Question · Q3 2025
Maya Leibman from KBW sought clarification on the trend of wind rate decreases, noting an 11% decrease in Q3 and recalling a 13% decrease in Q2. She also asked if reinsurance costs for Hawaii hurricane exposure tend to follow Florida wind pricing trajectories, and about the implications for RLI from the turmoil in the wholesale brokerage market, specifically mentioning Howden's expansion.
Answer
Jen Klobnak, Chief Operating Officer, confirmed the 11% wind rate decrease for Q3 and 13% for Q2, explaining that rates depend on specific renewals in a given quarter. Ms. Klobnak and Craig Kliethermes, President and CEO, clarified that Hawaii hurricane is not a major focus for reinsurers and is diversifying from Florida, with RLI's Hawaii wind exposure being small. Ms. Klobnak stated that RLI's model involves partnering with producers and investing in relationships, acknowledging market fluidity driven by Howden, and expressing willingness to work with profitable wholesalers while protecting existing relationships.