanding in intellectual Risks. scope as well when topped acquired and only M&A, particularly

We and in $XXX capabilities acquisitions, of Griffin several new brokered historic to excess adding our and announced our Authority million, completed capabilities with Underwriting revenue totaling specialties. integrating of X geographic each in broadened successfully and our scope and Services Binding specialties. annual

capabilities benefits insurance teams. and our associates our to liability are deepened in distribution urban and offerings cyber and professional our clients services new key centers ACE, underwriting Our property health scale added platform with developing help and employee to high-quality solutions. for lines, our and provided foundational and PointX integrated our AccuRisk service talent products rapidly

signed in half definitive is this agreement In first late a December, year. to the to Castel Agencies, Underwriting we anticipated close which acquire of

to Castel of talent its differentiated the $XX MGUs approximately capital through record of strong intellectual to Castel track add and expect annual and capital unique an We excellent million revenue. has profits providers. team adds underwriting delivering top XX

our expect U.K. we in delegated be international new catalyst team operations a focus start-ups management for and Europe authority expand significantly accelerated footprint, the our geographic will Our expansion. and and international and to underwriting

insurance to high underwriting proprietary market. wind new net multiple in facilities, developed we've capabilities [indiscernible], highly and MGU, a management dislocated covers wildfire with and and transportation Further, products coastal our offering worth homeowners

back, execute PERse In positioned our are wind inorganic specialties solar International, our our growing and the and expanding authority U.K., addition, U.K. expanded and on our MGU, in with In global delegated particular, we're Singapore, organic opportunities. geographically excited Canada of in a about and our to well addressable footprint market. have the property several recent total MGUs both launch Stepping

platform, resourced investment to in than well a stronger which includes support as Our broad-based IT is through built ever, distribution. talent and carriers actuarial offering heavily top as and

empowerment, by client underwriting Our through our strengthened is retain our like-minded carriers excellent our of record culture by our position talent partnership risk our track further as centricity. to and demonstrated results. view We of with of innovation ability and market share a

investment are We to well economic help people in and grow term ability confident value and the cycles. that over sustainably our the longer our ensure will platform our proposition through perform

back on made performance. current to XXXX talent capabilities track and We these both talent. developing in Collectively, on to our Turning to lines production in meaningfully contribute in business XXXX. class largest to investments strengthen future talent our in are strategic the our well in of further onboarding of history investments in

a we've pleased they were with growth to again proven and previously, retention. once year finish strengthen producer maintain to formula As industry-leading winning long-term are prospects. the We our noted key of part our

we talent, have producers our ensures top been empowering at While onboarding our equally a it's to firm. maintain successful key that culture important winning at remain

We to on front. continue succeed that

of quantity rest experienced the industry. remain talent teams Ryan to distinguishes large and from to talent, training of developing both hires Specialty is college and underwriters. exceptional dedicated It that quality the and recruiting, of brokers We the from

learning As which them individuals, of at helps of efforts, a our compete result the highest we curve accelerate the level. these

solve differentiated Our that us that emphasize their our clients ensures most challenging they consistently can it's talent to trust problems.

emphasis growth most we been our of these on growth founding. organic since clients to best we onboarding we and talent industry-leading is and long can to value vital and and sustain over has continue retaining delivering why mission our term. for levels believe generate our to commitment successfully our This Our the innovative the why

the year momentum. and Turning significant to capital allocation, we our priority, M&A with remains entered top

We improving, outlook market M&A XXXX. are we opportunities. for are conditions as ambitious wealth an And cultivating have of a

engine. opportunities we organic bolster that expect will our to substantial continue We growth see M&A

pipeline M&A Our includes robust large remains potential both tuck-ins and and deals.

of only accretive. noted, strong M&A As fit, our we cultural forward all met. criteria be we've consistently must acquisition strategic for are when will Each move a and

by initiate for program to program term create capital our a on to a dividend our value in our dividend ability Additionally, are pleased robust and strong assisted given to over broad sustainable, M&A drive return quarterly reflects additional flexibility, program. we profitable execute Board And shareholders. cash financial initiate to generate confidence growth, and continue to the cash flow the long our

which It sustainable One, long-term ability sheet strong our with and years testament while we shareholders. as in successful value we our for to stewards both execute come high-quality balance of and strategy. on capital investors to growth; dividends acquisitions; maintaining to our M&A also our our believe committed excellent on of our excess cash, be can disciplined profitable a for firmly M&A our seamlessly of organically for our business returning to remain is robust pipeline executing to distribute two, shareholders. We and three, support investing strategy create all our

things continue you to progress through expect Specialty. we are Ryan XXXX, from As X can there

The and certain rate and keep otherwise of specialty retail we We Secular another that are continue we complexity, drivers a overshadowing and the First, is these marketplace. number like high-growth which freedom pricing. to growing that growth of addressable open strategies future. consolidation generate delegated consistently our driving We outpace carriers with which confident our retail remain product to secular innovate drivers E&S will through more lines the engine. able our growth meet these that submission are are E&S market This pursuing double-digit believe not the organic E&S shifts and businesses, to market trends, becoming to marketplace, those total sophisticated and one more risk to consolidation; and, risks solid to of new counterparties fewer world growing organic is will of year by and expansion necessary our foreseeable wholesale-only with criteria. ongoing for are the continuing the changes position wholesale distribution order brokers the trends authority development, growth, expect firms and in very admitted industry sustainable both that organic flow we and support for competitive further pursuing. exposures ability in offers factors believe larger insurance by driven growth market, brokers panel have growth secular growth ongoing significantly increase all growth to of cyclical to the Adding needs. and to form into in scale this more have new of aided therefore, few serve meet in respect bolster their available. the who solutions to We our is in growth in provide and market unique with any in

continue through Second, to we will M&A. grow

in addressable within by market steadily mentioned including and insurance, authority, benefits scale, we specialty capital. considerable moat earlier, deepening our alternative intellectual our and scope enhancing risks, delegated As our expanding total are

through platform Further, our and the complete our our team help access of carrier acquisitions network, firms these great distribution We deep Castel. on the integration proprietary and relationships. grow our will onboard we will broad products our to from XXXX

in Third, we thoughtfully to continue our will invest business.

hiring specialties. we at talent of industry We to across additional systems make the expect ensure another top of year of our operations And forefront in industry. remain investments and our the we'll strategic

and ACCELERATE innovation, our growth our improvements we execute term and driving Lastly, accelerating on improvement. program, continue over efficiency to Notably, margin long on execute will initiatives. XXXX we will the our productivity delivering continued sustainable

expect to with XXXX, we of $XX to realized some generate of reminder, in a savings savings in XXXX. million annual As the be approximately

and, XXXX. value, delivering adding well clients our and and positioned another that model, are who trading are results differentiated business year shareholders. value another for outstanding our unparalleled clients, of remain team in expertise, for partners and of proud summary, year In I incredibly our our flexible innovation strong With work our partners ethics trading we entire ultimately, and

turn pleased Tim? it over to Tim. I'm to Now

much, very you Pat. Thank

an we for Specialty quarter The generated fourth our double-digit Ryan across of specialties. off quarter growth all another capped excellent as XXXX

complex uncertainty Turning appetite market. market. accelerating, risk nuclear inflation, a the an reserve verdicts, as ability and underwriters and more persist industry notably pullback is able trends the more environment regarding increasingly or accelerating form of into E&S are to environment in rate for by adjust it and significantly social to a rising marked trends quickly. offers legal to from insurers These Ongoing adequacy risks the and more handle driving in climate uncertain marketplace, freedom the which better more are admitted

behalf result, a continues is This would on E&S be our to is of provide not seeing the risks available. market create teams as provide opportunities it flow consistent As our otherwise to of for to industry-leading fantastic clients. solutions solutions and critical a specialized that able

specialties. into Diving our

of brokerage for factors business property, from of insured and market. specialty Our costs flow make drive and severe retentions continuing a of higher into insurance strong billion E&S new value $XX market. These to ongoing quarter to storms, elevated challenging reinsurance generated inflation convective wholesale on including In loss growth. activity, are persistent of focus risk, losses another the

with along respond continued the flood, market risk. to especially management, coastal increased We limit of E&S yet earthquake see concern wildfire tighter well, property, with continue and discipline around and

trading Given talented will E&S recently believe recurring Ryan frequency particularly Specialty risks. for severity in complex to coastal rate our We in and strong and driver of and market. placing the channel areas, in into XXXX, risks property yet sustained be experts drive Midwest, opportunities should will This for increases. we losses, heightened the a partners the flow growth more the to continue and by more continued deliver believe stabilizing of to critical these property solutions in remain driven

E&S sports casualty another primary products. consumer care, by flow the for transportation, quarter, health and and practice habitational market particularly risks, entertainment excess Our casualty, driven in had both strong and into

carrier strong social a Our These reinsurance are of and nature, higher tail driven quarter and classes transportation in trends appetite costs. loss for inflation flow. social continued experiencing need loss due reserving severe by and driven rate both increases, claims, trends the economic underwriter pullback practice by Difficult another to and driving higher economic casualty are plus latency issues market and long exits. inflation, saw

more expertise With particularly our deliver to clients, technical market. value and we bench, perfectly a for are unpredictable and world-class execute our positioned deep in

our and committed We profitable for consistent, that contributor delivering a generate The ever-changing was growth. be strategies a are meet and XXXX it will clients, team Overall, great casualty our needs to innovative of products to positioned for our to optimistic wholesale well we marketplace remains are to the the strong specialty. year performance. brokerage

Now both binding to delegated which management. turning and authority underwriting our specialties, include

from risks. for clients small contributions which Our Authority and key new P&C proprietary tough experience for high-caliber products, specialty excellent by seamless but talent to Binding had another on driven place commercial our quarter, make a our

we remain We continue and growth a to to capitalize consolidation of panels Binding long-term as and positioned Authority that opportunity. the opportunity, see well on

and underwriting management our MGU, by very specialty the well quarter, Our performed in led Ryan casualty property and Re. reinsurance

market events. our for another partners underwriting multiple despite profitability We are proud to of deliver carrier increasing year adverse trading

We accelerate decile forward footprint, the position such markets and expand pending our the look in top make us to the well expansion. as also U.K. international U.K., to will talent, our addition approval regulatory stronger international in which and Castel, of us Europe add

significant grow the needs alongside As strategy and the transactions Pat long respect our mentioned, cycles. to sustainably further ability in we XXXX. Focused to progress execution right acquisition term us over made our will economic our over our on ensure with perform platform clients' to evolving and enable grow

Turning The lines. including to firm D&O Exceptions into cyber. in company have majority of our price. public conditions, market early pricing, or and hard XXXX accelerating remain business continued in the

see or markets this certain noted rate as certain and has before, adequacy, placements. in in we've As back have aggregate. said, to out, meaningfully still pricing market to lines not cycle, the perceived flow That we reach the admitted standard play on any in impacted to are tend yet step

We non-admitted a market than driver so Specialty's into significant of be continue to to of expect growth, the rate. business Ryan the more flow

With you. turn on our call quarter. results our the that, over I financial to Thank more fourth of Financial you Bickham, will will Officer, Chief detail give the who now Jeremiah

from continued grew of strong Growth to quarter $XXX our business. and million growth higher quarter Adjusted EBITDAC another ongoing investment adjusted QX, business. XX.X%, our grew by period-over-period of income, and points ability win the new improved grew Adjusted million, contributions basis total margin renewal EPS driven of organic growth offset revenue X period-over-period M&A, over percentage In by E&S Tim. per share. XX and quarter points you, $X.XX XX.X% substantial to we XX.X% $XXX XX.X% by Thank was the to for strong amounts at to much investments was fourth the added line. top another which by of market, tailwinds which to XX.X% in retention our driven strong in EBITDAC revenue to fueled and fiduciary partially

were results XXXX year excellent. full Our

to XX.X% revenue For year to grew driven by EBITDAC and share. we organic added year, points by to M&A, grew margins from top We the line. our points growth which and expanded full to XX adjusted EPS billion, million of XX% XX% adjusted total EBITDAC $XXX $X.XX to XX.X%. grew per basis percentage $X.X XX.X% contributions X Adjusted

in the Turning to and charges our in quarter We approximately charges program. had $XX the XXXX ACCELERATE for for $XX year. million million

this $XX charges to million approximately continue We of special expect expect and annual cumulative approximately in savings under $XX XXXX. of million program

We XXXX. approximately realized these savings half expect of be will in

result of As Pat noted regular per capital. in and as a his Class stock. of outstanding remarks, M&A remains on Board the top cash flexibility That A model per share priority in a special allocating a of common $X.XX initiated onetime business share that our dividend terms financial declared dividend the $X.XX the of our quarterly said, provides,

the and in and Both information can release be as be on of our will on attribution XX-Q. of XXXX, found special will More on dividend March payable record dividend the in XX, also regular stockholders to earnings be of presented our quarterly close QX March business of the XXXX. XX, the

in add we it capital important policy of sheet balance initiate As our M&A being note this capital, dividend our and corridors. of new on arsenal, to our stated long-term sustainable is management strategy and we remain our robust good deliver pipeline, that execute through to order dividend We and to our M&A continue maintain stewards value. will leverage both shareholder to stay committed our strong facet within our to

our balance investing create to all growth; cash, and we M&A for profitable our strategy: executing Pat strong committed successful three, returning while sustainable support in maintaining firmly with disciplined one, mentioned, value long-term business excess on sheet high-quality two, of our our acquisitions; which strategy shareholders. As organically remain to and

to recruiting long-term Looking investments have will part talent our returns forward, These for approach colleagues, we in and highest investments recruitment. maintaining continue particularly making and proven strategic our talent, our historically are prospects. shareholders offered in of growth the new

our forecast, operating of the approximately loan expense, million GAAP term interest includes repricing net on XXXX. income record interest funds our to in Based which of is our current and recent of $XXX expect on we

our Pat As Tim mentioned, value proposition. be about to opportunities growth excited long-term we continue and and

year by as As will driven a of broad-based investments year outsized believe be Pat signaled our our XX to growth XX.X%. growth we organic in prior talent, XXXX result, between we our We the are XX.X% prior calls. in our guiding of revenue exactly including XXXX many and of ownership, full has and be M&A as months exceptional benefits lap

between addition, be EBITDAC year margin full are for In we XX.X%. to the and guiding XX.X% XXXX adjusted

annual the Those half majority run XXXX We ACCELERATE the in expansion savings those our rate business. to expect with return underlying in recognize of of to year, margin from with annual savings bottom $XX paired will be million falling approximately a our this to savings line.

performance In our both prospects. near- pleased summary, are very we XXXX for and and with our long-term remain excited

differentiated Our as our innovative business and to expect model come serve clients to deliver best well a to position dynamic that Specialty. Ryan clients have and our solutions the of us continues hallmark to

that, With thank for Operator? time, open your call the like for up and to you we'd we Q&A.

[Operator coming Fargo. from first from today Elyse Instructions] question Our Greenspan is Wells

you're you to organic question back XXXX months XX% setting to XX I XX%. initially go on right? growth had first XX.X%. ago, this My at set XX% outlook, If the at is So XXXX

like the of with about So the agree know better I Would factors several 'XX you feel call. you at driven But than by that's start outlined statement? feels did that it you on you XXXX.

we finished XXXX, very feel we where growth. but amount only a as Elyse, and XXXX, view XX% to healthy also XX% about very good we not of

biggest to the understand property. trying difference if really variable it Now when you're trend, and there's the explains is comparing that 'XX individual to a

as expect this our from as casualty really strong property portfolio. our year we contribution a portfolio well So

healthy. the compounding think new when XXX we then see basis -- the year property I our said, improvement up this from to in that points prospects pair it's why margin counting contributions same and with I last growth and we're excited XX%, year. However, But XX% M&A potential this year, year's on in easy you XXXX. rate we're of it's increases premium very about saw not overall M&A very to as that still last to And

-- the helps opportunity I And could just And how then international just the on about what guys brings that deal, talking you that we were sense give guys said do that it and expansion. period out? you mean you about a think you million, $XX with international but time over Castel Can that play see?

Well, at need as the much A from look European for delegated we that very the but also ripe market of lot over the bring authority a comes international the in consolidation of carriers being market. We innovation. years, number of innovation last expansion. for

believe talent, materialization we already the So we to and existing planting look in productivity Castel good innovative products bringing countries. at that business, flag that improvements as Europe various to the our add quick of European

And Ryan big then how Re is today?

they're big but it break we out. are they? Well, don't big, How

profitability the But We a innovation, with of great a portfolio. and TAM great example growing expanding it's don't individual that or Nationwide Yes. a revenue MGU level. partnership have of MGU rapidly our disclose novo, at really part de we a

Markets. Mike BMO from coming Zaremski is question Capital Next from

Great.

percentage think to running from a a you're growing year. to year? a revenues don't of on and contribution year, year, 'XX and offer maybe subs, the for a question, a I have than normal in the how and contingents you thoughts, lines think just XQ than or number, First larger want this Or subs? year, last but is I it's was for better contingent of whether about us normal -- Any kind guidance it higher have the like looks contingents any much the subs

appreciate Look, we question. the

great highlighted I market, we've soft we've of an even results last we So years the our the emergence in back driven. seen of perhaps to a cycle, quarter from are think in profit commissions that the parts which complement

lot continue We will years. to profit carriers which years. profit we've years. results of emerge coming delivered a commissions So over we've last as over seen believe the to the past from several

planning go-forward So part of our that process. is

positions. those numbers. course, are We not contingent Right. organic growth don't Of put

tighter Okay. or conviction back the if of the variable breadcrumbs you've made have versus call you over predictability that at year just look have I previous just less and just rate conviction you'd number if being kind Maybe you're just guidance guidance, your at over given you organic more look than growth you to good Anything talked to on of to -- pivoting range, But lot point other in property the about in more of curious, than you've years, growth add insights you to this on it's to and so counting and a given which far. I this previous comments want why year? a increased years. a about seems more

think it, to about is way variability, simplest variables. less variability the think material the less Mike, just I individual within there's

to property, at last going was example, for going was tell how So year, had beginning rate it was be. the up, of the which it long it was to you going last, hard there much end to how to year, where

doesn't that You us it still had felt comfortable range. out scenarios the of There's that our lot mean moving our transaction every with in make year. normal towards things but with go guiding we ran lot that it's it, That a range. in an got all bunch we a budgeting various of and basis what process, we'll professional feel more that's aggregation variables of this pieces across tighter of call -- play, in of, liability. point lines a bottom-up year, there's the comfortable and But a XXX headwinds

just still M&A the lastly, it in sounds And similar optimistic of be pace 'XX in to of that M&A. 'XX? the like on pace Okay. Could

or a an sell, lot are that I of these to ready terms been that in there's ready companies cultivate we're know, comment a time you of would getting to takes buy. as that long Well, able it uptick. great to people

terms. they a are it's when together and determining on matter can of So available reasonable we get

many We got 'XX may entering opportunity year But we can't said, more there a there's robust just have year. It's We very good last fall. quite -- there variables. one assured 'XX. predict than in that so than we a M&A had was 'XX entering in rest pipeline. how As was

coming Shields next from from Meyer question is KBW. Your

have think from divesting point. underwriters want from of being much one one behind in scenes of And deal. there mounting extrapolate I interest MGUs? sort should to But I question Castel the stemming don't too we the

Just sure to question. the heard I make

said, are MGUs? that should we carriers You divesting there -- mounting there's assume interest in

Yes. know whether Or of is close, a it for be deal. deals potential if about I M&A. don't takes a broader but in know just one-off there's I don't thinking context this to Obviously, time theme that we should the

is but this situation. with need well that net delegated banks want have it I authority Well, Carriers in There fact, can I managing is a getting book superior tangible they've to their opportunity. banks a is certainly the They of call that that that, the as brokers businesses. certainly happening is in our just had value. but to been have trend, don't strategy know see don't if opinion. are tangible -- let's -- call realizing you they trend, intangible to as in lots say it carriers X carriers worth own now. And that it

very that's No, helpful.

months talent, question, sort or whether battle for is to war or recruiting, to compared update on of intensifying hoping as was talent could what talent XX ago? I speaking, second regard an think brokerage pricing X to for broadly The with good just we just of for the for abating

very, and certainly And very we've of decile attracting It's we've at the We caliber of successful country, been Specialty. big and to success. for and I been say the to focused talent and through X this, It's high-caliber been up. our across environment let day highest know the from of them been continue our has on would they big It's underwriting. a are, them a very history, We'll never brokers. in in Meyer, supply better. and that. our limited underwriters recruiting never we've part Ryan who been a bringing and success do part attracting broking

Are I fading? last can that D&O I at of if Is company And know Perfect. one in something public headwinds that one. all? a Okay. changing remains headwind. throw the

business headwinds being converted D&O, The rolled we're in remains and D&O ProExec to lines, The E&O. of ProExec a think phase. challenge. think and strong I that a through getting and And business, transition to tailwind like those the we've most stabilize expect that care, I it. through I the been real continue in of actual of over all social today. and niches There's of health grow. pretty we're part Public movement really classes. we're continue, It's pain have across in to services; big the and books a including a position line softer back but But ProExec, it the and human firming

Next from coming Goldman from question Sachs. Rob is Cox

organic a look relative different the been could on those the So from is the But of the areas we business peers. peers bit give you at mix of strong And of been maybe there. you one and Binding that's what's been the some particularly there, what's is to public growth Authority. I know elaborate driver exceptional guys exactly don't

tough. been authority Property up misconstrued this not small. We've if the just Sure, chassis, be are to on binding RT and will. you are Rob. as casualty commercial, accounts Small building keen easy; underneath those

offices, the to business moving speed our is we is of trading working we're the and strong efficiency which different casualty platforms and RT us approach brokerage approach base customer RFPs for can business technology our the these lot getting all Binding be us. have our Authority extremely in business, at the the consolidation to grow hub-and-spoke of a So electronic a their in And trusts brokerage gaining tailwind the commercial. more Authority business Authority for to platform, and continue platforms, us. property the with burgeoning small to well, momentum. Binding and business Binding more momentum who they're The

very, business. in runway long the growing we're bullish Authority very So our on Binding ahead

of the seems the points you you guide, XXX margin the point like it XXXX think expansion Could guys identified. $XX takes on add will have help of basis follow-up so so a XXX in basis us puts million that impact? margin as And the restructuring about or the and excluding the to XXX

Yes.

this being heavy our But right. ACCELERATE Rob, through beginning us the that's range, XX%. it, you're growth materializes the flowing that does of absolutely paired So with that's also how shake into the resuming will call get investments a do out ultimately savings return to from organic XX-round year depend for what And year, to most remember, The, lifting of what underlying other does. annual where and arise, scaling. then growth on the we

So in overcoming contemplates a headwind now, income. investment right plan our fiduciary

will more then margin and of resuming will the ACCELERATE in Fed obviously the if have our underlying earnings is exciting both we're annual impact. exceptional margin that and hold years a top if that that it faster, is year, margin. the rates on for that progress power with exciting, far scaling impact in and us incredibly XXXX throughout those our the and that fact big big pairing year, and future cuts on I having it's the mean, done the our could even for But have impact But tailwind on deeper fronts. though, of picture alternatively, line growth then be that jump we're from an this And

from Next Bill Research. Carcache from question coming is Wolfe

talents, what's with strong. seems with is sort and for around the us having the rate your your In record color underwriting comments. like there delegated it MGAs track is of disparity discussions success competing decile where helpful. your an extremely contributing discussions authority your capabilities. up But Can clients you're performance should Following top And discussions? quite be to you the regarding inside on environment take would some of how any be in the maybe business across significant performance MGUs, that

into Yes. momentum of our 'XX definitely I the and the Look, 'XX. going We're performance question. appreciate proud

strong carriers. increasing So another most expansion, to profitability product as importantly, highlighted year growth, you and of

track So in important new classes our to products. record attracting new comes industry, important that performance when like kind it to of product in And launching capital. past your showing individual is equally it's

capital success management year. a So lot under we've had last increasing of underwriting

arrangements the 'XX. believe wallet had penetration achieve partners. a small percentage of products able selection increasing same these it's capital but our a authority we majority we've A our Last total where across perpetuate marketplace, continuing the of we key on we and of grew carriers year a strategy possible that performance the we were portfolio-wide the into to that greater led as year, still global in lot is XX of are major doors, was We 'XX. remain is products. premium Big we we to early picture, premium broad-based -- partners with relatively way feel delegated of success go last a into several into I supporting and aspire top this

point very is are back examples the That's posing I any focus, your of the in helpful. that as much remarks. business markets admitted risk outsized the But Separately, would you to prepared appreciate in or to E&S comments you there point and migrating to could tangible risk?

in business health modest. hazard migration is the market it's that continues the and standard care, very, continues, shedding classes business in classes the back our digit the and world, Well, leaders of like very especially business In The space. loss transportation into in dumping grow most business casualty, to high reinsurance property double-digit double of of growth. in

the measurable. market So that heading measurable migration the see a aggressive, The we standard kind we A well. a measurable. market, into London market more hardly all, that's But use bit we nothing but back little bit at business again, London lot market of see. can into has that been little really as don't of back but of

discussions of by how the more to influenced environment? they're it attractive are environment? curious sense Understood. How rate anticipation the And by of you rate inclination may to being one wait being influencing influenced last discussions Do if a one. a Fed -- potential with the squeeze I sort current are expectations your whether in just cuts selling greater of targets? in I'm

of Well, conditions. high on on -- it's take not they're the quality that that We a target the it I the business businesses. quality high-quality think depends to that they're targeting. market anxious And know because people of haircut very you're and

multiple the You because Holdings, it's saw high-quality business. pretty at high that's the recently been just Truist announcement on Insurance a announced

but businesses be disruptions that are at their some deservedly necessarily that multiple businesses temporarily because lowered not performance. There lower and there earned they're all, a bad have could

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let's out we new good as a And So we some the little, we companies attractive some are and distribution need can at that and help think look opportunities a good multiples. there, quite say, there help. some home likely, productivity quite some get at companies reasonable

question Citi. Our Mike from next Ward Instructions] [Operator from is coming

you How cuts? assuming following you embedding? much just a on are on of up Maybe rate Are NII. headwind question Rob's

a the ago. We at of that embedded cuts set the was curve are. curve forward the and changed our assumption X think in it's it cuts I X month now. to are It's budgets, look forward We

like So of our said, of plan that And a into we're very headwind. account our all the us has taking in models outcomes. I them. happy scenarios we're And are a overcoming range

kind terms growth just similar then guidance. to increases I a of respect of for And with you're Okay. And curious guess property organic expecting casualty. rate in what question

property. with start we'll Well,

into digit. the channel First continues double of flow all, the to be

lot to So market. double-digit a the moved And into we're non-admitted we being cat on increases business continue property. see rate of seeing

flood, whether we what modest. coastal business, double-digit wildfire, rate little storm Very wind, rate very So deceleration, there's predominantly continuing. it's convective increase see

your once double-digit high In have states risks, care, narrow into transportation, hazard our larger entertainment, play stamping channel, and and social into flows to the business we sports channel. venue business flow but validated and habitational, service health education, niches in, the That on usual of continues offices, and casualty, large of again, again. ebbs that that classes growth kind the depending business strong human like higher flow of

with underwriting these deep set you heavy and well that So talent, platforms verticals. bench our as are know, up, practice woven brokerage, into we're group very

strong. very to 'XX expect be We

Next from coming question Research. from Tunis is Autonomous Ryan

that just following question. up I guess on last

rate But for said midyear. if new You cat-exposed property, deceleration. seeing in you lines much are not those recall that solid of all can property you

So on property pricing XXXX happen a juncture? you really to in have much from that how this guys what's standpoint at in visibility -- do much going

But see that certain and rate property far again, on mainstream -- a hazard we're business is does, business. deceleration what in specifically so market property don't. about fact, rates slight, been, deceleration. classes that very middle certainly the that even hardly can of we talking But E&S not We continue again, or cat measurable high to increase. have There's

property the to continues again, So very, very high strong. overall of be hazard our part

still happened, mean hurricane. So bullish, I huge submissions. just I me then you you're help guess, property XXXX submissions had And come we Can on understand from? where incremental a

flow we wind is the from? to think going incremental that But where about not come just I everything, and it's stay had I'm market. disagreeing non-admitted there. submission coastal

treaty smaller a capacity here limited all, Lloyd's, reinsurance Europe here much role of companies, by whether first cat and plays big lines, risk-bearing or line net or the for large produced much, being business. Well, capacity it's shrinking available London,

number So the required. it deliver participants a on are that higher of limits requires to

So there's demand no accomplishing our in a way. It's needed. in much smaller for big that the more these a that see limits We in much in non-admitted in even cat is needed up There's putting one tranches capacity are -- that. other higher let-up a don't much property. lines

and that participate and the again, So to the really new goals. requiring, to carriers these expertise more towers opportunities restructuring are accomplish

I casualty, for. see and one to with Like is something maybe it's a from, for is clawback developing that not there I'm in accounted And just the there that XX now you know, sure paid noise dynamic? not [ one that's really profit -- adversely. how mechanism But for a ], commissions. I more is guess Got got don't that it. a you there XX contingents Or and the that? last

what technical no this only we book accounting any it when on book. We is to anything it's on fully there want seeing. we don't downside Ryan, earned and clawback you're side, So collected

to and broadly average, takes profit on or think X a average X commission measured be on I paid. -- it for there speaking, years earned, recognized,

several PCs our that said the are underwriting the years in pleased we're and in I we're see X will coming in opening, optimistic again, I of performance seeing at in years our on think market of to no the PCs the you're from some there or clawbacks materialize what of soft heart ago, X as books. materialize of your years. But question, So

over session. to the I'd We reached for turn any our of to like comments. the further closing end question-and-answer back management floor

support. time and to and And now appreciate taking We progress our talking between the certainly then. we you. to be thank join for Thanks several you for today next to of us look you we'll you our and quarter, Well, and interest on firm. updating of probably continued your Okay. support forward your

you. does today's and conclude Thank teleconference webcast. That

We wonderful today. disconnect this for you day. You may your have at a thank your line time, and participation