TRV - Earnings call transcript Q4 2020 | The Travelers Companies, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and thank you for holding. Welcome to the Fourth Quarter Results Teleconference for Travelers. [Operator Instructions] As a reminder, this conference is being recorded on January 21, 2021. At this time, I would now like to turn the conference over to Ms. Abbe Goldstein, Senior Vice President of Investor Relations. Ms. begin. may you Goldstein,

Abbe Goldstein

morning. much. fourth and released quarter supplement earlier release, so discussion our to of financial this presentation webcast our XXXX and Good you welcome morning Travelers press Thank results. We

at All of these the can be section. travelers.com our found Investors under on materials website

of they Frey, results environment. & Klein Toczydlowski then Speaking Insurance; financial of be Dan business Tom Chairman prepared Specialty the and to three Michael market discuss will our take Kunkel They and current and Schnitzer, our They will and Personal segment the Bond the Insurance; Business of Insurance. questions. and today CEO; of Alan CFO; Presidents, remarks will we webcast go refer will presentation as through Greg

to your to over included would Before presentation. explanatory the note the Alan, attention the the I draw end of at webcast call like to I turn

I section call like financial the We questions, release, our to in press earnings may other Schnitzer. and included we forward-looking in Our results are forward-looking the mention and factors filed involves obligation risks to any now, financial a of available to our the to undertake variety recent forward-looking and presentation would responses Alan company over to of on and our today performance. that Reconciliations our recent SEC. is not guarantee are with update due includes cautions from press our materials the statements in These in investors most those any some in do statement differ website. a materially XX-Q implied or statements future And and release under supplements Investors turn statements. forward-looking uncertainties The not may statements. factors. remarks earnings forward-looking described or Also, in measures. non-GAAP XX-K expressed Actual

Alan Schnitzer

Abbe. Good and everyone today. you, us for morning, thanks joining Thank

political transfer results affairs. most of Yesterday, that of events, full comment we fourth peaceful address one a and the the American see patriotic democratically to administration next. but one to year I succeed. next elected Before the not a witnessed our say this to quick administration statement, a power want quarter from on current we It’s

We significant ones a which of imperilling distressed and livelihoods society, of of security neighbors, and sense a safety the challenges pandemic have to a loved deeply threatening and well-being. lives health collective economy our undermines the and overcome, and millions, our divided

fourth on report to pleased to strong yesterday challenges. addressing taking of marks of year a aisle billion and hope to meaningfully up year finish the political to on beginning approach a from that, sides Let’s the And quarter. $X.XX our of these of the am prior with leaders results. constructive equity each I very core will share turn with diluted both return $X.X quarter I the or XX.X%, core per income

also year cost are of report margin return of full substantial our equity. core pleased and We of on equity core XX.X%, risk-free to rate income the generating $X.X billion, of a

low strong income X.X that premium to underlying resulting from interest earned net our improved of pandemic, of our record expertise was record of the in balancing workforce, is hard testament to strength and talented to level catastrophe Our very face rates ability principal these time. of results committed our an replicate the higher advantages risk quarter returns ratio the to $X.X a events specifically, in the high to franchise. and of billion underlying driver for and the a competitive value excellent to combined number income, PCS XX.X%. points More historic our The underwriting and an achieve core and deliver industry-leading reward over of of an record

year, ratio for pay demonstrating all off. recorded that productivity a the pleased strategic full in to sub-XX% our in once We quarter segments. We’re results expense three investments continue with underwriting consolidated and again and improving the efficiency the

Turning this the quality of pandemic-related $XXX in investment portfolio the year. impacts investment non-fixed earlier our million income from generating after-tax continued net well, performed income quarter, high recover portfolio to to investments, as the

balance together which Our per X% book of enabled us returning after results the value with quarter. in sheet million operating our to adjusted resumed the of $XXX $X.X shareholders, strong to during by share grow billion capital excess fourth year share repurchases, including we

strategies notwithstanding segments. to line. Turning renewal rate written and the the economy, continued grew retention across we quarter in successfully top change our on continued in challenges the to Net in generate premiums X%, by the broadly production, in to execute book strong strong growth by three driven marketplace all

any homeowners. as underneath headwinds the renewal in achieved the excellent. in a by customers, for up Insurance the net refund year remained difficult to billion, step in continue X.X%, to premium Personal driven of strong. full X.X premiums and of our to the in written written and retention written record and homeowners while last $XX was both auto end, strong the Adjusting in X%, premiums numbers renewal Slide X% business we a agency were key In a attention to industry-leading renewal XX% Insurance, business business, production context return context. this net top-line to Taking year’s before this is pricing our belief contributed new Business XX.X%, results And a change a direct written on that for this some put by renewal record that XX domestic the retention achieve change & prior Segmentation over and that facing to time agency is result a strategy let pricing webcast To in In we up strong delivering over auto the and by offered the change, Bond growth point premiums equity economic environment. the net Fourth we execution of to the expect management back ago, over our me change impacting grow quality time. sequentially, identified the of about to context headline premium while in increased production retention broader years a record increased to rate strong. up into Insurance, laid profitable strategy was industry. Specialty remained your year’s year to end, favorable previously change our have Personal our liability and industry, Given presentation requires middle-market the points driven rate forces commitment of I’ve by core environment net be agency Insurance strong year. a business. business shared out compared a premium X% premiums time. record the of almost quarter few

haven’t the of slide, the GDP you We a the Since rate and As decade. while over both underwriting of period can focus expense to by also relentless or rate margin. and XXXX improved over stable know organically has successful optimizing the points other operating compared X.X% two ratio grown efficiency, about come have economic compound see in despite under-pricing decade. growth well. on and outpacing we segments, our same that on substantially profile. XXXX, grown geographies customer our run the years risk ongoing same another accomplished Over that from strategy. The we written changing that was In our we words, productivity the the growth execution period through challenging premiums from net and that the producers the environment, and rate, we’ve products, earlier and prior in annual maintaining product by a underlying year

double-digit is leading all the see you contributed our the can also cash equity that creating time. in growth Those higher meaningfully to income, of industry operations assets. of slide, over on on and results significantly ultimate from result and return objective invested value underlying underwriting As higher shareholder have flow

increase the objectives. successful in and return and a and performance short, XX% core over year historically rates activity years meaningful the weather impacts low social period. is on of equity the averaged strategy inflation, years this three in recent last and In after and each result is achievement of global the significant cat and of Our that has sound non-cat that over And our increased of XX% our strategic the pandemic. interest bearing

and team, on innovation opportunities very our economy of capitalize thanks the continues here, Looking capabilities record track forward to strong to to execution, positioned the well as feel from our ahead we our and our recover strategy, beyond. and

thank the those volunteer acknowledge all effort and remarkable From side proud loved regulators and and to their feat. for Before future. to vaccines over of care our want to Dan, have I couldn’t of of the taking and safety acknowledge of responsibilities effort to am be our manufacturing COVID to my turn the taking the to past and and those scientists human children, The Dan. for time. line creating I wavered that, thank to or own for of of the for those And hope vaccines in people to to pleased XX,XXX in efforts concerns coming of I from team. extraordinary ones participate their care Notwithstanding tireless whom I privilege mission for rolling the I year with purpose off record more it’s who a they to in serve colleagues, the involved inspires will many want sheer and of this also morning, year. call who this ingenuity trials, the been the with value. over never optimism listening call the the inspire behind developing turn their this shareholder educating over are

Dan Frey

and was Core XX.X%. of XX.X%, million up both Alan. measures you, income was in quarter underwriting $X.XXX underlying fourth up year $XXX strong from result ROE quarter the was for the core from billion, results. very in prior Improvement the Thank

to last million pre-tax in losses from year’s Aggregate quarter. we pre-tax Treaty underlying exhausted Cat whereas Our Recall included fourth a fourth Cat of the Treaty, million quarter. benefit in recoveries $XX year’s under last results $XX XXXX, $XXX fourth include third the losses the cat that compared of million cat quarter in losses quarter cat

fourth in So no under quarter. there year’s the were treaty recoveries this

earlier million our more which quarter. from PYD of combined cats the favorable pre-tax. prior PYD points which This current quarter, that in include favorable of improved for about estimates The the X.X year quarter’s the development in $XXX will year. ratio details results shortly, loss was underlying by events provide I for cat and XX.X% $XX million occurred the excludes in net of impacts

nearly exceeded underwriting million by higher higher Our trend earned pricing and of that increased and levels prior benefit personal the pre-tax quarter, underlying year favorability loss earned driven over the in margins, cost reflecting experience. by auto premium gain loss of of XX% $XXX continued

the Bond were losses underlying those & lower modest $XX about evenly related to directly Insurance split losses Business of than Specialty levels quarter, between totaled offsetting pre-tax, More million For COVID-XX, and a Insurance. consolidated auto ratio net impact points, combined the Business about The the claims in Personal of Insurance. a environment both Personal in COVID X.X Insurance mostly Insurance. and amounted to of on benefit

approach losses We continue of the take given estimating this ongoing a to the COVID-related in environment. uncertainty in cautious impact net

case has booked throughout As losses the year, the through in of the have been remains year end, we direct majority IBNR. that COVID

impact and policyholders, XX.X% fourth brings the costs The full quarter benefited COVID net expense underlying benefits, consolidated full the a ratio about of year including year XX.X%. to at combined Looking expense of point. refunds our premium impact to the by ratio of ratio

soft fuel exposures a throughout the While our on our the despite from premium resulted the investments to refunds earned and in premiums to the again we ratio the ongoing we efficiency issued auto our insured pressure productivity once expense focus economy year on customers. personal make continued the downward and success, to impact continued of on sub-XX% necessary

income million, be the comfortable returns investment of ratio in higher strong X% expense around and of assets invested the as prior income year net After-tax offset by to from consolidated continue by in expected portfolio fixed decline quarter with income were improved partially $XXX to the the a level We fixed XX%. yields.

average we to million environment. portfolio rate of per more earnings interest invested will yield short-term income that will of offset quarter that a including benefit average the by be be NII, expect fixed higher $XXX securities, lower Looking and on $XXX as between after-tax XXXX, project than the lower assets in levels million the forward from we

reserves, personal book. experience Business net segments XXXX Personal In reserve increase an totaled accident and Insurance, And to years from Specialty, very net $XX reserves year runoff development workers’ million $XXX net than expected the by XXXX expected to PYD quarter. our loss was net was all Turning in surety from to In related detail line favorable in of years provide workers’ in million and development accident is favorable run-off coverages commercial occurred the resulted will better liability noted prior, of $XX by favorable partially PYD & our of better million business prior earlier loss by pre-tax $XXX primarily than PYD in filed on in in the earnings in of and comp, Schedule very the automobile the in Insurance, of renewals. more P Treaty year in three our offset old we the our second fourth driven the Bond loss book. primarily lines favorable million Page the the property to commercial Cat in presentation which of XX With combined and analysis quarter, commentary our line. comp, strengthening X relating years with throughout January lines, the have about some trends old was provides much in favorability information driven book.

to in of cat and line coverage the the multiple cat expiring from continues losses Cat Corporate and terms with XOL both for longstanding on single treaty aggregation events. Treaty provide renewed Our events

Regarding we catastrophe the renewed treaty for XOL purchased for we property first aggregate underlying XXXX. treaty have the again XXXX,

towards in accounted retention a of $XXX impact $XXX losses, our While property of per we ratio. for wildfires XXXX, billion, which Both the the assumptions a losses than XXXX the Incorporating earthquake from combined with have had point. a per XXXX, we and deductible aggregate again experience our prior from PCS-designated aggregate Treaty coverage largely are renewal million book. million past $XXX and increased million PCS-designated in XXXX’s In for part anticipate to years. of years’ of more cost we our $X. aggregate incurred XXXX assumptions growth more, once and anticipated the $X.XX $XXX Hurricane event. treaty qualifying half And our treaty years, we million on of those weather at for America above event. $X to or events recent will had includes The provides year events impacts cat ratio billion. million the of And treaty the on underlying impact be in roughly continue minimal expect North only $X occurrence million about reflecting $X $X.X us also total combined the of cap. each retention address million, events for full consistent per capped are of non-cat two the

strong. billion capital for with better capital And our or $X.X Turning target ratios cash were the quarter management, liquidity of operating to approximately flows levels. than billion. at quarter we were very the of again All ended holding company $X.X

and fourth investment end. billion And Interest as net accordingly, which of yields was share $XXX $X.X from as $X.X slowed million. operating first investment cash lower and ago. from For a modestly exceeded Adjusted X% subrogation of and $X volume XXXX to $XX.XX year, to per gains the benefit end, overall for PG&E and related the year gains XXXX year billion of continued premium increased increases after-tax $XXX share, in full excludes ever shareholders flow unrealized credit time us claim the grow XX to the of the decreased at repurchases recoveries wildfires losses important our California our payouts comprising reflected COVID-related shareholders as returned levels our to million increase due unrealized capital September during our throughout to room continue of flow quarter, quarter. and portfolio. business, book activity and make our other court tightened investments spreads and return give investment billion dividends $XXX the this excess capital cash value We settlement flexibility after-tax shutdowns. from to at in of year to Higher million a year the

to share billion $X.X of repurchases. capital For the year, returned through and dividends shareholders we

financial note, a let webcast turn to me attention XX Slide on of the your modeling Finally, presentation.

our entered thought we would prior to of As cat it decades. XXXX, highlight helpful the losses we be again the over seasonality

it are have the seven As given I pleased the our the largest quarter Business years. And been average. now, quarter we call shown other second will XX cat losses on regularly the And over results, circumstances. full quarter. has the been past as to noticeably with wrap Greg a our quarter for the quarter quarter data, very and second in in and much second especially as Cat twice about of been quarter any the has challenging Insurance. largest of discussion To up, year in turn the cat

Greg Toczydlowski

Thanks, Dan.

For the year underlying prior Higher net fourth million quarter, XX% losses, favorable increase segment fourth of and net quarter development, over reserve of all year-over-year lower income underwriting Business of well Insurance produced contributed the increase. XXXX. income, $XXX as income cat an to as favorable the investment almost

a a than favorable the due with also with points elevated trend more quarter prior comparison improvement of improved underlying year quarter. of a from earned which to and XXXX, again losses this a quarters. prior XX.X%, X.X impact loss ratio and little are to exceeded the pleased is We half. the a point was quarter combined for from that benefited There We point of half of by of re-estimation an the which due to fourth the pricing

exposures as light impacts prior the of mostly limits. top premiums insured and including as terms with and remain only slightly the business. than quarter of macroeconomic lower our management active attachment as in lower to and deductibles, lower as were of exposures levels insured our year activity levels Turning reflect conditions high new of offsetting economic with structures, from well points The the ongoing challenges, business. deal resilience Net lower and lower line, well retentions rate modestly strong we of the pleased written

retention fourth the quarter production, almost to high rate of points of renewal last change a achieved we record XX%. Turning while year, at from X remained domestic up X.X%,

year higher and change renewal rate the with quarter. prior the was corresponding marks quarter This than consecutive quarter eighth

our broadly achieve rate year. lines higher quarter increases as rate the higher prior across book as other levels compensation We continue were meaningfully to than workers’ compared in the all during to

that’s minute great once and in numbers mentioned our headline excellent. segmentation the terms retention and the on contribution management that granular apparent is not execution active the Also, deliberate in to beneath other Importantly, deal about terms, an was conditions from basis. one we continue rate a thing The headline I structure and feel numbers margins account-by-account the and again ago. of class-by-class to

to The are We the most broadly doing cycle. Property notably, business. National rate tend book, in this across beyond but terms the tighter our persist

$XXX the million business was quarter. from prior New million down year $XX of

levels economic the of distressed a and of is lower in conditions, the given Given market. market higher activity proportion hardening the there business

Our production our to reflects business. new like important particularly approach that circumstances these. selection business during disciplined Risk is

of rate and As renewal for one from recent more Retention in year. XXXX from Select, increased was fourth quarter the certain of execution third point than to this individual quarter businesses, a as more X.X%, the the result X of pursue returns improved up segments points deliberate down of of change in we the periods, from business. XX% than

mentioned I aggregate above, the we’re with underneath As result. the execution pleased segmented

quarter quarter retention rate a down to well of in increased us rate year. and almost business, we not change commitment for long-term of which development X.X our position while the slowed on in from fourth doing the invest ease was have up product Importantly, In Renewal from remained this business. of third point X.X%, and points renewal this to change XX%. profitable middle-market, XXXX at growth

from more given pandemic. than quarter a we XX% results economic especially this accounts XX execution, of terrific last to point To challenges the rate quarter, unusual the about positive on than our of the year. and sum achieved increase up, related some fourth we our feel of Additionally, more

partners, the strategically underwriting customers of underwriters, investing and the of redesigned the strategic now insights the future. work solutions to states capabilities performing submissions distribution expectations. experience use product and consistently quoting submissions completely us Examples more easy available platform digital include, our improve released is application. of this XX profitability for our for for our platforms and from capabilities rollout and various digitizing segmentation for which the new continue We enhancing of partners routing efficiencies. our investments distribution Business new MyTravelers of lastly, continue small developing experience. the for and book, These Zensurance those agent intake BOP product efficient creating is to and Advancement year allow in customer our the industry-leading transaction alternative for while the experiences X.X, commercial of And Simply our their initiatives automated with which our technology seamless include receipt This includes fast offerings enhancing improves our our partners the space. advance industry-leading and and which self-service a in

acknowledge will their for the delivered as as customers. Tom. for these well that like and partnership confident Concluding, like investments of long-term our us benefit With We’re we employees, growth. with advantages agents together meaningful would turn to our virtual I ever competitive that, brokers strategic our profitable call solutions the thank as to position combined I for and seamlessly over

Tom Kunkel

underlying by nearly Thanks, coverages, double-digit of the strong the for despite X.X impact to was prior flat the losses strong development million, growth the underlying Bond business year combined returns higher ratio Segment prior headwinds a of the reserve economic net Specialty combined primarily Greg. conditions. quarter, the COVID-XX year points in level loss was of $XXX as COVID-XX. liability of attributable an XX%, with estimates the higher were offset than driven related management and of quarter benefit prior ratio, and which higher year at favorable volumes quarter while & ongoing income by higher still delivered

economic the As we pandemic. in of the the bit loss little XX% Nonetheless, improve combined from severe write quarters We will in susceptible financial half of that elevated again, the during to roughly experienced that crisis, levels second XXXX the due products the we we’re in the strong underlying of achieving, rate are expect downturn. ratio and in with levels in discussed last quarter, segment to that we XXXX. the recent impacts times a this

renewal nearly quarter, premiums business impact reflecting Surety In written demand. management economic improved production in the continued on liability management production pursue premium elevated near our quality in Turning rate XX% of grew business, light to the flat results our bond remained strategy the in outstanding with that continued of increased loss an of activity, liability strong driven pricing we’re XX% high record while and pleased demonstrate project high rate a change highs. top while domestic in COVID-XX historical successful retention portfolio. procurement public line, change, of despite XX.X%, related our by to record renewal to retention net These maintaining levels our execution

We will continue Consistent to thoughtful increased underwriting down. our pursue last rate are increases activity business where this warranted. while risk the quarter, primarily Domestic for reflecting in million, quote elevated management with is liability quarter new $XX environment. up, submissions

results COVID-XX. on & despite brought were strong again Bond So, the challenges Specialty by

Beyond and the our on focus agents of competitiveness businesses challenging future. eyes in and positioning in our differentiating and the continued managing broker environment, partners, through in we the the invest for while to customers continued our numbers, notwithstanding profitability ourselves

that insights speed will our continuing surety accessing clients new to small enhance increase sales Some our help manage workflow and management and investing the them effectively products liability will highlights manage of will and management management optimize and agents in that piloting while convenience our a contractor providing improve include, more for in business, productivity, brokers and their digital surety sales. profitably investments platform enable business that platforms risk, XXXX from more to

the addressing to Lastly, in our over unusual And their now, Michael turn will to and employees it partners I these distribution effectively needs thank our I’d customers and of like times. discuss creatively commitment most Insurance. Personal to for to

Michael Klein

good In full Insurance, and morning, are fourth year very our pleased Tom Personal Thanks, we and results. quarter everyone. with

For combined The segment significant the well was to year’s XX.X%. combined improved Full the fourth increased frequency billion from $XXX by our segment automobile and primarily was volumes. losses $X.X driven the as to for as compared of improvement higher periods benefit the is ratio business and income quarter, to income lower year income underwriting XX.X%. million both ratio to prior

Net addition, growth Agency and for results the X% fourth points, losses. The for and include higher resulting $XX.X of year. net for with In and XX.X% ratio full full X% and quarters favorable levels. the development premiums was strong reflect elevated the record in than favorable was the year XXXX. quarter. with quarter catastrophe underlying activity higher more respectively new quarter billion quarter year written of fourth premium year for reserve prior of combined from prior strong continued in written the business, levels continuing net reestimates in for improvement favorable ratio the to Approximately is a Automobile of the improved one-third very combined of profitability frequency XX retention

We claim the the ongoing of frequency reflecting a miles fewer result driven, lower continue to from observe as pandemic. impact

efforts other to combined year by elevated offset weather-related reserve ratio underlying to The included specifically the driven degree, XX% with Catastrophe quarter a and to current our and and of ratio to of we growing continue The full fourth in Zeta, losses, higher fourth will in the prior continuing than losses. Agency development was improve the X one We lesser volumes recoveries underlying Hurricane & was analyze combined of year the by The success year business. year, points combined a driven while due ratio to of In combined ratio ratio business property, weather-related higher non-catastrophe than and losses. to increased our year by increase an the Treaty. incorporate as The and results, Reinsurance underlying returns Other, losses. demonstrates prior and catastrophe, Aggregate improvement XX.X% catastrophe quarter with losses, improved catastrophe in pricing This increases favorable non-catastrophe XX.X% higher no prior lower last from elevated X was almost balance points of losses. the quarter, better underlying XX.X% combined decisions quarter trends fire comparable into state-specific Homeowners year underwriting profitability. increased relative the prior

results quarterly very Turning to production, were strong. overall again

momentum increased growth pricing the in in changes business contributing XX%, environment. were to actions response XX% Automobile. the with in in favorable to premium Retention pleased given new X% Agency year-over-year loss and our our We lower are was policies force. Renewal

other and reflect delivered premium growth We again ago. in renewal a in from Agency excellent These business, and increase retention exceeded our X%. profitability. continue XX% a to another of continued X% up Policies change this new improving in while with while quarter were see grow, results line. to homeowners XX% force year profitable efforts

was income, XXXX a in of Insurance. We net Personal record successful back, year levels and policies both segment Looking written force. premium and challenging for achieved

in to states, now increasing Our by Quantum app, they in them reflects the Canada need number throughout announcing XXX,XXX continued the additional million. customer our our acquisition execution the our XX what out they introduced self-service give telematics available week, want. States, an with customer And are, is conditions. more be Home include, XX in to innovative an XXXX nearing which over customary in improving them across our acquisition IntelliDrive allows that strategy than carriers our and our IntelliDrive success XX completion just just Planting how new X.X where this as the enrollment bringing more they trees quarter Examples broadly will And customers subject of planted of of which X.X MyT well, to serve enhancing capabilities compare auto the take-up for we rollout, quarter first mobile platform first in expect to rolled we of offering customers states. meet recently, of digital to InsuraMatch, Forest online trees offerings total of complete of for the the paperless the United XXXX. billing, with American through closing partnership

up, to wrap distribution I thanks our like to my and challenging for environment. team partners and continuing to our to would our uncertain value add deliver customers a despite I Before

to value enhance XXXX We of to deliver in profitable that will and continue while have strong into the going momentum positioned our investing franchise. capabilities well are growth,

Now, over back I the turn to call will Abbe.

Tom Kunkel

want that mention Tom by and quickly I is jump misspeak liability Kunkel. actually did new to I was this just when $XX $XX Michael, discussing million it said I believe million. in management I it by increased and I decreased business.

Abbe Goldstein

operator, questions. And to you. Thank we now Tom. turn are Thanks, to ready

Operator

Phillips Morgan question comes the Our from Certainly. Stanley. first [Operator Instructions] Michael of line with

Your line Morgan your with is open. open. Michael line Stanley, is Phillips

Michael Phillips

hear me? Can everybody. you hi, Yes,

Alan Schnitzer

morning. We can. Good

Michael Phillips

choppy Good Thanks. had morning. have I a connection.

start a margins, will Congrats we the Business seeing renewal it’s on you quite I a of me. nice, think I quarter. core and in improvement in apologize a I still but I prior on if slowdown, from rate a the bit reason think guess guess sorry, a was Insurance, bit of you I quarter. So choppy. said the said couldn’t hear are guess bit in strong, your am again, still I any while, change, highest I slowdown Alan, you to a nice I

pricing a said think improvement not slowdown to correctly. given have if the guess I expect you in already reason I Insurance? Business up any peak a you I if move bit the renewal I change, in what there think heard and is a not seen for you to is of continue are at to rate close rates margin we

Alan Schnitzer

I about at for it’s hard really and look and up conditions really are we compounding, out environmental. so remarks historical a other so Michael, the think prepared terms outlook his is it’s find to that’s plays think and and in at All record the positive and and negative a I point all levels important. from on made And of And are tightening benefit numbers, this the here, on the while compounding rate important the is in that. adequacy. execution here, function segmentation of we also any this from numbers are Greg the drivers the

activity think appear interest the markets, maybe reinsurance, for got impacting costs think about weathers, you so be about to losses So, some wildfires, primarily suspect the industry longer think loss rates and availability for of I pandemic about inflation. social with if lower inflation, that and reckoning social

favorable expect expanding that will margins continue levels for I result So, as to to while. in a persist at environment and rate that the

Michael Phillips

and Your question a very pricing that results a you apologize inflection it’s Loss in not PYD of a bit second a mentioned what but I a much, market’s choppy, pretty seems thank little at trend there guess, there comp? to of are comp of hearing are sources And there. was what Greg, strong. and mentioned you comp then favorable I also that. Okay, bit I guess, be in you you and for but comp pricing turn external bit seeing the we from least. much lot on

transits and a we kind seeing So lowest of bit in if pretty are a would driving the and you last favorable expect that on comment turn given well? you to comp Thanks. maybe as what’s that should of pricing be there

Greg Toczydlowski

Yes, at Good comp think get workers’ a as morning, continue we recommendations is to cost and the Michael. we we that bottom structure. are Greg. near and loss This or will evidence Yes. own in the bureau rate our

that at entire but yes, one offering comp of terrific we to continue account I’ll the remind just continue about Workers’ bottom. And business. solutions we so are our solution our we an the is feel are many of we and we believe near book usually customers, just that we believe yes, you and to or are that

Michael Phillips

great. Greg. Okay, Thank you,

Operator

line the comes with Autonomous. Your Ryan next Tunis question of from

line Your is open.

Ryan Tunis

morning. thanks. Good Hey,

guess exposed I auto but you seen question GL. I the lines, numbers, in haven’t really like XQ a commercial had for substantial and through third increases economically the and quarter, Just Alan, IBNR

claims starting that. been am things your a you conservative are look come are pace that those support what to seeing initial Is estimates? would I to claims picks. curious higher in courts is relative reported reopen have of So to or – obviously, I like as and starting that you that slow reported guess still loss learning

Alan Schnitzer

to we is view is back would higher longer you our for And obviously that I what right, going are loss might some can and to we so to frankly little I data not explain the We that we sticking saw going we a the data say I few of of that more seeing to have are that be would couple think expected, what activity. best You years, to a way And elevated there that, now a but in responsive? think disruption been the the have in Is level. trends. over some we responded term favorable stick recently, bit it we responding are with because are quarters.

Ryan Tunis

growth but exposure into was quite the And Yes, some of down look just a I you to the in quarter? Greg, about wasn’t negative that what trending similar that as at new much. KPIs X% and look for Insurance better relative It that’s sequentially then XXXX the Business we of based I quarter, looked are last fourth better how workers’ like looking to guess business even to helpful. a bit little on the trying just seeing are am we comp. posted was like during lot think

Greg Toczydlowski

you have said, Ryan, Yes, seen we as improvement with exposure.

you that GDP As shared the GL workers’ terms of time payrolls of ratable do highly overall we the economy with believe picking correlated comp, up with sales that receipts have starts the and for the that in follow products now we some are we sort.

as some our book some already, starts so that And through improvements specifically starting metric. exposure as are we we we up, we in believe the picking see in will see our to production,

Alan Schnitzer

point given book of add right. just Greg’s we we will there. quality correlation even is the – relative than bit relevant related to is done activity. and is that, – might a little actually to I have business There just accounts write But our exactly high that a better to that Ryan I have thought think we economic

Ryan Tunis

Thanks.

Alan Schnitzer

you. Thank

Operator

of from with line Tracy Barclays comes Research. Dolin-Benguigui question next Your the

open. is Your line

Tracy Dolin-Benguigui

I means who Good mindful court is loss activity? morning. just ahead, liability In you. Thank I’m slowdown arms the trend, less guess the or economic that tort race pricing

Dan Frey

Tracy, it’s Dan.

question. repeating little a bit of broke mind You beginning the Do you at it? up the

Tracy Dolin-Benguigui

just there I think guess We thinking it given activity? loss pricing arms is am maybe I’m about Absolutely. the mindful the in that that. economic race or about ahead Apologize race. who for slowdown, a tort court I less liability trend.

Dan Frey

Yes.

remember including like about last that’s we for years talked that’s couple in of of things over So, loss all when elevated the I views more loss our environment and in trend inflation. Tracy, social recent BI

we at are now and numbers of through trend. – when rate Insurance, loss are ahead clearly And so earned coming that looking Business that’s

as at not slower of levels the be that normal, we now ultimately the new that’s I seeing in are claim comes think to assuming your second levels claim point, and we necessarily that of that where it assuming payments are data we are is what payments. won’t looking lower

So higher, think said normal costs ahead view trends. we have are rates those long-term that, stuck with we having think lost of rates lost where are we that now more our but

Tracy Dolin-Benguigui

give follow-up my conditions, improvement our cyber. talking and unpack like been know just for Okay, they liability? I wondering views was an little had I if And I have any silent tighter on in bit that about am then maybe And don’t example excellent. on management a Greg have side, from if you Tom reinsurance the heard could terms

Greg Toczydlowski

Yes, sure, Tracy.

for more the clause value between you changes think different the customer. terms insured wise. and and to coinsurance on to provide the give property and language some back us opportunity two conditions, margin you Just a the sense, help have casualty dynamics that lot you a the Property, deductibles margins have improve I

of – you structure terms the on that of In I term think deal can casualty reference side. the more

management capacity attachment And so we limits very increasing that sure the that are umbrella, in points making we thoughtful putting offer. women’s around are

we So, that’s some are across of that the portfolio. the doing activity

Alan Schnitzer

we where Tom? think to and And exclusions add, just do we you in communicable specific industries example, and that, for a to – example, BI, so, about asked do Tracy, for we know, think in, customers just important segments disease give you do you to because that’s

Tom Kunkel

largely terms deductible, a looks limits coming a has pricing, management lot really the policy And going are is self-insured short-term. been focus liability likely in in of of occur to if it the and certainly down the number really most change way certainly where near a future, we the the be in cyber that on work would the on of place see And businesses but retentions cases. in would

Tracy Dolin-Benguigui

you. Thank

Operator

line Wells question comes of Your next from Elyse Fargo. Greenspan with the

Your line is open.

Elyse Greenspan

us net, a could margin? Good quarter. the the first benefit, net then offset the And one quarter? frequency give on within you including there in just XXX a sorry was Business it, anything we Was sense morning. within else My the the the to missed in if guys I of that BI COVID impact thanks. points as exceeding rate trend on have Hi, question Insurance said you like the margin, basis

Dan Frey

take Yes, Elyse, will Dan. that. I it’s

So, as than a price a think X point, think X.X about a more so I that X.X trend, points. being versus was Greg’s and between little comments

of year’s prior we called sort Greg view would a about up the last The other comparison unusual catch in loss thing our quarter took remember, out, as we which of be X.X ratios point quarter, little might that the we fourth told adjusted terms we year. you of in liability of a say last

comparison it small a it really about in not so that why year-over-year to last points, well. but question, the scripts. think XXs impacted attention didn’t as mention is modest very of which the that as COVID favorable, So the To get the was enough in big quarter,

Elyse Greenspan

and to second Business helpful. like in seeing question Insurance better that’s and expenses Is down you guys related to we XXs have think like is a quarter side, guys like And of you expense come bogey within ratio something But ratio kind as quarter. did improve a around forward this quarter was good ratio you run-rate. of little then bit continue I go or last last when my COVID Okay, a to the kind that to there continued basis? come think expense pointed it where could on in on expense than especially about

Dan Frey

and Yes, expense Elyse, COVID has on minuses some the had pluses side.

we coming I are all around of we things not out have XX, travel were with comments, there at higher full at level. a year provisions When consolidated like this is in something things my for and probably basis, we I look last step On said on hand, at would be comfortable the we there the and some one full this again, the pretty surprised savings said and XX.X, been expenses. debt, where have year bad the but at am back happy think like year, I been in you

have and we what thinking going to expense we think probably I So, about settled we are are say ratio. on

Elyse Greenspan

for color. Okay, thank the you

Alan Schnitzer

Thanks, Elyse.

Operator

of Your the with Bhullar next question comes JPMorgan. from Jimmy line

Your line is open.

Jimmy Bhullar

Hi, good morning.

the your exposure exposure makes U.S., and so in sort you in far whether reassess is the a is question it industry the like interruption but in terms favor had decision views makes Europe? seems I at just insurance least view and of your on – in business first trending exposure FCA any your it your of on of what the So

Alan Schnitzer

morning. Good

week FCA view Ohio Our remains exposure nothing any for company about in pending on else’s, there reserves have insurance I the point in that from that out the put exposure in was earlier not business or our company. There language key another recently, a our ours would related policy that us respects. Europe in we that it. More just to on case to think adverse this asked but in or is And was whether interruption since generally speaking, anyone to question, different some for prefer is litigation differently issue decision that causes you very a that we language it’s up that comment decision unchanged. to standard

no And country, our remain caution in policy to everybody the the months differently been guess I would across few in vast confident of elsewhere, very have the cases business and in so language in just about feel these and keep and Ohio insurers. mind that we And interruption our over favor I exposure. last majority the of

Jimmy Bhullar

declined auto, is to prices pricing litigation of abates? the caught Okay. costs lost And are then on once litigation virus of go lot, secondly inflation you sort your do obviously, think up recently, but views a sort back commercial have in activities just social what

Alan Schnitzer

just much more sensitive pricing is there not Jimmy, our strategy. than competitively

a pricing and So commercial reiterate I that I play favorable is going from to line, still away probably we by while a is auto. of is environment to said this for think out rate we is a just will pricing which it’s before, there function in think going but that’s where stay are we what rate adequacy a going and need

benefit rate from continue will to we in auto. to environment the So, one or another, degree I commercial think

Jimmy Bhullar

Okay, thanks.

Alan Schnitzer

Thank you.

Operator

the Credit from question next with Suisse. Zaremski Our Mike line of comes

open. is line Your

Mike Zaremski

Thanks. morning. Hey, good

am the line the weak in but mouth, guys in improving, line of to to of that going healthy trying is outlook, earnings past a resume just at same the be line picking understood of given going the buyback economy. about talked not to that we top words and sure dynamics as forward, am First wanted versus buybacks, maybe of seems I you still think up levels make was little top kind are question, ratios due pre-COVID, kind to your about you a the to number thinking I I top might not kind put through recall the still,

in the near-term? be might – buybacks So, thinking more for that we there room be should do

Dan Frey

Hey, Mike, it’s Dan.

to earnings the made, I we to Alan it, think to investment don’t leads auto know the that about so for going look top near-term. time, us when do reserve able that’s more balances make years to degree sort are you your this require XXX% commented, we period ago of grows point made right the made year the the only generate been about this don’t going that even X%, really COVID think again, forward necessarily or line were or this thinking dynamics. because grows, And degree year portfolio that of about top are than with basis. the as experienced was year buybacks. grow, a capital you to the so do over think something perpetually conclusion grows. historically, we we we environment on in in are And adjust capital, personal form a to have comments those line plus to that notwithstanding, what recent going about and hold a dividends to go I more and being had that, return the And when of the insurance think of trying we able growth ago we we hold to comments refunds longer you a that’s would in still we true, to everything current that that us the to I requires

of We that for have growth. are to to going some hold

coming still had be bit would still than hold less because the we would on might of but we true. COVID those the be that had all have directionally a top slightly line, year year, would the have little increase things true, effect amount into this would by to same capital So a which dampening expected

Mike Zaremski

claims specifically, And frequencies firms guess, like guys but and said lastly, That’s have claim like about less of to some to comp workers’ dynamic talked still up comp, shifting broadly you filings about sounds a maybe later still in you guys of contemplating? a during kind conservatively. holding that the understood. I in have Historically, picks too after more or holding periods? – catch of kind segment are pandemic, are recessionary talked previous seen you BI Is Okay, kind of your workers’ helpful. it you the

Dan Frey

Yes.

comp you just activity. of color loss bit a workers’ me give how Let or thinking on the see we about little

a claim the, comp of we the on COVID we there degree rate benefit a – of our continues had to There low have going also from frequency people out than first COVID to claims is how be time. the workers’ So, lower uncertainty to is than related severity And play related coming expected. there still some working comp non-COVID COVID rate over home, infection are better point is the to related as related all, is in relative about your thought. but little in are from and relatively workers’ minds might

in way comp we cautious pretty to have for been the don’t surprised have get we losses we that. by sure looking So that workers’ been make that

got in workers’ comp, you forces of to putting want offsetting job. who historically, people Now, aside you COVID a recession, historically, get stay the in sort on

So us in longer little of frequency a bit, less have of historically up to out, they go is severity a on a out because for periods, But bit. comp, down goes people they so are inclined been little workers’ out go the positive. little stay two to but a net once those recessionary tend bit things and

so in hard circumstance the we sure, but past. that’s to for is generally You what different and know every have mean seen

on activity. And as it the see we so workers’ I loss of think that’s landscape comp sort

Mike Zaremski

a was kind a you out I And did with was figure Alan any follow-up of sort will see trying I kind to there post-recession? or okay, net if there that curious of follow-up about of up kind to frequency? appreciate just a catch in comments was kind of you, the post-recession, of the spike just jump a allude to during benefit, I a recession a

Alan Schnitzer

from recessions. I front prior just data don’t in have me that of

anything to I looking to And shoot little I at mean, there responsive each data think am that. front I the just again, don’t that the I but me hip. the that so would particularly sure. are of just around from room as I other, in is to don’t all have be significant, be a we think hesitant not we am

Mike Zaremski

Thank you.

Alan Schnitzer

Thank you.

Operator

Evercore, with Motemaden David is line open. your

David Motemaden

the you last and Hi, another on underlying there points Insurance to to now year-over-year. XQ X% ratio rate think thanks. guess Good core as the points said I as shouldn’t question I obviously we of that’s basis that that, Business head continue improvement XXX improved earning in about XXXX? XXX trend. basis loss above quarter, think that’s improved, loss think in morning. it into we guess Is reason any just accelerate I

Dan Frey

you else looking rarely and would reaching have that see seen to increase has a Hey, pricing basis. to earned yes. all on year continued no, that loss based started We Again, reaching of think lagging impact to on it’s seen the have quarters equal that would that continue we All two come expect through equal ago Dan. have the expected is you was but at in trend basis making and or then is those I point things, extent to where would of exceeding the increase. that to comments else else what an being all to the written earned were being rate mathematically, last on start a when what felt equal, we we the couple you

David Motemaden

Right.

to thanks. conditions into heading dampen terms XXXX? may had that, and of then exposure just is specifically, enter and exposure how guess I impact the about as and XXXX, And any conditions I sort of exposure as appreciate maybe into you maybe, And view terms Greg on may that? guess of quantify in we and think growth Okay, I a on there the this question impact we that, mentioned way that growth terms dampening impact any had growth. Dan.

Greg Toczydlowski

Hey, David. that’s sensitive. It’s Yes, competitively Greg. just

rate, give versus you overall, and PC, terms of really breakdown but insured give you exposure we structure you in So, we deal give the exposure and terms our we conditions. exposure don’t we

don’t we something just provide. that’s So

David Motemaden

Okay, Thank that’s fair. you.

Greg Toczydlowski

you. Thank

Operator

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

is line open. Your

Brian Meredith

thanks. Hey,

dropped retention to and at Greg, on I the small that’s what from the first take meaningfully that I Select just question pretty get bit or my just a at kind one, impact here quarter. look need businesses a business, there economy point retention back you The and and having on if to up? guess kind is on due layoff pushing and retentions second conditions rates the that ratio is having you terms the an of of rate effect it do maybe that’s to are your little that the

Greg Toczydlowski

the of loss just rate isn’t between the the Yes, which and both it that’s a at combination – Select, look is in our as offset and in ratios comfortable can with what profit what Brian. two. the Yes, versus really we we and entire good variance uptick managers improvement BI initiatives, have tradeoff what for when sharing, those morning, we the portfolio. been But product retained underwriters we of retention, feel see the our very lapse that we across

reduction flow, going that pandemic, your the seen most the are businesses. to business on the pandemic terms margins to have we the the continue with smaller has of since comment on felt So we on then improve the certainly Select Select business. pandemic, And in the

but writing has And that new great the so the we now. Select feel business of that, business in business new absolutely are about felt the we right quality

Alan Schnitzer

And if I just…

Brian Meredith

it? retention your affect couldn’t too, could That

Greg Toczydlowski

Sure.

You could, sure yes.

Alan Schnitzer

to levels just retention put in Select. a Brian, been before at I finer types have Greg’s on with, we which point comment of agree these

So, terms ratios. underneath headline retention at granular of is that looking set numbers very this place execution are all be looking loss I isn’t are what unusual in to us shows exactly we an you of at and guess for us a the rate data

this good very very, about feel we So, execution.

Brian Meredith

do Alan, and that some policies economy And to to what eventually your potential you work liability about back to are as Great. maybe in protections reopens? are of all you thoughts thinking of on plans have exposures here, your exposure And some my mitigate how the then follow-up that?

Alan Schnitzer

happen. more Yes, things help a there ago, great have think a been I of right number that question. or XX a today level, some I got to kind federal states federal than it’s glad that action likely less I another X more one At the But way there form of have given just have there COVID am things to probably than we have would protection. leaning have couple one, that’s out would asked. hoped states, We protection, in provide bench think are taken been a you that played still liability have some of certainly. the years some we did liability

classes, So, that that it risk selection. helps some can in have as a industry in put like communicable started before, mentioned things little And bit. And control through and address and exclusions where I then disease risk we important. think be to could we rate we

it’s are we there. an exposure, So – out it’s

that at economic the it’s bar to just think plaintiff’s we it’s recovery, the I of will because think I unfortunate, expense manage fine. benefits it but

Brian Meredith

Great. Thank you.

Alan Schnitzer

you. Thank

Operator

of question the from line Bank with America. Josh comes Shanker next of Our

is line open. Your

Josh Shanker

to wanted I Difficulty] you. Thank [Technical

Alan Schnitzer

at you hear can’t We Josh. all. Hey,

Josh Shanker

Okay. [Technical Difficulty]

Alan Schnitzer

you we take Josh, Why the Josh, – don’t Hey, are yes, ahead. next caller go there?

Josh Shanker

Sorry about guess? that back? temporary – Business attention about we there distribution of volume is don’t we Can think about national that because those terms of think really as the How do doesn’t premium talk to I that the accounts. how business an COVID, to enough of in trying What’s of falloff to comes headphones area I I get I work Insurance in end the accounts, is terms trend in of much all the area what we you the talk premium? guess much about get that. was we that solution. the Anyway, to was $X.XX ex-national okay, use,

Greg Toczydlowski

business we Hey, top that Josh. up that a was or new case we just larger Greg. on more national make line. had X% the where year XXXX loss was accounts and large year accounts quarter This felt can a accounts Yes, that’s the a a and down in is where for and for couple than us of the

it’s portfolio. Now, to we that part we claims and entry national important continue where said, the it service it’s in as you we portfolio around important are of an our for part re-launched and an a our of have encouraged invest accounts. recently And service

Josh Shanker

Are And picks we as there accounting lot economy the now to go through other the trend? we see and that, extent we audit for are expect that direction, in up, of think will terms that the earning to a phase and in we accounting audit accounting. the still the how is of should for audit accounting I

Dan Frey

surprisingly not national degree that’s in the understand Insurance to seen heard in additions Josh, and I that, than that say the front Business sure don’t level it’s front middle activity. don’t accounts different market. I of given I accounts to including am have lower me we of economic overall the we audit, business subject premium know particularly national in audit I your a Dan, accounts. a of not the in year, data this level some Generally anything quite speaking, are lot lower have have of our but question,

think I are broadly in probably seen speaking, response we So surprisingly premium economy. seeing activity you to audit behave in the more have not general what

Josh Shanker

are where on a I now or less premium and I XQ more are your and exposures through audit issue XQ sort premium submissions will that accounts? due still of or stop, we numbers we are the the seeing period period in headwind guess we or are line of time it with comes account but at was a that to XQ Yes, bigger through audit in by weaker

Dan Frey

there premium thinking about would last audit in Yes. less was And careful headwind is of be than year. I there terms year-over-year

reached aggregate have just positive. audit lower, they We premiums in the where haven’t turned yet are point negative,

And continue audits, in while So, rate place. policy to cases, doing first it you it because impacts growth were your a the after point, in are year-over-year. for months will many terms XX the set the

while on to work yet the through policies maturity that And impact so there that is reached COVID haven’t level. still a

Josh Shanker

Alright. have very some you you. take Thank Well, questions, offline. probably more much. I but them thank I’ll

Alan Schnitzer

Josh. Thanks,

Operator

with line the from comes Shields question KBW. of Meyer next Your

Your line is open.

Meyer Shields

Thanks. Great.

pricing question COVID? pricing we normalized you for fluctuating So, driving and on for then but follow-up seeing short-term a that Insurance, Michael, insurance auto to are behavior sort one on adjust are personal quick of the you or are Business driving trying during

Michael Klein

XXXX going pricing I a of mentioned but as that time. have our will view normalize, have Yes, driving at that Josh. continued are in levels we be be sort adjusting say would levels to period of depressed continued reflect in for and we we this levels to Michael. outlook frequency levels that frequency depressed. be our think to depressed. Therefore, again, start driving to are is is I Sure, And to continuously

I into that in long-term, that quarter plan first fourth normalized part filed X are in And so loss again, better in respond and some states the we the factoring handful have to of as our And about than more pricing. decreases XXXX, we we experience. mentioned last a of to quarter,

Meyer Shields

wondering trend I there like presumably Business to percentage helpful. acts because it’s Insurance that’s Greg, of for I better hoping that two represented because those And factors? was look, were a I fair exposure on then Okay, whether presumably they smaller workers’ and follow-up say am maybe and a was guess that premiums the compensation results also from headwinds can earned some comment you than

Dan Frey

Hey, Dan. Meyer, it’s

on will are positive ratios we growing holds exposures on mix that front, will of an you case rate therefore suggest the different and they are inverse. exposure parts are paces, have that this modestly the not when negative that margins. said can that book contribute exposure there So, degree here jump exposure in when on a here to have different different the that’s helpful one, the at impact. as the It’s because necessarily like I as right going is in to true the be behaves same portion in of are loss

of generally what GL that you wage seeing the on exposures positive. that of do levels from and point unless kind when point say there Here, same adverse the running but type the risk exposures, per exposure, register negative exposures employees, things help you you least lower fewer insured lower price got are this deflation was margins have of actually to to don’t cash down, going margins levels at where drives is sales, you was impact at are

Meyer Shields

Thank Okay, you. fantastic.

Operator

question line Paul with comes next Your from the Sandler. of Newsome Piper

open. is line Your

Paul Newsome

are surplus more a and business sure remarkable. essentially a are about just more themselves correctly, lines a or struggling along I congratulations excess the to about of are the of higher interpreting you you economy? business was distressed on quarter, make businesses market. the Greg, comment proportion with want the of the quite morning And you Good going comment made and lines thinking I the talking into in just

Alan Schnitzer

where up rate And some you Greg a neither in. me just difficult let fix the market solving you I But the wrong. write. are end distribution market jump in market is got will trading problems think get to I for in what where whenever cases, actually, some so generally let risks Paul, this in I firming in issues just more capacity got that accounts the like and

perspective. it’s not issues, necessarily not E&S necessarily economic that these risk business it’s So, an just insurance it’s difficult and are moving is to with from their

Paul Newsome

in all be there And thought, focused underwriting, in a the we Okay. I good we consider very we should very, on run-rate then investment anything anything quickly income been there or the there also just should have note anything as that so of is income just this strong results? is taking investment

Dan Frey

Hey, Paul, it’s Dan.

to X. guess investment the and I to you webcast point net I I’d presentation you point Page the income in slide So,

the we been run-rate of we think in portfolio. some has outlook portfolio. really variability gave three the in quarters have income looks like income terms we fixed last So, what The you for non-fixed the seen the that in

three our so is been had look $XX on last then the the pre-COVID a second that that over through in could of hand seen of come have as shows we numbers. eight quadrant And quarter. at in results of of the chart, markets our And of happened that see QX. that see big a time income, you non-fixed first about we impact so. back, talked rebound basis to the to it quarters, markets that what at the so coming sort you or quarter remember, if come last million income bottom equity some was have through right the you or quarters that pre-COVID non-fixed the And disruption was then the dip And lagging in

is the portfolio. big saw QX income just you of results But quarter. that that chart, are very we sense non-fixed in bounce should part at see from look so if to QX that And you the dip you the in strong what back and second the in get

wouldn’t of new I run-rate indicative non-fixed a income And that base. the as take so on

Paul Newsome

Thanks, Great. on folks and the quarter again. congrats

Alan Schnitzer

Thanks a lot.

Operator

is have Stefano with We final time for Deutsche line open. Bank, one question. your Phil

Phil Stefano

me squeezing here. in Yes, end at for the thanks

just remind and in the in the Travelers what court went? and could the a you continues difference court be you difference for was that conditions others this Ohio that us less I is give terms for hoping confidence the that given BI it case issue to wordings So, had so policy mentioned case there might in us than just the is that is and how

Alan Schnitzer

Yes.

in subject – continuing the or hesitant, pending is to policy right me wording, So, you. am circumstance to there parsing front particularly I litigation, so without of language for certainly start the

offline that to the take now, probably right can business have it’s very policies we the say, we interruption. got maybe in to said it, would in So, not but out our venue. we respond beginning I way we and think it have that right figure from a way do will the confidence

had virtually So a have case in we outcome anyway. every we haven’t far had, bad

our and now that at say our about if I will and okay. I exposure reiterate for So don’t business differently in that’s we we that confidence interruption leave that feel think have language any the it just

Phil Stefano

always a that No, but that’s fine. worth the was shot. I answer, it’s figured

of difference of felt at follow-up for compare ratio loss you and we are frequency of had auto and down second being it quarter like quarter just at XXX third is trying driven The miles how fourth much this the contemplating? quarters how take impact of we for what this or of short-term a is back, underlying, that a us give be? actions much help as to pricing driven results, but the forward points benefiting, are at contrast story basis do you to these COVID base could we in looking accident looking underlying look two potential is the to How miles auto coming

Dan Frey

it’s Phil, Dan.

Let me jump in.

when results the expect and our of then have we’ve quarters through miles of year, are actually losses third go been last driven I few as see to months emerge. the filter by, throughout as losses we and do to what then of at both at for we what good think you when we extremely book, Remember, our quarter as specifics that the was trying outsized result. look we expectation quarters look good set gone an maybe the

moving loss variances the So, strong in of surprised The quarters. it’s we go would a in and the the on one in difference and probably Michael what the through be ratio you stock that I little basis, a actions came next, in think, see versus been as indicated bit put significant, of pricing tremendous to to you amount a and that our most not I as a expect wouldn’t recent have quarter target. continue in be wouldn’t by forward margins auto reflected of

in environment had you about step I’d aggregate, that back anymore benefit which specific in think a answer don’t premiums So has I we more had $XXX a and year the to and can COVID know to more response definitely – I the give recall from million than have that. benefit also returned policyholders. of definitely that than

Phil Stefano

No. Great, thanks.

Operator

The call to is turn It now question-and-answer to for ended. over Abbe Goldstein back my final has pleasure remarks. session the

Abbe Goldstein

for is And much us. very Investor a joining follow-up, again directly great please and that. Thanks in have appreciate all as you get with day. thank touch any Hi, Relations. if there usual, We

Operator

you participation. for This concludes conference fourth call. results XXXX the Travelers’ quarter thank your We

You may disconnect. now

The Travelers Companies, Inc. (TRV) 21 Jan 212020 Q4 Earnings call transcript