Cameron Bianchi

Cameron Bianchi from Piper Sandler Companies asked for a breakdown of the expected expense ratio improvement for 2026, specifically how much of it is attributable to business scaling versus the impact of technology initiatives.

Answer

Brad Mulcahey, CFO, clarified that the previous guidance of a low 30s expense ratio was primarily due to scale. The new guidance of being below 30% is largely attributed to the impact of technology, which is improving efficiencies across both the digital and craft business models, as well as within the claims team.

Cameron Bianchi asked about the proportion of the projected 2026 expense ratio improvement attributable to business scale versus technology initiatives.

Answer

CFO Brad Mulcahey clarified that the previous guidance of a low 30s expense ratio was primarily due to scale, while the new guidance of being below 30% is largely driven by the impact of technology, including digital platforms and efficiencies in craft business and claims.

Cameron Bianchi asked for clarification on how much of the projected lower expense ratio for 2026 is attributable to business scaling versus changes in product mix.

Answer

Bradley Mulcahy, CFO, clarified that the previous guidance of a 'low 30s' expense ratio was primarily due to scale, while the new guidance of 'below 30%' is largely attributable to the impact of technology initiatives. These initiatives are improving efficiencies across both the craft and digital business segments, including claims, rather than being driven by mix changes.