Justin (on behalf of Alex Scott)

Justin (on behalf of Alex Scott) inquired about the 1% impact on retail organic growth and whether recent results indicate a mean reversion to the previously stated low single-digit organic growth for retail in the long term.

Answer

CEO Powell Brown explained the 1% impact was due to a negative adjustment for employee benefits incentive commissions, resulting from overperformance in 2024 and not meeting increased targets in 2025, which will also affect Q4. He reiterated the company's consistent 16-year stance that retail is a low to mid-single-digit organic growth business in a steady economy, acknowledging the current 2.7% organic growth.

Justin asked if recent retail organic growth results indicate a mean reversion towards the company's long-term low single-digit expectation, as the company plans for the upcoming year.

Answer

Powell Brown, President and CEO, reiterated the company's consistent 16-year view that the retail business is a low to mid-single-digit organic growth business in a steady-state economy. He acknowledged the 2.7% organic growth for retail, including headwinds, but did not provide 2026 guidance.