Jamie Inglis

Jamie Inglis followed up on the rising acquisition costs within the expense ratio, asking if it's a retail, wholesale, product line, or geographic phenomenon. He also questioned how RLI maintains its competitive advantage in the increasingly crowded and competitive surety business.

Answer

Craig Kliethermes, President and CEO, and Todd Bryant, Chief Financial Officer, explained that rising acquisition costs are influenced by smaller risks like transactional surety and personal umbrella, which carry slightly higher commission rates. They also reiterated that ongoing investments in technology and people contribute to these costs, with the ultimate goal of generating more profitable premium. Jen Klobnak, Chief Operating Officer, highlighted RLI's competitive advantages in surety: for transactional surety, it's technology and producer servicing; for account-level business, it's experienced, available, and problem-solving underwriters who build strong relationships. Craig Kliethermes emphasized the authenticity and genuineness of RLI's people, fostering deep relationships with producers.

Jamie Inglis from PhiloSmith asked about the drivers behind rising acquisition costs, seeking to understand if it's a retail, wholesale, product line, or geographical phenomenon. He also inquired about RLI's competitive advantage in the surety business, especially given new entrants perceiving it as an 'easy' market.

Answer

Todd Bryant, Chief Financial Officer, attributed rising acquisition costs to pressure from smaller risks like transactional surety and personal umbrella, which have slightly higher commission rates, and to broader investments in technology and people. Jen Klobnak, Chief Operating Officer, highlighted RLI's competitive advantages in surety as technology and producer servicing for transactional surety, and for contract/commercial surety, experienced, dynamic, and highly available problem-solving people focused on service and relationships. Craig Kliethermes, President and CEO, added that RLI's authentic and genuine people build strong relationships, which is a significant differentiator.