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President and CEO Joseph Lacher suggested Kemper is already benefiting from a tighter underwriting environment by multiline carriers in California, creating an opportunity for auto specialists. EVP and CFO Bradley Camden reaffirmed the net investment income guidance of a $105 million quarterly run rate on a rolling basis, expecting it to increase later in the year despite recent lower returns from alternatives.

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CEO Joseph Lacher explained the minimal wildfire impact was due to three factors: Kemper has no significant homeowners exposure, its customers generally do not reside in the affluent areas affected, and people tend to drive their cars away from fires. He also stated they are seeing no distribution disruption, as the agents serving their specialty auto customers are distinct from those handling high-net-worth property claims in fire zones, creating no significant business overlap or distraction.

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EVP & CFO Bradley Camden projected quarterly net investment income to run around $105-$107 million and confirmed no significant change in commercial auto severity trends. President of Kemper Auto Matthew Hunton stated that residual markets have not become a significant competitor, though they are monitoring uninsured driver rates.

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Executive Joseph Lacher estimated the company is about three-quarters of the way through removing non-rate actions. Executive Bradley Camden stated that consolidated net investment income should return to its prior run-rate of around $105 million quarterly, as the real estate adjustment was a non-run-rate item. Camden also clarified that the Life segment's annual run-rate earnings are expected to be $15 million to $20 million lower due to capital being moved to the parent company.

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CEO Ernesto Garateix described Florida as having many new entrants, while other states are more stable. He highlighted California as an opportunity for Heritage's E&S business due to admitted carriers leaving the state. Garateix noted that E&S carriers are gaining traction in dislocated markets because of their rate flexibility, leading to a shift of traditional homeowners' policies to the E&S market.

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Executive Kirk Lusk clarified that nearly all of the unfavorable reserve development was driven by lingering claims from Hurricane Irma due to the associated legal environment. He also confirmed that potential reinstatement premiums were already factored into the company's latest loss estimates for Hurricane Milton. Regarding claim management fees, Kirk Lusk noted that while some could occur in the fourth quarter, they would not be material.

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CEO Stephen Sills clarified that competition varies by division, with more pressure in Professional Liability and continued opportunities in excess casualty, noting Bowhead doesn't compete in the large company/Fortune 100 market. CFO Brad Mulcahey explained the reserve development is a conservative accounting practice for audit premiums related to prior accident years, ensuring reserves are matched to the correct accident year even if the premium is booked in the current period.

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CEO Steve Spray described the commercial market as 'rational and orderly' but acknowledged more competition for larger accounts, which has impacted their Lloyd's syndicate premiums. CFO Mike Sewell reported a minor $7 million reserve strengthening in commercial auto, primarily from older accident years. Spray noted the E&S market trends similarly to commercial lines, with strong new business flow and consistent profitability despite competitive pressures on larger accounts.

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CEO Gregory Case confirmed that NFP contributed to the 5% organic growth but stated Aon will not break out its performance separately, as the focus is on the integrated firm's success and the connectivity between the businesses. On pricing, Mr. Case noted that while similar softening trends exist in the mid-market, they are slightly more muted than in the large account space. He emphasized that macro risks affect all clients and Aon's ability to deliver tailored solutions is key.

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CEO John J. Marchioni acknowledged that Selective's GL pricing targets are likely above the market, a deliberate strategy to stay ahead of severity trends which has impacted new business. He noted that policy retention has remained strong and stable at 85%, and while they are willing to accept a slight impact for achieving necessary pricing, their granular approach helps mitigate this risk.

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CEO John J. Marchioni acknowledged that Selective's pricing targets, especially in General Liability, are likely above the broader market, which has impacted new business conversion rates. He stated the company has conviction in its pricing to stay ahead of severity trends. Marchioni noted that policy retention has held up well so far, as the overall rate change is applied granularly across the entire policy package, and the company is willing to accept a slight retention impact to achieve necessary pricing.

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John J. Marchioni, Chairman, President & CEO, stated that the 2025 guidance prudently assumes elevated casualty severity trends will continue, which is factored into the expected loss ratios. He affirmed that Selective conducts a full reserve review each quarter, allowing it to react quickly to emerging data and project ultimate losses, a process he contrasted with the industry's slower recognition of past social inflation trends.

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John J. Marchioni, Chairman, President & CEO, stated that Hurricane Helene added 7.6 points to the combined ratio, and without it, the quarter's cat load would have been relatively in-line. He noted Helene's impact was widespread and extended far inland. Regarding business mix, he anticipates a slight shift toward homeowners within Personal Lines, driven by higher values and a less crowded competitive landscape in the mass affluent segment.

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CEO John J. Marchioni confirmed that excluding Hurricane Helene, the quarter's catastrophe load was only slightly above average. He noted Helene's impact was broader than just the coast, with significant wind-driven losses far inland. Regarding business mix, Marchioni anticipates a slight shift towards home within Personal Lines due to higher premiums and a less competitive mass affluent market, but not a significant overall change for the company.

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John J. Marchioni, Chairman, President & CEO, explained that workers' comp is now a smaller part of their reserves and that previously favorable frequency trends have leveled off. He also noted that medical inflation is now slightly outpacing wage inflation, leading to a more conservative outlook. Regarding capital, Marchioni stated that while operating leverage may run outside targets temporarily, the company's overall capital position is strong, with a low debt-to-capital ratio providing flexibility, and there are no current constraints on growth.

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CEO Mark Miller stated that the geographic expansion strategy remains focused on diversification across the U.S. to ensure long-term stability. On retention, both Mr. Miller and CFO Mark Jones Jr. confirmed a strong correlation with pricing stability, noting that clients are far less likely to shop when faced with smaller premium increases, which is a trend they are beginning to see.

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CFO Mark Jones Jr. clarified that Goosehead expects core revenue growth to accelerate in 2025 over 2024. He explained that the total revenue guidance is moderated by lower forecasts for contingent commissions and cost recovery revenue. He affirmed the company is still actively working towards 30%+ growth through strategic initiatives like middle-market franchises and technology-driven productivity enhancements.

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President and CEO John Doyle stated that uncertainty does not change their long-term M&A strategy, as they remain an active consolidator focused on cultural fit and value creation. On Florida, Doyle confirmed that while it is still early, the initial signs from the reforms have been positive. He used the opportunity to emphasize the broader need for sensible legal reforms to combat social inflation, which he termed 'legal system abuse.'

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Edward Rand, President and CEO, explained that pushing for rate in workers' compensation is challenging because rating bureaus continue to issue declining loss cost indications based on backward-looking frequency data. He stated that ProAssurance believes this data is stale and doesn't adequately factor in rising severity. Rand confirmed that the company's differentiated view is more focused on severity trends than frequency, and they will continue to underwrite on an individual account basis to achieve adequate rates, even if it means being an outlier in the market.

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President and CEO Edward Rand explained that while the physician business performs well, some states and the Specialty Health Care book still require more rate. He characterized the Workers' Comp challenges as broad-based across the market. Regarding the expense ratio, Rand attributed the year-over-year increase to higher incentive compensation and the absence of prior-year employee credits, noting the company is focused on managing expenses amid a shrinking top line but did not provide a specific future target.

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Dana Shannon Hendricks, Chief Financial Officer, indicated she would follow up on the specific tax rate but noted the credits' impact has been diminishing. She confirmed the current expense ratio is a reasonable run rate, explaining that higher compensation-related costs are the main driver. Edward Rand, President and CEO, added that the 10-Q provides a tax rate reconciliation.

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CEO Mac Armstrong clarified that the guidance conservatively assumes a reinsurance renewal rate ranging from flat to down 5%, despite seeing more favorable pricing at January 1. Regarding California, he identified opportunities in Residential Earthquake and builder's risk due to market dislocation and heightened awareness, but affirmed Palomar would not deviate into new lines like homeowners insurance.

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Mac Armstrong, Chairman and CEO, clarified that the property book has generally been profitable, with standout performers like Builder's Risk and Excess National Property. He noted that the company actively manages underperforming and more volatile lines, such as the All Risk book, by reducing limits. Jon Christianson, President, explained that the Crop business is an excellent diversifier, as its primary risk (drought) is uncorrelated with the company's other property perils like hurricane and earthquake. Mac Armstrong added that Crop is also uncorrelated with P&C market cycles and that Palomar intends to increase its risk participation in the line starting in 2025.

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EVP and CFO Eric Martin confirmed a one-time $3.2 million pretax benefit in Q4 but otherwise viewed the quarter as a solid run rate, despite an elevated expense ratio. EVP and COO Julie Stephenson explained that due to social inflation, the company is shifting its appetite toward less public-exposed casualty risks and actively growing its property portfolio. She also affirmed a strong appetite for their alternative distribution business, particularly in the standard treaty channel, while pulling back from retrocession.

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EVP and COO Julie Stephenson addressed the questions, stating that the underlying loss ratio improvement is sustainable, driven by strong earned rates exceeding loss trends, declining frequency, and stabilizing severity. Regarding top-line growth, Stephenson highlighted broad-based growth across all business units, fueled by rate acceleration in key lines like auto and a strategic focus on larger, more sophisticated accounts through enhanced distribution partner relationships.

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Chairman and CEO Peter Zaffino stated that AIG is "largely done" with divesting noncore businesses. On M&A, he emphasized a disciplined approach, considering only "compelling" opportunities that add value, but stressed that the company does not need to acquire anything to achieve its growth targets. Regarding regulation, Zaffino acknowledged the complexity of the state-by-state system and noted that current catastrophe models can be flawed, expressing hope that collaboration between insurers and regulators will lead to a "reset" and more flexibility.

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Co-CEO Carl Lindner clarified that the adverse development was predominantly from an excess liability unit focused on Fortune 500/1000 clients. CFO Brian Hertzman added that AFG's reserving approach is to react holistically each quarter to new data, adjusting loss picks for recent accident years based on observed severity trends in older years to maintain the most accurate reserve position.

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