Skyward Specialty Insurance (SKWD) 6 Aug 242024 Q2 Earnings call transcript

Company Profile

Participants

Natalie Schoolcraft	executive
Andrew Robinson	executive
Mark Haushill	executive
Matthew Carletti	analyst
Meyer Shields	analyst
Mark Hughes	analyst

Call transcript

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Operator

Good day, and thank you for standing by. Welcome to the Skyward Specialty Insurance Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Natalie Schoolcraft, Head of Investor Relations. Please go ahead.

Natalie Schoolcraft

Sean. you, Thank and conference everyone, our quarter second Good welcome earnings call. XXXX morning, to am Chairman Haushill. Today, Officer, by joined I our and Financial Andrew and Chief Officer, Mark Robinson; Executive Chief

our We the will the for will lines and call with open begin questions. then prepared today we remarks

other those comments include may financial as turn of future website, from Exchange which release in containing that, non-GAAP These skywardinsurance.com and or reconciliations press previously differ performance. risk factors filed forward-looking Our actual XX-K projections with by a are I results involve section. With materially will affect was nature certain well today release as are over our which Andrew. Commission. Financial in financial risk as of may included may cause forward-looking call with to of supplemental number the types press our factors available information discussed part schedules statements under our that Securities their on Andrew? of contained Investors and uncertainties Such to and along the the our our measures, in statements. factors

Andrew Robinson

up up Natalie. adjusted XX% diluted you, nearly income reporting us. With quarter another $X.XX XXX% Good over investment QX same quarter the company over the is for double from underwriting and our morning is great and you our Thank thank per best is income share, joining and prior which of year. in operating everyone, history income year, last our

we've and plus XX% consecutive This quarter ratio marks growth. the delivered a combined quarter sub-XX% sixth

of equity X a execution outstanding market Altogether, divisions a our of of equity the our XX.X%, and underwriting direct underwriting share beginning portfolio Niche business. This annualized to months year well and level the were and intentional efforts was $XX.XX have also testament Rule quartile these Our up support our our through deliver underwriting us fully enables that cycles. including XX.X% tangible high the X.X% of to per on are reflection across is diversified our top diluted adjusted and functions return all results divisions to our that the book across a to strategy, profitability value respectively. from

As this you given in further Best when of no by commitment, add an the outlook may XXXX. the momentum company upgraded an May important Specialty employees this AM is execution in discuss to Mark? XXX Skyward the This A- am last financial winning will small results with was to the achievement. incredible confident Mark behind that, A fuel to rating. our in I'll read, our of that marketplace. With I have week, achievement are our will to greater The and detail. drive have and force that had over joined turn negative the I we call

Mark Haushill

Thank you, Andrew.

premiums share and Surety within diluted growth. and Global our approximately gross a divisions contributing E&S Captives, for per $X.XX the business or ago. In period Global quarter, and the to division, grew Transactional million $XX income $XX per For per quarter, of an the $X.XX we or $XX.X the compared million net per same $X.XX $X.XX income or of million to diluted for On we a million share year or diluted period $XX.X reported operating written same our Agriculture with Property meaningfully diluted basis, each adjusted our year XX% compared by ago. share reported Agriculture to share

XX.X% Turning with prior was XXXX. to compared X.X of of XX.X% to quarter quarter consistent year the non-cat loss points combined ratio improved underwriting ratio of the results, current second accident second year. our The the

second compared the impacted expense for ratio to year quarters investing compared of the our provided quarter of business. in losses. the regarding points of We the full XXXX, our talked previously catastrophe combined expectations. The losses points During from and mix X.X was X.X quarter maintain storms which convective on the loss cat only cat business quarter, guidance accounted by in X for second We've shift our XXXX. we to increased prior point ratio

target expectations earned in premiums. of sub-XX% a from is with leverage increase and in also expense this getting So We're ratio. line our

strategy Turning to XXXX. with investment pay to to derisk portfolio deploy period the cash of increase our to net to quarter, million quarter, the in investment the income free portfolio to prior-year at income our and second from The million million million asset with compared fixed quarter, invested to an all improving strategy investment X.X%. our in results, yield the same from off fixed investment put Consistent flow our the $X.X continues we $XX.X $XX.X income, income in of increased $XX.X driven net million work by in base. increase the the portfolio $XX to of significant

our of be in embedded increase only investments investments an previously and in compared June to opportunistic the and as fixed due strategic and classified quarter had fair Our value portfolio X.X% almost continued alternative At XX X%. versus XX. million prior-year on a XX% income of this limited is of and $X.X investments. of ago the Income At increased at June our to XX, X.X% yield short-term overall portfolio we from to approximately its X.X% investments in year yield $XXX December XX. XX, loss March investment through. to short-term assets comprised million X% of partnership way beginning from at portfolio north at million a $X.X The work our alternative their was June redemption to

will down facility are a more the we The we finished we home awaiting the a given to leverage, a ratio revolver. facility are bank a facility our confirmation Lastly, XX% and deal with shortly. pay current flexibility. which We debt-to-capital finalizing with and and regulatory new used we federal credit be low a loan the expect quarter final financial have good of portion leverage financing

call me the Andrew. Let over back now turn to

Andrew Robinson

Thank you, Mark.

noteworthy Global seeking growth Agriculture E&S, unit within to as this cycles. our is As our and return XX% growth areas Agriculture Mark and intentionally Captives, high Property exposed less commented, our was our we're by fueled that P&C in are Global division. This the quarter Surety,

accounted Agriculture, XX% management and top gross This our increasingly focus A&H, which a the underwriting quartile of today, in deliver premium expect Captives strong this quarters returns, about that hear drive ahead. Operationally, us will portfolio our us Surety, area quarter. for For of consistently to be this from aspect I an more this and of includes you'll had written quarter. we in

considerable our quality underwriting to referenced property of management together result. a our of unit property our are points X.X in Industry of which Global cats we produce inland Solutions, Our aggregation Transactional portfolio light E&S, marine continues the Property, our XX% and outstanding across have including is earlier of differential portfolio. The and

in Turning The down maintaining pricing you is key considerably. intentional business pure the growth forward. Transactional which ever step most commercial in with strong pricing quarter auto to rate the down in rate and which Retention rate should margins up similarly trailing was for our note is pricing. quarter. I quarter. was mid-XXs pricing and to will by on prior-year have I auto last increase, pricing pricing I in-force this of quarter, that of achieved. due the pricing. to in down the Global compared premium Property We broadly new the going first gross deliver quarter us for or allow business had orderly, achieved will as actions where seen this underwriting continue we our to quarter which driven that increases noted driven XX.X% exposure Property, markets premium our our in remind mix considerable than in delivered metric by ticked Global written the large Pricing to for even marine. softened while metric inland consistent E&S the XX-month made XX.X% aggregate with written largest renewal a differential Otherwise, a in in mid-single similar property our not given digit the year, book further we consistent call. We've

XX% shrink cost decision exposure backdrop. Our of principally loss a above simply to to by it ability regardless the increases. now XX% is structurally have believe We appears that plus driven to is that unwise cost inflation, loss market achieve rate add to in auto our inflation

strong prior-year see the to submission which activity from up XX% continue over we quarter. Lastly, was

take about as one In U.S. the to we of best work recognized places team. like our were Finally, by to June, talk I'd to moment a

inclusive, News the now belief our a focus of direct professional Q&A. & attracting investing and that like This World turn empowering talent Report, advantage workplace Operator? environment, reflects to and positive, in recognition our back work well-being supportive we over call commitment operator It and dedication for the a fostering employees. is of to a result the to the best retaining This honor created that up development. a the reinforces industry. I'd prioritizing for testament our creating to competitive on environment open in and our efforts our entire employee collective a has to for an have team.

Operator

time, this with will we question Instructions] Matthew session. JMP. conduct the [Operator Carletti Our Citizens question-and-answer from first comes At

Matthew Carletti

Andrew, areas quarter, P&C commentary I importantly, linked your necessarily about grew kind a bit you to was could and of hoping that being dig business you more of aren't to in cycles. little maybe this where of kind the

about to, that XX% to you caught longer I kind of do Do of that might that or the today. you mix that cycles? do have you sort stands term? of multiple of perfect of kind where and Skyward think a think bring the that kind I how over business, looking view number, How get a benefits to you're

Andrew Robinson

look, great a question, this. little maybe I'll and context Yes, up back Well, around that's put Matt. a just

seen, roof a cycle access. We describe cycles probably time, way saw when and it saw were lines about soft. than number we peers just years that because went of the had large it high up. a joined have of where various the mid-teens went is access, public increases, high down Early I cyber and go rate my who in D&O in movement and saw micro X been up, So, would on talking [ access with I company, business. remember a very as we then it's I big, through a now portfolio. Similarly, in they come the we kind I've faster Skyward, ] even of big cyber explosive

a that, it of build the the be can so never we're that fully a I going susceptible for just in agriculture, our durability our we growth, business. And of course, that believe this right, really of can was of But our I thing. XX%, had a where predictable more the course P&C to just is large probably belief at of what but we're that that. XX%. year. in the more through earnings. example, like today around it a not while we're portfolio aiming property, we're to business, an simply ourselves buttress growth And go to is that a more was You around overall as quarter only think list, portfolio same less our is over byproduct X/X the the outlook And relatively the at our quarter we for quality the a And

the I And the you sort while they on we just book lines. quarters, about that this So area new we'll look to from that entering by growth, by way, is want of the portfolio. coming we'd of the that announcements of way, that into grow our of not this than at fit some an over lines other grow kind faster where you'll expect as the limiting that to us think rest means our It be hear business.

Matthew Carletti

diving of if in color other, of a other commercial areas of, which what in of of that little broad of and just on One I market a is your commentary what could a issue. that auto, exposure bring that of helpful. auto very loss commercial Can the a book, around down reducing down of are that or cost us particular kind is bringing emphasis across more what a little or on you flavor broad guess, your category? one exposure lot auto your of of, just makes left bit structurally kind flavors you kind entire kind commercial auto auto, commercial category, a give That's remind commercial it us, bit there's maybe has might you down, lots you're be. just comments, of I bring of to there different sense a have as And Great. of

Andrew Robinson

also Yes, great question. a

sort and is durability. we've here, this and it's rising. they there. dynamic what to say from believes Let given whatever me said underestimated, also have is not and profit. up observed, been about but everybody somebody believes the cost or others or about to changing say that because back XX% have have XX% years about that XX% listened X Nobody's particularly or to inflation X And this, might just if just today or that of believe, watched loss This we've I will now is that that

It the haul, generally is intermodal medium say fleets about durability. profit, the So is It's that that is area the uncertain. trucking up I a to it's the question to auto have part kind very, trucking, our it the market. there medium many And a of peers, really distance, it of loss that, is And a kind is will is versus trucking. heavy we that long that whom but most business kind is to the aware to that and bulk seeing is extreme that inflation as we not a seen is And see distinguish of we're of of view it, the not of of relates question But for and medium we're including that it cost lighter look, a of that heavy, no not in. kind simple. describe heavy we've medium the make than market But the of different would not as just to susceptible inflation view end question the on And part between of of then really end. this respect, our we the vehicles. where can you some our heavy us. commercial I'm which more sure

disposition is kind our across is about of this board. so the And

Operator

And next question with from comes Meyer our KBW. Shields

Meyer Shields

ceding continue to means in more gross sure we're like change auto, guess the to sounded to buying on Like, impacting commercial that Andrew, it. covering which of the expense is expenses? you're offsetting the was want auto, Are there I on for just make I It commercial reinsurance. one the ratio? net how commissions reasons

Andrew Robinson

is about increase but of No, actually But maybe think reduction commissions, to net I been quite in considerable step talking very for offset is growth, net we're a talking I didn't auto, change premium there about when by a get of down reinsurance really that There's for of question, structure considerable our ceding in the a units noteworthy. Meyer, which in no auto. meaningful very price. no nothing written we're change kind the the

get I know if it. your don't So question. addresses I that Maybe didn't quite

that does So address your question?

Meyer Shields

we shorter I to does. don't whether more duration? shift Yes, lines any worry think with no, the move surety, know does lines impact it should that the means also at income it from that auto, all guess about. terms I this towards as I there's less just allocation the trend intent, commercial wanted away more fixed is of in and you tails. cyclical sounds like agriculture

Andrew Robinson

I go P&C are to we other that will macro today, X build of been noted up. cycles, part it'll X less hope less sense, grow generally that Well, that thinking which short to another ticking at portfolio have to the look, bit tail. what time area tail insurance, don't little one I instead because specific areas trying think call the of our credit more much longer the lines, years liabilities. are even higher though is That's we duration, position around, shorter think exposed a liability just lines to of areas that over is exposure than XX% you in I a of about referenced larger that about

us duration XX% investment short that pretty at I we've XX% range on holding and by as that much that's other our income portion, pretty We around growing portfolio liabilities. the large, tail fixed a very well that been of portfolio, consistent of the the about and our we're portion in fact to than for So X our say, for be. going right stay laddered. that's it's years being feel good probably would to to And place

Meyer Shields

familiar, I is day property in to that of because just the happening cyclicality. get not I'm global actually what's note know any And just I of last don't the and component agriculture? market. pricing day agricultural question, perfect. as Okay, in there less

Andrew Robinson

Well, for That's note, the global us, all right. we it's to the so over write just first thing business, a world.

is was So our that the portion small the relatively on operation. the of year flat of our portion that only second We thing a rate came is had in renewals, that second was of what particularly this relatively business first quarter. but through,

it influence wasn't didn't metrics. So really noteworthy and our

the about certainly talk context in sort seasons time, the As be will what book of of that overall. on we over we're to rate seeing prepared

Operator

And Michael our next from BMO. comes Zaremski with question

Unknown Analyst

on Dan Mike is This today. for

bit and cat the wondering thinking have but cat just especially ratio, on little would starting Just peers, to the the we Touched little a there. be remarks press lower to than should in benign maybe severity given maybe loss prepared attributed one Texas Skyward's a on the there's exposure we bit relative lower anything thought if it release, it there. the about exposure with

Andrew Robinson

peril effectively in broadly it than be I that I and commercial sizable out. with portfolio all portfolio It traditional of cat. industry. results think, large, out-delivering, thing that that our said our pretty bear others that which we're that a in less insurance our along yet the you just consistently think is, what cat chunk, think is thinking about is exposed. We've means we're is I fire. which should XX% and by that Property, the is better That's market, the we isn't the yet, line write and first

the because by in we relative we think low earning says our we're public appreciated short and we outperformed, so have book and and don't have say liability the being tail point of that this not. we're it's community. believe we a of different. That's the on business. X to high that basis, It that not immune investor no certainly, that of quarters a just cat, It's enough is business to volatility, that profile company, I thing that And to is a

Unknown Analyst

Made maybe that that particularly they're limiting Louisiana, funding by clear. maybe that social year-to-date there if seen you on geographies, reform and where Then key in party inflation, we've we've some have foreign maybe just third just entities. could switching headlines tort you exposure, seen gears progress touch to guys material your litigation

Andrew Robinson

the law by the be that I may that way, know that actually into don't Yes, has gone case. effect.

the is of that the in think by funds, circumvented. of issue, that I terms way, the sourcing easily

So that have something effect. to a material going is don't going alone that like, to be that's I believe

I not that thing. is start there's industry financing currently until in certainly of for we But real provide suspicious. The there at generally, happening see limits action and I'm signs disclosure, but kind bar to disclosure start terrific. plaintiff you organized. and that, well matter are Congress, that that change just past, think think around damages the which like inflation, is action, just the puts but only look feel adjusted some the a is there's what's to until is am and I of they skeptical. reasonable where we awareness. like momentum very here, will the incredibly some the a that a boundaries to practical good have of It And examples starts see fact some talk, raise lot litigation I of more there's And

Operator

our Greg Raymond question And with comes next James. Peters from

Unknown Analyst

is [indiscernible] Greg. This for on

opportunities, the if on you're what of year, you there far growth and you last could type focused clarify as a that you're maybe Just comment over given the to could if division take lines exposures moment in curious what market? seeing in I'm on professional additional the as

Andrew Robinson

been that the during professional of would sort medical drivers. drove who been I which on period a we've difficult a outflow various brokers piece, more a been those in business our the and/or have sure, What the write in healthcare of We the growth growth of an on say the professional. we miscellaneous side, miscellaneous buoyancy Yes, the sort lot for X that the of was facilities, lot were are healthcare actually and on is cyber. principal have on, mature overwhelmed while, professional classes miscellaneous drivers of

And respond. a segment competitive Good the sort the very exposures today of the simply saw technical we that team to very think make it's because we sort understand were miscellaneous it's profitable, I flow book right. heavy more is us that environment a because up can our so rapid profitable. is And of class. to unique And

So down that slowed a bit.

the feel that a important about private, side, that appetite really two And professional good can on in distressed side. certainly that to good our one relatively writers added I and risk, individual I I've growth we've cannabis bit. driver. In comments, an attractive. on there. segments and flip about my book, super there, into away of lot like of we're of pick our the a of principally and like exposures getting I ability kinds market them in of noted It's public. we price ourselves of the And that expanded in that's focus mainline we look principal an WebX us On past book, small of homeowners that at business underneath very sort exposure. think sort been We're find really have that's feet with great only that get are of the healthcare that little a at sort engine. appetite some where a as underwriters been We've on a broad assess areas talked enough, competition the opening of described book. and orderly And and the that that be, kind off from D&O market. talent in to we our amount so we a margins we that basis we professional

in picking other hasn't have about. the as in but very the way. up institutions opportunity, spoke off that we're been and we the some Another rounds amounts And pretty of areas, growth and see I a focused driver. drivers piece material much But business. business is growth that really been do professional of the And the X our a architects engineers, small we financial

Unknown Analyst

from the and investments. gears strategic waiting investment reduced switching alternative allocation just in there, there. income to then you've I with know the increase the income And

And from so that moving we you frame just the can about portfolio hoping think results how should help forward.

Mark Haushill

just a I is that how It's little play say Mark. during I will It's volatility in seen hard the stabilized have judge bit would but it would out. quarter, off the it's past. take fashion running and What to we say in that that becoming running off It's it's time. we the we it it a at if quarter to. expected your And smaller, answers question. a just

Operator

our And next from Oppenheimer & Company. with Phillips comes question Michael

Unknown Analyst

start Rowland on the Wanted for It's Mike. with to Global Property and Ag growth.

So pretty the of unit as would to Ag you be Are the geographies are you what out property called of piece us your helpful. there? growing give was significantly discuss Yes, able shrinking. that anything just year-over-year. there sort thoughts component Their and

Andrew Robinson

Yes, year. I Property We direct. compared in step as in be Global quarter a saw down a this in double-digit premium written last to mean, I'll

the in year business, were have behavior. last But This lot us. was, at the this backdrop. that peak end right. Lloyds, we we of stuff, from the but absolute that was opportunistic I some very place describe, and of of Now, you, not I'll where would irrational darn competitive only sort is for as A of Lloyds. our And pretty with most large is saw There be one coming a from pretty rational some the bits market of market. honest probably

We're items. the basically attracts of to just follow market work not capital who are down. folks looking going to to write to big it the put ticket and So attention some try

too and folks significant aren't in that many very like primary layer, a us. line the taker there are are We

to some our difference that division ugly So insurance. But growth the saw the versus year, And tremendous we're it really on picked behavior we're honestly, pretty by about. is, you we was that that matter fact business go. flat pleased saw very the which was prior of much and pretty out up was Ag, just important there let quite we

Unknown Analyst

the significantly helpful. think of on And is to year retention is rise premium Or driving way that there a net part the That's the LPT runoff net full or causing what year-over-year? of is that the retention about then is premiums? to very

Andrew Robinson

retentions, the that. There around the percent, thing good about full right we is a planning only you bit. year And XXXX beginning for we've guidance, on explained gross are XX-ish particular that net are are we would I those or I But read year, The renewal to our really by net some take changed at really say nothing's of much assumptions pointed way, remains that. I the retention I believe we it assumption. the in the And dates to felt planning or around this and give year. movements, windows our put any programs in and a of quarterly which changed, ourselves sort the that better wouldn't by over Not where to some good changed about. large, has net think still of

the at macro that think I the beginning right the assumption of year was the assumption.

Unknown Analyst

teams a And past if I hired number could have in years. sneak the one more, guys X and you of

investing ratio timeline investment, team the how a growth been bit. for expense the in? pushing you does to it long growth up the you've a sort them you the about there a is When normalize talked to expect And of reach of in, for scale? bring ratio You expense sort take

Andrew Robinson

a it's depends. it The question. answer, unsurprisingly, It's great Yes, very interesting. is really

are executives because our to we strategic. we like, our we big back what do to hold of There our compete of the we certain venture very and it. describes a capital One planning be then that investments ask for year, areas as beginning businesses at in the consider

durable focused for area one what the the be very but an been and it's long that will is making margins And so announcement we that ahead, strategic, might We are be though, in we've payback on that an in weeks longer, business the a time. which here those that of very is defensible. around see

like we so it. And

be more length are so by we're payback, payback months. within the we particular the longer a paying that to is little it class underwriters want But XX generally just that of for exceptions themselves it enter And a seeing we to the And our strategic. and to to in acceptable. of than the XX where paying that bit very time takes large, simply to them, because sort might longer But being build. business, be classes of consider

Unknown Analyst

talent for becoming significantly more market the Is competitive?

Andrew Robinson

the who's market said, attrition their a industry right. for of talent mean, companies technician that believe very adding itself, speaks we leader And attract, voluntary great running there think classes. the that this announcement good that of consider in specialty we was year. last very, absolutely really what is that last we is from, backgrounds, not carrier, dearth for Property these to a are I And year, these people to a principally incredible at But E&S our just what again X%. of our the an off low you really, just coming near similarly specialty companies, life people. point launch, you talent sciences week's talent been and I technical portfolio. are the astoundingly competitive, or great very, are and has at like, for really because an impressive sort of look our are far We're ability fact these at Transactional leading are look that we

There's the just And clearly to market, regardless talent we say the war. what's that. are so of you, question about would no I happening winning in

Operator

with Kinar Our comes Jefferies. Yaron next question from

Unknown Analyst

Congrats the quarter. is Yaron. a This on have Charlie for I reserves. on you question guys for on

reserves, little a XXXX provide just on color recent? could accident guys you tailed and longer years more of for If bit maybe particularly

Mark Haushill

Sure. It's Mark.

occurrence. we context our to the I the take when But in we 'XX philosophy isolated I say pockets through of So other 'XX, in of in do that saw liability need think some here. emergence terms you what of and that,

the reserves and First, going great of I But around our about XXXX, we're year. to we we've not you quarter. We feel and which look was loss movement ground at picks. every the small the would think move our since each how end conservative up that loss intentionally where is going. I very been also picks, you're I conservative remind on at have been our

not have rate for increases. full We taken credit

it. great So 'XX We little honestly, we are emergence, in through of bit and did I a watching see 'XX. where feel about we're

Unknown Analyst

then AM growth that's some And you to think upgrade, context here? maybe how Best provide the just could going you from on impact on

Andrew Robinson

specific a you think happen. the interesting kind don't things of of how value way. by we a I it's assign It's very growth. great I What would can is, question these tell

had you level really can nothing I I of soon was feel of examples it at And else, just as of high very just up think account or on around in that. way, cutting as a I small great in and more lost we got upgrade, another I professional we tell and level, organization my the rating. would across that the is our notch. D&O being If already got part describe little the rating And by A my gets and we an of if you now to A soon with E&O, that as the of given have a team experience, been goes it's I the don't a about a lines back the X energy way is competitive, I rating. professional the had As upgrade, in us market number always that. healthcare rating, as experience that, we ratings the ball A the have jump the included in because an submission And the example an our kicked our which was where has

so that I be really I things feel something as proves point business. quite win almost wouldn't over assign to as to being say, of would that it'll be our if a as just growth though to palpable. and have a result can of our outlook our changes. important more I a anything But use to the I one assign underwriters sustainability this, And part to get I time that out the hey, it, of some that energy were and is

Unknown Analyst

more, I time talking then you losses could. storm some Okay, I the convective spent guys the severe in relative difference quarter. And if one prior about know the great. to year

in I the and load year where in this of would SCS guys out cat losses think you you of versus last in SCS much very just a related losses year-over-year activity Obviously, where high south. say How couple difference geographic attribute the quarter industry a had the you well. number large improvement you of the guys... to called the occurred significant as

Andrew Robinson

part took those. Yes, big down that was this of very exposure one's of say we a factory mean, year It that didn't straightforward a literally and big large and a have tornado none. that I And we a that pretty on one touched a was of a was simple. loss I'd one. top it. last year,

last correctly, very $X loss had this above million. And million. largest had remember I our think was I one we sub-$X a and we in that quarter year, if large loss was second one

with good, aggregation I the underwriting, touches we're what last we're we management, because of aggregation it the but guess if got that to terms cetera, lucky, forms, what we're way it And think lot which down the the coverage do et at good good is and convective has year. underwriter happened roof the tornado that's That what? at price, you've is we it are, you in the best right on is truth well, comes management, storm, a at of, being just ourselves protect can to but so when of good be factory just is, being there right,

Operator

next from Truist our Securities. question Hughes with comes And Mark

Mark Hughes

in the one. Captives again driving Captives You've momentum market? been continue that non-cyclical has these that? talked growth areas, is in And about for that to going What

Andrew Robinson

Look, it's a question. great

market back earlier and bunch risk the So even there who out here's take the there's before And to point a to at that period, their cost the of they it companies a directly a sort I on little that, of called be sort I astounding. management. class in Captives, a believe focus to. XXXX, Long a have for I you risk hard started the think generally there hard would maybe in a just is of market than of you pretty And if during bit invested was reasons I data market, that. look darn around want of soft we're be has technology price playing case, in participate during I cost market the the is and data intractable up. I of between sort that and gone ambition has has goes control. as about obviously risk their greater solutions, continues. right. with it just information mean, shared that the just been up, up that, captive trend. that directly hard believe market, have take our and I of And of, an accelerated talking an in and soft market that That set role important in to think is hard clearly and companies of the case is it up an group you And attractiveness growth

effectively partnership great called we is and really was in our regard, generally a as we it And true the you an those quite made and market. believe in sits certainly around with really exposed loss less areas, we we And we're I a a for one us grow to So you class, on go into based a tremendous And X X positioning I looking within highlight like market. with And I that by that in another the is participants that that. approach. really are be dealer we've what's guaranteed the a years And a to experience key changing automotive well created really find probably this priced captives, to they're getting about company the And experience. that addressing was, group classes, to less proven guess we've That's but of I'll cyclical ourselves bit their ultimately part our that being that based that's that another captive we're inroads the external within our on with side we rigging, knowledge Mark, and when done that one of Understory that think in of example. unique technology things position for move. reputation Weather as solution. One really captive construction shared side cost a segment. against with that. And created where that smart kind crane ago that well,

Mark Hughes

a $XXX to you of be me, contribution? worth going what's refresh business in captive, line And write bottom the if

Andrew Robinson

Yes.

a what So $X is with and describe call to XX% the be, million in goes that. way risk the participant will you it limit that, would to retains roughly captive premium terms associated I of group of premium that it let's the that first a of

writing captive guaranteed participants excess, do and we don't were not in participate they excess participate it excess. cases of program, as premium. it XXX the in on XXX excess or or of And $X of let's into then corporate ], so do total on the first we dollar that ] And And basis. treaties our be specific the excess the in the worth the $X.XX it's goes the XXX if a participate depending XX%, XXX [ a cost say, may that the be might [ on

Mark Hughes

do Then Your you that similar the also that. book? and there? or health Appreciate is kind How volatility historically, volatile overall of profile. less accident business control experience a more your than

Andrew Robinson

an actual effectively loss business, effectively excess So writing are stop effectively, well aggregate our capped. medical excess so that A&H, what a cover as a actually we and specific is cover. our write. That's loss we corridor We buy

And we've since been of process. so as done I've matter this that a year every company with

the range see low. that that business the volatility or in so is might we is reality And that rather

Mark Hughes

growth. that? driving Yes. are What The of Understood. And final are that E&S, strong transactional the there a real then question. business standout lines

Andrew Robinson

put and right. our we what team do, I would GL in property.

team They're folks team They the is this technically great truly following. size under in They're craft little exposure, put the they're take time Our average would terrific. premium just a I any coverage, the charts. industry. have and against a $XX,XXX. understand the off to that

of, on of E&S is the the that backdrop pockets our success absolutely assign as inside we bit And And are occurrence so incredibly think there of and by and saw. if every are that liability of outstanding to I transactional the tied our terrific. people place we're distribution is One there, our as emergence are the on seeing that we place. of to kind the respected And, our side. results well, success some are is who in kind partners. I folks, trends commented team Mark in good And key coming GL is well followed adding that want people on just a already

Operator

it back concludes like Schoolcraft this answer Natalie I to to now session. the And question and for would closing remarks. turn

Natalie Schoolcraft

earnings additional any Thanks, answer We wonderful of for speaking you a in after available support for third call, questions and on call. may participating our am for look and continued have forward to the call you your and in you conference Skyward Thank to interest our I Specialty. everyone, questions, day. with have. again quarter your

Operator

participation conference. you today's does the Thank program. conclude in for your This

disconnect. now may You

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