The Travelers Companies, Inc. (TRV) 19 Jan 242023 Q4 Earnings call transcript

Good morning, ladies and gentlemen. Welcome to the Fourth Quarter Results Teleconference for Travelers. [Operator Instructions].

As a reminder, this conference is being recorded on January 19, 2024. At this time, I would like to turn the conference over to Ms. President Relations. Vice Senior Goldstein, of Investor Abbe Ms. Goldstein, begin. you may

and morning, welcome you. released discussion this supplement of Thank our presentation Travelers' morning. release, We our and results. to Good earlier XXXX fourth press webcast quarter

of website travelers.com our under found at section. these materials Investors All be on can the

Insurance. Klein Chairman Insurance; to They be Klenk, Personal results Toczydlowski Frey, go our of of Insurance, presentation CEO; will then Jeff Chief and discuss the segment Financial of today will and X Greg Speaking Officer; environment. they Bond questions. presidents: and business financial market current we They and Specialty & your will through of as Michael the the prepared remarks, Alan Schnitzer, will take Dan and our refer Business webcast

to the end at included Alan, like turn explanatory to to the attention I call presentation. draw the webcast I'd your Before note of the over

measures. XX-Q over company and forward-looking Schnitzer. and materials presentation section our a in like financial and may on Also any uncertainties and Actual non-GAAP or are remarks our from we performance. The and the SEC. to I'd included today due our earnings differ Investors forward-looking to implied includes to do the We mention risks in results forward-looking with in statements factors to release some the available earnings website. And materially in cautions forward-looking financial Alan are Our recent is update of XX-K variety release, responses statements call other our press the now filed a those supplement turn expressed forward-looking not undertake investors press statements. may future obligation involves questions, that statements. Reconciliations factors. any or described guarantee of recent not in under statement most to our These in

Good us you, and joining thank for today. everyone, you Thank Abbie. morning,

return share income, very exceptional for pleased on top report Core bottom per line both quarter. all underwriting driven record are earnings highs equity investment the and by results results. We were to and and

each was year X a also In which more XX% Catastrophe from year quarter broad-based. ratio, were underwriting income losses of over gains of and billion, underlying prior underwriting premiums underlying Record up earned $XX underwriting an resulted segments, than our income light. and Our net underlying to development improved XX.X%. the was were X.X points prior favorable. record higher combined

also of Looking combined The excellent X an our quarter. aggregate more BSI segments the XX.X% Personal combined at commercial ratio XX the ratio underlying together, than points improvement BI XX.X%, for an was coincidentally year-over-year. in underlying Insurance was

we addition, industry-wide delivered XX.X%. full operating In that are the core year, return losses on of earlier elevated pleased the difficult improving was year. of while to personal during year generating billion, catastrophe environment in equity have and a income core lines $X.X Notwithstanding

investments. Turning to

high-quality portfolio reliable Our income the continued the for generating quarter net and from and fixed perform strong of to million year, billion portfolio. after-tax driven investment by well. $XXX growing investment $X.X our for returns income

by share strong to with adjusted through business per making shareholders, dividends investments share our Our year. important balance operating nearly in to sheet, returning us book during and billion X% together grow our enabled value capital excess $X the repurchases. of results, After and

written Turning premiums in to to line. grew We top net the billion the quarter. by $XX XX%

where billion. execution XX.X% remained high also $X written while $XX high quarter on success. retention billion. net grew Renewal remained combination of retention at pricing XX% quarter, the to by premiums Business premiums net Insurance, in at top business. to X% higher increased net to by and change $XXX which was segment disciplined excellent quarter. In The the XX% Bond written business, or deliberate about new surety we our premiums For premium production business management The the XX%. In the by in $XXX in by were in than generated All more driven strong million the written than our prior & Insurance, our also marketplace. reflects Specialty to contributed up liability in of X grew strong line net and million, $XXX our year segments million XX% year, written part X%. more was Production premiums than we

of segment auto returns, business production strong attractive of segments. with in commercial Given In billion our than segments, of the XX.X% premium line the $X year. driven pleased Personal higher this our change top change was pricing. by home past well another in in with we contributed XX.X% Renewal for year Renewal of in we growth year. strong production both production of our in written very the new are XX% feel -- results the premium was Insurance, premium alone positioned over each very and business. more strong another With

You'll Jeff hear shortly Michael more from about results. and segment our Greg,

to belief on I'd dozen so to would any achieve data XXXX industry-leading take the requires time. ensure to a webcast we if execution, were top context our time of half grow we presentation XX left strategy, data Dan, over minute into or the show our overtime over Starting at put success and Before this Slide to strategy over an an with returns. ago, a that out The we update laid attractive shared innovation business results A I grow strategy focused call A previously. like successful turn we've years to achieved. some in the we reflection corner. our returns the at that expect of a to

of contract annual & business. In The premiums past contributed increased to over it past years. X in years that impact billion. as like half for our pricing efforts, Federal the stronger of from strong surety our and and the done the line margins opportunity. organic Jobs Infrastructure we've a past quite from writings growth the than well been to programs. $X.X about as our projects years. we top and resulting other have growth and almost more in than we with Insurance, not the growth made base we've Lloyd's has That that In the growth grown North E&S was margins and of periods. capabilities higher PI have which profitable levels with combination In our X double partners the The rate Across strong more gains. have where offer More an our pricing around where price federal customers deliberate period market-leading X written X.Xx while of at Insurance, They've result recent we've billion E&S position target excellent Personal each our investments over meaningful also great value since recent of our threading to $X.X values doubled and write E&S has of That's line, business where business a unit Act strategy, retention need and digits, X management. demand increases. Property, segments, past benefit from private XXXX. franchise strategic written business XXXX, top and premium to where by includes we to include distribution a over enhance attractive. XXXX needle, the from in rate The of added new XX%. increased about from we've that Business very in growth we a our or tailored of the commercial and bonds growth over Corvus. pricing maintaining billion and to the with Specialty, enabled of in to at business, come billion business we the net job done achieving the National premiums field product growth team of compound has of Net our a Fidelis X% relationships terms rate written The result in years of job are In a customer Bond entirely a us has been $X.X $X both our net

now Quantum customers and by should our [ to property new and power XX% Teledrive Peril been more portfolio. ] of enhanced And the product the our than Auto to and earnings the telematics pricing Peril has gives us That is gains With sophistication, X products, book X.X of mostly across among we offering in product represents advanced of of that strong. segments, adoption Our grown adding contribute know all forward lot books. geographies our important and to business through the move in well. target we we're returns. Also going a distribution classes we've as confidence that partners domestic business

We've you right, and underpricing underlying growing see we've our that underwriting increased of of buy growth, outstanding services the by experiences the can meaningfully hard grown That great investing Moving a and consistent maintained the grown hustle very want also our by our compromising partners we're sell. of not discipline. products, our customers strong organization. demonstrates to while We've to and we've that through on work or our distribution profitability. that the business to part rate lot want and field in

optimize of objectives been and One our to strategy productivity strategic innovation has the efficiency. clear of

can of XX% top priorities. technology growth XXXX, Slide words, more and/or XXXX our lowered investments that XXXX top strategic our X-year that gives just ratio. let see X.X operating of for point, the is same what mix slide, over the which invest managed carefully right what The fall accomplished than to to ratio by and expense to technology XX, necessary you Enhanced the as Moving In our years, XX%. simultaneously initiatives. over we've in improve expense you of period, on reduced XXXX, have last we've period, expenditures. we to Slide is other we to of on of since technology spend XX% the we've the relative benefit in the points over upshot to increased Case routine but reduction half. bottom on a see Over in doubled expense you the line spend can the meaningfully our strategic X our bottom see us XX our strategic flexibility around leverage the half and further in a ratio that

significantly. left, $X than than it's crossed to our $X us shareholders more to and more about, we've level. and from a billion underwriting first income operations portfolio. On our talk marks The underwriting industry can nearly the $XX last to return you exceeded meaningfully XXXX, isn't our excess averaged earlier flow the business, We've income lot part fourth that what our underlying a income billion. our taken investments time more it's underlying XXXX, the metric gives the to $X the to We've decade. Cash We've than underwriting that billion. from bottom $X.X the consecutive ability or XXXX. increased $X.X average flow a we we've but XXXX significantly been XXXX underlying that also see cash year in mark, we It's From investment investment flow significantly billion cash higher In increased double in of the grown capital our in grow make important billion. important. portfolio to operations billion and

our share adjusted underwriting X adjusted resulted at highly you On fixed underlying a brings book and that the we value capital increased earnings Over As share. rate through more low period, to at These we've returning excess complements that success our volatility our billion about profitable increased track to rates, number higher it continue income, has can X% dividend together result. assets. more of the of same reliable our well-executed management year strong with to see expense We've at and time, in been X.X%. annual our of lowered per support To disciplined of is shareholders. we flow capital our annual business. capital of returned of The per more cash underlying increased At XX, invested lever at course, strong of income growth results, compound an sum of our overtime doubled per is $XX $XX a ratio. compound up value everything we've of the effective of a reinvest value of That record than our Ultimately, of than sustained since meaningfully strategy. a demonstrate rate price strategy, and XXXX Slide share. our about have this underwriting this business and levels returns the our margins portfolio shareholders our book we've repurchases strength to record rate creation. growth, together than average each and steadily through and share that base

success strategic Looking how in of with I'm positioned execution, Dan. beyond. excellent priorities ahead, turn focused for and XXXX our pleased business that call opportunity to demonstrated We're and the we're confident with the more to fundamentals right we're over The very confident on ahead are across there's that about we're shape. that, us. And in plenty

fourth up improvement quarter record $X.X Alan. of and X.X We're underlying record billion, of billion ratio XX.X% $X.X line of point excellent growth. income for improvement benefits was year's million on underlying last return ratio best segments. of fourth of Core ratio The have premium from full growth point in our the equity and X.X or year reflecting all you, ever. coupled and underwriting quarter Thank on tax, improved focus underlying from expense an quarterly top with our and combination quarter. again improved all-time XX% year XX%, generated this efficiency, prior year's quarter was results. earned X by again, to ratio to premium $XXX The last quarter XX.X%, strong combined The from prior once to both levels was from a productivity core XX.X%, year quarter. the combined for the expense The after the income once margin of underlying pleased led the

mentioned, in we're XXXX, XX% range expense with to to comfortable Alan annual for And the ratio our now. looking of XX.X% focus on As operating ahead is leverage. the

$XXX quarter business. a fourth million impacting events pretax Our individually modest results significant losses book our catastrophe with of no include of

significant XX% homeowners Insurance other. NII quarter. the and GL partially maturity higher results Personal prior in adverse umbrella reserve segments comp better-than-expected and by by Even development favorable year favorable Insurance, In development was to & general the the favorable net than the of than liability. development. all workers' Bond $XX net that of total Turning non-fixed After-tax portfolio again and year PYD PYD by favorable was growth prior $XX in income with management million prior in and income million up million Specialty, very driven pretax, charge, returns and higher from reflecting attractive. also Business were after quarter, was both in of quarter. in remain the reserve had liability. million in of portfolio surety We net $XX year umbrella benefit higher assets. Returns by of the prior million In $XXX in year PYD invested favorability was $XXX investment of net the both our both contributing. driven the had driven offset was Fixed net average X yields of

NII In our with approximately presentation January short-term $XXX of for billion to XXXX, securities, renewal. X approximately about XX Page outlook earnings provides terms quarter fourth of approximately in first including we the from in quarter. income fixed $XXX growing for $X.X expect beginning and our reinsurance after million the the information webcast tax, catastrophe million

point coverage we've cat steady, per Our remains occurrence of deductible multiple total for $XXX XXXX. cat events XOL loss attachment in aggregation to our of long-standing the events. at unchanged both the our property coverage million. the continues single and provide Despite losses treaty for from book, is And the cat growth amount increased and

let largely modeling minimis renewal the premiums direct be by combined our the your webcast on to in we have financial obtained layer $X.X offset additional point. tail $X.X to pleased me insured pricing treaty. inflationary this turn achieve sheet XX billion we've note, resulting of prudent, de continue for on will we hit XXXX, of billion events. to extra cost affordable values. light this never context, Nonetheless, protection attention underlying presentation. We're ratio. On of attachment a above balance property billion the coverage the impact protection impact The With of reinsurance recent the in for the the a only $X.X have Slide strong For is written on the placed

highlight would losses As we cat we be prior it over helpful of to decade. the once enter XXXX, thought again seasonality the our

that strong combined higher has As our regularly shown second quarter of the the favorable noticeably to part than should of terms quarter. international for in have are in Fidelis. impact and written combined The Business quarter E&S renewal earns is includes largest material largest pricing losses premium the in more have The pleased past on as XXXX. the XXXX, of of ratio data, any we share the in. for as again quarter XXXX reinsurance within quarter segment been, XX our ratio loss X share cat in but modestly Insurance XX% Cat the to the with points the interest Also ratio average, been we second in to and other renewed in been had on second markets, have the cap will X quota expected volume, underlying than and the and segment. for cat which light not a it same included continued be the we be has years. quarter

cash management. Operating quarter flows $X.X liquidity with for billion capital approximately again and of were to the billion. we Turning quarter the of strong, very $X.X holding company ended

narrowed XX may Interest $X.X the And after you loss tax of rates S&P and metrics. a from spreads tax be of decreased at the modest result capital during assessment billion model billion quarter. the result, expect their year-end. we decreased their that a and have updated As investment net new $X.X in model, as now capital issued seen, unrealized to September our will at after improvement our

$XXX.XX the a unrealized unrealized portfolio unrealized we ago. We investment manage We net in As on million from our surplus and impact per we've $XXX quality share remains investments our our our flows, high gains year-end, income very this gains which quarter, comprising of generally do income $XXX Adjusted and not discussed capital regulatory repurchases to losses have million statutory fixed capital returned hold requirements. of of maturity, shareholders previously, or value year in $XX impact X% portfolio. and of and gains and investment little investment generally fixed dividends the changes losses was how losses, up to million. excludes at share, cash a book changes

$X from no we for We about $XXX top line as of Board acquisition. somewhere capacity core to billion premium, the levels while Directors. Thinking we our delivered repurchase light need well million. authorization XXXX, for management results deployed was there written We first quarter repurchases is $X.X flow of factor capital from our remaining in growth and repurchases increased the income Currently, share in have cash the as change under our of billion, complete approximately will Corvus in highest around capital philosophy, million share the $XXX and in earned Recapping in income ROE was XX.X%. we just our the expect XXXX. Core premium, of of underlying underwriting operations. our ever

our I'll we investment In the all-time ahead. And portfolio of discussion a call and high book the year adjusted never with Business for per to Greg our ever. with turn value We've share Insurance. better addition, ended that, positioned over largest been the with for in year

Thanks, $XXX pleased and quarter again particularly with well rounding was driven year marketplace catastrophes. of the financial year million a I indicated remains for execution today. Dan. ever quarter firing result. $XXX almost shift all-time as certainly by Business pricing quarter, at combined Insurance by Segment underlying that exceptional all-in mix that results, we're our and Last benefit the drivers the record of terms a XX.X% line Net the the income had including premium an as well time, our terrific our the both the on and increase cylinders, were from ratio from The another was of prior result, in premiums business the and combined this net lower remained impact on earned weather high all a million, non-cat new and quarter loss of change up underlying ratio income that and improvement, in year from levels. year initiatives. the expectations. year ratio X.X retention, income excellent strategic investment our modestly over on of XX% strong the with progress from once and property prior at quarter, points to great in and XX.X% we were of strong to quarter, and underwriting the expense was case a higher highest an up quarter benefiting improved for underlying the prior from best The ratio prior The favorable renewal $X written year fourth to billion, XX.X%.

attractive Alan growth. segment, this this the margins pleased we're mentioned, given in very with As

Turning production as select renewal the and entirely national remained fourth down the to of was change property strong field middle the at once again new thrilled by strongest historically and rate ever third market, continued from was written fourth at with domestic for we've the exposure. and compared We're ticked business X.X% results almost of change level, quarter premium our high a quarter growth Retention third Renewal of quarter the with however, in the lower mix to and produced. premium increased Renewal change XX.X%, rate and in these in quarter. driven $XXX segment the XX% million quarter. production marketplace. excellent execution at superior

of terms to to environmental strong renewal we're to be able pricing, of levels the change headwinds. sustain address pleased premium persistent In

Renewal historically the increases umbrella led to rate of retention As we well way. several terms for was the lines The achieved all conditions, levels. change of during improvements than the change, years book strong the or meaningful and meaningful And rate renewal and each casualty workers' and than in our in continue quarter. comp. third in comparable renewal auto high-quality to other increases property, as given lines rate produce quarter, very as price better pleased we're lines

which increased As XX%. up third strong for remained premium renewal at quarter. strong rate retention remained with the very X.X% strong businesses, individual change more to for Even select, driven from renewal XX.X%, points the pricing, than X.X by quarter change, the in at

change the of year historically X.X large from XX% of and by BOP up our of in strong. renewal was premium continued quarter the $XX success retention business XX.X% driven remained part prior In New market, product. million middle

all-time an $XXX fourth best was million quarter New business result. of

out business of full Jeff. results XXXX, year little renewal XX.X%, to call on over me nearly and line reflection we've $X.X $XX.X result. successful our these close delivering direct billion record capabilities billion, These ratio let before underlying results. strategies. thoughtful combined enhance that top premiums deliberate the a turning execution and many was Segment of The financial continued new competitive were exceptional a change, results, provide also to invest results premium retention an while production color of we in all our and advantages. income are of our And strategic As will

during leveraging our and portfolio the example, sources For better year, enable equip analytics data underwriters AI, insights new risk help we manage data and continued our capabilities to selection, data and to underwriting advance and our us including to and technologies, by evolving the pricing. with frontline

addition, deliver in In out states. Both roll experiences. X.X product, live auto states live new in which now all our to capabilities advance of as by and user our service products is product which commercial but BOP XX product, state-of-the-art continued a already couple segmentation industry-leading we is to well continuing and now as our

our through turn we our the new improve roll quote relentless rate focus in efficiency. digitizing make continue to over and customers our we underwriting our other behind progress finally, easier continued extraordinary best-in-class do easier and for the And these underwriting particular, more business, and our for make and proud agents advanced to on discipline business them. With transaction and us. partners our We're productivity the business, business around distribution the specialization to capabilities Small interface maintaining addition, call our the developing Jeff. In market operating our scenes. write brokers. on front-end In to and produce our in it team continued with experience with results efficient capabilities that, issue faster to we middle we and it while to In leverage industry-leading Commercial that for to I'll out us. all agents to of make platform user

year with delivered the strong income terrific from Thanks, an and quarter Fund quarter. Specialty bottom X% lines. up million, ratio and XX.X%. & top very outstanding Greg. ended was income strong a XXXX underlying of the on both combined underlying prior $XXX a underwriting Segment

line. top premiums achieve quarter. Turning retention We quarter, renewal while domestic the again prior high-quality continuing to the liability change. management XX%, delivered premium written our X% with of excellent the to In we by line in year in net business, positive grew

for New business domestic premiums cyber demand continued surety bonds. agreement written with capacity by was up driven X%, Corvus. new a increased net reflecting strong Surety

terrific So off have again bottom income segment a delivered written we capping we're net this pleased quarter, and during line top results premium. once year and record to which generated

Corvus write which Corvus' family. course XXXX. And we're new us to the results announced production our underwriter, powered call pleased earlier affords that to general reflected technology. over and of of business scanning. we're underwriting service Corvus Finally, will Corvus advanced and of insurance closed Corvus now cutting-edge we profitable this support, business industry-leading over cyber cyber underwriting is our and turn managing Travelers This the proprietary month, previously underwriting, risk in cyber developed book the Insurance. an to management capabilities, integrated expertise, acquisition and digitally vulnerability brings opportunity pleased to the sales, welcome as acquisition be by I'll also sophisticated has deep algorithms including them Michael.

of losses. good quarter share quarter fourth segment record XX%, pleased underwriting everyone. premiums to $XXX Homeowners XXX.X%, points strong This a driven reestimation fourth also benefited the Other, and Jeff, to combined income, quarter. a and the favorable nearly the over impact combined Personal prior year year a it earned catastrophe compared the benefit continued billion. the ratio to combined combined of ratio higher to due improved of to both Auto nearly that prior a levels elevated to by fourth written Net lesser the of to grew unfavorable the modest by income year that year change favorable reestimation in earned an were favorable The the catastrophe Thanks, written reflecting The from morning, that the million I'm prior year lower prior of year-over-year and prior improved quarter current compared Automobile quarter. In Other. higher and To due combined a driven XX.X% XXX.X% compared quarters in in the X our improvements pricing. the to Homeowners $XX combined of both and net automobile, Insurance premiums to In significant expectations points, both of pricing. ratio. and renewal in year XX by over underlying premium XX.X% points, ratio extent, results reflecting ratio non-catastrophe and generated weather-related to ratio improvement the was were and our Home underlying XX.X underlying of prior quarter, modest losses primarily and was of quarter. losses points impact improved full bringing expectations improved of both improvement quarter prior and underlying XX year and improved compared underlying year the

Turning to production.

and actions and In growth. Our consistent. of our quarter rate disciplined results expected, majority strong continued execution remains of domestic third change XX.X% our demonstrate the a manage automobile from of reached retention improve and written basis. adequacy book the Renewal remained of rate and premium XXXX non-rate to as as profitability on moderated

new states basis prior seek as we achieved in the expect note rate tempered XXXX renewal through we've We we as our in increased adequacy. appropriate. to first mid-teens on the written half actions state-by-state continue auto as premium We're to the relative assess where the non-rate rate a pleased remain that environment and change quarter, of to to year business

non-rate our by consistent record In and evaluate remained as change. level retention premium change as higher Other, to adequacy rate a even states throughout continue measures will primarily renewal driven at XX.X%, reach Homeowners renewal reached more We XXXX.

renewal noted last expect we in homeowners' As low double to digits change quarter, XXXX. moderate premium to we

response limit great see to return to made on levels, time, elevated But the values in at more progress insured we've increase our with in automatic to factors same the continue will will reflecting loss We costs. normal increases aligning replacement levels.

the of and business improving Our business manage this goal are as returns. anticipate and business our in XXXX, dislocation the during We flow profitability will moving continued of further growth progress in we new continue of the enforced fundamentals homeowners underlying to drove deploy quarter. policies property. improve we our notable and and efforts towards decline capacity take manage to actions made year-over-year thoughtfully on new delivering trend target market in the face In

remains a personal generating growing and path time. in profitably we're returns on While dynamic, environment to the we're insurance confident leading over

back Abbe. Now the call to I'll turn over

happy up We're for open much. questions. very Thanks your to

Instructions]. [Operator

first the ISI. question from of Evercore David Your line from Modematum comes

Business weather I ratio. earned if just a property improvement mix between as And components light could shift? non-cat the size Insurance the the as question the well trend had pricing the on underlying above of loss you

David, it's Dan.

but last numbers But years price was bit couple put of trend not said, a little towards shift again again mix quarter. not property, going we're mention, to worth as So modestly to we're and of on weather those. of throughout impact, to non-cat been has and but favorable them. favorable this not on Greg huge the favorable going favorable each put versus A numbers

think bit of if and detail wondering And a you to reserve it. true-ups? about reacting Got X last of insurance. you or seeing X called general that the what increases of these you closer umbrella areas then little quarters like the could something think exactly to, as are we're I guys the liability I'm business out and end if in some and we of get where guys it's more been

Sure, David. again. Dan It's

than little but and magnitude we that to current at we previously, as make can. the as numbers, a every not quarter, for which and surprises try big, is we've last had sure of quarter allowed the in of the of we quarters, we're data of with of themes no in it couple same, of stay seeing more greater talking big we're the about terms things those sort has that comes this more the through looking the come what So just movements been been

with And modest to that, nothing keep so up but reaction a really new.

question next from comes Greg Your James. Peters of the from line Raymond

I running Well, reconcile good it should is guys slide looks feel first congratulations. quarter, great the be think guess the higher. fourth running a ROE below And on return ROE trying should a really all, be. fact where I to on like equity I to what all you that But Slide be with very your of outlook the pretty wanted focus is outlook. to a X, had have you I out pretty so mapped strong and I'm

you provide that some because perspectives you is guys an look Alan, maybe, factor important So I know the at. can ROE

Dan. start. it's I'll Greg,

talked from digits, quarter our number, X wouldn't losses of but So impacted, by third look, as capital. And XX.X% Slide elevated very well I cat where pretty catastrophe level. not expect that in another be expectations of especially double the we'd for the quarter the from going to expect biggest year, as we contribution the is it CAD to ROE yellow bar run more rate. what [ certainly it level the quite not really that above about, at second cost a year, we of and for to a be called normal year. underwriting factoring that's and be. risk-free contributor, we full good like rate, think into the ] view forward, elevated for out, our the experience We're new and recent you

Greg, it's Alan.

I one to thing you I things normalizing would take of things. at to add these do stab try would do, every other but won't the The I a that quarter tell is is

eliminate so and get cat in perspective. for number is a put prior and And a normalized whatever you different you year cats, think then development

Right.

go outside share allocation any dividends Dan, back wanted I there then to about about other uses talked call you to of about you'd first and your terms out the things in just you know I Are repurchase what's And of quarter, to and for share capital. capital. to Okay. the in repurchase. expectation of like and going happen talked comments capital

on that. what Let me has observations then Dan I'll that, start see and with

very with business back think generate track got first and a for said our that it invest we capital think every our long our do demonstrates the shareholders' long discipline But capital. to value. we shareholder and we of in that objectives record I achieve objective a for we we've when think can we've time, is dollar to So contribute

our And capital could keeping that we It be back when in we can give to and the in we're do so Corvus. could could growth. profitable like to things buying technology objectives. think be to back. And do we the It are that we the support to going business invest we're dollars can't money people going on the when sheet investing or the balance accretive that doing that, things can be

saying no way change at loss. our [indiscernible]. all So management long-winded Dan, it's a in capital of

I agree entirely. There's no hidden message in there, Greg. It's business as usual.

line Greenspan next Fargo. comes Elyse question Your the from of Wells from

the Can versus called sense a you favorable expecting said within year-over-year was in BI guys us a think how just impact relationship. My 'XX about in is first how expect of are on Dan, to we deal that I think favorable and you out and XXXX. give the modest you question Fidelis you margins should 'XX? improvement

Elyse, Dan. Sure, it's

worth premium it be felt we little about XXXX, mind be don't have a is really be going that put fine in a haven't would stand-alone on of impacting think Fidelis a X there'll as in XXXX, of now for what profitability. it. very we'll They company. years' number public us again was earned not help yet. appropriate of reported to a their outlook bigger in modest So a help But it it will modest base to Keep XXXX. now written an results give I

but a it not on finer So out for really us benefit, to think try it as number, appropriate I a calling big be don't and a that. than number would to worth put modest

Then within personal place. in have restrictions what states non-rate of auto, still Okay. your percent or premium

the written where of we'll but non-rate as more restrictions get state majority, we can than I see think with by state. the adequacy very Elyse, don't tracking think specific closely you

actions prepared majority in got that majority is adequacy. -- those in in adequate on returns the will to premium the states is we get or tempered where some more of again, they because non-rate continue temper those in we'll I as actions some where So states of premium have And basis. written follow states the states as a relaxed remarks, of of path as target indicated in my reach those the we've

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

my an a in acceleration of at slides. question looking in headline. pricing is middle select rate guess decelerated obviously, market the I just saw We

markets? national a you dynamics in I little those So X Could that I'm just, relative pricing property. there's guessing about deceleration in bit talk means guess, the

if Greg. up is it's you can underneath Yes, in Ryan, see, and can both the market business. pricing, see at Select rate middle you look the you

So up the national that residual that correct, of you're BI, makes preponderance is total property. the the

returns premium national book, One overall have is And weight so down X that dynamics quarter are a is business tick the that a National we total the couple versus extremely quarter X performing this we property in quarter, of plays national have this business, did when in and Rates quarter quarter written just to a Property property on given did less well. the also in where And X. out net and

rate mistake, continues and no very make change strong. be change property But line the renewal the Ryan, overall price to in

onstream tail largely used And to it. Got just obviously, running also short I an margin was then guess excessive not seeing mean expansion curious, of think in would and But that while. been a lines. We're I I that's type follow-up. Rate's casualties this attributable would for to a insurance. business well

anything be aware like on something guess, loss or changing to But a in talked we to the was I loss casualty picks that Any should been about there really like the change We or current true-up picks have year the that. quarter? side of? fourth

have call unusual No. PI Like that's and try Ryan, usually in you, wasn't it significant of hear for talk but we rate, you in it's year-to-date item it out if there anything BI referred quarter of because BI. the an including Michael in kind Dan. to sort about auto, catch-up. anything really nonrun didn't we'll Greg significant in some

every and looking go change So always blended the the our frequency right, across whole, lines trend. at big no what we of on in and all do, there's puts through severity. line, But we do view takes

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

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add the so And anything could at that? are products of rest better Or returns? to running the you

Mike, it's Dan.

account lines So although all-in thinking say, is both we pretty when are were, we that made which to the also modest those a of ago, your lines specific our over prior specifically those return, that reserves. and tweaking Alan to of comment, the lines. the And scope pay make total at on at amounts about I'll quarters we returns, of on umbrella and that looking the but that we're point, comment comments those an the to view is the and an we and of in -- by do, couple But we're that returns to basis. back the development lot much. attention liability of really goes a scheme were And the volume writing really like reserve basis, very still business is we time both returns look year when of those this

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that's returns it's we to say context, those continue -- in that in to we lines. like So

cash Okay. follow-up, That's to flow. helpful. And continue gauges free of my mention Alan, you show and

appreciate important. You still least think don't it's why at also mentioned it don't it's appreciated, that -- I I it's

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strong without So operating model. those free our X to couldn't flow, are key and those we things, do cash

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

balance the the kind it's if talk public underlying can sustainable a is on at just it's, St. look and kind I numbers. ratio to question, bit of prior believe, I insurance, that I Paul little about your ever a combined the best First the guess -- you merger business point potentially that since margins on underlying can improvement we that? things. of expenses there? been maybe seeing go there other you margin? say, have focus more as and are about should what kind ratio, on of How you more good the business the more do we're Is At and do okay, growth combined as underlying on and

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you can really answer that So changed. hasn't conclude

books So we're we really the leave it I'm of the and like us. to these putting margins. opportunity business we're going it on really the the the margin I think like we at putting We books with really ahead on like just

Greg. is this Brian,

one Just the grow note you could follow-up. would I said business. you

business strong year We are basis new full and have growing business. the on XX% a

growth them the but is a So we our there's and marketplace, of lens through products. we in compete number watch of of of adequacy items that the one

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say we they but that Sure, trends Brian. question. great I auto elevated loss personal at see It's to moderate remain in levels. would a continue

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

comments I was some seeing Travelers experience what in workers' on inflation. heard levels hoping moving is? I'm for compensation update you're back about an medical what it We've towards normalized and wondering

it's Dan. Meyer,

that. So saw couple now than pandemic we sure, do what higher comments see medical severity. levels. of on a That's We in very benign paid some the

and the we're that, number that's why previously, expected, going of there's frequency favorable in loss that quarter And higher another in that in coming view shared get of that at, assumes side a But know, a looking costs to our flip all that most the we've return pricing of pretty you than trend. still we has as recent in still times favorable. longer-term when reserving in, to On be and better factor we data PYD. been you

gears. Fantastic. and property. Business us accelerated look through other talk at in data Okay. in like that. decelerated components we middle I could the looks select premium and exposure rates And in switching the, market Insurance, hoping you that guess, then And When it was not are I but

is this Meyer, Greg.

X dynamics middle we In E&CMP that exposure of of couple have to comp higher relative on Select, customers. those workers' it's going [ comp workers' a market, a businesses. ]. different for just think And a have between We in cohort I

to wage it comes comp. product our a in driving get owner on said, what with similar deltas and a in smaller So that's a what's property coverage customer business heavy CMP, workers' that difference with increase you bigger so in. the environment Michael that's base,

So we inflationary think product, do exposure so as to the get more little it an a to growth you of underneath also. have there automatic level CMP

and those the the are So select between drivers middle. difference underneath

the from Scott question line Goldman comes Your Alex next from Sachs. of

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a of the wanted the causing to in So remain disciplined is in gets -- what and it net so contribution to underwriting discipline perspective get that's lot marketplace. good the despite your investment And income. additional everyone to it on just also environment

Alan. it's Alex,

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lot of there's some in the world, uncertainty there hand, and one there's just a out the headwinds. On

to So the reinsurance be strong. market continues

got inflation varieties. You've of various

You've got labor tight a market.

about it and world everybody's the never probably geopolitics think these is on been more is on minds, now than days, weather has think I on. active and

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on. that's think I No, spot

it. Got

that and Can thing. maybe a [ cars trends? you that ] and used we in look kind what's the at thing, the and of I some but on more on can lot of second some on new just us auto. a claims, around kind give The color high-level can of repair provide core Any idea is of one going settlements had you severity with those personal of

it's more Alex, moderating Maybe made Michael. a Yes. to trends. just I comment the earlier give couple Sure, comments about relative

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comments And when we're state written but going are have in to so bit those factored detail of today. trends that's sort by little get sort don't where a things types into to things, trends running a our sort adequacy state today. those more improvement of where about that's are of running or on dramatic We of

one injury. bodily We've mix quarters losses mix of thing level. at our has losses damage couple is property things also third-party trend bit shift throughout mentioned a claims, loss the sort of is The that monitoring a that have we've bodily the severity of seen that are injury us of more the elevated of estimates year towards vehicle between that and other and a keeping we which

question of comes Newsome the next from Paul from line Your Sandler. Piper

the home to [indiscernible] part the on thoughts that of want Michael. follow directly similar I business, about

Sure.

terms in Just of outlook [indiscernible]? for

Yes, please.

Yes.

weather driver property, again, non-cat dynamic really loss the of guess the non-weather non-cat of commented in would a on catastrophes space, quarter and some and that weather lot pretty I elaborate this frequency-driven. offsetting on favorable in that been I has is really and improvement the the that So severity still the non-weather big throughout weather. was favorability we've some We XXXX, trends do of of non-cat property favorability that healthy frequency. The loss see

the in had we've quarter. results Now again, favorable

pressure But underneath is and some the that with guy. a is labor in kind along net the good what's favorable large loss frequency So happening loss levels of property.

little personal I'm drives? of that just similar time, anything seen curious we claim we've I be divergence the between a in for trends sort commercial to that some continued are lines seeing across and Has of case? pretty bit a think auto. auto Or

-- [indiscernible] the think mean trends you mean broadly, profile I similar. are exposures I of the are see different. we size were Limits are that I claim obviously threads. else different. vehicles different. the similar It's The would Mike, what

different insurance, versus is right, personal were business between Greg? different. of bodily injury and profile vehicle Mix insurance Limits

severity cohorts of our trends. that cohorts the then personal frequency X Paul, light we'll product are a and commercial, together similar, X private like of which large portfolios. we'll benefits, the of very And for the spend -- lot And of X and that on of of are relevant, and think basis a vehicles, time Vans both on a sort. one the compare have trends spend mean, private have commercial, I we heavies, as aren't lot the passenger but having Yes. auto, passenger time between and business, managers auto passenger actuaries

for Kligerman TD from time more And line one Andrew question. from that have the question comes Cowen. of We

very looked how XXXX. results & questions answered. with and the of the thinking I'm are of renewal But most X into of in D&O premium my change, lines fared to -- in the -- terms in those regard the Bond quarter pricing context cyber Specialty, as curious and you're to But going Question exceptional. what in

Andrew, this Jeff Yes. is Klink.

you to book, we're public there. us. management relative and not I the D&O relative relatively pressured major other be, and underweight So area to remind a to been our I'd of that liability D&O more public would say, That's cyber, for lines. continues liability pricing D&O focus for

the are side, execution, market line. lines monitor profiles and ]. our our negative Again, and on think, returns to cyber liability some given the On [ we our with some I in those return modest about management closely there. perception the continue good execution see broader pricing there, we We comfortable for really feel both problem of business

it. benign to seeing if pandemic. severity same was lines I could business numbers And the medical workers' that some put during higher around insurance comp, regard Got with Great. wondering the paid along the numbers than you were in you

same on workers' And the proceed? question. then into about you was are that comp. the think Meyer's as of you in I to response thinking pricing XXXX question going What

Dan. Andrew, it's

So comp and disappoint start you severity. work the I'll on

a We've not we're benign. it. matters. point some but number starting it's again, your to been put seen those of move on So But up, numbers going

overall terms in So what this And problematic move-up matters again, assumed you Pick you development saw reserve I'll then more a in And and is medical severity it turn of your for pricing, not. to really we quarter. favorable of be pick. to or terms whether of loss Greg. inside was going

be to good. I think comp in have returns the continued

slightly negative pure has to continued us. So for rate be

rating getting a bureaus higher We of be the it's this a agencies, are see pretty we're behaves that's looking the paid their wage Greg getting the we data exposure for and a rate some higher to select like a child under it. at same few worker comp, surprised the minutes price that ago. wouldn't referenced poster lagging exposure the are comments because increases, in stay pressure steady. lot on for until just work where come And strong returns in earning a basis. environment

to over conference Goldstein for Abbe the turn remarks. now closing will Ms. I you. Thank

joining a for reach any your We to follow-up, there's please everyone, feel today. as you, time. appreciate us free Thank And great always, if out. day. Have

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