The Hanover Insurance Group, Inc. (THG) 28 Oct 212021 Q3 Earnings call transcript

Good day, and welcome to The Hanover Insurance Group's Third Quarter Earnings Conference Call. My name is Gary, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. to conference like Lukasheva. to now would turn over the Oksana I go Please ahead.

Good you and for you, morning, Thank operator. thank conference our call. for quarterly us joining

our prepared We President Farber, Jeff of Salvatore, Dick our Financial answer and from call prepared begin to Chief Chief Lavey, with Specialty Available Agency questions will Jack Officer; Lines; today's our Markets. Roche, President our your President Officer. and remarks and Executive Bryan remarks of after are

to for Jack, website press the over session. me are Before note and we earnings I call of at turn on our let release, presentation, Q&A the a will that the our posted After section Investors complete today's answer supplement www.hanover.com. the financial questions slide presentation call in

those A SEC. the to found our among today, or of questions pandemic, reliance in slide Today's outlook supplement, operating remarks also related reconciliation presentation, things, others. Our are you call Private We year the financial other statements cause our the that as and/or defined the our responses ratios, release, I other affect regarding, and prepared fact, and With historical for and of Litigation a the measures comments, accident on excluding historical to under and will on XXXX other release, the presentation I statements Securities with of as GAAP will ongoing COVID-XX the the the differ in forward-looking discussion basis press could statements impacts include XXXX, and Jack. over as the turn non-GAAP forward-looking earlier. press posted our guidance respect Act to impacts risks refer these forward-looking than performance loss catastrophes can uncertainties results which with to mentioned financial from you Reform be the section website, and closest in those measure company caution to certain and materially this anticipated. measures, and respect statements non-GAAP on deck, reference and actual of conditions to economic income such financial among combined filings your

Thank the morning We at thank current questions. environment. financial third and earnings review your It you would quarter, severe Investor enjoyed that with only like Day. catastrophes especially We yesterday the of for call. in our are our to today's happy quarter. our of this X.X% will to then to of growth like a segments. seems businesses excluding joining weather in Good spoke for today's take our are vision more you, we and inflationary I'll share performance review pressures economic everyone, and our the our pleased posted with in net for the participation discussing everyone call to light expectations the on and update and feedback. you Jeff positive we of outlook Oksana. provide business premium you the I and affecting ratio their original highlights a line and our financial each financial be will our and written strategic then combined quarter for I'll industry. future. business we by the of in opportunity context thank results for detail, Overall, broadly begin

managing environment. the to call current three your quarter. of ability capitalize our the while the . market want underscores for metrics both on prudently attention highlights In to particular, I complexities on to opportunities, performance Our

momentum. growth continuing our First,

position to of changing are our effects which patterns. our with business weather quarter. taking the we manage third, Second, in And segment the of our unevenness to overall was company results some effectiveness emphasized diversification, in the steps the

our September, strong allocation. written contributions exceeded driven capital business Year-to-date again growth rate disciplined equally by and Our successful was growth with differentiated of expectations our execution strategy all X.X% our premium of net through across robust, segments.

lines pricing environment, remains the rate be and robust overall to to time, loss strong, approach Commercial balanced has quite momentum. same Our exposure proven including trends personal the fueling and to continue Lines effective critical our premium evolve. At as

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of our macro activity guidance our loss perspective, was year. Our distinctive our is the that rapidly. in From with book high-quality our with and line there confidence in environment detail doubt achieve shortly. growth is high parts, full Jeff single-digit for ex-CAT in Overall, of expectations a business inspire moving which many review more will strategy ability changing to no the

movement that us the and reflected industry. quarter third The for

continue cost materials to certain other in environment. Our same loss benefit lines degrees. chain from uncertain are bottlenecks of to some rising frequency Personal shortages, supply the lines different current labor Auto lower the albeit inflation, At and time, and affecting adversely

of believe directly win been and we integrated noted well-balanced I portfolio than enabled presents environment tools of the dynamic continue are today. us book opportunities. time, and capabilities over result our our consistently that the manage business, speaks in as and this strong This profitability as business will results our dynamic maintain trends this our my the challenges Day, deliver demonstrated industry analytical both have and and As fluctuations decades quality have during inherent more to Investor But as in X.X in broad-based diversified to underwriting effectively leverage in our to performance. to have never overall we they a we industry

Hurricane of rain, with catastrophe were balance represented tornado we flood our third pre-release. million, total the losses line XX, Ida comprised in the across $XX quarter season you our events. of The September marked million shared and active with At preliminary industry. the quarter especially third an in approximately $XXX.X estimate with the

We are industry and patterns an The are frequency including and will carefully in we going likely increase the weather in at non-modeled events forward. with contend changing severity issue looking weather the the of storms. others

We in this and the years reinsurance have for and been including us, data improvements all issue exposure using available management, several levers analytics. monitoring and addressing to

Our continued focus on exposure management has across proven effective portfolio. our

states. have As Lines you'll from market the recall, carefully have in Personal and we in withdrawn managed other exposures Florida our entirely Gulf

when from We general we of the this in Hurricane proportional lower the have benefited the sustained industry Ida, to in losses cat South. strategy wake in

we lines balance to wildfire growth emphasize our exposures profitable most continued and to property casualty ensure coastal West We the capacity exposed territories. in also in in enable capital restricted good allocation and regions in East. our And the in continue

reinsurance Additionally, catastrophe with terms. we bought property per broad and of a risk substantial amount

Finally, management aggregation concentration models. including we micro and dynamic have our cat underwriting, pricing, cat tools and load PML single cat augmented property

continue us actions well still past and to focus. the additional requires in do these believe have we While served pricing so,

we property firm Given forward the to volatility the move going and industry remain non-cat higher. even is expect seeing and commercial on rates basis, cat

of market combined Lines, pools also measured commitment X% building changing for more premium a quarter. XX.X%, better insurance I participants partner infrastructure, less to At ongoing our combined the in generated our drive the effects reactive offerings our We our focus turn growth with in protect and a trajectory past needs. weather. with in force current to on top now sophisticated our to will industry, to actions continued business expect and the in customers our expanded with lines supported retention which upward our navigate being industry and with and growth. to Overall, of Policies of interest retention strategy to coalesce stronger our other new strategy net contributing sustainability an and business, to by things. places among pricing in risk-sharing continues with effectively government written position Personal with all growth. Broad customers the review the codes quartile spur us us and account on through the beginning leader increased

appointments relevance are with business track work New on to us. new they robust a and to agency continue as achieve flow partner of supply

in seeing growth market that the found growth dynamic are profitability. Hanover to are million to continuing offering. account and This $XXX,XXX business right broader carriers among $X needs, full see sweet and consolidations our and Prestige, customers for with insurance we striking the agents. players the we successfully spot between momentum terrific environment, most advantage and us lift coverage between range established and are with a high market and new addition, a we has solution In our substantial popular Lines providing net I continuing strongest navigating mention opportunities. would Overall, Personal a worth also balance homeowners from more book also complex commodity while competitive future

originally helping severity. trends start rates the pricing frequency The frequency in rate with line is our auto competitor remains competitive, uptick are in environment results observing industry-wide year, quarter. given particularly at Lines said, increase was and the the signs watching auto we we loss in increasing the although, had in increase for to Personal industry of in filings. are counteract quarter The severity we XXXX. in actively That of the Our third significant greater tracking anticipated than expectations across the the with are and a benefit severity

are with environment adjustments. and have our the made along competitive carefully reviewing pricing selections necessary We

renewals driven in our by environment. the positive Strong Commercial core businesses Lines to growth momentum to Lines. specialty. and a favorable in Turning strong premium as exposure more quarter activity, in to Commercial increases, Exposures in increases, contribute meaningfully of continue grew continued rate economic was X.X%

dynamics. consolidation We pricing in within with third environment rate commercial pricing strong agency lines and book Marine. be strong core maintaining including trends of core the X.X% are achieved our remained Specialty property in quarter our and We The in in continuing second capitalize rate most specialty. commercial continues opportunities. both to on particularly to position increases quarter markets robust robust with HSI the and consistent

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that away conviction from going deliver shareholders product our profitable interest sustained is drive stakeholders. Our conference growth strong, industry and capabilities these are our value well for further conversations. our even came and Ultimately, resonating strategic strategy with admitted and to garnered non-admitted substantial greater we we the and to positioned forward other during specialization outstanding and and

by delighted and continued are results have we We the generated growth strong year-to-date. underlying momentum

agency growth. immense adapt confidence emerging continued and over Supported success. Our by With with our on combined our ability profitable market culture, and I customer-centric call to Jeff. have are capabilities will and for and turn that dynamics team in key our unique to strategy I the capitalize our opportunities to specialized strong monitor to changing differentiated

diluted income share $XXX.X and million Jack $XX prior quarter. In was with $X.XX net compared same quarter the $X.XX $X.XX third we diluted period diluted everyone. fully good net income million operating or you the reported income or After-tax share year $XX.X million per share year. per of compared $X.XX per or in $XX.X last share fully or of morning with per Thank third in diluted million the

more second results year to our Before I our pandemic that detail, similar in our comparisons quarter like note the analysis results created industry performance XXXX in year. last quarterly reflect distortions would I to prior quarterly review unprecedented and

Given combined our as the included an loss and which unusual ratio original for growth losses XXXX, believe well our XXXX of recorded nature better parameters trajectory all-in the We to Ida. which quarter of are catastrophe performance. by third we assess of recent more as from our Hurricane expectations experience, XXX.X%

Third of to our active widespread were of continue Ida prerelease Jersey, our from an guidance million significant on the we recover affected quarter cat at million customers net This season storm. geographic footprint. taxes represented the earned and communities within provided premiums before catastrophe $XX our the lower which caused end York to Together already hurricane New and New our we partners, XX. losses with added $XXX.X XX.X% damage losses in the of in in help Pennsylvania. agent and Louisiana, September

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our the combined performance ex-CAT underlying ratio business. strong Our is diversified reflecting XX.X%, of

we revised favorability to our of Personal in some reported of in quarter and other XXXX, Turning loss Personal favorability includes development favorability that lines. to workers' from due favorable Auto Auto we the fee to control compensation, benefit commercial and continued $XX.X committed XXXX, overall Mindful net million to sheet reserves, of in balance million the and primarily surrounding reform came reserving addition measures in effect July third $XX and and there. remain schedules we medical reserves. a delays maintaining establish part into And patterns, of weather PIP uncertainties conservative on Michigan strong inflation, of to prudent the and a maintain as level our philosophy. in continue Xst, changing court insurance

improved Looking at year X.X expenses, to third ratio expense XX.X%, as prior largely from points the quarter expected. our

of first full confident basis XXXX. Our from a the XX.X%, to improvement nine at on the XX year. are for in a months deliver our point ratio expense year-to-date XX improvement basis point ability And we stands

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XX.X%, with current our consistent Our year accident is guidance. was was our Auto which contemplated plan Personal in loss and ratio

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we the ahead, business in trends. our Looking frequency to offset of book benefit some severity of persistency the expect industry-wide long-term

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This quarter's loss recent in most line with ratio was trends.

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spread fire loss Our water across and several was no primarily with industries geographies experience obvious patterns. damage and

in are losses seeing unevenness economic to the of We the some post potential COVID. the correlation recovery

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improved audit ratio primarily due X.X Our prior positive XX%, workers' comp period ex-cat adjustments to policies. to premium loss for points

level fully phenomenon in we with quarters. now compensation our is Our experience watching in trained pre-COVID Workers' and underlying not with unskilled prior line. are line picks for labor this loss the remain or frequency

our continue deliver that in skilled we our are smaller posed for points businesses. ratio still and to also approach by cautious expectations towards than workers' XXXX reopening further rate reserving other than Marine and Commercial which by the X.X we in entirely the facilities remain risks comp confident ex-cat mix industries Lines, which and quarter. improved our While experienced better HSI, favorable XX.X%, results, given portfolio loss driven more anemic from favorable and accounts both professional losses expected will lower to the environment offices In was QX

contributions income to our a our which quarter specialty. significantly focused investment Core delivered strengthens. earned million the retention of income we Commercial income perspective, income as segment Lines of investment approximately in of on quarter. Fixed an prior based fueled We $XX continued lines, an Core the continue increases net growth on our which investment strong on through investment X.X% year partnership offer commercial from contribute XX% income. most as and Hanover now due assets with proposition, And generated drift highly offset were specialized new at from to strong billion slowly is Lines the premium our out the and of rounding future. investment excess in our pressure to the total in X% profitable end from clients. expect and QX Cash segments. remain we Core do meaningful solid flows and rate instead of We fixed the our quarter income, $X yields, income economy XX% and driving new core in to the overall well the yields achieved exposure pre-tax standing Specialty money monetization. cash strong million Commercial $XX.X from surplus returns nearly cash Commercial was growth in as both $X.X capabilities to Specialty, lower, value the and up strong Professional third Our as lower growth to benefiting Partnership some from at yields. underlying equity invested quarter, quarter, representing lower of the expected X.XX%, million continuing adding to securities and with higher maturities total. momentum money

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quarter, committed Turning stewards income the capital due fixed now the a reflects interest position, focused to second equity decline rising our dividends. capital our of value rates X.X% and to being our and quarterly of capital. priorities our on strong management remain our portfolio to impact per of book of from and investors' on We XX.XX share

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the approximately million quarter. cash In dividend addition $XX during we paid regular of a

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the Our with will Please from Instructions] Piper We Sandler. ahead. go session. is first question-and-answer [Operator Newsome question begin now Paul

– sort Thanks this call. of of has Hi. quarter last the quarter been inflation. issue Good The for morning. the last quarter

for in said property, inflation generally they're that commercial some The personalized inflation versus seeing that, also your little of in has expectation the seen higher that property peers about of property that has that they inflation property-type and between to One commercial increase a expected modest with because it rate, expectations auto passenger and My has as have loss. home before hit is, Commercial for similar and insurance, with you and bit seeing of Auto. differentiation hit what the have you talked commercial a well, property. we're do and basically private question

that effects in Lines. This how Paul. across we others is translate can, are what's quickly to We more finer an serving what and us certainly improved have seeing of what and and we our much Lines make of might that allocate sure seeing what as our segmenting really think should be transitory we're how rates. hard of analytics, well to sure what make Thanks be Jack. Personal have factor Yeah. worked claims level trying even term we're And some we're witnessing think the on at as monitoring permanent, I assessment of we in short is into are obviously that across an portfolio. terms to might inflationary much we and that Commercial But

you benefits I in there's from don't Jeff, further. that to comments our also some make you derive – But of want terms if premium can Jeff, inflation know, maybe I So we some basis. know

both all things the sorts of With largely comp the home one with materials building the referring around increase that certainly with on property, payroll. we're we're liability, Paul. lumber, seeing that, and auto reacting and Sure. premium the labor phenomena and Jack to was same both side. and those respect The issues, seeing of in in cost personal workers' in receipts to the area

So property lots getting that only we're difference extreme. our picks there. importantly, real think similar rate maybe our is But side. seeing the loss in But reserving, of assumed benefit more a I and we The we're on in getting the have exposure some phenomena used very new auto bit little and increases inflation. car we're commercial in is in

we're even up market areas little take Specialty in at bit give bit or XX that So little or certain or both, in or in – But a points just home keep we and higher, XX a the lower. like middle it. of and rate can with optimistic

a in point your math inflation US if the Does we the change US sustained long-term wage that does see kind of materially? have somewhat also inflation of of we world. improvement certainly sort insurance the goals broadly issue relatedly, expense in the And in basis that, across XX wage

will if and available. where good company be talent to paying and on making people every lies, retaining that's you expertise they is offensive, talent acquiring want of to their frankly assessment where attention Clearly, their an

thoughtfully that the our grow on that to to this that, I we help seeing opportunity and meet adjustments essential. to some we'll confident probably and leverage. of lot effect remain one an of we're And things our growth to objectives while most that, in Paul good has expense a us have think is we're they're people, can to powerful make expense competitive and continue marketplace a retain our major levers

it. for you Thank Great. Appreciate insights. your

Paul. Thanks,

with Zaremski go Please Mike from Research. is question Wolfe ahead. next The

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do Dick, take want that? maybe So you to

The only on side. the other color I'd auto add is

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And the where, So team. what's of prepared the of in lot claims reflect analytics a that as the we understanding said key of doing our at confidence have sold that. our and remarks, cost we that's is move able end to pricing day, we're goods our to our in and

a And guess on Okay. auto. Got follow-up it. I quick

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Yes.

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went into really there place. law one favorability July some the seen since we've So

helpful. a That's Great. side. on of Okay. the good follow-up there's a I lot commentary. casualty know commercial Maybe

about comp I for workers unskilled gets heard used words the you the phenomenon, Jack of as litigation you And out maybe looking also tighter. guys unemployment think I return talked trends. then

a kind are So back of kind coming of workers' steadily curious the seeing kind or your of in guys just courts book resumption comp in opening kind kind some is of of of claims of and but they're the you of of or little expect cautiousness are kind trend maybe back trends terms frequency still they're marks better a bit but the than in longer markets you're just middle coming you'd – written term the or severity? online,

to Let is appear very at even historical levels. rapid in maybe out pace smaller what me around first a our that side at shot than in the more be of some take that doing granular being settling a analysis cases the liability we're

We or cases are more the litigated building. severe seeing monitoring and some of certainly cases

for not at accounted that much assuming very sure or severe levels. made out we have we and of cases that are that more so are low some frankly the And going to settle quickly

time. effect want maybe of it's more So clearly quickly cases levels now believe make segment you backlog seeing can the shortage economic prudent and all and opening some residual just at Real that. the particular. workers' are I maybe still levels that the years a we've losses over appropriate six last still activity that couple assuming up. to The being some those courts combined given to normal some assumptions with indication very to levels. I But watching of low comments starting on see do that? is comp we're a of back but think some I we our good really going our We'll that on we're companies make are the that labor to there's the Dick, historically think observed. cases losses reserves bring workers' off side, comp and with we're are There's types in But picks right forward. and with start that if

would We I question exactly hard severity some and exactly attempt comp. a the pinpoint in that correlation large if in your workers' the and come the worker our every watching to can't going manufacturers? through watching agree. has losses economy today we're We We but it correlation as the loss, determine a Is it. of Is factories Yes. are just analyze really say to that to particularly some direct unskilled back hard is that. something online we're absolutely frequency decipher. there of increase phenomenon. – sales to So it's it excess cause. is and we've seen there It's It's To individual? very closely.

of been in maybe now structurally benefiting comp going at there is the great of And or workers' guys in on any on – have Investor could be of have or as just you terms the of a follow-up just color terms change of that result could one comps how given kind pandemic medical past side? changes in is in as the the quick any or Day. adjudicated workers' kind the side LAE the to future, curve Are

to that think of kind make I premature assessment. it's

a comp. work anything seeing that we're when return this within for role worthy workers' I think people what the compensable I the and biggest issue will wouldn't say implications be commentary to are in of how much is But determining time. that's at somebody

you. Thank

Farnam Please Bob from and ahead. Boenning is question next The Scattergood. with go

it morning. I'm to traction on a question been book perhaps been? offering out -- figure rollovers. more you successful a have the rollovers? details Just more new Good you of A as incentives, just proportion Jack, Are Dick the And why there. on is material? they the How Hi, have of the successful getting Yeah. for business agents is trying or rollers. just of it book maybe product? just broad-based

Yeah.

for creating we some markets thanks is business this of for is the believe full -- better Jack. are they I the so really with is What that we're the their agents also consolidating working into fragmented. with book not Bob and do the me that clients servicing because Let rollovers. question. into clarify would really that efficiencies that benefit business

models, even of that them of And operating that. so do of decide just because do our because and really our at when our helping sometimes we're they because tools, effective broad to appetite, people influencing to

Specialty, the So end to answer Agency Small are new to in only But want direct a worth our a really also -- pipelining that don't in Personal have market our we I our Insight from is Lines make of Dick, smaller we there? amount is consolidation, I tool. meaningful clarification that that noting best even me comes short comes work of that's business customers. with think a Commercial comment because from the you do of interest if and we all this on in not the but the know

really part better this was strategic a market and and that that or and strategy in suited solution. Agency do to dialogue, brings really offer of markets about agents consolidations just a it hey, forward partner our lead with this would efficiency product customer insights it conclusion Hanover our Jack the out of a work Hanover to growth pointing as The I a to is us. for Yeah. we is important continues lever leads -- be Insight just

is So it XX% is build the our business for of partnerships. out range strategic really been road part have map to new in that has XX% It of consistent. a and we to of us

just of that I kind would past record fact, shoulder In lifting industry agent. from agents. the have this of all And in offer do resources our unique behalf and we've years, dedicated on the analysis, to we're in hard the the had really work signings do

consolidation. I think in keep is direct market moving. that XX% But XX% really to we'll that And

it's when I include ranged doing that think direct you XX%, we frankly that to the from XX% consolidation, strategic a necessarily of but dialogues. we're a it's don't result pipeline that those call

Okay. the clarification. Thanks for

is the non-cat me for for activity, losses, increased given question second cat increased The increased inflation. potential

You increased investor meeting your last XX%. the ROE at target to XX% from up

that is this environment? -- So type I'm realistic in curious if that of

us the requires environment, side on the we it into that. to rate just Well, property I particularly think lean are doing and

moves of property to that years, Commercial. and couple look Small business experienced our perspective over and was and specialty our even if from few us that middle across this reprice spoken the we've Small outsized You're our came some and third our in is HSI ago property line calls and back challenging portfolio. the nicely to -- drove we've will requires non-cat And volatility really the volatility our kind of Commercial the going we I remarks that that really across of think quite though continue quarter quarter. be it at quarters from around business pervasive, a to you some behaved a You right weather think of if market the right? business pointed this the losses that we non-cat of in Marine to suggesting it's volatility saw some last I not and out the in that say I -- and prepared our property some

rate. us So still a business on pushing it's the It a just on us. really at holistically look basis, -- we requires property if for to good non-GAAP it's keep

improvement But all is claims and really expenses activities. the the of in XX-plus around percent getting to

flat. relatively pieces movements view ratio run be flat. that, Our but of be to the is may some will loss There it will relatively portfolio, the be

to is get there accordingly. our loss that price activity weather that, the then extent time. or that cat property are is with over pricing is losses And we for trend stronger, So, which heavier or can be view we consistent greater will

the Got guys. it. Thanks for color

Thank you, Bob.

is Bank go next from The ahead. question Grace Carter with America. of Please

that thinking across Hi pretty bundled to you be of lot kind the business sticky rising was customers of but within that are business it with all industry-wide be seeing. homeowners tends the to not I sounds everyone. pricing auto and used preferred really at Personal A industry, work that Lines. like there's that's same potential what maybe for the those kind time, of to

some maintain over tries might shopping the how guess have to pretty past So, correct over activity year, I thinking that going opportunities the wondering I'm you're relative consistent pricing next players as result pricing? since all forward from the few months industry you to about to tried other any

Yes. Great question, Grace.

-- and are in to where we the lot the space on infrastructure very a playing. it kind which appropriately challenging that's from price volatility end that customers. with I to them we of particularly an ability high larger worth. service and business traditional we're Prestige and And lower of worth where think high net carriers, who for some -- on coming And volatility that, our the have our worth structure white there's net obviously a becomes the is high the net have cost between pricing bullish deal of middle on going business and market product the to that

So don't that? to Dick, you speak I to know want if

absolutely. Yes,

coverages. frankly to business grab amount where the in prospects. opportunity growth we the inferior see equally terrific been bullish captive the just are very channel products high there's referenced significant this has players, Jack And of what opportunity and not accounts some Prestige only about worth for these from agent We our embedded from with a channel, The rate significant. the independent coming net

Insight segment. agents to hard really work we customers So, our bundled that identify and in Agency closely with through great our work

good business us. a it's new for So, source of

how Personal to severity mean, I I mean just industry, percentage more a versus about newer severity more about a inflationary talked and And the technology. net we that with few just, bit But another likely having from book in current question of benefit wondering, workers. I benefit see think kind of on the quarters? of I next your business the maybe playing the frequency quickly a the impact a frequency office we've business over just higher ongoing out is impact the a if book about environment you'll to have to of cars how of relative perspective, was think Thanks. given higher the Auto. guess lot maybe just of

some buy stronger customers through add Grace, think remind of you also I higher that go that can Again, calculus because, yourself But a I'm have casualty of limits. to color. sure you as kind aspect we of have Dick kind our business our basically

book not of business the business. of challenges we're who the really real now, below So, on of there primarily for you're some translates what what saying premium frankly our to higher-value talking more into right is, folks in offsets is customer side physical think seeing a limits that autos. And the you're what liability about and some is part bigger fact say truth auto that us the that's I But damage better than has are also. any

helpful. That’s Thank you.

Thanks, Grace.

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

Thanks.

I Just can. quick very two questions if

Are across lines medical you worse First, this seeing getting signs business. is [Technical inflation Difficulty] any different of of

-- [Technical about liability Difficulty] talking workers' the and comp? holistically across you're

liability comp thinking Yes. mostly. workers auto I'm

frankly. pretty an any it's uptick a priced beyond been we contemplate. I trends where We've but seen than -- Not we've think that and watched more loss what we've haven't level contemplated, our -- for, what steady

good Okay. that's to hear. No

Specialty is of sense get potential passes? benefits question, this as sort ballpark how some to a Second, assuming a the that of infrastructure want just upside premium actually in to but probably I kind bill

forward in respond of businesses and environment the Clearly, levels Specialty. holistically Specific that that we right and But to said to execution of bullish in on really have the really businesses now. looking speak infrastructure some our opportunities. Marine reiterate, asked we're Specialty Because our frankly, remarks marine. that both to what all you the the on can momentum Bryan, business I'm we we to I'm Specialty maybe might glad about are anxious the to prepared surety and in that Specialty. you more

And I'd most The really year-to-date, for Jack. by profitable even and think, double-digit I the really Sure, the was right? growth you that growth. performance in of like and really lines I'm probably businesses period the said, growth of saying, results with all QX pleased guys our you cuts some Specialty. of the stronger Certainly, start that across mentioned,

period. important at businesses. then retentions quarter-over-quarter when last that the than into third is well year getting across excess most area plan, the our achieving the we've continuing as then prior growing but quarter with rate I double-digit and of than quarter And well level in that consistently, been layer as the So the growth X%, better better of

in our a of position. good lot pieces are a very, very So

And so continued standpoint. feel of we with trajectory I that kind growth a momentum have, our about really from that profitability and good

Great. Thank you very much.

Thanks, Meyer.

closing I concludes conference remarks. to any session. back over question-and-answer This our turn Lukasheva, Oksana to the for would like

to today talk and looking you, next Thank forward for to everybody are we your participation you quarter.

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