Skyward Specialty Insurance (SKWD) 26 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Natalie Schoolcraft	executive
Andrew Robinson	executive
Mark Haushill	executive
Mark Hughes	analyst
Matthew Carletti	analyst
Charlie Rodgers	analyst
Meyer Shields	analyst
Michael Zaremski	analyst
Taylor Scott	analyst
Rowland Mayor	analyst
Andrew Kligerman	analyst

Call transcript

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Operator

Thank you for standing by, and welcome to the Skyward Specialty Insurance Group's Fourth Quarter 2024 Earnings Conference Call. (Operator Instructions) As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Natalie Schoolcraft, Vice President of Investor Relations. Please go ahead.

Natalie Schoolcraft

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

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

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

Andrew Robinson

operating diluted finished by Thank morning, joining of We thank reporting underwriting everyone, and the outstanding both share per income adjusted year you you, us. $X.XX for the strong, driven for and Good Natalie. quarter, results. investment

growth XX%. above time quarterly For delivered third we the year, this

up over to our operating per compared adjusted share income XX% year, the is $X.XX For of XXXX. diluted

strong XX% the cycle of in market discuss beginning portfolio to year the our With financial working. shifting Mark? year of call. Mark over greater detail. to market in to outstanding that, more full backdrop. about Our was again XX.X% equity less our book is on was that and turn focus current call result. I'll $XX.XX, exposed the full later parts the value year return P&C I'll to talk from The share our And the our results growth XX% a of per topline given up on the was

Mark Haushill

income Thank you, net million Andrew. $X.XX We or $X.XX had another income operating diluted per million diluted and strong per of $XX.X or reporting of $XX.X adjusted share. quarter, share

For Net captives, Gross the grew XX.X%. up agriculture, operating for XX% adjusted premiums $XXX.X XX% by XX% year. was the transactional the with the prior meaningfully E&S, our and grew contributing our income and the written for million year prior was written by over quarter. quarter this to the growth year, surety, premiums XX% of each up year of full retention year, programs, for XX.X% the and of over

quarter to underwriting losses, was Milton. from points results, Turning Hurricane cat X.X fourth our our XX.X% and principally adjusted combined of ratio included

non-cat combined ratio the driven year XXXX, fourth with quarter ratio The for in quarter, operating and XXXX related disclosed, LPT, points our what by adjusted recoverable and LPT the Our cat to the risk previously ratio years the the in for related future year. portfolio. on loss January combined XX.X% $XX.X loss to impact LPT to elevated million the ratio. points the to losses increase X.X subject from The XX.X% On the slightly prior marginal In the prior. we with of we the credit the XX.X% increased reinsurance this previously line we and by accident consistent for commuted X.X and for were in net the the was year. XX, of quarter compared year reserves of was removing quarter

allocating and gross, losses strength, the XX% considerable year to year, with as in our method of And by premiums This in we were and last offset claims. and shift total mix rebuilt undertaking quarter-to-date discussed, scale XXXX, which we over accident estimation acquisition year increase and continued of As of of operating to in data to year notable the This recognition of be up are and from reserves, reserve our that net sub-XX. after. of to our quarter policy from during actuarial line policy fidelity I'll ratio expectations a for to ceded converted to general from we IBNR as our that accident and particularly accident note data of and impact strong. years The year. we compared respectively, expense other to accident prior mapped up improvements the for completely our business our previously XXXX liability the our is reserving shorten makes speed now business. XX% and XXXX. each measure our the accident durations both position year improved our by continues year, as costs expenses and benefiting of continue The XX% ratios in XX.X%, but was

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

in XX, prior of that December we the strategic year investments investments X.X% At million previously Both quarter. yield of slight was compared income. a the in fair $XXX impacted X% year At had $X.X our compared to reported the portion $X.X Our yield value X.X%. by of portfolio X.X% were million was on embedded ago periods to September opportunistic our approximately of compared a in at of loss in only and short-term to limited fixed investments and year XX, overall partnership investments classified our December portfolio December was million XX a alternative X% this a and as comprised X% portfolio ago. We short-term our change at gain XX.

Our financial year our ratio. ample from the leverage XX% And flexibility. our a capacity we with is debt given as financing debt-to-capital current low have we revolver, our leverage, finished undrawn modest

losses, our X ratio the previously gross between press on communicated expect and for we as of inclusive written points $XXX XX%, Lastly, of XX% to premium February of X, million in growth $XXX combined and income mid-teens. low expect release XXXX million, we a to X.X in catastrophe and net between

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

Andrew Robinson

public X the years our It remain Mark. now. our as parts for on that earnings believe outstanding cycle. at is we've we're strategy as teens we market mid of hitting We generating laser-focused consistent you, Our And all Rule to and hard Thank to a and top returns ROEs. to stride growth upper executing Niche deliver been continue quartile reporting company and

seeking exposed on that are Our high-return be cycles emphasis in P&C to growth areas the to less prudent. appears

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

X modestly continued of Solutions we have portfolio conditions other to be find softening down divisions. new and in our to posture professional lines the XXXX, lines. investments in by we should in offset attractive slightly Industry but in Professional as in do X some healthcare construction energy. in which the grew focus we growth just had media, continue We the business a given opportunities intentional of Beyond given quarter actions lines more expect the and we double-digit reverse auto, noted, defensive impacted I target. to the was in more commercial growth of that in made

in achieved similar loss by market for our inflation we driven the including actions to I trends. the mix property, a mid-single-digit downward as quarter had in On metrics, continues last. our The being plus in noted, rate. business supportive continues very backdrop in and intentional auto. be commercial are the rate, such, our Turning quarter, being to occurrence strong just of growth environment liability, are to Global to pricing areas. lines was in XXs auto impacted by very we pure be operational cost we professional, some selective and liability, these in and challenging, decent of the as upper although Retention pricing,

the Lastly, in we continue XX% quarters. was to in but see strong the submission teens plus this growth, down prior the from modestly which solidly quarter,

divisions. continue across will growth of our submissions most strong that confident are We

an in call increasing property and your for as ninth position our it we've that to to future As years, now our as Operator? I that Board, are and top-performing continued thank over X recognition. at to Skyward and behalf defend and by yet of our team. as solidified ourselves S&P placing A.M. the mark colleagues XXXX. at to We've reshaped list P&C in accolades Specialty. industry I level, From built specialty and you to Q&A. companies, to of back company our our Global's back growth choice. a success look year the we casualty company with and market. fifth the our XXXX who for a a earning to On our look teams capabilities, the as and in business, consistently vision continued will have A, the for pride significant high place we markets. extraordinary to industry milestone upgrade accomplishments Best just since insurance it redefined as year the We turn In strongest employer immense for I'd place affirm remarkable support, are, operator we This reintroducing key leadership us our of securing like is creating. short transformed the performed full was our on open reflects of forward expand rebranding my leader a up our our in we our earning on and ourselves XXXX, Skyward a

Operator

from question from Securities. first today Truist our comes of the Mark line Hughes And for

Mark Hughes

lot How there's for in this this grower of inflation going be you do at pricing some that see the in looking a seems still data, you it the in think of year? to particularly Just casualty, excess. Do of that's early adequacy you company like market? a

Andrew Robinson

Great there's Mark. lot a Thanks, to Boy, that. question.

lot an a I I'd occurrence the pretty to now there. liability there's might hefty the be And to of Let is, I rate across generally think folks is say think time that me say, market, in I that grow increases reporting just lines. you indication are that look what when the

the in be the probably And X what moreover, if or it's think is, specifically, probably is the that Cat well were a of that there's points don't like rock was years people that I differentiate years or ago they ago. isn't will not increasing we if up market hard, this take cautious a cat. compared a greatly which inflation. in would loss XX company discussion that it not inflation from point continues, loss for plan, at out more extraordinary. us on as of it. rate pretty that not our confident approach. loss think couple thought I sort on may inflation or I'd surprised enough you loading be case, only starting that very you're of And And I trend particular stuck our XX be there your say not to confident that was sensible. can extent just is let's right. And It the And we to XX be X to enough. this

will. loss And applauding seems so, whether I to injury, are that find in rate, of driven going the be a growth. we're from And think smart. that I as lot we're most it that interesting, really to that out I it -- believe because by the being people just kind see is regard, I growing, of prevalent of lot there's shying being sort We're places it when in and that's about sure trying much injury the wonder make makeup. where ultimately away personal growing. I bodily being not there selective outcome Particularly do the it you may where a we're companies But And of like produce we're units. investors as think

we as last I the think measured of course or XX been months the for we're us, so. over approach taking a more probably have

Mark Hughes

new of growing done you about see How new pace the XXXX that. You've appreciate teams, topline do shaping hiring? adding I well by capabilities. How up? your

Andrew Robinson

surety strong business. them X about very your wax a we in that XX our sort on of winner, think time added very back I are of a difficult underwriters with I And We've a way, the business wonders I to in in loss fantastic we can underwriters. to on it. people will and there about need really winner. to add inflation We We by surety, other to whose not question, QX, had the of sort feel Mark, it's having that environment generally winner. in on uncertain a of follow grow books lean be a definitely to been an position good versus casualty.

I the continue is don't think attract going very not talent here our in to that's see the XXXX. any in amongst to ability I and industry, best reason

Operator

comes And our from Carletti Citizens next question line JMP. Matt the of from

Matthew Carletti

you Andrew, maybe on part growing view you to bit adding about how the and obviously have Just time job for that little teams following just how look not you head you it Skyward. Just I that's good and for or table, there, of if little you is if there's organically. Mark's place if think if want inside a discussion, mean off to a the question is really something get about it just talk guys your -- M&A? Can done bit a in it's if a at?

Andrew Robinson

Yes. Thanks, Matt.

Here's to be the get in. what had position you, business sort And the fully X-year a we that there. arc, Over wanted my way, I'd to by we lot work tell the of are to we of I'll do in say.

to XXXX us we having we're I there. grow it and outcome. for in have hard. to surety, the it organic think to was in attract that in if be to want by way, regards, I aren't watershed maybe And we able many think That Like you did you year like places we're great talent. just really XX% doing said, work others a delivered growth that a because

impedes anything an organic The incredibly first is thing that we've created do that cannot successful I'd say is that we here. what engine

company to hired top is, do thing proportional taking risk, And distinctive importantly, more of as we want organic incredibly acquire, my this prior a mind. and with that in don't of may with Head really just accretive the you bar we you personally Because and mathematically just me a be profile we had to company. most trained that risk that. is Development, high. M&A, feature of have at it we be disrupt for that of on. our with that assured to to then but measured just is worked opportunities. But there. going myself, to engine can't say what part can investors it course a that more If that rest at developed we And brings That to exceptionally of my of you're and said, our on have of recognize that if And we sheet Corporate of undue XXXX Because career. the the and kind even to really balance it it a you're something the him him Khan, have we I that interfere any so much risk. who would different active going looks is it if risk terms brings like second anything want you during I proud I'm in Shakoor looking we it's we of are neither shareholders, created,

Matthew Carletti

That on capital. makes follow-up perfect question then And just sense. a

there given of help very right a feels -- know maybe of there Just excess -- we look the equity, on gauge at certain at right that feel goes blunt a time to like how outside you a that instrument, back, still but I should it's think have ratio? is leverage stepping like do to look that level on the capital as a about Do currently? you're just And about premium kind you we I growth? is kind

Mark Haushill

it's Mark. Matt,

to really capital. you're First, I mean, feel pretty our right, about I great X.X-ish we're X, balanced.

pressure we the we're we is what a capital you are. supporting talked I lever little any with where generating revolver, capital. flexibility about that I organic think And could up see about we Matt, we bit. that I feel opportunities. growth really feel We have good don't know, as on the the so

Sorry, it. time, feel third I for about great the

Andrew Robinson

my that which in that companies of I the believe our are other one And internal Matt, the up is revealing we something add much, enough can certainly a out we diversity thing earnings distinct, when without you're obviously year, we single hugely don't one incredibly for go, that for capital. look an we get every of our creates at put obviously I'd we scale. options of amongst for I as this And growth, And through terms us at the approach. company, of pie with as size, importantly, oh credit where diversification. too us. going deploy But portfolio. will the say a one XXXX this portfolio creates put thing, our has for the it And chart like to businesses God, plans multiple for in -- It well-diversified benefits capital-efficient end is avenues is really that's diversification capital a

about Mark he's number our portfolio. here think in if net up of as And says so, more about talking to it surplus premium continue terms when leverage we in in X.X:X, terms, may go to that balance get statutory you

don't As credit I I we enough said, it. get for think

Operator

comes from our And the question Jefferies. of Anderson from line Andrew next

Charlie Rodgers

end, mix the quote-to-submission And other been for the if quote? and then wondering that the have on color you if or slowdown you're there mid-teens. maybe what And in some driving if drivers? changes I Charlie the was flows there Andrew. from could provide coming seeing what that's is might are This on on to ratio or be submission any to to bind

Andrew Robinson

much too you into I know Yes, Thank for the read it. question. don't Yes. if would I

into much example and we're market. and And terms of think is about little if the reported quarter, a very self-evident not described growth true And stuff, which I'll E&S, XX%. we we're had I -- you But the results. that And just have of pretty that teens. kind that It's that's we I seeing. and think very what the the submissions, portfolio ebbs the been, particular for is, plenty had E&S in There E&S don't we I it. we're we're of no It's is submission just out concerns we as you think in flows something writer so in good to we light concerned are write our -- this important area we of growth, in to north not what that's we I for we're down of dropped I from we submission a -- not question opportunities the growth take I comes quality don't and to point lot well fit very going to and that where for that that have any as the XX% of was an of there's about example, where point concern last of XXXX. business the do. quarter, about flow. that said, wouldn't new feel mean a and there, it little seeing we're us. bit marginal seeing

Charlie Rodgers

any Okay. to follow want just sorry, or Great. to bind there? quote, that, ratio on the then major quote-to-submission the I changes And up

Andrew Robinson

seeing really we're if know don't changes I there.

point on lot terms fits There's periods side, the I you see of noise that we're quarter-to-quarter in noise ordinarily seeing in. do really, our quarter you that -- any let's what the admitted business. of market where it to has a quarter-to-quarter. would doesn't can revert I is with back. with again, what then to our exit see trends whether you it not will that see will But we mentioned, from oftentimes business somebody is in will say might a us. not of will, appetite. necessarily suddenly and in it think I flow fit I a be Oftentimes, There as

would And notable report us. so that there really is I isn't you anything that for to there out

Charlie Rodgers

could to if left work provide just an is the And I sneak you done Okay. in, commercial Understood. auto could how on update one, one on be portfolio? last then much

Andrew Robinson

Yes.

or the on think last was the I quarter out reported question this quarter before asked. I

bit will was this I our work roughly of have we're on way, I heard the the think front portfolio. will the XX% not we that to you there is quarter exposure everybody at no me, the point down. top that be and of base the but premium or the far lower because we're right done XX% keeping. of are that in be believe about more exposure that price is I'll premium of going you've is it. else, to more And just now, work simply well obvious That coming I By exposure commercial in have this don't actions as written But pricing fact everything quarter do, numbers that a of up. auto. on the a end unlike in happening little from

Charlie Rodgers

And to end that of was 'XX? confirm, Okay. XQ just

Andrew Robinson

XQ, yes. quarter, The absolutely, current yes.

Operator

from line from And Meyer our Shields the of next comes question KBW.

Meyer Shields

wondering This that is those I Dean that correlated business on was P&C cycle, has of your curious, for business lines expense the was Meyer. the towards shifts implications mix with aren't on ratio. as market what I as

Andrew Robinson

to virtually like -- That's sort the will around metrics, question. -- to sort providing great of what of our other I combined been kind continue a it. We're sticking not think for I'll our period I And Mendoza are of our scale seeing examples. growth of expenses, ratio and of trend large, where there. here. continue come likely of up expense in sub-XX. kind a not is critical to you of It's think it's you we're underwriting is ratio we've line It's us just the now us. But and you're the leverage that us our then give sort costs into sort business facets the for it where I of going acquisition seeing Thank all alone. and a couple through by We're it's will you'll we're yet income is to mean and of I think that point is in great a our the is XX%, other Mark where A&H combined our businesses, business. that sort to that kind of Put ratio, if because is removed any you'll underwriting mid-XXs actually But ratio you probably from geography. so on a business probably XXs, we our than But higher perspective, release there But in on we XX%. run have loss up of it's a sits what wouldn't a it, hugely differently, out growth some capital-free our A&H thing it capital, would A&H, way example modeled of return and drive grow almost targeting. see capital average and see I I'll accretive. asking

And but to we'll so, acquisition continue are and and other on is rise underwriting that staying things would I leverage a there bit continued to our expense. other on by little question see of say a what and in costs a large, happen there, just your you'll to you be sub-XX%,

Meyer Shields

new just That year, I or out you And there just know this last there rolled to about few one, in makes a expect sense. units you was so launch it. any XXXX? was Got curious then guys are like 'XX that. I

Andrew Robinson

liability, bunch. launched the launched a we Yes. quite mortgage and energy. launched inside bit. sciences. renewables of on. Well, year I in media past a We this We did a goes We mean list launch life did We credit.

leaders we're are to to are across always as a our do. that bit talent helpful whether the might things that, granularity over as past launches targeting topline. target divisional what I the things in not years, going are said past, that otherwise, more tied in which things into on. up should have and we to depends is done XXXX or of around Frequently, Because some of things or 'XX be that regard. working at. reporting strategy-led. doing yes, we're we start a teams the I will our can we our on thinking, people pretty engine into in Kind change will to think put will here We're Whether those take range we we've is we that those in that that answer kind some organization. few But a patient everybody have from be quarters, quarters if towards The to lot roll I've that actually You we here meaningful there that new of not imagine, our that to hope. get aiming we're get strong making have the growth a you assume contribution now we to

Operator

the from BMO. Instructions) Michael next (Operator question Zaremski comes Our from of line

Michael Zaremski

walk It's first, from Skyward you're for industry you the norm the And just now that Dan past? change Mike. this why accident through the us just to maybe going year reserve wasn't the can on Maybe is conforming policy to and in where year?

Andrew Robinson

and to say is the sort just fidelity more add? Mark timeframe if that this the we in once, to there's to about by that the weren't this much I reported what anything we answer of you'd question. course, happen so is knew would have could. say that I And got everything in We an terrific. know we let at don't it I'll I Andrew, conforming invented we don't inherited of that's policy always we time and Well, Why to the now doesn't organization I the context. than we have were it, God know. due don't convert I -- year, going fully it. But

Mark Haushill

and knew true exactly. year is, look, done we said year we've Yes, accident to And we a earlier from accident was what What It have and refined to representation. think now year. that just is accident I used it something norm, we it was is policy allocate legacy. It was so had executed a project. it it and the in was we 'XX. to big -- it coming, we knew Yes, was do we year

Andrew Robinson

maybe of States. on don't grew up Lloyd's predecessor but I inside that. works the here policy in year and norm a It's my the a and that's United reason, basis, know Lloyd's, so

Michael Zaremski

of maybe, And conclusion normally there's Okay. with year. ground-up That's at mentioned then just that sticking a the the helpful. you review reserves

this Just wondering if LPT review. outside to quarter, noise of there and puts in takes are annual any the that

Mark Haushill

I mean, look, let me just say this.

the be about. to K and are K that but discussions you takes, really any puts bit to have March filing with statements and our are go get a X. little will talk But nothing There we're We or annual through filed, major on the you. happy of once

Andrew Robinson

will I'd Q this. in. no the And we position Yes, ever best in be And as a look, week In they've did out bottom-up. just, well. the I'd say next been our terms, reserves are uncertain

position relative redundancy that It's an side is a basis, look shortening the on the liability recognition at XX% reserves it's estimate our Our not of and of dollar both sheet. our our percentage ever to as to strongest, our simultaneously and balance in. claims liabilities in XX% impossible a speeding to IBNR indicators on on really we're strong increase a near while been of from central

think everything in the is we of I we were good in a better are position, a and that position. in context

Operator

from question our Alex from of And line Barclays. next Scott comes the

Taylor Scott

I are could update you give all look the was strategy have. on an 'XX? us Where kind as you you 'XX good and forward niche hoping into of you seeing opportunities

Andrew Robinson

as be change for of list emphasis seeing there. And I'll a example Thanks, Alex. Boy, a And care some of highlight comes I so opportunity so administration. remind of a about changing couple But out dramatically market, our of no seeing as product, hard question there indications of One meaningful to opportunity long say liability, a in we you, I in runs Life I that's we're say one X launched change those might the timed business no energy E&S in that I about leader going that of are We've that that the out the in contributor. can opportunity deal that a were there's our traditional there, sort there's from because I the nature around more that of talking of division, sort professional think a opportunities. our a Sciences on a sector that great seeing also seeing from a It part to that got of believe with part you liability We in focus But seeing side question will as the is brokers such, like to the on. I that be opportunity. we're wouldn't particular another them. breadth about true be But sort will lot a focus. really we thing growth also of we that will a the But energy our of gamut. to effects we're addition now, and looks I start handful we -- with probably gave that's of business the area it renewables well. different our examples that professional writing interesting are administration quarters the indicative total. I of change things. energy take we're a seeing administration economy, it to root just will you that's say across writer exposure. is exposure we're we're There's market a the before of of probably I about certainly but kinds that around entry our health the early in great good that convert believe a side. in describe of a lot in and the we it the

Taylor Scott

helpful. really That's

fine a pressure hasn't it Industry guys consolidated I in. you you and a it's a so It all. if As business. ask something is there. something to I overlapping like of my small apologies. apologies some time, least. follow-up, were I ahead mean grown know for been bit affected at Loss. it's wanted seemingly you repetitive, there I'm have about result, the asking Stop It's facing little some calls, seems

think what some market Were hard into if be to been that a new more in pressure you good, going is underwriters been. a even has bit quarter. And it for able disclosed XXXX better anything I to business. mean your it's lean the Interested seems like I of this year? experience the around

Andrew Robinson

been more sort started notable kind of the lot we've we employer XXXX multiple there. had a the a will for an now even basis And in I It's also in honestly, business when ratio it about comments at a Voya, little employees it level, ago, And our business and mean don't X/X completely overall powder no, nothing forth, sort back a the nobody focused thing at us. it's guys places. requires By months we where that's we're have you, is traction business had I loss. of and barring our just with performing And we launched fantastic inside have business one our confounded. our and very, seen that level couple I'm There's medical being heard has a that. It's but a the from traditional dry. earlier ratio traction do analyst of perspective, really And like lot has see nothing there, quite now has if stop it's a of our the seeing with an that all. around, -- write like higher not us. kept our though that return business. of you're the better. only combined thank we area that. that. of see that -- XXXX, business XX so normalized play. XX% have right, in pulled in of opened for for my Because seeing even to at thank never The problems MGAs like said are most run to at And with entities just way, XXX running absolutely it we and business. combined market you the paper up actually And X/X consistent on it's captive did ask it completely mean unbelievable business complemented less. I referenced. to and a lost do just capability capital. about market is We The of A&H back, from and that there's is group a on is, are companies that contribution And going for we Alex, asking individual this boon. our very I captive been A&H we we The in a that of

-- it And Our this saying literally I results success growth that kind company was extraordinary. the stories I'm I the is, names I'll and things market and sort our couldn't, the of are for which of for problems of is reemphasize in in year, was out the over, XXXX of has may the renewals, absolutely nothing there. low like talk teens, of mean like describing and and the our any don't we we which problems see that's be the again, XXXX an unbelievable into something about see do But to the amount XX% really business know I important best something of X/X one our these for of over position coming opportunity.

Operator

Oppenheimer. next our comes from And the question Phillips Mike line of from

Rowland Mayor

Mike. go for wanted It's auto. back commercial on quickly Rowland to to I

the sort industry that able business, of your book, caution any of on line, and to etc.? own what detail reserve trend classes on loss Given there give of your you're challenges sort is stats,

Andrew Robinson

Specifically for for -- are you specifically auto? asking

Rowland Mayor

commercial are the about on Just since the so growth auto you there. cautious

Andrew Robinson

lower there, sort of fantastic outcomes in one has with a have XX-plus for to to that material kind we Yes. past. is upper I'm area. because in that And nature we're a of highlight trend. loss One specific us. I buckets they're something delivered an the talked expert the long-standing That's describe very about entity kind an area. the the effectively, going sort program of business trend. it that a years loss for commercial bucket single-digit auto. of owner And a I've X We business, in. mid- way seeing by And in would really are of of very of

area is of captives, there. captives, group The a good in our auto there's second deal our

great Pretty the the heavy loaded seeing the from very are technology group deal And a I is say loss important you captives Within industry risk heavy, pretty there, seeing imagine. intensive. management much the quickly. very perspective, captives, would by everything probably but They're are very, driven also really that what obviously, these possibly about we're is you Which can autos. principal know there a with much can severity.

frequency talking bad frequency down. I kind results, some the results, kind break I speaking, really see in our severity we mean, you You're XX%-ish of stuff. look going in time around joined at you're there's to our a exiting Generally our when of like way started our when trends. is that

down per claims open is a exposure frequency on basis about but cycle. XX% across Our life also on basis, an entire it's XX% the down

that's the in has act occurs can states to But perspective really like really that inflation. forward from and that it flipside, X the start with if too there's bend can bill of You'll a from kind think that is think I'm of that is a is Georgia comments XX%, tort looks think, I third we're is cautious solutions. going to not or that deal scenario XX%-ish minus. which Georgia then And out. week accordingly, see the saw again, that put severity some much, kind this we happen seeing to that the I couple industry of know a today it us supports brings without other that what our the to but seeing, makes reform of if my number the good hear change there lot it it described while change, What industry that. XX%, captured, curve thing XX% on that go loss trend cost go of that forward. to be where XX%, risk. the the much XX% for exposed, we've it of higher up see in it -- a the lot of business change think for XX%, a our we're scenario. it, our we unreasonable to bucket IBNR accident there bodily on perplexing reason a -- And And years, and in we're basically that of probably others. legislature about is a not why sort higher, what you'll be to trend, of -- why years cautious. a injury plus XX%, on just certainly don't not of or in be that's that is going XX% I I'm confidence Which is you some smaller portion rate small, again, should also Because could last couple got And that back the on I I the an what years earlier, it's and unreasonable comments the And

Rowland Mayor

new sort from That's versus of picks caution bit, little timeline what that on convertibles? your new topic, super growth on teams just curious the or book of be extra how goes it product? there And And for with was Is take layer the a your sort of Shifting is loss much of how you you comfortable helpful. pick I hires does to that loss a there? do expectation business? new then into

Andrew Robinson

question. Great Yes.

our For businesses, a we margin indicated. endeavor put above to nearly all of our

margin and come course that that across we into should into can yes, we put I corporate businesses, is newer the the back we margin greater. yes, call For single planning IBNR every so of yes, launch a we during business Mark what The when the year, year, and Also, risk hold that. answer the is in year further board.

Operator

Andrew next line our of Cowen. question the from comes Kligerman And from TD

Andrew Kligerman

of broad I excess growth Property, GL, liability know Nice well? was you within you've a the products. there mix interested, particularly seeing are saw of X excess growth, liability, areas Kind comp. some area, quarter. the interested workers' you that got in commercial of you're I I as growth in programs, auto, then where where a particularly programs? of And great and curious was growth kind seeing lot

Andrew Robinson

you moderate. more programs you will on leaning much there. was describing there the tell strategy up We're end of and it the but what do I this much it my year, before you, liability. thanks not that overall. yes, Thank Unsurprisingly, believe programs our before for question. been quarter, I'm try I follows full But in the on full was side, for going a Andrew, hopefully, lumpiness to some I've bump the on to it in be to for can answer. program source very What -- program

In the fact, quite contrary.

don't It's the liability, it injury we cat of you And which requires an on extra very, is our but just precaution. very like you is specific. level both an hand. Where areas aren't more it Most of liability property in and cautious finding find I cannabis think you're obviously, we're prem exposed, authority, of that coming from it instance have is that things and liability, are on probably is that program, programs the from elsewhere. growth where not because kind areas that's bodily but and even areas one mentioned that that coming think a I ops, mentioned. you're that's that there delegating you the on

very And I so, would here that overall. be Look, complementary we're We keep overall limits I our surprise our to shouldn't we very niches off, excess side, you that would first business. clear the on what I our that to our principally are doing short. we're say there just that only offer following finding you And a sort excess of need development as -- $X to company, -- is there and limits. that million

really we our one We're excess a a area, is auto. we no For E&S primary the write transactional excess. a on write that on VL stand-alone Where virtually writing exposure our we our umbrella side, all to but business, kinds write excess over write we same stand-alone stand-alone as written primary. of own excess. in opposed It's an

And where might liability, we get supplement comprehensive a we're pay might surprise limit low or about wouldn't it are exclusions. loss and this those bodily We -- our we pretty very E&S there. just is are in classes And excess much primary own loss loss we because making in inflation I'm the have regard, not certainly, fighting opposed short to basically not. as driving write refined the if also classes. view to leaning we there's and do of But the in going things, supporting a are, that we injury is assault covered in it are where a point inflation. on either to we where I supplementing very don't our very business, writing We example, out, battery, just level, and you so battery assault for that whether

social approaching the and writing so, I an we're the where approach in, both environment regards, inflation that what And kind the we're in excess liability. in think of really we've protects on we're leaning in we're how environment sort built of that in current many

Andrew Kligerman

I to which -- and of spectrum as on you were was a programs. And That around same up -- And in maybe if I in do similar think very think captives lines Where attached correctly, are very, $XXX,XXX helpful. broad I was written question again, the somewhere gross with you XX%. captives, regard you remember average? you're

Andrew Robinson

We because growth partner insurtech called And with just of believe that $XXX,XXX million basically about anywhere coming growth though, It's but automotive made that use. then to between XXXX. sector Bradenton captive out that the was I Understory depending something engine, then this we and will we it's during an and from $XXX And built -- it a captives we introduced mean astounding. we that paper. but it we we the that equally unbelievable. captive a point, the very partially, most have in results can't I and and of unique layer. in talked I had really I write been Correct. will whether exposure that it's ours business, on incredible $XXX,XXX of Helene, will our are of something and excess like the I actually the remember is property clarify on be you Weather innovative dealer in exposure got is the an technology all largely of have

reinsurance it those great support, And that's that our limits. has did kinds experience of property, And fact around the loss source Our hard the absolutely it's been put pretty a particularly been of we to extraordinary. have captive together vertical and really growth. we

Operator

from Truist from our Securities. of the next And Mark question line comes Hughes

Mark Hughes

know the year? this, you'll happen full I Mark, the have if from have but for to cash do operations don't you

Mark Haushill

Mark. $XXX at million, Right about

Mark Hughes

million? $XXX

Mark Haushill

Yes.

Operator

Alex next from question Scott And comes from Barclays. the our line of

Taylor Scott

get I that, didn't mean about Sorry Thank queue. to the back you. in

Operator

I'd And this for of like hand to the the further session to (Operator back program. remarks. Instructions) any today's Natalie Schoolcraft program Certainly. question-and-answer does conclude

Natalie Schoolcraft

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

Operator

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

You day. Good may disconnect. now

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