Bob Huang

Bob Huang from Morgan Stanley asked about the potential competitive dynamics if AI makes broking more efficient, specifically if brokers in the ultra-high net worth space might enter TWFG's market, and how this could impact TWFG.

Answer

Gordy Bunch, Founder, Chairman, and CEO of TWFG, stated that with a $1 trillion addressable market, there's ample room for growth even with new competitors. He highlighted TWFG's position as a net beneficiary due to its improving technology and platform, which can attract agents and provide a home for subscale independent agencies lacking resources to adapt to technological changes. Mr. Bunch also referenced past predictions of the independent agent's demise that proved incorrect, reinforcing TWFG's resilience.

Bob Huang questioned whether increased efficiency from AI in broking could lead to more competitors, such as ultra-high net worth brokers, entering TWFG's market space, and how this might alter competitive dynamics and impact TWFG. He also asked if TWFG's experience with past industry changes made them resilient.

Answer

Gordy Bunch, Founder, Chairman, and CEO of TWFG, responded that despite potential new competitors, the $1 trillion addressable market offers significant growth opportunities. He highlighted that the net number of agencies has grown despite consolidation, and TWFG's technology and platform position it as a net beneficiary. Mr. Bunch also noted that 38,000 subscale independent agencies, lacking resources to adapt to tech changes, would likely seek affiliation with models like TWFG's Agency in a Box. He affirmed that TWFG is well-versed in navigating industry changes, referencing past predictions of independent agent demise that proved incorrect.

Bob Huang asked if the excess casualty pricing environment is beginning to plateau for 2026, considering social inflation and underwriting discipline, and whether AI/automation like Baleen could eventually disintermediate brokers by allowing direct customer engagement.

Answer

Derek Broaddus, Head of Casualty, observed that limit discipline largely remains, with a 'lumpy moderation' in pricing, and directionally, rates are exceeding loss trends. Stephen Sills, CEO, stated that disintermediating brokers is not on Bowhead's radar for their complex specialty insurance, emphasizing the value brokers and wholesalers bring. He highlighted that the primary advantage of their digital model is speed and underwriter assistance for handling smaller business.

Bob Huang asked about the current pricing environment in Excess Casualty, specifically if it shows signs of plateauing and its growth prospects for 2026, and questioned the potential for AI and automation (Baleen) to disintermediate brokers or handle higher limits directly.

Answer

Head of Casualty Derek Broaddus observed that limit discipline in the Excess Casualty market is holding well, with a 'lumpy moderation' in rates, where some deals see continued increases while others with good loss experience see less. CEO Stephen Sills stated that disintermediating brokers is not on Bowhead's radar, emphasizing the complexity of specialty insurance requiring broker expertise and the primary advantage of technology being speed and underwriter assistance for smaller, high-volume business.

Bob Huang from Morgan Stanley questioned whether the pricing environment in Excess Casualty is beginning to plateau for 2026, considering social inflation and past undisciplined underwriting. He also explored the potential for Bowhead Specialty's AI and automation, specifically Baleen, to disintermediate brokers by going directly to customers for certain lines of business.

Answer

Derek Broaddus, Head of Casualty, noted that limit discipline largely remains in Excess Casualty, with a 'lumpy moderation' in pricing where rate generally exceeds loss trend. Stephen Sills, CEO, stated that disintermediating brokers is not on Bowhead's radar, emphasizing the complexity of specialty insurance and the value brokers and wholesalers bring, especially for non-homogenous risks. He highlighted the primary advantage of technology as speed and efficiency in handling submissions.

Bob Huang asked for clarification on the AI orchestration layer, specifically whether it sits on top of all AIG's technology or manages localized AI systems. He also inquired about the low-hanging fruits from AIG's AI journey that are expected to impact numbers soon, and more complicated, longer-term projects.

Answer

Peter Zaffino, Chairman and CEO, AIG, explained that the orchestration layer focuses on implementing single AI agents at scale in an orderly way, experimenting with multiple agents across underwriting, functional, and back-office areas. He noted that the low-hanging fruit is reducing cycle time with higher quality data for underwriters, leading to a massive shift in submission processing without additional human capital. The long-term opportunity lies in orchestrating agents across the entire digital workflow (front to mid to back office) to analyze unbiased information and shrink processes, an opportunity he believes is greater than initially thought at Investor Day.

Bob Huang asked about the immediate 'low-hanging fruit' opportunities from AIG's AI journey that could impact financial results, versus more complex, longer-term projects.

Answer

Peter Zaffino, Chairman and CEO of AIG, identified reducing cycle time with higher quality data for underwriters as the primary immediate benefit, enabling significant submission processing without additional human capital. The long-term opportunity lies in scaling the orchestration of AI agents across the entire digital workflow (front to back office) for comprehensive, unbiased analysis.

Bob Huang followed up on the severity point, questioning if autonomous driving should theoretically lead to an immediate improvement in severity, considering the cost split between parts and bodily injury.

Answer

Thomas J. Wilson (CEO, Allstate Corporation) clarified that severity actually increases with autonomous driving because fewer minor accidents mean the remaining accidents are more severe. He also highlighted the impact of aggressive attorney involvement on bodily injury costs and the difficulty in isolating the exact attribution of severity changes to autonomous features versus other factors like faster driving.

Bob Huang asked for Allstate's perspective on the pace of autonomous driving technological development and its potential impact on personal auto insurance, viewing it as either a threat or an opportunity. He followed up by asking why bodily injury severity increases if autonomous driving reduces frequency, and how parts cost relates to bodily injury.

Answer

CEO Thomas J. Wilson stated that Allstate has been monitoring autonomous driving for 15 years, leveraging over 2 trillion miles of telematics data. He described autonomous driving as leading to safer driving, which reduces frequency but increases severity due to the high cost of replacing advanced vehicle equipment. He noted the slow pace of hardware turnover in the industry. Regarding severity, Mr. Wilson explained that fewer small fender benders mean the remaining accidents are more severe. He attributed the increase in bodily injury severity to aggressive attorney involvement and faster driving, though he could not quantify the exact attribution.

Bob Huang asked for details behind Voya Financial's Stop Loss reserve actions, inquiring if they were conservative or due to developing losses, and followed up on the sufficiency of the 24% rate increase for the January 2026 cohort given broader Stop Loss dynamics.

Answer

Mike Katz (CFO, Voya Financial) clarified that the January 2025 business was performing modestly better than the prior year. He explained that the reserve increase was a prudent measure to be at the higher end of the best estimate range due to the wider range of outcomes in the healthcare backdrop, especially given the critical nature of claims experience development in Q1. Heather Lavallee (CEO, Voya Financial) reiterated that Stop Loss is a two-year journey with significant progress made in 2025 and further upside expected.

Bob Huang inquired about growth opportunities and momentum in Chubb's Latin America overseas business, specifically outside of Mexico, and the competitive dynamics in the Asia business following a recent acquisition.

Answer

Evan Greenberg, Chairman and CEO of Chubb, detailed consumer business partnerships with banks (e.g., Banco de Chile, Nubank, Banco de Guayaquil) and agent-driven growth in Mexico, mentioning the Banamex partnership. For Asia, Mr. Greenberg emphasized the region's scale and growth from consumer lines, noting the challenge of competing due to diverse markets, cultures, and the necessity of established local franchises, technology, and data insights.

Bob Huang asked for more color on growth opportunities and momentum in Chubb's Latin America overseas business, specifically outside of Mexico, and the competitive dynamics within the Asia business given recent acquisitions and market excitement.

Answer

Evan Greenberg, Chairman and CEO of Chubb, detailed consumer business partnerships with banks (e.g., Banco de Chile, Nubank, Banco de Guayaquil) and agent-driven growth in Mexico, emphasizing broad-based opportunities. For Asia, Mr. Greenberg highlighted the region's scale and volatility, noting the difficulty of market entry without established local franchises and technology. He indicated growth primarily in consumer and small/middle market commercial lines.

Bob Huang asked about Aon's talent and retention strategy amidst aggressive competition, particularly in high-growth sectors like data centers and energy, and inquired about the outlook for inorganic growth and M&A valuations in the current market.

Answer

President and CEO Greg Case emphasized Aon's unique position to attract and retain talent through significant investments in AI business services and enhanced capabilities. CFO Edmund Reese highlighted a 6% net increase in revenue-generating hires for the year, contributing 50 basis points to organic revenue growth, and discussed a robust M&A pipeline focused on high-margin, high-growth areas, while noting a lag in valuation adjustments due to seller expectations.

Bob Huang asked about the competitive landscape for talent and retention, specifically inquiring about the impact of aggressive brokers on Aon's ability to retain and hire in key growth areas like data centers, Energy, and infrastructure. He also asked about Aon's strategy for acquisition and inorganic growth, given broader market volatility and pricing deceleration, and whether the company foresees more attractive M&A valuations or plans to adjust its pace of inorganic growth.

Answer

CEO Greg Case emphasized Aon's fundamental investment in talent, leveraging its AI-embedded Aon Business Services (ABS) platform to enhance colleague effectiveness and attract new talent, resulting in a 6% net increase in revenue-generating hires. CFO Edmund Reese acknowledged the aggressive competitive environment but confirmed Aon is on track with its talent objectives, with 2024 and 2025 cohorts contributing 50 basis points to organic revenue growth, particularly in priority areas. Regarding M&A, Edmund Reese highlighted Aon's strong capital allocation model, including $7 billion in available capital for 2026, disciplined debt reduction, and programmatic tuck-in acquisitions, which generated $42 million of EBITDA in 2025. He noted a robust pipeline for high-margin, high-growth areas, particularly in the middle market through NFP, and a commitment to at least $1 billion in share repurchases, while maintaining strict financial and strategic criteria for acquisitions despite sellers anchoring to trailing EBITDA. Greg Case added that the NFP Wealth divestiture underscored Aon's focus on maximizing return on capital.

Bob Huang asked about specific casualty lines where pricing trends are becoming irrational, potentially leading to exposure cuts. He also inquired about low-hanging fruit or specific AI capabilities that are closer to reality and expected to yield quick payoffs.

Answer

CEO Rob Berkley identified Auto Liability as a line where they are actively shrinking exposure due to inadequate rates. He also noted concerns in professional lines (D&O, A&E) and large account property. Regarding AI, he highlighted the underwriting intake side as an area where technology is dramatically increasing efficiency and enabling better prioritization of business.

Bob Huang asked about specific casualty lines where pricing trends are becoming irrational, potentially leading to exposure cuts, and sought details on low-hanging fruit opportunities for AI implementation in underwriting.

Answer

CEO Rob Berkley identified Auto Liability as a line where the company is shrinking exposure due to unfavorable pricing. He also expressed concerns about professional lines (D&O, A&E) and large account property. For AI, he highlighted 'intake side' technologies in underwriting as current and impactful, enabling increased efficiency and better prioritization of business.

Bob Huang with Morgan Stanley inquired about Progressive's advertising spend strategy, particularly given the deceleration in personal auto policy in-force growth and increased competition. He also sought clarification on the flexibility of ad spending given advance purchases.

Answer

Tricia Griffith, President and CEO of Progressive, explained that ad spending is monitored monthly for efficiency, ensuring cost per sale remains below targeted acquisition costs. She clarified that while some ad buys are made in advance for discounts, a significant majority are auction-based, providing levers to adjust spending based on competition. Growing as fast as possible remains an operating goal.

Bob Huang inquired about Progressive's advertising spend strategy, particularly given increased competition and decelerated personal auto policy-in-force growth, asking if current ad spending levels are sustainable and necessary.

Answer

President and CEO Tricia Griffith explained that advertising spend is monitored monthly for efficiency, ensuring cost per sale is below targeted acquisition costs. While some ad buys are made in advance for discounts, the majority are in the auction market, allowing flexibility to adjust spending based on competition. She reiterated that advertising is a key lever to achieve the company's operating goal of continued growth.

Bob Huang asked about future growth opportunities outside of Kinsale's commercial property division, given a perceived growth deceleration, and which specific areas are most attractive or where the company might pull back.

Answer

Brian Haney, President and COO, indicated widespread opportunities across the book, highlighting newer areas like transportation and agribusiness, as well as continued strong potential in casualty, high-value homeowners, and personal lines. Michael Kehoe, CEO and Chairman, reiterated confidence, noting double-digit growth in all property lines except large commercial property for the quarter.

Bob Huang from Morgan Stanley inquired about future growth opportunities outside of Kinsale's commercial property division, given a slight deceleration in overall growth, and asked which specific areas are most attractive for expansion or where the company might pull back. He also asked about Kinsale's technology strategy, including new innovations, implementation of emerging technologies, and areas where tech provides a competitive advantage.

Answer

Brian Haney, President and COO, highlighted opportunities across the entire book, specifically mentioning transportation, agribusiness, casualty, high-value homeowners, and personal lines. Michael Kehoe, CEO and Chairman, added that all property lines, excluding large commercial property, grew at a double-digit rate. Regarding technology, Mr. Kehoe explained Kinsale's long-standing commitment to tech as a core competency, including building its own enterprise system and undertaking a complete rewrite with 'target state architecture.' He noted the use of new AI tools in IT, underwriting, and claims to drive automation, contributing to Kinsale's significant cost advantage.

Bob Huang asked about the Japan reinsurance opportunities.

Answer

CEO Tony Cheng described it as exciting and early in the cycle, focusing on asset transactions with biometric risk and long-term relationships.