Kemper (KMPR) 30 Oct 242024 Q3 Earnings call transcript

Company Profile

Participants

Michael Marinaccio	executive
Joseph Lacher	executive
Bradley Camden	executive
Matthew Hunton	executive
Charles Peters	analyst
Andrew Kligerman	analyst
Jon Paul Newsome	analyst
Brian Meredith	analyst

Call transcript

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Operator

Good afternoon, ladies and gentlemen, and welcome to Kemper's Third Quarter 2024 Earnings Conference Call. My name is Ina, and I will be your coordinator today. [Operator Instructions] As a reminder, this conference call is being recorded for replay purposes. I would now like to introduce your host for today's conference call, Michael Marinaccio, Kemper's Vice President of Corporate Development and Investor Relations. Mr. Marinaccio, you may begin.

Michael Marinaccio

you. Thank and discussion everyone, quarter our to results. XXXX welcome afternoon, of Kemper's third Good hear Lacher, a third President by from Chief you'll of around Kemper's afternoon, This Joe our and President remarks Brad Officer; Matt Q&A President Kemper's a to Executive Financial context Vice Executive Auto. We'll Kemper's followed Camden, Executive opening Chief quarter Vice make results, and Kemper and session. Hunton, few Officer; and President provide

be Form the Kemper Kemper's of Chief closed, Chris SEC and call, Kemper's portion XX-Q P&C; Boschelli, Executive joined and and market interactive President will President of published our Officer. After by for Kemper's presenters we President Executive the earnings Life; Vice and Executive John During Claims supplement. earnings Officer Chief presentation and our Flint, our the our with Investment Sanders, Vice issued and financial the Vice filed President Duane release,

website, You can documents Investors in the find of these kemper.com. our section

may Our include, but the Private the Act condition. of statements XXXX. These contain operation provisions future meaning of its Securities not Litigation and discussion limited the and harbor safe forward-looking company's are to, of today results the Reform of within outlook financial statements

may condition materially Our results and actual future financial from statements. these differ

where may defined In to with also earnings measures and and includes on non-GAAP meaningful additional in quarter supplement, please information our we've discussion GAAP afternoon's are XX-K these to financial non-GAAP XXXX believe investors. refer financial For reconciled Form risks financial earnings impact that SEC release, accordance release. This statements, forward-looking we to third and earnings our our rules. all presentation required measures

over corresponding Investors to Joe. these our of of comparative kemper.com. period the will otherwise each find stated. I the unless references call website, turn section now will can in to All documents the be XXXX You

Joseph Lacher

Specialty by the ratio Michael. results. quarter and pleased and again generated quarter was strong led Auto report sequential joining Good underlying I'm financial of afternoon, thank PIF This delivered in to combined today. low you, we business, everyone, our which for XXs. us you that growth another Thank an

to observe increased market and shopping continue We hard behavior. both a consumer

growth we Given the continued this our foreseeable significant Auto for future. in backdrop, business anticipate profitable

Additionally, Life equity Overall, generated operating value growth return per in on we on strong a stable deliver return results. to underlying equity, business and share. our continued adjusted book

Now we XX.X%. let's at move higher significant $XX last jump some Encouragingly, delivered P&C in income, digits. year-over-year sequential underlying for quarter this PIF us year quarter's We million shopping of mid-single a an continued business. improvement XX%. Specialty to more to foundation behavior we into the healthy ROE expected in due grow level. of ROE Page shopping in This net on is resulted XX% than rate our PIF approximately growth great profitable growth. On Auto second X specifics generated our historical and of that an half a said seasonal a ratio and we of of the results. call, gives to behavior adjusted about combined and This modest saw this in a

PIF expect and and to continued to business later. The on distributable capital discuss fundamentals the in detail return Life products our this flows. growth and our more for stable, demand business produce remained Matt robust see of to segment persist. continue strong We will cash underlying

million coming is we million the plan $XXX liquidity to of our which to debt, due $XX next will February. Brad more fully on repurchase retire and quarter. in us Next, this shares this capital enabled have position later. Furthermore,

address to catastrophes. recent to take a moment like I'd Lastly,

P&C about did losses our our recovery catastrophe a $XX these Hurricane process. which to Relative business, million, in results, which approximately our is of affected were extend the This impact concern our of Helene. third through events First, preferred includes quarter on $XX not We down. events. these and wind within all the for financials. Total safety by million and resilience we those impact was hope particularly everyone's to have support for large the

I'll Additionally, Brad. about our call preliminary that, only estimates over the related to Hurricane turn Milton, event, quarter a to million. With $X fourth are

Bradley Camden

Thank our consolidated on with financials. Joe. Page begin I'll X you,

This profit. operating quarter, was return was a return adjusted or equity. we adjusted share. and or XX.X% These diluted million operating earnings and translate diluted $XXX Net generated per per income consolidated equity XX.X% solid a $XX.X million share, net $X.XX income on on $X.XX to

underwriting million, XX.X% Catastrophe Auto's and and sequentially. a underlying strong ratio segment year was results. significant were within was no reserve Specialty combined $X.X there by X.X% development. prior driven performance Our by grew Specialty PIF losses delivered this

Given quarters our as the Specialty with X ceiling. grow, we as expect ratio to remain below XX% last Auto you we strength margins. while PIF of will modest ratio maintaining combined to There will growth we shared but next the premium combined in provide some earned further and our about be quarter, P&C. the underwriting continued details the franchise, increases expect over X we solid Matt

Turning Page to X.

$X.X and are and Our insurance end holding liquidity companies revolver, company have investments. parent of capitalized was sources of of consisting lending company At intercompany liquidity. billion, approximately quarter, cash significant the and the well capacity

balance flexibility sheet maturity. have down of Previously, capital our $XXX our to return healthy paid liquidity and pay payments us allows XXXX delever least we our shareholder with Our million support we operating balance to subsidiaries. It interest provides shareholders. significant at also February to us and dividends, indicated our debt

to strengthen end intend retire maturity. 'XX strong our $XXX first by increased the at quarter full at lowering amount and now of by million the to performance, third further XX% quarter. given increase will XX.X% financial debt-to-capital from the end of However, flexibility balance of we've the sheet This the and our this ratio approximately our

the to Our position has liquidity shares. also us given ability and capital repurchase

million and million of have the During $XXX share in we approximately authorized remaining. million quarter. of fourth shares bought the We third repurchased $XX another quarter, back XX so we stock, repurchases of far common now

intrinsic its trading value, stock below is and opportunistically shares. continue back to we'll We buy believe our

was for investment alternative was to performance. investment yield pretax Moving were equivalent the quarter and driven new money our yields million, book higher income annualized Net investment by Page strong X. and results Net X.X%. $XXX income

negative last valuation experienced investment the results quarter. we alternative net outperformed. to million overall this quarter's In investment While portfolio, be general, per a within income around expect quarter our adjustment $XXX

to high-quality, billion Matt P&C We turn now and or investment to had Specialty well-diversified long-term execution. I'll $X maintain have call the portfolio to a over continue business. changes no philosophy our to discuss the

Matthew Hunton

good Brad, you, and Thank afternoon, everyone.

business. pleased ratios this continuing to Overall, our X Specialty Page long-term with outperform performance our P&C combined are quarter, expectations. with Turning financial we and to

underlying and XX.X% auto passenger an ratio commercial of business combined private produced Our produced auto XX.X%.

specialty conditions market marketplace. the hard see to continue We in

presents seen shopping premiums an as in to This activity to working on react in our the modest and profitably through abnormally large opportunity have a advantages way customers increase environmental system. increases their also the We auto competitive capitalize expand insurance our backdrop business.

business. are we both in methodical top expanding auto of of table. As yet X.X%, by approach respectively, X.X% overall rate new auto growth production growth we a for previously a traditional aggressive show have we quarter private an passenger resulting corner and Page X, right deploying appropriately to the Sequential PIF pre-pandemic discussed, more X.X%. and commercial increased In

phase, As geography. intentionally through growth by our rebalancing we our is work production textured

growth to and vary anticipate as both largest we the of regulatory marketplaces with see market in historical growth of Over ongoing California, time, term. see in market. the short more significant move dynamics will to levels. Given growing headroom. growth We the each and We Florida expect our back unique state, pacing patterns Texas

hold. to smaller continue Our XXXX, markets growth to next we in the our those our take of will the course quarters, expect growth over as higher few produce states accelerate levels and efforts over re-expansion meaningfully

commercial business businesses. delivered confident and solid our position trend We anticipate closing, to fully both the our of growth. are very commercial continue. In period auto Lastly, this of another personal we with

now the to to we market to Life cover turn efforts to sustainable next year. profitable carry and to expect comments. the hard growth. continued we conditions the call over Additionally, closing the into and look Joe business forward re-expansion well Consequently, I'll

Joseph Lacher

Thank you, Matt.

Turning on business X. to our Life Page

continued investment levels, quarter persistency distributable with in earlier, more sequential generate driving operating and The trends stable flows. returned and strong Mortality to normal capital to results. underlying continues business noted to improvement. on business and As the income net return remained generate Life line cash expectations the

highlights of and in stock on of long-term stable, and position February. We due $XXX growth. and debt to and positions are million fully retire In by P&C's on we strengthening well profitable PIF Specialty the ability of delivered sustainable like underlying to positioned Life repurchase the of the growth led our financial execution quarter our remain shopping laser-focused extremely Specialty performance. to us XX. our expectations of remained exceeded capitalize quarter. underwriting increased Page The results, the P&C's Once behavior. business closing, excellent I'd again, to continued $XX to the to our reiterate Turning enabled in consumer million for deliver capital due coming fundamentals liquidity

without them for team, This of we the thank unwavering quarter's and their efforts. With that, questions. and possible results operator, now wouldn't take continued excellence dedication have to I may been want our

Operator

Instructions] Peters comes Gregory line first of James. question [Operator from Raymond from the Your

Charles Peters

you X, to about growth. and making Joe Matt, So were I want on focus comments Slide and

market. So Joe, you is this said a hard

states growth near it conditions growth or Texas feels us and markets. I'm talking you you're of on can maybe the are you on of expect these in some the about because mean near or hard some in what You give Florida California, by market, like market us significant texture other hard by as the you be each give as not if texture maybe significant those mean Matt, wondering California, might term. what Texas, Florida, how in some term?

Joseph Lacher

and let start the Matt I, tag Sure. of the with to will nuances I'm as going dig Greg, expect, Matt overall maybe dynamics. or state team then you into a comment and individual X this.

not this rebalancing growth Page read market in as process of PIF as on can get. We're telling still the phase. X, totally quarter-on-quarter what you hard our I as call it far First, would that I -- the hard right is a the

faster Texas is of than the the this Florida and than are than both some seeing growing You're faster population. population here. and growing California California. faster

The other states not. behind. are They're

it XXXX, in early slide If remember the was last late probably XXXX. had you we back this time up,

states and seen but expansion seen Texas. states You than those would or growing have proportions, the would those Florida you faster even have other

think I you're going move see going So to forward. continue to that

row, growth them is, year-over-year. if you these where overall back the expect started that think year-over-year But them. X annualized a rates other number, are can multiply by we in more quarters fairly this you remember, not significant comment Second to X. that is states completely It's albeit move you when a quarter-on-quarter, of these aren't to not

move up into do we of we into in half first get the the season these the as to move year. So next expect, year, we buying as

the a have prior a higher market. rates a with these than other growth growth you We the would Greg, that's Florida It we the on overall that to, move Matt, expect base, basis, overall first states on up normalize of is see were I'll Texas. numbers so But an you in say, still that dig smaller of to just to can basis recognize into the nuances we annualized to of where the do of year. states an number. obviously, to have annualized basis they're to and the And and half let this would bigger. And a higher just they're I what quarter-over-quarter more hard the each math comment, Again, rate. sort the on necessarily doesn't pandemic expect reasonably tick

Matthew Hunton

Yes.

business is overall the as greatest supporting. And One Just market and pricing categorize pricing favorable two, impact a new competitive had to re-expanding really we where more and there. relative and Greg, that are market of That California to more Florida production, Texas where the the and early confidence; of returning to right, still dynamic Joe I California said, on Florida had what on we environment and where X bit states. relative three, was has different of significantly the the supply than to dimensions. absolutely hard said, as today little in Florida costs portfolio; you're remains dynamic part level our it in other Texas at less trending. looked to business a year the would based focused double-click has at opportunistically this a acquiring all that Texas. we normal greatest where

to in saw as and line see hold that so back you California, to as the re-expansion growth and efforts out to accelerate, of our smaller in such, Florida the prioritization And take levels focus more as is be. to came states point, And like would gate we historical there, return patterns. with Texas where the those we'll them out faster, Joe's

that helps by So provide bit hopefully, of a little context state.

of phases at Each right. dynamic has trending. absolutely own You're different state hard and its market are

Joseph Lacher

on from we've the increased underlying adding be consumers, of find by cost us up, It is which experienced to make, shopping supply market an more overall might of attractive a what ourselves a more in in churn an are The Greg, our couple in might reduction in comment, competitive behavior part other characterized be markets to generates competitive to which that rates advantages see usually time Matt at I'll model, move or it said. things. the Hard often regularly have capacity the in position be we among returns. and carriers over leave appropriate market. What more a to

supply, fewer So can there's there's -- in we fewer carriers policies. benefit a offering when there's reduction

strong. have there's just tended position to also We because competitive more when activity our is benefit shopping

faster. a So Florida little as Matt getting behind We're said, California -- ramped were we moving in Texas and up. are

little comes and a bit Texas up other comes states, speed even Texas some as to up speed juice saw as you California, there'll be mitigation this if So in to orange. we and Florida the still of would on -- expect,

Charles Peters

I my the retiring $XXX I'm That's that million to follow-up support you'd the growth. capital would that question good the would surprised detail. be, need figure debt. guess I you're of

us use your for part planning and walk that's assume of going mechanism of that? that walk the of the capital revolver act growth. retiring how, you're expectations debt. I for you're how by maybe could balancing through maybe way, the with you our the So to Or through sort out balanced out us of

Bradley Camden

this Greg, is Yes, Brad.

cash obviously fully debt Our that and intention to using is retire investments. holdco

million in can of roughly available. X, side, you upper see Slide left-hand $XXX at look cash you If the

is Additionally, we you want of of north are the a P&C the capitalized, which upper be perspective an at right-hand long-term you side, RBC the to well the insurance capitalization see entities, right look if perspective. which from from with XXX% where group RBC,

of articulating. and have that Joe capital we growth were for future that So plenty Matt

it's about above debt-to-cap $XX expensive as that only penalty binding and Additionally, and ratio we when scenario, you constraint, S&P, debt in about binding that's million XX%, our being $XXX We're so our us think leverage our of of Effectively, very are about retiring double constraint. capital million capital. with S&P a costing costly.

quarter. we about you Additionally, year, as money made think next this

year, We next make growth. and ongoing money expect strong and fund earnings expect a to year those also will

And ability so on think you've in far to grow optimistic the what profitably. future I from is team confident we're so our the heard very and

Operator

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

Andrew Kligerman

-- first, less remaining guess, I So than you a talked XX% of combined. moving at

also you've I talked of think XX% kind staying into away that XX%, moving and about recently, zone from XX%.

cats, curious, what's So had with I'm you underlying. XX.X% -- into How a just see of the fabulous kind that zone? out? of XX% you XX%, cadence do does XX.X% the playing moving the How quarter, that

Joseph Lacher

strong heard again, electric thank goal. were a Sure, ratio, we of sort not, That's where described XX% you to Andrew. again, to the stay at or We're for, run the place. upward fact, fence run grow XX% And modeling That's percent XX%. our better were well X people starts we ratio from grow share, at achieve some at the value belief the XX% the trying be an shareholder X% that that rate. people. below at trying of and reminding amount combined long-term or combined That or year, in saying a Grow if from a answer. What excess or to zap at choice share XX% that grow us in bound inside and earning we to the reduction in be a that. There's When tangible book now better faster still in is the penalty. it's you've a value in, benefiting had new inflation XX.X% base, faster creation. the of and business benefiting per new business the grow combined reduction better book roughly rate got X%, value would tangible is last would ratio, in a X a growth fair that of a right plus earnings it that's a

and a short-term some going business business to get you of boost If new you're there you is that time, premise with penalty writing new that. from stop start period the a for

that, you its change short-term a those. it of may XX you're business, the the to points works as It total start on combined going way through here. couple be It's from If in writing pain ratio. just a get new not points

X, range. the a that there So XXXX, there'll as But that next quarters, the a XX% hovering back what of back migration XX% on. normal on And normalized look happen of 'XX, 'XX, and I'd the business of more range, ongoing was we balance there inside did consistent be and migrate sort will gets go at into a little inside rate bouncing 'XX, find you depending company X what went the there over inflation to new to to slower 'XX, traditional encourage through of back we'll more and was bit what changes. ongoing between it, levels around and

Andrew Kligerman

then And maybe is as the your specialty, profitable were to saw that's you auto thing passenger. in consistently which you auto, underlying. me at that even And commercial and that, is helpful. interesting private about in very line X.X% sub-XX% That's X/X shifting growth through book a going pains to of the over been that's commercial

to pricing right one, mean, question is is, X.X% that you accelerate on it able area with [indiscernible] I at So PIF to that looking now? level sequential gas the your keep in And terms that for how growth, the do you being that? of how two, -- that, keep or the is in but nothing

Joseph Lacher

and Matt, go take Yes, us? you ahead why don't

Matthew Hunton

business underwrite target it so it PPA highly and a us. segment draft that -- model. forth. When very it's was a with private passenger-type the in if the We terms it's much about and we Yes. so The a auto business go-to-market commercial it customer think price business, strategy for is as our as specialized. of business unique It's

exposure is focused we're of business, dirt, So underwritten We stay portfolio liability of us priced transportation. priced. our sort underwritten appetite the in volatility heavy another getting and pricing to sand, away provider terms reduce like what business. Each the it is gravel, that would. one of stay across offerings We target in very away return. We're product from book a from every is. maybe that allows to individually And not target of and commercial a and

market terms competitive advantages in rate. that In growth, of believe a high enable we growth our do

where and we of on levels expect efforts line, in growth we seeing we're quarter-over-quarter of the we think we elevated versus somewhat that are optimistic market. and sort here that re-expansion our you're this As reemerging were on and take continued fully But out basis. differentiating a hold, capability have here we very

Joseph Lacher

Andrew, enough together. and one, this But point, telling range normal you with struggle not we PIF those get the they've annualize the pre-pandemic, again, there been you growth sizable fairly normal back, PPA growth. At it go combined maybe last and ratios. underlying you're growth go that Every through over see to and 'XX, very consistent but If fairly that draft they look I -- to going 'XX percentages we bloom great just a quarters, healthy attractive there losses large double-digit and and I'm handful X big comes, -- wonky the been rates. that of one reverts some as will said, back work it off is expansion, our distress get believe unit a have rest growth opportunity rose, and and we where Matt the to margins, with quarter might there's, of the off

Operator

Sandler. Newsome your from Piper from the next of Paul And line question comes

Jon Paul Newsome

in of things as little bit a improved directions different the earnings, potential thoughts a lot you of and other shift. Could well. items the for -- a updated debt trajectory talk off You've reducing got paying about the going Maybe income? your the flow with but cash for investment the on

give kind sort to thoughts what think could any there? happen you directionally of of Just us

Bradley Camden

I path the is the over this volatility expect we've quarters, or Paul, last investments. a don't the X from different alternative X some meaningfully what of Brad. historically had absent in

area to that's ways a bit take the for run on quarterly a of portfolio warranted, higher, continue XXX% case little maybe rate on the when think and at So base to look additional but a optimize in basis. risk XXX%, now. We'll the

Jon Paul Newsome

usual little press, a significant the Great. And of markets the for would sort also bit states maybe competitor? to the see the competitive that causing Has environment in it in big we the the but the particular. back a increased shifting main suspects Or become residual shopping, folks competition? shifting is

Matthew Hunton

Yes. This is Matt.

in meaningful as of sort there We the shift capacity taking price said, amount forward increases especially going of residual close to markets. haven't rates some terms price Those keeping that up. seen in tabs we as the and uninsured minimum of go with sort California are a there increases, hold, we're limits increases That are march on. elements will underinsured and of likely in commensurate

pattern an outcome, so that currently seeing arise. that we're but be And not potentially, could

Jon Paul Newsome

And would probably double to having not doesn't talk want have little this imagine. just an of the business just sorry. But check you've like I several It has you auto issues severity. seem there, just last been in quarters. mix, squeeze in much that The of quarter sort auto, had the make one, be commercial suffered to of commercial that one issue look in I others to sure.

Bradley Camden

Yes. is Brad. auto. pattern change No in Paul, a trend in significant from severity commercial this

We continue significant BI trend you'd if Happy like. to dive changes. to no but coverages, deeper, watch

Operator

comes Brian from Your the Meredith of from UBS. question next line

Brian Meredith

I fourth last growth the much. quarter? to slowing business slow you seem Joe, in probably year, about think Are for in on. It goes you. of doesn't the that just all it expecting quarter, slowed you talked second couple it A like less half the still

Joseph Lacher

statements, rates second through. Brian. in buying acknowledge couple the part answer recognize and a if lot we've going and that challenges. What We seen Yes. of capacity hard market. There's shopping have X, other the you half differently what quarter. -- are a that, A the year. pattern. And they've forecast. the go years, on historical to I'd of There's in revenue that buying your historically observation, is I pressure historical offsetting part. do forecast, be see one. take I and that patterns your this would top a got We -- pushed inflationary a typically generally own question broad saw belief line a and pressure doing those is than I'm might a We of we've It's behaving third X don't you let X, do we saw consumers. and you Customers market, our hate things, environmental don't in Great of or and moving behaved. answer a back quarterly not less XX really we that There's that's

avoid going answer I'm the into the what the to we think I on days. you going quarter, -- precise going next happen next So is to month mean giving to basically happen a the in obviously in what's we're XX

give We a a haven't of but that first has. in last you will change it that behavior be the the seen half confidence on every normally buying have the high historically of a material season I degree that. as we year XX robust the not is experiences bit to as that shopping What projection days, I'm going will XX-day in in you tell

The but more a what's the next be. couple what be points be the doesn't surprised what year next line. off we've be change trend it's robust. that expect thing of be to here months -- days confident thinking XX first And will they or the that there way very look if think is I of I'd seen, XX will will So and half the about I appropriate doing like.

Brian Meredith

very combined been then underlying the to at lower sense. ratios all is that contributing trends noted second same? And frequency favorable. my you companies the seeing question, Are Makes you're that several And seeing? have have that

Bradley Camden

on second we're very a little is you seeing Brian, to the year-over-year a it it's it this same. and year-over-year is But expect basis, come of bit. looks remain I Brad. quarter, and on up would troughed attractive, basis, What overall, probably a kind we that frequency, Yes, in the tell attractive.

Brian Meredith

can of we And the Any update I get an chance squeeze rollout kind the can on exchanges? one of Great. in? more

Joseph Lacher

And will continuing one. to business It's plumbing work very modest happy out. We're work. Yes, brief the there and in put to. amounts continuing of it to new a be

a was X. the X think to be at I it there, expect I'd calls They'll to modest mentioned, increase. volumes probably continue or least we As ago, modestly for in premium year

with pressure to to capital some it a in little book renewal exchange. You starts new start earnings that's on build that equity help business generating you retained penalty where that. need to let an season build in that puts to business there's up new earnings and bit so the there, up book the a And

little perspective. is and a product it prime business in. couple from is takes what Operationally, the while expect doing to added of it long So see. has horizon licensing states pump, we're a a which time seeing why moving a to We've The on it. we approval

basis. where have a direct generally So things were are moving some a overall this. that's of as we than think about And ratios we on maybe are initially writer a carrier projected talking reflection expected, when opportunities little slower we the of combined had I now right the and

the as talked moving to maybe bit a expected, you slower about time little first than it's it. So we

Operator

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

Andrew Kligerman

line? number, I like that showed X.X%, as net know auto, and you not in. had was looks rate you then I that's the with earned how earn I private I premium left rate. previously got ask quickly. in commercial wanted but in it about about passenger And PIF to talk a commercial doing auto know at in that well? back you at to Could much how a XX% year-over-year slide is rate

Joseph Lacher

Yes.

delay meaningful ball could that offset than what described that to range. But pressure combined business folks as limits, equivalent loss in up and future inflation earnings would rate an The the take wasn't the other a FYI rate. has will, had process in the be we inflation, we going in rate to up. a out we is pushed we the policies that quarter's that. were a a up roughly written, thought get change surge the approved, of because a California if much us and on minimum for in years recognition taking to still to behind, mechanically displaying so the a of would what combined when help stopped of ratio. taken you to catch we in the surge general to no was it incredibly We of you couple last antibiotics, very of overall works, general another. one move foreseeable would modest or there's advancing were When to was way comment, adjusting it a then responsibility file so and relevant sort over taken assumption us that they we put effective limits pull one you in reasonable earn it reasonable a then last of saw it FR our the with was then new rate That particular As was quarter. And aggregate it inflation the It people back and had were financial then that walk the getting chart, was limits if reduce mix, we expectation ratio it, chart. it chart, that it to roughly There's Andrew, had through into relevant have written there's in when has in. We California, meaningful you to temperature we that impact going X/X/XX. going normal for

believe a have reflects we loss which rate We increased that that, change that. comes content with the for

up the to as loss but we show It as So underlying match we've will exposure. priced exposure, larger it a filing. will through increased for rate rate believe it a come

overall just an to in it you. increased gave no loss loss the priced line have effect, with will bottom The result increased that's the disclosure bottom and limits change get but we goes has that, underneath we inflation, a but effectively effect. rate state same of not the the by inflation matched believe it line I same that So

Andrew Kligerman

And as that commercial to well? applies

Joseph Lacher

sometimes filings Commercial, We individual deal And largely with levels the rate to larger the ability There's some at there. on some similar. very same. yes, risk of it's adjust exposures.

more long-term growth become shareholder because You combined underlying our the that operate to particular attractive try of growth. ratio going them combined vehicle. We no can value forego see It's ratios long-term and range we'll to from long-term on short-term growth XX% to competitive. combined targets those not them for trade. There's have P&C optimize keep guidance perspectives, drive expectations margin. We'll give that Specialty they just and to a there's the XX%, long-term benefit for no similar in improvement to in similarly. expectations there's XX%, reason and very commercial you

Bradley Camden

for round a your the X as around to in year modeling, just the points. quarter Andrew, rates the you out to expectation fourth in courtesy is about X

Operator

I you. now Thank to time. Lacher hand remarks. closing Mr. for call any no back questions this will Joe There at further are the

Joseph Lacher

overwhelming majority time everybody operator, Thank talking to spend growth about pleased for it. the today. Very to thank and much joining the advantages appreciate franchise. of debt return the us call capital, or through in competitive either financial you, profitable organization, the that you We're overall down of back the feel on capitalize we of buying will let paying an again shares and strength

look you and time have your talking next forward for thanks So to Halloween. to a happy quarter. Everybody,

Operator

you. Thank And concludes participating. this you today's for Thank call.

disconnect. all may You

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