The Travelers Companies, Inc. (TRV) 17 Apr 242024 Q1 Earnings call transcript

Good morning, ladies and gentlemen. Welcome to the first quarter results teleconference for Travelers. We ask that you hold all questions until the completion of formal remarks, at which time you will be given instructions for the question-and-answer session. [Operator Instructions]

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

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

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

company and implied forward-looking variety presentation a may forward-looking any uncertainties factors. and Actual or from performance. The today differ to due statements forward-looking the includes of risks results materially cautions those Our is of investors future expressed involves that in statements. guarantee a not statement

questions, available on mention recent our non-GAAP some may financial in to website. described most the not section are press our statements forward-looking other and in we release, earnings press obligation to filed release any undertake Also our are our or in SEC. statements. included factors financial Reconciliations the responses recent These in in XX-K our under supplement and do XX-Q earnings with remarks We forward-looking measures. and Investors materials update

to like Alan I'd to call now turn Schnitzer. over And the

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

prior diluted tax pleased increased and a Core After-tax generating $XXX onetime results income report benefit XX.X%. core million the share, to the per core quarter. by billion $X.X bottom We despite year $XXX quarter. line or on return of in top $X.XX very equity are income was for excellent million

was improved basis, record higher On earned $XXX the combined XX% of income period the excellent Eastern catastrophe the or combined notwithstanding each elevated ratio strong premiums pretax driven ratio Central States. to an combined and X.X an by year's this core driven X.X up X and was million of The in income net XX.X%. United underlying compared regions billion, outstanding in primarily by activity, year The prior XX% a core Strong segments. year-over-year. ratio improved results of $XX.X points to of our XX.X%, points, underlying

underlying the segments year. X.X a ratio improvement underlying commercial was at combined Insurance was XX.X% the the over an point for BSI in BI, X Looking combined the excellent aggregate XX.X%, The together, ratio Personal prior quarter.

investments. to Turning

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

repurchases, after important excess strategic underwriting with to and number results, of shareholders Our quarter making share dividends through adjusted us enabled balance of as sheet, $XXX we book strong investments a investment million business on to our share notched value per capital and successful our initiatives. and important in execution of another together returning grow

of in outlook of X% share, $X.XX Directors In and Board for that financial to a dividend per growth quarterly recognition rate in pleased consecutive our declared XX dividend of with years a that position confidence our compound to of our over the period. marking increase business, strong share annual cash our increases, I'm X%

deliberate XX.X%, colleagues that execution quarter, million very X of Renewal $XXX the and the to in premium that execution that while line. of the to segment and Turning Business net partners by a services part headwinds. by be retention premiums generated retention X% new contributed reflection strong we in written and at high. in our strong grew combination remained to on $XX.X written a persistent pricing our strong net of business field All we excellent remained segments grew our and the customers our we In generally top reflects by that billion. experiences offer The success. The the the fact and in disciplined premiums a Insurance, We products $X.X marketplace top the very to continues of distribution line the change billion value X% and quarter. face provide. to

That retention our In market-leading premiums in million. liability XX%. by to XX% net Bond high-quality excellent surety strong was premiums we our record X% $XXX Specialty and in with by management where up business business, business, were net of written written & production driven along grew Insurance, new

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have We producers, trained just than virtual larger thousands also of offer programs X,XXX more last that including year.

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on higher all off strong it start In a in To production is the we're well as firing sum income. terrific all cylinders. investment as with short, to and year up, profitability segments, X

We to strategic invest also continue in initiatives. important

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and success this momentum for beyond. well this we the in remain With best year the talent industry, and positioned

And turn call with the that, to I'm Dan. pleased over to

by growth Alan losses. billion income year benefit the you, income, net higher was core in for underwriting first higher catastrophe the by a on despite partially income $X.X Core onetime offset Thank tax and higher prior XX.X%. driven level investment that XX% the to income core equity underlying and by The of return increased was quarter in mentioned, Alan.

another ratio higher ever complemented combined underlying pretax ratio continued gain was The our in earned quarter, points up & insurance, improvement. an Specialty, XX.X%. and featured from by Our significant of combined XX% by of reflecting year prior underlying both strong and strong underlying billion reflecting and levels of improved to quarter best X.X Insurance Bond results in premium underwriting result was Business personal a the among that $X.X

ratio January unearned expenses little despite we XX.X%, very year-over-year transaction in expense was from which quarter X. no of full earned quarter first impact of the with which had pleased closing on there premium the for a carried the flat as was of premium were Corvus, but We of the

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income from year's portfolio quarter. our non-fixed in also up last Returns were

approximately the securities quarter second Our in in fourth outlook after then from million around million earnings quarter including in $XXX short-term million the NII, for third to and income $XXX the is quarter. updated tax to fixed growing $XXX

Regarding Section of of tax in tax repeal benefit see million Internal a this year's first main included related a $XXX the effective Code the higher reason XXX. rate quarter, quarter. quarter last that in income And the that's taxes onetime year's Revenue recall to you

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

gains in unrealized we to $X.X after at increased after how generally Remember, statutory or We portfolio. have rates manage investment investment interest unrealized income capital losses XX. our $X.X requirements. impact billion in The tax maturity. losses tax at cash loss investments during investment very the year-end no impact our and and not fixed income on the gains quarter, As do our and increased from flows, March billion portfolio unrealized or quality our regulatory changes hold fixed to net surplus little remains of high changes

additional open which share, had and this end, from ago. market was per excludes with losses, of book in at $XXX X% We connection million Adjusted repurchases. from plans. investment share-based included and gains quarter year-end X% value quarter up a million unrealized up Share compensation an $XXX.XX $XXX buybacks year repurchases employee of

in once And authorizations approximately in prior mentioned We the In quarter's under fixed million very demonstrate Board power the attractive strong growing income summary, steadily remaining income quarterly across again increasing ability earlier, earnings of our from increase were well-diversified repurchases. Dividends authorized dividend book the Alan to our premiums while $XXX Board of net with results billion our quarter. maintaining investment share. $X.X margins, per $X.XX a portfolio. significant the our for share have along as grow X% to business

And of turn Business Greg the to with for that, discussion call over Insurance. a

up the underlying to and We're exceptional of strong with the first quarter's underwriting bottom quarter among XX.X%, first of driven Segment best strong lines. again results ratio the ever. combined in by pleased quarter investment million our XXXX, deliver of of exceptionally Thanks, pretax the XXXX net top and from underlying higher particularly both once Dan. Business with terms Insurance income. higher income $XXX income was continues of

an Net $X.X increased again strong at of new driving high Retention of X% pricing. of $XXX million rate was high at renewal written X%, quarter first Renewal change quarterly premiums an was of historically business excellent change high. remained and XX% with the billion. premium to all-time all-time most XX.X% once

Let fourth row. little you up the rate of texture quarter for X% high, change give in Renewal almost in the from quarter first remained strong was XXXX. continued more pricing me on environment. points coming It X.X or at a also higher the a

strong double remained in healthy middle businesses, core national volatility. and continued appropriate in consistent but renewal very digits, business was in rate Renewal our property and down of the with quarter. sequentially. a points fourth rate led way, the or in market auto close an book perspective, renewal change line result select returns the rate weather couple and change with needle between digits. all our a double property In to the and threading the umbrella, That's From

the compared appropriate Renewal the more year change in in renewal the negative quarters was and Comp, in to line. the rate healthy was be umbrella, quarters. higher rate comp CMP. positive GL, change Auto year Workers' prior than renewal preceding low continued point X.X and continues preceding strong an in given digits. the With exposure, to premium change result results single In than in prior about Again,

resulting granular production board. execution our healthy remained organization field Retention attractive line in top the with across growth We're pleased by our results, the and the and exceptional margins.

strong in the more quarter quarter As X%, XX.X% of rate first the for the individual fourth up XXXX. with businesses, X Select, from renewal premium with and consistent remained of points at change change renewal than

also change BOP with prior interface while X million. from the remained issue We're driven premium and renewal our quote that year strong the from new fourth from the renewal to business also by rate year X.X product. rate XX% at front-end success $XXX with prior XX%, the up strong increased seeing was Retention points quarter In XX%, we're quarter of and mentioned. X%, platform our close to encouraged of continued impact with the new quarter. result middle change Alan market, Travis, consistent

remained XX%. Retention a Business up, start strong sum Insurance the to great To at had year.

agents to and to for an for I'll while brokers. With continue Jeff. our as call capabilities and the indispensable investing to customer turn We our enhance grow our choice the the book undeniable partner in position that, over profitable

$XXX Underneath ratio year the an a Thanks, income by Greg. to strong the and excellent improved ratio of million, quarter XXth earned ratio, combined X.X quarter Segment net Bond XX.X%. profitable premiums of premium returns points and & growth. of underlying combined XX.X%. loss with consecutive written driven strong Specialty our started the another was

due elevated As expense Dan compared was to Corvus recent periods, mentioned, the ratio primarily the to acquisition.

as that the earn continue case quarters integrate business. in to the expect to be for We several and next we Corvus

we record to management by again top change. net liability in renewal by business Turning slightly year premiums grew high-quality sequential the domestic premium prior XX% business, driven new In a retention $XX from grew higher by production. We Corvus We quarter to the of the line. XX% written excellent million our X% delivered with quarter.

are As of book coming in $XXX business the transitioning which a reminder, will reflected Corvus' paper, million to production our new quarters. the Travelers of midst we in on continue to profitable business in be

a market-leading XX%, Net business written premiums in reflecting grew our our terrific surety strong demand for continued bonds. surety

So this we're pleased once strong bottom have again to and top delivered results quarter. line

Michael. And the now to call I'll turn over

quarter of a Personal generated combined and ratio to by morning, of income XX.X%, X.X the significantly are Good report The to improved to everyone. first driven of Jeff. other. earned automobile million point Thanks, $XXX both Insurance both XX.X% relative quarter, the of I'm higher underlying and year compared pricing and pleased combined which quarter. reflects a segment in prior prior year improvement Homeowners ratio

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first As underlying our a brief auto. quarter typically lowest seasonally combined ratio in reminder, is the

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For profitability. homeowners, we while improving growth remain focused on managing

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the in to To positive very Insurance to grateful it start and I'm up, year Personal team. the our with sum pleased

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

open Thank ready questions. up for you. to We're

[Operator Instructions] from question Motemaden of line the Your David first comes of Evercore.

some more wondering, just some can lines specific question there think on years? adverse guys liability to It everyone were better I was don't recent the any relative is a which and increases had think accident had accident reserve thought you also, highlighting, and -- regards year detail those Business here 'XX alone these provide prior. with on sounded Insurance and and that more these I GL years I'm Dan but years, that priced I seeing in to are like you of

just here So adverse coming years? talk could is about some disconnect and on exactly the are why what you there those

David, it's Dan. Sure.

that. take So I'll

we're through recent 'XX we're by I yes, So pretty about thing some we're more reiterate about than talking accident recent movements small years, guess that. I'll is about my talking from talking not here. years more the 'XX, comments

we adverse in recent accident had lines. those So liability year some

some in book. the also We modest run-off had charges

David, to to the which all are in the that doing is trying recent just more the take I while be get to years we're some those think IBNR. we're We're for a reactive and information more recognize uncertainty. IBNR lines, to to be longer liability what seeing here, tend those leveraged to into to accident trying on books lines develop

David, it's Alan.

more The are other thing a generally same. I'd significant not there's for you And time, add overall these trends the we new have adjustments. small same talking the reiterate very lines, reserves here. comment, little to a for developments are the any These we've Again, when at look Dan's is these long about of been

Got it.

mentioned some And there in warmer just auto Michael, benefit improvement help first the that just helpful. personal a just from the to any That's there business? could had gears the quarter. I the switching frequency think given auto size maybe think sustainability way of you then than that maybe business. about was typical to Okay. you Is mild us

David. Sure, Yes.

I underlying ratio impact point. combined less X than on think little the mild frequency a the was

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

maybe X% maybe there's question, holding be you through, that's and step word quarters, bit. of I'll think, seen change give and aggressive why the up, higher on on in little more seems consecutive the environment to context for the some Maybe well. So and actions some use, could for year's about -- about results stats, change the texture, comments yet the competitors X as I know. [indiscernible] all coming behalf back slipping I of a and we focus there's competitive or us or the a rate curious, is it's Insurance given rate or I reconciling retention -- renewal segment. Business first think previous still In to haven't the don't

would Just some be color there helpful.

it's Greg. it's for competitors, comment able Greg, these what with in economic achieve all environment. -- There's you to weather, geopolitics, the everybody then I certain tight think the I'd to reflection the inflation, start we about. inflation, say a over there we're us we in I'll some well, there's we've labor for reacting but social that better we returns pricing the lens years Hard Alan. world. and do and think, is see a been terms after improvements mean -- I But but And that in retentions, and a see over there. some turn to we've it out talked uncertainty -- speculate competitive do that is to. that would things headwinds the a of are same and conditions. much puts of to And way place things everybody are is market, the all pricing reacting

a suspect reacting uncertainty. an overall what and And of that's so I have you is risk level to marketplace

then you you important look targets proxy I a all. at if metric guess know Okay. the for statement, ROE pivot I'll I very

for please? 'XX, up you 'XX, you're from at was target the the for company the XX.X% talk how looking from 'XX. about Can targets ROE think XX.X% for I

on close think the rate think I business. sensitive we terms which I we're pricing. about It that going want a And We our for margin our share say think the will to and gets portfolio, But don't as environment interest about income of to is competitively which rate outlook really that over Yes, basis. at overall what achieve the think target. about we in both and treasury over lag equity. XX-year the earning we of turns into a the to fixed cost

those the -- think there? I'm plan that's we Dan, things we about together. are So missing put the any else as

you it No, got all.

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

auto. personal on is question first My

the seasonally QX lowest that amount earning I still the think quarter. you is have ratio guys combined of in a you said rate But good book.

some obscure would to be So to of knowing in. you combined the underlying year, a have shouldn't that perspective ratio other side Or from expect of the relative to rate better the you quarters QX even X seasonality? on earn the

It's Michael. Sure, Elyse.

than just So average X lower Typically, But ratio seasonality comment. the overall long-term year. a that's, step QX is roughly comment a taking and for auto, talking environment. long-term back equal all the an again, the and largely is combined a about average points else

So half that question. and for to have the potentially doesn't effective back year in that, adjustment points for pricing, an earned so make adjust the X of you no having impact

see would wouldn't to continue. adjusted any would But put response back than just the again, come the the quarter, in the forward. different is as for more assume winter in we I we day, reason premise step So David well, away sort my expect take of the question, the end more We there's your weather don't color to historically to benefit a around that and That maybe that a view mild any as little right? one-off a biggest the quarter at earn it of driver pricing -- going that. to is of improvement seasonality your and today to to -- was of effective the far and the and of

additions an your you modest, you loss trend give liability adjusting the are long-term additions, my for year given I XXXX. you see you in to wanted here, And liability assumption a question, some know were to said, guys increase if numbers trend the sense go back are quarter. then longer -- like reserve Can lines the the us there And then second the accident following I this?

what avoid and with start PYD piece the a accident its number is of to it's begin Elyse, with I'll Dan. the temptation years. splitting individual into small

that Insurance, to look Business if some fact the So the including think do talked in at improvement you do we're in underlying saw that. not loss combined underlying going we the results ratio. I the you ratio, about in

and which talked mix, You last benefit things quarter. of about a couple the of like we have other pricing

puts and big some more time, in those we're takes, year uncertainty bit the puts At seeing. a takes you've and numbers, current the in like got the in but of quarter some accident IBNR booking it. is little and to same reflect one reacting Not of are any this to that quarter, we

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

Michael. just strong your growth improved kind personal I'm are how Michael, really given the pretty at get to competitors growth market. so the some First position you one capitalizing auto before in in I'm and some on in of space this have of much? curious, showing one is just point kind your after results policy curious, a of for go

Thanks Brian. Sure, business in underneath basis, you achieve new we the premium it have did achieved where Certainly, the if question. adequacy, And look states growth. we state-by-state again, results quarter, at a on the consistent geography-by-geography written with to temper I very some is last executing granular you auto. say that in would state-by-state place quarter, to a strategy non-rate we actions of had we're in comments the what our as we for look

in And if the it while up small in have got you premiums in are of the couple of if last decrease over take over XX-plus the or percent. a a so. look you We've couple last in policies years, all increase a property, force small we step at back, auto years

auto good pretty to a in go-forward point. And focus on growing profitably your is feel starting question, about we our So on the directly basis. auto

Our focus profitability. improving home on remains on

balancing whole portfolio. growth so why and the talk profitability sort about we across And of that's

any maybe stable kind It to insurance. kind them Greg, we're larger more middle right than of what the Alan, like if a Makes small of could I middle, in wonder the of incrementally the kind of seems kind follow-up little landscape from marketplace. competitive hearing be sense. the a on small, are large, more feels competitive? dissect now you of And business then

I'll Brian, Greg. it just turn comment, let me to

markets of way all these the all think competitive time, that's I and are sort always it. think the of about we

the line. price the So reflection sure. competition, did at his rate but remarks, about think by returns our extent not terrific prepared I'm in highest don't mean renewal you're down as is, I and again, digits and in line as the to a among Greg come points, that I change in shared of a of achieved proxy couple for double a still it any thinking way, that

or been I'd competitive any that know, in don't we So I I among shift have. any think business Greg, sea your businesses. those change what's significant there's don't -- thought. said

can quarter Alan rate. hit business business, up Yes. And we had just the I'll touch on you a real on commercial, strong see new new Maybe XX%. on small since in

and we're So of we're BOP that than market we our products, business that and little product, new and what at that position going dislocation there new segmented writing the X.X we there. seeing middle to are feel our are a commercial market, we about in terrific but new where automobile combination returns in our more achieve

a Middle result had big year. wasn't market delta the in still prior first business, as on had -- but record of we new the quarter the

business new strong really So levels.

much market, dislocation, not good field and business the And staying but the Brian, of -- really our as So middle combination returns teams front. are. in about the active where really new feeling the on

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

seen It's past yes, years, acting workers' just I so margins. as think for especially active has line. I a in flagged workers' couple year in over the for shrink on the year. had long I've this exposure tailwind couple, been of the a comp been rate clearly that I NPW is rate But in as -- time, a quarter comp particular, first exposure guess,

might what on sort going So be curious dynamic there. of

has active Yes, curtailing Fed business been is not very as surprise to you exposure continues This to is in be Yes. strong, at look inflation. us the down Greg. the a somewhat as

the So primary our products. other we going what an comp my is I to of very rate comp in to change overall net the of relative account as we're drove reductions, still definitely, -- prepared And line. comments some in shared disciplined solution, in have and driver with active in And remain as do the workers' of we comp. we're that down invoke seeing underwriting. those premium that's business, dynamics written in the we're the as both the But

look overall I book. -- exposure across if And it. the positive at I the guess is the Got still

So up. else clearly is something picking that

getting already insured kind adjustments? is catch-up thing from you like that's On positive of that side, are value happened? really a still the exposure property guys Or adjustments XXXX just

Yes.

imagine, As Ryan. linear with somewhat inflation, it's you can

trying the up had replacement we So and cost of to results record some with building keep materials. 'XX,

up still So somewhat it's overall. 'XX, from down but

macro over focused you with think pretty a a But exposure, if is as consistent a comment, pretty I on at at that Ryan, healthy periods. to look if recent look number that get time, that you it's very today easy it's is number economy. what healthy

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

over track peaked Or smaller wondering XXXX. to when third the It that property seasonal can element need whether of we sort If curve with and second reduced sort should in for the we there's of stick course anticipate pricing quarter. changes. renewal in Great. because of And I'm a last indicated just effect the increases that? rate to year follow the I of

isn't really there pricing yes, seasonal element a of overall. Meyer,

field at as new exposure book over will we at underwriters time write the incremental going are to business. hand the Our renewal look and change

on the exposures the any seasonality. overall, particular than so come And dynamic dependent quarter. for that of up that That's it's more

Meyer, to pure just of within it's its but is of price seasonality your the written there's your comes it Dan. levels quarters property compared to point, mix I'll just tend And a basis. in add second change, and be in could some QX. not and question premium what third you on case in line, seasonality property commercial relatively supplement, financial QX to higher of and the up the see

the I compensation you less numbers, in think And on very little That's releases million Okay. And workers' Iif XXXX. talk of wanted bit were to helpful. statutory said reserve $XXX quarter. gears, $XXX can I like a million there I than this releases. switch about

break either that year you between down versus was actual hoping slowing emergence by the maybe that's I accident difference or So could indications? claim down.

Meyer, Yes, Dan. it's

development temptation to multiple how in every resist best And just years year accident terms to So actuarial through really wait have it's more as be expected. of same models go is. the data. is it every next look again, We'll and quarter prior be quarter normally comp the quarter do to and to us. thematically just expected versus our We'll disciplined year. going -- do you less. And actual we'll number any We're be. to process have what latest think sort see necessary And and coming our the in varied line. quarter of and last particular what what if be of accordingly. it review and more, the the from and what's versus book through. might in might reserve by going about We'll it the it's It's robust line might quarter why I'm this would the this accident tells varied from going going or at But comp same adjustments the data determine reasons the through

be. We have around continued long-term to going make what severity is to assumptions

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add also make as part this reflecting -- of sure appropriately consideration our is to thoughts I'll Meyer, that through we're we as we about process go that one our uncertainty.

just So in something that's mind. to keep

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

of the adding kind on on IBNR a when recent prior Insurance kind topping question segment, nice maybe reserves you vintages. all we improvement look despite at Business underlying guess, versus the of, that's ratio, it's On kind of and And shown a years. off to of the I -- trend combined

it kind higher And drifted it a view of as of higher there excellent that so stayed just -- been pricing actions. the would it small curious much any has Or kind of I'm about color you've than Is your and kind just underlying was be how that cost just you some helpful. bit think, power taken of dynamic loss is trend? and not just -- just

to I'll Let and turn start, you, over Dan. me it

think it, what together. couple we together a really understand the can drives of way -- margins. the all on that things very not comes but that's community that the impact sometimes It So focused comes it you investment through get about metrics as

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loss that more mentioned, as Dan was but there little number, as a bit that up from excellent takes. of it add a factors non-cat a an bit a activity. of and discrete of little bit of reflection large things quarter, And you are None just bunch puts those As can of the improving tell fact and booked IBNR and we every significant. weather, a little uncertainty

love on happy to strong be retention remain by to we're mentioned. Alan last really any sort we're the look the Yes, reasons of of and has that's happy X, BI it's see Mike, of thing the profile premise the improving to it's top so of impacted only And it to I if a as And because strong as going and quarter been commentary confirm go the we've environment. year add it, right. think your the things the back that's so you it's trying pricing to in And pricing very I'd then be we just -- some margins. that And and I'd to book. get re-retaining pleased and it, or of question, at over is that, one

lines. a you're is seeing on changes like Okay. seems on a what to [indiscernible] about? more there trying any of thinking That's there higher roof cap the follow-up conditions, maybe be as traveler homeowners, should given helpful. continued are replacement? My the on terms trend or such industry personal last in trends -- implement we Or is any and the

It's Michael. Sure, Mike. Absolutely.

eligibility of underneath exposure, I across all, examples and condition of there's include, first And think like things the things nonrate and variety based also roof tree underwriting on the comments industry. of our around you if an right, seeing executing which actions, around on eligibility, a that of many on restrictions dig of roof age evaluation we're overhang. we're

[ to risk on convective state deductibles. is AOP country. tornado wind virtually primary deductibles Our exposed if across sort hill hill higher approach severe implemented every storm focus will, We've really sharing, you in on [ wind and the of tornado

appetite XX geography. local up aggregation or states manage I managing state-by-state think we're deal where then the I help And count, of a within increased we've exposure to, with distribution the to think, a deductibles exposure. last and to managing

and actions of taking a perspective, profitability we're improving variety the what the of really when we're which examples we about managing some are from talk to non-rig is referring property. those in really, growth So

the comes with Your from Oppenheimer. Michael of question line next Phillips

been the market, ] big couple in. reforms you've have any place been here. pole past of a if [ homeowners Totally the different Florida have in a taken given turn revisit there. player not wondering I'm you market maybe years obviously, of that to

where things are certainly, Great certainly it we evaluating. depopulation of of is something in still has but reward spend time concern say in citizens highly exposed obligation is catastrophe. place a not the would event still frankly, one a significant make of risk that reforms I geography. Sure. in in a the And Florida in is that the and balance. Florida things, in is the past, a of think we better that the It Florida, risk look question some than certainly is What potential it Florida assigned the significant cat remains

in to in or but -- for past. than on the in We so to think causes about you basis a minute versus we've one referred you basis. lines think the of is whether going compete surplus an can not of take excess it's improvement things and Alan's And it this And more see to that and the state, seen. signs I what

we change to So those of on to perspective of and business Florida. new Florida. do are reopen our to haven't wanting some around seen us while is all enough The those we cause improvement, us the in considerations signs change for for see property upshot

moment. it. there but -- we're Yes. it love it insurance, because excellent at other continue is suit We in The certainly But autos. are We'll important things state the start. some think that the regulatory make as enacted. reform to think structural total we reforms reevaluate and that to they affordability, to relates difficult are just just an states follow of homeownership other not We

Okay. perfect Great. color.

kind ] auto any you there internal higher concern. just in of involvement Are of seeing you BOP signs question, personal Second [ auto. for that give personal

Sure, is in Michael. where all, -- we exposure of see tail first in QX, it's injury Insurance. I bodily longest attorney And involvement the Personal it's QX, would most -- element say that occurs. in it's of the

that standpoint inflation of So abuse from a in insurance. including the personal anything injury not immune lot based Insurance. on same what sort has we social saw quarter the Business challenge. Greg is from a litigation We're about talked in a But bodily challenges in

of pretty bodily look expected. period impact all bodily seen increased that the we longer we over consistent have involvement injury loss injury. attorney if trends at quarter, what were time. a with results in injury We But said, bodily

Your of Citi. next question comes from the line Ward Michael with

price? mostly in just the that line? that accelerated growth how in pretty commercial Or auto meaningfully. was the I curious, should pricing think Was we about environment

automobile new middle underwriting would our that that have TCAP our our was a and also business, out due in do little a Select most we product. product I happened it from growth the of rolled to referenced net point in RPC. thing transactional One premium and model our Yes, Michael. we've all out across written change market bit earlier, Express business I insurance was

So and RPC. return that on change we that terrific the that segmentation, biggest improve profiles feel overall. was latest business ultimately should But the about

And Great. just GL. to back maybe

last compared noted the other or charges You year's are to charges, they guess any color I around that? were last just similar modest. relatively

been GL you million, last the how quarter just must say, evaluation segment a around the more if I'll it's worth, will on was could look the do at magnitude But that get again number saw full the and implication not of I was again, tell number tells next and the us. that data in than or sure unfavorable be depending first would we'll you what year. probably worth, quarter, or how was that some we less much less favorable that runoff, you an I'm sort for it box of being $XXX the and some Michael, guess comment it's to approaching it's comp a Dan. the zero, was whatever much of have of

Your next Cox with line Goldman question comes Sachs. of Robert from the

that you slowdown So in Travelers E&S market. the And I about growth there margins indicated E&S we in some in saw are a and know have quite has billion indicating data attractive. $X.X premium guys potentially

E&S in you pricing? if dynamics any changes or curious Just competitive in saw

that didn't in. Robert, we drive the slowdown $X.X really billion, a underneath we this bit see is in material businesses that. any diverse Greg. Yes, as we segments we've quite that have compete that shared And of with you

and I'm it. go started of And any anything you if as major maybe Got book, there's reunderwriting material curious if you've Okay. I secondly, Corvus takeaways. think of to the some through learned the

Jeff. good capabilities. and of the into that of bringing proprietary about business, It's of we're of Robert. with would Thanks what integration. feel comfortable months profitability book the those it's organizations. the tell X.X completed for business. Thanks, really travelers and of capabilities we leveraging some We're I feeling seeing. quality their now already to Yes. you about we're of the our We're consistent, the really good Corvus the the We've existing scans using technology book really question. taking both

have more Newsome It will of time will be one Sandler. Piper from for We question. Paul

Maybe fair about to that home, couple states just Is fairly in any next -- lines that we more you're auto both surprised. the for meaningfully got or to see say to that of thoughts that already it that you've a to should getting and couple aren't decelerate that questions. the so given closer of quick change premium And just fact adequacy and personal we quarters? renewal what you've filed the

It's Michael. Paul. Sure,

auto home. separate would and I So

to decline. auto, be it's for moderate see go So as you'll we suggest throughout year. going a the RPC I wouldn't sharp

mostly time for that policies as over is things think about RPC to write XX-month about think in I us is important think the of One to we you auto.

to the back see about see And quickly RPC more quickly policy on accelerate a it someone while the end. on to so they're is decelerate going end, who actually X-month front writes going

more more gradual same still a renewing XXXX. and Ours at is increase rate we're decrease gradual April in policies May rate going then to that in XXXX, be filed of a higher a we because of

it's little context deceleration of gradual I for a in of just why going a to bit auto RPC. more be say So

would In property relatively to continue property RPC, We're portfolio through RPC increased into I in property. loss we and to drive in don't of response balance anticipate to consistent expect going the rate to a deceleration. costs the remain XXXX

just home is Or of sort something sequentially. did that bit quite a notice I unknown. that anomaly? it down Is do renewal an in the come rate

Paul. Sure,

to progress insurance QX So were value we on is QX what the talked year in we've home. last RPC we in referring about of the from lot fact property a to when to drop that made

by it's drove primary home. XXXX really RPC. So when limits other is XXXX, property, premium increase renewal the things. One is dwelling. about That you we A property of property the coverage in the driven in think dramatic increases in on made rate Coverage personal lines in amount in and X And then a and limit the change decent

actually you In improvement drop because reflects last up and property. remarks, to quarter is my this really the that I prepared from that's on that to XX.X%, essentially mentioned insurance in look why quarter and value when rate we've caught it at

XXXX, is property A stay why in which, I keep say our dynamic that's you're outlook you're it see incremental Coverage to that's to due further looking the for change same. again, is mostly a to So limit for now and rate going what pretty because not to that RPC just And at consistent. going

will the you. to Goldstein Thank closing I turn remarks. for call Ms.

day. Relations. joining again any And Have feel as Investor to Thank free you if a great to us very there's all reach this morning. please much for directly usual, out follow-up,

for This We call. thank joining. you concludes today's conference

may You lines. your now disconnect