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CEO Dan Burrows stated that aviation growth will be difficult without significant pricing improvements, as the market has not responded to recent loss activity. CFO Alan Declare explained that the MGU profit commission is based on calendar year GAAP results. With the Russia/Ukraine issue now resolved, strong underlying performance could trigger a profit commission in 2026, and potentially even in 2025, as there is no loss to carry forward.

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CEO Dan Burrows credited the company's ability to make real-time portfolio adjustments to its short-tail book and its daily underwriting call. He noted that Fidelis is seeing increased demand as business flows from the admitted to the E&S market. As a market leader, Fidelis gets a first look at deals and can leverage cross-selling opportunities, which allows for disciplined growth.

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CEO Dan Burrows stated that while a ceasefire would likely ease asset salvage, he could not comment on the financial impact due to ongoing litigation. He disclosed that the wildfire loss was approximately 75% from the reinsurance book and 25% from the direct book, which was in line with expectations. He reiterated that the event should have a positive impact on pricing.

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Founder & CEO Bruce Lucas confirmed the expansion strategy, noting recent growth in South Carolina and plans to launch in New York, New Jersey, and California in early 2026, pending regulatory review. Regarding Florida, Lucas described the market as fragmented with no significant resurgence from large national carriers in coastal zones, reaffirming Slide's confidence in its long-term profitability targets.

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CEO Justin Cohen confirmed the shift to casualty extends the liability tail, which is a deliberate result of strong performance and is aligned with their 60-70% casualty mix target. President & CUO Chris Schenk added that Project Heartland is in its early stages with over three dozen partners activated, indicating a significant runway for future growth.

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President - U.S. Dan Fishbein clarified that about one-third of the adverse experience from the Q4 2024 spike in the stop-loss business has since reversed. CEO of MFS Investment Management Ted Maloney indicated that near-term flow trends, including institutional rebalancing and retail redemptions, are likely to persist, though he remains optimistic about a long-term return to net inflows.

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President - U.S. Dan Fishbein clarified that about one-third of the adverse experience from the Q4 spike in the 1/1/24 stop-loss cohort has reversed. CEO of MFS Investment Management Ted Maloney stated it is difficult to predict short-term flows but expects current trends of institutional rebalancing and elevated retail redemptions to persist in the near term, though he remains optimistic for the long term.

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Executive VP & CFO Edward Spehar directed the analyst to K-filing disclosures for basic numbers on BRCD but stated the most relevant metric is internal cash flow testing, which suggests the entity is appropriately capitalized but not a source of excess capital. Spehar declined to comment on cash flow projections, reiterating that the annual assumption update will be discussed later in the year.

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CFO Ed Spehar confirmed that the midyear target for releasing updated long-term statutory free cash flow projections is no longer realistic, as the firm is prioritizing the simplification of its hedging strategy. CEO Eric Steigerwalt stated that the company is not currently capital-constrained for growth, citing record RILA sales in March, and is focused on balancing profitable growth with pricing discipline.

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CFO Ed Spehar indicated that while the long-term free cash flow ramp-up is still expected, the timeline has been pushed out. He clarified that changes are to the hedging strategy, not the Shield product's core structure. Head of Product David Rosenbaum confirmed a reinsurer change in June for fixed rate annuities helped sales rebound. Spehar also noted they have no tactical positioning on rates and that a modest Q3 loss was due to yield curve steepening.

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Chairman & CEO Peter Zaffino explained that as a major reinsurance buyer, AIG benefits from falling reinsurance rates, which offsets primary property pricing declines and creates no net headwind. He noted that while the property combined ratio might rise slightly, it remains highly profitable. Regarding capital, Mr. Zaffino stated that while capital would be returned to shareholders if growth opportunities don't materialize in the medium-term, he views the current environment as a temporary situation. Don Bailey, EVP & CEO of North America Commercial Insurance, and Jon Hancock, EVP & CEO of International Commercial Insurance, then detailed strong growth opportunities in casualty, financial lines, and global specialty, highlighting robust submission flows and market leadership.

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Peter Zaffino, Chairman and CEO, stated that the uncertain environment does not change AIG's disciplined M&A approach but may create opportunities, reaffirming that capital will be returned to shareholders if no additive deals are found. On mix shift, he explained that Q1 is heavily influenced by property reinsurance renewals and that the portfolio's shift toward casualty lines, which carry higher loss ratios, will be reflected in the overall combined ratio over time.

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Chairman and CEO Peter Zaffino confirmed the 10%+ ROE guidance includes the estimated $500 million wildfire loss, attributing the confidence to AIG's well-structured global portfolio and reinsurance program. He highlighted strong commercial portfolio performance, planned improvements in global personal lines, and disciplined capital management as key drivers. For growth, an executive (presumably John Hancock) and executive Donald Bailey detailed strong retention and new business momentum in International Commercial, particularly Global Specialty and Marine, and in North America Commercial, led by Lexington, emphasizing a disciplined, risk-adjusted approach.

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Chairman and CEO Peter Zaffino confirmed AIG has the flexibility to increase leverage from its current low levels for compelling opportunities, while noting the company intends to grow into its current capital base. Regarding Personal Lines, he stated the transition is progressing well, with the acquisition ratio expected to improve in 2025 as ceding commissions decrease. He highlighted the successful pivot to E&S, which saw 20% rate increases and comprised 50% of new business in the quarter.

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CEO Laura Prieskorn reiterated the company's 'earn it, then pay it' philosophy. CFO Don Cummings added that Jackson pursues a balanced approach of strengthening the balance sheet, investing in growth, and returning capital to shareholders, viewing them as concurrent goals. Regarding AUM, Cummings acknowledged the strong market impact and noted that while G&A expenses are fixed, some asset-based commissions are variable, creating a partial offset to margin expansion.

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CEO Laura Prieskorn reiterated the company's 'earn it, then pay it' capital philosophy. CFO Don Cummings added that Jackson views capital allocation as a balanced approach, enabling simultaneous investment in business growth, balance sheet strength, and shareholder returns, rather than an 'either/or' decision. Regarding AUM, Cummings acknowledged the strong market impact and noted that while general expenses are fixed, some variable costs like asset-based commissions would slightly offset margin expansion from higher AUM.

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CEO Laura Prieskorn reiterated the company's 'earn it, then pay it' philosophy. CFO Don Cummings added that Jackson will maintain a balanced approach, supporting the balance sheet, investing in growth, and returning capital to shareholders, noting they can do both simultaneously. Regarding AUM, Mr. Cummings confirmed that while higher AUM boosts fee income, some variable expenses like asset-based commissions would provide a partial offset to margin expansion.

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CEO Laura Prieskorn affirmed that PPM is a core part of Jackson's business. Craig Smith, President and CIO of PPM, added that PPM operates across five verticals for both Jackson and third parties and is actively growing, citing the recent hire of an emerging market debt team. On capital generation, CFO Don Cummings noted that the 2024 result included a one-time tax benefit and that the forward guidance of over $1 billion for 2025 is based on reasonable equity market assumptions, indicating confidence in its sustainability.

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CEO - Voya Investment Management Matt Toms reported that the AGI partnership remains strong, driving growth in private placements and global fixed income distribution, with continued momentum expected. On the Retirement question, CEO & Director Heather Lavallee reiterated Voya's focus on its 2025 priorities, including Employee Benefits margin improvement and the OneAmerica integration. She emphasized disciplined expense management to fund targeted investments, such as the modest build-out of wealth management capabilities.

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Executive Matthew Toms expressed satisfaction with Investment Management flows, which are exceeding the 2% organic growth target, driven by breadth across international retail, fixed income, and strong U.S. intermediary channels. Executive Rob Grubka addressed Wealth Solutions, noting strong commercial momentum with a 25% growth in sales and a 4x increase in mid-market sales. He expects a strong Q4 in recordkeeping and a turn to positive flows in full service next year.

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An unnamed executive clarified that the larger dividend was not a policy change but a function of very strong regulatory FSA results for the fiscal year that ended March 31, 2025. Masatoshi Kuide of Aflac Japan detailed their digital transformation, which focuses on improving customer experience with tools like GenAI and digital human avatars, and on boosting operational efficiency, which is running ahead of schedule and helping to control costs.

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CFO Max Brodén clarified that the significant dividend from Japan was not a change in policy but a direct result of very strong regulatory earnings for the fiscal year ending March 31, 2025. An Aflac Japan executive detailed their digital transformation efforts, which include using GenAI and digital avatars to improve customer experience and operational efficiency, noting the initiatives are ahead of schedule.

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Max Broden, CFO, acknowledged the segment's complexity and identified the key drivers as future reinsurance activity, interest expense, and the accounting for tax credit investments. He explained that Q1 results were affected by lower tax credit investments compared to the prior year and guided that the segment's pretax income should remain positive but generally lower than the Q1 level.

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CFO Max Broden explained that for Japan life products, strong IRRs are achieved on a post-reinsurance basis, which overcomes new business strain. Virgil Miller, President of Aflac U.S., stated that while individual product platforms are strong, the current strategic investment is focused on integrating them to provide a unified, bundled offering to the market.

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Koichiro Yoshizumi described the medical insurance market as having severe and continuous competition. He stated Aflac's strategy is to win through product uniqueness, such as its 'monthly coverage' feature, and by leveraging its strong distribution channels. For cancer insurance, he emphasized Aflac's 50-year history, deep expertise, and exclusive sales arrangement with Japan Post as key competitive advantages.

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CEO Timothy Turner explained that while submission flow for construction remains strong, project binding periods have been prolonged due to higher interest rates, though the renewable policy side of the business is steady. Regarding the Nationwide deal, Founder & Executive Chairman Patrick Ryan highlighted the strategic fit, while CFO Janice Hamilton advised that revenue would be realized over time, subject to renewal attrition and typical seasonality, but did not provide a specific financial forecast for the new business.

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CEO Tim Turner explained that technology investments are focused on streamlining workflows, system consolidation, and experimenting with AI to reduce cycle times and empower producers. Regarding Q2, CFO Janice Hamilton acknowledged it is their largest property quarter and faces a 'tough comp' from the prior year before rates decelerated. She reiterated the expectation for modest property growth for the remainder of the year, a sentiment echoed by Mr. Turner, who noted the guidance does not assume a material improvement in property market conditions.

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An executive, likely CEO Timothy Turner, responded that the casualty market continues to firm, particularly in high-hazard verticals like transportation and product liability, which is driving double-digit growth into the E&S channel. He confirmed the company's business mix remains approximately two-thirds casualty and one-third property, and expressed a bullish outlook on casualty's momentum continuing into the fourth quarter.

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CEO Andrew Robinson attributed the captives growth to an innovative property-focused captive for auto dealers that uses proprietary weather technology. For A&H, he explained that growth is driven by group captives, which enhances their ability to manage medical costs through methods like reference-based pricing and negotiating large bills before payment, a key differentiator from the typical 'pay and pursue' approach.

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CEO Andrew Robinson attributed transactional E&S growth to a great team and strong submission flow, with pricing remaining attractive despite some competition. CFO Mark Haushill advised assuming a low 60s gross-to-net ceded premium ratio for the full year. Andrew Robinson added that Q4 should be a clean comparable, unlike Q3, and that the ratio will naturally rise over time as the company's risk appetite increases and the high-cession Global Property book shrinks as a percentage of the total.

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Mario Rizzo, President of Property-Liability, explained that retention has stabilized but remains down year-over-year due to industry-wide affordability issues prompting more consumer shopping. Regarding California, Tom Wilson, Chairman, President & CEO, noted the market is currently dysfunctional but could work. Mr. Rizzo added that recent regulatory moves on wildfire models and reinsurance cost recovery are constructive, but Allstate is still reviewing the details and is not currently writing new business there.

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Thomas Wilson (executive) and Mario Rizzo (executive) explained that while retention remains a focus, the overall PIF growth is the key metric. The SAVE program is designed to reduce customer defections by improving affordability and service. On capital, Wilson and Jesse Merten (executive) asserted that Allstate is in a 'really strong capital position,' with a rebuilt 'stress layer' in their economic capital model designed to absorb volatility, making the premium-to-surplus ratio a crude measure.

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Jim Williamson, President & CEO, clarified that the A&H growth is concentrated in the 'accident' business, such as business travel and participant accident lines, which are low-severity and performing well. On reinsurance, Williamson stated that property cat terms and conditions are holding firm. He noted that since the returns on deploying capital into property cat are highly attractive and exceed the benefits of buybacks, the company has the capital strength to pursue both growth and share repurchases.

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CFO Mark Kociancic affirmed that Everest has the capacity to both support its growth plan and continue meaningful share repurchases. CEO Jim Williamson added that evaluating casualty reinsurance partners goes beyond pricing to include portfolio management and claims handling, noting Everest has already shed approximately $800 million in underperforming North American casualty premium since early 2024.

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President and CEO Jim Williamson stated the wildfire event should have a positive impact on pricing, creating opportunities for selective deployment. CFO Mark Kociancic advised focusing on metrics like IBNR, ultimate loss ratios, and especially the global loss triangles in the 10-K for granular data, supplemented by management's ongoing commentary on disciplined execution.

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Executive James Williamson stated that heavy remediation began in March 2024 and is about halfway complete, with the impact already reflected in Q3 and Q4 results. He asserted they do not manage to a top-line number. For future strategy, he described a consistent global approach: to be the first call for brokers placing their best large account specialty clients, a strategy that is performing well outside of U.S. casualty.

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CEO Ellen Cooper stated that Group growth is driven by a combination of factors, including a targeted segment strategy, dedicated distribution teams, strategic broker relationships, and significant investment in digital capabilities and InsurTech integrations. CFO Chris Nezepore described the reinsurance market as 'robust' and confirmed the focus is on the legacy life block. He noted that having excess capital provides more flexibility in structuring a potential deal, but it remains one of several options being explored.

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CEO Ellen Cooper responded that while the annuity market is competitive, Lincoln focuses on profitable growth through its broad distribution, unique product features, and optimized investment strategy. Both Cooper and CFO Christopher Neczypor emphasized that the Bain partnership is a strategic platform for future growth, enabling the exploration of adjacent opportunities by leveraging Lincoln's distribution and Bain's asset management expertise.

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CEO Nicolas Papadopoulo indicated that the integration is progressing, with a key focus on improving the program side of the business over the next 12-18 months. He and CFO & Treasurer François Morin explained that the Midcorp business is distinct from E&S, providing a platform in the admitted mid-market, while casualty risks continue to flow into the E&S market due to social inflation.

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The company has achieved approximately 60% of its targeted LTC rate increases, noting the regulatory environment is constructive and the process is now largely administrative. Regarding medical inflation, management stated that Unum's businesses are generally not impacted, as benefits for disability, life, and LTC are typically based on wages or fixed indemnity amounts, not the cost of care.

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Chris Pyne, head of Group Benefits, clarified that while 2024 persistency was very strong, he anticipates a return to more normalized levels in 2025 as more cases come to market for bidding. CFO Steven Zabel explained the $200 million reduction in the LTC protection level was an expected result of tax friction. As improved interest rate assumptions allowed for the release of premium deficiency reserves, the amount was taxed, but the resulting capital remains within the Fairwind subsidiary to support the block.

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Chris Pyne, Head of Group Benefits, explained that after 'super strong' persistency in 2024, a more normalized level is expected in 2025. CFO Steve Zabel confirmed the LTC analysis, stating that a release of the premium deficiency reserve in Fairwind due to higher rates was a taxable event, causing the protection level to decrease from $2.8B to $2.6B. He noted Unum is indifferent as the capital remains within Fairwind to support the block.

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President of Retirement & Income Solutions, Christopher Littlefield, and CEO Deanna Strable described the outflow capture as a long-term build focused on advice capabilities, noting it will take time to emerge in financials. On private assets in DC plans, the executive team, including Asset Management CEO Kamal Bhatia, expressed support for the concept, citing their experience, but cautioned that adoption will be slow due to fiduciary concerns, similar to the rollout of in-plan retirement income solutions.

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Executive Kamal Bhatia detailed PGI's strategy of focusing on a robust RFP pipeline and expanding international equity and private credit capabilities. Executive Christopher Littlefield reiterated that RIS is prioritizing profitable revenue growth over raw flow volume. President and COO Deanna Strable-Soethout stated that interest rate sensitivity is now very low with virtually no net exposure to floating rates, a result of the earlier fixed annuity transaction.

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Chairman & CEO Christopher Swift attributed the year-over-year change in the Small Business combined ratio to a non-recurring, non-cat weather benefit experienced in the prior-year quarter. For workers' comp, Swift and President A. Morris Tooker stated that pricing is on plan and California remains a very good state for their book. Swift noted that while pricing ex-comp is comfortably above trend, comp pricing turned slightly negative in the quarter, but this has not affected their overall loss picks.

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President, CEO & Director J. Powell Brown stated simply that the company wrote less new business in the quarter and that one quarter does not make a trend. He noted that while there is some anecdotal evidence of business moving from E&S back to admitted markets, it is not significant enough to be a major driver of results.

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J. Powell Brown, an executive, noted that private equity interest in M&A, which had slowed as rates rose, is now increasing as rates begin to decline. He reiterated that Brown & Brown's disciplined approach remains focused on cultural fit and financial sense, with active pipelines both domestically and in existing international markets, such as the Netherlands.

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EVP & Group Chief Underwriting Officer David Marra confirmed the purchase of additional ceded protection, including an aggregate cat bond and second-event covers, to optimize the net portfolio and protect against multiple large events. President & CEO Kevin O'Donnell clarified that the casualty pullback is a forward-looking portfolio structuring decision and not a reflection of concerns about the legacy book's reserve health.

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CFO Bob Qutub provided a mechanical overview of the loss calculation, starting with the gross loss, which is then reduced by ceded reinsurance and adjusted for reinstatement premiums, with the net impact allocated between the company and NCI partners like DaVinci. Regarding the Tokio Millennium Re (TMR) book, Qutub and CEO Kevin O'Donnell stated that after 4.5 years, the reserves are largely developed, they remain comfortable with their position, and there is still some small capacity left on the adverse development cover.

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Chairman & CEO Evan Greenberg explained the reinsurance premium decline was due to the non-repeat of a large structured deal from the prior year and disciplined underwriting on property-related business. Regarding capital, he stated it is deployed in ways accretive to ROE to support insurance and investment operations, providing flexibility for organic or inorganic growth, while also being returned to shareholders via dividends and buybacks.

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Chairman & CEO Evan Greenberg clarified the reinsurance premium decline was due to the non-repeat of a large structured deal from the prior year, and that underlying growth was muted as Chubb remained disciplined on inadequately priced property business. Regarding capital, he stated it is deployed in accretive ways to support insurance and investment operations, while maintaining flexibility for opportunities and returning excess to shareholders.

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Chairman and CEO Evan G. Greenberg confirmed that casualty lines are achieving necessary rate increases in both large account and middle market segments, and as a result, Chubb is growing its casualty exposure. Regarding reinsurance, he stated that as a buyer, the approach is 'steady as she goes.' As a seller, he noted that the Global Reinsurance business grew during the quarter, with opportunities in both property and casualty.

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Chairman and CEO Evan G. Greenberg described California as a difficult market due to rate suppression, which has led Chubb to reduce its exposure in the wildfire-affected area by over 50%. He called the state's insurance model unsustainable. He noted it is too early to determine if the event will broadly impact property pricing, as that depends on the final loss amount and its distribution across the industry.

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Chairman and CEO Evan G. Greenberg stated that casualty price adequacy cannot be generalized, as it varies significantly by product, geography, and customer segment. He rejected the premise that an elongated claims cycle was driving asset growth, instead attributing the larger invested asset base to strong business growth and healthy margins, which he views as a source of strength.

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President & CEO W. Robert Berkley, Jr. clarified that concerns about tariffs and labor costs are forward-looking and not yet materially impacting loss activity. He added that while margins could improve from current levels, the company remains cautious due to several leveraged variables.

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President & CEO W. Robert Berkley, Jr. clarified that concerns about tariffs and labor costs are currently forward-looking and have not yet materialized in the company's loss activity. He expressed confidence that current rate levels are adequate to support or improve margins, but cautioned against premature conclusions.

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W. Robert Berkley, Jr. (Executive) emphasized the company's unapologetic focus on risk-adjusted returns, stating they will be defensive where margins are inadequate, as shown by the 15% reduction in casualty reinsurance. He expressed confidence in finding growth opportunities, particularly in insurance, aiming for growth in excess of trend. Regarding primary property, he acknowledged increased competition but stated a tailwind still exists, though it has diminished, and it remains a viable area for growth at targeted profitability.

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Executive W. Berkley stated the company has a surplus of capital and is generating it faster than it can be deployed, making continued opportunistic capital returns to shareholders a reasonable assumption. Regarding reserves, he pointed to metrics like the strength of IBNR relative to total reserves and earned premium. He cautioned against broad-brush industry conclusions, emphasizing that WRB's specific mix of business and use of claims-made forms require a more granular analysis than some observers apply.

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CFO Dan Fry explained that the modest margin benefit from property mix has already dissipated as property growth moderated, and this is reflected in current results. Greg Tislowski, President of Business Insurance, noted they are managing the cumulative trauma trend in California with specific strategies. CEO Alan Schnitzer added that overall workers' comp loss trends remain favorable to expectations.

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CFO Dan Fry explained that the modest margin benefit from property growth has already dissipated as pricing moderated and is not a significant mix factor now. Greg Tislowski, President of Business Insurance, confirmed they are actively managing the multi-year trend of cumulative trauma claims in California. CEO Alan Schnitzer added that overall workers' comp loss trends remain favorable to expectations.

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CFO Dan Fry stated that the outsized growth in property has moderated and no longer has a meaningful impact on margin mix. Greg Tislowski, President of Business Insurance, confirmed they are actively managing the cumulative trauma trend in California. Chairman and CEO Alan Schnitzer added that overall workers' comp loss trends remain favorable to expectations.

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Michael Klein, President of Personal Insurance, stated their approach hasn't changed, as the property line is not yet delivering target returns and the persistence of favorable frequency is uncertain. Chairman and CEO Alan Schnitzer added that while they have managed wildfire exposure, it's difficult to provide more color on their relative market share in the affected areas.

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President & CEO John Doyle and Mercer CEO Pat Tomlinson explained that while rising medical costs drive client demand for consulting, most of their US health business is fee-based, limiting the direct revenue impact from medical inflation. On AI, Mr. Doyle and the leaders of all four business segments (Marsh, Guy Carpenter, Mercer, Oliver Wyman) provided examples of current implementations, including enhancing analytics with unique data sets, creating agentic AI interfaces for client portals, and supporting clients' AI strategy, all of which are expected to drive efficiency and create new value.

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President & CEO John Doyle and Mercer CEO Pat Tomlinson explained that while rising medical costs create stress for clients, it drives demand for their consulting services, though much of the U.S. business is fixed-fee. On AI, executives from all four business segments provided examples of its implementation, from enhancing client data interaction at Mercer (Pat Tomlinson) and turbocharging analytics at Oliver Wyman (Nick Studer), to leveraging unique data sets for supply chain and claims insights at Marsh (Martin South) and modeling climate risk at Guy Carpenter (Dean Klisura).

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President and CEO John Doyle explained that the middle market exhibits more consistent pricing, which was up a couple of points in the quarter, in contrast to the more cyclical large-account market. Regarding Q2, Doyle acknowledged the competitive market but emphasized that the long-term cost of risk is rising due to factors like natural catastrophes and inflation, highlighting the need for investment in risk mitigation and resilience.

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CEO John Doyle and Marsh CEO Martin South explained that Marsh's growth was broad-based, with strong performance in both U.S./Canada and International. South highlighted a reacceleration in Q4, marking the 16th consecutive quarter of 6% or better growth, driven by improved retention and new business. Doyle noted that an M&A pickup benefits multiple businesses, including Marsh, Mercer, and Oliver Wyman, by creating demand for due diligence and transaction-related products.

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CEO Kevin Hogan described the relationship with Nippon Life as very positive, noting they are taking a structured approach to identifying mutually beneficial commercial opportunities. Regarding the portfolio, both Hogan and CFO Elias Habayeb expressed confidence in its resilience, citing a high-quality (95% investment grade), diversified, and liability-driven strategy. Habayeb highlighted proactive risk management, strong covenants in private credit, and a strong balance sheet as key mitigants to credit stress.

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CFO Elias Habayeb explained that cash flow growth is supported by diversified revenue sources, expense reductions, and the financial flexibility provided by the Bermuda entity. CEO Kevin Hogan added that balance sheet optimization will continue through asset portfolio work, further opportunities for reinsurance (both internal to Bermuda and external), and an expected recovery in variable investment income (VII).

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CEO Susan Griffith provided a detailed overview of Progressive's granular modeling for tariffs, explaining how they analyze each vehicle's components for compliance to predict cost impacts. Regarding homeowners, she stated they are in a much better position, finishing non-renewals in Florida and being cautious in California, with a focus on growing profitably in less volatile states, especially through bundling.

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CFO Yanela Frias explained that Prudential hedges its equity in Japan, not its earnings, and this program is factored into its ESR capital assessment. She clarified that the core earnings strength in Individual Life is sustainable and reflects profitable, capital-efficient new business, which is distinct from the headwinds caused by the runoff of the legacy GUL block.

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Executive Paul Lorentz attributed the strong GWAM margins to a diversified franchise, higher-margin geographies, and disciplined expense management, which he expects to continue. Executive Marc Costantini addressed the P&C risk, stating wildfire exposure is limited and that the overall portfolio risk has been reduced through adjusted underwriting, higher attachment points, and tighter pricing over the last two years.

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CFO Robin Raju reported that the novation to Venerable was completed in January and the second phase of moving business to Arizona is on track for 2025. He also clarified that the initial funding for the Bermuda entity was already included in the 2024 cash flow results, with future needs factored into forward guidance.

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CFO Robin Raju stated that mortality is normalizing after a prior pull-forward and that the segment remains on track to meet its $200-$300 million annual earnings guidance. On capital, he confirmed that Equitable expects to reach the high end of its $1.4-$1.5 billion cash generation guidance for 2024, supported by diverse and predictable cash flows, and remains confident in its $2 billion target for 2027.

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CEO J. Gallagher responded that the AssuredPartners acquisition will substantially increase Gallagher's 'at bats' against smaller players, as AP competes with independents in communities where Gallagher is not currently present. CFO Douglas Howell reinforced this, noting the market remains highly fragmented with nearly 30,000 brokers, and the combination creates a '1 plus 1 can equal more than 2' opportunity by expanding their collective reach.

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CFO Wendy Young addressed surrenders, noting that elevated levels will likely persist with higher interest rates and guided analysts to the last twelve months' ROA of 126 basis points to smooth out quarterly volatility. CEO Chris Blunt added that the quarter-over-quarter difference was not substantial. On the sales outlook, Blunt expressed strong optimism for retail growth, noted PRT sales have already surpassed the prior year's total with a target of $2-$4 billion annually, and characterized funding agreements as opportunistic.

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CFO John McCallion stated that a steeper yield curve is generally better for the company and that floating-rate assets and liabilities are well-matched. CEO Michel Khalaf explained that the new strategy will enhance returns through a combination of growing high-return businesses and continuing to improve unit costs, leveraging the company's disciplined execution.

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CFO Edmund Reese stated that free cash flow is performing as expected, despite impacts from known extraordinary items like NFP integration and legal costs, and reaffirmed the long-term double-digit growth target. President Eric Andersen added that net new business success was strong across priority areas like construction and with large enterprise clients needing complex solutions. Reese emphasized that generating 10 points of growth from new business is a normal and key driver for Aon.

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