The Hanover Insurance Group, Inc. (THG) 2 May 242024 Q1 Earnings call transcript

Good day, and welcome to The Hanover Insurance Group's First Quarter Earnings Conference Call. My name is Chuck, and I'll be your operator for today's call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Oksana Lukasheva. Please go ahead.

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

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

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

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

in drive Jeff to Consistent Lines our continue morning, detail, On as to Oksana. our to the with We for today's XXXX. over growth more returns our in positioned believe order will our well thoughts results, with reposition improving delivering is share everyone, past remain quarters, review as robust on company all and CAT to mitigation financial discuss joining excellent second Good and to shareholders we perspective my the our over focus several why and term. for long operating we on and recapture thank us. first you, an deliver through opened will in our business we financial Personal disciplined the and and you quarter discerning and year-end. earnings XXXX effectively for my executing plans. our on mix Thank margin performance in as in I results call, our sustainable well strong, continue overall earnings expectations resiliency and our improve our quarter,

our line than or open will by X equity we for the operating for ex-CAT was of in operating share, million, ratio the on effectiveness points our the generating margin quarter the XX%. more recapture return combined quarter questions. After-tax demonstrating Finally, per income $XXX an initiatives. $X.XX improved of diluted We

the as quarter at in to overall profitability actions. expected, X.X% growth we was improvement prioritize continue As subdued

net the We the premium written expect mid-single-digit expect XXXX, to we the for in accelerate range pace growth and throughout year. generate full of growth to

in marketplace and our to independent target partners, navigate build momentum agent effectively best-in-class helping the us our them our successfully with continue leverage markets. dynamic We to relationships strong enabling

market exciting Specialty quarter. our Executive Turning opportunities the delivered robust segment watermark profitability Surety. outlook we time, is remains highlights. In and Lines Specialty as prudent picked including balance picking Lines, opportunities. At impact XX.X%. Professional Surplus of areas we continue provided premium the pursuing up The of to and Healthcare will of strike combined Consistent Specialty with highly pricing to underwriting in Excess light on profitable expected underperforming a profitability, fourth is growth robust the well. book year results call, appropriately risk subsegment, seeing actions ratio we as low opportunities business of from quarter healthy programs Property, actions progresses. and Multiple are as with In specific on Industrial impact our in the of exceptional top of very still but competitive, Other our line such protecting year-end another generating quality across Specialty and P&C our decrease Specialty, Marine, growth up remain subsegment. Lines and our and The a this these our same business new to we reflect the the while within

our can capture areas single we current and even Lines, in on us opportunities broad quarter. In management full new products expect beginning and of and increased share will we the expect growth inland areas favorable overall market Professional we diverse our Liability market diversification further and In segments. premium and present on to growth and of in Executive most more as the XXXX Specialty potential diversification the Marine, written net year digits for in such further We're of year, throughout meaningful significant our we we of drive our anticipate opportunities growth the across see selected the enable In We our capitalize as of they will business across XXXX liability Professional these we that platform confident our themselves capitalize as top line mix. business. for on upper growth in as sectors. dynamics we E&S, implementation portfolio policy recent marine capitalize in

strong highly attractive our a with capabilities. pleased Core of to Commercial, portfolio we performance segment's at provide we Looking with agents the continue are as

team Commercial X% Small TAP fueled in sales grew Commercial Commercial its success margin on the continued Small approximately quarter, driving Core growth on improvement our platform. intuitive Our Middle by of focus highly by executing Market. in maintained while the initiatives in

Our With now to actively which platform, of support new that, we platform this rollout efforts our the is growth national the business business on complete. compensation are bot of quote-to-issue that adding working in for area. workers' line will business

sectors our expanding we Middle specialized business TAP Market, of addition, further and offerings. In are connecting reach adding to In better adjusting decile APIs geographies. reflect to We're and accounts continue are aggressively business also our to by changing appetite additional property and pursuits sales business. sources focused our our bottom new the to performance to we earnings consistent in efficiently by more and targeted the products enhance environment, use high-quality of that nonrenewing achieve on targeted ensuring

we progress IoT sensor Additionally, program. enrollment making our against considerable are

to will trends meaning recognize and work effectively mitigation. program failures That scale, we believe instances temperature policyholders, of Lines, Across we've with targeted industry of several can collect this our Property all the across as more and We Market sensors data guidance casualty. us business of water limits of geographic identifying trends at and to market with is industry amid providing about our have Overall, given already remains program in even the the data enough sectors. We enable concerns emerging territories we on how have recent deployed sensors. trends, increases rational, loss most higher has Commercial loss deployed over profiles, continues needed resiliency. achieved certain build where and best resulted and price we epicenter P&C operationally, numerous risk types XX,XXX believe support property such to lines, or While actions Middle our of these higher remains profile. that in the prevention system

relative often Commercial the loss example, has asked an accelerate Small business and position trends. In outpace new P&C continues environment, loss social challenges For industry. pricing about trend our the dynamic in become increasingly inflation to to affecting what we're

in associations, change. in reforms are As actively for stem of and American awareness a system Association and abuse Casualty of promoting advocating Property member trade we cost other engaged the and legal to the Insurance

believe limit limits XX% of In million. or at $X with policy addition, social effectively our a current we relative liability basis, us profile help profile inflation trends. On our liability below have over policy low current we will navigate a

which higher level a and such secured as and increasingly per-risk $X.X maintaining have are attract policies. avoided are challenging adequately umbrella excess liability and low retention, at million, attaches severity and reinsurance We of that we public insurance areas stand-alone price to D&O have

in steps and lower to to several to also exposure industries risk in executing metropolitan reducing top our trend more certain of Over stay litigious lines increases susceptible that the in areas on in large umbrella highly limits are social and taken assumptions. inflation, years, jurisdictions rate last we've

we that strategy intentional and the effectively thoughtful a with enables issue this liability approached current to have environment. We us believe manage

to largely our continues is Personal improved business on to Turning expectations. demonstrate profitability Lines. and track to The relative performing

including ratio changes Home subject Our states. all and in in loss was hail with out in quarter. in addition and increase the What's year, both being the Personal geographies. the price new also certain with of deductibles Lines robust with All business assumptions. rolled is changes, are first to more? an the quarter decreased deductibles of renewal These product a our targeted in and peril in XX.X% last line Auto change targeted wind renewals compared

micro geographic continued we concentrations address Midwest. to addition, In the in

in growth business in in PIF manner at in and business, flexibility only more of driven that lead we willingness To focus the Primarily on growth resilient by expected, a new X% delivered to lower excluding the and Lines retention and states, hit we Personal reposition policies with in remained premiums our more decline and margins as market over with first stable in was diversification in flat profit on deliberate result a year-over-year. premium geographies, a a select comfortable we stance are the As to pool in remains profit Midwest XX%. relatively intense the robust. X% have Lines resulting have our where while are during profit Midwestern point, we basis said, new future. a our This force. Having approximate down profitability the the higher, to improved We X% milestones in written already will improvement, pivoting where region a Personal positioning. Overall, already book this aggressive quarter. our written quarter, net of premiums exposure X% in shed to reduced decline year-over-year in in an the controlled

We expect follow higher point implementing Midwest, are others this In remain introducing our to and offset pricing to other forward premium changes trends. we firm to in growth deductibles XXXX. the loss from seeing and lead, accelerate product

will believe orientation a more our continued account base that customer view, us both which less in far the that representing position business minded preferred is about unique channel, account. creates our Personal whole Our price a and elastic independent of we is with Line's XX% for In success. agency orientation protection

As strong once we to to adjust terms be institute pricing conditions, increased and again deductibles relationships proving are and work agency critical. our independent to

ago, agent XXX agents in of business current weeks our we held Club our implementing. on annual agents at over in play together. commitment they can we from strength customer We most pricing market fully platform few support efforts a and to support largest, than believe adoption confidence focused this are meetings agents our a independent partner for in garnering our as our our in of successful of Conference. with grow the the of Just the our well best we and our number risk and Annual environment with how We tools role met away the of President's the dynamic distribution We ever executive mitigation recognize critical prevention needed more customer walked partners. as event advance increases

with and execute agent priorities call our that, turn to optimism. tremendous increasingly With look to strength, our already and and the underscores for have in steps to to proactive shareholders, performance and across QX Jeff. the and of stronger Confident a summary, see of partners our deliver excellent through on actions, We to diversification of In enhance business. to results sense businesses. beyond our value management over our I'll We initiatives resilience underwriting the profitability our positive begun catastrophe effects other customers. in strategic our year-end ability forward deliver

investment Jack, of everyone. first our quarter and morning, mention you, and Thank highlights an and I'll begin then results, our good discuss XXXX with our overview financial performance segment outlook.

year quarter a very combined over of combined excluding ratio, start are for with year, prior X.X the quarter. strong ratio XX.X%, posting a point delivered of We catastrophes, first pleased We a improvement the XX.X%. our

Our catastrophes, points ratio, of current XX.X% the continued earning-in excluding to loss accident reflecting price year X.X improved increases.

contributors for Catastrophe of was assumption to Ex-CAT prior and in in to to expense steady development that Relative quarter, in our Lines changes by developed Strong to our as market and the lines and of improvement the in strategy. deliver margins path of the ratio periods X% higher. ROE Lines plan, this our was January million last Core Specialty. Each hail Personal February full above we are overall. March also excellent highlighted Favorable earned development development were of was in year growth business or in share the of development year Northeast the on our slightly margin of were on in gives offset At results a was CAT main in and Our activity immaterial track ratio XX.X%, XXXX. validates year, on Home approximately two XX.X%, expense timing the in Core target and target some year underlying a to premium. losses. $XX driven full prior recapture Commercial consistent certain with reduction Other. segment primarily us by and year-over-year net expense our business our for expenses. Core our in variable due in and deliver ratio in is performance. The between unfavorable the primarily confidence within main right Commercial profitability contributed XX% effectiveness the the in by overall first favorable loss favorability long-term the remain Specialty and Auto Specialty. Personal to of the our in events ratio quarter CAT the as year accruals year, of favorably. gain by well driven first quarter compensation investments accounting of We XX.X% quarter floods higher increased continued was

combination serve Commercial As Lines prior losses, call, recent elevated umbrella and experiencing reserving our we liability noted we mix in in favorable expectations our a continues well. prudence the loss response. prudently to year-end in and of increased auto-related industry year is Overall, characteristics us

underlying review Specialty. I'll with segment results beginning Now

combined the continued Our X.X from points book of the the prior ratio business. year losses of Specialty quarter, its an quarter. X.X record in loss underlying over ex-CAT XX.X% of an Specialty primarily The year improvement lower-than-expected profitability Property ratio of marked track XX.X%, better than in delivering our prior points quarter,

on for top the upper expectation longer-term remains for perspective, accelerate we loss track growth Our year. XXs. to a Specialty line in XXXX Specialty low full the to remain digits the From single

delivered ex-CAT X.X in improvement an ratio combined XX.X% Core segment first the Our Commercial of quarter. point a year-over-year.

and excluding and of Lines. quarter The relatively expectations Core Commercial business current remains in our accident we liability year loss social the with prior stable our year inflation for book in was watching including Trends intently At at trends, catastrophes, time, are Casualty manageable. so pressures the ratio, XX.X%. far very line same in

of per new to XXXX more after the remains complex frequency to mix a Our normal liability 'XX severity Commercial but in to is claims, somewhat at while frequency levels is claims have litigated frequency has continues remains an within exposure expectations. to to litigation slight contributing increased in indemnity elevated with inflation general levels, a XXXX of while low returned and pre-pandemic settled and below liability loss stable, the our medical frequency while 'XX. Overall, decline, normal unusually seems severity. shifting increase Workers' manageable. loss compensation in auto

trends continue course, closely. monitor Of we to

profile discussed. carefully, very liability our managing are We as Jack

prudent a maintaining new of year shift to established liability We small added into liability time, conditions. estimations, we in reserve leadership loss we approach incorporating updated approach when the if picks and XXXX when a as while same and trends Importantly, promptly team, in very our back terms and adjustments initiating to taking prior are at mix. a this disciplined needed, pricing our and our and position materially view

We during adhered COVID also low-frequency to thoughtful periods. prudence

liability to in for X.X Commercial points market, We decision our grew sacrifice Lines in-keeping feel with down while confident some written due line the retention the and X% margin. top exchange targeted quarter. in in continue to growth strategic property to ticked continue lines, quarter improved our firm to most Rates positive first Core position. for in reserve premiums both net in hold middle nonrenewals

earned on our current X.X continue over points segment accident increases of Lines first year of to ratio improved XX.X% rate excluding in by benefit moderating throughout ratio, collision the Personal ex-CAT with and loss an earning-in, Personal X.X loss Lines. loss XXXX. current coupled the delivered improved prior current meaningful improvement ratio, ex-CAT we to in moving XXXX. Auto the XX.X%, points The This X.X Now points of quarter benefit to catastrophes improvement excluding expect quarter first combined property accident pricing year catastrophes, loss year-over-year, ratio an and of with accelerating the driven costs, XX.X%, increases. of of

used Additionally, our prices. collision is data severity particular indicates for loss easing, in that car

as some shorter to are in cost deceleration of We also experiencing well due times. lower the costs parts repair as cycle rental

seems we cautious in an a expectation in Similar is at bodily and accident At severity the Auto, coverages same due including hits about injury. speeds. to auto a therefore, while motorcycle and year frequency picks of occurrence at loss have current catastrophic high bodily time, bicycle higher elevated liability in injury to Commercial pedestrian, level settled remain pre-COVID, reflected crashes and below to elevated claims,

expect benefit property significant higher earn-in catastrophes, Home year adjustments umbrella and increase response an loss rate by the in auto prudently prior Also in driven Other, increased within continues catastrophic excluding to X.X ratio, loss the year accidents and earning loss and trends rate for we industry. XX.X%, development current to coverage and exposure accident in. expectation ratio ratio and in Other of improved throughout loss for Auto to as ease, However, the points improvement we XXXX. Home

XX.X%, in including XX.X% are first of points and quarter. Home business the Auto was points the reacting increases pricing it average market solid the quarter to Home meaningfully and of up we up levels in umbrella expect the up achieved stay and and Auto price rates year. XX.X historical course, Lines rate was compared strong to is throughout XX.X accordingly. continue on to Both Of exposure first price increases. of

We expect Personal the Lines remainder pricing year. robust to the remain for of

However, Home more levels. to tick second quarter starting as value adjustments in down return will inflation to the exposures insurance normal

deductibles important, the margins. Additionally, underwriting every increasing time, start in target accelerate are applied and renewals continue our some to applied. to and risk lowering where Equally April, our of being on deductibles peril will wind all such hail majority for effectively earned prices property

Looking we of strong and additional loss benefit meaningfully Personal current accident homeowners. XXXX. Furthermore, Personal and trend improvements the ex-CAT ratio ahead, stable throughout property improved result new expect of earned a implemented home loss business XXXX in pricing Lines we rigor to some more Lines as the increased drive anticipate in year inspections

We basis Home to improvement significant this XXXX a to return by Auto profitability in written of and on the and expect pace basis. earned an on year a in margin end target

asset income an in-depth have to thoughtful portfolio Moving performance. current years. others. a to bottom to optimize further us investment manager. the $XX market yields. from external analysis, we switch benefit the $XX.X an quarter by the contribution an knowledge was hope in environment model should primarily investment driven to and provide will that of our to The large-scale we fixed made portfolio's XXXX, transfer expansive will to of benefit and or bond our the help investment decision to among strong term, depth external an to Net their results accumulating of portion investment asset The investment on continue subsequent including the million rate We and capabilities us our line. assets net fixed million After investment-grade manager, Hanover's first investment higher managed. to management from of believe XX% in maturity manager allow increased XXXX much to income outsourced the internally Historically, about income Longer

this transition of the end second to quarter. expect complete We before the

in dynamic increased value by ensuring loss position, GAAP increase an environment, offset the first unrealized X.X% Moving share financial sequential were book quarter Statutory we on billion. we income partially flexibility portfolio's focused by increase position. Strong to business. our $XX.XX. to maintain marking to about capital to earnings $X.X per remain surplus in book X% fixed the In value a on support this and ample in

capital regular we important Although quarter, dividends our quarterly allocation any repurchases refrained shareholders this making strategy. remain and capital to through returning elements from buybacks share share of long-term

the is of our load quarter For CAT planned second XXXX X.X%.

X%, in February, XXXX on and probability XXXX. intended higher should it mentioned for the have CAT year we we establishing curve pick of full As our in to decline that load

CAT ultimate currently conditions underway. In reflect does in off that summary, substantial the and are a not Lines terms Our in Personal impact changes we guidance start to XXXX. strong are yet of

and most on successfully our disciplined in our of concentrated recapture margin executing growth initiatives business. are lines strategies We profitable

is pricing Our a products targeted most. our and partners customers and financial value and to agent provide performance and commitment strong operational the underpinned services by underwriting,

We focus Operator? returns now for will to on long-term our open the line superior will With shareholders. for creating continue and questions. growth that, we

[Operator come question the first with will And from Instructions] Oppenheimer. Phillips Michael

frequency is First on then comments said about to specifically why maybe Core of your still on question, you is case and good claims. more describe you're continue? could news there. talk seeing you the I that, And think Can claims? brief guess, long you too, part GL, complex description down. complex that that's what how of Jeff, Commercial, still a there those

Sure.

our the restaurants some less been quite In some That's And I dramatic. malls, as into creating physical activity the people frequency, and frequency. a insureds of into in people reduced think seeing aren't cases, going of there's going into premises. that's terms often, we're going pretty aren't

and involvement In the of severity like. the claims, you're or seeing less with claims, proportion growing overall lawyer is claims respect the that's to terms more the complex minor having complex claims of so

more guess, just level. Okay. And secondly, maybe higher I

the or of accrue And Specialty you going will the about How ratio. and to those expense opportunities to couple then about are pressure you're making, just on talked the next some maybe continue? years? in investments long investments growth You over those the what business, talk investments

Specialty that excited to for quite some of of make is decision We're businesses. we XXXX and as made affected our question. a from platform a Thanks about best-performing resource Jack. and And profitable business. we look the the a standpoint. -- newer of And Yes, concluded, investments invested areas our few also in at a performance Mike, that Specialty we're this additional

we So trajectory we that ]. ahead expense overall, Bryan of make speak we're is should growth of from I'll our what the that let that know Specialty have businesses. ratio but that, parable in you for kind key investing And [ to will one get the very that

Yes, sure.

So I'll just give completely a is a for built This little bit of more been very detail area. there, business, right? into a leaning out right? system fast-growing, So E&S profitable for example, technology we've for We new them. our

As and know, space. the of they you in quotes a have E&S lot may submissions also

a our area. our get will business just to for the and We're Property And investing E&S area. that efficiency that also in our from staff we of it's and staff our and businesses. business, We're Healthcare of Marine type we're investment. also upside investing So in adding not for lot in platform Industrial

to see profitable, earn So is us we a expense earn opportunity number in. investing I and point, that of our revenue of and that areas will think on absolutely having through -- do we're lot growing the quite will through the And help Jack's will side. that a

expense committed We're the heavily to and our in the ultimately XX.X% most notwithstanding Mike, business. for still overall firm. investing fastest-growing ratio profitable

come Zaremski with The next from question Markets. BMO Michael will Capital

This on is Jack Mike. for

just Personal and deconcentration remarks, in could on prepared offer more if but Lines. the you progress on strategy touched this curious color You the in

as the in losing you and Michigan higher including geographies meaningfully? in deductibles? as improved Are successfully are terms expect those perhaps concentration Northeast Specifically conditions, you you and and well? in customers fewer Or reducing push

that seeing Lines, aggregations entire implementing conditions, target pleased that continues much we any Personal we the as the the terms and of milestones risk on that again. so that with change frankly, think Lines be X. our about as we of ourselves because the project and Jack done in But appetite. set Personal can rest to frankly our conditions, and on couldn't that we think to the X with is we're the states. implementation, thresholds as that enterprise terms This We're the looking enterprise, already are go that Yes. and next we at requires and I more We've contribute. on dials the to with for well property specific renewal we continue execution particularly kind business and new the the right so about our of within if spreading to

of really a I picture progress margin at are our and simultaneously as clip. this a think is So big on we efforts making advancing recapture good meaningful our diversification

So more Lines. way pleased Personal out with playing be in that's the I couldn't

see from on, premium and But perspective, to a From growth you'll some shrink start PIF you'll insured continuing XXXX. forward. from perspective, a some into from premium larger seeing growth here get here

the Midwest Northeast to rate Dick said, last is PIF Lavey, in in And the this are Xx hail Jeff being deductibles and The question as exactly we're manufacturing Xx geographies. really and storm confection the the to perils. issues the those versus point one your reduction wind That's in prevailed about where the Midwest other have the Northeast. have Yes, doesn't place.

and business retention is shrinkage our less. PIF higher So Northeast is

reserve about on there's just severity. inflation increased asking Lines. in is again was any question on loss development, wondering given quarter. I I'm you're was change this any But that have other some your second frequency if wondering trends? Casualty if expense forecast view changes loss healthy for recently? seeing high-level And insurers their trends which You in normalizing talked some

Yes.

prudent how we reserves. Core major and we're overall, sheet every favorable. with Commercial, In we -- set was balance line very our very comfortable So in

Jack we million in concentration overall our claims-made finally, about up. the really, how policy and served less both Specialty is bit limit So that feeling really 'XX, well his construction, our about and spike structure the and Overall, that. $X also And than wanted equal took Core. And where a XX% or in major well. to 'XX, metropolitan largely we focus, about prepared talked in in also XXXX period, Chicago, remarks, to that approach which casualty as are XX% in York, XXXX. the challenging trends New inflation geographic L.A., is good serves around us, while or help 'XX, has little talked and a we us really will during we Think us cities. Property about Casualty really -- mix, reasonably deemphasize comfortable then reserving the the we And back

picking So up and dramatically, down, been bringing at for frequency we've I is all the up picks. our preparing think while severity is severity while that prudent and

come KBW. The next question Shields will from with Meyer

My was first Jane [ ] question on commercial. ratio It's you. flat for It for year-over-year. Meyer. on Thank loss core is the

for Is Just the we curious onward? that what your think run here forward? about going expectation rate should

getting loss We're above meaningfully trend. rate

optimistic And ability or about individual our have some time losses feel so improvement to loss have lower you going higher in particularly ratio forward. for the property. From time, to we

a think we how in. business forward had lower happened earns that rate higher. of this is to a some have as particular little we going to the levels quarter, with have losses producing a ago, year think at bit but bit that improve XX.X%, But pleased I I I'm opportunity little

reserve small. second Perfect. Auto. question Personal on know slight like is I charge there. I saw helpful. My That's a very it's

make anything more you I'm sure want if wondering missing not that? behind add to color can Just it. on Just

on I think It I question? the the was concern and what was clarify or two. word Personal missed about you Can the Auto slide? a

not concern, slight just a on charge reserves It's there's a that?

the was told, umbrella. driving the some our our that's we think it period it in And current prepared the in had prior umbrella. I slightly picks in itself increase catastrophic showing Lines, about So both us truth of pedestrian actually adverse. talked favorable no development. was and for and overall, activities we And And remarks -- umbrella. and such things of some Auto it's those was are was Auto Personal for hits actually as to Home, in Home be

come with will question next The from of America. Carter Grace Bank

Hi, on Liability gave The in everyone. that data you limits Commercial for really helpful. Core is the exposures

wondering greater you kind in impact of smaller going on kind liability forward was Just on that's given and at maybe just book a limits growth property geared I perceptible if in continued accounts? looking the any sort over underwriting Market though emphasis the the past the the side. of Even the Commercial of Middle book expect quarters? kind few Small of towards versus

this Yes, Jack. Grace, is

to -- believe and we in has point put that take I our of even navigate hope real to all and in the and through of businesses that expectation faster whether little trajectory some our going better both future. business, ability we those so move relevance business want into company and grow on the we that mid-range areas. But either Lines the with because we patterns, Longer we're are growth Core next current agents said, can level, can of impressive we our is the liability this clip. as can have market we our growing will way. in And ourselves that caution a the be is position to a prudence smaller bit I don't I maybe middle miss advantage term, in our I in more both and But or eventually That this Specialty environment. these competitive a bearing environment our profile is equally Specialty trends participate appropriate. in we at limits the you as those all think and a think is, robust where Given think an a through

it. how that's approaching we're So

just loud around if plan on just sort guess, noise far? think of And And social any emphasis wondering industry, you're that, been the Liability far if going so I the that mentioned shift? I progress about quarter, had there's growing Lines I kind following is that magnitude versus thinking kind of, how maybe you of forward. given all around on up I any greater a inflation tweaks on history on the so last of guess to the was

Yes.

major about was property by I clear be be than present disadvantaged more I last the to and our believe going advantaged direction to having if of competitors. -- continue fact less themselves. that our not disadvantaged change some potentially other. the trends forward clearly were we at we'll think one time, going the year mix in this the we liability a think step were I We or in

with I optimize. where trying mix, see geographies, think certain in we're having in an certain your identity to crisis to sectors. we're our point, So Grace, not And particularly book we

E&S and end of our the our on that, in and spoke forward Management about moving liability Bryan lower businesses. are particularly We Liability Healthcare mix.

looks like. have We what transparency growth to great great margins,

mix it right, you're think will forward. I We're overall, business balanced. So somewhat be going about our pretty excited

Michael is follow-up from with Oppenheimer. Phillips question a The next

on of couple On of last Commercial prodded your the kind has Commercial Just me been there. Small questions Small industry spot for while. of one. kind this a sweet for a

space a -- want they You couple going people at feels such many And you sure as seen space guess like not, be I sweet of a into changed? are? years, and place not the come landscape a not? seems it's what's that's maybe it guys why where the has least said here's you've moat been into go. But to as guys there. to are back successful if spot, that it killing And get Maybe like competitive would because and that it them

look like? investment sophistication can very insight the speak do business some Small there where Dick believe profit they I pricing not and to it that that. perceptive, What make or Mike, been and and takes I think I'll either are? have to and into, And that so you something in a the the frankly, Yes, made of needs and carriers that's switch get to Commercial significant that highlighted in turn let pools But that cases, that progress just regressed. intended not is have that terms

that. So Dick, build maybe can you on

and are the that the and business, submit model the where for the people, do hit put business term, business desktop course, handled. of wins mean the overused on platform one means from the of of that the an ease renewals way way the this it them day, have doing you operating all you business. I the know you issue to agent's And elements way new You but well. I that's aligned them, is

So that. as you X, investments we've going know, made back years significant X on

BOP more completely and working now out, it. we're rolled hard to to comp product is first get added Our

are with platform we're thrilled the but frankly that expanding we well absolutely compete So access. against investments. finding nearing points day-to-day, future, made is into haven't of and that looking There other we some comfortable those levels other of the distribution feel competitors actually where completion, and this now is business

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

everybody, for you, Thank interest your participation. and

talking to We are to looking next quarter. you forward

for Thank attending today's The presentation. conference concluded. has now you

may You now disconnect.