RenaissanceRe (RNR) 26 Oct 212021 Q3 Earnings call transcript

Good morning. My name is Thia, and I will be the conference operator today. At this time, I would like to welcome everyone to the RenaissanceRe’s Third Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator I McCue, to Finance Senior Relations. time, over and the to Keith Vice would this turn like conference Investor At President of go Please sir. ahead,

financial for you. closed, market our our Thank Thank issued call. you release. morning. third after Good we quarter results quarterly the conference Yesterday, joining

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am that begin, results from discussed. we statements today’s those may differ to actual forward-looking contain I and Before may materially discussion obliged caution

factors President these Officer; Bob regarding to call the Financial Chief you. like Qutub, turn today’s to Vice now us to in Kevin which we shaping filings the Executive over information outcomes direct With found can Kevin? discuss are President and results RenaissanceRe’s and Additional Chief SEC O'Donnell, be to Executive and Officer. I’d Kevin.

call. for today’s you Thanks, thank Keith. Good everyone, morning, joining and

increases, we benefit accrue in the will of the last P&C of will the our believe we Regarding industry was this experiencing said, significant to our to difficult experience market years. a financial results, the that That shareholders. rate continue five what and which a have been quarter continuation over

third the discussing by start Let’s quarter.

climate I the losses. will comments where have on catastrophe and large losses, our social caused inflation other property elevated drivers business focus change, loss primarily Given my

proposition to have an reinsurers component our significant value expect, share is customers. volatility absorbed important this of volatility. would Absorbing our a you As of

Over have for Ultimately, need delivered years, the for our and we period sufficient paid however, this risk over not were adequately five we the for we assume they deployed. on be have shareholders returns five-year recent the past that promise. to capital the

us has since in than of response, build change one expansion we this capital recently acquisitions the this best that continued our set a industry and to returns experienced the Platinum year’s Capital forming with and in our founding Partners out raise, syndicate, time with we marketplace. XXXX. generate which began any in accelerated the have of Our Lloyd’s our afforded capabilities business last We to In scale experienced needed journey TMR, reinsurance ability by superior long more lean time. the culminated have with markets into the and of to

our point an at now in inflection are We evolution.

an succeed We have inflation climate low an have is in we by organization change, what built rates, capital, social will interest industry impacted now and that to abundant monetize time built. it third-party

goal sheet this achieve fortress absorbed Our as losses. quarter’s this an help balance will us easily

deploy to at probably have history. which time recent capital excess provides at in options shares us been trading other levels, more any Our attractive than

our XXXX. against As to places to strong opportunities into an deploying our other you repurchase shares our saw, we shares versus capital position higher fourth expect so in business. to continue quarter and excess excess do the to capital in increasingly our thanks hurdle attractiveness continue of The

underwriting. allow This extent focus pricing only is and achieved will We profitability on discipline hurdle competitive building our to portfolios the rates. and growth pursue will expected have clear efficient to underwriters business stringent through to scale future new strong

At on we This times, any capital. results reducing risk discussing to these discussions do create returns fair engage am needed the and our believe and will not may absorb to excess our view developing returns prove business to clients, pricing continue provide will are the We volatility. difficult additional structures of superior with our shareholders. I that in comfortable or for that challenging.

We I that to portfolio enjoyed a more increases with, market three write the rate has years, ever not in which will over last will five said, years. material effectively. the XXXX. To expect tools the manage have if larger and have steeper That through. we in property last it than more begin the been Rate increases continue casualty earn similar, over market profitable to

Going to forward, industry across the rise we will for several continue believe reasons. rates

continuing results several years. lagged have returns for industry large to realized due volatility, First, at expected in the

have reinsurance industry, of are the As thin capital, to earn is and wearing substantial a their capital. profiles requiring Investor third-party return to in volatility. increased patience particular result, accept failed proportions of the cost they

will cost retro is retro be the exposed more will has capacity attachment accepting and There volatility. the protection decrease we expect trapped income is due rate. poor push of and Any will to will lower We will Since substantial reinsurers capital. available risen, statement performance to capital. shrink up and earnings so shift to attachment less reinsurance move level, of likely further supply that from volatility retro points, an

climate will plaguing inflation primary carriers industry hedges fourth, change for will against volatility. the Third, and And continue costs. own will persistent losses the price loss and up fear demand likely inflation increasingly social push their of raise

I that our and the now expect substantial these profitability. reflect for beginning will We the Casualty of the note is of rate will to improved further that supply and the products increase dynamics three sell. This demand improvements should in we also rate the business years. increases reduce various result last

I the it and initial our But an quarter, Casualty by our profit. will bottom contribute underwriting in second this discuss We to share further the losses this the result, future. X will we still a line ratio anticipate increasingly As in of my that of segment’s reduced made to points. comments. absorbed cat Casualty say expected half loss we suffice

prospects. I to excited So look about forward when I very am XXXX, our

if business the to add portfolio’s across maintain to us grow sheet balance current desirable. rates even or our profitability. allows underwriting will our portfolio fortress Increasing Our

update I leverage performance management capital provide will over prudent turn generate basis. percentage at will bottomline financial Finally, it quarter. performance discuss opening to the the the to Bob for concludes profitability potential more a I to on of call, end our will segment on comments. the first my but of detailed equity That our

Kevin, and Thanks, good morning, everyone.

that As there out, to quarter. but reflected for our Kevin want pointed this take two performance for active will results in away. main an catastrophes, is the which discuss you season was our detail, in points I are I

sheet by we how actively maintained balance First, for we shareholders that create deploy have value gives tremendous managing capital. a to fortress flexibility us our

profitable, underwriting repurchase to equally, at our we can sufficiently but attractive if We will grow continue shares opportunities multiples. are

direction that this invested we trend and Other to year, the Property, recognize in in our Second, business have we to results a and positive continue in are starting and these financials. grown Casualty

This in quarter ratio Casualty percentage we expected had loss X the confidence lower our by points. to initial

move start January my going position, comments Other into last loss capital attrition the has in and improving the as about a three With year. mind, we of profit. with portfolio this for will a ratio drivers I thinking results discussion of with the the you managing our consolidated to Additionally, I then were how renewals. our Property beginning capital we steadily at of result will activities this of been discussed management

advantage position this of expectations sufficient liquidity losses The it. excess and future were our So to us capital remains flexibility to to $X and the take quarter weather-related like strong. of We which starting to capital within and billion, capital management, an materials we have active generally hold with is buffer large capital an absorb share gives repurchases, up opportunities.

As we XXXX, are to with position. look comfortable very excess ahead capital we our

is first excess shareholders, capital to have to our know, As business opportunities, we doing this been to deploy and to into profitable you preference return always second, year. the which

still this past. grow attractive, rate our higher has in attractive valuation our because valid, Ultimately, our it share. hurdle underwriting is but opportunity tangible explained, value Kevin stock goal is been framework the than is for book per is an to As so

Going that. into multiple provides fortress renewals, sheet X to January just our do levers balance

if anticipate capital to But at returning to risk increases support roughly existing pace shareholders in capital earnings. have will XXXX our and our to to continue we sufficient. net We we similarly, equal sufficient prove grow a price

undertook management the activities now framework from quarter. we third the our capital Moving to in management capital

in the preference shares in our a and third Series used we G the quarter. G million preference refinance dividend proceeds The shares. of $XXX $XXX million perpetual we has mentioned the Series Series of call, I As E to issued X.XX% X.XXX% fix last for life our

As million. a equity result, by preference we increased our $XXX outstanding

the at for XXst shares We just per at Subsequent $XX about an million third million total, quarter. losses we capital at provides shares roughly and scale an common and repurchases, large shares last our following quarter. $XXX price per an value out equity flexibility end, quarter our This in This this to an of flat improved share X.X about after $XXX to book effectively and to to year’s times and the share and of common per average repurchase our works equity our share, $XXX the Even average repurchased preferred X.X additional than In with count of was less is execute current shares as about and average of had price over billion immediately to equity October repurchased also price-to-book with end the we purchased position of $X.XX value. million us million active raise X average compared strategy position efficiency. XXX,XXX XXXX year an end price have of of XX% share. share $XXX year, $XXX reducing continue by million our weather-related for total. our for total

the results, contracts. driven Ida, and losses loss quarter. the flooding loss consolidated million net our were of negative a net by losses from Europe we $XXX $XXX These reported from of large a million for Hurricane in million of impact to now Northwestern aggregate Moving from record primarily the $XXX operating and weather-related results

I return common Property we $XXX return premiums average million XX% the As a of equity will and annualized grew million. three million the drivers negative gross on segment profit, where XX%, with with written annualized reported our and Casualty on growing XX%. equity growing segment shift $XXX underwriting operating result, or of income, common negative to of $XXX starting now by average

quarter to XXXX reinstated premiums reported This related of premiums compares $XX losses. $XXX weather-related reinstatement the from million of events. This large the large loss to million QX

a Casualty come points from this the from where quarter of which $XXX the in We and Other Property million percentage premiums we growth of ratio billion year, up written premiums, the has reinstatement were reinstatement track to $X even billion up we premiums. Excluding written net Year-to-date, $X.X Most these and when are premiums were losses increases and of of surpass growth rate year. losses. to reported weather-related XX%. have excluding XXX%, seen strong combined comfortably remain Specialty this XX% for and on gross underwriting XX in large

XX are Specifically, floods. and from points European Hurricane Ida points are from XX

vast where $XXX quarter million Property year-over-year, by premiums gross reinstatement large loss increased our impacting property of increased Our premiums the million segment class with events by the written majority from business. $XXX or third in the catastrophe XX%,

added $XXX in quarter to combined catastrophe and up a had Property growth by reported $XX driven Other with XX%. the in decline weather-related ratio. the and wrote in third by Property loss property excluding a major reinstatement the in $XXX that large this XXX% or XXX% combined catastrophe a nonrecurring is and ratio million Excluding excluding of points segment, premiums year not million of driven partially of renewal million property period current XXX or bespoke down accident XX% these we XXXX. a few Property This XX% the -- property We losses growth deals which percentage is was or ratio for the

XXXX. property been XX to business. has since in favorable current were Other catastrophe attritional this accident also both book ratio property other reminder, of contains been percentage from our XXXX risks. and last points of of large weather-related of XX related the year Property points events The Property business XX% improving attritional There to in class losses. steadily and development The year consistently a in the quarter, has XXX% the As loss XXXX primarily catastrophe large included below portion catastrophe

our billion, $XXX or growing results written reported Now versus $X XX% Casualty premiums quarter. of moving where on to gross we the million comparable

rate have the trends we positive more seen the we have are over received information, starting in Casualty reflect As to few we years. last some of

was XX.X% year loss percentage and is ratios. ratio quarter. current favorable year business initial X fluctuate going a ratio ratio losses XX%. was on current accident we As of items weather-related points, events, this This ratio many to should year the X.X one to accident reduced percentage expect other mix loss quarter, accident based we The loss in loss the The Casualty loss have our current expected noted, and added which by effect for factor combined on points ratio forward. these Kevin and large the

up large months. third has Excluding enhanced weather-related capital in accident premium XX%, year remains leverage both the earned quarters achieve last base, in the the and growth impact premium to improved the respectively, and and base margins ratio current several events Casualty we last are and the XX% XXXX. compared demonstrates quarter, of months XX This our year while segments modestly COVID, are full initiatives in these from to loss the catastrophe increased to XX over flat. These an for Casualty Other following Property our starting improved

which the losses XXXX. million, of Total fees, driven down recent by driver Now quarter decline losses primarily profit, in year-to-date moving fee deferral the our to is large weather-related income fee quarters. management which This of the were in Starting $XX of with management which compared impact in income. DaVinci, triggered was fees. on reflects a to second

to future venture expect recapture related growth We joint they point to our steadily that and position. time. fees vehicles the to these should a DaVinci profit management increase over the net fees general, are quarters In at returns in in

reverse due them up Now which reflected our our Overall, the in performance This reversals. non-controlling quarter. XXXX, losses moving removing which reversed fees need joint compared relates primarily a interest in year-to-date negative the shared to In to million we large as partners however, $XXX this Uri to third of have booked the losses. underwriting from fees, been we of to This were by storm winter previously result. performance low difference year, quarter quarter driven performance with ventures losses to third of fee redeemable, weather-related performance led XXXX. fees, to

offset point, X.X retained remain duration million credit which driver that composition consistent stayed losses X.X% We our some the decreased realized $XX constant unrealized very total we from and of income investment The million. portfolio and the $XX our comfortable investment treasuries, investment with expenses. that to increased I The a in need modest spreads resulting expense fixed Turning is portfolio quarter came This increase and fixed retained partially now by expense losses Net realized third million, of XX%. million our income. which this portfolio XXXX. of was interest support second these business. by related on medium investment maturity to of profit, at our the $XX with four the on widening it flat of remained with liquidity to rates unrealized our with on sectors. primarily was in of and yield portfolio returns a were longer in to a slightly maturity years. $XX underwriting believe our to duration percentage casualty provides consistent which points the and and and some will turn Starting At XX%, to is acquisition to expectation. ratio ratio,

ratio ratio the quarter property in As reduced our acquisition was profit primarily to expense related the decreased percentage the XXXX book. XX%, low with points in mortgage third acquisition to to of losses associated premiums. increase The by reinstatement due in a commissions reminder, X expense

comparable Excluding the premiums, expense of impact ratio property increased the reinstatement from quarter. the acquisition

than ratio property business As acquisition typically higher and Property a a cost Other reminder, carried the catastrophe.

expect Property would the becomes part increase ratio a portfolio. cost Other our acquisition to we meaningful So property more of as

some of were absolute I quarter, back but point on third operational one-time a X%. before to on flat an the which excluding sum On other to after operational the Limited sale like operational earned UK percentage This the net in X basis, the last of XXXX. the quarter ratio of developments. with impact is corporate up by of divided turn and tax expenses expense Kevin, moment I’d to declined direct premiums is items Our RenRe and loss it spend global expense from ratio, And our broadly expenses by the was year X%.

on last tax a the recent tax. OECD’s XX% setting global X, X minimum mentioned between corporate closely Biden’s I U.S. changes. proposals a a for the announcements and The work call, we’ve As on following framework announced Pillar In minimum many to global countries October, and tax. been on institute President Pillar OECD

However, clear. about practical yet most not this are implemented details be of how the would

We monitoring are this continue closely believe our issue that platform to advantage. and with global provide will us operating competitive a

across impacted natural seeing are So, positive segments. by in momentum both results conclusion, were quarter for we while the our catastrophes,

taken have into build a our I will that, X many shareholders. built have to provides back with turn value that to January active a management and We the to very over levers And renewals approach balance capital fortress important Kevin. it for sheet going

Thanks, Bob.

between loss will catastrophes, Property, it and helpful of including would minutes I to evolving natural usual, comments climate with inflation. due the to the spend drivers be Starting segments. and my a increasing our thought As divide few costs change I Property Casualty impact the for discussing

to in decades, invested risks RenaissanceRe is on It its competitive climate understand in take. is large significant the For we almost It weather heavily Report. a aids IPCC influence continually the updating and critical. of Sixth the of to Sciences two a of part recent us latest the as us Risk have science, impact on that climate models our we this Having reflect such the change. provides investment. advantage impact this with ability assessing Assessment also change

models. a the baseline since helps on constitutes further other historic for the the last In and hurricane view influence that believe average to guide inform that example, hurricanes refine long-term assumptions elevated we of due new the vendor risk the an models for future. which serves record, of belief appropriately hurricane of As present on change, our risk climate’s more our the the a research poor that that XX which Epoch representative climate recent hurricane the from depicts is XXXX our many as the the baseline Atlantic decades wind words, underlie years active to a for

of long-term the some elevated both severity, and view models view modeled the as above increasing that into expected and the of industry change. proprietary the vendor It’s models. significantly wind losses context successfully note frequency is climate well storms in as changes not are and risk. hurricane risk and in climate This of hazard, reflect our and Our this frequency view those incorporating Atlantic frequency severity, to of our view our change are while cyclical in nature we tied impact important to supports that of are of severity,

while statistical P&C So the we only fifth the and in then events are is storms outlier that U.S. arrival the absence strongest issue XX-year to understand that to to increasing the inflation The a fraud more heightened price of for it’s important to as to result U.S. The hurricane Hurricane even cost in it the not building a plays of over the costs. and for in industry. this time. storm are much likelihood, change, is can falling disruptions due frequent, shortages, quantify. and attributable though to which Price Ida five-year elevated way is climate loss the the and increasing truth inflation chain factor of should does prices since the role getting for are stronger in is is period supply climate fluctuation and in the period In Hurricane out industry all change, change, due is not being a labor is also characteristics projected. rising to commodity hurricanes. affecting losses are difficult more there rates land than enough climate a was Unlike as influence simply clustering social its more that And in in energy recent generate prior history, ways then statistical losses same average costs Ida’s part of Irma outlier model of systemic tied catastrophes, outright weather for, land falling not that activity. similar inflation, in

influence adjust that that other know costs. of these substantial our climate are modeling, losses of and these waiting actively years, change, One doing indication that the successfully we expectations. again we and is We Ida changes. natural assume. of below also over about the hurricane can accelerator this in an suggests our models severity our a to So capturing our for which view in that have averaged that catastrophe paid we frequency opportunity we actual confident we United had risks is while year billion we focused so on modeled average strongly This be for We believe that loss are represent factors recent $XX.X accurately be believe adequately we models that five of the Consequently, we are being this. predict. States losses last factors the with will the test within are all appropriately Hurricane

For estimating currently $XX at PCS that loss is is example, billion. Hurricane Ida’s industry

industry XX Our about is event, event the about other in a that extreme in one not Ida large in Gulf, a one indicate a five for loss U.S. an for event the models year the outlier. words, but year and

billion The third likely Europe XXX-year the expanding our billion to the flood is and $XX also flood $XX influence is experienced the further taken view, U.K. quarter is be evidence industry in change. European return burns of Burned climate event, for of in a barrel together. period large about which XX-year to of a to which a

our Moving to focus on January of from shift this renewal. discussion we time of underwriting the This X year loss is the drivers.

of optimistic to find construct ample an that are portfolio risks. We we will opportunities improved

and to rate lines. our was increases. to weather-related over to also business be by Given focused impacted rate relative experienced cat Other Property, increases has which and Shifting which substantial business, Other Xst the quarter, was the losses this larger losses particularly better the years property prior obtain rate QX, and in the underwriters the Property on dislocated quarter, smaller and effort to five large will conditions booked our already renewal. terms losses property experiencing the other January increased market substantial last This across of at our expect

leveraged expect with portfolio. to quality and built on segment we high Given property quarter, This underwriters trend space, favorable enjoying surplus comments. of in that initial definitely the In this as market we cat-exposed our so have Property been ability the to most is write has we increases. and expectations far gross a proportional at in a emergence, Other I into continue. the excess active Cats discussed billion basis. am rate insurance or and portfolio than is largely more writing in is our attritional construct This his $X.X this performing continue our aside, lower dislocated delighted realize loss and Bob from the impacted XXXX. Other premiums portfolio general, this to material lines Property business above

Let’s now for to the protection ourselves. retro we that shift purchased

losses, likely will more available we and may be more expensive weather-related purchase net. that this is XXXX. it risk Given take in protection retro the Consequently, protection large less less and

this are of we improved outcome. potential the with comfortable expectation rates, With

to the segment. our the to across Specialty Heading lines of Casualty rate business multiple accelerating enjoy January and geographies. increases continue and renewals, into now benefit Moving X we of underlying

and our book ratios expect will we quarter combined our If continue to expected course over that show as loss this discussed, XXXX. previously ratios As and pricing they are, continue casualty classes. initial of trends casualty the reduced lower some

merchants. moving is season and case, see until recent loss the our of cautiously more year information new we reflect team should evidence of to reserving As favorable be

in extended book above believe adequate see rolling continue about we change adequate market a the casualty while being period XXXX. after XX-year trend, loss our rate casualty discussed of to more period, rate an reductions returns over produce to rate until we up rate is have We required

Casualty XXXX, planned simply the the by enhanced which already by we news are have earned leverage market. expect premium net million. demonstrates we ongoing $XXX that an we to growth we through good premiums written, improving aside the is putting grow Finally, in beginning achieve, have organic for earning This to over portfolio

Capital Our business be platform. to part our growing and core a of Partners continues

capital the billion, growth capital about represents allows generate market grown by which partner of Over more years, the bring $X.X a have we annual and our us past compounded approximately to XX%. fees. five to rate This

remained are Our capital accepting. turning have schedules more fee away we and we are constant than

to but the asset rather solve matching efficient most to is and funds an capital. accumulative, -- sourcing by most most problems ourselves mature. a for not Investors the are customer a business desirable accountability. importance governance to structures, that see This clear risk with We managing are capabilities responsibility and strong the audit as more with of the internal ESG these and demanding understanding accountability robust respect continues managers transparency, and building of

and record was in this track a difficult we liquidity renewals we marked maintained long-term with head advantage believe space. competitive risk to management sheet. enterprise January framework, our Given considerable we losses. said, material a This operating robust quarter That fortress ample and the a by balance X net

of January questions. have generate shareholders. our for it the for that Thank Our an superior bright turn fundamentals with returns are the as strong, X will increasingly will that, And will opportunity over to portfolio such we profitable I underwrite business our prospects are and I that you. believe renewal

Elyse Please [Operator Greenspan go Instructions] And with the first question will from ahead. Wells come Fargo.

trying first piece throughout the to Hi. am some of comments I on together morning. Thanks. My just is call. the capital. Good question

in sit guys capital to but you middle equity right, of quarter excess but just exactly today? you let think have Just were your you where they put, line, how after they are know much willing equity the I raise, said were hold us below buffer, I levels actually billion because capital? know that to does But in to was and last up would of year. in of that terms excess the $X like you you said, today where second the are

I say are well. you doing Elyse. Yeah. did X.XX. Thanks, Yeah. Hope

the second capital remember, in our building Now our started raise we journey out in quarter.

really portfolio the the off second comparative that’s quarter, did So investors. we referencing But we’ve and out end quarter I to the in raised print the the back unrealized earnings in first on about share of last there. your buybacks and as return talked think I an what quarter second did the gain it of I based the and based quarter. to in We were terms comments reconciliation in my

other I that -- to XXXX, we capital I out we make what desirable growth second excess we some going just there are clear. not sure that’s to it on think, building capital, Kevin are we’ve seen. look talked Your is I want And as constrained, about, to the pretty mean, as and question book, our that’s of

looking that, that us are be generate we that, we to capital we we future said But for earnings. probably also in will on going the next higher with of based to in come I as may given comments the same We return off opportunities my reserve continue see XXXX. vein, of excess side will at capital can able think, in well at on earnings that the that year portfolio, that

of that So when million within you of that, say buffer? higher side $X range it’s

Yeah. be to billion. It close will $X

keep will through year, as manage see we the go -- continue and we we will will higher it to that. We

industry Okay. year highlighted, Thanks. we’ve go coming guys are X And been that just a the year you -- you that, right, heard ways. if years, across then my follow-up high few every question, renewals. past January Kevin, -- in the over said for it’s cat different for we lost over we the you back optimistic

just this cat to as What more we to to but write know you guys the Europe? in of I and market capital with things to what need and think and the business happens dealt losses shareholders? the cat do best for industry and we property still what a So return closer, based what’s you U.S. happen less incrementally do you with change off ways the away has are outcome, in year get

Yeah.

discovery a I and where we to. think great a lot point price that in are a it’s period really can we we have don’t question of

drivers rate will that on get try be the will So for think what we is the cat highlight what the in market that be that us increase property to we to the take. I resonated I

I amount think the I they demand think the a already increase is, We’ve are to say that of believe, like supply would imbalance. purchasing. are buyers few I would going a and large way have, they to that it seen we about protection

always is have portfolios they the on I and impact their continue reduction at retro will pricing a reinsurers that done think in the material to service the ability effect of the margin. to have and

improved I points a significantly significant to not rate rates we conditions a Europe go and double also and digits a strong will on in And we I of should think achieve optimistic we have I we I as rates term attachment when particularly expect. at reduce probably will see will risk what shift the there see say So adjusted rate, hope, sense basis. that I and used more economics, certainly, to and in sort willingness up because be in be think will see the level. feel -- should improved will I we I terms will a -- change rate and a

the double-digit and the And in in U.S. Europe? both

double to us, we digits it it. Europe is less don’t and certainly important get if prepared deserves are to but reduce we

probably is than more attachment I think important point. the Europe

the So if on in we double-digit will same get have risk be improvement risk rate adjusted basis economics put a -- satisfied. on adjusted a

Thanks Okay. for color. the

Sure.

ahead. Please go from The Shields will Meyer next with question KBW. come

is any question you’ve losses or seen better? I of the key ratio components there, you sorry, Great. been in I Have improvement. rather of the Thank worse of -- getting Casualty loss sort it’s than guess and Specialty you. terms loss very trend descriptive that segment.

expected always XXXX pretty XXXX the in prior we you more investing bit basis good, a when us on would news The close into and reviews forward book. our It’s there’s challenge the where bag books. were quarterly mixed and to to of for the good we say, I is in growing time do that a improve. was we a knew and book actuarial your a general, is looks at market

So, we are expect to XXXX, XXXX. really biggest that have portfolios and be the

better others seeing our So the with significantly others. in pretty be we we portfolio portfolio, What than is consistent are our shape I writing will what are book. in a of balance proportional think, because seeing, are

That’s and accomplished And on your to pessimistic get update. you’ve about an just what’s been was far development been Okay. Florida. know I wanted fairly helpful. I I in for perspective hoping so

we and grow easily of opportunity the markers stressed. look probably what’s the in it’s be to market yet just just, continue one going are because renewal. an for in our midyear at legislative for change growth is our health more continues Florida generally to market, I Yeah. radar learn done might as that see There to transfer Florida is the not X/X. in performance the XXXX. look at renewal fact sign is is That’s happen so citizens that a be that likely of in the real the honestly adjustable citizens, to to for often the see to is Florida the What dislocating, screen there to a and which of to market hold is stress our to on flat begin reinsurers into at beneficial is PML rate. building we’ve and X/X X/X

relationships great we’ve So, got down there.

impeded We back we should to several grow. feel pulled last the decide have I don’t years. over But

Perfect. Okay. much. so Thank you

Sure.

come with Please will question go UBS. next ahead. Meredith Brian from The

a your the questions the you billion gave that, losses given Thanks. demand curious, view Yeah. surge inflationary just couple how industry of here, and you what PCS into event. do the Ida Kevin, for What’s first, environment? of $XX us factor loss in the

So is estimate, not the billion reasonable NFIP. a $XX including probably

standpoint, numbers always that different from bit is. think, little than I our So, PCS where loss are a

the important is we social inflation to think the number Ida include for we did up demand and Bern. put that I note inflation, surge in thing for and

on loss reflect the estimate it numbers course, with environment which energy Ida the of inflation, best incurred, our and and our inflation, which based So surge. social in of demand is the

Got you.

number would than higher given be inflation. PCS So your that probably

reasonable say would I that’s estimate. probably a Yeah.

Makes sense.

us. We, on number get industry number the that. the disclose wanted don’t affected importantly, that we But more to

basically capital Does shares that am are curious, income quarters management the net sure cat, sense. income generating, that then, net made buying some the haven’t you your you but likely that you Makes XX question, to stock? or of be your zero just you kind over my in line wouldn’t imply I with second you past reason for fourth And are if repurchase I months. comment am the any generated back

question scale, look as said, we take presented it with are as reached we’ve a more. at I are XXXX, to Kevin of high that built, each that at competitive probably the to really portfolio Brian. quarter is to think we The it. buffer it comes, some side a going we’ve going in we excess we feel and about good

continue give So all pull to in levers capacity management the to our portfolio. us does capital it

us sheet absolutely is Bob most and to fortress grow. have pay things be balance think for losses is to I liquidity right. capital and The maintain our to opportunities our important available there should

still activity. We will maintain that cat room purchase normal shares back to and of have all XXXX should we have in

Makes you. sense. Thank

will go Please come Research. Autonomous question Ryan Tunis ahead. with next from The

Thanks. Hey.

some you of we the question, to bill. just where capital I First year, questions, I trying to understand, from, coming up am raised on a the raised following go excess last if back is guess, capital because the

said year So, it earlier had didn’t before now much there’s capital you and was this like it than of less and the that there’s you equity less all there excess there seem raise. you deployed and capital

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talked with question for entered about We COVID that. good a We surplus clarity. capital. That’s No.

uncertainty base, and we context the still So have were COVID uncertainty as out looking look at the with that that we there. we we the at faced that in of capital

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going premium our So now forward it’s areas also reflecting portfolio that about. embedded leverage that in in talked have we the we

I reconcile indicate about to double lot which cat you -- vendor you five said been, years, for do the past write? models I since XX% that then, property ratio we Kevin, business below that, you’ve XXXX, to the to to would earning think just has a was guess, I digits been Got guess, interesting it. for with over or a needed relative perhaps, lot are for should guess, hurricanes loss -- How more more I view for think, And to I that than your that seem that actually attractive seem rate the said be economic you’ve expectations. which indicate internal than needed this

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question, one more an of parts. Got two information kind then just -- just it. And

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want to with start Do you it…

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COVID and needing loss. the degree labor environment. visible in that be some supply of estimate in I think increase uncertainty that adds uncertainty loss to believe to I high and flood of a will and inflation shortages any some this chain European particularly their

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confident I and think it’s feel the right in. I estimate

Thank you.

will… question next The

Yeah.

will question America. Josh of Bank go from Shanker come Please The ahead. with next

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measuring the housekeeping me XXX I a business. Casualty ratio you for the And gate, in you you and through basis it Thank about just item, that when the are improved all timeframes Kevin, pick. beginning, I the to take think you Okay. then just said that loss what the you clarity. the right that loss -- go lower at told was and to -- the the did guess, time what points

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full year full For XXXX? -- for year XXXX

forward… quarter this From No.

quarter This forward.

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insurance… the In

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perfectly complete. you. Thank Then Okay. that’s

Yeah.

with Bhullar Jimmy JP Morgan. ahead. from is question Please final go The

Hi. Good morning.

at just you returns being of advantage to that? the an it have the and stock depressed you price fairly ability that -- started and that bit but been trying fairly active would you I deploy is with take the you’ve just raised first little extent So a what after on buybacks and you a To since had been question and equity, active think capital to extra have versus maybe it buybacks. want you you’ve

will we actually then and what after of that some the on. the was XXXX we potential deployment course that opportunities into $XXX we But we think excess that $XXX about and and was will excess I we present capital think, gains fortified we comment so. focused fourth I talking actually be I slowly it, quarter that the earnings in capital baseline of million at and have into first was think, growth will about, have we quarter in in in the the mark-to-market -- generating that’s opportunities my and going and carrying first I see In the that those will there, opportunities saw if started will business for buying into are accumulation of that our back Kevin come we XXXX seeing year. see we the looking the the base. we’ve And context profitable too, quarter are the keep that over capital be it returning, we million,

the Bob efficiency right an of portfolio, is and back. or. it managing buy absolutely both. continued have the presented We’ve I to think and actually shares we portfolios as you grown that are done our either We’ve increase

I great about So feel that.

as on what continuation it inflation in continuing in assuming extent you transitory? versus Okay. the your seen -- of to pricing And of then viewing are maybe we’ve sort inflation, somewhat uptick

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can event happens kind -- we an when is, adjust thing good the it moment. And of the we that. increased have We at

Our going XXXX of are belief to into demand going to see course. continue surge, is, we

continuing are see inflation. social of to We the effects

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than settled a in to thinking and losses the economic and modeling that backdrop rosy in about be XXXX. to going in how to are price included our which with less picture we will transactions So be will

lastly, in about opening optimistic Okay. you pricing few a of And remarks. the mentioned just then, reasons your you are

they last the while some year. think I going up this reasons were or expecting like, it seems as were of yet year year people those as much as up, prices existed well, into weren’t

ago? things what market confidence -- what’s are that them or gives are a So different see the there now more maybe in you year versus you as

good a Yeah. It’s point.

just another persistence. difficult it’s capital, for ILS for think retro. year I It’s the

there’s some every I That about put a on being single housing different insuring. how are than an in just are I the have and they -- going are values stock in thing. the expectation straw back, believe I hardening. line volatility, of in talked and an seen pay conditions. will that cats than have what it insurance-led is think control through primary confidence last change to thinking and a I -- difficult that there’s TSI just to increased camel’s seen resolved coming It’s finally their going the tonal the I some terms some the it’s of the reinsurers couple how and service to power good to price think they with broke companies in not years. impacts just think of it, going but about seeing level pricing that We’ve more. rate the conversations we clients that where property change in of be where are prices. pricing feel there It’s that raise a for they that we’ve other are me brokers price are ways to we be and

Okay. Thank you.

Sure.

to turn over further are questions. I there time, back any comments. no like this conference closing would to at Kevin And the for

time. Thank for you your everybody

are about confidence mentioned, model, got great focus, for back relationships in our in team. forward overall. forward. XXXX. out Thank got I our full prospects Our I’ve are X wind January enormously looking our is I looking I at you. XXXX squarely at in to sales you our We’ve optimistic am executing what in as and that think we are is our and and the confidence

for thank today’s in you call. gentlemen, and Ladies conference participating

disconnect. now may You