Skyward Specialty Insurance (SKWD) 30 Oct 242024 Q3 Earnings call transcript

Company Profile

Participants

Natalie Schoolcraft	executive
Andrew Robinson	executive
Mark Haushill	executive
Matthew Carletti	analyst
Charles Peters	analyst
Jon Paul Newsome	analyst
Yaron Kinar	analyst
Meyer Shields	analyst
Mark Hughes	analyst
Michael Zaremski	analyst
Michael Phillips	analyst
Taylor Scott	analyst

Call transcript

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Operator

Good day and thank you for standing by. Welcome to the Q3 2024 Skyward Specialty 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

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

Andrew Robinson

Natalie. reporting per you, of operating catastrophe strategy. than disciplined solid us. losses, the we a and industry and another to We of for Good quarter, diluted over share adjusted per X for underwriting active testament cat our includes $X.XX XX% quarter and X XX.X% morning, had you reported a property, our risk Despite over Thank portfolio thank combined of points management $X.XX an months, in to ratio, XXXX. Through XX% compared diluted joining which of income share. income our adjusted everyone, operating up is less

through year the months up was outstanding equity value diluted fully of our XX.X%. and an return annualized the $XX.XX, per book Our on XX% to X was from share beginning

in the more more pockets, greater results later to call. With in execution to over financial on bullish turn the detail. pleased I'll challenging, outlook. talk is with in I'll I'm about Mark? While call our our market becoming Mark the our this remain and discuss that,

Mark Haushill

Andrew. you, Thank

net ago. the For to quarter, year per for period $X.XX $XX.X basis, same $XX.X $XX.X we per to an a $X.XX share or compared income operating $X.XX the of adjusted of diluted per income share On each we share expectations million compared million reported reported growth. Year-to-date, diluted or the $XX ago. million diluted captives, a for with Gross XX%. surety, million gross XX.X%, $X.XX to premiums third E&S, agriculture, quarter by share same premiums grew our meaningfully or year grew written diluted for per transactional written contributing in line period by the and programs or with

XX.X% Third impact by quarter of million the net grew canceled share XXXX in reinsurance the $XXX net that of written the premiums excluding premiums written and contract was quota quarter were the third quarter. XXXX in

results; second with current ratio consistent of XX.X% was underwriting to our X.X point The ratio year with ratio our XXXX. year. the the quarter combined was XX.X% compared prior quarter to of XX.X% and third loss the was Turning ex-cat non-cat accident combined improvement

and Helene to lesser for in on quarter ratio. accounted During the a only combined losses, Hurricane points catastrophe other quarter, the from extent, the principally cats X.X

points Our period better loss same of X.X of year-to-date XXXX. the is ratio than cat X.X

by XXXX. were primarily line the Lower driven acquisition of XXXX the expectations for third points. The any expense further comparable share with sub-XX canceling quarter to expense in and We a we guidance our the to the quarter to quota third of impact Milton, provided was impact are points of still in of ratio Hurricane costs the year X.X our we the X full assessing barring previously maintain major reinsurance loss expectations ratio. contract of events cat

leverage continue get earned in to from premiums. increase also the We

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

$X.X ago Our of embedded prior by classified our We to as quarter. Both opportunistic yield in versus $X.X compared in at limited decrease the the that a reported was in year loss investments loss partnership XX. periods investments and previously value X.X% was June year XX X.X% of portfolio a at million alternative X% impacted a September million a of strategic fair and were was with pay fixed facility approximately income. the portfolio. At of portion on finalized Home portfolio to Loan $XX million this XX, comprised of a September the investment proceeds and we Bank, used of had $XXX portion the credit X.X%. short-term overall the XX, We investments of September down X% only revolver. we At investments yield and our short-term Federal our million in

modest is XX% we a finished as quarter the debt-to-capital with ratio. low leverage financial Our

Given ample the current our have leverage, new facility financing flexibility. and we

of a the million to part repurchase repurchase value. a Lastly, Directors I'm ordinary Board as pleased $XX shareholder company of underscores to a Authorizing approved program Skyward up our that of of Skyward maximizing our share commitment public is shares. and maturation program has of

our on of repurchases financing position, any cash flexibility, the in repurchase are our program and that well undrawn can appropriate liquidity we and as $XXX act our targeting million. We an we the opportunities generation trajectory way. in to strong or as ability fund confident cash facility either our operational via share the credit growth from capacity strong growth our additional Given has remain

over call the turn Andrew. I'll Now back to

Andrew Robinson

of our underwriting Thank to strategy. our on disciplined executing results our our reflects Niche The you, consistency Mark. and Rule approach

to be P&C prudent, in appears areas Our and seek cycles exposed emphasis progress. to high-return good out less to we're are making growth that the

and captives, focus top of of Skyward, in A&H, million XX% For aspect of mortgage, credit accounted returns. of our has increasingly drive for been which $XXX management this our written consistently premiums quartile to deliver portfolio this area currently an quarter. This includes gross underwriting agriculture, surety,

portfolio focus for the by forward quarters. of of coming that growth be as intentional growth contributor in professional length unit X a noted, where it's we of last X In have healthcare we driven will our which our Solutions, a earnings market Media our our the in quarters' was divisions. again discussed I Professional products cities strong had in and Liability negative calls. In Commercial liability backdrop X at services, Beyond Lines, significant anticipate actions Industry our have just and double-digit I a Auto, each launched tale recently to we look we X

defensive bullish D&O, of the posture divisions change and flip side, we compromise on to I have in the a that in without ahead. these miscellaneous our said return significant in the in experienced given we growth adjustments have quarters both anticipate On That a remain E&O competition and will made on remain margin we unit. we

over us the portfolio profitable continue well-positioned that growth we're I'm our and to surety outstanding other our as execution our and consistent gives of divisions our out growth deliver and the coming to our deliver that as We in divisions. a growth as quarters. we strategy, diversity strong strong transactional confident and well team's in platform look formidable E&S

pure and is assess the trailing quarter. to strong early downward to arrest business above was but pricing too pricing, in-force It the far the metrics; that had property may on not operational hurricanes impact On working activity in rate is assumption a lesser trends. mid-single-digit slow the we by and our we be pricing, to new softening recent delivered market. impacted recent pricing. Global the of property pricing to property down XX-month but extent, continue our Turning Property other a plus our units

As to miscellaneous the by in backdrop I our liability to mentioned, in supportive we areas. continue in casualty cost rate, backdrop quarter, of and business thus, selective actions and our to E&O. And market and for was occurrence the competitive now intensely will being the driven D&O be on decent we're environment Auto. continues an we loss intentional conversely, Commercial the mix mid-XXs in continues be in although and growth challenging, on continue these Retention see -- inflation

top our quartile parts was stride that our activity, continue returns quarter. It as the over we continue public to consistent delivering company, a is teens see all and growth on approaching Niche believe we laser-focused submission upper hitting second and as Lastly, deliver earnings prior at remain XX% we're year ROEs. market outstanding and hard the are strategy to we up our from which strong end cycle. the of year Rule and to of executing We our

work and to dedication open of in like to to is operator Best the true I Recently, This Lastly, for best as in again to I'd the be Insurance cannot making acknowledge second entire a more to passion to our earning industry. I'd Business the standout Operator? team. one now of back by we prestigious our my a Skyward efforts this like in colleagues. Companies continued to recognized it consecutive the team turn which their recognition, places a take XXX year insurance grateful our Q&A. Group. marks organization testament were and call moment our over up to for

Operator

[Operator Instructions] Citizens Carletti Our JMP. first Matt from question comes from

Matthew Carletti

growth a talked initiatives about that you of the going are obviously, new you driving some bit Andrew, optimistic about, forward.

about newer public the -- you a puzzle forward? since talk zoom Liability of like look out pieces of Media level pieces add to puzzle little continue is or think pieces puzzle many ones. lot XX,XXX-foot just -- What and are going I examples kind other that that. a to you bit to other there of kind Can you've added of one going

Mark Haushill

for good the Yes, thanks and morning question. Matt

was that next on come ready achieve on we're are focusing our particular talent when achieve in believe add So of ourselves to of right? So Liability. enter will Because sort that a turn, that well. actually line the to in growth in that talking we've And we already and think talked don't the sort right? person little are area say we're sort is for set it or our in what well, just was uncertain, to that very both be we is join to strategically on an something Most I we're extent, multiple cases, and you we in some What the weren't mortgage. the the profitable to across. And control was don't it's at line of years, we as right, first have is the multiple growth market, I on to that It doing made. -- distinguish about oriented, to with of to true about believe talking that with this quarters, we're those. the adjacencies timing in organization We're and right? the anything. into years the particular you now sometimes look, we're but say ago. what past, in we we're Ag, will of about for to able So thing around continued we And persons of I thinking filling I'd we're underwriting them out expect others want sort at to that Media not to things moment team. X we free need we just to true get And I before will conversations not that moment it or really next that true need that true investments able some is sometimes to most we're the oftentimes starting be one of very that this come, that adding thinking as

D&O turn as pricing public years in X.X instances, a said, way. environment our environment crazy then good. That that crazy and going had a I feel think was we've and right, pricing was we this a other seen in so cyber access, every actually of environment in in, there in -- sort property. crazy one of the crazy in pricing and at in environment I the experienced those very And I regard, just the in came there my like the pricing we've company, And

coming back is access again. Now

that of we're about think like feel the to sort underwriting just to And top I about part about that, so a that see. quartile ensure of that? today. is talking sufficient portion But against I of deliver and we a to is I I look nothing like -- how to Sure, would we're portfolio a in our Literally, trying process, of to will a at are Liability, a mean, outcomes But add I'd is think big just of best when of announce. What with cycles to this like say that but short by we I where you a buttress market that And anybody. we underwriters, professionals never-ending say I in good believe we more that's to very kind well-positioned period add would I there's some product a have final a that. have I accumulated unmatched market-leading is the right, team. and is Media the something more to position time, claims don't comment I

light we're admitted on. And to I take that if think there's we're by if state, bode particular for to it's an in our market. a not maybe of going -- large in that just shaped professional, that's to admitted for that's things -- on in well is great not category the us there's imprint we that really that we're that portfolio on I of outstanding going make put sort really one storm sure Skyward are are we And ability we're other example things. state in the our way of way. how product, waiting and of really right think every do sort well-positioned And

said understand color some question. you texture least and but help a your better gave lot I hopefully, So you at that there, to

Matthew Carletti

great. that in for I then are focus. was other, if For industry, reserves obviously, could. casualty good mean, sure. one And No, pretty I the

note and seeing, moving You onion of that color the think what part Can guys a you while us little of of any stable going pieces managing back scenes kind very give a bit now. and behind since just on as for kind results there's have book? little your public you you're had of if about peel the a

Andrew Robinson

is attention think have look, feel outlook that we don't liability, we reserving I I and I we talk necessarily decent which And even conservative about, I'd you I the others very of remind been inflation, feel Well, is, company, first about the recognizing though, think to is it's the a and we're level. talking others. of Yes. properly is are -- backdrop command thing we sort that consistently you, everybody on the front a pretty reason Matt, say like that casualty. though on like at rate on talking that social a in phone small others, about of I'll occurrence

we set our of in places or our indication. favorable There being X%. the E&S X% seen to above that's X% to but to book might we that side of oftentimes, or across our mean that portfolio. X%, X liability have at with loss development X cases, plus a that And we in business best for our might if might that plus have particularly X% not so indications. But It's us, the or it is that business X, point we eroded or today about our portfolio. or our been very And with casualty on indication looks X that cost what reserve portfolio, particular like. X% some conservatively, buffer we've transactional are I'd plus where some knowledge X%. X% reserve inflation And in our X%

expect we're news bodily So injury severity. And it's we of our seen single about and you good and sort our across movement entire Commercial in taken us, current for you that of provide continue But to thus indications necessarily changing the certainly, us, position this of us meaning see to we're I've the why sort as is any the the profile that of been last for dividends us that, large, sort place backed to is that exposed reserve relative reserved, forward. see quarters. from in is we it risk up by haven't conservative position us where not on look inside that book. and talk context the because we saying And Auto, we've and conservative over we'll the that particular, where for that for of the we can the a few negative haven't

Operator

Peters from Gregory comes James. question next Our from Raymond

Charles Peters

certain trying to hurricane could on I being property here. I'm of to commentary lines, between year. previous triangulate pressure your on answer call This pricing, under questions. to the is what be outcome out called is I going season the for end I'm of are depending Commercial part know just financial you rates of quarter build your guess fourth submitted. where Auto, the budgets on lines, the the you

So as we I positives in, put then those lot negatives about growth hear areas of of a you. for

growth to it signal because share when see internally. the Just how trying program, top repurchase line thinking figure you're invest about opportunities you that don't might out to have in I

it out. I'm all So figure trying just to

Andrew Robinson

one wanted asked able It's be share of on being -- and we the release out this And address announcement by then our we're call. repurchase as the I'm way. of it this question. program part glad thanks, get earnings the to to reasons

you question. asked glad I'm So the

this. So let me say just

First Mark just prepared the has just maturation that Westaim a his overhang what And the of We almost year, eliminated then, in of -- remarks, amplify is entire you we company. our I remind will first I'll Westaim. said in right? exited. since There's

So full in out public markets now. company the our have float -- our of we the

to in heard it's from to do. our which not consistent this after have have So remaining we believe quarter, and it. And the an use just want grown where of of by of look just our incredible you you about a a company many point the the take When a want the our would because in believe a of quarter, we've remind deliver you thing really I Westaim a as buyback, appreciated which to a maturation. an came Q note us that went look sort at the value stock, kind look It's us use there way right, understand to have and at over to relative that capital, float, are to do we XX% when in it, X we it the just would intrinsic of of us is were proper we and toolkit a we to on what opportunity. that you gotten that the of of our tool share sensible this our leverage particularly been outstanding in this, have to a part We liked I we out public that, that last valued. But to fully our up disclosures I the and our where company. then you tell look following didn't you talk very be last to investors, put the to by periods that time over the results for have for right? So how happened rise on terms still indication as would this is at And our buying start want large underlevered, view of we've we if we understand as company, if company in the just -- price, you price moment share to and others, X.X%, business, debt full a is stock and continue X% we're the the think into not others, compared performance basis you spite you tool we value against this at down. and that will I'll how if of toolkit,

our and against situation the a moments much about is so any not stock. is and I we tool acted company last a have sort if had would seeing toolkit experienced us, of that said, sort it. in quarter, an And there's probably instance where for this the we is full believe we for our value of fair where And on the we where as that, this in time of just buttress this

Charles Peters

sense. absolute makes That

Andrew Robinson

about X%. And it's

Charles Peters

budget -- is crystal that, on to clear Totally the message the. just the for triangulating back outlook

Andrew Robinson

plans we and this we look to ready, side. what the time, time, say reason now you certainly communicate will sorry, time this challenging what a as, call last I more that as next market. And we characterize -- the year, I'm may we that internal say that is casualty our was listen, like. would because our And told last we'll Oh, for. what when is But would again in forward others rate what you moment growth -- it's internal look year, and right I plans the to Hey this be backdrop at year. despite I for than better by it we're large,

now, of I we rates that the feel starting etcetera. think that loss business as that inflation, about What required good would year. over given industry there is right this when about our I -- growth the our the a point, And entered we maybe say is cost outlooks appreciation that that, fuller X saw next X did saw growth you as quarters we first you we quarters. had

that we XX.X% things you understood about in comment, book If with and quarter. our his with and some closely that consistent had had expectations. that -- and prepared some set out you tell did We our the Mark's of XX.X% growth we to consistent this year. We in we XX% was quarter, the the his would flows entirely at he beginning plan comments, was at this how ebb the looked enough that seasonality listen about remarks, for our expectations

market this nothing that And quarter look our us as this we about nothing that darn good feel there's surprised about about outlook. us, And concern. we out, there's and growth quarter So gives up sort a we again, of to and in will that that condition us contextualized to it we see execute, now. in see whether right sort be be of it it will

say I'd so very positive. And

Charles Peters

Okay.

translates that Just your your continues obviously, strong. please? some mentioned In means line Can And to what submission us that about it results, quite be and follow-up. to comments, context a you give top activity. you how

Andrew Robinson

submission is because that about sort the same-store you I'll right? Part Obviously, past, new to year. listen, in of trading every think relationships. The we've of break tends increasing. one like underwriters added in we markets the of about instance if talked last And to business see parts, No, a underwriters definitely we So like little X into to were we time strong the of it those follow sort in but a folks number want activity sales, trade this have with lot of compete Yes. tend kind they this underwriters. right? those almost almost situ their in fully partners

the a lift So that. we'll a result as see and them, will of books follow oftentimes of business

is that's the seeing of I maybe what then market. What part lines in instances, sort we're So of part, surplus more but a there's the question sort I'd things X. it of that But admitted in. E&S most that is that select in lines, for in have lot seeing and no lines more lines doesn't -- by stuff only easy is And what we're we're a, necessarily X, the large, in areas business surplus out will say, not we're necessarily a of are a just with say is our part surplus I coming of considerable number part for. the at, equation, you swinging surplus not pitches notable business But fit and in increased increasing. pitches, the coming markets because of still they're but that's the entirely looking flow. flow right, So will that right? say into that

we're seeing us growth. those a lines an increased in markets, our underwriters. still added We've amount activity new And same-store a together, things of the lot of because larger gathering kind and those put of being course, a of just sort the either number of in simply of X we're markets, are because sales, technology we're so of share And surplus when of delivering increases market. our of I which, economically that underwriters, or first case submission the the improve seeing efficiency gives equations

Operator

question Our from Paul from comes Newsome Sandler. next Piper

Jon Paul Newsome

Totally different income as to changes how of prospectively? investment perhaps. a done be that And try of to investment what you've left we get we just is revisit better sense sort will Could the change made? topic income portfolio and

Mark Haushill

like structure very We Paul, Mark. asset is duration. to the say Hey We like is little. what's of be allocation. the would portfolio. done I I it's the left the like What

focused out in on much it not the the end redemptions in fixed would of more the will opportunistic a for of line the alts. we there's of or or thought the we portion portfolio portfolio. exactly are focused So really that be do 'XX. be left thing the with Well, very is only to That's at 'XX where and small on income

So about billion in in Paul, income $X.X simplest embedded said at core I yield the is think fixed that right form, its X%.

different. don't the move within flexibility portfolio, to short-term backdrop the about great I feel to different the where may need portfolio. are was we that, portions putting continue short-term where I yield work rates, about We terms said pressure of to it have there terms overall that that in investments the anything is, at term. the we in in doing have and be recognize looking Having think be we of of $XXX-ish-million there if that and interest I rate on X.X%. does to change, longer But

Jon Paul Newsome

the current of rate the run in the is the of liquidation largely alternatives impact But portfolio not? or

Mark Haushill

Yes. It is.

Andrew Robinson

work. qualify of to less of out is noted, that to formerly it's We'll in And than just And of case, lot in low We're of been XXs our incurreds kind to worst volatility mid-XXs are just running been you is I forward, putting of for -- cash paid less our part of those. probably Mark be last putting it the to as Paul, number one -- have redeploy work. We've are portfolio. opportunistic what what look, as I just have say. we the of X% mean a quarters. cash mean a returns think would -- Obviously, other them generate that, lot was that, redemption. I we're thing. with obviously will and going a

income that to of don't But continue some -- I at to we're And X% probably work. much put there's to upside thing us what's X if you north for first cash income. embedded that on over We to there's as that. works go of yield the working X fixed average at next first probably forward, know expect on against against is it. The going look the a a circa look unbelievable we're to quarters, if year, of us $XXX heavy quarters, there's you lot we what not of been simply yield it had year into the cash our regardless can stay we year. able next something that million extraordinary the work, that balance market we that replicated had just a of you core on were we or not sheet be we to will was dose on because where on It's sitting put it money fixed cash. replicate to whether this earn with put

that's forward one probably that's to And the next look as working against year. we so thing us

Operator

question from next Yaron Kinar Jefferies. Our comes from

Yaron Kinar

Commercial hear So new and really Andrew, don't caution here. think that's I on I Auto pricing. Professional some Lines

was hoping touch started maybe quarter. premiums you on Solutions gross I Lines written and declining why this Professional So could Industry the

Andrew Robinson

Yes.

So worse the not followed right? has year clearly out just exactly of I pricing continued of a number X is Yaron, easy. the in portfolio. Professional, public it our D&O it, in remind public market. It's we're the become that D&O private insane quarter-on-quarter today I'll over really just a And portfolio and it's have portfolio been, So company D&O pressure an as predominantly question. public it's first, lot -- than whatever it's virtually been right? company seen has a like you think, market, and that for the has into private what quarters entirely So company On thanks out has private no ago. almost time, market, was we

us. short incredible of difficult opportunities of time, blew which the so of I largely you built were that, points, resources and just period a other competition of in reallocating I capital is business, an literally one be of loss kind portion the of built So I've of the brokers outstanding. change are tells finding to will tell in in our extraordinary were a maybe sort seeing because time, coming It's D&O, for from probably tell big met, just thing ago, business I we we cyber seeing points, planning underwriters during would overwhelmed absolutely period thoughtful that in towards -- next with are business which helpful, of that, we've sort I most won't miscellaneous market. we underwriting professional, number seen life, change. on is we're a company had. notably ratios great a our side. We just that, book that a for the book folks X incredibly a but prior here of And of happening bit a what for a when as will ways which side, guys that very, best has it indications we've outstanding, unit, you, difficult of ever for me It's just small seen that's the like posture, defensive little yes, book up areas it XX-plus of take the is the who last gives terrific quarters the we're D&O, what's year, they where are added in just we had miscellaneous our underwriters that probably as a market is to We describe mean, the miscellaneous like, that of couple business. most probably change. And very cyber points. our then profitable haven't probably lot technology number notable. my And of of us way. The fundamental book. us couple in course in years in that a down react the leverage the the are will we're miscellaneous just X that we worked And X of it And as private very of or history

sort I changed yes, or energy tell that you remarks, In that's have We And X, piece would that about it. you'd deploy version something in our third taking I'm describe probably others, the to being to more deploy of probably of our message. is hear I'd that you, on cautious because book inflation. loss with that this to taking other I has and if the construction most I'm where capital team, And what on some it a the But if but then I I more is generally cost right, closely business, of Industry case, an third -- fact, attention of great a better what a believe view are if but sure feel places listen you sort is returns being of have our to time. my highest want rate our period you backdrop, you little and one market listen to. some loss very we're backdrop -- cautious, that I we're in I'm if in short inflation bit we would I and a second every the closely in sure is not concerns in profitable or -- second Solutions, the of cost to capital. And argue CEO we incredible think again,

into areas. And Auto growth So adjustments those sort out one come in I of that things quarters, what that we've accustomed suspect here I do to. of seeing in that the the what over of sort to Commercial that, in in that quarter impact you you're renewables, returning that is think our X kind this or given be suspect look you're is through. kind we're going some -- growth if maybe some of the more of suppressed doing really you're I we entrance the will maybe made, to Energy trajectory business, see

Yaron Kinar

comprehensive. it. other question offering full the to catastrophe Got cat the year. helpful and that That's goes very you're My guidance just for

Western company's the quarter, conservatism matter $XX I load in points a in about Florida highest greater over history. or of weighted that the exposure million hit? where Milton to X think fourth like have cat of Is to would you just that the comes which be here do or

Andrew Robinson

our would not X cats X, year, the we're way interpret guidance the think barring gave within at be is of No, Mark beginning to to that X Yes. the what point unforeseen said, that the I going X.X point I we additional which any that on for days. probably conservative changed is you we we with providing has what It commentary X, is Milton. are believe reflects count from view. We that claim now normally consistent know a get us

on We that. that not very than say our And that. quarter. I to about results have cat we for a I'm to the say more would just going feel loss fourth you quantum good

you I there say. would $XX is I what jumped wouldn't the jump number. million think to I necessarily

Operator

question next Meyer from comes Shields from Our KBW.

Meyer Shields

competition Andy, years? you couple whether and have a different in about know could seeing changes track companies the couple pricing the other in for in any Is way I Surety line that's is from talked of manifesting talk of phenomenal. hoping [ was you that itself or ] and business. last about book we're I commissions record any growing that

Andrew Robinson

likelihood wildly thing bond us guys let's To it's million, it our mean, be monitor is What maybe that you like just using your there's and world no. exposure. just that it's at per levels really surety today number. Well, you you hard soft a and had Matt, a not has given say I up, a that relationship honest, really the straight while between I million, rate a that's good market is to if -- surety no. market thing say, will kind one bonded a the years our We work of will unit a for of call rate P&C And $XX look changed. where of not generating. never bond, has ago part and size clearly is, is the $XX a positive of of sort because market we're that results recently. loss X the soft for But program a this size same inflation

almost once But if thing. XX% it's right, loss place I I you, about our effectively so one we the we would literally profit. argue coming or maybe genuinely brag in mean commissions, I surety are of is to ratio exposure more surety a also day who target have us. not that great an say, out generating everything you're a higher where you in will is your pay would tell let's change world-class have it's I seen every really a the first We a we a part you are is talent compete, XX% been for market in been the attracting overwhelming. company And else have XX%, And or and -- competition. business. are built of that a, we We've there It's one. I positive team. in

announcement quarter. the going got the we're that we capital such sort we do different an part another listing. last business. is that's on statutory effectively got of transactional, contract, all we And of approval We then of SBA, of it we organization that restacks You our the equally last the one our be just recently entities, have breadth where double our what our areas, -- restructuring commercial the compelling coming and great saw can to T which a

end give going normally think the in year. And we as to our just I tool another of is so look that's from a to, out us X-month that, that toolkit delay the

underwriting another ever is business met. And us to in next people industry the really our that's for going So situated the what going some drive best outstanding by on just have of and have I the with be mid continue a year, approved. tool to in the we'll that to side that's that just toolkit claims

Meyer Shields

Okay. helpful. That's very

& monitoring? some we being that should if or out factor the there also inflation we guess, medical think book, should Health be there key I as is other at the of we sort Accident question, Second look of risk

Andrew Robinson

the stop-loss a really like aggregate I it's then so are covers specific in Because we terms your inflation Yes. we and that book, loss, get how part, think of the medical so structure. and an --

on genetics, bigger I are things product, what And is, business that our of issues. the expose like about of think things I'd that our far into an say I prefer is the be directly full understand we're would if table and kind this, that think changing without that, I actions part building it's of prevalence that this product thing you of And excess if think we to that going of the that. right, drugs, too starting with the things designer because are our kinds like some for the what would the that is the consideration at we of us. that experts product had that course

Operator

question next Mark from comes Our from Hughes Securities. Truist

Mark Hughes

market. underwriting. little you more all do know you a if more sophisticated might about wonder I the Andrew, I talk property

find you supply, the for do How now? towers. the business the that of lot a demand, competition property in participate You

Mark Haushill

Mark morning Good question. thanks. and Great

the various the I'd not say property. is it's places So definitely where across we first write thing even

seeing I of writing we our on are more large, business probably marine and exposures a definitely we're in remind the I'll a is we're business, terms pressure market a XX% flow. really, generally that TIB return. writing pricing that [ lot we're XX% or from seeing probably We're about market, there's competition. E&S, price. single again, competitive double-digit that and you, attractive exposure can are low seeing of measured talking maybe kinds the millions primary, a we're writing price just of by say definitely -- than some would yes, we transactional make and So but property we're the perspective, In It's where, the us. That's entire of above and really more ] excess still an millions really,

to So a honest. you're good entirely of be off coming have The different Global story. is really an over, crazies position. taken Property

lead every account, irresponsible $XXX on writing where large portion significant of We so example line are maybe will of heard primary We you that for doing a have in the you've examples what as give that were we of the a wrote million. market. companies a one accounts. I things as thinking some XX% recent I'm D&O bit a rate.

million stretch the $XX think a a premium. that this was layer, So not million leaders off that's of you of taking stretch, just primary $XXX we million which $XXX million. renewed wrote for came entire line, that year, And with $XX

additional $XXX million. That popping regularity. we for for irresponsible. exposure they an added spot There's So that. examples And million with is of see these of kind more justification up vertical just $X no

from their that strong going to heard we a position, strategy to just Global that importantly, Rule of our long-standing everything us share badly. And just Property not lot let our premium, in we're it's of back has it's irresponsible so just sort capacity to number they come to full of for -- fact the when it their at price. around it's multinational ], strategy, coming Niche of that let write managers And market that Rule some business our going it experience an the behaves lot [ our get bring to given our our relationships being it's most at the you've and follow a kind quota support not sort and from do and like a what and and large and of way them players. we're places, despite a with of of in about London have it And Niche will risk with me down grab once done

Mark Hughes

business as we in that say? think is With a mind, the X growth that about next quarters,

Mark Haushill

Property, last is regardless sure Mark, continue area No. relative like allows but incredibly make have around Global let say the feel a And that year, that do our would because could the plan this I well-positioned I is Global that portfolio that we are means million distinctive things this see market plan other $XXX certainly good the enough have not we wrote we in are this specifically of for me I me going year. to doesn't outlook overwhelm one Robinson reasons happens, the if attractive in to will, know that's it business said, this to holding appropriate, yes, us is feel we our my other the looks we which great it great that turn that I'm we're about go. And And very our place we an in drive coming just would we the growth that peers that be these to the us some is that flip by letting memory that, assumptions, side came on this when have within portfolio a say kinds when This organizations. we what of have might profitable believe that in the business where that. in because we of our of way below changes plan already I -- know like into what to with way, line year, year into year, our serves we we Property. already that. correctly, next next

Operator

Michael from comes from next Zaremski Our question BMO.

Michael Zaremski

not you it is, Global than know data profitable a could and the looking question, Agriculture, know Property sure size all to and seen big how guess don't I'm to year. crop -- the if you up, U.S. don't but I exposure we've better first that. if the least so normal I at particularly points season agriculture I have

Andrew Robinson

Yes.

our -- with So year year, going we to Mike, way, Ag. our we're divisions. year, first Last numbers. was into last changing year And as roll next the rough the by

sense. it really, that. place in It's year. about this tiny, was It it so considerably million to a tried above probably put made best $XX where it was And we

you the year. those the run So global in exposure, me, crop the as a don't we U.S. business numbers remind numbers you'll our is I corner that see have to for of but I'll business. next front Relative

picks, very will loss our XX% is our So would crop positive livestock business. way primary not, we in agree some of Americas, picks that we the we We dairy that sort of probably an that it's set loss describing independent U.S. but we given the I'm is Canada, in There's write at year. maybe Brazil, the you're going sophisticated a the guess, that multi-peril say you any adjust reflected writers participate that's large it. in of U.S. over and good the across to and But of their that picks the U.S. will our What incredibly in see level, course of that to and the program I outlook separate MPCI. conservative size, we've year. a

Michael Zaremski

follow-up, that this are know more bit, adds that releases was That's or And and in a lines don't color. puts anything takes lastly, but I reserve -- on think helpful. already Any the you if I noticeable major any just of or was super a as provide covered? small Okay. asked or could kind

Mark Haushill

Mark. there the during it's hey, No, adds puts Mike or were no quarter.

Andrew Robinson

describe said quarter reserving what quarter quiet us. large, very for I we And earlier, would reserving, indicated. as which I above and go a I by to again, consistently is our this Yes. back are that,

us, the side that is most And booked. but a quiet -- we where the of delta and So this should for very right indicated there always thing quarter for we was a on there's book. stay important quarter be And us. the between erosion,

Operator

Our from Co. Oppenheimer comes Michael & next Phillips from question

Michael Phillips

wasn't questions. Andrew, answer maybe down be just where turn about Does deeper mean Industry Commercial in prior couple little normal see into to in or the cuts book the case your is Maybe is of Commercial there you're of to drill to a talked kind think couple things I of cuts that in bit you cautious. Solutions still or to more cuts you here be are that with to On being offset more come to Auto wanted segment, quarters, kind Auto? we'll a some want your there. where come? earlier But you segment offsetting want being you because maybe a I the by more you're or rate. were there of that to

Andrew Robinson

the question, so -- There is thanks for Michael.

reduction hiding is that further that. say So category first the even will right? than down to then rate, obviously, you are with thing are a units rate I that you that hitting XX%-plus So exposure, if in faster coming correct in is you're

So Auto. that is true for Commercial

a making through we come first I X I we been it or of probably the first be what to XX%, were is think the that basically of cost XX% that whether loss quarter really of look inflation things of know loss I for deliver the we of I'll certainly regardless the profitability -- the don't profitability, at I've X adjustments about end XX% more next think have last of as backdrop. XX%, difficult just no year, probably probably talking to inflation that the a say acceptable think regardless some I booking the out will the where if a or about we're tough that's quarters talking XX% that results, are, it. But it's to in longer cost one you you're wherever rate backdrop quarters against

after, that we going exposure so the quarter probably fourth some still through the into quarter. reduction run And we're have first and that

Michael Phillips

Good. Okay.

that earlier that inflation as Energy your the you're and of that Commercial Auto and to talking were part inflation more Solutions -- about construction you well, specific that was was cautious, energy So about? in were or when you cautious also

Andrew Robinson

think -- -- that where -- that we But kind be bodily of we're a specifically business. is that into liability-focused see for Yes. write It's Auto where of been way same on in this which a is things And seeing it cost part renewable you that will solutions seeing injury loss It's Commercial of I say auto auto exposure, What inflation the that very it's But on exposed very for I'd construction injury well-seasoned like as to book greatest and entering can energy. very the for frequently we're of as things other and might it's energy business. is long for at the is portfolio. Construction time, is principally profitable parts first time, it a occur. we as side, the it a sure. business. well bodily have you liability, of a injury happen the in both we're are us some doesn't our bodily really

ops that prem have don't. exposure, some so And right? our the every is equivalent, portfolio GL of in heavy Some exposure not parts

obviously, cost towards we with we're so of greater auto. it making rest is, inflation. view first foremost, driven by see a But describing loss And some and adjustments the where assured I'm

Michael Phillips

I of just get to said that kind didn't I where kind have occurrence and -- or on might stuff, comments but I I emergence like And extra of the appreciated that you recently guess quiet just sounds continue I the But it go. certainly guess Okay. thanks if it before just then could. for a your of there stayed your No, what you're staying business. it's of It was, details. thoughts reserves conservatism some mentioned just the seeing you things that one were. quarter. want And on But above kind where some in the and emergence extra more, and liability see worse.

Andrew Robinson

look might initial of itself our didn't lots be to And saw We from back a is running indicated up of relative by every through have again, position and eroded. up of book, not It's say, what to what $XXX liability, right? our premium X more this I Yes. I our X it's where quarter. that like start responded will I I initial and that. see in we right? So if our that be which we think to X, right? an The portfolio or to and indicated, some practical, right? shot our booking is us not been we're transactional indicated picking than been, one it described, we on quarter, with And below then it's repeat to let's Mark Again, example, our take our the mean, general is where, I clarify we've at X X, E&S quarter. trying X didn't some I booked terms to said at Mark what of or indicated the last seen you books favorable book. And way, plus X has book, of So at occurrence that hand, patterns. look up a we plus liability, not if being in were has of other be and might X are our pieces. with but again, if We on direct is position It sort plus clean consistent what X probably of we I'll consistent mean plus indicated like past was you say, X -- that that consistent. was let's develop E&S to parts million the it negative has at across, as part written hasn't liability, we X what in made of haven't think key for there

a can in losses to loss you view quarter and but oh, you're or period. X unsurprisingly, large replicated isn't so business it well, a be necessarily even our and our period And from large not like, here, over changes might across that have replicated really

Operator

Peters from Gregory question James. next from Raymond comes Our

Charles Peters

It's for just -- underwriting had go topic. to my certainly over curious activity in just approaching fair Andrew, Hey that when frame if your question. delegated And market you one and on in year. Sorry us over phone been I'm you're views. could me seems hot of a the about there's letting amount mute. quite last the help I how that. Thanks certainly be perspective I squeeze your market on to a it London, last

Andrew Robinson

Great question. Thanks for that, Greg.

So agree I there our ops the best at thought portion as encourage they of thing of fronting out kind some that piece kind is that believe itself say of the is would I And market. that out guess like of appreciation. prem have light of administrators very I that. a companies. I have into a schedule look I that some fooling quality. There's to call of That's go the with would relationships we really have of who to there, thoughtful lot of unsurprisingly competitors. really this select a there describe where was industry way the said underwriters I dirty admitted great you MGA exposure competitors the that's business great transformer in some program that some the with disposition. what -- have I have a in the E&S, for of business, overcooks one terms that profitability what there great and of is people or this, frothiness are are would the out long-standing tough I'd say MGAs, lot respect

are attractive. there that parts look, So are very

Niche. our Rule is philosophy whole Our

are So then partner owing of technology, are somebody seek of aren't relevant have go high who dimension number And sort in with valuations just not saying do, can efforts I before we if thing, -- underway. sorts some out much replicate time their same matter who Rule they that our think place, can have number we'll in the But we sort companies distribution, to can of a I being underwriting there of really where it's as where that some and and I we of who to is pretty there out. in echo and of to a that good, partner us. And a would is some Niche business, describe category more which the already that very a category selective. best rewarded our strategically that we a parts those are that's if market our are -- it's what the of with just really approach obviously would

Operator

from next Barclays. Our question Alex comes from Scott

Taylor Scott

at growth driving same think here Global I details could Property? squeezing are of me wanted E&S. a on in the there. some that, were see question on dynamics competitive really strong for the comments the into the I I you to just I transactional on if of end. of the some thanks dig you that of piece more had what's Hey, property mean, the seeing

Andrew Robinson

Yes. the have us, Thanks, to Alex, and with good way. by you

I'd of and liability low dollars what all the the -- is property We say bulk almost side, XX% on are -- the write the book E&S is excess. at of in to I digits Commercial that So in and the of excess. do about writing of us bulk writing limits as write primary the has It's writing full to be that somebody for primary. book been and Auto mentioned, no excess. And continues our We side, is exposure a the measured of double that transactional and is we're on E&S millions exposures we're XX% our the it is, is in about terrific. talking

And And real really -- so a truly think it's GL look, book. I it's simple. a it's

The a great team. We majority have years. that professionally connected has team a of number me been of to for

submissions, large a is putting back I big growth then price but the anything we've added honest. the On continue you liability that's about good. levels. And that to of for incredible lift feel a side, A great increase cost still on of very see profitable dating be that don't off I think bit, good. So in the property, the think to inflation backdrop talk and into one just of hear us very our just about feel very is to to a going on E&S. with when they're it. E&S the that be describe to I loss market XX% announcing. And just from that, general portion would what flow. nice terms And I I average of weighted of generally, sort contributors I and around about public backdrop team there's talent, strong and been GL little prior some coming transactional in my liability, historically still change the is as sort life, I we've a which And some

that our see delivering we a of above indicated with we're conditions I returns another book would probably we're position the bit great As not is actuarial when almost That -- way and that oh, of outstanding we our a oh, favorable like, then book, and really turn sort we well it developing dimune booked and were to a our profitability. to we're market, we like, in in terms said, be underwriting the us the way even tells do review, if every we'll dimune that deteriorating of not this that indicated. would our because

Taylor Scott

maybe to share year? And I weird still think, of out comparable gross what just quick helpful. a terms Very of to cancellation have, last help a XQ it. the Got with on the net in we because sort Can premiums. you quota associated expect bit us follow-up in little

Mark Haushill

in The to Yes. gross about assume of just we is XXs Mark. it's think I terms it low way mean, net.

Andrew Robinson

For the full year.

Mark Haushill

we full the the to about of book due treaties, XXs. but way think for bounce loss just year. Yes, It around it can low the excess in

Andrew Robinson

be let we I fourth third Yes. quarter, addressed us follow believe the don't And what the quarter repeats up, but in wrong, Alex, so that I might in itself.

was first second that unusual what unwound in quarter The share, the third we because the was quarter. quota with and of cancellation

premium, recaptured the of last thus year. of quarters So you third X distorting ceded quarter

quarter share just I fourth good forgot very, asked our gross the always that large X that's the our think remind for to asked is question Property support. and pay was areas, line I'll support, attention very structurally quota thing the And and I would point. the way a reference is with folks is it normal, question, long-standing that except captives net we captives are one I to a writer a earlier, you quota because Property, which share pretty because works Global significant Global

up. overall appetite as portion our sheet bigger our to bigger, start then a goes a as our company, smaller And percentage, and if So becomes of you'll drift obviously, Property that gets Global see balance risk up.

back we as year believe take can. And guidance In good. for underwriting on we we I looks year, some that you try the we'll interim, to next year. where pretty we'll for to we that like of full Mark's of specific so profit I give be the is the that think turn guidance the And the believe get and what

Operator

it showing this for like back I to no am Natalie I questions time. remarks. to further turn now would Schoolcraft over closing at

Natalie Schoolcraft

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

Operator

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

disconnect. now may You

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