Cincinnati Financial (CINF) 6 Feb 202019 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the Fourth Quarter and Full Year 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. Instructions] [Operator

go like Mr. conference Investor Dennis Thank sir. now speaker to Relations hand you, today for McDaniel, Please to would over the your Officer. I ahead. Cincinnati Financial's

financial at investment on Hello. This us our with our we conference results quarter fourth issued Financial. portfolio. earnings supplemental you full XXXX Late for along for year Cincinnati package, and call. is year-end joining Thank a including McDaniel our Dennis yesterday, news our release

of these cinfin.com/investors. any menu please visit to To information website of find far quarterly navigation documents, our investor in The the left. copies on the the route shortest results is the link

Chairman Sewell. you'll Chief Officer; responses remarks investors After and Corporate Cincinnati by first Insurance call, Marty may us, Hoffer. Steve the from participating Chief Board, Chief Claims of on this the and Johnston, Senior including questions. some with Chief Executive Mullen; and from time Hollenbeck; call At Theresa the Marty that President Officer, Mike their On and Stecher; then others ask may prepared Vice hear room Insurance's Steve Officer, Officer, Spray; President made of be Ken Financial Finance, Officer, in Chief Investment

GAAP. is Also, with statutory to prepared a with we First, your today the risks and measures forward-looking uncertainties, to SEC. in of statements reconciled these attention that and is to therefore release of involve to filings news release. not uncertainties. be please direct note are rules provided various the data news and the and matters risks certain some our discussed accounting forward-looking. our accounting to These with reconciliation was With Statutory non-GAAP respect accordance

call Now, to turn I'll the over Steve.

we financial and proven performance joining confidence for And execution. for demonstrated more today year performance see results to you the overall and about our reasons strategy our due Thank and were regarding hear quarter excellent. fourth future XXXX also full for results. Operating and morning. to experience Good us

for income than the and billion, rose value income was equity fourth billion of year on nearly in XXXX. changes quarter for $X for operating full than higher a the fair it $X.X basis, the XX% Non-GAAP XX% Net quarter improved including more securities.

performance efforts operating year well. carefully price and policies underwrite both quarter investments outstanding for our manage XXXX the the again Strong agencies fourth to for provide service to reflected and and

to risk product by continue line also We diversification and benefit from geography.

XX.X%, catastrophe Our the improved percentage full More point XX.X% contributed to one various ratio underwriting while X.X underlying helped than reflected XXXX. year more quarter fourth year, for better weather lower was favorable combined than full XXXX effects points slightly measures. in

further We new business renewal continue to and segment opportunities. our

and combine underwriting benefiting decisions before combined are catastrophe precision effects risk prudent GAAP Pricing our we a expertise in can to business XX% the on the mid believe a combined to or maintain data for successfully ratio growth low selection and improve on balance policy-by-policy underwriting range. and underwriter XXXX that We results. XXXX basis models ratio

X% can property more. believe our casualty premium also XXXX be rate We growth or

that influence conditions policy some will weather that the changes insurance of ultimately market casualty we property variables in that the the trends recognize We pricing significant results industry report. and are affect

lines ago for for a levels managed were continuing segments. we high-end each retention healthy average year again the XXXX, to price commercial renewal our range. near mid-XX% both of and rates retention policy business of Policy to the with In our similar casualty increases property of personal

taking are long-term underrepresented preserve is while Part value. more care areas established of the and appointing benefit in our where strategy they for agencies relationships we with growth to franchise-like agencies

lines that agencies appoint our that XXX all most products property high insurance XX net and In with agencies. additional we primarily In approximately focus. only to XXXX, ones of products XXXX, casualty personal our worth if another we appointed XXX offer new a will independent plan not market

continue insurance those for service of and to a expansion from of agencies superior of through business agencies. clients our products combination earn We

net For grew premiums XXXX and full XX%. year new business casualty overall growth was premium written written strong property

first business lower with increases half. by rate due quarter the combined fourth commercial price half half for catastrophe commercial the points was our low single-digit higher the X.X the in about The losses. improvement to again for year the and lines' estimated range renewal For year ratio lines percentage to the of XXXX average for percentage segment second improved the of than were XX.X%

Our personal the rate fourth to quarter continued personal combined in the quarter working further quarter. towards single-digit with was to for improvement. experience both average segment we're ratio and lines the The lines third range similar year XXXX increases the profitable mid and

XXXX and Global had Our and segment continued XXs. written in combined including ratio in excellent fourth planned full another growth premiums of XXXX and net Re and year another with line XX% Cincinnati exceeding in XXs. low ratio below year Cincinnati ratio excess to XXX% post-acquisition combined as a profitable the has low the surplus a combined had quarter grow quarter XX.X%.

life largest weather retention our again agents, X% casualty to income while business. premium Our product full full year correlation property and earnings XXXX year Cincinnati and our life with contributing Life for to fourth its of insurance term less insurance supports growth at growth producing with grew of net premiums million earned line than $XX account subsidiary X%. quarter

On transfer each January this risk X year, reinsurers. property our of we to our part casualty of that of treaties renewed primary again

we $XX treaty, property bond. for earthquake per-risk coverage XXXX treaty $XX through our up coverage plus top on broader added catastrophe that our of and our terms for for of to property both mostly catastrophe and For were to conditions similar our of million cat except renewing events. approximately XXXX million treaties Instead, not

flat. higher we expect fairly for Rates to of treaty similar XXXX. premiums Rates ceded the our XXXX to our were nearly treaties, casualty property but total for somewhat amount were be

fourth outstanding of X.X% year. It Improved of operating which quarter ratio our above an a XX% I'll long-term reflects to XX%. VCR value creation of markets conclude securities VCR average financial a favorable year the with the primary results XXXX of targeted measure XX.X% well and annual for and resulted in is our performance.

from our contribution from for points before investment up the year net percentage as income year gains X.X% ago. The measured a up was X.X operations

While risk due understand year of short-term our portfolio we this equity market the variability benefited effects. to VCR

continue We for to and for dividend income believe this potential over value important shareholders long-term is growth for appreciation creating time.

Directors Board increase last Our by the the X.X% month. confidence is of decision a declared reflected reward with recent shareholders also cash in regular dividend in our to

of Mike Next performance. our Officer, financial Sewell will Chief some Financial aspects important of our the highlight

the thanks growth continued the today. income at quarter for of you, Thank doubling all Steve, growth, for for and XX% quarter from year. the and fourth for previous both during to X% the portfolio us income again portfolio Great. was our rate and for Dividends year. XX% year essentially growth of fourth XXXX bond up our drove year. you the experienced flat XXXX equity full the we joining Investment from the Interest

X.XX% quarter pretax for points the basis quarter. fourth The nine XXXX, from fourth was down average XXXX of yield

basis Tax-exempt XX year. invest a net XXXX including year bonds from average We an to we XX experienced ago. year X.XX% continue ago. bonds of the in a yield than in pretax had bonds points points purchased averaged Taxable lower down basis X.XX%, $XXX purchases during purchased million for

including for was primarily portfolio our for equity net again million $XXX overall the billion Investment fourth quarter our equity billion $X.X in portfolio. tax ended gain portfolio. effects almost before of the stock including changes appreciated of net portfolio. million $XXX We valuation quarter for value XXXX favorable, with our The $X.X were nearly

exceeded our investment benefit to continues activities is to Funds in strategic for operating billion. make us, $X.X flows we always cash operating from to year flow XXXX from full important investments income. while Cash management net business. Expense generated continue the

property within point X.X ratio ratio. year's remained full expense Our casualty percentage of XXXX underwriting last year

upper development. Loss property again XXXX reserves area XXXX We favorable our both half important net experienced on quarter approach prior of net are actuarially and favorable amounts reserve we intend expense range a a on estimated year in and fourth net development year we reserves. of net loss consecutive to full years loss the as accident target another and XXst maintain consistent basis. of marked casualty in the

On benefited the year than our ratio favorable of years. XX% lines the point for all XXXX, five experienced past accident a XXXX lines reserve and Most percentage accident by an roughly major development points, basis development. business accident of XX% during our for year reserve year for average favorable XXXX XXXX XX% accident year, better included years. it combined prior X.X annual Full by and

financial remain strength and stable. our capital Regarding management, approach

financial rose from XX% continue year flexibility securities marketable ago. have company that outstanding to including and cash holding We a year-end

it. Integration for good remain shares During we quarter, of gone total at for and share its well Cincinnati we acquired profitable since future nearly price per a growth. prospects $XXX.XX. of confident an the XXX,XXX Global, in noted repurchased underwriting results fourth Steve we has average

contributions fourth casualty increased per prepared I'll operations conclude Investment ratio. life added remarks quarter represent our the and book items to of Property other my $X.XX. contributed usual $X.XX. book non-insurance reduced income with value by share. than creation value the insurance drivers Life underwriting insurance value of main $X.XX. They summary by

quarter per increased book gains of $X.XX was shareholders. the Net net $X.XX. portfolio book increase effect per equity to share record Net investment and $XX.XX declared share a to value portfolio for gains And increased by during dividends book a value in $X.XX. share. fourth the losses for fixed investment value and losses income $X.XX the we The by high a

And now, back over I'll to turn the call Steve.

little great a was capital in trends from several our overall areas recognized improving rating and raising strength trends us A+ Last for good operating that and a our It Financial. and year. XXXX week a affirming give a Best financial A Cincinnati quarter was credit A-. confidence in to see little A.M. rating our the future Mike. Thanks We strength upward issuer by

same superior All to to financial of Company the Insurance rest time, an the companies. the Cincinnati rating have Best a At the outlook. A+ stable Cincinnati the match strength ratings of Life upgraded rating

service works strategy stakeholders our time. appointed we providing shareholder and should over That company target know our all it continue while growth as benefit to to agencies. creating value the great We we'll profitable of execute

and appreciate during respond to your questions to of you opportunity the look meeting of also forward with We person many this year. the in remainder to

are Marty Marty Mullen, Hollenbeck, As and Steve today Mike Spray, Stecher, Teresa and me a Ken reminder, Hoffer. with

open the please call Catherine, questions. for

with Zaremski line Mike first Credit question Yes, sir. Suisse. Instructions] [Operator the from comes of Your

Hey good morning gentlemen.

Good Mike. morning

on would language there pricing believe question. some the single-digits feels earnings commercial release based quarter. seems from who P&C was released like to need to has be like have of it great. little much last was do that It you don't there a the earnings bit and pricing First change competitors momentum. a which some multiyear-weighted? didn't low be given seem your the to surveys Or I you with you your take price being maybe good? the about in as Any results just Would say more are color book

certainly It's worth Yes. Thanks believe Steve question great increases, some you Spray. we've in disruption the rate that discussion. is Mike. about you're that industry. tell mentioned; further certainly you contraction hearing capacity first I witnessed large I'd a the This one

it's than little think think I you paint more broad I industry a a the simply entire complex brush. However, and can with that don't

the back warrants it perspective way our from peeling business. that think do I think the little a by to I layers line best of is bit. And

than or pressure trucks, from others. vehicle under capacity standpoint. stressed the ones risks money to think But under is and within be industry. struggle a more and rather is be see entire Large auto even seems commercial probably the seem still to really more to point fleets transportation gross weight line a with best that both commercial I across pressure, rate make segments the example struggling universal long-haul the auto, is heavy of we the are

a think disruption coastal. property, seems industrial be be I larger in will commercial experiencing few risks, habitational, to properties, Those and just higher examples. more the hazard it limit with anything

residential little construction front, casualty risks position states are tougher. like in defect similar as jurisdictions On property. that where it with feels a such tough a it's product maybe as manufacturers contractors High-hazard-casualty the exposures, in are

casualty. frankly the in nursing is the and really risks for even say there's on segment most liability I I though tougher the an really, us quite or -- thing been on probably casualty where that in facilities on that tough. auto we've the excess liability seen mentioned skilled dislocation umbrella Professional home in before the would and disruption

Now, I I from about brush make point saying industry the think broad standpoint. a that in and --

do we we basis. business, have those types on While what of risks lion's the of our not certainly share book. in It's day-to-day a it's not

get not And Our the that perspective tell commercial I to annual is average story, think your in it different. the don't least to the underwriters, marketplace in renewals. all size would marketing and risks at the new premium, with our lines Cincinnati. on rate underwriters biggest commercial full strategy account work starts execute for I for who $XX,XXX I question and field that And field to all day-to-day working think headquarters certainly thing from handle is these average who increases agents, business, trying the our our we're our say is are reps then

risk-adjusted we've the the risk-by-risk just from risk professional a underwriting. on science And underwriters our We basis. that sustainable price the the got a and we a or been, data me, trying appropriate art forward segmentation and boats risk excuse get believe raising all execute and of the taking approach have like to a We're on on strategy appropriate appropriate rising that -- balance to perspective going strategy. don't the tide, is we're confident the

Or On really focused maybe where we we are as most level retaining that business really business. pushing isn't the than we priced. there much on the the for a that losing we feel is pricing our then the that it. segment we're feel priced, a are that or profit, sometimes increases obviously on hard business, business we higher really rate. that the that the the we're opportunity feel is rate quite on most we're really And seeing pushing Mike adequately And in at adequately segments, that if adequate

results, Anytime for over But don't showing on think executing the the sophistication changing certainly here last have perspective I good any years of it's it's results. it's impact. our having that my our any being and in years, the thing. So, I from -- one you entire several an it's ever mix we've is book, think just been up pricing XX

accident. has think underwriting eight think don't years it's and -- I commercial lines any of I just that's And completed profit, by

that going pricing strategy continue that segmentation think I to execute. we're it's to

and So, but I a executing it's answer, probably on topic big here we're a long-winded it. bit of well a --

it's a think having worthwhile I discussion.

those That's things with helpful. And guess couple comments. of a dovetail I might that

you don't So, be in or rate the the in interest do higher Like to book? the industry -- industry is have maybe you kind like you like feel should your headwinds just of facing? you pricing need given biased -- feel

I to Those on And seeing year-over-year. are a questions. any Are little were the in loss some have cost bit inflation -- separately changes casualty is companies going two or guys guess any there said trends? separate inch-up that quarter-over-quarter your you

Spray This is XXX% Johnston, Steve I just questions. Mike. Really agree gave. good with the answer Steve

consider low. terms we around of time-to-time. do They're they're basis really bit mean In the XX rates, little or a just more I certainly points from interest bouncing them. your

and make are historic that But profit in recognize low one settle, that they -- wherever underwriting an really they do against we where And it's year. have to and we a every good norms.

in underwriting eight mentioned, row we've Just put as Steve years in profits. that now a

said at very policy-by-policy is sophisticated results pricing the I what Steve And and trends, look is buttresses think them do my in a on we in we point terms models. of basis. main I the it guess have

we're or pricing were models, We aggregate priced up, exceed our today more either that next feel a ratio, are prepared look those everything where trends be remarks feel ago. seeing the that than which perform that And year Hence that can today. priced that we're show match more my them such year from we we adequately in combined we will next adequately our to year. we we comment

inflation, policy. like I bit -- little reserving We In that about talk models. to the terms size in do think do of measured of and always the we've I'd explicitly inflation. our a

mentioned, is Steve about $XX,XXX. average policy our As

occurrence GL umbrella XX% about have policies XX% million less. $X our of excess $X limits of or it's our of limits commercial of and have less. $X,XXX. policies million CSU, For or

to don't us from So, want or insulates feel we it inflation. inflation that you if social call

that XX% effect I'm million I'm simple of basically round just inflation. do it limit. of if as the a out refer you look we it's on you kind limits -- XX% believe picking number. However, inflation let's And companies to have but circles, picking a here of to a In and say say the would those leverage And a we since less. write give example, suggesting $X we that actuarial see not at be the effects smaller number. number would

And that up. inflation had over be in limit. a by hit the again limit compound It held year be and If and would the would the also claim it $X XX% would that it $XXX,XXX million last increase. was you you and would next had go this layer down over the the year limit not a

effect leverage of the that's inflation. So

think do that insulate us. us have effect what on to that -- we're of seeing we do think going But limits not inflation, of would lower of we leverage so those from we in this due an and us for inflation. to And it's do it write think less impact

earned haven't about We uptick We back since mean up that portion reserves we any terms XX% IBNR seen period is The XXXX, of over that our in side surprises. in our in about inflation. casualty a last increased by seeing then. the of on in And of that premiums. in XX%. talked an XX% against increase that's time call I

the XX%. our XXXX commercial since side, On reserves up auto

have XXX% reserves the up premiums earned IBNR XX%. total while been component Our up

think we it is our as next chipping loss old-fashioned will saying in just in information and So that to least in. year. on claims. at confident improving. good that Everybody we really adequate inflation we're And being throw with our this we us. understand models. why feel we going the in combined we're impact in not surprised be And We pricing that's that all confident feel that's that we good believe anything. And by our year control We the of think, as is underwriting, give work on going is ratio

little that's questions A but of I lot where long-winded the bit are essence coming of think the Mike. now a

the Thank color. Yeah. Great you answers. for

of Kumar comes line from question the Buckingham next Amit from Your Research.

Thanks question follow-up in and different good morning. Mike's manner. I'll Maybe a

So And start thinking guidance imagined with all look staying earned on, what in you lines. were with and on the that's different if at versus have guidance inflation let's or what are you number gotten picking cost would the guess this going the than commercial maybe manner to you I better for rate? loss suggested. would have probably I your a discussion discussion on maybe

Well, we inflation. low in it about We've commercial cost the rate what is loss being feel with our talked in rate our our above see the we that lines, single average digits.

it's be to point, bit that. segmentation. And it has a So little than I less with to going to think do again Steve's

at making we prospective. When actuarial historic. -- from Rate is cost it's look perspective loss When look it's is trends, at loss rate prospective. not trends, cost we an

want is be try the So to highest to increase with you and prospective segmentation less projecting by the how policies that always his people are move impacted the those profit period. policy loss will the profit the potential. those to from into away And as book doing that Steve potential great with much cost we

matter commercial it's it's at mix, And every is total look And we gets different as different. it a premium company Everything -- and as different of policy if our so that position, our having rate increase. premium geography. a one a different a can't

to intersection would and doing art It's and to we as respect. that in of put local of see we're underwriters really policies And feel good all the that individually can management meet teams. at out of being results that decision science a thousands the the job go risks show our confident treated by underwriting

as that follow-up question. So a to

obviously the from from even definitely you which you percent different overall, there's there when if what bucket Can rate hardening. needs in here? bucket sub-segments acceleration about other And will a adequately adequate still buckets companies of is of, are then a at could rate et use is here? which talk about buckets of benefiting will look there which the broader maybe in priced you, business is sort of sort and many -- is more and sense a know, your or policies You talk cetera

do a do only But in Sure. that It's not summarize And policy. groupings that teams. industry the at management the science it's bring to think And their think the It's we addition not table the in we at looked in each on living bring we're to meet this people with We one but that it's the position. its add it's overall from merits. is see looking much I so long to in the risks shot substantial on the the -- buckets. communities And each we agents -- skill by which have single policy we the out go it's working homes, the the with technology. I now. ground,

profit to the those worked have we are potential book. that a of our substantial so those the believe And percentage part of be we with most

Okay.

great okay. you're cetera? book I book confident XX, book? question know count just noticeable the And Maybe talk can extent, of involvement, size from and your claim talked the past count coming you you interesting be about X, data and where your small you et the claim inflation. or it a expected? how X, seen insulates about you're at That attorney where But we was it trends in data. of And than in have XX-months other The I that what of on would it and the is staying to own terms inflation social was know in in topic are I or X, had exactly et like, better you pressure the closed is maybe thought social cetera you pressure looking the probably it's if of what noticing at pockets any I over look you don't changes. that's

Steve is Johnson, this -- We again.

of surprised us. just and trends period six nothing in It's seen jumped a here that up last over the have years. We months

for who as you position. that see then have reserves in us years that last soon I to have development go position. we react increase adverse few said to gave you'd to there. as back good have numbers and I we see think did did movement strong We -- somebody favorable the about we them XX have then XXXX years took We very We fuel back back reacted as over them. we just some you our development did we to feel a wants of some a just good the trends if our saw but memory puts to

I think just up at -- be stable jump it's years than last we've in six look the several would something over more answer been it's of the months. the last inflation a that seen rather

Got helpful. That's it. Last question.

On submission talk the and past that. the Is lot E&S thinking that segment just our the look is you rates where and a obviously be sort saying, it's allocation seen E&S pie Maybe of, okay, was in seen I This good of returns want great mean few growth. XXXX? is we've Or are I when sustainable? of in different rate And wondering businesses versus movement you the Clearly quarters. how I about broader about wondering is is was, know you sort just at what? you activity happening chart? for happening. we growth are where to capital

I Sure. mean is adequately the a every they X.X job. we This years the priced straight space in mean what to for range over In been fantastic chime of policy Don just I quarters. would Steve doing rates have the E&S that's under XXX -- increased the a they've want mid last leadership risk-adjusted quarter. that Doyle the in. again maybe single-digit to Spray But Steve is we want on write and we that next be Johnson basis. preach

advantage allow so gives excess a basis best. think with have lines the our to them And surplus they great business that that risks we're us to to policy-by-policy we going We are pick and work. that think company continue on a in model

to to them to going policy we're ask continue that policy. do by So

to risks high, sometimes might profit to matching it love growth when because it's especially have year's that put this demand potential. I or less accept pressure rate, that

want doing we to tremendous write agent's they policy that very profitable offices, ones think the write in doing, we that we a do the So the levels the its years. merits, they've on of just that look which at them can been job every at out over be

Yes. And yes, I'm is -- sorry... is this Steve. this

I'm sorry. Go ahead.

the see grow I I change up. is think that We continue XXXX in feel the we still -- marketplace the question -- other to any your just This Spray. are submission E&S for the of can't would business. too, Steve anyway, don't part that to counts would we

that the And note had quarters. XXX years. X.X I it's not XXX Steve wrote correcting months, me a

good Thanks much the Okay. so and future. for luck

you. Thank

question from of comes next with Your line Shields the Meyer KBW.

Great. Thanks. morning. Good

morning, Good Mayer.

seeing there that like description any we're get continued your profitability the I'm -- this so of pricing success I'm trying Obviously, way. or the on I'm question frame morning, the tremendous to --good potential going XX% sorry handle on sophistication. upside, a to Is say, quantification let's best ago? of, three book the what current worst and between gap and years looked And

Yes.

it, of substantial time. but we're that in make to on really made improvement a it period We have don't has a all that in disclosure think position I detail. over

And questions. two Okay. smaller Fair really then, enough.

First, We're how wages you workers' going and maybe the up fill are severity? running wondering through seeing book. in up seeing compensation increase medical any I'm costs and that's

been mix know a inflationary It's been of I increase. that don't loss at that has or It in say look would the increasing I inflation. a it's much We up total. just pretty spiked. pretty costs steady picked

Our frequency still continuing forth, and, it again, has with do and so think, I segmentation be down. the to to is

down years by it's substantial And amount. last over a many the

of the of So but we loss in we're with terms that to are we long-term look focus. run some rate, off it is line we're losing one profitable profitable we like real And much you that don't very losing good business. a industry, do We've from position. rash got would the want anything total and at where that, trend feel ground to where cost a the

Okay.

inflation then social job Now, leverage. finally, phenomenon about, at pocket think, explaining I a that more a words, In you is that the is But wondering, a in lot I'm there that And whether the did pronounced whole phenomenon makes hearing place on limits? that we're perfect sense. also? great deep other higher accounts have

well. of just geography, about that. by size not wondered I've limit, It's as but by

increased of experiment have they have think, involvement, attorney of deep data. think maybe, to than a a would at seek going They more anything you're pockets. higher point, kind where I likelihood going But thought they jurisdictions, just would If it's might to, the in this seeing they're seek we're success.

so Okay. Thanks much. Fantastic.

you, Thank Meyer.

from we'll Capital [Operator Instructions] Markets. next the question Dwelle take RBC Mark with So

Good Yes. morning.

ask, colleagues on. that already esteemed questions to others I have quite to couple my a think a had the hit of exhausted of lot I hoped but

you're a the update it, just thoughts Re what Given contemplate appetite and you're Cincinnati business little are there? an seeing, and are or bit trends that in of changes pricing performing do those on either you your in at maybe, Cincinnati And while things how businesses any Global?

It's course from job. what much XXs, ratio the came a at go for great numbers Re it there, just pretty doing the with see the growth, Cincinnati the both. the you XX%. for Yes. combined mean in steady year could -- They're the low in I in

think and at of feel capital model. wanted company make against went which fourth them faced accepting would from in And that was want XX% they're have and just to consistent with a grow decisions down. hit than that's it the of there such We submitted look that the up quarter that actually a disciplined set the doing ago. do allocated they that from contracts good was It's XX% I very to each to ratio year the to are it recklessly for The capital And We we fashion. put with was beginning, what submission less flow an capital. a there. those up they're in didn't where them. compelled maybe

-- inception that up over technicians. specialty time. XX%; been On staffed XX%. inception-to-now being have the with very the basis date without casualty skilled It's the an premiums quite XX%; property, some actuaries, really They've the underwriters, very, been plan actually about steady

XX For this year, it was XX, XXXX. in

very been with way So the consistent they've operating.

we're there. so happy them And at And encourage markets to change as we opportunities. look

start XXs better good than right growth. combined it's their therein And foot years. know, always The in hadn't happy the had started low They've be for with position. on a Cincinnati more ratio. out. acquisition in loss but volatility that many with an done the Global come They've the Cincinnati to that couldn't be in off in way we there'll Re, many, We

for business there I new plan Lloyd's. is, they with their One say They're lines. add as to going thing can file growth. good It's two

them of one to going risk. be to the be other is terrorism; going is One political

to affirming and And start those -- credit, advantage business what we so lines take of already a think to underwriters trade be to sorry. seasoned hired of I'm they've and write --

So there's political credit. risk terrorism trade and

higher those over Lloyd's. advantage in there underwriters market two going firming experienced the to I at of take there's areas. They're a think So,

That's appreciate helpful. probably the And then, Marty. question for I update. other I the had

record levels of don't thrashing Just a markets equity differently balance anything yields, bond at and just doing and in the exposures know from with management I so Xs, forth? around you're to kind perspective portfolio

dividend very curve for We're a is increases getting might not money short healthy see that the opportunity a little try do a yield the out in Nothing years. which more little but put we What term been to dramatic. get maybe yields, in look have of couple where lot. wait last a We it. thing, we of surge bit; to kind try

So, that us bit. a protects little

the So, be that meaningful. nothing would on particularly scale

any there? side? the gains harvesting or You're Anything repositioning on otherwise equity

we're seeing whole No, alluded but might much. values you well. be to kind to expect there's there, out too of out staying lot you of in a had Not pockets there as as Not there. course the as

generally around steady. fairly big move portfolio a so really we whole macro make and lot, So, don't calls

and those update. for Thanks. Thanks the Okay. questions appreciate

Thank you, Mark.

call And for remarks. I'd time, Johnston with back questions closing turn no at Mr. further like Steve to over this to the any

We everyone to call. XXXX great have us thanks for on and Thank speaking forward much again and joining a with very today. you look Catherine, quarter first day. you, you, Thank our to

your Ladies conference for you conclude and participation. today's this gentlemen, Thank call. does

may disconnect. now You