The Travelers Companies, Inc. (TRV) 19 Jul 242024 Q2 Earnings call transcript

Good morning, ladies and gentlemen. Welcome to the second quarter results teleconference for Travelers. [Operator Instructions] As a reminder, this conference is being recorded on July 19, 2024. At this time, I would like to turn the conference over to Ms. Abbe Goldstein, Senior Vice President of Investor Relations. Ms. begin. may you Goldstein,

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

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

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

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

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

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

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

billion underlying a to income generated are diluted Excellent of a line core included the favorable $XXX in million reserve development net to severe Underlying pleased have quarter. XX% pretax premiums per $X.X underlying record investment Net excellent points all net X contributed exceptional underwriting and or year the higher net was of improved number and income result the earned United prior year of billion convective quarter that States. premiums over across results, an ratio $XX.X X.X $X.XX prior year's that strong record storms continued result We up a bottom of income of XX.X%. share. were higher to combined was driven business earned by our This segments. in

X.X ratio XX.X%. an & combined And underlying in Bond and segment combined XX.X%, the Specialty the business Insurance points excellent improved underlying our a Business to very was ratio in strong our

Looking The was at nearly X our combined X commercial underlying for ratio BSI points segments terrific BI, underlying the XX.X% outstanding XX.X%. quarter. insurance personal improved together, in the a ratio aggregate by to an combined

premiums X% the net all segments line. Turning grew to by quarter. $XX.X in the contributed in execution top top billion our written by success. Outstanding field our X line to across colleagues We to the

more to We insurance, X% margins are results $X.X segments, net In terrific in business heard, commercial Renewal report whereas you've billion. grew remained written than and premiums part XX.X%, disciplined. production pleased are on our execution we very to be to a attractive. premium marketplace remained reflects continues retention high while generally very strong and The deliberate retention at pricing strong our XX%. change that combination by at

our fact that grew our Insurance, the written market-leading the driven $X Bond products where written and offer we record year-end XX%. from services had the and that value distribution commercial across to billion, production high-quality premiums in & reached management X% double a our we the we billion year, grew segments, level and increased business excellent shared XXXX, $XXX for by more that a XXXX. we partners in XX% of that $X.X writings and our business by the retention strong business, X% net to customers E&S premiums Specialty million, At provide. our than New net reflection of surety experiences by In X very we liability

grown premiums strong to XX% we've The in E&S by XX%. with Personal Insurance, growth written X% attractive. quite In drove continue margins Home. pricing net X% and Year-to-date, premiums, net written continued Auto in growth of be in

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

investments. Turning to

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

Our a sustained benefit cash over investment results from the flow we've period. generated strong

in to is the quarter what talk portfolio business, seventh investment $X in $XX strategic is billion as of cash it's This return that technology the we than and $XX than our billion more consecutive but a growing our in and enables quarter about, operating shareholders to Since marks flow billion. lot make capital invested measure in investments important investment to returned our which portfolio. by capital XXXX, excess we've us important. grow generated more This our than shareholders the billion Cash flow. we've $XX industry more excess initiatives,

and per virtuous initiatives returns is billion a our a motion. and profitably about billion growth book grown $XX all adjusted to to management excellent premium executed that Strong from to and contribute It's exceptional XXXX in Thanks value in sets investment marketplace flywheel execution, thoughtful cycle effective more share. and the capital in strategy attractive $XX today. value base than we've as strategic and strategy well conceived underwriting franchise it

long-standing where the of time over partners we growth organic, have have market been dynamics. in we regulatory understanding we products period have through Our whom geographies distribution this a has in expertise and which other environment and thorough largely of relationships, selling with deep

enabled us XXX our effectively consistent words, that and over The strategy growth to has return to substantial returning averaged adjusted strategy. in value a important advantages on relatively a after of other points to capital by steady excess about have our industry period growth evidenced In is competitive per that is shareholders. low-risk the investments execute all basis that and boils But over this share treasury success low volatility. book business in equity down XX-year making

P&C leader market a success lot of it with and outlook share as plenty continue our sum in U.S. innovation of in product the business. confident capability, us. more market a To there's with opportunity we up, And confident to for demonstrated front headroom, in we're broad very the be

result, Our year growing in investment the operating an the rising fixed excellent flow half results our income steadily bottom growth, portfolio. for of strong returns first record include and cash premium line

momentum, and positioned year for the equity despite With pleased months turn And to and With the with remain success business on balance strong that, sheet, the and substantial we last beyond. well delivered over this to over Dan. XX catastrophe core losses. this return diversified XX.X% call we I'm industry-wide

pleased from strong generated third and and premium record We're Alan. point last below an Thank result ratio of combined basis have levels earned the consecutive you, this year's XXX of underlying improvement XX.X%, to XX%. quarter quarter a

after growth. from efficiency, led from $XXX expense prior and our X for again quarter or expectations our line productivity our focus This the strongest once combination XX.X%, year the and ever was XX% $XXX with quarter. of second to tax, of strong in of and The up top underlying gains million coupled with benefiting line million underwriting ratio on the

year expect XXXXs ratio continue XX% full be We XX.X%. to to expense to

number As our catastrophe pretax and $X.X severe record include mentioned, second billion losses quarter active of by results industry convective Alan the quarter, a storms. experienced driven very of cat a

As table disclosed our in had surpassed May. the the in QX, million XX-Q, events $XXX in the significant all X we in events of mark month

from $XXX by development We reserve Turning in driven comp total to year PYD million of and of strengthening $XXX approximately better-than-expected favorable net XXXX. workers' Insurance, favorable through offset million of number had of years $XXX development. resulted loss million for XXXX across $XX general net largely accident about by liability a million years, umbrella In Business prior pretax. accident experience of

very entirely IBNR. young terms the years umbrella accident these line, up made In almost of of are

the rising will view loss activity of we and to activity latest loss for allow patterns. been prospect settlement in costs obviously addressing While have factors we our comes the we as adjusting observed in, and to it settlement continue development and loss decisive of believe proactive lengthening evaluate

much noting Importantly, worth our year. line half years It's in umbrella accident the this years through adjustment not the for returns accident impacted XXXX require remain attractive. did our also the in of that for picks first XXXX

years tied to X levels we in were increase lines costs attorney and saw early claims in an the ago, we and when us first As of the setting rates, profitability. development enhance loss change a us sharpening outperform risk in strategies, of to and accident rep pricing out terms of in loss to call view selection, ultimately up long years our to growth immature tail our positions

large PYD PYD shutdown $XXX pretax degree, us. with million Insurance news And Auto. recent court favorable $XX on in Specialty, accident pretax. backlogs of element largely now significant that a of Home note, COVID uncertainty Bond good resolved, net In is, favorable from with net a had and years the to both related from behind Personal million was &

quarter. After-tax net from million increased year income investment by prior of the XX% $XXX

portfolio the higher the and fixed were Returns from average benefit income up year prior both again NII yields in of maturity As also non-fixed reflecting was expected, prior quarter. the than the year higher higher quarter, assets. invested

after earnings tax Our $XXX has now tax third quarter. quarter fixed in We short-term after including fourth outlook the from the income slightly. securities million million $XXX approximately expect for NII, increased in and

in embedded portfolio. XX as of the rates above yields the are money New June still

So NII grow. continue as should the over gradually portfolio income and fixed XXXX beyond continues improve to to turns

XX. holding flows investment of increased at $X.X quarter, up unrealized and per tax from unrealized modestly, we ago. year-end our during from increased with value end, Adjusted quarter $XXX.XX year gains excludes again from net management. billion and up approximately Interest investment losses, very a net to company and after ended at billion. June $X.X as X% and $X the rates billion for to cash Operating was $X.X XX the after book liquidity March of Turning result, at strong, share, which quarter were capital loss billion a the quarter XX% tax

our million. million dividends repurchases $XXX $XXX million We've of and $XXX returned to quarter shareholders comprising this share capital of of

repurchase billion under Directors. share the of Board have We approximately $X.X our remaining of from authorization capacity

billion. Page billion. to purchased XoL X CAT we $X.XX of Northeast year the treaty, the summary coverage point our webcast point Turning of we $XXX property reinsurance. which the $X.X our We provides and July a shows XX attachment billion renewed attachment A million $X placements. above now ago, coverage of coverage was increased presentation of of when reinsurance

exposure, renewed attachment of coastal loss XX% We cat $X the Insurance an billion provide excess treaty Personal of above point the also $X billion. for which continues layer to Hurricane for coverage

results. of all which net income, -- of bode profitability continued and growth, investment for Recapping was premium future in QX underwriting strong another well excellent returns. underlying underwriting quarter our our growth

million $XXX overall deliver absorb $X.X the our core to testament of pretax cat our ability losses still diversified to Our fundamentals of of strength a the and the is income billion of for and business. quarter franchise

color income a component on earnings important underwriting increasingly give an more and has become reliable To power. Underlying little of that. our

Going tax. annual after back income Paul, combination St. from the of Travelers in underlying averaged XXXX underwriting through billion XXXX, $X.X to

profitable $X began half the on in the of and surpassed premium compared then half is up in we $X XXXX, first underwriting first over XXXX, first $X.X just billion in We underlying of XXXX, focus XXXX. billion underwriting of which by through through for underlying ever Our stayed XXXX XX% billion growth, XXXX. income surpassing billion income around accelerating time resulted the $X above to

with to insurance. become results, with discussion underwriting the to Greg continue contributor significant for ability I'll low our over underlying volatility. on turn industry a short, business And each a of color income returns segment In and has generating now call begin industry-leading growing more to to

of once with year investment prior results. combined line XX.X%, Insurance both quarter Dan. top had up $XXX and was than pleased year ever. income Thanks, higher in quarter's quarter, by underlying million, Segment strong bottom prior the our We're and underwriting another reserve from exceptionally development, income. result the second more driven best higher terms strong ratio Business underlying of XX% net particularly again income quarter

all-time increased premiums property our quarter this were billion. losses to to purposes, an X modeling than second expectations. more favorable $X.X Net quarter For about of high X% written for point

Retention change Renewal quarterly business premium pricing. again XX.X%. of strong at $XXX excellent and to historically the XX% million. rate remained of a change at up of X.X%, was X% new With high was once record high driving renewal majority the

a row. levels In change was for fifth pricing line or strong sustain which premium was change double terms of pleased at we're the pretty renewal other in of in strong every to than renewal to digit. with digits workers' premium close quarter comp pricing, double The broad-based

by execution rate current each trends field for appropriately our we're renewal exceptional balances the return pure that and In of line. terms pleased change, organization granular profile reflects the environmental and

all rate Where these willing movement traded retention and with our Property property Property from and change and business, some of improvements strong strong the in sequential in Renewal property. National substantial workers' increases. and of pricing to the away Even quarter, the every returns umbrella business, after Auto in National or double-digit in terms flat compounding CMP, we was way market quarter this conditions. Auto, improved than rate Umbrella line moderated, terms accounts particular, other in terms comp led years rate large subscription weren't the first with rate In accept. our driven on line reflecting to levels, increased. several

the of rate renewal quarter change from the last from up in businesses, As high for more second points points and the quarter year. X than change premium renewal XX.X%, exceptionally was first X.X Select, at a with X.X%, of individual

but down bit optimize periods risk couple purposely in Retention XX% a targeted from we recent as of and begin ticked healthy, classes. return remained a to profile our to geographies

business prior a year that the high-quality strong in growth platform product mix having initiatives We're New from the impact market. production, and and the and and pleased of marketplace quarter. our profitable business remains this building in X% driving increased are with

XX%, renewal consistent was Renewal almost rate at the also business and and of the been point middle premium $XXX a of strong result. with X% quarter last highest levels In ever has for was Retention million or remained second year, recent quarter. XX%. that change strong the X% up X new the consecutive at of than now second quarter remained more at from around market, mark fourth change

visits, from we've with have investments capabilities tools pleased adoption Lastly, I the energy been fresh strategic field off be execution, couldn't my come team's more ideation, and and most our of recent of round the enthusiastic making. that

agents partners our best high how our I'll the local again training we customer for me crystal distinguish were distribution team's the from choice curriculum over for the shared to and in clear to an our the once our continue And teams of value Jeff. talent undeniable partner about highlight business be themselves. call as our as and indispensable and dividends trips receiving These to investments the examples of many brokers. value for performing that, are of turn well the our With

million X.X XX.X%, accounts. bottom X.X both posted lines. very on Bond Greg. loss income strong an improved segment a an of comparison Thanks the year of combined a a strong Specialty to combined to quarter The & and XX.X%. another level small strong We points prior generated the top underlying ratio of in from the excellent quarter $XXX underlying of reflecting and XX.X%. improved ratio number surety losses The to points ratio elevated

Corvus quarter, the elevated modestly discussed ratio to acquisition. due last we As expense is the primarily

of few ramp premiums earn attractive We book business for and expect Corvus in. a the we operation more the integrate to quarters that to case as continue from be and as up

change in consistent In $XXX positive that recent to liability quarter We're Turning grew new record to again by top nearly from management with renewal million, the domestic we we of generally prior We retention quarters. our by pleased premium grew high-quality with record Corvus. net that year XX% business a driven quarter is extra X% line. a high. delivered by the the premiums written to XX% business,

through our construction continued all net reminder, by next our a products demand and written be reflecting a terrific strong continue new As in business will quarter. of leading quarter XX% reflected premiums environment surety services. Corvus grew the surety to for and in in production robust a business We

And have line results strong now bottom Michael. once to turn over to top I'll and call pleased again we're quarter. the delivered this So

good Thanks, the improvement prior & period pricing of driven Jeff, losses. results the ratio and strong favorable Personal morning, line compared excellent another a in Other. and development underlying despite underwriting In reserve earned combined significantly primarily elevated drove year results catastrophe Insurance higher and both to and automobile everyone. relative bottom industry-wide an year quarter XX.X% prior net X-point nearly reflects underlying The prior year to improved by Homeowners quarter, of

in written and strong Continued increases in X% price home growth net premiums. drove both auto

with In business. improved the and fundamentals with auto, pleased quarter underlying another of of profitability we're underwriting the

to The prior pricing underlying quarter XX.X% ratio lesser XX ratio more by lower quarter as well of damage points to a due second combined the from of a losses combined year benefit combined earned and, compared than the X coverages. improved more to favorable extent, prior underlying lower year The as driven ratio physical improved development. points, higher than

points the we purposes, of roughly quarter modeling nonrecurring. For in as improvement the X.X view

improved Other, and a prior the combined to reflecting underlying well second as development. the quarter, ratio Homeowners favorable lower XX year combined as compared quarter ratio over prior year In points higher

catastrophe Catastrophe storms, lost benefit smaller similar ratio combined the were historical primarily While were XXX% XX to increases the losses exceeded continue The the PCS significantly quarter, quarter, convective resulting prior quarter, impact again, designated events they a XX-year most and average. a long-term as price had year premiums. industry severe from dollars of averages. for cat to ever earned this second

optimizing of in lower-than-expected continue underwriting our XX.X% to exposure, in as ongoing pricing. of well pricing. ratio to weigh part X.X benefit the underlying our Our in non-weather earned average years market for remain losses forward, the our course, experience most will, were below and of recent the and with models And going last annual catastrophe our large improved context, recent as and losses consistent quarter in points will The XX This be heavily share. due losses water process our share. market and reflected experience cat of over combined X our more we our fire

approximately the be and of For ratio homeowners improvement nonrecurring. underlying other combined modeling to in purposes, points we the X expect

production. to Turning

granular the anticipated. automobile, across reflecting state-by-state premium growth remains we decline, of of as balance In to Auto Renewal renewal continued and the the strong. gradually results reflect profitability portfolio. XX% a continue change change line. will the on as Our XX.X% retention of strategy ongoing improved execution The profitability moderate domestic premium to

business states, were quarter last than prior business second While quarter many was slightly the new premium new of down in year. higher the to premiums aggregate year relative in

continued the well few some manage reflect XX.X%, states, property cross-line remaining our homeowners particularly in XX%. the while change of while sequentially areas. impact from resulting as Auto to strong of our high-risk profitability our other actions, is change, challenged Renewal higher as This rate reflecting efforts Production result and in to retention growth manage remained cat results focus to improving increased premium in profitability. a at

We expect remain renewal level change to premium at through this year-end.

we policies in deploy thoughtfully As to efforts and our capacity. intended, business declined, force new reflecting

To personal to as we've for profitability. deliver the pleased portfolio profitable and confident continue a progress of we We're Insurance segment over Personal sum time. actions will lines taken growing the to business are that in we continue up overall, our with improved result take

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

to we're and up Thank Q&A. you, operator ready for open

[Operator Instructions]

David Your ISI. with first question comes from Motemaden Evercore

moving I reserves just insurance. business in pieces had question on around the a

just $XXX after million million $XXX quarter. last So year umbrella accident recent charges, comes the that of

if you made I'm the confidence and changes could that of So I some more wondering you this just after quarter? behind you maybe guess puts give elaborate this on put the and you've takes some

David, it's Dan.

strengthening and requires umbrella quarters. liability seen We've last few some right. in you're the the So lines general

to that comprehensive reasonably said early a reacting and -- we meaningful we're in prepared meaning think proactive we're what seeing. and reacting we're remarks, being decisive by As being being in way we that in

think the is have we confidence X pieces. I

going versus One years. accident development to factors allowing in for on longer is the recent actual and the both we are changes very reacting forward expected

come come these for for So yet, allowing going when in, are even to that we more but part, the haven't cost fact they're likely seen we most the claims claims in has to up XXXX then period the importantly, pretty we take of settle. XXXX. held longer through think I through and the well the given taken end that actions And XXXX had

it. Got

the Okay. any then basis points weather XQ out if And this XX non-cat And I and of Business on driving 'XX. There changes, was in there? given basis. sort talk all to improvement loss underlying around these light in of especially maybe Could baked year-over-year still guess, change about, that Insurance, was quarter clean you trend improvement? ratio, also the a within adjust I loss there was what

Dan it's again. David,

So I'll take that.

part second the with start first. I'll So

loss we that IBNR time trend. quarter, an have we every an added not current to year. had we on PYD, some impact So loss going We have to accident year, last jump-off impact quarter or the beginning it's said point reevaluate, current last

on already of we'd changes not inside some variety business there's So had the taken impact insurance, all that across result blend a takes of when did we in But big made And them line. PYD it lines. puts you and together action. The some umbrella movement. a in carryforward

the overall about There's that than loss of In the our pricing. big fact cat parts. benefit the than you've ratio, movement property underlying called got from expectations. were in favorable point some BI's terms earned X still Greg losses other out

things. have impact a Other of things dozen individual net you're in than the base terms or seeing those any there to half that, to quarter, unfavorably in of here you're movements. to those a in going significant move mix of from reinsurance favorably that Nothing the and

question next Elyse from Greenspan Wells with Fargo. Our comes

first the Select looking quarter. points. given at basis BI which did the property Is markets My RRC I'm middle due by improve in and pricing XX to just decelerated that trends, that the question,

slight up middle primary can the this see is market Select did and deceleration. in the flat, market and Greg. Select out Elyse, middle national driver Yes, webcast, that is you of call pieces and is that is I individual of the and property

additional in balance you dealing to bit just some be just sense, then what then maybe question, as And a give as by going more like this this with a umbrella that increase not the charges guess, through we're think issue Great. I Okay. to color little go the year. you just more up QX here. that saw in well. put accident going than bed us on the back following to we you've QX of emerged, more the David's to Can what maybe And

Yes, Elyse, it's Dan.

things, 'XX, range. X apart narrow it's of 'XX or more it's it giving to what the of need feel see we in again, awards, really to attorney and reacting We're higher, mean did right? adjusting -- forward whether break that have think is, both accident use And have pretty bit quarter this we're don't all we I that come between lengthening years, X. that decisive of and Things we continued you came action. jury going differently doing being this a to tail. in we're and So we the we're same, that's than what -- think in a it's severity, development what those rate expected in little the the factors to going What rep 'XX, a would when quarter's we it's little that I say proactive the

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

Are I the The surrounding court data? for industry a that? you Travelers? resolved color give Or backlog, thought from the backlogs court the to external on Yes, was I us is on referencing interesting. data more data ask shutdown. are just now little Could wanted that that COVID you

it's is relevance data. really understand our going based Alan. Yes, we But of own our our view think data. broadly, market the an to -- but on what's probably we've Rob, more That have on we that's evaluation of

the to from combined the changes or any the ratio And ratio underlying there? reinsurance, it. of any combined do impacts Got at expect you Okay. all to movements the

Rob, it's Dan.

direct bit, although on getting of line might increases have cost really. would you a we reinsurance was So little up the remind price not side. gone with about And have what we're I'll that Pricing in expected. just

So impact the insignificant any. margin is if probably,

from with James. comes Your next Gregory Raymond question Peters

areas first I seeing I'm the year-to-date PowerPoint surprised I'd accounts the basis line larger I a that for focus it at on national like like be on your net you I it's of results I'm growth by, did seeing from competitive. counterintuitive, premium presentation. positioning. be competitive grow question, top on seems to, the business account you written much movements Slide If of as Select X and of more And focused that your kind expect Market. And kind maybe higher of to my guess, kind anticipate Middle to look on a for year-to-date the what perspective. is as then

you that colors can some on provide So maybe topic.

So in. maybe will chime Greg, say Greg Dan. it's I'll

a national piece total, of accounts. in business on So biggest and accounts the it's in large contribution not its relative insurance basis to terms

So a retention. how you one in a quarter big many on retained and has lose account you -- impact could that

piece base. You big premium change business the of going to could write new that's one new

X the big. I'd really base profitability that One, be themselves it's with surprised So given tend to the things I'm small about one, that to the two, relatively national book. and variability, accounts. say Two, we're that of see accounts a not

performance we're about Select love of refinement Greg of some and terms about in we In Middle, look, commercial. the script of small underwriting both of way his make those comments businesses. did in the thinking

I don't Greg, add market and we Middle need very But X% retention know, really balance of price are anything to where we margins good, We're growth. it. to happy on how that? focused on the

that out just right referenced. better are, from quarter year-to-date, the lags, Dan they point as booking feeling terms results, a you we're quarter-to-quarter, as that's look start of how the I'd of the processing, number maybe them top of can good some aggregate And reinsurance now. But this of including point so picture, Yes, number line in individual about the really right year-to-date business X%, total of Greg, some with result to the to items when in bigger now. given business business, things at to the attractive business close just the units level the pointed you I'd you as margins the have of a a variation, indicator you

question, positioned about and pivot and -- appreciate your trying to I the follow-up Personal going get I positioning I'm comments for to the And guess right for pricing Insurance your challenged Fair Auto product. Michael, enough. my states segment. the to

gaining at guess on count largest the is in personal both good the the peers and in And your I share what's think positioning if this of visible just really the to going One look you moment down, Auto space. second time going quarter. first your I'm in-force in personal Auto be most consistent competitive I seems and policy in in when marketplace. curious with at

it's It's Yes, those Greg, everybody the on us. would the great to question. else of marketplace. say, think X interesting, is consistent with about a results. I it peer X the in with I talking what's point Not is inclusive about you're going your peer

they're take you. And for But to back, us a detail I kudos is really they're that them step of then results the it's that, I outlier. not it tried all, So and to and who underneath certainly, having. success the first say, and I would the think, generating again,

We are that success aren't the having that say geographies I'll are in the ones noisy.

numbers, important auto our and The a margins generating places new we not That it's strategy business the think that's is hampered were growth you when our our actions, to business. book the competitor writer geographies. by are business. like if challenged in by And that auto not predominantly about also some think at the you lines number property growing differences personal auto of of I being one. then We line a growth business those impacted right? by the look and just lines of look package auto in at writer those predominantly where itself, of And personal is package

what auto. also a you insisting when property you from the that those property, you geographies is order the the look though in of on And in writing and at geographies challenged channel, at carriers in agent the write look independent standpoint to many find the marketplace

brings those you not auto those with you're dependent that's marketplace if by challenged a on as competitor property high-risk it, are so in that business And property geographies. dynamics less

the say generate are ability differences. those So would those to some not factors. our the auto pleased growth very we're come with think things that where the new I I business are again, places -- and of challenged in explain back by we're those But

challenged were The new down, nearly new other those geographies new thing underneath the property is is, in than and geographies. business first you if in numbers, but you can in business it's growth look is to from the growth property particularly new standpoint, a growth all, auto business as business much new down our auto not those see better business aggregate, as much property of

business I significant out mean, point are there sorting that but personal this level. business. just out. a on to would There impact some out the benefits benefits model. And of some we're are some points way at And having offsetting from on high significant insurance distinguishing business very it's characteristics our to Michael Greg, having it's well the model. I obviously, that growth,

Your next Bhullar of question comes from Jimmy JPMorgan. the line with

cat So first, your a on just I losses. just -- question had

posted we've we higher function same to changes market be is going the quarter year X.X you're that seen. of reinsurance you this more of last cats events high quarter, seen Or assume the absorbing well, of Given forward? should we've years, going in a as last levels type that the of number the the

Yes, Jimmy, it's Dan.

the growth the the on and base premium gave So of detail at on big holding the cat renewals. January up, gone events. have renewals tail We the points July have we buy at but in X attachment really not up We're values. again X The to if more. result the growth and look to insured you more as gone attachment reinsurance naturally now into a the coverage of points tend

net not of any use through less from really result So is impact what's reinsurance. coming our

pricing Okay. just And you then talk personal can of in about just terms the of peers? both behavior Michael, larger spending by advertising the some auto line, in and for then competitor

premium would seeing. way changes renewal premium change similar at terms between of see of working price I at changes change right? number premium do and change Jimmy. What change many and to I renewal when that's our industry is business, premium their look you think in the the pricing, distinguish what's it's our Sure, taken. you're though, coming to industry we through into the across of you lagged across filed already rate important to numbers business at books looking what say look we're for when number, go-forward renewal effect that's the the being and renewal renewal premium been continue rate

time look much at and less would have this When this for ourselves we year. filing of year this significant others, than filing you last seen rate for activity see time you amount a

in lagged of And impact auto in premium is renewal so that. you're again, what change seeing the

leads your sharing. But advertising across those those demand, that what of reflective we with you're profitability we messaging think in of that advertising, I where of the pivot that consistent is both and think, across advertisers things, big in we're growth, for the industry, leads. increased who conversation and advertising of auto where leads, improved -- a certainly, see bid increased see those demonstrate some bid spend I amongst That's that appetite very terms seeing and industry for the competitors towards about the that profitable for In we going marketplaces prices the we question are our up. increased of

the next Your Shanker of America. Bank line from Josh question of with comes

to Michael, in longer who what's declines. non-renewals than geographies are customers customers actions wondering policy you given them? of property the count look their can you it's whether those homeowners, declines right point for I the out are that greater When the whether no driving want talk at pricing you auto or there's guess about that you're driving if changes I'm away.

count Josh. is Sure, business. policy driver The new homeowners the biggest decline of in the reduction in

holding with see retention You the steady. relatively

business highlights of worst-performing I some production the sort business the states good the for cat is see more my earlier, in new being I'll down with them. reduction risks work on the decline. manage in taking what's evaluating course, than that There the we hygiene, so the most action in to production really you normal property part, also activity distribution is One the and is challenged -- is consistent non-renewal reduction our PIF twofold. significantly driving say of down new say is business new And the limited as portfolio that comments exposure. the would

geographic cat of again, we growth and higher concentration, the targeted is manage higher other in geographies. The our manage some distribution as some non-renewals exposures

the my are really reductions, I again, as But part actions in intentional are to those new efforts prepared said remarks, all business as profitability. improve our and intended of as

a catastrophe catastrophes. quite decade And been a It's in terms losses. on quick question of then

cat consistent. been time, While -- you pretty you've has made over changes management were firm

has at have the only extreme looking twice program very next top we that day protection XX you of but the is risk like do what efficient the this exactly years, the the right revisit capital? Travelers most in hindsight XXXX, use really for a for years? last your You and events. the clock is XX when need been at at you to A And cat broken of

a with the the right underwriter. to way. without Josh, I you that conveying data, got a comfortable to them. on we've And think a the very analytics, We manage net being expect we're think the margin reinsurer to losses take can't this culture

that at we advantage us there's our real so of strength the a being in largely And look underwriting, we underwriter. for think net when a

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

couple question, First a on casualty. parts of

part, XXXX, lower some guys Is your a safe losses First of I remember is a auto the it of That's earlier mostly than all, is the then small first cause about writing assume you're I in that guess, with you're of a there this of bit you those market, less middle there's like that what limit related. seeing X umbrella, second experienced the years part. others. in And to ago lot something you're tail. seeing of underlying little

of XXXX XXXX faster? nature the of your of we've from to business seen the inflationary So experiences, just kind some impacts

Ryan, start let there. me

driving issue. and of of economic not a no, itself. short. for not umbrella predominantly So And in auto line economic sort actually combination claim we're into in -- terms a speaks activity inflation inflation inflation it's is saying, social This of what the

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of it's a sooner, or don't our it of our book don't -- ability In business see function else. of anything honestly think or I to terms limits

our it's think really culture. importantly, I analytics function a and our data, of our

among culture and our very our together actuaries underwriters a a our that actuaries, very, it's pricing professionals, actually for valuable story and a reserving got that this, And looks very our very can got very, advantage. put sees claims important We've We've that it. competitive a feedback quickly. loop

As a huge ability early cost Dan life advantage. view of very prepared long-tail highlighted is remarks, lines loss his is immature the of the in in to sharpen a very,

well. These that the at to be it's It's or us years attractive. a returns our -- selection. difference And very, whether continues those on And inflicting we are you're adverse adverse this we're very IBNR. very predominantly think looking selection Again, years subject very to in early. actually positions

So I interest in it and a competitive is Travelers. me, But to ability see too. for in the we're to this really advantage it our react it. get interested Believe

it. I guess Got just Then a follow-up.

of be that accounts. Select it commercial retention think Id seeing that mentioned kind elevated mean, small if year? account? is I are commercial word -- the guys this Or a or curious accounts middle market u think is more extent lower Greg heard the a are, I if you you national I in geography, to more not, lines, is of in

And that and any is this just our good Greg. not at normal cats going looking risk seeing units And that's the business we're going a geographies individual Ryan, and folks market we disproportionately sensitive, Business of get Select it Yes, that's understanding of certainly of to on the across through in need better housekeeping aren't to Insurance. what's return business but as underneath parts share book statement. we're profile. it's where that going and the

business day. of kind a we optimizing do every every It's in

from UBS. comes with question next Brian Your Meredith

couple of A quick questions here.

June was about see is little some talked there in throughout I'm to you Medicare trends. legislation past just Florida, if U.S.? comp comp. how and workers' you doctors, reimbursement continuing rates something that passed in bit have the loss that that could And one, will I curious it severity affect a First guess maybe that would about cost pricing talk

continue emerge favorable Brian, expectations. what frequency long-term trend a continue about I and say basis that look severity, both to and workers' on to our would is pace to loss comp we at

long-tail that perspective to necessarily out that's seeing respect a for and So the there's lot we're impacting have a of of adversely but nothings liability. line, there we're going the it's duration

that a They're you those in state at our product and come what And pricing the that state we are some estimating are the terms and changes as any that mentioned, level. over factor change of in. see specific at we time trends bills Brian, in looking managers of

marketplace. estimate to So in reg the if and that plays out new meaningful, and think certainly there's how we there, an it's we take it are out a of going

E&S of you've why in and change sudden of on -- the more And think the you change clearly, all here this seen mix? known call it is overall, strategy curious, I'm it, in some a U.S., standard change, those kind question have that been player. you Travelers mid-market E&S larger commercial continues but in or your great second here business typically will the larger markets. of gradual the percentage kind do Alan, And the toward as And capabilities. you're Terrific. become focus of the commercial building out. growth like seems and not your sudden largest E&S just kind for

strikes future. and Brian, will we lines substantial standard that rider, for to changing we -- a be the E&S foreseeable here. not time. so any would We're predominantly long And continue had for are I capability a very we've

paper. of long been got time, So property E&S North E&S on a for lot business. our has field We've written a our national business

E&S paper. our got & Bond our business, is We've Lloyd's what Specialty some do written on of in we business

time. ebbs E&S in long a in flows And out long time. have been been for that we've it's capability business So and a had a the for there of and

capture it. into is and of our flowing part it this been ability so what's And to

we've it as opportunity, leaned E&S attractive we an into bit. seen addition, little a In

I have what Fidelis done Corvus we've contributors of our think acquisition and been those with too. and So

opportunity margins. So, of participating this stretch out isn't at a any very but an there's changing attractive of and it in strikes by we're imagination, there, the

comes KBW. question Meyer from next Your with Shields

I'm the does sent casualty guess exposure this does is Chevron -- to first not lines? for impact sure who how I various Supreme best but that the question, overturning Court Doctrine,

whether answer that I mean, on next. Chevron. at head But we'll whether might that that maybe call. say the and off in to I imagine it's this regulators to I whether if I loss to are that administration to activity regulatory good I'm -- But really trying it's changes you I from on see you'd significant the the answer don't and from how it hands But who top a to speculate one us of place all not the Frankly. something time want any be not that the over our my over. too expect activity, honest, decision to -- how Chevron to think we've know all because guy, really is that that, contributor make document, or Meyer, I run on to hesitate impact to and be of there's at for want depends impact a early

Okay. for Fair or do Michael. as non-catastrophe outcomes guess, of I enough. related losses, And second this unrelated? for and you look at When catastrophe inversely weather is those think question, sort potential the being the you of

as and about to -- from really both And that on weather quarter. weather about just talk The didn't non-cat Meyer, I That cat. case second non-cat weather case of less on much a think catastrophes. benefit result underlying elevated the and what just personal a this really year. quarter, the the talked so non-weather standpoint. gets in this of losses a the really it was it see we I the the we actually expected weather about That classified water we it point year. depends quarter the non-cat had it in was in last sometimes had quarter, talked because insurance, When we'll fact was fire a put we about because this

matter. some depending they're a of relationship events an cases, but directly see little and are of how inversely significant weather related the in sort the that inverse of you'll footprint not So always bit or upon related for the

there's a of and that us so but business quarter that was but would this we catastrophe it unfavorably mean the we as insurance. in when impact weather, this in huge, obviously, line our weather did or small what about report -- I managing favorably our peers. in of see Not do a would some a think have factor you of quarter lot it little we're for it one, bit as

Mike with question from next Zaremski Your comes BMO.

the upward if of loss casualty would expect about but and on not. kind of of -- the thinking being little expect ahead current trends, be kind you is to proactive competitive maybe would industry Just lines, in of kind power on the on stepping insurance, more stable? especially indeed, Would back a you trends trend of pricing there Travelers focused for Or sloping and business terms maybe commercial maybe in an the environment others side.

outlook think to I very be we're here, casualty. change by in we expect not to But particular, will strong from going renewal try pricing. that give say on positive hard and would Mike, driven to and continue price I

experience would to of expect bit Now it uncertainty line heard that casualty means you've from don't up There's whether I the others down But I know. lines. out one a say or remain a another. relatively about little in bit in really And a lot their strong. we little there. or

at the more look more coming from to Schedule position honestly, position, expect relative of coming there industry industry. our Ps, we As be industry. that we we look to the from be at expect the there to the would we When

would say, positive casualty. I particularly strong, driven by So and

by kind convey can you investors? the were and Are PYD misunderstanding that. ratio you on to us on to Got a focus profitability I unpack it. And underlying wish and that consistency. were issue. levels? IT Is global you live what And more was transcript bit longer. of less quick to of tell Or you was a a there to some you about there trying the just trying there's am I not feel, us follow-up, this you of kind remarks underlying But meant of and talked -- message because Dan, that made I loss what and kind prepared

No, Mike.

So thanks for listening.

single that's line around sort I growth at was time. when rate time pretty low much of pretty digits was started we and bigger underlying again, and of the underlying period a was margins. just steady it main of a accelerate top that for sort income was think a when then The underwriting of a consistent point -- a written And ticking base of of around income. of there and was that into long fair period was amount premium gist did a where time, level, it translated of underwriting XXXX, was the period reliable to growth time

where there, But up last to we going at year, quite XXXX as reached income, if after-tax percent before $X we're stayed billion billion $X underwriting we years XXXX You compared to the in say can't go we crossed and and come crossed in XXXX far to the in of in then never billion XX-something half X underlying the look $X you that. like the to so we tide. -- in it's just first

-- was think earnings underlying is was in the X X but us that a power don't sometimes than ago. different really the it it of completely So having ballpark years just I franchise think or grown, of people as

much And that's Mike. the that. important underwriting about I'll the contributor income well, bigger, when that's that. important at various an And leave When point, power And that reliable you look at earnings think been Travelers, to has you the much line the of underlying things a bottom more contributor. the impact it

more Huang have time Morgan question. one from that with Bob we And question Stanley. And for comes

Just benchmark maybe decreased workers' comp little Obviously, rate bit. California a by X%.

the your the about should maybe And go between and well more inflation release we talk just quarter? for cost book your back position about think of comp. you dynamics your As severity the medical work, up, about overall also more million going frequency? to reserving workers' the people And pricing, think we on this as how $XXX can then as

-- -- is. Bob be comp there, not extraordinarily attractive. honestly what's the to workers' question and continues not So I'm what I'm sure book The

like the can good know leader feel me let the so balance like we mean great if there, are responsive. returns. We the and very We We the sheet position. a about I question specific be it. market business. at We there's

Yes.

trying frequency from get going, at that's And think where I rates ongoing think more you the Because given right? trying cut to expect will of I'm to position up? and how office, that cost go understanding after better we has Maybe people to you comp are, reserve got Sorry. go frequency book? to up going And increased, least quarter, back where are to. medical release Should take we more from severity a this just of which off. the about $XXX are I'm here? the million of that that just or workers' get to we should the where fact how expect do reserve about the should given given inflations

Yes.

tell mean favorable many continue quarter So I had reserves to book. you behind that, I sheet after or to we the for can positively it's that balance about the what next in we've comp know now. And workers' don't the sitting many, quarter comp many, development be I the going quarters but feel line workers'

that frequency been project been has on and not and decline. long-term we're the again, where long from early it's look, the to make And secular In necessarily terms call of but severity, a home frequency it's that's followed going, to it. a decline work a on pandemic going it, term secular on probably that's too

But frequency of from of to that's and troubling things. been at the go duration And the back very given here, margins, think us we people little about liability, those be if as it for respectful severity wouldn't work positive. as are two we've where bit, because that probably we always particularly the ticked done, and up a came

trends, loss and go. and to long-term to where is could we back as book it's we fine line continue and the going frequency severity feel And to trend it if about and where so go so

Okay. just homeowner New the revolve it. Jersey was know that sneak I pricing in one, price. can I significantly. last If Got up around the

curious if Just homeowner the about increase, there's rationale what's New Jersey's any? pricing the

New homeowner You're Jersey about price increases? asking

Yes sir.

by homeowners I in driven is mean pricing up rates. broadly

a it's And it's the that challenging business And dramatically a from been the pricing really in place environment. of actually of driven state. loss has standpoint. the shrinking we're book Jersey by one New reasons homeowner's actually

regulatory shrink write challenging Jersey right our standpoint. regulatory is business again, If we challenges the approval happy to of been, get has to So really a we dysfunction rate we need could we'd loss think need, a environment the there. from that be book. significant And there challenge. the are But then driver that for a the now, New

to will Ms. closing Abbe our concludes And Goldstein I for now comments. question-and-answer turn back conference session. the that over

joining good Have follow-up, out Relations. And Thank us. to you reach as Investor there's very if free feel any a much to day. always, for please

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