Matthew Heimerman

Matthew Heimerman inquired about the initial uptake of private flood products and their ability to offset demand not fulfilled by the Write Your Own program, and how various cross-currents affect the employee benefits business from a subject premium standpoint.

Answer

CEO Powell Brown confirmed the company's historical private flood business and recent acquisition of Poulton, cautioning that private flood isn't a universal solution. CFO Andrew Watts clarified that private flood is written under a separate carrier, not the NFIP-aligned Wright Flood platform. For employee benefits, Powell Brown explained that smaller groups (under 100 lives) are impacted by stagnant headcounts due to per-head compensation, while larger groups focus on containing spend by modifying plans (e.g., GLP-1 limitations) to maintain quality coverage amidst rising costs. Andrew Watts highlighted significant investments in employee benefits capabilities.

Matthew Heimerman asked at what point property growth would necessitate changes to reinsurance structures, requested insights into growth rates by premium cohorts, asked for a split of utility income in investment disclosure, and sought elaboration on 'improved economics'.

Answer

Justin Cohen (CEO) stated property growth is manageable within existing reinsurance contracts due to a limited CAT strategy and geospatial spread. He noted account size bands haven't changed meaningfully, provided utility income as less than $100,000 net in core NII, and clarified 'improved economics' refers to holistic benefits from brokerage scale, impacting commission and expense ratios.

Matthew Heimerman of Citi asked about the threshold for property growth before reinsurance structures would need adjustment, growth rates across premium cohorts, the split of utility investment income, and clarification on 'improved economics'.

Answer

CEO Justin Cohen confirmed property growth is manageable within existing reinsurance contracts due to a limited CAT strategy and geospatial spread. He stated account size bands haven't changed meaningfully and provided the utility investment income as less than $100,000 net in core NII. Cohen clarified 'improved economics' refers to the holistic benefit of scale in brokerage, enhancing the bottom line through commission and expense ratios.