Everest Re (EG) 28 Jan 252024 Q4 Earnings call transcript

Company Profile

Participants

Matthew Rohrmann	executive
James Williamson	executive
Mark Kociancic	executive
Michael Zaremski	analyst
Charles Peters	analyst
Joshua Shanker	analyst
Meyer Shields	analyst
Taylor Scott	analyst
David Motemaden	analyst
Yaron Kinar	analyst
Brian Meredith	analyst
Elyse Greenspan	analyst
Wesley Carmichael	analyst

Call transcript

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Operator

Good morning, everyone, and welcome to the Everest Group Limited conference call to discuss our 2024 preliminary financial results in advance of our full year and quarterly earnings will be released on February 3.

The Everest executives leading today's call are Jim Williamson, President and CEO; Mark Kociancic, Executive Vice President and CFO. We're also joined by other members of the Everest management team.

Before we begin, I will preface the comments by noting that today's call will include forward-looking statements. materially, forward-looking will statements. differ to no may update publicly results and undertake we obligation Actual

noted Today's filings. Management are certain of risks, as subject regarding non-GAAP to Everest's comments estimates, and the uncertainties being measures projections financial measures. and financial SEC the on Form on X-K in available Investor on refer may also XXXX, our release Management available and Explanations is press non-GAAP associated included conference Relations website. similar January recorded. in are to SEC the filed reconciliations assumptions call XX, with

With turn Matt I'd floor begin. Rohrmann. over that, to like to may Sir, you the

Matthew Rohrmann

hand Good for to Jim the our morning, Jamie. call Today's Williamson. preliminary Jim? you, XQ will And results XXXX. cover I'll call Thank and over everyone. that, with

James Williamson

and additions our good divisions. across position action reserve development, $XXX Everest casualty has including billion net everyone. picks. both our strengthen morning, of to taken over to XXXX of Thanks, loss decisive reserve This $X.X totals Matt, million

a Our reserve comprehensive. robust extensive open all assessed at performance beyond resulted indication. This We in added estimate. and sustainable a conservative we actuarial a claim actuarial of then indications strengthening risk volumes. in-depth Management and key above analysis approach conducted our required was arrive and margin prudent level determining We of the our to an reviewed management best indicators underwriting to portfolios. of the

firmly this put us. to issue process for was Our goal this behind

are improving see for that actions We loss and until our will picks credit not underwriting will this actions proof maintain take we setting posture these results. for

severities industry awards even the rising. plaintiff United insurance is that These problems and notice are achieve tactics major using jury abuse to loss, for outsized at Attorney is manipulate the the bar and States. a U.S. large to force or settlements. economy. emotions involvement legal Average and in inflation claims, Social the widespread of increasing first in system are loss problem is

been is and economy. exception. a growing to barrier phenomenon and affected a this insurance on Everest no This attack trend every have American by Many vibrant carriers reinsurance and is

it's our XXXX, However, to contributed of insurance of write acknowledge high these which North GWP XX% that magnified choices underwriting estate, our with entertainment concentration important classes American impact significantly in the reached inflation. the willingness habitational in results, sports to real coupled casualty like and social to and a clearly

- and My on personal results for unacceptable. can view in colleagues. can we do summed our and for word our a be customers our these for up will better single We shareholders,

action work and Actuary a of the March American transform aggressive to with insurance I with taking business. Chief in now. the are in began and division. Officer onboarding Underwriting North accelerated taking our insurance start aggressively It XXXX This new when took Chief the of are charge We over did XXXX reserve not we Pricing

casualty We leadership American North the have We the a for hired and in for made business, leaders wholesale our new world-class Hazelton, at of team across our our North America financial now operations. house have changes We business, to Bill our at top insurance. in leader for in the top. field starting lines,

We superb added actuarial, teams. North we've our claims, analytics have new to and insurance a for American talent and CUO leader

one book change. Our have In level using renewal rapid the to is plan account undergoing remediate I positive standard. what portfolio and casualty, we a an call

account casualty the or will return renewal every to off profitability will one we in target get Period. means That account. we

changes. XX% structural quarter We and were casualty results, were as evidenced not renewed afraid and of where by substantial went to third unprofitable are renewed lose that business those rate our premiums not accounts through

third grow returns, we've quarter. by consistently our book. our That's in to saw growing areas which We in is book why the you balance where are earned first-party prudently solid over bringing XX%

our Finally, we clients. to value brokers our proposition strengthened and

Our and enhanced expertise underwriters been has have our deepened. to been levels are Service closer distribution.

are clients the priority. our in Our our around focused a to completed transformation now and I our portfolio. our for account on casualty offices the account and This instead is more of which regional book end balanced expect customers immediate teams by remediation XXXX. before results country the is just better be of lines, of

want about as guidance steps turn we to move it I about are policy. forward we Everest's to made and and forward to I the shareholder returns. over an plainly business, important prioritizing you absolutely Before I advance on our Mark, results to we've decision commit the taking improve update speaking

target a shareholder the cycle. mid-teens is Our total to over return objective deliver

forward will We this let detailed talking. the target do we will instead, but toward the no guidance longer be providing results

with I'll to turn over Mark. And that, it

Mark Kociancic

and everyone. Thank good you, Jim, morning,

during way our that claims system. earlier, classes review casualty social which activity the heightened the the inflation experience. strengthen of of our through the is certain XXXX industry, as the decisive loss in quarter. experience. is in took court observed Following comprehensive mask general, billion helped net the impact contributing This we A affected as has by continuing of faced actions reserves, U.S. Everest's loss pandemic reserves exacerbated development to concentration described pandemic Everest accumulated projected our this COVID to on backlog factor loss the and the during our And development XXXX. Jim to our claims in $X.X claims factors work higher-than-expected its

strengthening to In casualty margin the to efficiency at strengthened reflect Let $XXX reserves reinsurance division. me resulting of accident beginning $XXX includes total the $XXX million. from the reinsurance, view XXXX plus since million reinsurance years risk additional our an estimated of to risk social central our of actuarial inflation. arrive our our turn to with U.S. U.S. heightened adjustments, we all across for casualty, reserve This environment related million

million reserves well-seasoned We from respectively. approximately mortgage development, and net of reserve favorable XX-XX, approximately also $XXX recorded property split primarily

and mortgage in lines and property continue Our that are our have reinsurance time. reserves we over well we embedded will believe emerge diversified, to margin

certain resulted avoiding business. and cedent Beginning account in selections, underperforming exiting in significantly large which XXXX, we enhanced

our in is believe quality our also favorably, we auto. lines high. exposure portfolio certain We limited of cedent commercial Overall, less the reinsurance as viewed to business such we quite

moving We insurance. casualty on of includes billion strengthened materially net strengthening million $X.X in the segment current This insurance a Now a approximately total in by U.S. year. $XXX figure redefined to basis. reserves our accident on

of Our million above U.S. prudent our risk actions lines. include a the approximately margin central $XXX for estimate insurance actuarial casualty

we years U.S. environment that in data consisting casualty prior, the commercial experience and and older to for bridging recent pressure and to XXXX observed experience ratios clearly the was for on of trends insurance now response bridging to more excess ultimate underperformed. loss loss for years, the a portfolio as selections of primarily our to XXXX a This views increased casualty our forward This older and years. therefore ultimate years years, forms The brings to loss U.S. our accident ratio We auto the strengthening to and the reassessed applied loss procedure XXXX. XXXX recent strengthening rate general levels. addition current XXXX of casualty, liability is to reserve and upward foundation them in We XXXX, for trend XXXX. more higher risk liability accident

to layered of U.S. of we referenced, of before, within this. an remainder I just the lines on portfolio perform casualty additional Outside stated our our the I as expectations. risk continues And margin top insurance

as lines business loss of as reserves lines its approximately prior of billion noncore business are well at sale of in other noncore segment October policies written to business. asbestos sports of in XXXX of with exposures those comprises environmental primarily The other exposures. formed It our associated our and consists and representing recently year-end leisure and $X.X vast reserves Our XXXX. majority several net casualty

Reserve with to other million and reserving strengthening $XX million leisure umbrella above the approach sports lines an of to million lines primarily losses. reinsurance segments, the estimate year booked of accident $XXX is our $XX actuarial environmental, asbestos current central approximately risk in specialty million comprised Consistent insurance from the largely million general business, and margin from the the liability of in and we in $XXX segment. increase from have $XXX of our and and other $XX million of business.

As commercial excess average general trend Jim mentioned, costs loss loss for will this and XX% liability, elevated. industry combined. In view our auto umbrella remain approximately

disappointed U.S. casualty account our navigate a high-risk our profitability toward us risk and account casualty, U.S. above take volatility prudent trends. beyond our and the path the view our Going for increasing environment. underwriting into described for actions earlier loss reserves uncertainty of I while to in given environment losses, for fortify to have results, to any this and margin we estimates loss casualty picks are being we as U.S. actions we and potential the decisive forward Jim our mentioned just in on sustained ultimate are forward with

And call Jim. with that, I'll turn over to back the

James Williamson

Thanks, Mark.

Let a taking step back a for me by conclude moment.

This these about demonstrate company. huge. turns action it's bullish reserves. our from commitment to of the our is necessary Zooming actions, sustainability not page but necessary the U.S. to issues also not define casualty Our of and is is management on of portfolios. of our Everest. clearly out strength surrounding the reserve what team doing it the whole the decisive critical, to ensure this The They be does impossible prospects upside

work setting part In actively reinsurance programs. a Clients of global more Everest reinsurance, the their standard. make prominent is brokers Everest and to

the Our the team best is, in in my humble opinion, business.

level and let renewal regarding just Downey, again our for the earnings commentary of I the me be next cycle as proud they could underwriting X demonstrated I'll discipline. But say leadership more highest reinsurance and save management of my QX the Beggs not week. Jill January execution, under team our Chris of call

international level. our abroad, insurance an performing at Looking business is exceptional

international organically Pacific. by have brokers the Europe, Asia are like Everest. value spanning nimble and company We service-centric superior offered America by proposition Latin excited franchise, built insurance a world-class Clients and a

growing Technical margins expense are bottom and and excellent expanding results. bringing that scale business is line ratios in down

heads from Co-Presidents, rapid regional country Adam leadership team line and Clifford are to already our said, business in making North business. Insurance, that Jason I leaders, business and towards progress And we our Keen in are of presidents as transforming Our America outstanding. division our

that and a portfolio quality presence a built high-performing have the our market. team We increasing leadership in constructing is

Our our underwriting teams are accounts above target offense, at regional rounded or high-quality playing margins. attracting

extremely to improving Everest so ahead. has be much and allowing analytics. am about underwriting levels and our I ever Our for infrastructure to of about, excited continues opportunity gaining improve, us optimistic efficiencies

Matt with back to turn that, over questions. I'll the take your And to call

Matthew Rohrmann

do you to ready are Thanks, question the X over queue please limit please. you, have questions line we your then rejoin followup, X questions. to the plus open additional Jim. for you Operator, Jamie, to now questions. We ask if

Operator

from Instructions] Our [Operator question Michael first BMO. today Zaremski from comes

Michael Zaremski

a strengthening. kind of go-forward is basis rate is strengthening the -- about on on accident on segment? high your core First that the Directionally, question predominantly negatively year more should Insurance run in 'XX level loss be impacted Everest thinking the we ratio impacting

James Williamson

Mike. for Jim. Thanks the Yes. It's question,

So an it's think you around XXX the be combined To way year insurance is the us, that And of prior going get for from I combined. call of ratio. a ratio, somewhere starting let's point. would year our accident insurance about that's results, and to our loss you the little year development combined to XXX, view our that subtract over sort if

from this at of clearly prepared intention moment. the sustain they away where one casualty that loss things is Now to are our it is the at picks our comments you, that think, took I our level

going all reserve credit not very to indications. of confident flow them actions enacting until we been our credit We're results those take in for that underwriting to are of not for I've take their but through actions effect, which going we're the the

that's facts mind. of So in set keep to a

piece other short-tail North American casualty the very are insurance that's remarks, of we opening experiencing strongly. But referred and in in growing business. this We're I to our really very terrific our important, results outside my book,

that repeated on QX when into You'll more get our see results. details we

both performing business, property excellent a is well. performs at extremely international is mostly insurance That Our book, short-tail loss ratios. specialty which and

I relative our a so point, And roughly to over starting combined just in taking of in businesses tailwind the XXX that obviously actions we're growth is over casualty which the time, described. to result those relative mechanically that will

say, not I when We've the going I provide give to and some other ROE forward in but mid-teens given it, time. I thing do the indications will indicated The over we're this mean cycle. I I guidance, say would moment mean

objectives also As return for return into an operating we plan with compensation targets can annual the And other results That we is consistent our that for complete in expected That all you an process. XXXX goal. business. our translated of company. expected operating believe gets imagine, the and

and business where we So give you, that to think, this information it's is should understand I going. enough where think

Michael Zaremski

you've created so is about of And thinking kind a my follow-up -- runoff segment.

-- business, You side. nonrenewing on a material casualty of the about a lot talked of amount especially

be term, being the muted should in higher basis? we, So a growth given on a thinking likely bit expense to more is the ratio forward be about near

Mark Kociancic

it's Mike, Mark. Yes,

with I you're on spot think that right now.

I what by half would we in we're to material shedding some stickier of are U.S. expense see this of to will XXXX, XXXX in will a ratio amounts casualty. of similar reductions but growing the in We offset other where areas, And premium be casualty. call dynamic the that last

Just point come X back question. other to want first to I your

is I think lot in casualty on that process like to of point XXXX. Jim color. to other you remediation the gave that good it of a One book I'd U.S. add started

in for XXXX the loss ultimate XXXX. the And ratio we so that encompasses had book entire

to And a or a business ratio. going of nonrenew XXXX. would that's whatever expect is renewed to, being I not higher want legacy business that loss to obviously, that simply call be as it you with during XXXX. And Jim And in legacy coming is lot that mentioned, much completed remediation

picks you're top so composition better that the mechanically, booking to book. casualty you see loss of in on we're And of going the that. go-forward prudence a have And then the U.S.

that So XXXX. over you'll to develop I see component another there is that, think

Operator

Our comes & C. from Raymond Peters Associates. next Gregory from question James

Charles Peters

came Can with go to this risk this new wanted historical on central building top about the you insurance with just your margin I this into practices? you you're your in give -- margin risk Or back estimate. both something comment -- how building about -- the you to compares of margin color how the that about you're talk this Is up business? that number, and came and risk inside reserves? can us reinsurance some

Mark Kociancic

Greg, it's Mark.

best on first, So we management's claims liabilities our book estimate.

with as sense give this estimate. management to classified And actuarial lines casualty margin you the estimate a the the we've some start actuary and on is we from the central So ultimate expecting. between difference the central management U.S. year, that of risk losses the

think you patterns. loss itself, Obviously, development about charge drivers So actuaries of in taken into changes you're the when some that account. results loss here, the seeing meaningful the our of emergence, have

risk our loss start with on is into market, basis, own And Management more to auto, you stress And taking it at GL look comes granular our we experience. our the environment umbrella, of factors view. when and the a based its view experience, in you development those that account see. commercial on

that's -- And we're so we're margin, taking of point in risk from margin, more prudent views resulting a this additional talking management from and view, our that about.

estimate But ultimately, the the X components add up to forward. liabilities management's of best going

best now. it's estimate definitive we've we're because more seeing So management -- loss on say environment years U.S. a for the a I'd now It's trends liability. for pronounced had few more

view over losses and And our portfolio environment. now are adjustments charge. into time. margins market the going of conditions And of us we're the develop over these clearly, be larger So the account guides given watching the to the take the we'll data as size make we time ultimate to risk and as

best So that's you how margin risk management's within get estimate. nutshell, in to a

Charles Peters

will inside reinsurance, charge XXXX. and re-underwriting the see pieces reinsurance then on other in favorable with when raises some pockets, see a questions. you in question recognize just offset some substantial that did the be and follow-up development a moving But the The naturally X it we

reinsurance charge about the in maybe in the the casualty? favorable the talk So business that offset development

Mark Kociancic

again. Yes. Mark Sure. It's

here. points few a So

mortgage actuarial smaller our division last outside net development several with reinsurance mortgage, very U.S. all, had well favorable mortgage. favorable no both Really lines of we it redundancy and First favorable in property, had casualty, material year, year. a clear pockets. division different the by development. year, lines, well of last development multiple well, similar substantial amount and And as The led We performed in are particular in other property this of an was for property where seasoned. well to

actuaries indicated On deficiency reinsurance. $XXX U.S. the casualty side, in the treaty for treaty flip a million casualty,

And to address so it. decisively something was that we put as we wanted

at looked to actuaries that we using. action. it. And wanted at we decisive looked We take, again, loss So development factors also were the the

And $XXX added it was in million. we this risk -- so a margin case,

have obviously, other year-end would process. for happen quarter takes net Now there's reserving took we and reinsurance. X in And normally PYD that the the we had favorable puts we -- -- development, in

favorable than something of we took showed, prudent and the rather outside actions is development. as net showing is development any So clearly that elsewhere U.S. seasoned, well well really casualty favorable

Operator

Our question of next comes America. from Shanker Bank from Joshua

Joshua Shanker

reserve in conspicuous If the mid-teens we not there a reargued the the announced actually any that we significant When And charge years almost segment creating really it at was seem go company's Everest XXXX charge. growth of adequate. recent are that insurance prior reserve back to there worry history, time in pretty night, and last years problem. the in the skeptics the the look in was more is

years we is enough change I some that seemed forward in that passed time of sort recent years? put period there different to can business the to those more a strategy created in underwriting that concentrate the in But think in that insurance and has XXXX bed teams in ways. losses appetite was the engaged a that

James Williamson

Yes, for the Josh, it's question. Thanks Jim.

about Just think, of do insurance the don't on substantive story I business forward? since sort been seen couple I That's, a were better a question more of is problem. And then ensure spot. in good the as feeling in get se a indicate, that. the per good the and growth think Look, and a about XXXX XXXX action much think this answer. comments into you very your that in reserves is I XXXX I to you've us past, before

and accounts a of made by being that see in in served subsegments, to would As to the programs about certain have talked sensitive certain auto think in better large clarity, terms writing been that talked challenges loss presentation, and of overexposure the in of interest the for indicated transparency large specific also I classes in appetite, the about program, an were choices I we guaranteed cost jurisdictions. I you'll related were type fleets

it And our accounts I right appetite, division coming tighten regional as all so when look, our the our the to 'XX. markets, quite in March is guidelines, than XXXX, we're took of fruition. we from the That's in one it over actions up and from significantly our confident the I different yield And brokers team, write strategy. I indicated, think focus the the approach beginning approach different And to that's with outcomes right of was we're the in a were to quality underwriting taking. taking change XXXX very until the best will

other Slide I This on even in would well today. thing underway. presentation things beginning a the The of you'll indicate, began this X, these 'XX and that. flavor before does the and get you not see at well begin as of are This

And growing book we're portfolio the the remediation well extremely and parts so getting have in well. I And key excellent the down the path component performed action. of of this that's think of results casualty of the that a

outside excellent business, surety risk of credit financial at our business, performs whether casualty, specialty our property, U.S. political If other levels, book well. that's you our portfolio, lines performing look extremely areas;

So what are that most on is I relevant lots strategic we is build today. doing the to pivot is that But there. think

Joshua Shanker

that, in short-tail That reserve of we want in follows concern favorable to $XXX adequate wonderful, the But book 'XX. being lines? redundancy on short-tail potential and now for talk is here My adequacy regular are is And trends If expect in yes, suppose, over significantly things are experience down. the that then action, it's this lines, being I significant development persist goes I and million the the adequate, should of goes to XQ released releases the in short-tail in adverse word the the favorable lines. in $XXX that the million a it's offset guys good development all generally about reinsurance it's from good. favorable,

Mark Kociancic

$XXX been the just of closer it's the Mark. million something The for Last Josh, favorably time. favorable year. a to for last Look, embedded good development some year, reinsurance, was reserve feel in release developing that's million. we net about probably pretty under we had portfolio it's $XXX margin

there. $XXX of margin We seeing predominantly to favorable something and we million good year season. close in million this good think chunk about property strengthened year, you're a the Last little mortgage. I we feel embedded to reinsurance. casually over It needs development have from in this a time $XXX of year,

good We're that clearly environment and So while It's seasoning on highlight, trajectory. I year, and main concerned we It we casualty expect there. the and not have it. that this on really portfolio, was about treaty the think, thing great acting is is about The it's it, very nice the developed. now. we like risk a it clearly

feel elevated for So And a this good we the into just feeling about of see currently. risk very to very portfolio take building margins the we're think is And added we're good reserves. in the we're good running short we tail. account mentioned, I The margin not those We've well. as reinsurance, about environment spot future. risk we overall in kind in

Operator

Meyer comes Woods. next Shields question from Bruyette, Our from Keefe, &

Meyer Shields

some sense I begin, you give to U.S. us analogous I trend to you're the booking? pricing for hoping that XX% various casualty the the lines guess, loss to could as insurance was

James Williamson

Sure. Meyer, Jim. it's

of particularly of driving excess trends. We remediation that change been we well those are have in the to really this portfolio with respect ensuring in rate focused,

back in had in commercial We for look a auto the to we were in you the were if mid-teens liability. low was excess liability our and results, QX change so general And XXs. that rate

numbers pleased -- compare you'll gas. off letting and think when you'll talk foot about we we're I those to our QX relative how be not results, the

a the a process, approach preserving I over using of get mean this X usually, renewal line. remediation you step the And profit interest cycle, number top renewal not target to means As in to stair cycles companies try changes -- renewal of these I've to through in which typical. seen remediations. that's remediation, X account indicated I multiple we are

future. that in walk great it's to in not is Our in seeing away our excess And -- continue rate And and won't bottom line accept need accounts that. doing it changes. of X the achievement, fortitude than needed those to is We're much do for renewal, such you're trends to those and rate afraid the these of we're to from we greater why the what just drive for business. intent that's

Meyer Shields

Second I is silver was could question, you capital talk required ratio expense lining pressure bit if to less the it's and plans to to the overall. little a advantage about hoping less you're going valuation take maybe I XXXX looking the pressure. at adequacy end of be guess, premium how maybe capital year

Mark Kociancic

operating Well, remains think a the strong, Obviously, Jim Meyer. and normal strong earnings management we're foresee earnings we good strong also mentioned, where a table, through options for position very strong, the the plan market a of company and capital taking capital our that would have capital ambitions. issue in about about. strengthen is the expect with I hit very are normal accretion, position capital here, in with. us the supporting confident I to feel XXXX was base retained but that its we be XXXX. and And in Feel in target feeling there we're we on the begin continue I engine to for No The to base, good XXXX regard.

Operator

question next Alex Barclays. from from Our Scott comes

Taylor Scott

help just more? I top want could generally think decisive renewal, the is line. hearing Like it Even context -- agree, on know up the you understand was like one And sounds heavy the that to I just flow last hoping of hoping. seeing the you like -- will or competitive to any escalate like trying or it to already taking we a going numbers maybe rates begin? for quarter just do give side have I impact we sound how had month as I X flip but that bit here guidance, casualty, you much people it of would trying sound in when in growth did quite remediation does from as of in through it First are X I is don't than but the doesn't does is were actions, the I'm that market as of we're thinking for even pretty ago. more a it guessed or you're premium

any want of that? in we there's to to to indication where are much understand around top you'd line So kind And lose if just expect process? that how

James Williamson

view comments it's me my really and everyone couple so top Jim. mean, number way make is at One, arrive things. the The Alex, just clear we line let of of I X top line. before else your Sure, a write I accounts, question proposition, answer you we up deals And those all really compelling We market. to hard add good done pipeline value that's top terms. us is deals, all to after the that, we favorable a available we've the our negotiate and work line. in offer on the

we're So falls line top to and line outcome. line a the that on get to driving bottom not top process. out of focused the We're

last casualty rates. I also comment the would just -- your with I would -- I don't see world alignment necessarily in about

need that anyone number a across of on drive no way. We're I've that is there's giving think casualty the acceleration seen to up rates. higher sign I seeing that fronts

way maybe And -- different bit the so that's just I little you're than it. I a think describing

some mean literally, exit that portfolios, to this decisively, were of day participating cases, their of the they that some start the began I staff near giving I direction And the a over took in adds took over in the And to meaning in. at are of work end can the I or March. this of then we an remediation, the where 'XX. businesses to some exit in teams indicated, of the terms some tell as I with new business In the you, I was and I shedding business,

bit expect to remediation. of that I finish work. And this Obviously, then it identify process year. then all challenges the time effort takes remediation as And you had. little that We to get of a to did sources we've of the said, the I

the that I about if in we aggressive look balancing about the to We're kind say provided, slides portfolio we're we and think the action. And of it's middle. like done. you fair underwriting at talked halfway

kind like we're maximum curve, So remediation. you that of in middle will, bell of if the or

numbers, then QX again, much remediation will And subside line anything our the about into QX of writing target or that and it our QX numbers, about absolutely our that. built to of worrying is very not effect should start our it's that so in after top deals, it But some in in the be right numbers, nature.

Taylor Scott

one the for out strategy guess, Second emerge is here. as period I have the remediation I just we of on, you

business, you as out focused For on other this expect international that further build-out? beyond insurance have the we look be any in remediation? they do for Are business continue you the particular, there plans the to

James Williamson

insurance want it's I straightforward. question. We when account can to solution. large the in first all to casualty true for thanks international makes our need It's pretty That's broker share our strategy, they strategy. global clients with their in this place That's any strategy be comment, true a call a international. you Alex, the and in true robust North America. is specialty That markets. best property a of is

proposition our of lot practices, excellence expertise support of of not the of a things have We and value it's data investing underwriters, of the that of strategy, to it those change. our our backing precision the in and and strategy, actuarial quality handling analytics all we're and our in products, terms our the claims going

an shareholders. done about U.S. continue strategy our is the And I that that, the forward. have returns team we look ways excellent what that really and we with as we that excellent the and at that knows of we've that what know, we when performing all focus our well, know can the of talked level with that's been that to exception business. here, this got generate about for is And and drive strategy of we clear we'll exception casualty, And

Operator

David Motemaden Our ISI. from next question from comes Evercore

David Motemaden

and by again looking year and then. amount just the that ratios 'XX Slide I back me accident 'XX casualty a accident is, to see loss a at and given My was 'XX versus year 'XX I the there's the reinsurance in reserves improvement on versus that surprising decent of guess little year, question X in environment then and

me year picks accident So confident think 'XX could and through you you in how help on those 'XX? get

James Williamson

Jim. Yes, David, it's

and limits had gaining been extent, and up mean One, in the I conditions fact to to the been of couple a see very So an great broadly wake comments. the think industry really in did an loose going have escalated result of too good, to loss I that not in industry as see XXXX, And being terms results. much to pricing start I I it improvement and steam you And through plays industry was an to think that. ratios, it comment, right? you're that. think XXXX, equal other was reacting own all broadly, that's to a So very things our

'XX. I 'XX and -- that the people the sort my is and of up own behavior, were in soft do bad of the waking start 'XX 'XX, peak view market

done us and reported have assessing we're job thorough our with actuaries of claim we in data, and of reserving our rigorous incredibly of constant cedents in communications open portfolio, volumes Mark have all an this a And on very picks. Our risk assessing which is the been gives have margin then general at what had confidence relative right top we as that. we indicated, added that to reinsurance, of as arrived comment a also

we just where about We inform to we get maturity. So good where go are starting those feel to it here. are, helps and from years to

Mark Kociancic

David, Mark. it's

me clearly Euler graph. add outlier XXXX X an on bar it's because Let point the just to

of did They're nothing treaties So performed couple seasons go smaller stop-loss There's from that poorly. out, a to we forward. really have maxed nonrenewed.

outlier that more some just of classify an one. would on 'XX I give as perspective So to you year,

David Motemaden

on And margin. my follow-up, then risk so just the

reinsurance at year end the puts you both on percentile at side. in think actuarial So I or were guys end for and least or insurance casualty of that where X% what I casualty guess I that's reserves of it's about XXXX, insurance? range X% wondering the re think estimate best the they of the last I'm on casualty

Mark Kociancic

the puts -- Yes. And best really us estimate us of for in range. upper end part. spectrum, for the it actuarial look, of reinsurance insurance, the high the puts at We're

that's So specific as as I will get.

Operator

Our question from comes Jefferies. next from Yaron Kinar

Yaron Kinar

I a of here. have couple questions

the So, trend. starting risk that still prospectively, beyond examples Maybe so Jim, That remediation about even attractive? elevated the you and end parameters accounts, talked today business loss of the you business and up some in tangible written change certain provide indeed interested guaranteed of we you rates and being you But of actions accounts, maybe pulling in confidence in? from could give back will -- underwriting selection large with doesn't be challenging you're the can start and some pieces the share that on.

James Williamson

pivot the for question. thanks Look, making. Yaron, to the hard Yes, really it's we're intensity overstate of the

then us writing estate, are we're of instead? accounts. things What experiencing created but example, effect of full the real real for we Well indicated recipe basis for not estate and doing that I writing for one large writing loss-sensitive And marquee it. cost guaranteed example, only so was magnifying challenges social a the today, for accounts is on inflation which a

than accounts So in large these other are real industries estate.

engineered whether manufacturing, tech sciences, a it's services, life to food name it's So examples. few just construction, highly and

again, may necessarily We're higher in accounts, very successfully up loss. major the of brokers. writing liability and tower call a lead have be best-in-class programs. written, as pipelined participating outside or with umbrella. to We a but excess, We're attritional of doing so law-sensitive accounts offering the not million We $XX I what these little are general up we're it marquee

a would happening property which We're across importantly, been attached not Most ever we're writing in now been. of lines have in offices business we regional also more the the chunk our of much consistently program, have than past.

cetera. We'll So part solution. write that of might of we'll business. lines, We surety. We'll financial some political property line write a risk, credit as a cyber et write and write

So casualty. the we're account, not rounded getting writing just a

teams. our X have crystal we accounts, your doing Period. to meet If have business The the other the any -- how and rating account, this interest team understands these direction the casualty you that we writing loss does entire otherwise. sensitive on very in is with larger involvement thing and that's profile process. in and and target each clarity in provide that it important, loss and focus No just it's profile, cultural, every it. not it's write business about return I don't interest business doesn't our actuarial for return meet But

speed above of business new very renewal best to have on able of lines much every all I with change. why terms basis, and one have for business. which our you that's segment a our of robust of And the we're at in those and this -- segments affect focused in our as target price on business the accounts pricing. of lines We, confidence imagine, We can targets so very each writing or and we're

I thing recruited casualty here, making these have decisions, particular, say, should it remarks, maybe that world-class started and my and last I in are prepared -- The individuals. mentioned during I would but people are in for the myself. like, on decade. them They looks I willing only a I've of some good that's people and know we're put with book. what the well of thing worked have our many over these to

taking you we're pulling not for. around in are looking getting you're we And the it. time of this when results, not We world-class that gives after terms portfolio our hopefully, to perspective get and

Yaron Kinar

business then you risk my just decisive. that looking planned to as there renewal broker risk It unusual first X strategy? the does. strategy, that a And through and very do you at certainly the But broker the ultimately, second a making call alienate want? is you not you it, there question, this for is is that Is that, it

James Williamson

willing I this question money underpriced. is we're to mean, just that approach because for to continue it's business Thanks I lose write first we Yaron. think Yes, process, that's all, And do X. as not to appetite of my important.

to we we've rate. getting doing mind not The on argument that the past. with or demanding sophisticated, our brokers the do The I'm XX getting underperformed know our fact points that that are them of need majority that other rate, of brokers. to I'm vast that to that I'm is in argument. business leading from that we an what willing not keep are been They do global an has can't in our retain accounts continue thing the we the portfolio

business been quality had point successful of it's also the And the talking with about. very I a to same new that I've the business have writing would pipeline fact that type we brokers.

they're to Everest. continue clearly support willing so to And

you process. We very our all teams X I've are of are meaningful When overall as insurance a of their major and this for from market business gotten brokers, gone their business. leadership major, top we support a through reinsurance them. we've part with add our the

from at walked there those I'm And it's to because away to going that's they changing of be sure an it's this one is not that we broker companies portfolio the so but account that fortitude around a down our upset wouldn't before increase? our an and XXXX. is slowing us rate turning commitment individual and XX% happening, not end take of

Operator

question next Meredith our Brian comes from UBS. And from

Brian Meredith

for here couple A you.

good maybe process the that to something kind free of maybe up this LPT you in for or just are an First of bed, curious, the this at and here looking any one, I'm now, when went you through put and of history bed type capital? really

James Williamson

create looking process. for we very Yes, indicated, casualty been all in Mark saw with look, you the options, move Thanks I deal and so robust wanted Brian, deal decisive we fact with question. that's quarter. thought the in reserve we mind shareholders our as of clear very to the forward deck mean in that with the I at solution over terms was to greatest Jim. think that we capital and it's can is, and just a is about were But confidence to the company this so clarity we best any to this the simple how have sort the last action of and position for writing U.S. obviously decade the comprehensive we in always certainly our how

So was no other necessary. approach

Brian Meredith

there then management quite that the here. be or I problems core of And often, are mean, I need one second be changes are i.e., you've other question can data made the appreciate is, analytics? that changes but made, to that any operational being systems,

getting analytics, but enough have good work. in a your great data can doesn't good enough, if underwriters, not systems that's You just aren't you're

changes reserving anything like going practices that So in maybe on? on perhaps going and and

James Williamson

Yes.

portfolio. we So data analytics have look, on my all write had have need the and perspective we right this and is we the to

that the actually was ingredient get this needed to the that in fortitude right make the think were got to added I spot. changes portfolio the

absolutely investing So can core course systems our we in Of our we our data? and systems. enhance are

We a have been very while now. for consistently

are, We the stronger to path think, on to I much a high-quality delivering underwriters. automation

of accelerate lines across insurance we of all very a continue investments. in robust analytics our our and in business business, have those reinsurance We advanced program to

on a But I And be to need reserve already and feel strong then of remediate. that's had the that transparent. That's was part business building think appropriate robust part It's what very like completely we've a mean, of I or strong. a not about I -- just process. and the to more lastly, process I

have chief has approach good doing actuary. incredibly you've prudent. as the terrific And responding today, been emerge. our He's facts We they reserving obviously, to a as heard, work. He's

good. feeling we'll So one and does, very enhance as but that that continue build to

Operator

Our comes Fargo. from next Wells question Elyse Greenspan from

Elyse Greenspan

from that understand do My focusing running big It's you of first the guidance, earlier, thinking But margin, right? kind for year, going think know remediating combined remediation a guess around right? How year ratio. And how the I XXX% mean to XXX% accident the of question you're as go-forward of going like at think business about said is you book. down, this over through lack any I should insurance. obviously, -- 'XX, next just about I on I the we is on be you around current that improving think you casualty the -- goals the kind of that? right book there?

Mark Kociancic

Elyse, Mark. it's

to this. about let of a couple me already, reinforce but a add to few just of points We've them them. Just talked

and more you're continue. to casualty lines growth U.S. That's I fin a lines, et think less internationally, cetera. natural shift mix our going tail anyways in seeing in in insurance shorter division to concentration

have combined development, So of the business, think, I you're a natural mix going ratio. favorable in to

completing Second some obviously, higher point going not off is Jim the in this remediation the loss accounts to premium or started XXXX, goal mentioned, will in on run to means renew ultimate don't which that as will and that of we ratio. a the Xis attach likely XXXX, it unearned with year, of

ratio. naturally loss will down book ultimate better come a go-forward the so And to

as there granted gets book as that gets get the -- a but there to of will book in improve Now prudence remediated. level ultimate our view, it be should to us

well in a little scaling You've the also technical function just lower which to over the ratio of bit got expense And is significant time. performing very get really growth international the it's a space, on margin.

things So time see trajectory with a we over have clear other combination the and downwards going I in on.

target in So let's ambition, definitely good confident we're mid-teens our spot. Strong a in is the balance XXXX to one. results, operation investment not That reinsurance forget, elite looks It's we pretty an sheet think us. is TSR good the it.

Elyse Greenspan

in to some the quarter, casualty. in you second remediation accounts then third mentioned where the of the And goes think I prepared Jim, the my question account remediating, back you remarks, in on not remediating renewed, more of reserve premiums were right? like before the it this But That a of that right, were focus even casualty XX% right? was the seems led -- book. review,

this, but premiums the that a So it of larger is right, and about to number, obviously, could next year? think just the number do see, you way it, is I big even you as not the could right mean, the over end casualty be XX renewed up

James Williamson

we Look, Elyse. responded. Yes,

experience. the were people brought I of and 'XX insurance and new wasn't meaningful say, of in development and that benefit was we not constructed. that satisfied make we in we because leadership 'XX, was with took of I portfolio As a the underwriting our changes and those satisfied March that We the, reserve at would updated was end over I expertise felt insurance you needed indications. business, with just the I the guess, happened reason based on mentioned, to being And That was personally of change. some without

And so we began executing pretty aggressively.

the of data terms the merely new is to to give ways, in more And get process, need things in certainly that cases, of change. the isn't unfortunately, we validates, then that the adjust I our some Now a it to to believed In reserving need quarter, through means go if get fortitude XX% willing that portfolio. in some you you a what than to more and up that. do we're going fact But on. focus particular gives of you lot

me about that accounts rate. at way. the lines tell in higher that's lines to of need in you at business true go for Does by to casualty, need in a enough financial don't would us It's these let We it's and specialty concern our I and in not we and to property, that high-quality, fact cyber. it's true may true marine, also the go write legacy true profitable and there worry some is of all.

Operator

question next from comes Research. from Carmichael Autonomous Our Wes

Wesley Carmichael

a a helpful social It's the bit deck, legal of and follow-up on to you of certain the pretty terms some mean the lines. But higher gave but in I reading abuse casualty is little last question, aggressive inflation, color. language level in

of year? that began So into trend accelerating? the And component, of last remediation still fully seeing efforts factored inflation your XX% component kind that the are assumed loss you that was social

James Williamson

wouldn't tort Jim. Yes, it our accelerating. inflation pandemic. what the after going explicitly ahead Look, question, I to We've It to Obviously, definitely we're in that we've abate. isn't I in built talking to inflation gets to about that's think it's Wes, very is, been -- portfolio. say for what well We'll we're to what and loss and deals urgent it's That's social see thanks indications perspective trend portfolio, that our some this to assuming accelerated for a dealt conservative thrive the a environment, it's from a reform be or I happens. that to the we've policymaking that not go there's with. actually social today, committed culture building our fortitude actuarial do get and picks if change a done. to and got this assumption with dramatic I'm that or the the problem. think, improvement loss going But to building we've doing.

Wesley Carmichael

and term mid-teens move the would on color but consistent I your maybe just over bit little be on Got planning and I term, longer that's in just away it's guide, targeting it. a with your the cloudy from more guide. metrics. you're the your comp a decision follow-up, and TSR But the And cycle know cycle, near helpful. to this understand

James Williamson

my about with our look, the you Yes, will be driving detailed, very has contributed guidance, comparing business. forward here something shareholder guidance that spent providing the creation. we're guidance, value remarks, and reiterate I shareholder what all do answering prepared to creation. is candid pretty my about in cases, what we're I Wes, very in questions I will hasn't mean time straightforward. very that our said focused I that detailed And mean, been value in results on it's to I view some to

So going that's to and think going when about about really we results, something there's that talk well, fourth and and I'm going well, speak you plainly not about to a I'm it. going what's of transparent if there's lot I talk be it really to about

is provide I much than guidance. constructive think all of useful thing and to sorts forward detailed a that to do more

Operator

Next question from Michael BMO. Zaremski is a question followup from

Michael Zaremski

acting to on of any first if your as weeks Jim, role. upsized already of last you our that earnings a things part things, you're guess, call, the kind to all, have change? congrats in I new downsized you the been reserves materially? you've it of on been could was -- since plan I'm Like decisions curious Or of on was appointed willing permanent perspective did kind this over CEO, X offer the baked. last

on you or of it put Just curious was there? part stamp -- if plan the a this already

James Williamson

about it's not us kind Look, get going behind I'm the words. business for the an you unequivocally this to was that. action. you consistent the is reflects we thank decisive. forward. move us. as internal all Mark say we're putting tell that with all, What this blow. I'm going think approach around. that's approach should messing our own owns into I by how this to of to And first And I Mike, Well, It It to business not I expect blow issue will you action. to

Operator

do question-and-answer as joining. we'll that, as today's with everyone gentlemen, today's and ending Ladies for be session thank We well presentation.

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