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    Charles Lederer • BMO Capital Markets

    Charles Lederer's questions to AXIS Capital Holdings Ltd (AXS) leadership

    Charles Lederer's questions to AXIS Capital Holdings Ltd (AXS) leadership • Q1 2025

    Question

    Charles Lederer asked about the future trajectory of the insurance segment's loss ratios given mix shifts, the potential impact of tariffs on specific lines, and the duration of the pet insurance quota share's impact on net premiums.

    Answer

    CFO Pete Vogt projected the insurance ex-cat loss ratio would remain stable in the 52-53% range for the year. CEO Vince Tizzio identified property and cargo as lines most exposed to tariffs but noted AXIS is positioned to meet emerging needs. Vogt clarified the pet insurance dynamic would have a more pronounced impact in the first half of 2025 before lapping.

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    Charles Lederer's questions to AXIS Capital Holdings Ltd (AXS) leadership • Q4 2024

    Question

    Charles Lederer sought to confirm that the investment income impact from the LPT would only begin after the transaction closes. He also asked about the sustainability of fee income growth and its expected impact on the 2025 expense ratio, and whether variable compensation should be modeled quarterly or as a year-end true-up.

    Answer

    CFO Pete Vogt confirmed that the LPT's investment income impact will begin post-close. He stated that the fee income from ILS partners seen in 2024 should be consistent in 2025. Vogt also clarified that variable compensation is best viewed as a Q4 true-up item, given the potential for volatility during the year. President and CEO Vincent Tizzio added that the strong fee income is a testament to market confidence in AXIS's underwriting.

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    Charles Lederer's questions to Brown & Brown Inc (BRO) leadership

    Charles Lederer's questions to Brown & Brown Inc (BRO) leadership • Q4 2024

    Question

    In a follow-up, Charles Lederer of BMO Capital Markets asked for an update on where contingent commissions landed for Hurricanes Helene and Milton and if any future adjustments are expected.

    Answer

    R. Watts, an executive, reported that adjustments for the hurricanes were made in Q3 and Q4 but were not significant enough to be called out. He noted that the ultimate impact on 2025 contingents remains uncertain pending further loss development, which contributes to the company's cautious outlook.

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