Christian Getzoff

Christian Getzoff with Wells Fargo asked for more details on AXIS Capital's mid- to high single-digit growth guide for insurance, including assumptions on the rate environment and expected growth from new product offerings. He also inquired about the early performance and growth impact of the Rak Re vehicle in the quarter. Getzoff then questioned the elevated paid and incurred trends (low 90s%), seeking insight into future expectations with mix shift and other potential improvement drivers. Finally, he asked if a more normalized hiring pattern should be expected in 2026 compared to 2025, given the upfront investments in new underwriting teams.

Answer

President and CEO Vince Tizzio explained that the insurance business enters 2026 without material reshaping, benefiting from premium adequate new and expanded lines, which contributed about $150 million to Q4 growth. He expressed optimism for sustained growth from these new revenue streams. CFO Pete Vogt noted that Rak Re contributed around $20 million in gross written premiums in Q4, with most written premiums expected in 2026-2028 and earned premiums in 2026-2029. Regarding paid and incurred trends, Vince Tizzio stated that while attentive, the ratio is not alarming, attributing the year-over-year decrease to lower catastrophe losses in Q4 2025 compared to Q4 2024. He highlighted investments in claims, actuarial, and underwriting to manage outcomes. On hiring, Vince Tizzio indicated that AXIS would remain strategic, with scheduled hires for 2026, but would not reveal specific numbers, emphasizing discretion to optimize productivity and alignment with strategy.

Christian Getzoff with Wells Fargo Securities asked for more color on the path to achieving mid-to-high single-digit growth in the insurance segment, including assumptions on the rate environment and growth from new product offerings. He also inquired about the early performance and growth impact of the AXIS Capacity Solutions (ACS) vehicle, the expected trajectory of paid and incurred trends, and whether 2026 would see a more normalized hiring pattern.

Answer

President and CEO Vince Tizzio explained that insurance growth is driven by premium-adequate new and expanded lines, which contributed approximately $150 million in Q4 2025, and that AXIS has a long runway for continued execution. CFO Pete Vogt noted that ACS booked around $20 million in gross written premiums in Q4 2025, with most impact expected in 2026-2029. Vince Tizzio stated that paid and incurred trends are viewed in a broader context, not alarming, and influenced by mix shift and catastrophe losses. He also indicated that AXIS would remain strategic in hiring, with scheduled teams for 2026, but not necessarily a 'normalized' pattern.

Christian Getzoff asked what market conditions, such as a large CAT event or reduced capacity, would be needed to moderate rate decreases in the property market, and how much of the current competition is irrational. He also questioned the evolving competitive dynamics in the personal umbrella market, especially with larger carriers focusing on bundling, and the impact of Florida's surplus lines documentation changes and general tort reform on submission volumes and loss consortiums.

Answer

Jen Klobnak (COO) stated that less capacity, potentially from a large CAT event or a shift in investment opportunities, would benefit the property market, noting that some MGA competition is aggressive due to misaligned interests. For personal umbrella, she acknowledged increased competition but emphasized RLI's strong embedded relationships, product value, and ongoing rate increases. Regarding Florida, Jen Klobnak mentioned RLI has been controlling new business due to past severity, thus not seeing a direct impact from the documentation change. She confirmed that tort reform in Florida and Georgia has been positive, leading to more reasonable claim resolutions and helping fight plaintiff attorneys.

Christian Getzoff asked about the conditions needed for an inflection in property rate decreases, distinguishing between rational and irrational competition. He also inquired about competitive dynamics in personal umbrella, the impact of Florida's diligent search documentation elimination, and the effects of tort reform in Florida and Georgia.

Answer

Jen Klobnak (COO) stated that less capacity, potentially from a large CAT event or a shift in investment opportunities, would help stabilize property rates, noting aggressive MGAs as a competitive factor. For personal umbrella, she highlighted RLI's strong market position, embedded partnerships, and ongoing rate increases. She indicated that RLI's controlled growth in Florida meant the diligent search regulation had minimal impact, and viewed tort reform in Florida and Georgia as positive for more reasonable claim resolutions.

Christian Getzoff inquired about the company's outlook on pricing at the 1/1 renewals, given the hurricane season to date, and whether the ADC and renewal rights sale increased appetite for new business.

Answer

Jim Williamson, President and CEO, anticipated a potential 10% price decrease at 1/1, but still viewed the business as well-priced. He clarified that capital constraints were not a factor in growth decisions, which are driven by market dynamics and alternative capital deployment opportunities.

Christian Getzoff asked if Everest Group's game plan for increasing the international component of its primary insurance book has changed due to the renewal rights and new wholesale/specialty focus, inquiring about organic growth runway and potential M&A. He also asked about pricing at 1/1 renewals and if the ADC/renewal rights sale increases appetite for new business.

Answer

Jim Williamson, President and CEO, clarified that international retail growth will be blunted for strategic reasons, but sees organic growth opportunities in wholesale/specialty with fewer investments. M&A is possible for 'bolting on capabilities.' Regarding 1/1 renewals, Mr. Williamson expects prices to decrease by about 10% but remain well-priced. He stated that capital constraints were never an issue and are not a factor in determining CAT appetite; it's driven by market dynamics and other capital deployment opportunities.