Earnings call transcript Q4 2022

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Operator

Good morning and welcome to the RLI Corp Fourth Quarter Earnings Teleconference. After management's prepared remarks, we'll be opening the conference up for question-and-answer session.

Before we get started, let me remind everyone that through the course of the teleconference, RLI management may make comments that reflect their intentions, beliefs and expectations for the future.

As always, these forward-looking statements are subject to certain factors and uncertainties which could cause actual results to differ materially. Please refer to the risk factors described in the company's various SEC filings, including in the Annual Report on Form 10-K as supplemented in Forms 10-Q, all of which should be reviewed carefully. a contains with third the filed Exchange Securities quarter has that Commission press company Form the X-K and results. The release announcing

after earnings or earnings earnings after after call unrealized operating losses of which net tax, financial the RLI earnings operating may the losses from measures to During tax on earnings operations RLI's and of management are non-GAAP of -- share or realized share per securities. operating and and results. from per gains operations, elimination gains refer equity and consist

and reporting not are of earnings are to investment. measures earnings due periods The company's X-K RLI's on and operating to may operating Maui earnings taxes be across these Form believes useful The Additionally, between release EPS definitions in earnings. website exclude and and www.rlicorp.com. a related net earnings. RLI's press management available of gauging companies' equity the contains and core other operating of reconciliation sales Form performance the Jim at X-K operating operating comparable that

to turn Chief now over Mr. RLI's Please conference the Treasurer, Investment Officer Aaron Diefenthaler. I'll and go-ahead.

Aaron Diefenthaler

Drew. Good close-out with Thanks fourth for morning, joining XXXX call. us quarter to earnings everyone. RLI's you, Thank

portfolio remarks, just the me for Operating quarter. Craig final Jen and some Craig, the will offer we'll Craig close Then kick reinsurance will with Jen Chief and Financial Todd, some questions. results Klobnak, President and our Officer; CEO; current commentary your will Participating are Kliethermes, Chief Officer. Bryant, with Todd things possibly on financial off thoughts. product get our take there. conditions, to market After prepared with

Todd?

Todd Bryant

Thanks, Aaron. everyone. Good morning,

underwriting increased XXth was and continued combined year contributing. ratio premiums per of quarter fourth quarter of marking and XX% a both posted earnings our ratio, and basis, topline quarter. for consecutive the a in an we of combined Yesterday On the experienced growth, posted underwriting we profitability. we written full-year XX% $X.XX share. Overall, With XX.X reported operating which up XX.X gross investments

the the higher, as the did quarter rates from income funds Maui nearly Investment Jim. and in of received at XX%. Reinvestment sale largely year XX% closed asset-base by our driven invested advanced moved

quarter. Operating for the negative cash-flow was

taxes the Maui we amount reduction gain to paid investing sale on are cash-flow included sale cash-flow, the from cash from third-quarter. of in as in Jim. is proceeds from the million $XXX operating This while as the reflected As the received a

from the in similar Jim's gain net Realized sale. and Apart a no nuance, and on equity result year Maui were This quarter earnings which to on on recorded basis. this on earnings. increased correspondingly adjustments decreased the very year-to-date quarter to impact of million in adjustment had realized our was $X of Operating both financials, Maui cash-flow last the losses pre-close

gain unrealized gains the change million closing $XX securities, For losses in the equity reflects year. quarter market and in as the a in rallied

prior As year-to-date earnings. comparative periods on equity calls, a you large the But prices results. mentioned can on quarterly movements impact on-net can between and see significant have in

at but about Craig our and to experienced as continue premium of three growth and most market the and favorable we talk business. minute, from a high-level, a Jim market more conditions will all areas in segments benefit

year-ago. perspective, XX.X XX.X quarter's to ratio income compared the underwriting combined an From was a

casualty $X very initial same which at which in million, our Ian named storm, Hurricane the third-quarter. by expectations At come net of million now increased the bottom occurred to estimate volume we Claim our ratio the severity property losses. is million in initial the and of has estimate. from in below of range $X losses. in loss $X In in we from reduced quarter, million losses weather-related late for incurred number Our a X.X the points, storm due higher time, $X storms. in

continue we product from million benefit perspective, million a Property favorable to lines. development. number of in of with posted From emergence favorable year's prior storms. reserves these a contributions posted emergence, reserve from favorable year's $XX in to reductions for $X loss Casualty prior largely

experienced loss one increases. addition, underlying losses loss and compared of casualty. we year's due -- both improvements mix lower last in X by the fired, for in declined business Year-to-date, aided the property's while commercial ratio ratios in and marine mix inland property overall year, rate to casualties current In both in shift points attritional underlying declined and point

are year, leverage net XX.X. results to a decreased our Moving ratio expense to continued points earned X.X of XX.X. premiums X.X last full-year points On quarterly expense our our improved on ratio declined expenses, to to as to reflective basis, Both compared expense base, grow.

at Total investments. the X.X% in XX.X% the it the improved during was for difficult performance year to minus and return Without for came year. a and markets. question, fourth-quarter Turning

higher as and equities investor, So long-term were accruing a yields, by to we bond stabilizing investment are income. encouraged which

bonds pivot from yields and incremental to and with with yet In associated net Jim riskier money Maui short-lived to portfolio new continue high-quality in to proceeds, exceed assets. X%. towards the cash-flow have short-term quarter, the we continue Apart a invest

million adjustment to on-net Moving earnings gains million. pre-close as were other for financials, contributing impact result was Maui had posting with in amount. previously. true-up quarter Jim Prime to earnings no for I realized million $X investments. the the The reduced quarter, by Maui This $X as the due mentioned We equal investee in and recorded $X of

As noted operating Maui have earnings release, press Jim earnings. from in the excluded from we

affect adjustment does either. not earnings As such, this those

investee earnings transaction largely On company down related the due basis, expenses significantly, Jim Maui a incurred by sale. year-to-date a are from

adjustments. customary exchange in capital received quarter. in other and in proceeds third to we reminder, Maui post-closing a shares As remain Final million working Jim the subject for our $XXX

first this of most We to during and modestly half process adjustment of that conclude the expect increase XXXX could amount.

This and realized took minority net year per book from nearly share a per the from amounts associated For of with sale special other benefited earnings returned finish of of very the investee taxes share portion dividend gain combination good $XXX solid sales a to in investment XX% results XXXX, underwriting of $X per investment. up dividends. year. XXXX, growth our $X.XX end and or All-in quarter Jim, at value all, of December. Maui sale from the related to reflect earnings, strong to with a million gains, which was share our inclusive The $XX.XX, shareholders

And with I'll over to Craig. that, turn the Craig? call

Craig Kliethermes

Well, Good thank morning, Todd. and you, Aaron everyone.

consecutive with the on As mentioned, basis. year underwriting for finished gross Todd both of our the double-digit profit a year we growth net underwriting results XXXX excellent momentum, and continued XXth quarter. marks and reporting

another of loss Now benefited from back-to-back the and and XX% year rate increases in casualty segments. across years growth in property of excess underlying of top-line trends of excess

to that report are returns result good very pleased shareholders. has This the to we to our

are been more few sheets where Our all provide competition. almost underwriters a to we but weakened hard the supportive portfolio, inflation discipline should firming. stronger have and able And our industry's and face reboot within stiff multifaceted the backbone underwriting balance products pockets to grow in reinsurance continued the still of market there be

environment we create opportunities disruption increases competitive that for and rationally, the profitable rate new should anticipate Assuming response growth.

the in and of We've already improvement conditions seen at XXXX. terms the end property market additional price and

carefully, attaching reinsurance our renewal, able the reinsurers Over we've favorable at equation to using and each been inform we high actuarial risk from reinsurance reward quality decade, to At earnings access team making. low protection brokers the prices. evaluate last decision

where always portfolio take profitability, we ceded margins expected net, return. specialty fair retained the underlying sheet, products diversified Given our of to optionality more balance have reinsurance the exceed conservative and

one-one. believe We of cost at increased reinsurance that beyond the property point

strong expected As the structured. a result, profitability soon. expect underlying we We about portfolio. believe, to are position accordingly disruption our adjusted too and new our on and remain co-participations we We that optimistic in reinsurance our capitalize a retention comfortable are with we of

to quarterly Monday and reinsurance morning. who provide made on will placements I detail will turn on it over the the Jen, results more

Jen Klobnak

Craig. you, Thank

Premium with segment our underwriting From Premium increases coverages. all by top all property portfolio and contributing. the bottom-line a XX% led increased for E&S book product including standpoint, major profit material sub-products by while the grew XX%, property rate for our in grew quarter. XX%

from It's given and increased history. are both division We reinsurance this accelerating increased by our conditions, further the costs. quarter throughout disorderly will XX% market notwithstanding that loss been rate has of more for for the reinsurance catastrophe detail year, provide worth towards that end hurricane E&S on gross profit continue natural my achieved supported in the and RLI's comments. XXXX. underwriting I'll believe trend property second-largest noting renewal net a our the our The

this Our the quarter change their to rate size quarter groups They premium growth and also with no for was their the strong growth activity little ratio. now and a X% Marine over-time is loss product right including that help exception. exhibited expense very to in experienced of bottom-line our a Marine consistent contributor quarter. XX%,

we providing to ratio the to due efforts. us product combined accounts. has is win premium very for underwriters XX Homeowners committed quarter. which response segments team grew XX% Hawaii The pleased our are of with Finally, new Overall, the our helped Hawaii local seven, by property

Turning to segment, on up and inflation public X% surety. premium cost which in construction commercial was premium between project and and the continues lift split contract from surety quarter, experience Surety infrastructure increased the Contract the a to was of projects. spending

account with in very We expanding experienced and also underwriting growth activity won existing produced Surety profit new both some new by little marketing relationships. quarter. active accounts through efforts. our Surety the Commercial an loss

evolving while our to results the the continue given opportunities, growth carefully financial of monitoring closely, We pursue principles environment. economic

market in renewal. the is some provided quarter-over-quarter on headwinds. pressure, quarter, X% from we premium with premium changes decrease exited rate public segment's warranties X% and reps affected The a unreasonable under and Liability The business Casualty exit in the comparison. Cyber The D&O and also grew accounts despite conditions and terms by our

and segment Excluding reduction, grown products would that the XX%. executive premium have casualty casting group, our

excess which year We Casualty XXXX $XX wrote we will XXXX. layers. Energy in be energy that area run-off the almost excess specifically liability is calendar throughout retrenching, business million are in of another in

and we market Our in the the market. lot stable competition quarter driven public are unit a Transportation Rate which X% autos, are increased in in XX% truck experiencing quarter, seeing although specialty business the commercial conditions. more by fourth of grew

as better to our umbrella to be for the altogether. XX%, market as partners to umbrella of our standalone personal up improve continues meet needs. customer their many have our or space and collaborate continue significantly with we disruptive, left The production competitors appetite was umbrella reduced Personal processes

X% with and liability the at by stable is When commercial outside quietly product casualty in the available were small premium for our also have markets. in a quarter. more services construction looking increases mention Rate City growing. I excess our to has bottom-line business New This opportunities group. and fairly D&S York grew been professional of group X% results, competitive environment

handling claim the business mid-sized basis meet for architect to from and our continues to underwriting have they we achieved covers of construction over-time, the The ranging small ratio. and customers. good an of supports quarter on X% developed industry expertise in a group and increased combined Premium needs This to admitted the very classes contractors.

Now depending at market increased your We expiring business. month. to of business. their I'll coverage with treaty talk on renewed renewed our purchased fourth our The estimated about coverage up rate I'll co-participations Casualty marginally retention in the the a flat XX% turn attention changed on increased We portfolio as change reinsurance our quarter. that the line in on this X/Xs about reinsurance of reinsurance balance X. property risk-adjusted to basis to January

I casualty revenue. the reinsurance catastrophe compared property market as describe wouldn't to the and orderly

a our in our last million. few rate to with dollar catastrophe an it $X increase, first renewed million impacted risk-adjusted XX% increase done with from an $XX the renewed million. has We estimated an per As retention and first we property XX% increase treaty retention treaty $XX of to over risk-adjusted rate dollar increase risk roughly loss years, to

reinsurance Coverage limits expiring our for to expiry, renewing limits similar match to our treaty coverage is adjusting from our and exposure. earthquakes including

CAT XXXX, means of We latter E&S tightening costs. almost terms pricing all reinsurance the we conditions, already have which we quickly. in of the can of advantage writing and the our conditions papers, been rates had increase increasing adjust business, and anticipating clinical terms very and and CAT risk Throughout benchmark on commission reducing half property

time, in was writing increased about for XX XXX%. catastrophe Since materially been that The have grown our our has we over catastrophe property We units. premium segment's XXXX. retention insurance last-time

premium Our consolidated sense. than equity made shareholders' doubled retention, over the XX%. We maintained has has more and our grown because economics

focus our model regard a primarily reinsurance were going-forward secure financially underwriting. in for have disciplined strategy reinsurance supporting correct and traditional from buying partner term business high on and Our

with additional and supplement reinsurers, replace to their become but support role. less will the the capital relevant We sources commoditize

our economics. assess to maintain a continue risk-reward to balance will We reinsurance the purchases in

on market the January business believe rate anticipate in Given cost increase X, at we further the our increases attractive. primary remains E&S and property

the over turn I Craig. call-back that, will to With

Craig Kliethermes

you, Jen. thank Well,

of We products our year by adapting specialized Each and of better the underwriting by profitable, most another subject results. we results. ultimately this the in opportunities control day, within. our transfer in-depth of to ways diversified the differentiating quarter is great risk to managers, we the are while customers. We risk be and seek needs A meeting and reoptimizing believe, determined we proof do our industry, those operate portfolio weighing and we constraints portfolio

to a on stability We focus serve consistency. customers' will needs continue with our and

that work invest new our will business opportunity that or are the and rehabilitate existing businesses to grow may from profitable, We and that key time-to-time in required. be provide exit products

and we to XX reflected have to delivered is environment adapt consecutive agile market be underwriting to profit in the ability of the shareholders. Our years

owners of delivering and of for effort outstanding stable in reinforced their X,XXX the show-up XXXX engine in outcomes care their associate forged with want with owners that period for are day, a our in for deep over shareholders. our on who of vested another time. taking associate customers appetite transfer service, success and the and our RLI's best and a relationships focused thank expertise, The I long specialized of founded customers tremendous interest to all long-term company for our and success knowledge risk every our the is

back it up turn open operator I'll for Now. to to the it questions.

Operator

question [Operator comes from Raymond Greg first James. today Our Instructions] Peters from

now is line Your open.

Greg Peters

things to you Well, everyone. discussion moved I'm Can back good Thanks Can on I give million. the how that retention. for reinsurance -- the comments. the renewal we on XX/XX/XXXX. but loss a the to morning, the have reported retention up believe, has for $XX go higher net have know and had changed, XXXX that higher basis would us CAT I for with you a affected sense? have The XXXX, retention?

Jen Klobnak

probably look a depending underlying for way, rough million loss tell is have a was this to $XX can estimate. of $XX treating, net Ian, but back on it I million I'll to you that's Jen treaties 'XX, we're additional by so which the

Craig Kliethermes

Greg, far are rate about thing a increase to thing mentioned, it, just we Jen risk to could I property results have to continuing from the as There's The dollars think it. think that other underwriting to as you there And a know, number put we the other note get. property we well really, from total those this more don't in treaty how and of that you as per that think will lot bucket some and gotten play. a play square segment. if range there but Because,

Greg Peters

you I view loss the your understand. just That makes prior commented sense. And Can we ratios. pivot about development. given accident year reserve development. on I know year

view where when the So about. we've of pick of think the I'm pick in of casualty et all your 'XX versus property some because -- What's a 'XX, just sort curious, counterintuitive, just reported specifically inflationary loss heard and the of you accident segment. sort What's cetera. about they pressures your were on numbers - in assumptions you loss

Todd Bryant

Greg. Todd, is This

to it actuarial want you inflation, there. out what That are mentioned read about I certainly we view. inflation call whether think really influences you social items the or

in you'll XXXX the think to see year. in going normally really I it you're and see it

loss trend I mentioned that think about we've to talked a Craig cost from standpoint.

uncertainty of it's factors, higher, or to are believe initial bit weigh in adequate do going they're I the a take to in, shorter talked as we in well all trends areas. influenced and that we've going over are short-term most a total -- So booking inflation, But typically the they're periods to they before periods our know going ratio. longer-term but actuaries, that really influence in trends, other that's

period. initial loss influence also potentially those we reporting and fix hold-on can expand how long It to

other So be on there. the segments, it those that influence all so casualty, our an view, whether factor has into things all

Greg Peters

as for I relates that your program think does guess place? question, the and it Or that of property -- reinsurance another changing does how this that and the have is a -- which last as -- the the last retentions my follow-up, 'XX my Thanks be -- your you well, -- of increased about of growing just does as it color. change Okay. property ROI question. That's strategy question renewed, my strategy sort what's to we has 'XX? would now it your business? matrix cat is, how Or sort reinforce in

Jen Klobnak

This Jen. our constantly Greg. that Thanks, say strategy evolving. would I is is Sure. catastrophe

space the and time over So this things you're all that various time, events segment are events business in happening well. whether no as or how that impact are costs that there are driving the approaching that range can and

latest revisiting some are this about. the revisited to talk we we market. reinsurance And Ian, as provided and change So throughout course, have chapter, of something in XXXX, anticipated

do. looking us to And also had so what at need that we

sure Throughout with rates anticipate the that that make honed to that the likely of we and makes year, the also is on exposure, drive that things XXXX, sharing our of co-insurers, factors trend properly we nature where that throughout the in covering to we outcome. that, on but and loss are terms deductibles, had conditions, been the sense, increasing We've watching all insurers depending continue.

premium, it coverage as of is well. it of part So is but part

So of all how comes together. that see to kind you have

in forward, XXXX. it's if our time, from to be really it's producers best the put That happens going active lot we've is emphasized gives similar evolve. boots extent well. market best during a what needed also and of helping We're some as we that to to us our sense insurers an input, the So That's on really to to our need very going going how what's be that and which continue in ground, before. the event and insurers to

we what have So looking we're exposure on to in grow the significantly intending not would to say books. optimize more I We're XXXX.

on buy in And we that the did so January additional Xst. reflected limit not fact reinsurance that's

time on within hopefully, to returns, point we continue have work have really at in that the capacity we'll attractive portfolio. this and So

Greg Peters

That's you. makes sense. Thank

Operator

Our from today next Compass from Casey question Point. Alexander comes

Your is line now open.

Casey Alexander

to for Good increased margins One with the retention, cat more thank is regarding rates, my your then taking earnings non-cat a some and of coverage opportunity that the market quarters? little If volatility at with property. of some stream morning, you period. down in follow-up June does some but questions potentially increased questions. is as it more have obviously two seems to of on more that the coming question, higher renewal and that taken of to the an impact Hi. we've think in cover in back the time? the heard June you've seasonal to that period additional increased point renewal might reinsurance that the reasonable add And in you capital I at quarters of provide retention reasonable, also tell a this

Craig Kliethermes

I is in to -- So, to be going to think mean, Casey, fully capable volatility. answer little jump certainly, this offset that would argue I I although be of But Craig. volatility. there's mean, more that's some that's to here, -- although I'm premium, more lot the question. I the going a is Jen there'll a going

So, lot pool. premium the more in a we're gaining

So seasonal more a lot ratio from you're But standpoint. volatility by create more raising from sure to will I'm a your that not retention. a standpoint, going certainly, be there

advantage market we little out opportunity. be were what it were are bit we be depth the there's To We absolutely, day, opportunity would we answer or a the our open to rates the as have. opportunity market Jen there's of realize says, of to to constraints we adapting certainly, re-enter above that the to there. believe plenty we question, If that capital the take changes to think second for strategy, and your going will the every -- come back fair,

what optimize to in in -- we a the and want that, to Jen to have to seen couple the We've of going have lot months options what don't want mentioned, we're their going I we mean, already So, write, write. regards of XXXX. portfolio as of we last by we're to way,

of reasonable mean, that. continue we at as the added price, last opportunity we point, see certainly it. to and would year a was we you take advantage capacity during acquire we recall, just that your continue If to saw the to expect opportunity. We capital to year, there I if see And

Aaron Diefenthaler

I'll just I add, Yes. if can.

portfolio. or a that is retain very volatility, we on other some we consistent we'll steps the our And about And portfolio think we side renew one good have reinsurance continue has behave in, on more bit product while The you the coverage. quarter diversed As that there a point products the through and produced diversity and have overall. year being, too, did of as our a Casualty well lot miss another. to little very a very of a basis, results evaluate

So us segment but results XX had an those of there for look on segments underwriting even provided our stepped the at years, growth basis the nice years, are you and underwriting in over that one other up have if years. those loss profit a a

bit know, So, point diverse is forwarded your I I plus a that really think for answer us, big to you and would to that little portfolio a question.

Casey Alexander

Right. Thank you.

Secondly, of your bonus increase then reflective before the rate? that taxes? Do dividend mean, much large out comment with should NII, more you I recurring investing sort and money we that out the that came a -- that of a paid from $XX from short-term may Jim. in proceeds Maui strip I of is number that some of how of you million was and NII that heard a have a fairly have come your

Aaron Diefenthaler

fortunately, short-term days, a Casey, -- were received of on about in from It those that $X income bonus probably return invested very after we it's million has one. And which were the on kind long investment I'll X/XX. the than us proceeds in cash higher did help of quarter. them these represents quickly in of short-term long Yes, period Hey a that time. over Aaron. rates they've been actually a it Yes. take period quarter

Casey Alexander

thank much. help. I you appreciate great, your very Okay,

Craig Kliethermes

Thanks.

Operator

KBW. comes Our from today question next from Shields Meyer

is Your line open. now

Meyer Shields

quick and One bigger-picture. question one morning. good maybe thanks, Great,

but loss didn't miss something there I the and quick about on phenomenal just in I you here else not side. going a or surety, miss which surety? adjusting Todd, is the if here, had ratio. Property talked underlying Casualty accident year Did On for picks

Todd Bryant

accident nothing year, being on in the the unique else the I four And a surety I that and it's much we're if larger on property casualty, things points. cautious have mentioned there specifically given book current because certainly bigger mean, I now. there. thing. weighs on, will going Nothing type think the just on you was it of economy Meyer. side been, of Certainly, because

Meyer Shields

Okay, of fair right enough. Jen's maybe base that Maui property? reinsurance. seemed when then, And exposure I'm And comments portion better thinking capital about that wondering, was sort overall to of you the you the the like about, that look-back excess I'm the about Jim in clarity proceeds? back it whether you now retained on from have Looking

Jen Klobnak

of Yes, say, I With portfolio, Jen would this the of our portfolio evaluate our portfolio as look adequacy. diverse given at is kind And sorry, with that we in years, in we the could again. growth we few near-term that the capital entire the what think our growth future. and you current last some happen really additional think the particular, support does over drives the about need capital, -- capital for

Todd Bryant

to Meyer, just to that help of we just gave some co-participations we flexibility that I'll mean, increasing the to do in want about too. Todd -- I retaining that us may gave and talked amount retentions capital options And that think what is you I and regards here us to do. the flexibility add. And

results. I totally of mercy abrupt the in think want appetite be the reinsurance to at market, we the change given didn't

actually gave that, it we flexibility. use us if know don't the but all I So,

So...

Meyer Shields

Thank Really you it. No, so appreciate much. that's perfect.

Operator

from RBC Markets. comes Capital Dwelle from next Mark question Our

line is Your open.

Mark Dwelle

reinsurance rate Yes. and morning. When continuing correctly on business, rate Good property you your you think to the on along guess sort customers amount theme, to I renewal of as the increase XX% increase pass cat-exposed on match about increase business, that to trying prognosticated. XX% what customers to in would need a does take your order mean, or I paid? that you've XX% to that

Jen Klobnak

this say is customers. take built moment throughout our I'd anticipating increase already And to about Jen. to like in rate some this cost. a I so Well, would talk XXXX, we've

XX days we help look call process, our renewal can we their insurers as to that manage at days XX it so out, So our business. we

increased got they've lot of So a already. costs

that one employee kinds actions. increased they try were their component costs some of transportation business their taking save ability of to cases, up gaps all costs, help we not increased too They've manage to in by And costs, in got going have, are drastic business. of

change I would quickly acted attempted cost. in in coverage more as reinsurance the say, well contrast, In as their market little on change both a

to is difficult turn it it's to something and in be nor you dime market. pass on want you're when along, very a primary so, And consistent that really do trying to the

to the business, but So, are of sense. for we push this I particularly underwriting renewal what each make we'll continue individually mean, state in on Florida, example.

understand So business and as exposure to gone has that the that changed looking costs in that the what details the have year. the dynamics comes of in, our area all at and we're from location up. various prior And yes,

But we're that it continue manage we insurers some going to insured. be over to time costs increase so to to try our extent. will yes, can So

And the And The danger decreases. the less once industry insurance to the a buy will doing shame of that, this actually coverage never abrupt to change that's attempt because opportunity then back. marketplace for or come limit. that decreases, because that's is people start going they less

little So, provide a are in partnership brokers we're bit with terms to and less little that our gracefully able our accepting commission, more to a change coverage who in insurers.

Mark Dwelle

we're our a after think we pricing just is still did pricing the still also of that is. going be to our in but to hit that our to is pass not pricing get priced was want to believe benchmark pricing to doesn't addition, benchmark more return. mean our excess mean, It above we comfortable we people reinsurance what costs, benchmark just I and some targeted additional believe I add, going rate but current we try business of along, this what market in updating we Mark, for Well,

out more I lot of a mean So, the go market,

Mark Dwelle

changing mean, going you increase, helpful. of Are behavior retentions that's doing from limit whatever mean XXXX? rate their comment, than was be smaller to seeing are a any basically you customers that you -- I amount actually XX% did in what and over actual know I was, Or And considerably seeing in Okay. be perspective, would I are that anticipate fact, raising mean, of be I -- getting might Jen's but growth lowering the yet? such that your would we evidence premium sort that next you something strategy that. question my that's

Jen Klobnak

Yes, Mark.

Florida, make banks to that have in this exposure. creep We are the that, to their they that fire exposure, environment. are is But witnessing sure work to or seeing that not particularly for for starting coverage insurers all their with passes into that wind muster. buying full-limit their something but providers we're where mortgage And

Mark Dwelle

definitely consistent you made Was were this with week. insurance one some of I'm comments Craig, That's adding, earlier sorry? something the that brokers there

Craig Kliethermes

Obviously, percentage certainly on a increasing are basis. deductibles

So, the market, are deductibles across increasing I management the just pretty us. much not mean

Mark Dwelle

And you were many been upcoming what really Okay. for quantify that. then of to had had how outlook in Thanks that the you rate something pulling run that run business. for liability Is that of from back all you of rate comments just some annual terms the year? mentioned the dollars of be cyber the can premium in would

Jen Klobnak

in business that last quarter actually -- during Sure, Mark. year. the We fourth the exited

runoff, of large no year the facility. was cyber Yes, account just for completed problem. which this So, we've

Mark Dwelle

changing feel answer because at the know but the Jim other already to if that are But, now. you're that going gears had he's you'll there? then lap, investee even in you and an year I'm what seeking Craig investment to it a going you're falls prime or proceeds the to And mistake. evaluating ask I though look confused. almost opportunities? your been what Maui that's still I've I on do anything that the asking is, Or with with I My over I for ask equity is side. not content it, really just opportunity guess something business obliged considering

Craig Kliethermes

I'll say look certainly some day, looking maybe always But I will join mean, Every and Aaron in. for for opportunities. opportunities. we we're

advantage find we take that. a for So an good investment if in of we would that, opportunity

Todd Bryant

hard, guess, die I'll only around Jim add, in Mark, Maui old questions those habits proceeds. I asking

terms as I'll around a the very but account a things way look unique lot. assets Company. the them the a little or to the situation situation do every general we Then Maui a closer lot us, was for home are mentioned, We to definitely. space, our going day, call of look space to tend Craig back more investing we in mid-'XXs And our of Jim all in

Mark Dwelle

you. questions. That's my thank Okay, all

Operator

Our Matt from next from comes Carletti JMP. question

line now is open. Your

Matt Carletti

obviously, in question Hey, you? Can but, are just reinsurance thanks. of question, maybe advance morning. you're the a help on up Good the lot I more the Apologies XX%, how the dollar the you is you layers. treaties. rates went change did side? property kind with expensive XX% - retaining But help know us for how us another spend thanks, most of across two can And

sort order gross we like what dollar or magnitude as might dollars, about retention, there? change spend of the So, think of you net kind if can,

Jen Klobnak

This for our see. Jen. depend, -- would is is change on Let's say ultimately I rate it of XXXX. what course, will our

there continue is some we're to change anticipating rate expect extent. increases given cost, But -- obviously. will material a some additional So, not we the see to

a lower, be or So, to point retention, two of it's but significant. be going not that's might

Matt Carletti

this great, of to Craig, weekend. cheese helpful. best your Okay, And luck very

Craig Kliethermes

help Will can you. thank we get. take all Well,

have cheese, all gone You the that's help Will take the now. get. right can we

Operator

There closing this the Kliethermes back further I no time, remarks. conference some over turn so Mr. questions for are to Craig would at

Craig Kliethermes

us. We're to just you think to up Thank good get all just Sure. a quarter. we to next keep going back you. to quarter, was what year. work. you going for we Thank on joining We're it you Talk Again, do. good

Operator

access to so have if This nice participating, you a and need of X to all parties dialing may ID Thank (XXX) call, for an you All by replay to XXXXXX. now this with wish gentlemen, for day. and do the may concludes disconnect. conference our XXX-XXXX Ladies you today. wish for

RLI (RLI) 26 Jan 232022 Q4 Earnings call transcript